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Liberia’s quest to transform its critical rail infrastructure is gaining momentum as a U.S.-backed consortium led by TSC Global and Railroad Development Corporation (RDC) has reaffirmed its commitment to upgrading and operating the Yekepa-Buchanan railway at no cost to the Liberian government. Sources within the government have confirmed the consortium’s readiness to deliver a fully funded solution that addresses both fiscal constraints and infrastructure challenges while ensuring fair access for all rail users. For years the Government owned rail between Yekepa and Buchanan has been monopolized by ArcelorMittal without any other company having access. That is about to change if the Boakai Administration follows through on the implementation of the President’s Executive Order 136, opening up the rail to multiple users.
This development represents a significant milestone for Liberia’s economy, aligning with the vision outlined in President Joseph Boakai’s Executive Order establishing the National Rail Authority (NRA) to promote transparency, efficiency, and multiuser access to national rail assets. With other companies such as Ivanhoe Atlantic (formerly HPX) poised to be one of the key users, this independent rail operation model holds the promise of unlocking billions of dollars in revenue, spurring economic growth, and enhancing the country’s infrastructure capacity. It is very likely that other companies, not just Ivanhoe Atlantic, will seek access to the all important rail to port infrastructure under an independent operator model that grants rail access to others and is not controlled and used only by ArcelorMittal.
A Visionary Offer with No Strings Attached
The consortium’s proposal, according to sources, addresses several critical needs for Liberia’s railway infrastructure. It requires no financial contribution, no sovereign guarantees, and no government-mandated agreements with third parties such as ArcelorMittal Liberia (AML), whose current concession gives it exclusive access to the railway for several more years. In other words, the Consortium will invest resources based on the marketability of the rail to multiple users without first demanding that AML or other users sign off taker agreements before investing. This according to GOL sources was something that AML demanded to demonstrate that the Consortium was financially capable. To the utmost surprise of some in Government who have been stalling progress on multiuser rail access, the Consortium, according to sources, requires absolutely no off taker agreements as preconditions for mobilizing its investment. This clears a major hurdle.
“Our consortium’s primary objective is to serve as the Independent Railway Operator for the Yekepa-Buchanan railway, ensuring equitable service for all users while introducing passenger services and training Liberians to fully operate the railway by the end of our agreement,” said a source familiar with the consortium’s commitments.
The consortium has assured the government that its operations will not disrupt AML’s existing rights under its Mineral Development Agreement (MDA). Instead, it plans to collaborate with AML and other stakeholders to address any concerns, creating a level playing field for current and future users. This assurance, sources say, is a crucial step in overcoming resistance from officials aligned with AML, who have been accused of stalling progress on multiuser rail access.
Proven Success and Tangible Benefits
TSC Global and RDC bring a wealth of experience to the table, having successfully upgraded and operated railways in Mozambique and Peru. In these countries, the consortium converted underperforming rail systems into revenue-generating assets, trained over 2,000 local workers, and created more than 5,000 direct and indirect jobs. Their track record demonstrates their capacity to replicate this success in Liberia, transforming the Yekepa-Buchanan railway into a self-sustaining infrastructure asset.
“This is more than just an upgrade,” said another government source. “It’s a comprehensive transformation of Liberia’s transportation infrastructure, making it safer, more efficient, and inclusive for both freight and passenger needs.”
The consortium has already secured funding commitments from multiple financial institutions, including the U.S. International Development Finance Corporation (DFC) and Dubai’s EXIM Finance, amounting to US$780 million. These funds will be deployed to rehabilitate and expand the railway, with detailed inspections and capacity studies set to begin early next year.
Ivanhoe Atlantic as a Key Player
Ivanhoe Atlantic, one of the proposed railway’s initial primary users, has presented a compelling fiscal opportunity for Liberia. According to briefing notes obtained from government sources, the company has pledged significant payments under its draft Access and Concession Agreement. These include:
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An upfront payment of US$25 million upon ratification, in addition to US$37 million already paid.
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US$10 million in support for the National Rail Authority.
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Rail access fees of US$2.10 per tonne, projected to generate over US$1.4 billion in revenue for Liberia over the project’s lifespan.
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An estimated US$600 million in other taxes and fees apart from the access fees for haulage.
In its first phase, Ivanhoe Atlantic plans to transport 2–5 million tonnes of iron ore annually, generating an estimated $40–50 million in access and border fees. By the full operation phase within six years, the company expects to move 30 million tonnes per year, contributing $53 million annually in rail access fees. These figures underscore the transformative economic potential of an independent, multiuser rail system.
“Liberia stands to gain not just in direct revenue but in broader economic growth,” a government economist explained. “This kind of infrastructure development will attract more investors, create jobs, and position Liberia as a key player in the global mining supply chain.”
Breaking Free from Monopoly Control
For decades, AML has controlled the Yekepa-Buchanan railway under agreements that limit third-party access, creating essentially a monopoly. Critics argue that AML’s exclusive rights have stifled competition, delayed infrastructure upgrades, and blocked new entrants into Liberia’s mining sector. There are reports that billions of tonnes in iron ore deposits remain trapped in the Corridor between Yekepa to Buchanan because other investors holding exploration licenses do not have any access to the railway under the AML monopoly.
President Boakai’s Executive Order and the NRA’s establishment are aimed at reversing this trend by creating a transparent, multiuser framework. However, resistance from certain officials allegedly aligned with AML has slowed progress. Sources suggest that these officials have attempted to delay negotiations with the TSC-RDC consortium to protect AML’s interests, a move that undermines Liberia’s long-term economic goals.
“This is about more than one company,” a source close to the negotiations stated. “It’s about Liberia’s ability to take control of its infrastructure and ensure it benefits the entire nation, not just a single corporate entity.”
A Path Forward: Collaboration and Accountability
Despite these challenges, the TSC-RDC consortium remains optimistic about the future. In recent communications with government officials, the consortium reiterated its commitment to funding capacity studies, addressing stakeholder concerns, and ensuring equitable access to the railway.
As part of their next steps, the consortium has proposed a follow-up meeting in January 2025 to review maintenance records and conduct site inspections of the railway. These efforts aim to build trust and establish a clear path toward finalizing an Independent Rail Operator agreement.
“The consortium’s willingness to engage constructively and their commitment to Liberia’s development are commendable,” said a senior government official. “This is the kind of partnership we need to move the country forward.”
The Stakes for Liberia
Liberia’s railway infrastructure represents more than a transportation network—it’s a cornerstone of the nation’s economic future. The proposed Independent Rail Operator regime offers a rare opportunity to modernize this critical asset, attract investment, and unlock billions in revenue.
With the TSC-RDC consortium and Ivanhoe Atlantic ready to deliver on their commitments, the Boakai administration has the chance to redefine Liberia’s infrastructure landscape. However, achieving this vision will require bold leadership, transparency, and a steadfast commitment to national interests.
For now, the world is watching as Liberia navigates this pivotal moment. Will it embrace the opportunities before it or allow entrenched interests to derail progress? The answer will shape the country’s future for generations to come.
