Mota-Engil is set to sign a 30-year concession to rehabilitate and operate a key copper and cobalt railway in the Democratic Republic of Congo. This information was reported by Bloomberg. The project could receive up to $1bn in US financing. Additionally, the Lobito Rail Corridor passes three African countries namely: DRC, Angola, and Zambia.
The agreement would grant Portugal’s largest construction company control of the Congolese section of the Lobito Corridor. Additionally, the strategic route will increase shipments of critical minerals to Western markets.
Length of the Railway
The railway section spans roughly 1,000km. It runs through major mining centres including Kolwezi, Tenke and Lubumbashi.
Furthermore, Mota-Engil already helps operate the corridor’s Angolan section through a joint venture with Trafigura. This section links the mineral-rich interior to the Atlantic port of Lobito.
Project Backing
The US International Development Finance Corporation has backed the Angolan route. Also, in December the institution signed a letter of interest with Mota-Engil for up to $1bn to support rehabilitation and operation of the Congolese railway.
US and China Scramble for Africa’s Critical Minerals
The project reflects intensifying competition for Africa’s critical minerals. Congo is the world’s second-largest copper producer and its leading source of cobalt, but Chinese companies currently dominate much of the country’s output.
However, to counter China, the US has sought closer mineral ties with the country. This move comes in as it tries to reduce reliance on China for strategic commodities.
The Lobito investment also comes as Chinese companies advance a $1.4bn overhaul of a rival railway linking Zambia’s copper belt with Tanzania’s Indian Ocean port of Dar es Salaam, underscoring the growing geopolitical importance of African mineral-export infrastructure.
DRC Lobito Corridor Railway Concession: Project Factsheet
Project Name: Lobito Corridor (DRC Rail Section Concession)
Primary Operator: Mota-Engil (Portugal’s largest construction company), in joint venture partnership with Trafigura
Concession Term: 30 years
Railway Length: 1,000 km (Congolese section)
Key Termini & Hubs: Kolwezi, Tenke, and Lubumbashi (DRC Copperbelt) to Dilolo (Angola border)
Target Commodities: Copper, Cobalt, and critical battery minerals
Key Backer / Financier: US International Development Finance Corporation (DFC)
US Financing Commitment: Up to $1 Billion (LOI signed via DFC)
Strategic Purpose: Establish a direct Atlantic supply route for critical minerals to Western markets while countering Chinese dominance in African logistics infrastructure
Project Team
Consortium and Operating Partners
- Mota-Engil (Portugal): Lead construction, engineering, and infrastructure group holding a 49.5% stake in the operating joint venture.
- Trafigura (Singapore/Switzerland): Global physical commodities trading giant holding a 49.5% stake in the operating joint venture.
- Vecturis SA (Belgium): Independent African railway operator holding a 1% stake in the joint venture, responsible for technical management and operations.
- Lobito Atlantic Railway (LAR): The joint venture entity formed by Mota-Engil, Trafigura, and Vecturis to manage the 30-year concession.
National Rail Infrastructure Authorities
- SNCC (Société Nationale des Chemins de fer du Congo): DRC national railway company managing the local rail network.
- CFL (Caminhos de Ferro de Benguela): Angola state rail company owner of the underlying Benguela railway line.
Key Financing and Development Institutions
- U.S. International Development Finance Corporation (DFC): Lead Western financier committing up to $1 billion in LOI funding.
- Africa Finance Corporation (AFC) and African Development Bank (AfDB): Regional development finance partners.
- European Investment Bank (EIB): Co-funder supporting linked regional infrastructure packages.
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