The CEO of Lobito Atlantic Railway (LAR) disclosed to Reuters that the company plans to finalize a $533 million loan agreement with the US International Development Finance Corporation (DFC) by the end of this year, funding that is crucial for upgrading its Angola concession area.
The US development lending institution committed to providing this loan in 2024 to support the renovation of the 1,300-kilometer (800-mile) railway and create a rapid transit corridor for transporting mineral resources essential to the global transition to clean energy.
In 2022, Angola granted the 30-year concession for the Lobito Atlantic Railway to a consortium comprising Trafigura Group, Mota-Engil Group, and Vecturis. The railway will provide a fast corridor for copper and cobalt exports from the Democratic Republic of Congo, enabling exports through the Atlantic coastal port of Lobito.
The company's new CEO Nicolas Fournier stated that despite concerns raised by President Donald Trump's reversal of Biden-era climate and energy policies, the US funding is moving forward.
"There will be no changes. I know many people try to portray this as a geopolitical issue, but this is actually just a business transaction we are conducting," Fournier said in an interview with Reuters.
He added: "Both sides have a large team of lawyers discussing the last comma and all the details, so things are moving in a smooth direction. We hope to complete this deal by the end of the year."
Fournier indicated that with the $555 million investment commitment from consortium partners, freight volume on the Lobito Railway is expected to double as ongoing upgrade projects advance.
"We hope to double freight volume in 2026, reaching 40,000 tons monthly in one direction and 80,000 tons bi-directionally. And maintain 1.5 million tons of transport volume annually throughout this decade," he said.
The Lobito Atlantic Railway's freight trains primarily transport copper and cobalt to Lobito Port for export to international markets. Meanwhile, they also carry large quantities of sulfur to mines in the Democratic Republic of Congo and transport agricultural and industrial products from the port.
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