A substantial R10.5-billion railway project, intended to establish a connection between Angola's Lobito port and the Democratic Republic of Congo (DRC) and Zambia, has raised concerns among South African logistics operators. While the project promises significant regional benefits, it is expected to divert volumes away from South Africa, impacting the country's logistics industry.Duncan Bonnett, a partner at Africa House, discussed the implications of the railway development with Freight News, highlighting the potential losses for South African operators. Apart from losing the copper exports that would have typically exited through South Africa, the backhaul of cargo on the route is also at risk."While this project is undoubtedly a positive development for the region, it poses challenges for South Africa, resulting in the loss of several million tons of cargo," explained Bonnett.The new railway connection is set to improve transportation and trade efficiency between Angola, the DRC, and Zambia. However, South African logistics operators must now face the reality of losing a significant portion of their transport volume to this new corridor.As the project progresses, it will be essential for South African businesses and policymakers to strategise and adapt to the changing trade landscape, says Bonnett. This could involve seeking alternative trade routes, diversifying cargo offerings, and exploring new business opportunities to mitigate the potential impact of the rerouted volumes.According to Bonnett, the Lobito Atlantic Railway Line would be the shortest and fastest way of moving copper, cobalt and other raw materials from Kolwezi in the DRC to a port.The 1300-kilometre Lobito corridor will not only offer the DRC a quicker way to export but also extend Zambia’s Copperbelt. It will also be a faster import route for Angola, Zambia and the DRC from Europe and the Americas.Bonnett said the rehabilitation of the Lobito corridor had been on the cards as far back as 2004 and was seen by various southern African countries as a way to break their dependence on South African ports.Angola, in particular, has been on a drive to improve its corridor network as it sets out to improve its oil industry performance.According to NJ Ayuk, executive chairman of the African Energy Chamber, the country has overcome significant challenges in recent years, working its way up through the ranks to become one of the biggest crude oil producers in Africa.
