Lobito Corridor could double cargo to 800,000 tons after $300 million boost as US pushes for Africa’s critical minerals

The railway operator received about $300 million in June and is using the funds to expand capacity, buy new wagons and containers, repair sections of the railway and improve coordination between Angola and the Democratic Republic of Congo, CEO Nicolas Fournier said.

LAR expects to transport about 400,000 tons of international cargo this year. About half of that is expected to be copper and cobalt moving from Congo to Angola’s Atlantic coast, with a similar volume of freight travelling in the opposite direction. 

The company is targeting roughly 800,000 tons in 2027 as demand for the corridor grows.

A key route for critical minerals

The Lobito Corridor links the Atlantic port of Lobito in Angola with mineral-rich areas of the DRC and Zambia. It has become an important route for moving copper and cobalt to global markets, particularly as the US seeks to secure supplies of critical minerals and reduce dependence on China.

The Angolan section has received financial backing from the US International Development Finance Corp., while LAR is preparing for a second drawdown from the financing package to fund additional investment.

The push comes after LAR recorded its “best month in its history” in July, transporting 27,000 tons of international cargo.

The company had earlier been hit by floods that damaged a 1.5-kilometer section of track, forcing it to use trucks to bypass the affected area for two months.

The Lobito Corridor is also attracting wider investment. Last year, Business Insider Africa reported the launch of the $1 billion Lobito Corridor Impact Development Platform, backed by a $100 million joint commitment from businessman Haim Taib and Angola’s Sovereign Wealth Fund.

Source: Africabusinessinsider