Name of the Project
Lobito Atlantic Railway project.

Location
The railway line extends across Angola for almost 1 300 km between the Port of Lobito to Luau, in eastern Angola, and connects with the rail network run by the National Railway Society of the Congo, in the Democratic Republic of Congo (DRC) to Kolwezi in the heart of the Copperbelt.

Project Owner/s
A 30-year concession has been awarded to Lobito Atlantic Railway (LAR) consortium comprising Trafigura, Mota-Engil and Vecturis SA.

Project Description
This project is expected to provide a critical link for the transport of copper, cobalt and other essential goods from the mineral-rich areas of the DRC to international markets through the Lobito port.

The Lobito rail corridor has great potential to boost the development of sectors along the line, including heavy industry, agriculture and mining, creating new jobs and new opportunities. The project is expected to increase transportation capacity ten-fold, to about 4.6-million tonnes a year, and to reduce the cost of transporting critical minerals by an estimated 30%.

The project entails the finance, build, operate and transfer of a 1 289 km brownfield railway main line from Lobito to Negrao and the Luau border, as well as a 28 km railway branch line from Negrao to Bimbas.

The investment will include 1 555 wagons and 35 locomotives for the Angolan side of the corridor and the investment in training and skills, with dedicated training centres already in place at Huambo and Lobito.

There is the potential to extend the line into Zambia, extending its benefits across the region.

Potential Job Creation
In addition to trade and logistics benefits, the project is expected to deliver substantial development impact, including job creation during construction and operation, skills development, improved safety standards and long-term economic opportunities for communities along the corridor.

Capital Expenditure
The project is valued at about $786.4-million.

Planned Start/End Date
Not stated.

Latest Developments
The project has secured a $753-million financing package.

The package consists of $553-million from development finance institution the US International Development Finance Corporation (DFC) and $200-million from development finance institution the Development Bank of Southern Africa (DBSA).

Multilateral financial institution Africa Finance Corporation (AFC) served as the co-financial adviser for the transaction.

This transformational transport infrastructure initiative is supported by multinational engineering and construction company Mota-Engil, commodities trading and logistics company Trafigura, and multinational rail operator Vecturis. which mobilise world-class technical, operational and commercial expertise to ensure the long-term success of the corridor, the AFC has said.

“The signing of the financing agreements for the Lobito Atlantic Railway demonstrates the strength of AFC’s financial advisory expertise in structuring and advancing complex, cross-border infrastructure transactions of strategic significance,” AFC president and CEO Samaila Zubairu has indicated.

Further, the initiative aligns with the AFC’s broader development efforts to deliver a transformational transport corridor linking Angola, the DRC and the wider Southern Africa region, reinforcing the critical role of integrated rail and port infrastructure in unlocking regional trade, industrial growth and supply-chain resilience.

The Lobito corridor is also of particular importance for Angola to support its infrastructure development and economic priorities.

Key Contracts, Suppliers and Consultants
Galison Manufacturing (container wagons).

Contact Details for Project Information
Mota-Engil Press Office, Pedro Arrais, tel +351 214 158 576 or email pedro.arrais@mota-engil.pt.
Trafigura Press Office, tel +41 22 592 4528 or email media@trafigura.com.
Vecturis Press Office, Eric Pfeiffer, tel +32 2 626 26 87 or email epe@vecturis.com.