Algeria has facilitated the completion of full-track installation on the Western Mining Railway, Africa’s first heavy-haul desert railway, proving that this nation is taking big steps in ensuring its economic development.
The railway, which stretches 575 kilometres through extreme Saharan terrain, is designed to do one thing exceptionally well: move minerals at an industrial scale from the southwest to processing hubs and ports. Built jointly by China Railway Construction Corporation (CRCC) and Algerian state partners, the project was delivered three months ahead of schedule and shows that this was not routine construction but economic engineering.
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Engineered to robust global standards for durable export competitiveness, the Trans-Saharan Railway features a 32.5-tonne axle load, a 20-million-tonne annual capacity, and over 1,400 structures to access the massive Gara Djebilet iron ore deposit. This long-dormant asset, discovered in 1952 and containing ~3.5 billion tonnes of ore, was only unlocked after a 2015 breakthrough solved its high-phosphorus processing challenge. With rail access now secured, the mine is scheduled for a commercial ramp-up from 2026, targeting production of 40–50 million tonnes annually by the late 2020s, which is projected to generate nearly $1 billion in net annual profit and save $2 billion in imports once fully operational.
This railway is a pivotal economic diversification project for Algeria, directly countering the nation’s dangerous overreliance on hydrocarbons, which in 2025 still constituted 19% of GDP and a staggering 93% of export earnings. By enabling the large-scale exploitation and export of iron ore from Gara Djebilet, it establishes an entirely new non-hydrocarbon export sector. The project anchors domestic steel production, slashes logistics costs from 35% to 15% of ore value, creates thousands of jobs with specialised training, and supports new industrial zones, thereby fundamentally reshaping Algeria’s economic cost structure and future.
The Western Mining Railway represents a definitive break from Algeria’s colonial-era rail history, which was designed solely to extract raw materials for export. Today, the project is a sovereign instrument of industrialisation, deliberately engineered to create a vertically integrated domestic mining-to-steel ecosystem rather than simply exporting cheap ore. This strategic shift marks a move from extraction to economic transformation.
China’s involvement is central, as this flagship Belt and Road Initiative project leverages Chinese heavy-haul railway expertise and rapid execution. In exchange, Algeria provides strategic geography and long-term mineral reserves, deepening a bilateral trade relationship now exceeding $9 billion annually. The collaboration includes localising production, such as manufacturing rail sleepers in Tindouf, blending foreign capability with domestic development.
The project sets a new template in Africa by proactively building dedicated, high-capacity infrastructure before large-scale extraction begins, a contrast to nations like Guinea or the DRC, constrained by distant ports and congested corridors. Algeria’s model integrates domestic processing and retains state control, aiming to turn inland mineral wealth into an industrial advantage rather than just a raw export.
However, success is not assured, facing headwinds from volatile iron ore prices, competition from giants like Simandou and Australia, and environmental challenges in the arid Sahara. If executed with disciplined governance, the railway could expand beyond iron ore to unlock other minerals, spur industrial clusters, and position Algeria as a logistics hub. Ultimately, it is a monumental bet on infrastructure-led industrialisation to finally diversify the economy beyond hydrocarbons, judging its worth not by tracks laid, but by value retained and industries built within the country.
