Joint venture (JV) company Lobito Atlantic Railway (LAR), which is the concession holder for the operation, management and maintenance of the Lobito Corridor spanning Zambia, Angola and the Democratic Republic of Congo (DRC), has placed an order for 275 new container wagons from South African company Galison Manufacturing for an undisclosed sum.

The container wagons will be delivered in three tranches, with the first wagons due to arrive in Lobito from the fourth quarter. They will be able to carry 10 ft, 20 ft and 40 ft long containers, providing flexibility in terms of the kinds of loads to be transported.

The order is a key milestone in the refurbishment of the railway and its operational capacity to transport cobalt and copper from the DRC and Zambia and goods from Lobito to the DRC. The order for new wagons is part of the investment announced when the 30-year concession was signed in November 2022.

The wagons are being made from high-strength steel to increase their durability and reduce the weight of each wagon, which in turn will allow for heavier loads to be carried. The manufacturing process involves extensive use of modern fabrication methods, including computerised beam saws and robotic welding cells.

“The new wagons are compatible with the existing rolling stock in the Southern African Development Community region. They were designed considering local conditions on the railway to ensure the smooth transport of critical minerals and other materials for both domestic and international traffic. A team from LAR recently visited Galison Manufacturing’s facilities to monitor the start of production of the wagon prototypes that will start to be delivered later this year,” LAR CEO Francisco Franca said on June 19.

Since January, the LAR JV, comprised of commodities trader Trafigura, construction and infrastructure management company Mota-Engil and independent rail operator Vecturis, has been operating, managing and maintaining the railway line that 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 DRC to Kolwezi in the heart of the Copperbelt.

The LAR also operates the mineral terminal at the Port of Lobito that connects to the railway line. The port facilitates a faster and efficient service in a decongested port on the Atlantic coast.

The project to refurbish the railway line represents an investment of more than $500- million over the lifetime of the concession. The investment will enable the renovation of sections of the railway line and associated infrastructure, in addition to investment for wagons and locomotives.

A financing package, which includes a potential investment by the US International Development Finance Corporation, is currently under discussion.

After investment, the railway will provide a quicker western route to market for minerals and metals produced on the Congolese Copperbelt.