Luanda – The consortium Trafigura Group Pte Ltd, Vecturis, SA and Mota-Engil, Engenharia e Construção África, SA will manage the Lobito Corridor for a period of 30 years.
The consortium will take on the operation, running and maintenance of rail transport of goods between Lobito and Luau, as well as maintenance of the entire existing infrastructure along the Corridor.
With a concession signature prize of USD 100 million, the Ministry of Transports, in a press release to which ANGOP had access, said that it will allow differentiating the competitors based on their financial capacity in relation to the size of the assets in question.
With the rents negotiated, the Angolan state expects to receive, over each 10-year period, revenues of US$319.4 million in the first 10 years, USD 787.4 million between the 11th and 20th years, and US 919.05 million in the last 10 years.
In terms of cargo to be transported, the forecasts are for 1,677.70 tonnes in the 5th year of the concession, 2,982.31 tonnes in the 10th year, 4,979.23 tonnes in the 20th year, and 4,979.23 tonnes in the 30th and final year.
Under the terms of the concession now awarded, the concession holder will invest USD 256.03 million in infrastructure, USD 73.3million in equipment and rolling stock, and an additional USD 4.3million in miscellaneous activities.
This concession is for 30 years, and can be extended to 50 years if the concession holder opts to build the Luacano (Moxico) – Jimbe (Zambia) railroad branch.
Through the connection to Zambia, it is possible to reach the city of Beira, in Mozambique, and Dar es Salaam, in Tanzania, by the Indian Ocean, facilitating trade.
It is also indirectly linked to South Africa’s railway system, forming part of a transcontinental railway network.
Specifically, it is equipped with modern infrastructure, with 67 stations.
The railway line started being built in 1903 and was completed in 1929, with a 99-year concession agreement. The 99-year operation concession contract, awarded to Companhia do CFB SARL, ended on 28 November 2001, with all the company’s fixed and circulating assets reverting to the Angolan State.
Source: Angola Press News Agency