AD Ports Group, a leading facilitator of global trade, has initiated operations at the Luanda terminal, marking its entry point to manage and develop Angola's largest multipurpose port and logistics business. Collaboratively working with local partners Unicargas and Multiparques, AD Ports Group will steer the progress of the Noatum Ports Luanda Terminal, pivotal for enhancing regional trade connections.
This strategic venture is encapsulated under a 20-year concession agreement with the Luanda Port Authority, inked in April 2024, which sees the company committing to invest approximately USD 250 million by 2026 for terminal modernization and the establishment of Noatum Unicargas Logistics. This joint venture will bolster local, regional, and global freight forwarding services.
“AD Ports Group is positioned to capture the growth in Angola’s container volumes, which are forecast to rise on average by 3.3 percent annually over the next decade,” noted Mohamed Eidha Al Menhali, Regional Chief Executive for AD Ports. This projection aligns with efforts to streamline cargo handling at the Port of Luanda which handles 76 percent of Angola’s container and general cargo traffic.
Angola's geographical location serves as both boon and challenge. The port's proximity to landlocked neighbors like the Democratic Republic of the Congo and Zambia enhances trade potential; yet, logistical bottlenecks remain. Notably, AD Ports Group will implement advancements enabling it to accommodate Super Post Panamax vessels, enhancing its global trade connectivity.
Traxtion, Africa's leading private freight rail company, is also making significant strides within Angola’s infrastructure. Following recent contracts, Traxtion is set to improve the Lobito Rail Corridor's freight transport capabilities, solidifying its regional foothold. The CEO of Traxtion, James Holley, highlighted the positive impacts of this expansion, stating, “This contract aligns perfectly with Traxtion’s vision of reshaping African freight logistics.”
Focusing on locomotive leasing to Lobito Atlantic Railway, Traxtion aims to address freight transport vulnerabilities, particularly evident at Lobito’s limited capacity. Here, larger locomotives encounter challenges, requiring cargo trains to be split for loading, which hinders efficiency. The deployment of G18U shunting locomotives by Traxtion is expected to streamline operations at the port, allowing quicker drop-offs and facilitating more effective cargo movements.
With new equipment upgrades and training for local personnel, Traxtion is laying the groundwork for sustainable rail operations. The first locomotive's arrival is imminent, with subsequent modifications planned for vehicles before leveraging their capabilities mid-2025.
The broader impact of these infrastructural developments cannot be overstated. The collaboration between AD Ports Group and the Angolan government is projected to create thousands of local jobs, fueling economic opportunities through increased trade activity. Ricardo Daniel Sandão Queirós Viegas D’ Abreu, the Angolan Minister of Transport, remarked, “Through the strategic partnership with the AD Ports Group...we will transform the Port of Luanda...significantly enhancing our logistical capabilities.” This outlook resonates strongly within the framework of investing about USD 250 million, with expectations of stimulating local economic growth.
Overall, the continued strategic investments by both AD Ports Group and Traxtion reflect not only the accelerating economic transformation of Angola but also its potential role as a central hub within the southern African trade network. The infrastructure improvements aim to bolster connectivity and logistics, leading to sustained growth across regional trade routes.
Such enhancements are likely to attract additional investments and partnerships, both locally and internationally. With AD Ports' comprehensive operational upgrades and Traxtion's rail enhancements, Angola stands poised to emerge as a key player in the African logistics market.
The confluence of rail and port infrastructure development is set to catalyze Angola's economic prospects, enabling it to navigate logistical challenges and embrace the burgeoning opportunities presented by regional trade dynamics. Commencing operations at Luanda Terminal marks not just another investment milestone; it heralds the dawn of a transformative era for Angola's economic and logistical framework.