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CITIC and Shandong Port Group to manage cargo terminal at Angola’s Lobito Port

Chinese consortium to pay US$100 million for concession, guarantee 2.78 million tons of cargo annually.

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Chinese consortium to pay US$100 million for concession, guarantee 2.78 million tons of cargo annually.

ARTICLE BY

PUBLISHED

READING TIME

Less than 1 minute Minutes

UPDATED: 22 Dec 2023, 4:44 am

China International Trust Investment Corporation (CITIC) and Shandong Port Group (SPG) have won the public tender for the management and operation of Angola’s Port of Lobito Multipurpose Container and General Cargo Terminal.

The 20-year concession was awarded after the Chinese bid beat a proposal by the Philippine group ICTSI.

ICTSI previously lost the tender for the management of the Port of Luanda terminal, which went to Dubai’s DP World.

The CITIC/SPG consortium undertook to pay US$100 million on the date of signature of the concession contract and guarantee a maximum volume of 2.78 million tons of cargo per year, as well as increase containerised cargo capacity to 100,000 TEUs (unit equivalent to a 20-foot container) per year until the end of the concession.

The consortium’s proposed investments are dependent on the inauguration of the Western Logistics Route (Rota Logística do Oeste) which, if it does not go ahead, will jeopardise the financial balance of the proposal.

The Chinese consortium will also invest US$8.3 million in training over a period of 10 years and US$33.9 million in national services and products.

According to the Angolan government, the overall aim is to maximise the potential of the Lobito Corridor railway infrastructure, boost exports and indirect investments in multimodal platforms, terminals and other infrastructures along the line, to “promote the economic, social and cultural development of local communities.

The reactivation of the Lobito Corridor also aims to boost regional integration, taking into account the possibility of connecting the Atlantic and Indian Oceans with the railroad’s connection to the Port of Dar es Salaam in Tanzania.

Operation of the Lobito Corridor involves additional investment along the Lobito/Benguela/Luau railway route, including integration of the adjoining railway on the other side of the border in the Democratic Republic of Congo (DRC) and construction of a branch line to Zambia.

According to the government, some US$1.9 billion has recently been invested in rebuilding the railway and the link with the DRC, CLBrief reported.

 

UPDATED: 22 Dec 2023, 4:44 am

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