— AML’s offer to settle SIG’s US$50M arbitration claim equals less than 3% of the projected revenue from multiuser rail access.
EDITOR’s NOTE: This is Part 2 of a multi-series to portray how officials within the corridors of power are working alongside AML to shortchange Liberia.
Liberia’s Government is navigating a defining moment in its economic history, caught between ArcelorMittal Liberia’s (AML) push for exclusive control of the Yekepa-Buchanan railway and the broader economic benefits of a multiuser rail system. At stake is not just a US$50 million arbitration claim from Solway Investment Group (SIG) but also the nation’s ability to manage its critical infrastructure for long-term prosperity. The outcome will determine whether Liberia prioritizes immediate financial relief or a transformative model of shared economic growth.
The multiuser rail model represents a golden opportunity for Liberia to unlock billions of dollars in revenue. One of several companies eager to access the Yekepa-Buchanan railway has projected over US$1.6 billion in rail user fees for Liberia over the next 25 years. These projections do not include additional revenue streams from port charges, job creation, and regional economic stimulation, making the multiuser approach a cornerstone of sustainable development.
By comparison, AML’s offer to settle SIG’s US$50 million arbitration claim is a one-time payment—less than 3% of the projected revenue from multiuser rail access. Critics argue that accepting AML’s exclusivity demand in exchange for this short-term relief would amount to a betrayal of national interest, leaving Liberia locked into a monopoly that limits economic potential. The Ministry of Mines and Energy (MME), in a May 2022 letter to AML, stated, “National infrastructure, especially the rail system, must remain open to multiple users to ensure equitable access and maximize its economic benefits.”
AML’s hostile approach to competitors
The controversy is not just about economic choices; it is also about the precedent AML has set through its interactions with competitors along the rail corridor. In the case of Solway Mining Incorporated (SMI), a subsidiary of SIG, AML’s actions have been called into question. Documents from the MME confirm that the area granted to SMI under a Class A License was legally acquired and should have been respected. Instead, AML allegedly bypassed SMI and paid the license fee directly to the Government of Liberia (Weah Administration), ignoring industry norms of negotiation and collaboration.
This behavior prompted SIG to file a US$50 million arbitration claim, accusing the government of failing to protect its rights. Solway has since offered to settle for US$30 million—a fraction of the projected annual revenue from a multiuser system—but AML has made its settlement offer contingent on exclusive rail control. Critics argue that AML’s tactics amount to economic bullying, undermining competition and creating a dangerous precedent for how Liberia manages its resources.
“Allowing AML to monopolize the rail system would send a chilling message to other investors,” said an insider familiar with the negotiations. “It signals that Liberia is willing to sacrifice fairness and competition in favor of short-term solutions that benefit a single company.”
Agents of betrayal
The debate over rail access has revealed troubling allegations of certain government officials’ complicity in AML’s monopoly ambitions. There are telltale signs that certain officials within the Boakai Administration are actively working to advance AML’s agenda, even at the expense of Liberia’s broader economic interests. A certain member of the Interministerial Concessions Committee (IMCC) has been accused of undermining efforts to establish a multiuser rail system by concocting false documents and slowing down multiuser rail access agreements that could see Liberia start to reap tens of millions of USD in new revenue in the near term. Given that President Boakai has already signed an Executive Order #136 — an extension of Executive Order #112 — pending passage of a bill already submitted to the Legislature for the passage of an Act establishing the National Rail Authority to govern multiuser rail access; why would any government official want to undo a process that could otherwise accelerate Liberia revenue drive to its billion-dollar target?
Even in the Legislature, Speaker J. Fonati Koffa, a vocal advocate for the multiuser model, has publicly opposed AML’s push for exclusivity. His leadership has made him a target of political intrigue, with factions within the legislature, known as the “Majority Bloc,” reportedly seeking AML’s financial support to unseat him. “It is unacceptable for public officials to prioritize corporate interests over the nation’s welfare,” Koffa said during a recent legislative session. “Liberia’s rail system must serve the people, not a single company.”
Broader economic and governance implications
A multiuser rail system offers Liberia a chance to diversify its economy, attract foreign investment, and foster regional development. Beyond the multiple billions in projected rail user fees, the system would create jobs, reduce operational inefficiencies, and position Liberia as a regional logistics hub. According to the MME’s August 2022 letter to AML, “A multiuser framework aligns with international best practices and supports Liberia’s long-term economic goals.”
By contrast, AML’s rail operations have been plagued by inefficiencies and financial losses. The company’s 2023 annual report noted that “railway operations have consistently underperformed, requiring substantial financial support to maintain functionality.” Critics argue that granting AML exclusive control would exacerbate these issues, locking Liberia into a monopolistic arrangement with limited economic benefits.
The Extractive Industries Transparency Initiative (EITI) Act of 2009 underscores Liberia’s commitment to transparency and accountability in resource management. However, the opaque nature of the current negotiations has raised concerns about whether GOL is upholding these principles. “The people of Liberia deserve to know the terms of these deals and how they will impact the nation’s future,” said a governance expert familiar with the case. “This level of secrecy undermines public trust and jeopardizes Liberia’s standing as a responsible resource manager.”
A defining moment
As the Boakai administration weighs its options, the stakes have never been higher. On one hand, AML’s US$50 million bailout offer provides immediate relief, but it comes at the cost of surrendering control over a critical national asset. On the other hand, embracing a multiuser rail system represents a long-term investment in Liberia’s economic sovereignty and prosperity.
For Speaker Koffa and other advocates of the multiuser model, the choice is clear. “Liberia’s rail infrastructure is not just a tool for mining companies; it is a lifeline for our economy and a symbol of our independence,” Koffa stated. “We must protect it from monopolistic control and ensure that it benefits all Liberians.”
The decision will have far-reaching consequences, shaping Liberia’s economic trajectory for decades. By prioritizing fairness, transparency, and shared prosperity, the GOL has an opportunity to redefine its approach to resource management, boost investor confidence and secure a brighter future for its people. The question remains: Will Liberia seize this moment to chart a new course, or will it succumb to the short-term allure of AML’s offer?
