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Hot Pepper Liberia > Blog > Business > AML Reemphasizes Commitment To Third Party Rail Use
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AML Reemphasizes Commitment To Third Party Rail Use

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Last updated: March 26, 2025 2:03 am
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The topic of railway use has sparked on-going debate in Liberia, with accusations that AML is attempting to monopolize the rail corridor.

However, the company has consistently expressed its willingness to allow other mining firms to use the railway through a structured agreement that benefits the Liberian government and ensures fair business practices.

In 2021, the House of Representatives rejected an amended mineral development agreement (MDA) with AML, citing concerns that the agreement was monopolistic.

However, AML had explicitly included a clause in that very MDA stating that if it was found to be sabotaging other companies’ access to the railway, the government could immediately remove it as the operator.

Investigation finds that AML has not objected to any company using the railway and stalling of third-party rail use cannot be attributed to any form of blockade by AML.

ArcelorMittal Liberia has historically aligned with the Liberian government’s vision of developing a fully functional, multi-user railway system along the Buchanan Corridor. The company has already invested more than $800 million in the rail infrastructure, significantly increasing its operational capacity.

As part of its commitment to a shared railway model, AML has endorsed the User-Operator framework proposed in the Third Amendment to its MDA. This model, which is widely used for bulk commodity transport in countries like Australia, Brazil, and Canada, has also been successfully implemented in neighboring Guinea.

AML has agreed to the Rail System Operating Principles (RSOP) suggested by the Liberian government, which ensures transparent and non-discriminatory rail operations. Under this framework, a newly established Rail Authority will oversee standards, conduct inspections, and monitor compliance among all rail users. These new multi-user principles will take effect immediately.

ArcelorMittal points to Guinea as an example of a successful user-operator model. In Guinea’s bauxite mining sector, the government allows mining companies to invest in railway and port infrastructure, retain operational control, and provide access to other users. In return, these companies finance capital expenditures, allocate rail capacity, and contribute significantly to the national economy through taxes and royalties.

Under this model, mining firms operate the infrastructure they develop for 35 years while ensuring shared access for other users. Liberia, AML argues, should adopt a similar approach to encourage foreign investment in infrastructure development rather than risk deterring investors with policies that favor external operators at the expense of established investors.

Despite recent discussions about transporting Guinean ore through Liberia, the reality remains that Guinea has resisted such proposals for more than four decades. Now that the country has completed the Trans-Guinea Railway infrastructure, there is little reason to believe it will allow its resources to be exported through Liberia instead.

Given this backdrop, AML questions why any company would invest in Liberia’s railway and port infrastructure if the government intends to take control and hand management over to a third-party operator. The company argues that Liberia must learn from Guinea’s example—ensuring a sustainable, investor-friendly environment while securing long-term economic benefits from its natural resources.
As Liberia moves forward with discussions on rail management, the key question remains: Will the government embrace a model that attracts investment and fosters growth, or will it pursue policies that could deter future infrastructure development?

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