now loading...
Wealth Asia Connect Treasury & Capital Markets Europe ESG Forum TechTalk
Asia Connect
Mota-Engil consortium set to operate Angola freight rail line
Lobito Corridor to help transport energy transition minerals from DRC mines
Michael Marray 30 Nov 2022

A consortium comprising Mota-Engil, Trafigura and Vecturis is set to begin operating the Lobito Corridor railway in Angola under a 30-year concession announced earlier this year.

The contract with the Angolan Ministry of Transport was formally signed in the capital city of Luanda in early November.

The Lobito Corridor will help efficiently transport energy transition minerals such as copper and cobalt, from the neighbouring Democratic Republic of the Congo (DRC). The 1,290-kilometre railway runs from the port of Lobito to Luau in eastern Angola, close to the DRC border.

The concession contract can be extended for up to 50 years, if the consortium chooses to build a planned 259km branch extension connecting into Zambia.

Commodities trading firm Trafigura and Mota-Engil Engenharia e Construcao Africa hold a 49.5% stake each, while independent Belgian rail operator Vecturis owns 1%.

Mota-Engil is listed on Euronext Lisbon. Last year China Communications Construction Company acquired a 32.41% stake in the company.

Under the 30-year concession for rail services and logistical support, the consortium will invest significant capital in upgrading the rail infrastructure and adding new freight trains. Initial investment will be around US$450 million, including US$170 million for the rolling stock.

Conversation
Anand Rengarajan
Anand Rengarajan
global head of sales and head of Asia Pacific, securities services
Deutsche Bank
- JOINED THE EVENT -
In-person roundtable
Securing the future
View Highlights
Conversation
Edmund Leong
Edmund Leong
managing director and head of group investment banking
UOB
- JOINED THE EVENT -
18th Asia Bond Markets Summit Asean Edition
Investing in the new normal
View Highlights