By: Edmund C. Gbarwee, nimbad9tv2018@gmail.com,  +231778070604

ArcelorMittal Liberia (AML) is making groundbreaking investments in Liberia’s railway infrastructure, spearheading upgrades to the government-owned railway as part of its ambitious expansion. Despite persistent misconceptions about its stance on shared rail usage, AML remains committed to ensuring an efficient, multi-user railway system that benefits Liberia’s economy.

A Firsthand Look at AML’s Railway Investments

Recently, AML granted more than two dozen journalists unprecedented access to its facility, allowing them to witness, in real-time, the extensive improvements along the railway corridor. These enhancements include the construction of a new railway station in Buchanan and the installation of a cutting-edge digital monitoring system to track locomotive movements to and from the port city. This strategic investment underscores AML’s dedication to modernizing Liberia’s transport network.

Debunking the Monopoly Narrative

The use of Liberia’s railway infrastructure has remained a highly debated issue, with accusations that AML is attempting to monopolize the rail corridor. However, a thorough investigation into the matter reveals that AML has not objected to any company utilizing the railway. Instead, delays in third-party rail access are attributable to broader regulatory and infrastructural challenges, not AML’s interference.

In 2021, Liberia’s House of Representatives rejected an amended Mineral Development Agreement (MDA) with AML over monopoly concerns. However, what remains largely unacknowledged is that the very MDA in question contained a safeguard clause. This clause explicitly granted the Liberian government the right to revoke AML’s operator status should the company be found to be restricting third-party access.

A Commitment to a Multi-User Railway System

ArcelorMittal Liberia has continuously aligned with the Liberian government’s vision of developing a fully functional, multi-user railway system along the Buchanan Corridor. The company has already injected over $800 million into railway infrastructure, dramatically boosting operational efficiency and capacity.

To reinforce its commitment to equitable rail access, AML has endorsed the User-Operator framework proposed in the Third Amendment to its MDA. This widely adopted model, used for bulk commodity transport in mining powerhouses such as Australia, Brazil, and Canada, has also been successfully implemented in neighboring Guinea.

Additionally, AML has agreed to Liberia’s Rail System Operating Principles (RSOP), a framework designed to ensure transparency, non-discriminatory operations, and fair access. Under this system, a newly established Rail Authority will regulate standards, conduct inspections, and monitor user compliance, ensuring a level playing field.

Lessons from Guinea: A Model for Liberia

AML points to Guinea as a prime example of a successful user-operator model. In Guinea’s bauxite sector, the government permits mining companies to invest in railway and port infrastructure while retaining operational control and ensuring fair access to other users. These companies, in return, finance capital expenditures, manage rail capacity, and contribute significantly to national revenue through taxes and royalties.

Under Guinea’s framework, companies operate the infrastructure they develop for 35 years while guaranteeing shared access an approach AML believes Liberia should emulate to foster foreign investment in critical infrastructure. AML warns that failing to adopt this model could deter investors and jeopardize Liberia’s economic prospects.

The Future of Rail Infrastructure in Liberia

Despite discussions surrounding the transportation of Guinean ore through Liberia, history suggests that Guinea has consistently resisted such proposals for over four decades. Now that Guinea has completed the Trans-Guinea Railway, there is little reason to believe that it will suddenly shift course and opt to export its resources through Liberia instead.

Given this backdrop, AML questions the viability of any investment in Liberia’s railway and port infrastructure if the government intends to take control and transfer management to an external third-party operator. The company argues that Liberia must learn from Guinea’s example ensuring a sustainable, investor-friendly environment while securing long-term economic benefits from its natural resources.

A Defining Moment for Liberia’s Economic Future

As Liberia navigates critical discussions on rail management, the nation faces a pivotal decision: Will the government embrace a model that attracts investment, enhances infrastructure, and fosters economic growth? Or will it pursue policies that risk discouraging future development and driving investors away?

AML has made its stance clear it supports a shared, well-regulated railway that upholds fair business practices while ensuring that Liberia reaps the full benefits of its resources. The question is whether the government will seize this opportunity to create a robust, investor-friendly transportation framework or risk undermining the country’s economic trajectory.