Copper volumes prompt route diversification

Rising copper production in Zambia and the Democratic Republic of the Congo (DRC) is accelerating the race to strengthen alternative trade corridors as the region prepares for a significant increase in cargo volumes. While both economies are heavily dependent on copper, constrained by power shortages and seeking to diversify, their operating environments and logistics challenges differ substantially, according to Africa House partner Duncan Bonnett. “On the surface, the issues are similar, but once you start digging down, each country has a completely different set of factors to take into account,” he told Freight News. With the copper-producing regions of both countries landlocked, and difficulties on the traditional export route through Durban creating additional risk and delays, cargo flows have already begun shifting across the region. The DRC has focused strongly on developing a westward route through the Lobito Corridor, while Zambia has adopted a more diversified strategy, strengthening access to corridors running both east and west. Where copper traffic was once heavily concentrated on Durban, it is now spread more evenly across Dar es Salaam, Walvis Bay, Beira and Durban, along with some smaller volumes moving through Nacala and Lobito. According to Bonnett, volumes on the Lobito corridor are expected to grow, particularly as the corridor offers a significantly shorter journey from the DRC. A truck round trip between Kolwezi and Durban can take 35 to 40 days or longer, compared with approximately 14 to 16 days between Kolwezi and Lobito. The western route also involves only one border crossing rather than several. He said Lobito and the Tazara Corridor to Dar es Salaam would be “game changers”, as both are rail- based. Shifting bulk mineral cargo from road to rail would deliver substantial long-term benefits, although sufficient capacity and reliability would be critical. “There is a lot more urgency across the region to unlock potential and remove bottlenecks from railways, roads and ports,” said Bonnett. “There is no point in having excellent road and rail connections if the ports remain a shambles.” Ports were therefore receiving as much attention as the road and rail networks feeding them, he added. According to Bonnett, Zambia is entering this growth phase with some advantages over the DRC. Not only does it have stronger internal infrastructure, but also several competing trade routes, while its manufacturing base is also more developed than the DRC. “The DRC has some big challenges to overcome, starting with it being a massive piece of real estate. Unlocking trade between Kinshasa and the Copperbelt is very difficult because you don’t have adequate roads, rail or power. There is really very little interconnectivity in the country.” LV