Advancing Africa’s Lobito Corridor

By Liesl Venter

With its deep-sea port and strategic positioning, the 1,700-km Lobito Corridor linking Angola, the DRC and Zambia is being touted as a new route for efficiently moving project cargo across Africa and a vital alternative to existing trade networks.

From Issue 5, 2024 of Breakbulk Magazine

(6-minute read)


Development corridors are a hot topic in Africa at the moment, as several countries seek to extend and diversify trade routes. Few, however, are garnering as much attention as the Lobito Corridor, which links Angola’s deep-sea port of Lobito in the west with the Democratic Republic of the Congo (DRC) in central Africa and Zambia in the east.

Spanning some 1,300km from Angola to Zambia, and another 400km to Kolwezi in the DRC, the continent-straddling project is ambitious and complex.

Such projects in Africa don’t come easy. More often than not, they experience slow take-offs due to a combination of infrastructure deficits, regulatory and bureaucratic hurdles and funding challenges. Political instability, along with capacity and skills gaps, often exacerbate the situation.

The Lobito Corridor faces all these challenges and more. Involving a diverse range of parties — including three African governments, the United States, the European Union, a consortium of private sector players, investment institutions and banks – it will require considerable time to get right.

But for Africa experts Fracht, Lobito has the potential to become “the fastest, most reliable and efficient” of a number of trade corridors in the region. Amaury Luyckx, managing director of Fracht Belgium, told Breakbulk: “We have been active on the Lobito Corridor since the very beginning – and we are still the pioneers.

“Although there is still a lot of work to be done before we get there – I estimate a minimum of one year before we really see some larger volumes moving – we cannot underestimate the importance of this new solution. A consortium of two major companies, Trafigura and Mota-Engil, together with technical advisor Vecturis SA, has been awarded the mandate to operate the railway, independently from politics.

“Moreover, Lobito has the great advantage to be a rail corridor, which is interesting for larger volumes, and also a greener corridor – which is more and more a requisite of our clients that are focusing on the sustainability of their business.”

The major issue, Luyckx said, is that shipping lines do not regularly call on the Lobito port due to a lack of demand at present, especially on the import side. “That being said, with the freight rates going down currently, shipping is back to being a volume game and Lobito can offer that opportunity for extra volumes,” he added.


Challenging China’s Dominance

According to Cobus van Staden, co-founder and managing editor of the China Global South Project, an independent startup tracking China’s influence across the Global South, Lobito Corridor is an attempt to “deliver a creative solution to China’s belt and road initiative.”

Fresh from a trip to Washington, Van Staden notes that the project is the topic of much discussion, especially given that the targeted materials are predominantly already secured by China. “The U.S. and parts of Europe are intent on accessing critical minerals without Chinese involvement, as China currently controls the flow of most of these through the eastern side of Africa,” he said.

Notably, copper is driving the interest for Lobito, considering lithium, graphite, and cobalt demand is cyclical and may only partially justify the billions required to make this a functioning corridor.

“China has a stronghold on the critical mineral supply chain, having invested extensively in the entire mining value chain across Africa for years. Lobito will go a long way in challenging this dominance,” said Methembeni Moyo, head of the Africa Practice at NSDV, a law firm specializing in African mining, construction, energy and environmental law.

Like Van Staden, she warns that while the U.S. and EU now have direct access to much-needed critical minerals, it is unlikely that the Lobito Corridor alone will significantly loosen China’s grip. The impact may be limited without direct investment in exploration, mining and processing.

According to Van Staden, there is no denying that if the best version of the Lobito Corridor is realized, it will significantly advance the continent. Therein, however, lies the problem. “As with all these global gateway projects in Africa, they are cultivated and involve numerous initiatives and diverse stakeholders, which makes the process complicated. And complications in Africa often mean a long timeline, which is one thing this project cannot afford.

“For the Lobito Corridor to be successful and fully realize its potential, it must move quickly. China has already taken note of the U.S.’s intent and has responded with upgrades and refurbishments to the Corridor from the Copperbelt to the port of Dar es Salaam,” he said.


Growing Optimism

Zambian Minister of Infrastructure Charles Lubasi Milupi is optimistic. “When we came into office three years ago, opening Zambia up towards the West was a priority and we are moving very quickly,” he told Breakbulk. “The funding for Lobito is secured and the MoUs have been signed. It is not a question of if it will happen, but when.”

Milupi said Zambia had long depended on exporting and importing through South Africa and Tanzania only. “If we want to export to the Americas and Western Europe, we utilize ports on the eastern part of the continent to reach the West. That does not make sense. How do we grow these markets if we don’t have a direct route? Zambia and the DRC can and will benefit from this development. We expect to see many projects emerging from the corridor’s development.”

He noted that Zambia is steadily increasing its mineral production. “We want to see our copper production rise from 800,000 tons annually to at least three million tons. This will require a significant investment in capital equipment. There is no better way to transport this to the Copperbelt than via rail. Project cargo will increasingly be transported via the Lobito Corridor because it makes more sense from a transit time and a cost perspective.”

While U.S.-China politics continue to influence the development of this corridor, the African countries involved are not entangling themselves in these dynamics. They have no intention of severing their strong ties with China.

“Lobito is not the game-changer for the DRC but rather one of several strategies we have to enhance our country’s trade,” said Ila Ngongo, chief of staff at the DRC Ministry of Infrastructure. “Production in Kolwezi is set to increase fourfold over the next decade or two.

“We cannot rely on just one or two options for moving project cargo. That’s why the Lobito project cannot be limited to merely upgrading and extending the railway line. It must also include road developments and other initiatives to streamline the efficient cargo movement.”


Tackling the Hurdles

Kris Van Heerden, general manager at DSV in South Africa, notes that the Lobito Corridor is still in its early days. “Today, the cost per unit using this corridor remains too high compared to other solutions for project cargo and breakbulk in the region, and that is including using rail as a transport mode.

“The lead time from Lobito to Zambia is promising at eight or nine days, but the corridor must be competitive. Currently, there are not enough return loads.”

He also points out that Angola’s Port of Lobito still relies heavily on charters. “More shipping lines need to call at Lobito for it to work effectively in the long run. While the developments around Lobito are exciting and logistics operators are closely monitoring the situation, project cargo will continue to use preferred routes into the DRC until all the pieces are in place.”

Van Heerden anticipates that, for the foreseeable future, heavy loads will continue to be transported to the DRC and Zambia via Namibia’s Walvis Bay, South Africa’s Durban and Richards Bay ports, and Tanzania’s Port of Dar es Salaam. “Lobito is an exciting development, but it will not materialize overnight. The two critical logistics questions will always be how quickly it can be delivered and at what cost.

“Although the lead times from Lobito look good on paper, the lack of schedule reliability and insufficient return loads make rates too high compared to the other three ports with their well-established vessel movements.”


Progress Underway

Milupi admits much still needs to be done. “While part of the railway is already operating, there are a lot of refurbishment and upgrades that have to take place. We have to extend the railway line in places and we need roads and other infrastructure as well. We have signed two MOUs linking Zambia to Angola via road: one along the Lobito Corridor and the other in the western part of the country. We are moving forward - slowly, but surely.”

The DRC has also signed MOUs and contracts to initiate their part of the project. In Angola, a 30-year concession has been awarded to the aforementioned consortium comprising Trafigura, Mota-Engil, and Vecturis for rail services and logistics support for the corridor.

The consortium, in turn, has committed to a six-year agreement to transport minerals via the existing Lobito Atlantic Railway on behalf of Kamoa-Kakula, a joint venture between Ivanhoe Mines and Zijin Mining. Export capacity along the corridor’s railway line is expected to reach around one million tons by the end of the decade, and Trafigura estimates this will increase to 450,000 tonnes per annum by 2025.

Rehabilitation work at the port and along the railway has started. An order for 275 new wagons to operate on the railway line has been placed, with the first consignment expected before year-end. In July, the first vessel docked at the Port of Lobito’s mineral terminal for the first delivery via train to the Copperbelt. Currently the freight train runs twice a week. The goal is to see it operational six times a day.

To achieve its goals, the Lobito Corridor will need to navigate several tough challenges - perhaps the most significant being proving its commercial viability. The corridor’s complexity is heightened by its span across multiple jurisdictions, requiring government regulators to align policies to ensure efficient development across countries.

Experts agree that the economics will be challenging. “Moving enough cargo to justify the considerable construction, operation and maintenance costs while competing with regional alternatives will not be easy,” said Van Heerden. “The Lobito Corridor, however, does make sense. Now, it’s about making it happen.”


Breakbulk Middle East 2025 is taking place on 10-11 Feb. at the Dubai World Trade Center.

TOP PHOTO: A vessel arrives at Angola’s Port of Lobito carrying cargo destined for the DRC. CREDIT: Trafigura