ArcelorMittal Liberia (AML) refutes allegations of obstructing other companies’ access to the Yekepa-Buchanan railway, emphasizing its support for a multi-user system governed by transparent government regulations. The company highlights its pivotal role in restoring the railway, which was non-operational before AML’s arrival. As part of its agreement with the Liberian government, AML invested in the complete rehabilitation and ongoing maintenance of the railway, facilitating mining exports and other commercial activities. The existing framework, the Rail System Operating Plan, endorsed by AML, mirrors models employed globally in countries like Australia, Brazil, and Canada, ensuring equitable access while AML continues its operational and maintenance responsibilities.
AML underscores the economic prudence of maintaining the current arrangement, arguing that commissioning a new railway operator would impose unnecessary financial burdens on the Liberian government, diverting crucial resources from essential public services like education, healthcare, and infrastructure development. Having already invested $3.5 billion in Liberia, AML expresses its willingness to manage the railway without profit, ensuring affordable access for all users. This commitment to cost-effective operation aims to foster economic growth and prevent undue financial strain on the national budget.
The company anticipates substantial economic benefits for Liberia contingent on the approval of its expansion plans. These benefits encompass a significant increase in iron ore shipments, from 5 million to 20 million tons annually, generating substantial revenue streams. The projected annual contribution to the Liberian government is estimated at $200 million, with total revenue projections reaching between $3 billion and $4 billion, depending on market conditions. Moreover, the expansion is expected to create 2,000 direct jobs, along with numerous indirect employment opportunities within the mining support sector.
AML’s investment in the railway’s revitalization and its commitment to operating it without profit signifies a substantial contribution to Liberia’s infrastructure and economy. The multi-user framework, enshrined in the Rail System Operating Plan, aims to ensure fair and efficient access for all stakeholders while optimizing resource allocation and preventing unnecessary expenditure. By drawing parallels with similar models in other resource-rich nations, AML emphasizes the practicality and effectiveness of the existing system.
The projected economic benefits associated with AML’s expansion underline the potential for significant growth in Liberia’s mining sector and its broader economy. The substantial increase in iron ore exports, coupled with the creation of thousands of jobs, promises to bolster national revenue and improve employment prospects. Moreover, the company’s commitment to a non-profit railway operation ensures that these benefits are accessible to a wider range of businesses and contribute to sustainable economic development.
Advocates for AML’s continued involvement in the railway’s operation argue that prioritizing the company’s expansion offers a more pragmatic and economically sound approach compared to establishing a new, potentially costly, operational framework. They contend that maximizing the returns from AML’s existing investment and leveraging its expertise in railway management represents a more prudent use of public funds, allowing for greater investment in critical public services and long-term economic growth. This approach, they argue, aligns with the best interests of Liberia and its citizens, promoting sustainable development and maximizing the potential benefits of the nation’s resources.
