Following a rejection of ArcelorMittal Liberia’s rail provisions by President Joseph Nyuma Boakai, the company has reportedly intensified its campaign to ratify its revised Mineral Development Agreement (MDA). There is mounting evidence that the company’s proposals could covertly entrench its dominance over a critical strategic infrastructure asset, the Yekepa–Buchanan rail corridor for decades to come. Central to the provisions, are the Rail Standards Operating Principles (RSOPs), a set of technical and governance guidelines that determine everything from access fees and scheduling to safety protocols and system upgrades.
As contained in AML’s revised MDA, these operating principles are embedded directly into the agreement, a move that President Boakai opposed, insisting that the rules governing the rail corridor must fall under an independent operator to ensure transparency, neutrality, and fair competition. A source familiar with the provisions hinted that if ratified, AML’s RSOPs would embed three systematic risks to Liberia’s sovereignty and economic growth, giving them advantage to operate a ‘State within a State.’
It Would Strengthen AML’s ‘State within a State’
Multiple public officials and industry experts have observed how the RSOPs inside AML’s agreement risk bringing to life what think tank Global Witness described two decades ago as creating a “state within a state”, reinforcing the company’s de facto monopoly over the rail corridor.
Officials say this is because future modification to the RSOPs would require legislative approval, effectively locking Liberia into a single-user governance model and leaving no room for the establishment of a National Rail Authority that can oversee all users.
“This concern of AML operating a state within a state is sharpened by the company’s track record in Liberia over the past 20 years, which includes multiple fines for environmental damages, a failure to deliver key infrastructure projects promised to communities in Nimba, Bong, and Grand Bassa counties, and a lack of transparency of its in-country profits and tax contributions to the country,” a source frowns. Recent reports also point to criticism of AML’s employment practices, particularly a trend of favoring foreign hires with minimal knowledge of project specifics instead of qualified Liberians. Recurring safety issues such as derailments have further eroded public trust.
It risks an unfair AML competitive advantage
Beyond governance concerns, observers have pointed to how the operational and financial thresholds proposed in the RSOPs could give AML an unfair structural advantage over any future competitors. It has been gathered that a major point of contention is the requirement that the transition to a multi-user rail system requires entrants to demonstrate the capacity to move five million tonnes per annum (mtpa). Critics describe this as an arbitrary benchmark that forces companies to invest heavily without guaranteed access to the rail. The upfront capital obligations make it exceptionally difficult for third-party mining projects to secure financing, effectively freezing out new entrants before they can even begin. Additionally, the principles currently exempt AML from some of the feasibility study requirements that other users would face. This gives it an accelerated pathway to expansion.
Giving AML Capacity to Stall or Frustrate New Users
A third challenging dimension of the RSOP concerns AML’s capacity to stall, frustrate, or block the accession of new users. Under the proposed framework, AML’s own expansion timeline becomes the determining factor for when the corridor can accommodate additional companies. This means that AML could delay other companies from using the rail line simply by slowing its own investments or upgrades. The company would also reportedly have the exclusive right to defer system improvements on grounds of operational necessity, giving it broad discretion to postpone expansions.
Getting The Details Right is Essential for Liberia
As debate in the Legislature intensifies, the stakes for Liberia could not be higher. The country’s rail and port corridors are some of its most valuable national assets, and their governance will shape the country’s economic landscape for generations. It has become a concern among policymakers that having RSOPs under the purview of AML’s revised MDA will ensure it retains de facto control over the Yekepa-Buchanan railway. Liberia’s aspiration for an open, competitive, and transparent rail system can only be achieved by ensuring that its railways – some of the country’s most strategic assets – serve national interests, by encouraging fair competition, attracting new investment, and safeguarding economic sovereignty. If the RSOPs remain in their current form, this will not be achieved.
