SinoSage
Information from sources inside Libya suggests that China is gaining a strong foothold on NATO’s southern flank.
Over the past decade, China has steadily increased its engagement across North Africa, with Libya emerging as a centerpiece of Beijing’s expanding geopolitical and economic ambitions. As part of its global Belt and Road Initiative (BRI), China is accelerating multi-sectoral investments in energy, infrastructure, and logistics in eastern Libya.
These developments reflect a broader effort by China to reshape trade routes, supply chains, and political alignments in the Mediterranean and sub-Saharan Africa. Libya’s east, under the control of Field Marshal Khalifa Haftar’s Libyan National Army (LNA), has become a focal point for negotiations that could transform the region into a critical hub for Sino-African and Sino-European trade.
Strategic Location and Investment
Potential
Tobruk, a port city on Libya’s eastern coast, is at the center of Chinese plans. Its strategic location—less than 400 kilometers from Crete and southern Europe—offers a rare combination of geographic proximity and maritime potential. Historically, Tobruk has served as a strategic military and trading post since the Roman era, and later as the site of a pivotal World War II battle. Now, the city is poised to regain international importance, this time as a commercial and energy transit node.
Unlike many southern European ports, such as Genoa, Piraeus, and Barcelona, which lack the draft depth to accommodate ultra-large container vessels, Tobruk’s natural deep-water port positions it as a gateway to Europe. According to our sources inside Libya, Chinese strategists have identified Tobruk as a linchpin for addressing Europe’s port capacity constraints.
A multi-phase Chinese investment plan envisions Tobruk as a logistics megahub. At its core is a proposed $10 billion oil refinery capable of processing 500,000 barrels per day. The refined products would be exported to European markets, securing an alternative and stable energy source for the continent. If Haftar’s approval is secured, Chinese stakeholders are prepared to invest even more extensively, potentially surpassing $50 billion in total commitments across Libya in the near- to medium-term.
This refinery project is not standalone. Our sources suggest that China envisions Tobruk as an integrated logistics platform that includes fuel storage facilities, transshipment terminals, and supply depots for both maritime and overland transport. The city’s unique geographic location gives it direct access to the Suez Canal, the eastern Mediterranean, and central Africa, creating a web of interlocking trade and supply chains.
Port, Airport, and Logistics Expansion
Alongside the refinery, Chinese companies plan to expand and modernize Tobruk’s port, transforming it into a transshipment hub. Large vessels would dock and offload goods, which would then be transferred to smaller ships for distribution to European destinations—offering a strategic workaround for European port limitations. The port upgrade would include container terminals, bunkering facilities, and customs infrastructure to facilitate seamless trade flows.
China has also proposed upgrading Al-Adem Airport, located adjacent to the Tobruk port. Once the largest British Royal Air Force base globally and now controlled by Haftar’s forces and used by Russian military personnel, Al-Adem is slated to become a critical logistics hub.
The airport would integrate with sea and land transport systems, serving as both a civilian cargo and refueling station and a potential dual-use facility with strategic implications. Fuel produced at the Tobruk refinery could be stored and distributed via this air hub, bolstering China’s aviation and military logistics.
These combined port and airport projects would create a modern, multi-modal logistics hub in Tobruk, from which China could control the flow of goods and energy into southern Europe. Strategically, it would give Beijing an unparalleled foothold on NATO’s southern flank.
While Haftar has not yet formally approved the projects, our sources suggest Chinese officials are offering generous terms and may request Russian mediation to overcome U.S. concerns. Haftar’s hesitancy underscores Libya’s fragile geopolitical balance, but also highlights the stakes of deeper Chinese engagement.
Rail, Roads, and Cross-Regional Linkages
China’s ambitions extend far beyond Libya’s Mediterranean coast. As Egypt constructs a 2,000-kilometer high-speed rail network connecting Ain Sokhna on the Red Sea to Marsa Matruh on the Mediterranean, Chinese-backed plans to extend this corridor into eastern Libya would effectively link Tobruk and Benghazi to the Red Sea.
This east-west transnational rail connection would create a seamless land bridge from Libya’s key eastern ports through Egypt to Asia-facing shipping routes.
The China Railway International Group (CRIG), supported by the Singapore-based BFI Management Consortium and in partnership with Siemens, has signed a memorandum of understanding with Libyan Railroads to explore building this railway from Benghazi to Marsa Matruh via the Musaid border crossing. With an estimated cost of up to $20 billion, the project reflects the scale of ambition and the complexity of terrain, engineering, and cross-border coordination required.
BFI Management Consortium plays a pivotal role in advancing China’s infrastructure ambitions in Libya. Acting as CRIG’s exclusive partner, BFI has facilitated high-profile agreements across both eastern and western Libya, including planned rail and metro systems in Benghazi and Tripoli.
Formed as a special-purpose vehicle for Libyan development, BFI brings together global engineering firms such as Arup and Siemens, providing both technical expertise and political risk insulation. Its involvement underscores the strategic coordination between Chinese state-owned enterprises and international partners, and its operations serve as a critical conduit for Beijing’s expanding logistical and commercial presence in North Africa.
These rail lines are not just about transit—they represent a new spine of connectivity through North Africa. Designed to streamline the movement of goods and people between Asia, Africa, and Europe, these projects are also aimed at opening up future corridors south into Chad and Sudan. In doing so, China seeks to build a vertically integrated trade route that bypasses traditional maritime chokepoints and strengthens its position in emerging African markets, all while using Libya as a continental gateway.
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