A renewed railway could revolutionize mineral transport in Africa
A renewed railway could revolutionize mineral transport in Africa
At the end of August, a container ship left the port of Lobito in Angola with the first delivery of copper from the rail operator Lobito Atlantic Railway from the Democratic Republic of Congo (DRC) to the USA. This event marks a milestone for the Lobito corridor, a project supported by the United States and Europe that aims to create an efficient transport connection between the mineral-rich regions of Africa and the West African port for export. Old railway lines are modernized and expanded.efficient transport routes for raw materials
The copper needed six days to get from the city of Kolwezi in the DRC- one of the largest copper and cobal resources in the world- over more than 1,300 kilometers from Lobito. According to Francisco Franca, the CEO of Lobito Atlantic Railway (LAR), this is around 30 days faster than a trip on the street. LAR invests $ 250 million to improve the rails and the telecommunications infrastructure in Angola and expand the fleet by 1,500 cars.
geopolitical implications and US financing
The dynamics behind the corridor, which connects the so -called copper belt of Africa with the Atlantic, is created in a geopolitical environment in which Beijing and Washington compete for dominance in green technology. This competition boosts the demand for vital minerals such as copper, lithium and cobalt.
In the past decades, Chinas Belt and Road Initiative (bri) Infrastructures such as railways, streets and ports provided in development aid. This also includes the financing of the 100-year-old Benguela train in Angola, which was badly damaged during a 27-year civil war.
US investments to strengthen the Lobito corridor
The United States provides hundreds of million dollars for the Lobito corridor, which is considered the flagship of the partnership for global infrastructure and investments (PGI). This was described by President Joe Biden as the largest US railway project in Africa. "A partnership between Angola and America is more important and effective than ever," said Biden during a visit by the Angolan President in Washington.
Currently most minerals that leave the port of Lobito go to Asia, according to David Reekmans, the managing director of AGL Lobito Terminal. AGL is investing more than $ 100 million in the port to expand its capacities and hopes for an increase in the commercial volumes, possibly as a new trade route for the USA and Europe.
economic development along the corridor
About 30 % of the 37 million people in Angola live below the poverty line, and youth unemployment is widespread. Critics fear that the focus on extracting and exporting raw materials will bring little financial advantages for the affected regions. Instead, more should be invested in local value creation processes.
project supporters, on the other hand, are convinced that the corridor will create thousands of jobs and boost the growth of numerous sectors. "The Lobito corridor is not only a railway line, but also an engine for the economic development along the route," says Lar-CEO Franca.
future prospects and expansion of the project
In the future, an expansion of the railway is plans to expand by 800 kilometers to Zambia. In addition, the United States would hope to extend the line one day to the Indian Ocean through Tanzania in order to combine East and West Africa, although these plans could be subjected to a re-evaluation under a possible Trump government.
The economic effects can be felt on different levels. "If we do not have this logistical infrastructure, it is impossible to grow in the future," sums up the managing director of Carrinho Industry, Décio Catarro. The advantages of the Lobito corridor are obvious for companies such as his: lower costs and higher efficiency in the transport routes.
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