The Ministry of Transport of Angola and a consortium comprising Trafigura Pte Ltd and Mota-Engil Engenharia e Construcao Africa SA have signed a 30-year agreement for the concession of rail services and logistical support for the Lobito corridor that connects rail access from the Democratic Republic of the Congo (DRC) to Angola. 

The consortium will be responsible for the operation, management and maintenance of the rail corridor that transports goods, minerals, liquids and gases and runs for approximately 1,290 km, connecting the Lobito port to Luau, in eastern Angola, close to the border of the DRC. Vec Trafigura, Mota-Engil, and Vecturis each control 49.5% of the consortium, with the remaining 1% being owned by the other. 

The deal, which has a 30-year initial duration, calls for a US$450 million overall investment as well as further operational and capital expenditures. The top line sum consists of USD 100 million for the first concession premium, USD 170 million for infrastructure, and USD 170 million for rolling stock.

When the preconditions of the deal are fulfilled in the next months, the consortium will take over the management of the concession. The concession is anticipated to generate around 1,600 employment places while supplying essential infrastructure for Angola's future and for the expansion of global trade in Africa.