Concession agreement signed with the Angolan government for rail services and logistics support for the Lobito corridor
Luanda, 9 November 2022 – a consortium comprising Trafigura Pte Ltd (“Trafigura”), a market leader in the global commodities industry, Mota-Engil Engenharia e Construcao Africa SA (“Mota-Engil Africa”), an international construction and infrastructure management company and Vecturis SA, an independent rail operator, has signed a 30-year agreement for the concession of rail services and logistical support for the Lobito corridor, a key route connecting rail access from the Democratic Republic of the Congo (DRC) to the Lobito port in Angola and to international markets. The consortium is owned 49.5 percent each by Trafigura and Mota-Engil, with the remaining one percent owned by Vecturis.
The Consortium will be responsible for the operation, management and maintenance of the rail infrastructure for the transport of goods, minerals, liquids and gases for the corridor that runs for approximately 1,290 km, connecting the Lobito port to Luau, in eastern Angola, close to the border of the DRC. As part of the concession agreement the consortium has committed to invest significant capital in improving the rail infrastructure to improve the capacity and safety of the Lobito corridor, as well as to invest in significant rolling stock for freight operations. With an initial term of 30 years, the agreement provides for a total investment of USD450 million, plus additional operating and capital expenditures. The headline figure includes USD100 million for the initial concession premium; USD170 million for infrastructure; and USD170 million for rolling stock.
The consortium will take over responsibility for the concession when the conditions precedent of the agreement are met in the months ahead. The concession is expected to create approximately 1,600 jobs while providing a fundamental infrastructure for the future of Angola and for the further development of international trade in Africa.
ENDS
For further information, please contact:
Mota-Engil Press Office: Pedro Arrais, Tel: +351 214 158 576 or pedro.arrais@mota-engil.pt
Trafigura Press Office: +41 (0) 22 592 4528 or media@trafigura.com
Vecturis Press Office: Eric Peiffer, Tel: +32 (2) 626 26 87 or epe@vecturis.com
Notes to Editors
About Mota-Engil
Founded in 1946, with Angola as the first market where Mota-Engil started its operations, today the Mota-Engil Group is a multinational company with operations focused on construction and infrastructure management in the segments of engineering and construction, environment and services, transport concessions and energy.
With a turnover of EUR2,592 mn in 2021, Mota-Engil is headquartered in Portugal and ranked as the 25th largest construction group in Europe. The Group employs 41,000 people and is present in 24 countries in Europe, Africa and Latin America.
Visit: www.mota-engil.com
About Trafigura
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals & Minerals, and Power & Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. Trafigura is owned by its employees and employs over 13,000 people working in 48 countries.
Visit: www.trafigura.com
About Vecturis
Vecturis is an independent railway operator with more than 25 years of experience managing and revitalising railways, mainly long-distance corridors in sub-Saharan Africa. Headquartered in Belgium, Venturis has multidisciplinary teams located in Cameroon, Côte d'Ivoire, DRC, Gabon, Madagascar, Mali, Senegal and South Africa. Vecturis has managed, on behalf of the DRC government, and the Société Nationale des Chemins de fer Congo (SNCC), to execute around USD500 million of funding, mobilized from the World Bank. Vecturis has gained unparalleled knowledge of Congolese actors, the local freight market and the conditions of operation of the railway in the Copperbelt region.
Visit: www.vecturis.com