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Volume 12 | February 2025

NEWSLETTER

ANGOLA 

The U.S. backs Angola’s Lobito Corridor—but will Trump’s policy shifts derail the project?

The United States has reaffirmed its commitment to the development of Angola's Lobito Corridor under the Trump administration, emphasizing the project's strategic importance in enhancing regional trade and countering global competitors.

In January 2025, Anthony Eterno, First Secretary at the U.S. Embassy in Angola, visited the Port of Lobito to underscore the sustained U.S. support for the corridor. Eterno highlighted that the bilateral relationship between the U.S. and Angola remains robust, with ongoing projects expected to gain momentum under the current administration. He stated, "The relationship between the U.S. and Angola is quite sustainable. The projects underway will not only continue but are expected to gain momentum”

The Lobito Corridor, a significant infrastructure initiative, aims to connect the mineral-rich regions of the Democratic Republic of Congo (DRC) and Zambia to Angola's Atlantic port of Lobito. This corridor facilitates a more efficient export route for critical minerals such as copper and cobalt, which are essential for various industries, including electronics and renewable energy. The project is a collaborative effort involving global commodities trader Trafigura, Portuguese construction firm Mota-Engil, and Belgian railway operator Vecturis. In 2024, the U.S. International Development Finance Corporation (DFC) approved a $553 million loan to support the refurbishment and expansion of this 1,300-kilometer railway network.

However, recent policy shifts have introduced uncertainties. In February 2025, the Trump administration announced a freeze on foreign aid, leading to concerns about potential delays in the Lobito Corridor project. Officials and project promoters expressed apprehension that this funding suspension could impact the progress of the corridor, which is pivotal for transporting minerals from the DRC and Zambia to global markets.

Despite these challenges, the U.S. government's strategic interest in the Lobito Corridor remains evident. The project not only aims to bolster regional economic integration and development but also serves as a countermeasure to China's significant influence in Africa's infrastructure and mining sectors. By providing an alternative export route, the corridor seeks to diversify supply chains and reduce dependency on existing channels dominated by other global powers.

In summary, while the Trump administration has reaffirmed its support for Angola's Lobito Corridor, recent policy decisions have introduced complexities that may affect the project's trajectory. The situation underscores the delicate balance between strategic interests and policy implementations in advancing such critical infrastructure projects.

Sources: European Union | lusa.com | verangola.net

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ANGOLA 

The Lobito Corridor is deemed to be a transformative project with EU and U.S. support.

AD Ports Group, based in Abu Dhabi, has officially started operations at the Port of Luanda in Angola, competing directly with DP World for dominance in the region’s cargo business. This marks a significant step in AD Ports' expansion strategy across Africa. The company secured a 20-year concession to operate and develop the Noatum Ports Luanda terminal, which it acquired alongside local partners Unicargas and Multiparques. With this agreement, AD Ports holds an 81% stake in the terminal and a 90% share in the logistics business, positioning itself as a major player in the Angolan market.

DP World, which has operated a separate terminal at Luanda since 2021, is also heavily investing in the region, committing $190 million to improve the port’s infrastructure. The competition between the two companies is crucial as Luanda’s port handles approximately 76% of Angola’s container and general cargo, and it serves as a vital gateway for landlocked neighbors like Zambia and the Democratic Republic of Congo.

AD Ports is planning substantial investments, amounting to $250 million over the next two years, to modernize the terminal and increase its capacity. These improvements include upgrading facilities to accommodate larger vessels, specifically Super Post Panamax ships, and enhancing container and RoRo (roll-on, roll-off) handling capabilities. Over the lifetime of its concession, AD Ports plans to invest a total of $380 million, aiming to increase container capacity from 25,000 TEU to 350,000 TEU.

This move is part of AD Ports' broader African growth strategy, which includes over $800 million in investments across various countries like Egypt, Tanzania, and the Republic of Congo, aiming to tap into the growing demand for maritime and logistics services in the region.

Sources: maritime-executive.com

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CONGO 

AD Ports and CMA CGM strengthen their relationship as they set out to revolutionize Pointe Noire with the New East Mole terminal.

AD Ports and CMA CGM have partnered to develop, manage and operate the New East Mole multipurpose terminal in Pointe-Noire, Republic of Congo. AD Ports holds the majority stake in the joint venture and received a 30-year extendable concession in June 2023. The terminal’s purpose is to handle containers, general cargo, and more. A $220 million investment is planned for Phase 1, which includes building a 400-meter quay and a logistics area.

This move builds on their prior collaborations, including the Khalifa Port expansion launched in December 2024. The companies stated: “With this new agreement, AD Ports Group and the CMA CGM Group are further cementing their partnership after the inauguration of CMA Terminals Khalifa Port last December, a AED 3.1 billion (USD 845 million) container terminal that will eventually expand Khalifa Port’s container capacity of 7.8 million Twenty Foot Equivalent Units (TEUs) in 2024 by 33% or 2.6 million TEUs.”

Mohamed Eidha Al Menhali, regional CEO of AD Ports Group, further stated that they “believe this partnership will position the Republic of Congo at the centre of maritime trade, in line with projections for annual growth of 3% to 5% in container volumes forecast for the country over the medium term”.

Lastly, the terminal is set to be equipped with advanced equipment, including four Super Post-Panamax (STS) cranes and 12 RTGs, all being 100% electric. The project is scheduled to be completed in 2027.

Sources: World Cargo News | Splash 247 | DredgingToday.com | Safety4Sea

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CAMEROON 

Kribi Seaport is set to launch its new major container terminal by welcoming its inaugural vessel and many more for the future.

The Kribi deep seaport in southern Cameroon is aiming to enhance its role as a central hub in the Gulf of Guinea with the imminent launch of its second container terminal. This new facility, featuring a 715-meter quay—double the length of the existing terminal—and a 33-hectare storage area, is set to receive its inaugural vessel by late February or early March 2025, according to Patrice Melom, Director General of the Kribi Port Authority (PAK).

The terminal's operations will be managed by Kribi Containers Terminal (KCT), a consortium comprising Africa Global Logistics (formerly Bolloré), China Harbour Engineering Company (CHEC), and French shipping leader CMA CGM. In preparation for the terminal's activation, KCT has invested approximately CFA70 billion in state-of-the-art equipment. Recent deliveries include 13 gantry cranes, two container carriers, and three empty container handlers, collectively valued at CFA49 billion.

This expansion is a pivotal component of the second phase of the Kribi deep seaport development project, which encompasses the construction of additional terminals for hydrocarbons and minerals, as well as a 675-meter extension of the breakwater. The overall investment for this phase is estimated at CFA400 billion, with 75% financed through a loan from China's Eximbank.

The operationalization of the new terminal is anticipated to generate over 300 direct jobs, bolstering the port's industrial capabilities and stimulating economic activity throughout the region. David Azra, CEO of KCT, emphasized the strategic importance of this development, stating that it will enhance service delivery for shippers, consignees, and shipping companies, thereby reinforcing Kribi's position as a key maritime gateway in the Gulf of Guinea.

With the completion of this expansion, the Kribi deep seaport is set to significantly increase its capacity and operational efficiency, positioning itself as a competitive maritime hub in the region.

Sources: Business in Cameroon

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DEMOCRATIC REPUBLIC OF CONGO 

Critical debate arises over DRC's infrastructure priorities as Kinshasa-Brazzaville bridge faces criticism

The proposed road-rail bridge connecting Kinshasa and Brazzaville has ignited significant debate within the Democratic Republic of Congo (DRC). The Congolese Association for Access to Justice (ACAJ) has urged the national parliament to reject this project, emphasizing the necessity to prioritize the completion of the Banana deep-water port in Kongo-Central province. The ACAJ contends that advancing the bridge project at this juncture could undermine the strategic importance of the Banana port, a facility currently under development by the Qatari firm DP World. They highlight that President Félix Tshisekedi had previously committed to deferring the bridge's construction until the port becomes operational, questioning whether proceeding with the bridge now constitutes a reversal of this pledge.

Critics of the bridge project argue that it may inadvertently perpetuate the DRC's reliance on neighboring countries' ports, such as Pointe-Noire in the Republic of Congo, thereby hindering the development of the nation's own maritime infrastructure. The concern is that the bridge could divert traffic away from the Banana port, potentially rendering it less viable and affecting its economic prospects.

The bridge, envisioned to span approximately 1,575 meters across the Congo River, aims to facilitate both road and rail connectivity between the two capitals. While proponents assert that it would enhance regional integration and stimulate economic growth, detractors caution that without first establishing robust domestic port facilities, the DRC risks compromising its economic sovereignty and missing out on critical trade opportunities.

In light of these concerns, the ACAJ and other stakeholders advocate for a strategic reassessment of infrastructure priorities. They recommend focusing on completing the Banana deep-water port to ensure the DRC secures its own access to international maritime routes before embarking on cross-border projects that might dilute national interests.

Sources: actualite.cd | gence Ecofin

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Volume 13 | March 2025
NEWSLETTER