Angola Transportation Infrastructure Rail and Port Development
Overview
Increasing Angola’s transportation capacity is a high priority in the Angolan government’s national development plan. The Angolan government’s primary focus is to improve the movement of people and goods across all 18 provinces in Angola. Angola also has ambitions to become a key, regional hub and an open market connecting exports and imports throughout the Southern region and the rest of the Continent. To this end, there are critical areas in logistics, port management, transportation/infrastructure development, agriculture, telecommunications, and energy infrastructure where U.S. companies can play a key role.
Rail Sector
The Angolan government operates three separate railroad lines, the Luanda line (CFL) in the north, the Benguela line (CFB) crossing the central part of the country, and the Moçamedes line (CFM) in the south, each with its own Administrator reporting to Angola’s Ministry of Transportation. The Angola National Institute of Railroad (INFCA) establishes the regulations and standards for railroad operations and holds the enforcement authority in the country. The government-owned railroad companies are responsible for railroad operations and maintenance, including the purchase of spare parts. Opportunities for U.S. companies to provide services and equipment in railroad operation and maintenance exist with the government and with local companies in this sector.
The 2023 Angolan national budget allocated $62 million to support the development of the rail sector and spur economic growth. To expand the railroad cargo network, the Ministry of Transportation will require passenger, freight, tank carriages, and related rail operations and maintenance support. Future Angolan government plans include the construction of three additional lines, totaling over 10,000 km, that will link the three main railroad lines.
Opportunities - Market Highlight: The Lobito Corridor
In October 2021, Angola launched a public tender for the concession of the Lobito railway line, and in July 2022, it was awarded to a European consortium, which will develop and maintain the line for the next 30 years with the possibility of an extension up to 50 years. The consortium is made up of Mota Engil, a Portuguese construction company that has been in Angola for about 70 years and is one of the main players in the Angolan market; the Swiss multinational Trafigura, which is one of the main world traders in the area of commodities; and Vecturis, a railway operator of Belgian origin, with strong rail transport activity (passengers, ores, and commercial cargo) in African countries such as the Democratic Republic of Congo, Tanzania, Cameroon, Madagascar, Côte d’Ivoire, Burkina Faso, and Algeria.
The Lobito Corridor has its starting point at the deep-water Port of Lobito and crosses the Angolan territory in an extension of 1,300 kilometers. The line heads east to the mining regions of the Democratic Republic of Congo, Katanga province, and the copper belt in Zambia. Benguela, Huambo, Bie, and Moxico are the Angolan provinces that are within the corridor from Lobito to the Democratic Republic of Congo and Zambia. This important rail transport line will have a strong impact on the region, as it will be the main point for the flow of all agricultural and mineral products that extends along the corridor, reducing transit times for goods inland to the port of Lobito considerably. With this solution, products transported from the three connected countries can be shipped through the Port of Lobito, and connected to the Atlantic Ocean, instead of the Indian Ocean, through the port of Dar Es Salaam.
Leading Sub-Sectors
• Signaling and control equipment/systems
• Railroad maintenance equipment
• Passenger carriages
• Freight and tank carriages
• Maintenance and repair parts (wheels, axles, bearings)
• Maintenance centers and training
• Locomotives for shunting
Ports Sector
Angola has a 1,600 km of Atlantic Ocean coastline and offers solid medium to long-term potential for development in the maritime transportation and security sectors. Angola has six ports: Luanda, Lobito, Cabinda, Soyo, Namibe, and Ambriz. According to the report from the Angolan Cargo and Logistics Certification Regulatory Agency (ARCLAA), during the third quarter of 2023, Angolan seaports supported the movement of 1,144,176 tons of cargo. The Port of Luanda is at the top of this list with 996,928 tons and processing about 87 percent of the country’s entire cargo. Specifically, the port accounts for 70-80 percent of non-petroleum foreign trade such as automobile components, beverages, and cash crops including coffee, cotton, and oilseed. The port of Lobito follows with 92,911 tons, port of Cabinda with 35,790 tons, port of Soyo with 9,148 tons, port of Namibe with 9,001 tons, and the port of Ambriz with 399 tons.
Two new green-field ports were initiated several years ago to increase cargo capacity and competitiveness. The Caio Port (deep-water port) is under development in Cabinda with plans to provide regional services. However, the Barro do Dande project (a container terminal) in Bengo near Luanda stalled due to the country’s economic downturn, resulting in drastic declines in cargo traffic.
In early 2020, the Angolan government launched an open public tender for the concession of the Multipurpose Terminal of the Port of Luanda-E.P. that was awarded to DP World, a UAE company.
Opportunities
As Angola’s economy improves and cargo volumes increase, there are opportunities for U.S. companies to export services and products, and provide technological solutions in this sector. These opportunities are related to security, enhancing productivity, and vessel tracking all falling under the umbrella of technology-based port operations. Past Angolan national budgets have provided multi-million-dollar funding for seaport infrastructure rehabilitation and construction and more funding will be earmarked for seaports in future budgets.
An increased focus on maritime security opens opportunities for U.S. companies with solutions related to coastal patrolling, search and rescue, and related communications and monitoring technologies, including space-enabled technologies. The Ministry of Defense in Angola is the ministry lead for maritime security, with involvement from other ministries, including the Ministry of Transportation (Ports) and Fisheries.
A 2016 Angolan government decree formally authorized a new National Search and Rescue Center to be established under the Maritime and Port Institute (IMPA) with inter-ministerial involvement. Internal studies are underway to ascertain existing infrastructure and to determine needed communication systems, equipment, and training for the Center to be fully functional. However, due to current government budgetary constraints, funding has not been allocated for the development of the search and rescue center.
Leading Sub-Sectors
• Port operations – focus on technology-based solutions to increase port productivity.
• Maritime and coastal security technologies.
• Vessel tracking technologies for new control center at Port of Luanda,
• Engineering and design services for greenfield ports.
• Technical support and training
• Maintenance service and parts
Sub-Saharan Africa Rail and Port Trade Mission (SSARP TM) to South Africa and Angola – August 19-24, 2024
If you’re interested in entering the Angolan market, then the SSARP TM should be a key component of your market-entry strategy. The Angola stop will increase U.S. rail and port companies’ awareness and engagement in the Lobito Corridor Project, which is a flagship project under the U.S. State Department’s Partnership for Global Infrastructure and Investment. The Angola mission stop will include business-to-business and business-to-government meetings, visits to Angolan ports and rail infrastructure sites, and networking opportunities coordinated by the International Trade Administration.
For more information about the Sub-Saharan Africa Rail and Port Trade Mission to South Africa and Angola in August 2024, please visit Sub-Saharan Africa Rail and Port Trade Mission - Hotsite to register. Don’t miss out on this unique opportunity to explore new opportunities in these dynamic markets.
Next Steps
For more information about the opportunities in the port and rail sectors and to design your market-entry strategy for Angola contact Commercial Assistant Mauro Fonseca at Mauro.Fonseca@trade.gov.