The Texas-based All-American Rail Group (AARG) signed a memorandum of understanding with the Angolan government earlier this month for a railway expansion project in the north of the country, according to reports.
The US$4.5 billion project will connect the rail network from Luanda to the Democratic Republic of the Congo, and support the development of agribusiness across the provinces of Ulge, Kwanza-Norte, Bengo, Malanje and Zaire in close synergy with the logistics hubs of Malanje, Lombe, Luvo and Soyo.
Angola’s transport minister, Ricardo Viegas D’Abreu, called the signing a “first step” toward the planned expansion of the network, creating jobs, aiding diversification and ultimately boosting food security.
[See more: Using infrastructural investment, the US vies with China in Angola]
The signing of the memorandum comes as Washington commits US$1 billion to fund solar power, bridges, and internet infrastructure in Angola, and offers a further US$1 billion to fund the Lobito Corridor – another strategic railway link in the centre of the country.
D’Abreu said Angola’s master transport plan calls for the eventual creation of three such corridors to the borders with neighbouring countries, improving connections to ports and increasing trade.
The Houston-based AARG is a railway consortium of six North American railway and infrastructure companies.
