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  • Lobito Corridor Investment Promotion Authority

All-American Rail Group Inks MOU to Assist Angola to Extend Northern Corridor Rail to DRC

All-American Group signing of MOU in Angola

On December 9, 2023, the All-American Rail Group ("AARG") codified its commitment to provide advisory services to Angola's rail and infrastructure development through the signing of a Memorandum of Understanding ("MOU") with Angola's Ministry of Transport. The entire Lobito Corridor project is valued at $4.5 billion and includes infrastructure through more than 340 kilometers (i.e., 830 miles) of land through Angola, the DRC and Zambia. This MOU is related to the Angola portion of the track between Luanda, Angola's capital, and the Democratic Republic of Congo's (DRC) southern city of Lubumbashi.

Mustafa Ocalir, a member of the All-American Rail Group's board of directors had the following to say:

“This Memorandum of Understanding is our first step towards supporting the expansion plan for the Angolan railway network, a critical issue for the diversification of the economy and job creation. It is important to understand, however, that the Northern Corridor is not just about rail. We intend to build and integrate the railway with logistics platforms and a port in this agricultural region, to advance the bold PlanAgrão and reinforce the country’s food security.”

From Angola's side, both the President and Minister of transport weighed in:

"The signing of this MoU is a major step forward in our efforts to modernize our infrastructure and boost our economy. We are confident that this project will create jobs, promote trade, and improve the lives of Angolan people." - President João Lourenço of Angola
"This project is part of the Angolan government's strategy to develop the country's railway infrastructure and improve connectivity within the region. We believe that the partnership with AARG will bring significant benefits to Angola, including job creation, economic growth, and improved access to essential goods and services." - Ricardo D'Abreu, Angolan Minister of Transport

A primary objective of the MOU is to extend Angola's rail infrastructure from Malanje, Angola, to Lumumbashi in the DRC. The additional rail will boost the reach and efficiency of the Lobito Corridor.

Angola rail infrastucture

The additional logistics infrastructure will boost food security in Angola. The World Bank estimates that Angola has 58.2 million hectares of arable land characterized by low yields and low efficiency due to low investment and other factors. The infrastructure will be useful for moving other goods such as oil, timber, and minerals. A large land port is contemplated along this section of rail but details are scant and not yet public.

The AARG is a group of American logistics firms, most specialized in rail, assembled to offer services and manage aspects of the Lobito Corridor improvement works and infrastructure. The group collectively has managed 3,000 railway projects (200 were large-scale) in the United States with annual company revenues of nearly $20 billion. The consortium has funding from the US Export-Import Bank.


Image by katsuma tanaka
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