Buchanan – ArcelorMittal Liberia (AML) is undertaking significant upgrades to the government-owned railway infrastructure as part of its expansion efforts, despite persistent misconceptions about its stance on shared rail usage. The company recently hosted more than two dozen journalists for a rail tour, allowing them to witness firsthand the ongoing improvements along the railway line.
By Gerald C. Koinyeneh
During the tour, journalists observed real-time infrastructure upgrades, including the construction of a new railway station in Buchanan and the installation of a digital monitoring system to track locomotive movements between the mining operations and the port city. These developments underscore AML’s commitment to modernizing Liberia’s transport network while addressing concerns over fair access to the railway.
Addressing Monopoly Concerns
The issue of railway access has sparked heated debate in Liberia, with accusations that AML is attempting to monopolize the rail corridor. However, the company has consistently reiterated its willingness to allow other mining firms to use the railway under a structured agreement that benefits the Liberian government and ensures fair business practices.
In 2021, Liberia’s House of Representatives rejected an amended Mineral Development Agreement (MDA) with AML over concerns that it contained monopolistic clauses. However, AML maintains that the MDA explicitly included provisions ensuring fair rail access. The agreement stated that if AML were found to be obstructing third-party rail use, the government could immediately revoke its operational control over the railway.
An independent investigation has found no evidence that AML has objected to any company using the railway. The stalling of third-party rail access, it appears, cannot be attributed to an AML-imposed blockade.
Commitment to a Multi-User Railway System
ArcelorMittal Liberia has historically aligned itself with the Liberian government’s vision of developing a fully functional, multi-user railway system along the Buchanan Corridor. To date, the company has invested more than $800 million in rail infrastructure, significantly increasing operational capacity.
As part of its commitment to shared railway access, AML has endorsed the User-Operator framework proposed in the Third Amendment to its MDA. This model, widely adopted in resource-rich countries like Australia, Brazil, and Canada, has also been successfully implemented in neighboring Guinea.
Under this framework, Liberia’s newly established Rail Authority will oversee railway operations, ensuring transparent and non-discriminatory access. The Rail System Operating Principles (RSOP), to which AML has agreed, will regulate standards, conduct inspections, and monitor compliance among all rail users.
Lessons from Guinea’s Model
ArcelorMittal points to Guinea’s bauxite mining sector as a prime example of a successful user-operator model. In Guinea, the government allows mining companies to invest in railway and port infrastructure while retaining operational control and providing shared access to other users. In return, these companies finance capital expenditures, allocate rail capacity, and contribute significantly to the national economy through taxes and royalties.
Under this model, mining firms operate the infrastructure they develop for up to 35 years while ensuring shared access for other users. AML argues that Liberia should adopt a similar approach to encourage foreign investment in infrastructure development. It warns that policies favoring external operators over established investors could deter future investment and slow economic progress.
Challenges in Regional Rail Collaboration
Despite recent discussions about transporting Guinean ore through Liberia, Guinea has historically resisted such proposals. For more than four decades, the country has opted to develop its own railway infrastructure rather than rely on Liberia’s transport network. With the completion of Guinea’s Trans-Guinea Railway, the likelihood of Guinean resources being exported through Liberia has diminished even further.
Given this backdrop, AML questions why any company would invest in Liberia’s railway and port infrastructure if the government intends to transfer management to a 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.
The Road Ahead
As Liberia navigates its future rail management policies, a critical decision lies ahead: Will the government embrace a model that attracts investment and fosters economic growth, or will it pursue policies that could deter future infrastructure development?
With AML’s substantial investments and commitment to a shared railway model, the outcome of this debate will shape the future of Liberia’s mining and transportation sectors for years to come.