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

 

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

The concession, for a period of 20 years, follows a public tender where the Chinese bid surpassed another by the Philippine group ICTSI, according to the appraisal report of the final proposals. ICTSI had already lost the tender for the management of the Port of Luanda terminal, which went to DP World, from Dubai.

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

Lobito Corridor Concession in Angola Attracts CITIC, CR20 and Mota-Engil

According to the final report, the proposed investments to be carried out after the third year of the concession are conditioned to the entry into operation of the Western Logistics Route (Rota Logística do Oeste) which, if not materialized, jeopardizes the financial balance of the proposal presented.

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

According to information published on the Angolan government website, the 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 interconnecting 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 and construction of a branch line to Zambia.

According to the government, some USD 1.9 billion has recently been invested in rebuilding the railway and the link with the Democratic Republic of Congo (DRC), whose profits may now have the opportunity to be recovered.

 

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