Nyei, a respected Liberian engineer based in Germany, has warned that indecision and stagnation over the railway’s future could have long-term consequences for the country’s economic prospects.
Liberia’s railway corridor dispute between ArcelorMittal Liberia (AML) and High-Power Exploration (HPX) has sparked national concern, with engineer Muniru Nyei calling for decisive leadership in handling the matter.
Nyei, a respected Liberian engineer based in Germany, has warned that indecision and stagnation over the railway’s future could have long-term consequences for the country’s economic prospects.
In a recent statement, Nyei pointed out that the ongoing challenges with the ArcelorMittal and HPX railway corridor, along with delays in forming the National Railway Authority team, highlight a need for decisive leadership on important national issues.
He stressed that the railway project has the potential to attract significant capital investment, create jobs for Liberia’s youthful population, and stimulate economic growth. However, instead of bold, strategic decision-making, Nyei said the country is witnessing indecision and stagnation.
Nyei believes Liberia cannot afford to sit back and just pray, urging authorities to engage real qualified subject-matter experts and industry specialists to analyze and resolve the issues. In his view, the country’s future prosperity depends on the decisions made today.
The Background: AML-HPX Railway Dispute
While Nyei did not take a position on which company should operate the railway, the dispute stems from conflicting interests between AML and HPX over who should manage Liberia’s Buchanan- Yekepa commercial railway.
ArcelorMittal Liberia (AML) has been the sole user-operator of the railway since 2007, rehabilitating and maintaining the infrastructure after it was left in disrepair by Liberia’s civil war. The company has invested over $800 million in the railway and is currently negotiating a new Mineral Development Agreement (MDA) with the Liberian government to expand its operations and increase railway capacity.
AML has expressed willingness to allow third-party users, including HPX, to transport minerals via the railway while maintaining its role as the operator at no cost to the government.
HPX, a Guinean mining company, wants to transport iron ore from Nimba, Guinea, through Liberia to the Port of Buchanan. However, HPX insists that AML should not be the operator. Instead, HPX has advocated for a new independent operator—a move that the Liberian government appears to be considering.
Unlike AML, which has offered to continue operating the railway without financial burden to the government, the proposed new operator would require government payment, raising questions about the economic implications of such a decision.
While Nyei did not endorse a particular resolution to the dispute, his call for qualified experts to analyze and resolve these issues reflects growing concern over the government’s handling of the matter.
Liberia stands at a crossroads: Should it continue with AML as the operator, ensuring stability and cost-free operation, or should it introduce a new operator, requiring government funding?
Nyei’s warning against indecision and stagnation serves as a reminder that Liberia’s economic future depends on making informed, strategic choices that protects existing investments as an opportunity for bringing new ones.
Many industry analysts have argued that AML almost remains the operator of the rail which others are allowed to use as it makes no real economic sense to bring in the new operator at the demand of HPX who is Ming Guinean ore and is yet to get approval to move ore through Liberia.
They emphasize that ArcelorMittal is a Liberian investment where the government holds shares and has representatives on its board so it must remain the operator.
Many are still gripping with the rationale behind HOX unwavering demand to remove ArcelorMittal has operator when HPX and its subsidiary in Liberia Ivanhoe have made no investing in the rail line and it would be a betrayal where the government to remove AML as operator on HPX’s demand.
