Angolan Ministry of Transport and the consortium Trafigura, Vecturis and Mota-Engil sign a concession contract for the management of the Lobito Corridor
A consortium comprising Trafigura Pte Ltd (“Trafigura”), a global commodity market leader, Mota-Engil Engenharia e Construcao Africa SA (“Mota-Engil Africa”), an international construction and infrastructure management company and Vecturis SA, an independent rail operator, have signed a 30-year agreement for the concession of rail services and logistical support for the Lobito Corridor, a key axis connecting rail access from the Democratic Republic of Congo (DRC) to Lobito port in Angola and international markets. The consortium is 49.5% each owned by Trafigura and Mota-Engil, with the remaining 1% held by Vecturis.
The Consortium will be responsible for the operation, management, and maintenance of the railway infrastructure for the transport of goods, minerals, liquids and gases for the corridor which extends over approximately 1,290 km, connecting the port of Lobito in Luau, in eastern Angola, near the DRC border. As part of the concession agreement, the consortium has committed to invest significant capital in rail infrastructure improvements to improve the capacity and safety of the Lobito Corridor, as well as to invest in important rolling stock for freight operations. With an initial term of 30 years, the agreement provides for a total investment of $450 million, plus operating, and additional investment. The overall figure includes $100 million for the initial concession bonus; $170 million for infrastructure.
The consortium will take responsibility for the concession when the conditions precedent of the agreement are met in the coming months. The concession is expected to create approximately 1,600 jobs while providing fundamental infrastructure for the future of Angola and for the future development of international trade in Africa.
