Overview
The Benguela Railway (Caminho de Ferro de Benguela, or CFB) is a 1,344-kilometer rail line connecting the Atlantic port of Lobito in Benguela province to the border of the Democratic Republic of Congo (DRC) at Luau. Originally built in the early twentieth century and operational by 1929, the CFB was one of southern Africa’s most important trade corridors before being severely damaged during Angola’s civil war (1975-2002). Its rehabilitation is the centerpiece of the Lobito Corridor infrastructure initiative.
Route and Specifications
The CFB traverses Angola from west to east through some of the country’s most resource-rich territory:
| Segment | Details |
|---|---|
| Western terminus | Port of Lobito, Benguela province |
| Eastern terminus | Luau, Moxico province (DRC border) |
| Total length | ~1,344 km |
| Gauge | Cape gauge (1,067 mm) |
| Key provinces crossed | Benguela, Huambo, Bié, Moxico |
| Cross-border connection | Links to DRC’s Société Nationale des Chemins de Fer du Congo (SNCC) at Dilolo |
At Luau/Dilolo, the CFB connects to the DRC rail network, which extends to the copper and cobalt mining regions of Katanga (Haut-Katanga and Lualaba provinces). This cross-border connectivity is the strategic rationale for the Lobito Corridor project.
Rehabilitation and Investment
The CFB was rebuilt between 2006 and 2014 with Chinese financing and construction, at an estimated cost of over $1.8 billion. The rehabilitation restored the track, bridges, stations, and rolling stock along the full route. However, operational capacity remained limited after reconstruction, with freight volumes well below the line’s historical potential.
The Lobito Corridor initiative, backed by approximately $1.6 billion in commitments from the United States, European Union, and development finance institutions, aims to upgrade the CFB to modern standards capable of handling significant mineral freight volumes. Key planned improvements include:
- Upgraded signaling and train control systems
- Additional rolling stock and locomotives
- Expansion of the Port of Lobito’s mineral handling capacity
- Potential dual-gauging or new standard-gauge sections for interoperability
Economic and Strategic Significance
The CFB’s strategic importance is driven by the global demand for critical minerals — particularly copper and cobalt from the DRC — that are essential for electric vehicles, battery storage, and renewable energy systems. The Lobito Corridor offers a shorter and potentially more cost-effective route for DRC mineral exports to reach Atlantic markets compared to the current southern routes through Zambia and South Africa or the eastern route through Tanzania.
For Angola’s economy ($115.2 billion GDP, 2024), the CFB represents:
- Transit revenue: Fees from mineral freight traffic transiting Angolan territory
- Port development: Growth of Lobito as a regional logistics hub
- Agricultural access: Improved connectivity to Angola’s interior farming regions, supporting economic diversification and projects like Aldeia Nova
- Regional integration: Strengthening Angola’s position in southern African trade networks
Investor Considerations
The Benguela Railway is not a listed security, but its development trajectory is critical for investors assessing Angola’s infrastructure-driven growth potential. The Lobito Corridor’s progress influences sovereign creditworthiness (Angola rated S&P B- / Moody’s B3 / Fitch B-), non-oil GDP growth prospects, and the investment case for logistics and mining-adjacent sectors. Investors should monitor project milestones, freight volume data, and the operational concession arrangements being negotiated for the corridor.