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ArcelorMittal Liberia advances railway upgrades amid shared access debate

by Lennart Dodoo
April 29, 2025
in Business News
Reading Time: 2 mins read
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AML commits to US$800m rail overhaul, affirms open access under 2021 MDA

BUCHANAN — ArcelorMittal Liberia is undertaking major upgrades to the government-owned railway system, moving ahead with its expansion efforts while attempting to counter persistent misconceptions about its stance on shared rail usage.

The company recently opened its operations to more than two dozen journalists, offering a rare tour of its railway facilities. Reporters observed active improvements along the line, including the construction of a new railway station in Buchanan and the installation of a digital monitoring system to track locomotive movements to and from the port city.

The development comes amid a national debate over railway access, with accusations that the steel giant is seeking to monopolize the rail corridor. Company officials, however, continue to emphasize their openness to a shared system under a structured agreement that benefits the Liberian government and promotes fair business practices.

In 2021, the House of Representatives rejected an amended Mineral Development Agreement with ArcelorMittal, citing concerns over potential monopolistic control. But the company maintains the amended agreement included a clause allowing the government to remove ArcelorMittal as operator if it attempted to block other users.

An independent investigation found no evidence that ArcelorMittal has prevented third-party access to the railway. Rather, delays in multi-user rail operations appear unrelated to any direct action by the company.

ArcelorMittal says it has invested more than $800 million to rehabilitate and expand the railway, positioning it to serve as a multi-user corridor for the Buchanan line. The company has also endorsed the User-Operator framework outlined in the Third Amendment to its MDA—a model widely used in Australia, Brazil, and neighboring Guinea for bulk commodity transport.

As part of the agreement, ArcelorMittal accepted the Liberian government’s proposed Rail System Operating Principles (RSOP), which aim to guarantee transparent and non-discriminatory rail access. A newly created Rail Authority will supervise standards, inspections, and user compliance under the model, with the multi-user system taking immediate effect.

Citing Guinea’s mining sector as a success story, ArcelorMittal argued that Liberia should replicate the user-operator model. In Guinea, mining companies invest in rail and port infrastructure, operate those assets, and guarantee access for other users, while the country benefits through taxes, royalties, and infrastructure expansion.

“Companies who invest heavily should be encouraged, not undermined,” an ArcelorMittal spokesperson said during the tour. “Liberia must provide an environment that secures investor confidence, especially when it comes to long-term infrastructure commitments.”

The company also pointed to recent developments in Guinea, where the completion of the Trans-Guinea Railway limits the likelihood that Guinean ore will transit through Liberia, despite years of negotiations.

Against that backdrop, ArcelorMittal officials questioned the rationale behind shifting management control of Liberia’s railway infrastructure to an external operator, warning that such a move could deter future investors.

Tags: ArcelorMittal LiberiaBuchanan railwayforeign investment in LiberiaLiberia infrastructureLiberia Rail AuthorityMineral Development Agreementmulti-user railwayRSOPuser-operator model
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Lennart Dodoo

Lennart Dodoo

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