Exporters in South Africa and neighboring countries are increasingly opting for alternative routes to bypass South Africa’s inefficient rail and harbor logistics. Experts suggest that this shift is driven by the need to ensure timely and efficient transportation of products to markets.
One such alternative route is the Lobito Atlantic Railway corridor, which recently facilitated the transportation of copper from the Kamoa-Kakula copper fields in the Democratic Republic of Congo (DRC) to Angola’s Lobito harbor.
Traditionally, copper exports from the Kamoa-Kakula copper fields were trucked to Durban, South Africa, a journey that takes approximately 25 days. However, the new rail corridor reduced the transportation time to just eight days.
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The Invanhoe mining group, which operates the copper mine, highlights that the rail corridor not only reduces costs but also significantly lowers carbon emissions. The Lobito Atlantic Railway stretches 1,289km from Lobito to the Angolan border with the DRC, and then extends a further 450km to Kolwezi in the DRC.
The successful shipment of 1,110 tons of copper concentrate via the Lobito Atlantic Railway is part of a trial tonnage of 10,000 tons. This trial will provide valuable information on greenhouse gas savings, transit times, operating costs, and other factors.
Currently, the mine exports 90% of its copper concentrate using road transport to the harbors of Durban and Dar es Salaam in Tanzania. Smaller volumes are transported through Beira in Mozambique and Walvis Bay in Namibia.
The shorter distance to Lobito and the faster and more energy-efficient rail transport make it an attractive alternative. The Angolan section of the railway line was developed by a private consortium in a concession agreement with the Angolan government.
The consortium invested approximately $450 million in the project, supplying over 1,500 wagons and 35 locomotives. An additional $100 million was invested in upgrading the line on the DRC side.
Transport economist Professor Jan Havenga suggests that the Angolan and DRC governments may have expedited the project’s execution due to the logistics crisis in South Africa.
South Africa’s neighboring countries are actively seeking alternatives to South African export routes. Hugo Pienaar, chief economist of Minerals Council SA, emphasizes that South Africa cannot assume that its neighbors will continue to use its export routes while it experiences logistical challenges.
The inefficiency of South African rail and harbor operations has prompted neighboring countries to explore alternative routes. Copper exports from the DRC, for example, are increasingly being diverted to Dar es Salaam and Beira, while manganese and chrome exports that previously used Richards Bay are now going through Maputo.
Mike Walwyn, chair of the Cape Town Chamber of Commerce harbor liaison forum, estimates that copper exports from neighboring countries constitute about 5% of all exports through Durban.
While this may not seem significant, the trend highlights the increasing preference for alternative routes. Walwyn suggests that frustration with exports through South Africa has likely prompted the execution of plans for the Lobito corridor.
He also notes that citrus producers along the Orange River are opting to use the Walvis Bay harbor instead of Cape Town, despite the increased distance, due to the potentially catastrophic impact of delays on their perishable products.
Transport economist Professor Jan Havenga emphasizes the need for South Africa to focus on the recovery of its rail system. He believes that the development of east-west corridors in Africa, such as the Lobito corridor, is a positive move.
Havenga argues that the current logistic system in sub-Saharan Africa, which primarily relies on north-south routes, is not configured correctly. He suggests that the east-west corridors, linking Lobito with the Port of Nacala and other planned routes, will be more efficient and beneficial for trade in the region.
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