Port of Lobito Handles First Congolese Copper Shipment to the U.S.

The Port of Lobito mineral terminal's first vessel call, a bulk sulfur delivery, July 2024 (Trafigura)

Published Aug 25, 2024 10:42 PM by Brian Gicheru Kinyua

 

Southern Africa’s Lobito Atlantic Railway (LAR) has hit a milestone after the first shipment of copper destined for the United States left the Port of Lobito this week. The cargo of copper cathodes is bound for Baltimore aboard the container ship MSC Samu. The cargo had arrived at the Port of Lobito on August 19 on a LAR-operated train from DRC’s Kolwezi city, six days after its dispatch.

LAR is operated through a 30-year concession awarded back in 2022 to the Lobito Atlantic Railway consortium. It is a joint venture comprising the global commodities trading company Trafigura, Mota-Engil and Vecturis SA, an independent rail operator. The consortium also operates the mineral terminal at the Port of Lobito, which connects to the 800-mile railway line reaching to Angola’s border town with DRC, Luau. The corridor further extends to Kolwezi, the heart of DRC’s copper belt. There are ongoing plans to connect Zambia’s copper belt region to the line as well.

The mineral terminal at the Port of Lobito received its first vessel last month. This came after completion of rehabilitation work carried out in the terminal following the start of LAR’s railway operations in January. The terminal has loaded out a number of copper shipments to ports in Europe and the Far East.

Francisco Franca, Chairman of the Board of Directors of LAR, said that the first shipment to the U.S. this highlights the growing supply of services by international shipping companies to the Port of Lobito.

“This will support the growing development of our operations and regular shipments of raw materials to Europe and America,” added Franca.

LAR consortium is looking to invest more than $800 million to refurbish the railway over the lifetime of the concession. The investment will enable the renovation of sections of the railway line as well as addition of wagons and locomotives.

Early this year, the U.S government through its International Development Finance Corporation (DFC) announced a financial package to support development of the LAR corridor. This includes a $250 million debt facility to the Africa Finance Corporation (AFC), which is providing advisory support to the project. Discussions on this financial support are currently ongoing.