Logistics

The railway is expected to create economic benefit of approximately US$3bn. (Image source: Adobe Stock)

The Africa Finance Corporation (AFC) has signed concession agreements with the governments of Angola and Zambia in a boost for the Zambia Lobito Rail Project

This project includes the construction of approximately 800 km of greenfield rail line connecting the Benguela rail line in Luacano to the existing Zambia Railways Line in Chingola. This will greatly improve the efficient movement of goods, while promoting investments in agriculture, health, digital infrastructure, mining, and electricity access along the corridor.

Last year, AFC was appointed lead developer on the Zambia Lobito Rail Project in collaboration with the United States Government, the EU, the African Development Bank and the governments of Angola, the DRC and Zambia. The new agreements are for the financing, construction, ownership and operation of the project and were signed on the sidelines of the 79th UN general Assembly.

“The Zambia Lobito Rail Project is an important milestone in our efforts to modernise infrastructure, enhance the competitiveness of our economy, and improve the livelihoods of our people,” said Frank Tayali MP, Minister of Transport for Zambia. “We look forward to partnering with Africa Finance Corporation to deliver on this groundbreaking project.”

AFC also signed an agreement to receive US$2mn grant funding from the United States Trade and Development Agency (USTDA) for the completion of the environmental and social studies for the project.

“The Zambia Lobito Rail Project represents a game-changing development for the region, unlocking tremendous potential for trade, industrialisation, and socio-economic growth,” remarked Samaila Zubairu, president & CEO of AFC. “AFC is proud to partner with the governments of Angola and Zambia to deliver worldclass rail infrastructure, which will accelerate industrial development in Africa, promote regional integration and provide a vital export route for copper and other critical minerals for the global energy transition.”

Menzies Aviation opens a new cargo facility at Maputo International Airport, boosting Mozambique's freight capacity and expanding its East African footprint. (Image source: Menzies Aviation)

Menzies Aviation, a leading global service partner to airports and airlines, has officially opened a new cargo facility at Maputo International Airport (MPM) in Mozambique

This state-of-the-art facility enhances MPM’s freight capacity, marking a significant milestone in Menzies’ expansion across East Africa. With this development, the company’s regional customer base is expected to grow in the coming months and years.

Equipped with advanced technology and high-end facilities, the cargo warehouse enables Menzies to provide airlines, including initial clients Airlink and Qatar Airways, with efficient, high-quality, and safe cargo services. 

Menzies Aviation has been operating at Maputo International Airport since 2018, initially under the National Aviation Services brand until 2022. In 2019, the company expanded its services by introducing two exclusive lounges in the airport's international and domestic terminals, along with providing Meet and Assist and ground handling services at Mozambique’s busiest airport.

“We’re thrilled to cut the ribbon on our new cargo warehouse in Mozambique. This cutting-edge facility will allow us to provide best in class services to our airline customers while supporting East Africa’s air cargo sector. This represents the next exciting step in Menzies’ cargo expansion strategy, which has seen us expand our footprint right across the globe,” said AlAnood AlSuwaidi, senior vice-president Cargo (MEAA) at Menzies Aviation.

The investment is expected to enhance our operational capabilities and contribution to the growth and competitiveness of the economy. (Image source: NDB)

The New Development Bank (NDB), an organisation created to mobilise resources for infrastructure and sustainable development projects in the BRICS and other emerging economies, has announced a R5bn (approx. US$278mn) loan agreement with Transnet, South Africa’s leading freight transport and logistics company

Transnet has faced consistent challenges over the last few years and has come under heavy criticism at times for operational issues with its ports and rail networks, equipment shortages, maintenance backlogs and beyond. However, the organisation has committed to addressing these past challenges, fostering integrity and enhancing efficiency and has received support in this endeavours, including from the African Development Bank.

NDB has become the latest to show support through an investment commitment that aims to modernise and improve the country’s freiht and rail sector.

Signed during NDB’s 9th Annual Meeting, the loan will be used enhance the efficiency and capacity of freight systems, while driving a rail network infrastructure renewal, locomotive overhauls and wagon fleet renewals. This programme is expected to restore freight rail volumes in South Africa, improving operational performance and reliability, and contributing to a sustainable future.

“We are delighted to partner with Transnet in this transformative initiative,” remarked NDB president, Dilma Rousseff. “This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa. By modernising the freight rail sector, we aim to facilitate more efficient logistics operations that will benefit the entire region and align with our goal of investing in a sustainable future.”

Transnet Group chief executive, Michelle Phillips, added, “This investment is important for Transnet, as we accelerate implementation of the Recovery Plan and economic reforms. The modernisation programme will enhance our operational capabilities and contribution to the growth and competitiveness of the economy. We are grateful for NDB’s support and look forward to a successful collaboration.”