CTBL-Watch - Issue 34 - October 2016

NEW US$4 BILLION ETHIOPIA-DJIBOUTI

RAILWAY COMPLETED Full Story On 7

AFRICACTBL-WATCH

ISSUE 34 | OCTOBER 2016

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AFRICACTBL-WATCH

ISSUE 34 | OCTOBER 2016

Contents

03 | Corridor Review

05 | African Group News

25 | Western Africa

07 | Eastern & Southern Africa

CCIS New Service: Burkina Faso Receives Customer Brokerage Licence

Regional: IRU Report On ‘Transit Costs in East and Southern Africa’ / East & Central Africa Roads and Rail Infrastructure Summit / African Union Signs Agreement On High-Speed Railway NetworkEthiopia: Construction Of Ankober-Dulecha Road Launched / Mombasa-Nairobi-Addis Ababa Road Corridor Phase III / New US$4 Billion Ethiopia-Djibouti Railway CompletedKenya: Mombasa Port Transhipment Traffic Drops By 9.5% / Kenya To Expand Key Nairobi-Mombasa Highway To Boost Trade / 200 Police Officers To Escort Cargo On Northern Corridor / Plans Unveiled For Mombasa-Nairobi 6-Lane Superhighway / Construction Of Standard Gauge Rail To ContinueKenya/South Africa: South Africa And Kenya Easing Border TradeMozambique: Northern Corridor To Improve Capacity / IFC Close To US$2.7 Billion Debt Refinancing For Nacala Railway / Nyusi Inaugurates Rail Bridge Over Umbeluzi / Rising Coal Prices Could Improve Prospects For Infrastructure ProjectsMozambique/Malawi: Nacala Corridor Signaling To Go Live This YearNamibia: Scramble For Lucrative Rail TenderTanzania: Dar Es Salaam, Kinshasa Trade PactSouth Africa: Sanral Appoints New CEO / N3/N2 Freeway Upgrade Delayed / Hybrid Trucks To Run On Railways / Gautrain Expansion Project Feasibility Study CompletedTanzania: TAZARA Invites Investors Re US$1.2 Billion Investment Gap / AfDB Seeks Investors For US$7.6-Billion Rail Line / Isaka Dry PortTanzania/Zambia: TAZARA Aims At Tripling Cargo TonnageUganda: URA Introduces BSmart Electronic Cargo Tracking System (ECTS) / New Road To Boost Trade With Kenya / UNRA To Upgrade Luwero-Nakaseke Road / China Signs FTZ Zone MOU With UgandaZambia: Consultancy For Chinsali-Nakonde Road Rehabilitation Project / Mukobeko-Ngabwe Road Upgrade StartsZambia/Zimbabwe: Lusaka-Chirundu RoadZimbabwe: Lafarge Agrees To Provide Resources For Road Rehabilitation / Motorists Brace For New Road Signs / Ministers Call For Haulage Truck Ban / Government Bolsters ZIMRA Operations

Regional: NEPAD Held Meeting On West African Corridor ManagementGhana: GPHA To Develop Western Railway / Rehab Of Sekondi/Takoradi Railway Lines Almost CompleteNigeria: No New Roads Until Existing Projects Are Completed / Government Concession Narrow Gauge Lines To General ElectricSierra Leone: Mano River Union Transport Corridors / Feasibility Study For Mano River Union Roads

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Website: www.cma-cgm.comEmail: [email protected]: @CMA_CGM_Group

CMA CGM Marseille Head Offi ce4, Quai d’Arenc 13235 Marseille cedex 02 France

Tel : +33 (0)4 88 91 90 00

www.cma-cgm.com

Disclaimer of LiabilityThe CMA CGM Group make every effort to provide and maintain usable,

and timely information in this report. No responsibility is accepted for

the accuracy, completeness, or relevance to the user’s purpose, of the

information. Accordingly the CMA CGM Group denies any liability for any

direct, indirect or consequential loss or damage suffered by any person

as a result of relying on any published information. Conclusions drawn

from, or actions undertaken on the basis of, such data and information

are the sole responsibility of the reader.

The African Inland Freight ReportBrought to you by CMA CGM Africa Marketing

Rachel Bennett Dominic Rawle

Events Diary

BURKINA FASO - Tunisia & Burkina signed 8-agreements at the end of

the 7th session of the Tunisian-Burkinabe High Joint Commission. Two other bilateral cooperation agreements were signed on rail transport and post.

CONGO - Exxaro Resources concluded the exit of its Congo-based

iron-ore assets. The transfer of ownership of the Mayoko iron-ore project to Congolese company Sapro SA has been concluded.

COTE D’IVOIRE - Government projected economy will grow by 8.9% in

2017 as it approved a US$11.11 billion budget for the coming year up 12%.

- Cemoi Group noted sales from its local cocoa-processing plant exceeded forecasts in its 1st year. It plans to increase output to 10,000 MT in the next 3-yrs.

GAMBIA - The Gambia on Tuesday announced a ban on importing

timber following illegal logging from Senegal.

MALI - Finance minister proposed 2017 budget that will see

spending increase by >10% with a heavy emphasis on investment spending. Expects GDP to grow by 5.4% this year and 5.3% in 2017.

Western AfricaETHIOPIA - The African Union conducted a ground-breaking

ceremony for the construction of the AU Integrated Services Center a Chinese-aided project undertaken by Anhui Foreign Economic Construction Company.

KENYA - Kenya Electricity Generating Company has plans to

construct a US$300m 140MW geothermal power plant in Kenya before the end of 2016.

MOZAMBIQUE - Vale expects to receive US$768m from the sale of stakes

in its Moatize coal mine and Nacala Logistics Corridor in Mozambique to the Japanese Mitsui & Co.

- Cut wood in Mozambique will no longer be exported as logs from January 2017 according to the Forestry, Environment and Rural Development Ministry.

SOUTH SUDAN - Nestlé SA’s Nespresso is suspending imports from South

Sudan citing deteriorating security conditions.

UGANDA - Ugandan-German Government Negotiations on

Development Cooperation from 4-5th October - will agree on the a 2-year programme of bilateral development cooperation (2016/17).

Eastern & Southern Africa

News Briefs

October 201617-21 First African Forum for National Trade Facilitation Committees (Addis Ababa, Ethiopia) Contact: [email protected]

18-19 African Ports Evolution (Durban, South Africa) www.portsevolution.com

18-19 African Rail Evolution (Durban, South Africa) www.rail-evolution.com

19-20 West & Central Africa [WACA] Mining (Accra, Ghana) www.wacamininig.com

19-21 Nigeria Alternative Energy Expo 2016 (Abuja, Nigeria) http://www.nigeriaalternativeenergyexpo.org/

19-22 POLLUTEC MAROC 2016 [Environmental Equipment, Technology and Services] (Casablanca, Morocco) http://www.pollutec-maroc.com/

Eastern & Southern Africa

Corridor Current Situation

1 ● Kenya [Mombasa] -Great Lakes / Uganda / Rwanda / South Sudan

Kenya: We offer competitive rates on heavy 20ft container rates Gross Weight [GW] up to 32T and 40ft containers with GW below 22T for rail to ICD Embakasi, Nairobi. All import cargo to Kenya [local] must have a Certificate of Conformity [COC]. Without a COC we will not be able to clear the cargo out of port. Failure to which Kenya Bureau of Statistics will impose heavy penalties on consignee’s account.South Sudan: TBL service to South Sudan has been temporarily stopped due to current political instability. The Nimule-Juba route is no longer safe for our vendors to call.Rwanda: Subject to premium tariff we now authorise shipper to book at 30T incl TARE for final destination Rwanda.

2 ● Tanzania [Dar Es salaam] - Great Lakes

DRC: Roads from Dar Es Salaam to DRC [Goma / Bukavu] are in good condition and services are running well via Rwanda. Uvira via Burundi available but subject to a pre confirmation with our Dar es Salaam office due to possible insecurity in Burundi.Rwanda: Service is running very well. It is operated under SCT with efficient transit time and rates.Burundi: We have re-opened our service connecting Tanzania to Burundi. The Dar-es-Salaam to Bujumbura road corridor offers a transit of 13-days. Regional: Please be advised due to Customs complication, no part load shipment is allowed in TBL for our corridors via Dar Es Salaam.

3 ● Tanzania [Dar Es salaam] - Copper Belt

Regional: The corridor from Dar Es Salaam to Lusaka, Copper belt & Lubumbashi is safe. Our rates have recently been improved and we offer competitive transit times. Our local agent is working with local hauliers to further improve this. Zambia: Roads through Mbeya offer an alternative to the train to Ndola. With an improved ASEA TANZANIA service we offer direct weekly service from Asia to Dar Es Salaam enhancing inland solutions to Malawi and Zambia.DRC: We are the only line to have an owned office in Lubumbashi which closely monitors the local situation.

4 ● Mozambique Nacala Corridor New competitive rail rates for Nacala corridor to Malawi final destination.

5 ● Mozambique Beira Corridor Competitive rates for 20’ Beira-Harare [Zimbabwe] by road and by rail. CMA CGM will indemnify clients from further liability should any port storage incur on the units to be railed. We also have new competitive rates on the Beira–Malawi corridor.New rates more competitive for Beira-Lusaka 20’ and Beira – Harare 40’.

6 ● Mozambique Maputo Corridor Competitive solutions remain available to Zimbabwe by rail from Maputo-Hwange even during current political tensions. There is no port storage invoiced if shortage of wagons in Maputo.

7 ● S. Africa Durban NEW: We can now offer an export solution by rail from Botswana [Gaborone & Francistown] to Durban with competitive rates.Inland reefer ‘overborder’ solution is available via Durban to inland countries: Zimbabwe, DRC, Zambia, Botswana, Lesotho and Swaziland.More competitive rates for Durban-Gaborone and Francistown (Botswana) by rail.

8 ● Namibia Walvis Bay We can offer a routing solution for export CTBL cargo from Zambia to Namibia. The route along the Trans-Caprivi Corridor links Zambia with the Port of Walvis Bay via the Katima Mulilo bridge border crossing. Export solutions are available from DRC and Zambia to Walvis Bay for dry and reefer equipment. The corridor to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well. We also offer domestic routes to Windhoek and Otjiwarongo, Otjikoto, Oshakati, Ondangwa and Oshikango by road and rail.

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CORRIDOR REVIEW CTBL AFRICA

Western Africa

Corridor Current Situation

1 ● Mauritania-Mali New!! A new intermodal offer from the port of Nouakchott now targets 15 Mauritanian landlocked cities by road. We also offer a connection from Nouakchott into neighbouring Mali with a road link to Bamako.

2 ● Senegal-Mali The Dakar-Bamako corridor is only available by road. Both our rail and rail-road corridor options for Dakar-Bamako have been closed due to a change in the governance of the railway that has affected services. Meanwhile we are only able to accept cargo for Southern Mali destinations. For safety reasons traffic to Northern Mali [Kignan, Ségou, Mopti, Sevaré, Gao, Kidal, Menaka, Ansongou, Tessalit, and Timbuktu] via Dakar are temporarily suspended.

3 ● Senegal-Guinea Bissau The corridor is open and running smoothly.

4 ● Cote d’Ivoire-Burkina/Mali Sitarail, a unit of the Bollore Group, has restored the collapsed bridge on the railway linking Cote d’Ivoire and Burkina Faso. The trade route is now accessible. Furthermore our road service to Burkina is running well to all destinations. Please also be reminded we have a new reefer service from Abidjan.

5 ● Ghana-Burkina/Niger/Mali The Tema-Ouagadougou, Tema-Bamako and Tema-Niamey corridors are running well. We offer competitive rates with excellent transit times.

6 ● Togo-Burkina/Niger We offer a reliable service to Burkina following recent attacks. Generally the service is running well. Thanks to good volumes and on-going negotiations with suppliers we have decreased our Ouagadougou rates from Lome. We can also offer excellent solutions from Asia on our AFEX service. Please note that Lome port is strict on enforcing weight regulations for trucks.

7 ● Benin-Niger Service is operating very well by road to Niamey. Our Cotonou agency has signed a new contract with BENIRAIL [Bénin-Niger Rail]. The move opens up a new rail option for transit cargo from Cotonou port to Parakou.

8 ● Nigeria Corridor NEW! From Lagos [Tin Can & Apapa] we offer inland solutions along the A2 corridor: Abuja, Kaduna, Kano and the northern city of Katsina on the A9 near the Niger border. We also provide alternative direct rail services from Lagos to Kano. And links to the coastal oil-refining city of Port Harcourt by road. All running well.

9 ● Cameroon-Chad We offer both road and rail services to Chad which are running well. The train operator, CAMRAIL, offers a good service.

10 ● Cameroon-CAR The Douala-Bangui corridor is running well and open on a case by case basis with agreement from our local Douala Agency. Please note all TBL to Bangui will be subject to Consignee signing LOI locally.

11 ● Gabon Corridor From Libreville, we serve domestic destinations by road to Franceville, Lambarene, Mouila, Bitam, Moanda, Mitzicnd Makokou.

12 ● Congo Corridor Pointe Noire-Brazzaville corridor is REOPENED. We offer an inland service from Pointe Noire to Dolisie, Brazzaville, Oyo and Ouesso.

13 ● DRC Corridor Matadi-Kinshasa service is running smoothly. New competitive rates are available.

14 ● Angola Corridor We serve the interior via the 4-main national ports of Luanda, Lobito, Cabinda and Namibe. We offer transit to Malange, Bela Vista, Catumbela, Benguela, Bahia Farta, Huambo, Lubango, Malongo, Malembo, Yema, Subantando, Buco Zau, Belize, Necuto and Lubango. All destinations are served by road on a 1-2 day transit time.

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AFRICAN GROUP NEWSCMA CGM

CCIS New Service: Burkina Faso Receives Customer Brokerage Licence Your Complex Customs Clearance Simplified!CCIS, a wholly owned subsidiary of CMA CGM SA, has been granted a licence in Burkina Faso for customs brokerage services. As such we are now able to offer professional-agency services for all importers and exporters to prepare and submit all documents for clearing goods through customs. Our local staff have a broad range of knowledge including customs law, customs classification, customs tariff schedule, import and export regulations, shipping procedures, trade documentation, etc.

Choosing a customs broker is an important decision and can often mean the difference between an on-time shipments or costly delays. Customs clearance can be an extremely complex and a lengthy process unless you know what you are doing. Our objectives are to achieve maximum savings, eliminate delays and ensure full compliance. CCIS Burkina Faso can conduct customs business on your behalf - a competitive advantage offering a fast, reliable, full customs brokerage service with the following benefits:

Benefits - One stop shop for all your customs requirements - Processing under customs control - Customs warehousing - Tailored made solutions via our consultancy expertise - Filing of import declarations via regular import/export procedures - Physical inspections - Supply of customs guarantees - Payment of VAT / import duties on your behalf - Supply of required customs guarantees - Transparency via standard and tailor made reporting capabilities - Support with cases of non-cleared transit procedures - General customs enquiries and notifications

Furthermore CCIS is waiting for the enactment of a similar licence in Cameroon.

ABOUT CMA CGM INLAND SERVICE - CCISIn order to support our land-based strategy in Africa, CMA CGM has brought together all such platform facilities under one dedicated entity – CMA CGM Inland Service – otherwise known as CCIS. CCIS is a 100% CMA CGM Group affiliated company charged with the development of inland logistics structures and solutions such as logistics platforms, container-freight stations [CFS], inland container depots [ICD], off dock, warehousing, road/rail transport amongst others.

CCIS manages its own transport infrastructure and logistics services, and is expanding its presence on the African continent in consultation with CMA CGM Africa Lines and CMA CGM Intermodal Department. As an inland solutions provider, CCIS contributes to developing a comprehensive, efficient and competitive door-to-door service offer.

In 2011, CCIS opened its first logistics platform, TCD in Dakar, Senegal which was expanded in 2012 with the opening of TCD2. Since then other hubs have been set up: CC2T in Abidjan, Côte d’Ivoire in 2012, 3CTC in Douala, Cameroon and CC Inter Africa, South Africa in 2014 and lastly, at the beginning of 2015 CCIS Burkina Faso and CCIS Mali, gradually ramping up CCIS’s presence in Africa.

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RegionalIRU Report On ‘Transit Costs in East and Southern Africa’The International Road Transport Organisation (IRU) says its recent study released on September 29th, ‘Transit Costs in East and Southern Africa’, has demonstrated how African countries implementing the TIR Convention can reduce the costs of trade in southern and eastern Africa by hundreds of dollars per container, thus saving billions of dollars and increasing GDP in African countries. The results show that TIR is up to 16 times less expensive than the national bond system on the Walvis Bay-Ndola-Lubumbashi Corridor, and is also substantially more cost efficient on the three other African trade corridors in the study.

TIR, the world’s only universal customs transit system and one of the most successful international transport conventions, has a big role to play in reducing the costs of trade. TIR makes border crossings faster, more secure and more efficient, reducing transport costs, and boosting trade and development.

Regionally the TIR Convention is gaining momentum with government authorities and businesses on African’s trade corridors. IRU is working closely with stakeholders in Kenya, Uganda, Tanzania, Zambia and Namibia to analyse the potential benefits of TIR and to work towards accession and implementation.

RESOURCES: The ReportThe report analyses the comparative costs of using a national bond, the Common Market for East and Southern Africa (COMESA) Regional Customs Transit Guarantee (RCTG) Carnet, and the IRU TIR Carnet, for two types of cargo (containerised load and tanker transporting liquid bulk). The comparisons are along 4-major transit corridor routes; namely North South Corridor (Durban to Lubumbashi), Walvis Bay-Ndola-Lubumbashi Corridor, Dar Corridor (Dar es Salaam to Lubumbashi) and the Northern Corridor (Mombasa to Kigali).

To access the report view the IRU website at: https://www.iru.org/sites/default/files/2016-09/0352%20Africa%20report%20v2%20_web.pdf

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EASTERN & SOUTHERN AFRICACORRIDOR & TRADE NEWS

East & Central Africa Roads and Rail Infrastructure SummitThe 7th East & Central Africa Roads and Rail Infrastructure Summit 2016 was held on 27th September in Dar es Salaam organised by Magenta Global.

The event was a platform to get the latest update on transport and investment policies, priority projects, procurement opportunities, project partnership and investment in the emerging roads and rail transport infrastructure sector of East & Central Africa. Discussions focused on challenges and bottlenecks and the future use of infrastructure as a key aspect for regional economic growth.

The event provided an authoritative platform to synergize, strategize and reshape discussions to inspire new blueprints to improve infrastructure which could increase economic growth by 2% a year. Although major challenges still exist, concerted efforts by various governments in the region bodes well for all stakeholders to radically improve the quality, connectivity and sustainability of the transport infrastructure.

Projects such as the Standard Gauge, the Dar Es Salaam-Isaka-Kigali/Keza-Musongati [DIKKM] Railway Project, the Lamu Port Southern Sudan-Ethiopia Transport [LAPSSET] Corridor project and the Central Corridor development signal that the region is moving forward. For example in Kenya, the government expects the construction of a new railway from Mombasa port to Nairobi will boost economic growth by 1.5% annually and reduce the costs of moving freight by 60%.

Improving transportation connectivity between East and Central Africa holds the key to overall development of the region, paving the way for splendid opportunities for business and trade.

[EA Business Week 18/09/16]

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KenyaMombasa Port Transhipment Traffic Drops By 9.5%Transhipment traffic dropped by 9.5% in H1 to June raising concerns on the future of the segment which has set Mombasa port aside as a regional hub. Kenya Ports Authority (KPA) noted transhipment traffic dropped to 260,444T from 287,952T in 2015. The ports include Dar es Salaam, Pemba, Mogadishu and Mauritius Island. A multiagency taskforce has been formed to look into ways of revamping transhipment traffic through the Port of Mombasa and are developing an action plan on the activities to be undertaken to recapture this market niche.

KPA had earlier in the year stated it was eyeing higher transhipment volumes assisted by the second container terminal in Mombasa. Shipping lines have previously asked KPA to ease the procedure and cost of transhipment, adding that most of those engaging in the business at Mombasa port mostly consider convenience rather than commercial reasons. Transhipment cargo has grown nearly fivefold since 2013 when the port handled 100,374T.

This growth played a key role in pushing the total container traffic handled at the port to over one million TEU in 2014. [Business Daily 22/09/16]

Kenya/South AfricaSouth Africa And Kenya Easing Border TradeSouth Africa and Kenya vowed to “soften borders” between the 2-regional powerhouses by easing trade and visa barriers, part of ongoing efforts to boost low levels of commerce within Africa. President Zuma made the first-ever state visit by a South African president to Kenya where he held talks with President Uhuru Kenyatta. The leaders agreed to progressively remove all barriers to trade between the two countries. Kenyatta tackled issues of high levies on tea exports from Kenya as well as restrictions against other products. The leaders also discussed efforts to make it easier for Kenyans to travel to and work in South Africa.

The visit came as part of the broader agenda of the AU (African Union) to soften the borders in the continent so we could enhance intra-trade. Bureaucracy, exorbitant customs fees, poor transport systems and a lack of infrastructure are all cited by observers as blockages to improved trade on the continent. However Kenya and South Africa are far from the continent’s worst performers and trade between the two is worth €500 million. South Africa is Kenya’s 4th source of imports, and over 60 South African companies operate in Kenya.

[Times Live 11/10/16]

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EASTERN & SOUTHERN AFRICACORRIDOR & TRADE NEWS

MozambiqueNorthern Corridor To Improve CapacityStarting in 2018 coal handling in Mozambique’s Northern corridor will increase from 8 million to 22 million t/yr as a result of new contracts with the Northern Logistic Corridor [NLC] and the Northern Development Corridor [NDC]. Addenda were signed by the Transport and Communications Minister, mining company Vale Moçambique and port and rail manager Portos e Caminhos de Ferro de Moçambique to improve the transport capacity of the Northern Corridor and ensure the viability of investments of over US$3 billion already made by concession-holders.

Under the agreements Brazil’s Vale will have exclusive access to financing to ensure that the operations on the railway line between the Moatize coal mines in Tete province and the port of Nacala-a-Velha, in Nampula, are more efficient and make the goods that use the route internationally competitive.

The Northern Corridor project connects Moatize, in Tete province and the port of Nacala-a-Velha, in Nampula, crossing through Malawi, of around 1,000 km of new railway built by the consortium.

[Macauhub/MZ 12/09/16]

TanzaniaDar Es Salaam, Kinshasa Trade PactTHE restoration of trade relations between Tanzania and Democratic Republic of Congo [DRC], following the visit of DRC President Joseph Kabila, is expected to foster stronger ties and boost freight forwarding. A drop in cargo volume through the Dar es Salaam port following the diversion of cargo through other cheaper regional ports has meant that cargo to and from DRC and Zambia dropped by 14.4% and 27.9% respectively. The market segments of the two countries contributed about 60 per cent of the port’s transit market share.

During the visit with host President Dr Magufuli, the Tanzania Freight Forwarders Association (TAFFA) thanked the move to extend the grace period for DRC-destined cargo from 14 to 30 days in which cargo at the port will be exempt. Meanwhile the Tanzania Investment Bank (TIB) will extend hours from 8:00 am to 11:00 pm and could further extend more time for service if there could be congestion of cargo at the port.

[Daily News 09/10/16]

UgandaURA Introduces BSmart Electronic Cargo Tracking System (ECTS)

Uganda Revenue Authority (URA) on September 26th signed a contract with Malaysia-based BSmart, an Electronic Cargo Tracking System (ECTS) developer. URA Commissioner General Doris Akol represented URA, while Stephen Teang signed for BSmart. By the end of 2016, goods moving along the northern corridor (Mombasa-Kigali) will be monitored in real time, curbing dumping, theft and other vices. Realizing ETCS’s immense benefits, Kenya and Rwanda are adopting the system.

Trademark East Africa [TMEA], which facilitates regional trade, is funding the expansion at over US$8 million. On implementation, Kenya, Rwanda and Uganda will jointly attach electronic seals onto cargo at Mombasa. ECTS comprises a central monitoring centre and e-seals which communicate with the centre whenever vehicles divert from geo-mapped routes or when goods are tampered with. Rapid response teams are dispatched when things go wrong.

[Observer 07/10/16]

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EthiopiaConstruction Of Ankober-Dulecha Road LaunchedThe construction of Ethiopia’s Ankober-Dulecha road has been launched. According to the Ethiopian Road Authority the project will see a total of 40 km constructed by local firm Sunshine Construction PLC and will link Amhara with Afar state at a cost of US$38.65 million. The new corridor will trim down the loop from Djibuti to Debre Berhan via Addis Ababa detouring to drive direct from Awash-Arba via Dulecha -Ankober to Debre Berhan. Meanwhile the 53 km Dulche-Awash road is to be constructed at a cost 693.5 million Birr. Construction has been awarded to the Ethiopia Construction Works Cooperation.

[CR 13/09/16]

Mombasa-Nairobi-Addis Ababa Road Corridor Phase IIIThe Government of Ethiopia has received a loan from the African Development Fund [ADF] towards the cost of the Mombasa-Nairobi-Addis Ababa Road Corridor Phase III. Works covered include Lot 2 for the Chuko – Yirgachefe road (60km). Bidding documents are available from the Ethiopian Roads Authority before close on November 8th.

[AfDB 29/09/16]

KenyaKenya To Expand Key Nairobi-Mombasa Highway To Boost TradeThe Kenyan government noted plans to expand the 485km Nairobi-Mombasa highway from the current single lane to a 6-lane modern highway is moving forward after Bechtel Corp., the United States’ largest construction and civil engineering firm signed had signed a letter of interest in the project. It will be supported by the United States’ Import-Export Bank and OPIC. OPIC would insure Bechtel against breach of contract. The road will be built through a Public Private Partnership [PPP].

The project is intended to speed up commerce and travel between Kenya’s main port of Mombasa and cities throughout East Africa. It is crucial for trade in the region since it connects the port to Nairobi and onward to the hinterland markets, including landlocked Uganda, Rwanda and Burundi. More than 90% of goods landing at Mombasa port are transported over the road and over a parallel railway line, underlining its importance. Nearly all of Uganda, Rwanda, Burundi and South Sudan’s imported goods reach their destinations via this road.

[Global Times 25/09/16]

200 Police Officers To Escort Cargo On Northern CorridorInspector-General of Police Joseph Boinnet has deployed 200 police officers to escort cargo on the Northern Corridor. The officers will work with the Kenya Transporters Association (KTA) to ensure goods transported on the corridor, mainly from the port of Mombasa, is secured. Stakeholders will meet with the security agencies to discuss how they will work together. The move will go a long way to enhance efficiency at the port of Mombasa and make promote the corridor as a preferred route by trade partners. The Northern Corridor connects Kenya from the port of Mombasa to Uganda, Rwanda, Burundi, the Democratic Republic of Congo [DRC] and South Sudan.

[Daily Nation 11/10/16]

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EASTERN & SOUTHERN AFRICAROAD

Kenya

Plans Unveiled For Mombasa-Nairobi 6-Lane SuperhighwayPlanned expansion of the Nairobi-Mombasa road into a 6-lane super-highway is expected to begin in the next couple of months with the invitation of bids for the project. Transport and Infrastructure secretary James Macharia said the government planned to build the road through a Public Private Partnership (PPP), but fell short of indicating whether it will be Kenya’s first pay-for-use highway as has been suggested. The target is to complete the whole project by 2022.

Expansion of the 2-lane road into a 6-lane modern highway should offer relief to motorists on the busy highway that links Kenya’s capital Nairobi to the port of Mombasa. The ministry will soon make public the framework for the partnership, noting the road would begin with a 12-lane highway on Mombasa Island before narrowing into a 6-lane highway to Nairobi. The 485-km highway is part of the Great North Road that moves more than 50% of all goods traded in East Africa. Nearly all of Uganda, Rwanda, Burundi and South Sudan’s imported goods reach their destinations via this road, making it an important regional economic asset.

More than 90% of all goods landing at Mombasa port are ferried by road, underlining the build-up of pressure on it as traffic volumes continue to grow. The port handled 1.07 million TEU last year, up from 695,000 TEUs in 2010, signifying rising trade volumes in the region. Expansion of the road, together with the ongoing construction of the Standard Gauge Railway (SGR), are part of a plan to create an integrated transport system for the port. It is expected that the Mombasa-Nairobi section of the SGR, expected to be ready by June 2017, will take a huge chunk of cargo and passenger traffic out of the highway.

If the road is funded under an annuity financing model, contractors will access government guaranteed loans from banks to enabling them to design, build and maintain the roads. The Treasury then pays the loans in equal instalments (annuity) over a period of time, starting from the time of completion. The Kenya National Highways Authority (KeNHA) early last month indicated that it was in talks with the American Export-Import bank to fund the project as a PPP.

Besides the Nairobi-Mombasa highway, the government also plans to expand the 157km Nairobi-Nakuru highway into a dual carriage status under a PPP model to improve the flow of traffic to Western Kenya and beyond.

[Daily Nation 22/09/16]12

South AfricaSanral Appoints New CEOThe South African National Roads Agency Limited (Sanral) has appointed Skhumbuzo Macozoma as CEO, to succeed Nazir Alli who is retiring. The position commenced Oct 1st with a number of challenges including the Western Cape freeway toll project, the N2 Wild Coast toll road and the N3 De Beers Pass route.

[Engineering News 30/09/16]

N3/N2 Freeway Upgrade DelayedThe upgrade of N3 and N2 freeways in South Africa’s Durban city is expected to face delays according to South African National Road Agency [Sanral] due to the lack of funds. Sanral noted the government had not allocated funds although a date has been set for the project to kick off by the end of August. Both roads are operating at full capacity. Upgrades will see lanes increase by up to 5-lanes in each direction to accommodate future traffic growth.

[CR 16/09/16]

UgandaNew Road To Boost Trade With KenyaTrade between Uganda and Kenya is projected to increase as the construction of a new and shorter route from Mbale to the Lwakaka border post in eastern Uganda kicks off. A contract-signing ceremony was held between Uganda National Roads Authority and Chinese contractor, China State Construction Engineering Corporation. The 44.5km road will be constructed using a Shs 140bn loan from the African Development Bank and it will be completed within 2-years. The move will see the quantity of exports and imports through Kenya increase.

[Observer 28/09/16]

UNRA To Upgrade Luwero-Nakaseke RoadThe Uganda National Roads Authority (UNRA) is seeking parliamentary approval of a US$40 million loan to tarmac the 29km Luweero–Butalangu road which links Luwero to neighbouring Nakaseke District. Half of the required loan will be from the Arab Bank for Economic Development in Africa (BADEA) while another half will come from the Opec Fund for International Development (OFID). Construction will take 2-years.

[New Vision 04/10/16]

13


ZambiaConsultancy For Chinsali-Nakonde Road Rehabilitation Project The Zambian Government has received financing from the African Development Bank [AfDB] toward the cost of the 210-km Chinsali-Nakonde Road Rehabilitation Project [North-South Corridor] and will apply part of the proceeds for Consultancy Services for the monitoring and evaluation of the projects implementation by the Road Development Agency [RDA].

[AfDB 21/09/16]

Mukobeko-Ngabwe Road Upgrade StartsGovernment has awarded a K208 million contract to SEBO Construction Company to upgrade the 160km Mukobeko-Ngabwe road in the Central Province. The contract runs from October 6th for 1-year.

[Daily Mail 09/10/16]

Zambia/ZimbabweLusaka-Chirundu RoadRehabilitation works on the Lusaka-Chirundu road Link 4 being constructed by China Henan International Corporation (CHICO) at the total cost of US$23.4 million has reached an advanced stage. Works include approximately 2-km of the trans frontier works across the border into Zimbabwe. The project is funded by the Africa Development Bank (AfDB).

14

ZimbabweLafarge Agrees To Provide Resources For Road RehabilitationLafarge Cement Zimbabwe has agreed to provide some of their resources, mainly in technical expertise, to try and help in the rehabilitation of the country’s road infrastructure. Lafarge Cement Zimbabwe is a subsidiary of the LafargeHolcim group, which is headquartered in Switzerland. The company held a 3-day roads capacity building workshop in September. The workshop was part of an initiative to provide newer technologies to rehabilitate the road infrastructure in the country.

[News Day 29/09/16]

Motorists Brace For New Road SignsZimbabwe is to get uniform traffic control devices including road markings, signs and traffic signals. The Traffic Safety Council of Zimbabwe (TSCZ) will launch a new Highway Code will be in line with the SADC Bloc’s Protocol on Transport.

[Bulawayo 03/10/16]

Ministers Call For Haulage Truck BanRecently, Zimbabwe’s Transport Minister announced the country planned to ban haulage trucks from transporting “bulky goods” to protect national roads. A new regulation is reportedly in the works to force transporters to use rail and not road for over-weight consignments.

[Southern Times 07/10/16]

15


RegionalAfrican Union Signs Agreement On High-Speed Railway NetworkA signing ceremony has taken place this month to kick-start the Integrated High Speed Train Network, a flagship project of Africa’s continental Agenda 2063 and the 5-Year Action Plan. The project is to be run between the African Union Commission [AUC] and China following the Memorandum of Understanding [MoU] signed between the 2-sides in January 2015, to promote cooperation in railway, road, regional aviation networks and industrialization fields. The Chairperson of the AUC, Dr. Nkosazana Dlamini Zuma, and an Envoy of the Chinese President, Minister of National Development and Reform Commission (NDRC), Mr. XU Shaoshi, was held on October 5th. Milestone to be achieved are:

- Development and agreement on relevant laws and regulations regarding railway cooperation. - The establishment of a Project Implementation Unit (PIU) by the AUC in 6-12 months. - Cooperation between African and Chinese enterprises, particularly, in local enterprise supplier development

and development of advanced manufacturing - Transfer of technology, capacity-building for local manufacturing and content. - Chinese Government to lead the formation of a Chinese group for Sino-Africa cooperation in railway and

high-speed railway, to integrate resources of financing institutions, railway construction companies and railway operation management companies.

[Mareeg 07/10/16] 16

EASTERN & SOUTHERN AFRICARAIL

EthiopiaNew US$4 Billion Ethiopia-Djibouti Railway CompletedConstruction of a Chinese-funded electric railway, linking Ethiopia’s capital along its main trading route to neighboring Djibouti, has been completed, providing the African nation with much-needed improved rail access to a seaport. The US$4 billion project, implemented by China Railway Engineering Corporation (CREC) and China Civil Engineering Construction Corp. will be commissioned next month.

FundingIn total 70% of the total cost was financed by the Exim Bank of China, the China Development Bank, and the Industrial and Commercial Bank of China while 30% was covered by the Ethiopian government. The rail link is part of Ethiopia’s largely Chinese-funded US$28 billion ambitious growth plan to revamp its infrastructure by 2020, an expansion that includes building 5,000 km of railway lines. The country has so far constructed some 2400 km of rail roads and will construct 2600 km during the remaining Second Growth and Transformation Plan [GTP-2] period.

Project DetailsThe 656 km Addis Ababa–Djibouti line is double-track from Addis Ababa to Adama city (115 km) and single-track from Adama to Djibouti. The electrified line for both freight and passenger transportation will allow landlocked Ethiopia to easily access to world markets and further boost the country’s trade volume hence it reduces travel time by over 50%. Driven by cash-crop fueled agriculture and a growing urban population, Ethiopia posted average economic growth of 9.8% a year during the first half of this decade.

Since landlocked Ethiopia cut ties with Eritrea following the 1998-2000 border war, Addis Ababa has become highly dependent on Djibouti sea port to carryout around 90% its total import-export trades. When Ethiopia-Djibouti railroad goes to full function:

- Avoid delays in the transport of goods by over 50% - 1,171 wagons with a capacity to transport 3,500T at any one time - 41 locomotives in full service following 3-6 months trials - Freight trains travel at 90 km/hr - Djibouti to Addis Ababa in only 10-12 hrs down from 3-7 days using former Diesel locomotives - Cross-border railroad project is part of the East to West Trans-Africa railway network - As well as Djibouti, Ethiopia will eventually be connected with Kenya, Sudan and South Sudan

The completion of the project comes months after Ethiopia unveiled a US$425 million Chinese-built light railway in Addis Ababa, the first such electrified light transit system in sub-Saharan Africa.

[Sudan Tribune 25/09/16]

17


KenyaConstruction Of Standard Gauge Rail To ContinueKenya noted construction of its mega Standard Gauge Railway [SGR] line will commence on 19th October despite delays by the environmental tribunal. Kenya’s Transport and Infrastructure Cabinet Secretary, James Macharia, said that phase 2A of the SGR project running from Nairobi to Naivasha was supposed to be launched in September but that was delayed by a petition filed by activists including the Kenya Coalition for Wildlife Conservation. Cabinet has since presented to them 7-options for the route and one route has been picked.

[CR 26/09/16]

Mozambique/MalawiNacala Corridor Signaling To Go Live This YearSiemens Rail Automation expects to commission the Positive Train Control signalling system it has installed on the Nacala Corridor linking Malawi and Mozambique by the end of the year. The supplier says that the Trainguard Sentinel PTC it is supplying to the Corredor Logístico Integrado de Nacala Joint Venture [JV] of Mozambique state railway CFM (20%) and Brazilian mining firm Vale (80%) is ‘a combination of North American train control technology and European standards’.

Under a €70m contract announced in November 2013, Siemens is to provide its Train Sentinel Positive Train Control, train integrity monitoring, Westrace solid-state interlockings and telecoms based on a microwave network with Tetra track-to-train data transmission.

An ultra-high frequency radio link is provided to ensure end-of-train detection can be maintained; a priority for Siemens was to ensure minimal lineside assets were required, ruling out the use of track-mounted balises in plain line sections for example. Siemens has also fitted out a control centre in Nacala and is providing one year of maintenance.

The Nacala project has seen existing 1,067 mm gauge lines upgraded and a new line built in Malawi as part of the US$1.1 billion development of a 912 km heavy haul corridor which will link coal mines at Moatize with the new deepwater port of Nacala-à-Velha. Test trains began running along the route in November 2014, but the extra capacity made available by PTC will enable the railway to match the demand for coal transhipment as the port complex comes fully on-stream.

[Railway Gazette 29/09/16]

18

MozambiqueIFC Close To US$2.7 Billion Debt Refinancing For Nacala RailwayThe International Finance Corporation [IFC], the private lending arm of the World Bank, expects to close a US$2.7-billion debt refinancing for the Nacala Corridor railway project in Mozambique by the end of Q1 2017. The refinancing could help to ease balance sheet pressure on Brazilian miner Vale which is developing the railway and a coal mine in the region.

Last month Vale agreed new terms for the sale of stakes in the mine and railway project to fellow shareholder Mitsui & Co, a deal which hinges on the approval of a project finance plan. The newly built 912 km line, which links Vale’s Moatize coal mine in Tete in the north of Mozambique to the Nacala port on the east coast and crosses over into Malawi, will also be used to move general freight and passengers. The project has an initial capacity of transporting up to 22-million tonnes a year of which 18-million will be allotted to Vale’s Moatize mine. The IFC is looking to commit up to US$200 million on its own account for the deal, in which it was the co-lead arranger together with the African Development Bank and the Japan Bank for International Cooperation.


Nyusi Inaugurates Rail Bridge Over UmbeluziMozambican President Filipe Nyusi inaugurated a new 362m rail bridge over the Umbeluzi river in Boane district, Maputo province. The bridge, built by Caminhos de Ferro de Moçambique [CFM], is on the Goba line, which links the port of Maputo to landlocked Swaziland. The new bridge will support a weight of 27T per axle, compared with only 20T on the old bridge. Trains of over 100 wagons can pass along the new bridge, compared with trains of only 50 wagons on the old one. The most significant cargo expected to use the bridge is sugar from Swaziland (estimated at 300,000 T/yr), and Mozambican limestone from Salamanga (600,000 T/yr).

[AIM 28/09/16]

Rising Coal Prices Could Improve Prospects For Infrastructure Projects The past slowdown of infrastructure projects, coupled with the drop in commodity prices and austerity measures implemented by the government to deal with budget problems, are considered by economists to be the main factors of a slowdown of the Mozambican economy – to 3.6% growth in 2016 compared with an annual average of 7.2% in the last decade.

Low commodity prices, which have since started to recover, have diminished confidence in the rapid implementation of infrastructure projects such as the one recently signed by Mozambique, Botswana and Zimbabwe to build a 1,600-km railway from the deep-water port of Techobanine in southern Maputo province, connecting it to Francistown in eastern Botswana through Zimbabwe.

The international consortium responsible for the port project, costing an estimated US$1 billion, is part of the China Harbour Engineering Co, in addition to Bela Vista Holdings (BVH) and Transnet, a public railway company from South Africa. Mozambique and Botswana initially agreed to this project in 2010, providing total financing of US$7 billion, the construction of 1,100 km of rail link, with capacity to process 200 million tons of cargo per year, ranging from general bulk to ores, fuel and passengers.

Botswana has said it is available to finance construction of the railway line, which would create distribution capacity for its coal mines in the east. And for Zimbabwe, the facility also opens up opportunities for export growth, while for Mozambique it allows the development of a new port which is expected to involve private investors.

[Macauhub 26/09/16]

19


NamibiaScramble For Lucrative Rail TenderThree contracts worth over N$1.4 billion to supply 60,000 tonnes of railway materials to revamp the Walvis Bay-Tsumeb line has attracted 225 bids. The tender was split into three and bidding companies will have to supply 20,000 tonnes per contract. The Walvis Bay-Kranzberg tender attracted 74 companies and the Kranzberg-Otjiwarongo stretch received 75 bids.

Some onlookers noted that at present Namibian firms are struggling to deliver 4,000 tonnes of rails in a year. There are issues with the amount of available port storage although Namport noted the facility has a capacity to offload and temporarily store rail of between 7,000-10,000 tonnes per shipment or 60,000 tonnes over a year. However, the evacuation of the rail from the port is dependent on other players in the logistics chain, and will require thorough planning between Namport and other stakeholders on this project.

[Namibian 19/09/16]20

South AfricaHybrid Trucks To Run On Railways Transnet has signed an agreement which will allow privately-owned road trucks to run over its rail network. A move which could revolutionise the industry. The project - a Joint Venture [JV] between Transnet Freight Rail and RailRunner SA - will see a test train of truck trailers being hauled on rail bogies on the Cape corridor in the first half of 2017. This means the containers do not need to be lifted off the truck onto the railway flat cars. Instead, the truck’s trailer is suspended on the rail bogies.

Transnet will supply the locomotives and operate the trains. A typical RailRunner train would consist of 40 truck trailers running on the bogies. The road truck will then move the trailer over the “last mile” to its final destination.

[Sunday Times/Mybroadband 18/09/16]

Gautrain Expansion Project Feasibility Study CompletedGauteng Roads and Transport MEC Dr Ismail Vadi noted the feasibility study on the possible expansion of the Gautrain rail network has been completed. The proposed routes under investigation include a link from Lanseria through Honeydew to Sandton, an additional line from Mamelodi, north-east of Pretoria, to Naledi, west of Johannesburg, and extending the service from the OR Tambo International Airport to Boksburg. Once the political consultation processes is completed with the national government, the report will be made public.


21


TanzaniaTAZARA Invites Investors Re US$1.2 Billion Investment GapThe Tanzania-Zambia Railway Authority (TAZARA) needs about US$250 million of investments in the short term and about US$1.2 billion in the long term, to get back to peak performance. With that level of investment in track, equipment and rolling stock, the target was a breakeven volume of freight of 600,000 T/yr in the short-run and 2-million T/yr in the next 5-years. TAZARA noted that the private sector could take advantage of the Public-Private Partnership (PPP) models to partner with it on future projects.

Meanwhile TAZARA has been focusing on transforming the application of freight rates by adopting a more flexible tariff regime that was more responsive to macro-economic conditions and market trends. It has also enhanced rebranding efforts, position itself closer to the customers and forging strategic alliances with neighbouring railway operators, the Port of Dar es Salaam, shippers and other logistics firms.


AfDB Seeks Investors For US$7.6-Billion Rail LineThe African Development Bank [AfDB] will hold an investors’ roadshow to attract as much as US$7.6 billion in financing for a 2,200-km railway line linking Tanzania’s port in Dar es Salaam with neighbouring landlocked countries. The lender is teaming up with the World Economic Forum [WEF] to help find investors to bankroll the line. The Export-Import Bank of China may lend Tanzania funds to finance the railway. Meanwhile the AfDB wants to co-finance the project, with a strategy to “catalyze financing” and encourage other investors to come on board.

A TAZARA management team is to visit China during October for the talks. Negotiations on revamping TAZARA to make it attractive to Chinese investors are at an advanced stage. The only pending issue is the form of PPP that will form part of the contractual terms.

According to Moody’s Investors Service the planned standard gauge line is “credit positive” and once operational may cement Tanzania’s position as a logistics hub for Eastern Africa. Although some analysts say there’s uncertainty about whether regional demand will justify both Kenya and Tanzania operating similar rail networks.

The Tanzania line will run from Dar es Salaam port to Rwanda’s capital, Kigali. Two other lines will branch off to Musongati in Burundi and to Mwanza port on the shores of Lake Victoria to service Ugandan shippers. The line to Kigali is expected to ultimately connect to the eastern Democratic Republic of Congo [DRC]. Tanzania’s economy, East Africa’s largest after Kenya, is expected to grow 7.2% this year, according to the International Monetary Fund [IMF].

[Bloomberg 27/09/16]

22

Tanzania/ZambiaTAZARA Aims At Tripling Cargo TonnageThe Tanzania-Zambia Railway Authority (TAZARA) plans to increase its cargo haulage capacity from 600,000 T/yr to 2-million T/yr in the next 5-years as part of efforts to be more commercially viable. The move follows a joint partnership entered between TAZARA and Zambia Cargo and Logistics Limited (ZCL) (formerly known as MOFED Tanzania Ltd) to offer a complete loop of logistics services.

TAZARA, Managing Director Engineer Bruno Ching’andu, noted an amendment is underway to the law governing the establishment of the authority [TAZARA Act of 1995] to meet its commercial objectives to compete in the East and Southern transport market. The authority it is set to undergo major changes to improve its performance and benefit from economies of the 2-countries. Currently the authority only gets 5% share of Dar es Salaam port cargo but strategically business should reach up to 60% of the market share via the port. Annual traffic was only 88,000 MT in fiscal year 2015, less than 2% of the railway’s design capacity of 5 million T/yr.

The rehabilitation of 400 wagons has boosted and improved the services delivery with the transit time average from 30 to 6 days with maximum security and safety. The authority has the capacity to move as much as 1,100 tonnes per full trainload in one haul. And the purchasing of new track equipment, locomotives worth US$250 million will target northern Zambia and Southern Eastern Tanzania.

[EA Business Week 08/10/16]23


TanzaniaIsaka Dry PortTanzania Ports Authority (TPA) management has assured the Democratic Republic of Congo (DRC) business community that the future Isaka dry port will mean traders will not necessarily travel all the way to Dar es Salaam to follow up their cargo. The facility will offer a rail connection, revenue office centre and other services to cater for the business community. Isaka is a small town and station on the Mwanza railway line of Tanzania which connects to the seaport of Dar es Salaam. It is located in Kahama Rural District of Shinyanga Region.


UgandaChina Signs FTZ Zone MOU With UgandaUganda Free Zones Authority [UFZA] and a Chinese firm, Guangzhou DongSong Energy Group Company Limited have signed a Memorandum of Understanding [MoU] to develop a Free Trade Zone [FTZ] in Sukulu, Tororo District. UFZA will oversee this establishment and supervise the activities therein as stipulated in the Free Zones Act, 2014.

The Sukulu Phosphate Comprehensive Industrial Development Project will be set up by a consortium of Guangzhou Dongsong Energy Group Company Limited and China-Africa Fund for Industrial Cooperation Company Limited. The project will have a dressing plant, a phosphate fertilizer plant, a steel mill, a sulfuric acid plant, a hydro-metallurgical plant, a mineral powder grinding plant, a brick-making factory, a glass-making factory, a packaging plant, an Iron Tower Plant, among others.

[EA Business Week 20/09/16]

ZimbabweGovernment Bolsters ZIMRA OperationsGovernment will continue strengthening operations of the Zimbabwe Revenue Authority (ZIMRA) in an effort to fight corruption at the country’s border posts. A US$600 000 security upgrade at Beitbridge Border Post is beginning to pay dividends, with corrupt officials being exposed mainly by the closed circuit television (CCTV). Meanwhile the Electronic Single Window System, has provided a platform, which enables all Government agencies operating at ports of entry and exit to coordinate their activities to reduce turnaround time.

[Herald 26/09/16]

Isaka

Dar es Salaam

Democratic Republic of Congo

24

EASTERN & SOUTHERN AFRICAOSBP, SEZ, FTZ & ICD TERMINALS

RegionalNEPAD Held Meeting On West African Corridor Management

The NEPAD Regional Integration and Trade Department held a 2-day meeting in September at the African Development Bank [AfDB] headquarters in Abidjan, with development partners, the NEPAD Planning and Coordination Agency [NPCA], the Economic Community of West African States [ECOWAS], government officials and representatives of customs and revenue authorities. The meeting discussed a more coordinated approach to the management of West African corridors.

The event, jointly organized by above and the Accelerating Trade in West Africa [ATWA] project brought together stakeholders, financiers and technicians to help streamline views, review the latest corridor performance metrics and foster synergies and create a platform for better co-ordination and efficiency in West African Corridor development and management. It focused on 2-key initiatives:

- Abidjan-Lagos Corridor development - Accelerating Trade in West Africa [ATWA] project corridors: Abidjan-Ouagadougou, Tema-Ouagadougou and Lomé-

Ouagadougou

Delegates from the 5-member countries – Nigeria, Benin, Togo, Ghana and Côte d’Ivoire – gave status reports of their implementation activities on the corridor, while highlighting areas for further improvement. Results from a performance analysis study found that all 3-corridors have seen improvements in both costs and time. The average corridor costs have gone down by 16% and average corridor times by 6% over the last 4 to 8 years. In terms of cost distribution, the survey indicated that trucking costs absorb about 65% of the total corridor transport costs; ports take 20% while border crossings and clearance at the inland terminal account for about 15% of the total corridor costs for import. The study found that export is generally less expensive and faster than import. Other indicators were also shared such as process and travel time to move goods along the corridors and rail versus road indicators.

In terms of trade facilitation, the countries called for the creation of a knowledge- and data-sharing platform. The representatives also espoused the need for effective implementation of rules and protocols to facilitate free movement of people and goods. The next coordination meeting will be held in Accra, Ghana, on September 27-28, 2017.

The Abidjan-Lagos Corridor, a flagship project of the Programme for Infrastructure Development in Africa [PIDA], is the busiest corridor in West Africa. The 6-lane, 1,028-km highway will connect Abidjan, Accra, Lomé, Cotonou and Lagos, while serving landlocked countries and ports in the region. The corridor is one of the main economic drivers of West Africa with over 75% of economic activities in the ECOWAS region and a total population of 35 million inhabitants.

Experts agree that support to regional trade and integration in West Africa is substantial but fragmented. The meeting was therefore timely to ensure that the approach to the development of corridors is coherent and inclusive of all key players.

Accelerating Trade in West Africa [ATWA] is an initiative funded by the Danish and Dutch Ministries of Foreign Affairs aiming to establish a durable, multi-donor vehicle dedicated to advancing regional integration, expanding trade and lowering costs along key trade routes in West Africa. ATWA takes inspiration from East Africa, where eight development partners have pooled their support and established a single non-profit organisation working across the East African Community [EAC] to further its integration agenda. The organisation, TradeMark East Africa [TMEA], is a technical partner of the ATWA Project.

[AfDB 21/09/16]

RESOURCESTo view the latest ATWA report please view http://www.saana.com/wp-content/uploads/2015/03/ATWA-Stage-2-report_Part-I-Diagnostic_EN_4.pdf

25

WESTERN AFRICACORRIDOR & TRADE NEWS

Sierra LeoneMano River Union Transport CorridorsThe Republic of Sierra Leone has made a request for expressions of interest for the Mano River Union Rehabilitation of Bo-Bandajuma Road Project. Consultancy services are required for a study to identify trade facilitation needs and assessment of joint border operations within the MRU transport corridors. Funding has been received from the African Development Fund (ADF) and OPEC Fund for International Development (OFID).

The project will include a study to Identify Trade Facilitation needs and assessment of Joint Border Operations within the MRU Transport Corridor with the objective of collaborating with the Mano River Union Secretariat, Sierra Leone Roads Authority (SLRA) and other key stakeholders in MRU states to undertake an assessment of trade facilitation needs for the region. The study aims at identifying Trade facilitation bottlenecks and develop an action plan for implementing trade facilitation measures within the member states.

[AfDB 04/10/16]26

NigeriaNo New Roads Until Existing Projects Are CompletedThe Minister of Works, Power and Housing, Babatunde Fashola, has stated that his ministry will not award any new contract for the construction or rehabilitation of federal roads until existing ones are completed. Attention is being given to roads that have economic significance such as the Lagos-Ibadan expressway.

[Premium Times 05/10/16]

Sierra LeoneFeasibility Study For Mano River Union RoadsThe Government of the Republic of Sierra Leone has received financing from the African Development Fund (ADF), OPEC Fund for International Development (OFID) and government of Sierra Leone towards the cost of the Mano River Union Rehabilitation of Bo-Bandajuma Road Project and intends to apply part of the agreed amounts of these financing to payment under the contract for consultancy services for Feasibility Study and Detailed Engineering Design for the following roads:

- Reconstruction of the Kailahun-Koindu (55km) - Koindu – Guinea Border (11.34km) - Koindu – Liberia Border (9km)

[AfDB 04/10/16]

27

WESTERN AFRICAROAD

GhanaGPHA To Develop Western Railway The Ghana Ports and Habours Authority [GPHA] is to sign a concession agreement with the Ghana Railway Development Authority (GRDA) to redevelop the Western Railway.

The move is aimed at enhancing transportation of goods and services from communities along the western belt to the port and also to improve transportation of goods through the nation’s waters to other countries.

The agreement which is expected to be signed by the end of the year will enable the Authority to hand over the Western Rail Line to GPHA for development through a Public Private Partnership [PPP]. Director of Tema Port, Jacob Adorkor, disclosed this at the opening of recent the West Africa Ports Evolution Seminar in Accra.

Meanwhile a feasibility study has been completed on another rail project which will link the Tema Port to Akosombo in the Eastern Region as part of measures by the Authority to enhance movement of goods from the Volta Lake to the port.

[My Joy 14/09/16]

Rehab Of Sekondi/Takoradi Railway Lines Almost CompleteRehabilitation work on the Sekondi/Takoradi and Takoradi Port railway lines is more than 85% complete, the Ghana Railway Development Authority (GRDA) has said. The project, which is expected to be completed by the end of this year, will ease traffic congestion in the metropolis. The GRDA is expected to take delivery of 2-new diesel engines soon. The old dilapidated stations and administration blocks in Takoradi, Kojokrom and Sekondi have all been reconstructed into new modern passenger terminals.

There will be four stops at Sekondi, Ketan, Bakado and Essaman as well as the main terminal near New Takoradi. Aside from passenger services, 2-container terminals at the Sekondi Station and former Prime Wood are to be created for easy evacuation of goods from the port of Takoradi by rail.

[Graphic 11/10/16]

28

WESTERN AFRICARAIL

NigeriaGovernment Concession Narrow Gauge Lines To General ElectricThe Minister of Transportation noted negotiations were ongoing for the concessioning of the narrow gauge lines across the country to General Electric [GE]. The agreement is expected to be signed before January 2017.

We are negotiating to concession the old narrow gauge lines from Lagos, Kano, Funtua, Kaduna, Port Harcourt, Aba, Umuahia, Enugu, Makurdi, Jos, Bauchi, Gombe to Borno. The entire western and eastern lines will be rehabilitated but we will concession the project to GE who are bringing US$2 billion to embark on the project.

Rotimi Amaechi, Minister of Transportation

The minister said that the concessioning would be for a period of 20-25 years, stressing that GE would run it after reviving the lines and provide coaches on all the revived lines. The first segment of the Lagos-Kano Rail Line project to be completed will be Lagos-Ibadan for economic reasons and to decongest Lagos. The 1.56 km double gauge Lagos-Ibadan rail line will be completed in 36 months. Meanwhile the Kano-Kaduna rail line project will commence by early 2017.

[Vanguard 21/09/16]

“”

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WESTERN AFRICARAIL

CTBL-Watch - Issue 34 - October 2016

Documents

Transcript of CTBL-Watch - Issue 34 - October 2016