The government of Gabon is planning to establish a railway corridor linking the Belinga iron ore project in the country’s northeast to a proposed port at Mayumba on the southern Atlantic Ocean coast.

In early April, a meeting was held between Minister of Mines Gilles Nembe and a delegation of South African and German investors interested in the scheme, as well as representatives of the African Export-Import Bank (Afreximbank). The lender is set to finance technical, legal and financial studies for the project.

The potential investors include Thelo DB, a railway company formed through a partnership between African industrial group Thelo and Deutsche Bahn subsidiary DB E&C. Thelo DB signed a memorandum of understanding (MoU) with Afreximbank in November 2022 to cooperate on the development and operation of railways in Africa.

The firms hope to initially take part in the feasibility studies followed by the financing of the project, said Ibrahim Bagarama, head of Afreximbank’s Central Africa mission, after the meeting.

Minister Nembe has specified that the railway must have two tracks, unlike the single-track Setrag-operated Transgabonais railway, which runs for 650km across the country from Franceville in the southeast to the Port of Owendo in the northwest. It should also have a service track to allow for better maintenance, and open access for all mining operators, freight transporters and passenger services.

The financial sustainability of the railway will be based on the transportation of minerals and the presence of a deepwater port at Mayumba is essential for the viability of the scheme. The total investment required is estimated at US$5-10 billion.

The Belinga-Mayumba route has been chosen for the stability of the ground; the alternative Belinga to Port Gentil route is dotted with water bodies which would complicate railway activity, while the ruled-out Ouanga-Wonge reserve route would cause massive destruction of biodiversity.

The Belinga iron ore project is being developed by Ivindo Iron, a joint venture of Australia's Fortescue Limited (72%), Abu Dhabi-incorporated African Transformation and Industrialisation Fund (18%) and the Gabonese government (10%).

The construction of the Mangali deepwater port at Mayumba is being studied as part of the Grande Mayumba Programme, which involves consolidating and developing a forest land area of 631,100 hectares and a marine area of 260,900 hectares in the Nyanga province of southern Gabon.

The Grande Mayumba Programme is being developed by Grande Mayumba Development Company (GMDC), a public-private partnership between the Gabonese government and the London-based African Conservation Development Group (Afcondev). It will involve investment of more than US$200 million in commercial activities and infrastructure over the next few years. Other components of the initiative include timber processing, agribusiness, fisheries and eco-tourism.

GMDC plans to commence the construction of port and logistics facilities under phase one of the new Mangali port outside Mayumba town in 2024, having signed a public service port convention with the national port authority OPRAG in 2021.

Phase 1 includes building a 130-metre quay supporting vessels with a draft of 3 metres, barges and landing craft. Phase 2 involves expanding the quay to more than 300 metres, providing support for ocean-going barges, with the loading of ocean-going vessels carried out at a mooring point located in deep waters offshore.

Subsequent phases for the port have yet to be fully defined, although planning is under way to include a minerals terminal, storage area and a 4,000-tonne-an-hour stacker reclaimer and conveyor system for loading ocean-going ships.

The port infrastructure will initially cater to the needs of the agriculture, mining and oil sectors already established in the region. The facility is designed to function as a hub that enhances supply chain efficiency for southern Gabon, offering a viable alternative to road transport.

Concurrently, GMDC is developing an industrial zone behind the port spanning up to 400 hectares. This zone is intended to accommodate industrial, logistics and commercial facilities, fostering anticipated development in the Nyanga province and southern Gabon.