In a landmark development for African rail logistics, Traxtion, one of the largest private freight rail companies on the continent, has officially expanded its operations into Angola by securing a new contract with the concessionaire of the Lobito Rail Corridor. This move strengthens the company’s footprint across nine African countries and marks a significant step in its mission to improve freight movement across the continent.

The Lobito Corridor, a vital trade route connecting the Democratic Republic of Congo (DRC), Zambia, and Angola, is gaining increased importance as a preferred transportation route for copper, cobalt, and other minerals. With global demand for these minerals surging, efficient logistics solutions are crucial, making Traxtion’s entry into Angola a strategic and timely decision.

Traxtion’s Operational Strategy in Angola

Traxtion CEO James Holley emphasized that while the company has previously conducted business in Angola by supplying parts to the national rail operator, this new contract represents a physical presence in the country through its locomotives and personnel.

“This new contract follows Traxtion leasing U20C locomotives to concessionaire Lobito Atlantic Railway, which is currently operating the concession on the Lobito line. These were used to shuttle copper and other freight to the Angola-DRC border, where other locomotives—more suitable for higher speeds—took over,” Holley explained.

However, the port of Lobito presents a significant logistical challenge. Its current infrastructure cannot accommodate 30-wagon trains, which means freight trains must be broken into smaller sections before being transported to the harbor. To address this bottleneck, Traxtion has deployed G18U shunting locomotives, which allow mainline locomotives to quickly drop wagons and turn around more efficiently.

As part of this initiative:

• Two shunting locomotives have been leased to the operator, ensuring smoother freight movement.
• Traxtion will provide full maintenance of these locomotives to guarantee efficiency.
• Operator staff will undergo conversion training to familiarize themselves with Traxtion’s equipment.
• The first locomotive will arrive in Angola soon, while the second is expected by mid-2025 after undergoing upgrades at the Rosslyn Rail Hub in Pretoria, South Africa.

A Step Toward Freight Transformation in Africa

This contract is a perfect fit with Traxtion’s vision of revolutionizing freight transport in Africa. Holley emphasized that logistical projects in Africa are often complex, requiring customized solutions to meet each region’s unique challenges.

“Projects in Africa can be tough, and that is why we tailor-make solutions for our clients. We had delivered for this customer in the DRC, and that successful project means we have now been able to move into Angola with them.”

With Angola now part of Traxtion’s expanding African network, the company is also shifting its focus toward South Africa, where it sees significant opportunities in third-party rail access.

“Our fleet is fully deployed at the moment, and while there are interesting opportunities on the radar, our attention is now on getting Traxtion trains running on the national network here. There is so much unserved freight here—it makes sense for us to invest in South Africa’s rail future,” Holley added.

The Strategic Importance of the Lobito Corridor

The Lobito Rail Corridor is a 1,300 km railway line that stretches eastward from Angola’s Atlantic coast to the DRC border, with connections to Zambia. Originally built in the early 1900s, the corridor suffered significant damage during Angola’s civil war (1975–2002) but has undergone rehabilitation efforts in recent years.

Its strategic location makes it a preferred route for the export of copper, cobalt, and other minerals extracted from the mineral-rich Copperbelt region of Zambia and the DRC. With global industries, particularly electric vehicle (EV) manufacturers, demanding increasing amounts of cobalt and copper, the corridor is set to play a pivotal role in Africa’s trade future.

Recent developments highlighting its growing significance include:

• August 2024: Lobito Atlantic Railway’s first-ever shipment of copper from the DRC to the United States via the Port of Lobito.
• Ongoing expansion efforts aimed at increasing freight capacity and efficiency.
• International partnerships seeking to enhance infrastructure and operational efficiency.

Geopolitical and Economic Implications

The Lobito Corridor is gaining substantial geopolitical attention, particularly from the United States and European Union, who view it as a strategic alternative to China’s Belt and Road Initiative (BRI) in Africa.

U.S. and European Investment Interests

• In December 2024, U.S. President Joe Biden visited Angola, becoming the first sitting U.S. president to do so.
• The visit underscored Washington’s commitment to developing critical infrastructure projects that provide alternatives to Chinese investments.
• The European Union has also expressed interest in funding railway expansion and modernization along the corridor.

“This corridor will be a game-changer for mineral exports from the DRC and Zambia. It provides a faster, more reliable, and geopolitically secure alternative to existing routes dominated by Chinese firms,” said a European Commission trade official.

However, China remains a dominant force in Africa’s mineral trade. Many of the minerals extracted along the corridor are already controlled by Chinese companies, who also lead the global electric vehicle battery supply chain.

For the U.S. and European stakeholders to maximize the potential of the Lobito Corridor, they will need to address infrastructure gaps, improve security, and negotiate competitive pricing strategies to attract mining firms away from Chinese buyers.

Challenges and Opportunities in Angola’s Rail Sector

While Traxtion’s expansion marks a positive step, Angola’s railway sector still faces several key challenges:

1. Aging Infrastructure – Despite recent upgrades, some sections of the railway require further modernization.
2. Regulatory and Bureaucratic Hurdles – Streamlining customs and freight regulations will be crucial.
3. Security Concerns – Ensuring cargo safety along the corridor remains a priority.
4. Limited Financing for Expansion – Angola must attract further investment to enhance its rail network.

At the same time, there are significant opportunities:

• Growing demand for alternative transport routes as mining firms seek cost-effective, efficient logistics solutions.
• Potential for public-private partnerships (PPPs) to improve railway infrastructure.
• Increased regional trade opportunities through integration with Zambian and DRC rail networks.

Traxtion’s Role in Africa’s Freight Future

By establishing operations in Angola, Traxtion is positioning itself as a key player in Africa’s evolving rail freight industry. The company’s long-term vision extends beyond Angola, with potential future projects in:

• Mozambique – Enhancing rail connections to major ports.
• Tanzania – Supporting freight logistics via the Central Corridor.
• Botswana and Namibia – Strengthening cross-border rail networks.

Holley remains optimistic about Traxtion’s impact on Africa’s logistics industry:

“We believe that rail is the key to unlocking Africa’s economic potential. By modernizing freight transport, we can significantly reduce logistics costs, enhance trade, and drive industrial growth.”

Conclusion

Traxtion’s expansion into Angola through its Lobito Corridor contract is a significant milestone in its mission to modernize freight logistics in Africa. By deploying state-of-the-art locomotives, training local staff, and providing innovative rail solutions, the company is playing a crucial role in reshaping Africa’s supply chain dynamics.

As the Lobito Corridor continues to attract global investment and geopolitical interest, its success could redefine trade routes across Africa, ensuring greater economic prosperity for Angola, the DRC, Zambia, and beyond.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

31^st January, 2025