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Home Editorial

Handing Liberia’s Railway to an Untested Operator is an Economic Disaster in the Making

by The Liberian Investigator
March 7, 2025
in Editorial
Reading Time: 4 mins read
0
Selective Justice Will Doom Liberia’s Fight Against Corruption

The Liberian government is on the verge of committing a reckless act of economic sabotage—stripping ArcelorMittal Liberia (AML) of its operational control over the Yekepa-to-Buchanan railway in favor of an untested, unproven third-party operator. This decision, if executed, would be an economic and political disaster, destabilizing the mining sector, threatening thousands of jobs, and shattering investor confidence in Liberia’s ability to uphold agreements.

Liberia cannot afford such a misguided gamble. AML has been the backbone of the nation’s post-war reconstruction, singlehandedly reviving a railway left in ruins and injecting over US$800 million into the country. Now, with an additional US$1.7 billion on the table—an investment that will create over 2,000 new jobs—the government is poised to jeopardize it all. Surrendering control to an entity with questionable financial capacity and dubious motives would not only be irresponsible but economically suicidal. This is not governance; this is self-inflicted economic warfare.

ArcelorMittal is Liberia’s highest taxpayer and a major source of employment. The company’s expansion—set to triple iron ore production and upgrade its processing facilities—represents the largest single investment in Liberia’s economy. But all of this is at risk.

The government’s flirtation with High Power Exploration (HPX), a company with no significant investment in Liberia’s railway, reeks of opportunism and political backroom dealings. HPX wants to hijack a railway it did not build, offering only transit fees while AML shoulders the burden of maintaining it. This isn’t just unfair—it’s a reckless sellout of national assets that could cost Liberia millions in tax revenue, while handing control of critical infrastructure to a company with no track record of managing such an operation.

AML’s commitment goes far beyond mining. The company has invested heavily in Liberia’s energy sector, constructing a 72-megawatt power plant in Yekepa and a 21-megawatt plant in Buchanan. These projects are critical to Liberia’s industrial growth, yet the government seems willing to undermine this progress for a vague and untested alternative.

This proposed shift in railway control is not just bad economics—it is a betrayal of Liberia’s international credibility. AML’s Mineral Development Agreement (MDA) already allows for a multi-user railway model, but HPX is demanding an absurdly high transit capacity of 20-30 million tonnes per annum, far beyond its actual production capability. The government’s willingness to entertain this demand raises serious questions about who is truly benefiting from this arrangement.

Even more disturbing is HPX’s aggressive lobbying, which appears less about economic development and more about political manipulation. Its association with Robert Gumede, a businessman mired in corruption scandals, casts an ominous shadow over the entire deal. Reports that HPX has engaged in backdoor dealings with government officials—promising financial support for a National Rail Authority in exchange for control—suggest corruption at the highest levels. Is Liberia’s railway being auctioned off in a secretive, self-serving deal?

Liberia is already grappling with staggering unemployment. Stripping AML of its railway operations could force the company to scale back its expansion plans, eliminating thousands of direct and indirect jobs. And make no mistake: no other company, including HPX, is prepared to fill that void.

Beyond job losses, AML’s contributions to national infrastructure—rehabilitated roads, training academies, and community development projects—are at stake. This move would not only weaken the mining sector but also cripple local economies dependent on AML’s presence.

The government must ask itself: Who benefits from this move? Certainly not the Liberian people. The only winners appear to be a select few with vested interests in HPX’s takeover. Is this the kind of governance Liberia stands for—one that sells out its own future for political convenience?

Liberia’s railway is a national asset, and its control should not be handed over to an unproven entity through backroom deals. Instead of sabotaging its most reliable investor, the government must commit to a transparent and balanced multi-user framework—one that retains AML’s operational control while allowing for regulated third-party access. This is the only viable path forward.

The stakes could not be higher. If the government pushes through this reckless policy, it risks not only economic disaster but also long-term reputational damage. Investor confidence will be shattered. Liberia’s ability to attract foreign capital will diminish. And worst of all, thousands of hardworking Liberians will be left without jobs, while the nation’s most critical infrastructure falls into uncertain hands.

Liberia cannot afford this betrayal. The government must reject political pressure and put the country’s economic stability first. The message must be clear: Liberia is open for business—but not at the cost of national self-sabotage.

Tags: AMLArcelorMittal Liberia
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