By: Nghiinomenwa-vali Hangala
The Lobito Corridor, anchored by the rehabilitated Benguela Railway and operated by the LAR consortium (comprising Mota-Engil, Trafigura, and Vecturis), offers reduced transit times and costs for DRC and Zambia.
It is positioned to transport critical raw materials (CRMs) and support EV battery manufacturing hubs.
Efforts to expand the Lobito Corridor eastwards to the Indian Ocean depend on its integration with the Tanzania-Zambia Railway Authority (TAZARA). The Authority acknowledged this in its 2025 annual report.
TAZARA, built in the 1970s by China to link Zambia’s Copperbelt with Tanzania’s Dar es Salaam, has experienced decades of underinvestment and low utilisation.
China, which holds significant stakes in the CRM mines across the region, has also secured control over the TAZARA railway, providing an alternative trade route to the East African coast.
For Namibia, these corridors pose a strategic threat to cargo throughput at Walvis Bay, as improved transit times and lower costs could encourage shippers to prefer Lobito and Dar es Salaam over Walvis Bay.
In response, Namport must accelerate operational improvements at the ports and continue advocacy to enhance corridor efficiency, along with the long-overdue development of the Grootfontein to Katima Mulilo and Trans-Kalahari rail links, to remain competitive.
South Africa’s Transnet Port Terminals (TPT), the state-owned terminal operator managing 16 terminals, has made notable strides in stabilising and improving port performance following years of inefficiency.
In FY2024/25, volume targets for Namport were exceeded at five major terminals and the authority has shifted focus to asset modernisation and operational efficiency.
Key initiatives include the redesign of loading and handling cycles to improve turnaround times.
Secondly, new equipment deployments for high-volume seasons (e.g. citrus exports) include fleet refurbishment, automation adoption, and enhanced data analytics.
The Port Authority also plans a N$3.4 billion capital budget to support container yard expansion, rail upgrades, and bulk/agricultural terminal improvements.
For Namport, regional improvements in the South African ports may lead to the loss of cargo.
Previously, South Africa’s underperformance increased the necessity for Namport to strengthen its competitiveness through, among other measures, enhanced efficiencies and cost reductions.
