-- Establishes National Railway Authority with Executive Order #136
In a decisive move to reshape Liberia's rail infrastructure, President Joseph Nyuma Boakai signed Executive Order No. 136, establishing the National Railway Authority (NRA) on Thursday, October 10, 2024. This Executive Order extends the expired provisions of Executive Order No. 112, reestablishing the government's authority over the management and development of Liberia's national rail assets. The establishment of the NRA marks a pivotal moment in Liberia's economic development, setting the stage for a more inclusive, regulated, and safety-conscious rail system that could spark public debate and lead to transformative changes in transport and logistics.
Liberia's rail infrastructure has long been tied to its mining sector, with three major rail corridors built to connect resource-rich regions with the country's ports. However, only one of these railways, connecting Yekepa to the Port of Buchanan, remains in use. This line, operated by ArcelorMittal Liberia, has suffered numerous derailments in recent years, raising concerns about safety. The two other rail corridors, located in Western and Central Liberia, have been largely abandoned since the civil war, leaving local residents to repurpose the infrastructure using makeshift carts to transport goods to market.
President Boakai's Executive Order seeks to reverse these trends and bring much-needed reform. The President stated that the Government "remains committed to the development and enhancement of the National Rails Assets for use by the Mining sector of the economy, as well as for use in the transport of passengers and goods." This order aims to breathe new life into the country's rail system by creating the NRA, which will be responsible for regulating access to rail infrastructure and ensuring its safe, equitable use by all stakeholders.
A key element of Executive Order No. 136 is its emphasis on a multi-user rail regime, a significant shift from past practices where rail access was dominated by a few companies. President Boakai has long advocated for a multi-user system, emphasizing that Liberia's railway is a national asset that cannot be limited to one company. The Executive Order reaffirms this principle, stating that "the Government is committed to the core principles of multiple users of the rail infrastructure... in a manner that is well regulated and fair to all users."
By promoting multi-user access, the NRA is expected to open up the rail system to a broader range of industries and businesses. This is expected to stimulate competition and reduce the monopolistic control that has historically limited access to Liberia's rail network. The creation of a regulated, transparent rail system could also attract new investment, particularly in mining and logistics, which rely heavily on rail for the efficient movement of goods. Investors will likely be encouraged by the fact that the NRA is tasked with enforcing international best practices and ensuring equitable access for all eligible users, as stipulated by the Executive Order.
The NRA, according to the Executive Order, will be responsible for managing both "above-rail" and "below-rail" assets, which include the physical infrastructure as well as the logistics of running the rail system. In a poignant section of the order, it is stated that the NRA will "coordinate access to and usage of the Liberian Infrastructure Assets by Eligible Users so as to maximize their fair, safe, and efficient use." This mandate not only places the NRA at the center of Liberia's rail system but also signals a broader commitment to safety, efficiency, and equitable access.
Safety is a critical issue the NRA must address. The existing rail line operated by ArcelorMittal has been plagued by frequent derailments, some of which have resulted in fatalities. These incidents have exposed gaps in oversight and maintenance that the NRA will need to close. As part of its regulatory duties, the NRA will "procure the services of suitably qualified rail regulators to superintend the usage of existing rail facilities in Liberia in keeping with international best practice and equity." These regulators will be responsible for ensuring that all rail users, from major corporations to small businesses, adhere to strict safety standards, thereby reducing the risk of accidents.
Another significant provision of the Executive Order is the funding mechanism for the NRA. The authority will be financed through fees levied on users of the rail system, ensuring that its operations are sustainable. This model will allow the NRA to maintain and expand its services without overburdening the government's budget, while also ensuring that those who benefit from the rail system contribute to its upkeep. Additionally, the NRA will be responsible for drafting and submitting a National Rail Authority Act to the Legislature, which will formalize its role and give it a clear legal mandate.
The Executive Order also outlines a dispute resolution mechanism to address conflicts arising from the implementation of the order. These disputes will be handled through arbitration under the rules of the Liberian Chamber of Commerce, ensuring that any issues are resolved fairly and transparently. Importantly, the order clarifies that it "may not be interpreted to interfere with or diminish the existing rights of any Eligible Users obtained under previous agreements with the Government of Liberia," thus balancing the need for reform with respect for existing contracts.
From an economic development standpoint, the establishment of the NRA is a critical component of President Boakai's broader agenda to modernize Liberia's infrastructure. The revival of abandoned rail corridors and the creation of a well-regulated, multi-user system could significantly reduce transportation costs, improve logistics, and open new markets for businesses. This is particularly important for rural producers and small businesses, who often face significant barriers to getting their goods to market. A functioning, accessible rail system could transform the way goods are moved across Liberia, boosting trade and stimulating economic growth.
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The creation of the NRA also aligns with the government's efforts to attract foreign investment. A transparent and well-regulated rail system would address many of the concerns voiced by investors, particularly regarding safety, equity, and access to infrastructure. By ensuring that Liberia's rail system is open to multiple users and governed by clear rules, the NRA could make the country more attractive to both domestic and international businesses, particularly those in the mining and logistics sectors.
Ultimately, the establishment of the NRA through Executive Order No. 136 represents a bold step forward for Liberia. By bringing the country's fragmented rail assets under centralized management, improving safety standards, and ensuring fair access, the NRA has the potential to transform Liberia's transport and logistics sectors. This move not only addresses the immediate challenges of infrastructure but also lays the foundation for long-term economic growth and development. As public discussion around the Executive Order grows, the hope is that this initiative will usher in a new era of inclusive, safe, and efficient rail transport in Liberia.
