CTBL-WATCH
AFRICA
ISSUE 5 | MAY 2014
SOUTH AFRICA-SWAZILAND US$1.6 BILLION RAILWAY TO START BY MID-2017 Full Story On Page 18
CMA CGM / DELMAS African Inland Haulage
5
Namibia: Volumes Increase Along Walvis Bay Corridor
9
Kenya: Leaders Sign Up For New Mombasa-Nairobi Rail
17
CTBL-WATCH
AFRICA
ISSUE 5 | MAY 2014
Contents
03 /
Corridor Review
05 /
Group News
07 /
Eastern & Southern Africa
19 /
Western Africa
1
The African Inland Freight Report Brought to you by CMA CGM / DELMAS Marketing Website: www.delmas.com Email: lhv.marketing@delmas.net Tweet: @DelmasWeDeliver
Rachel Bennett
Dominic Rawle
CMA CGM / DELMAS African Inland Haulage
5
Namibia: Volumes Increase Along Walvis Bay Corridor
9
Kenya: Leaders Sign Up For New MombasaNairobi Rail
17
South Africa-Swaziland: US$1.6 Billion Railway to Start by Mid-2017
18
CMA CGM Marseille Head Office 4, Quai d’Arenc 13235 Marseille cedex 02 France Tel : +33 (0)4 88 91 90 00 www.cmacgm.com
Disclaimer of Liability CMA CGM / DELMAS 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 Delmas 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.
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CTBL AFRICA
CORRIDOR REVIEW Eastern & Southern Africa
3
Corridor
Current Situation
1
●
Kenya-Great Lakes/S. Sudan
The Group offers extensive CTBL services throughout Kenya. Our service to Juba, South Sudan, has reopened.
2
●
Tanzania-Great Lakes
Roads to Zambia, Rwanda are in good condition. A new opened corridor to Uganda via Mutukula is running well. Due to heavy rains over the last 2-months a vital bridge has broken impacting inland transport to Bujumbura [Burundi]. Trucks are now forced to use another route adding an additional 200-km equating to 1-2 days additional transit.
3
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Tanzania-Copper Belt
Roads through Mbeya offer a good alternative to the train to Ndola. The service into DRC has been affected by social problems at the border. The border post between Zambia and DRC has been closed for a few days. However traffic is back to normal but with delays expected from backlog. The situation could degenerate at any time. The Group is the only shipping line to have its own office in Lubumbashi and thanks to a newly appointed Branch Manager and staff we closely monitor the local situation.
4
●
Mozambique Nacala Corridor
A bond agreement with a local bank has opened up the Nacala rail corridor to Lilongwe and Blantyre. Due to bad rail service, congestion and wagon shortage our CTBL service to Malawi via Nacala is suspended until further notice. Please use Beira corridor. The Group offers an alternative via DAR ES SALAAM corridor to Malawi offering excellent transit time!
5
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Mozambique Beira Corridor
A bond agreement with customs is in place and we have our own broker at our agency office to shorten clearance time and trucking. We do offer efficient intermodal solutions under CTBL from Beira to Malawi an alternative to the closed Nacala corridor.
6
●
Mozambique Maputo Corridor
Running well. We are using our transporters bond at a fee of US$25/ container. The Maputo corridor is 100% dedicated to Harare by rail with transits depending on wagon availability.
7
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S. Africa Durban – Copper Belt
Competitive rates offered to final destination in South Africa. - Gaborone [Botswana] & Harare [Zimbabwe] by rail - Lusaka, Copperbelt [Zambia], Maseru [Lesotho], Gaborone [Botswana] by road All rates will be filled in Rand from now on. New trucking service to South Africa destination [banded by distance/radius] New destinations available eg Francistown [Botswana] by rail, Mbabane and Manzini [Swaziland], Kwekwe [Zimbabwe]. Swaziland corridor has now re-opened.
8
●
Namibia Walvis Bay – Copper Belt
The transport corridor from Walvis-Bay to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well.
Western Africa Corridor
Current Situation
Senegal-Mali
Good transit times at present.
Senegal-Guinea Bissau
Service is running well.
Guinea-Mali
Service suspended due to lack of reliable local service.
4
● ● ● ●
Cote d’Ivoire-Burkina/Mali
Due to the present difficulties in the evacuation of containers by rail via the Abidjan corridor, we recommend the road option for your shipments to Ouagadougou.
5
●
Ghana-Burkina
Tema-Ouagadougou service is now available as an additional option. The Tema corridor to Burkina is now the most competitive pricewise, with excellent transit time from Asia with AFEX service.
6
● ● ●
Togo-Burkina/Niger
Service is running well.
Benin-Burkina/Niger
Operating well.
Cameroon-Chad
There is a lack of trucks in Douala therefore CTBL transport by road to Chad is not recommended. Political security is still not 100% on this corridor. At present cargo for Chad is better to go by rail and road from N’Goundere as that is faster than the all road route.
Cameroon-CAR
Douala-Bangui is SUSPENDED due to the political deterioration in CAR.
Gabon Corridor
The Libreville-Franceville corridor is suspended temporarily and will reopen soon.
11
● ● ●
Congo Corridor
Pointe Noire- Brazzaville bookings currently suspended. The corridor is expected to open in July 2014.
12
●
DRC Corridor
Matadi-Kinshasa service running well with transits of 9 days.
1 2 3
7 8
9 10
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CMA CGM / DELMAS
AFRICAN GROUP NEWS CMA CGM / DELMAS African Inland Haulage Optimised Service Our CTBL service is founded on a secured and integrated logistic network up to delivery at final destination. This allows us to offer exceptional logistics solutions dedicated to our customers. CMA CGM Group owned offices and agencies network are available in all sub-Sahara African countries. Each is manned with skilled professionals offering expertise to ensure timely and safe delivery of its customers’ cargo. CMA CGM / DELMAS uses this widespread presence and experience in Africa to permanently monitor the trade in order to optimize routings taking into consideration local constraints and improve quality of service in its door-to-door multimodal services. Agency offices are on the pulse of custom clearance processes and regulations such as changes in the window clearance system, lodging of bonds, road payload rules, ECTN, scanning fees, tax certificates, restricted imports and can offer additional seasonal advice during specific commodity seasons or even difficulties faced during the rainy season. For instance a bond agreement with a local bank has opened up the Beira rail corridor to landlocked destinations in Zambia & Zimbabwe. We have gone to great lengths to ensure that the administrative side of shipping is convenient as possible. We are able to arrange your customs documentation, insurance and the payment of port terminal charges on your behalf. We also make sure that the documents are prepared and delivered on time. Agents have built on relationship with 3rd party logistic providers on pricing etc. A dedicated team is in place to ensure service quality for shipments using rail companies road hauliers that are well known and recognised on the market.
5
CTBL Enquiries For details about our service, bookings and all-in rate enquiries please contact your usual CMA CGM / DELMAS agent. For further service details view our Intermodal Services Africa website [https://www.delmas.com/products-services/ our-services/ctbl] or scanning the QR code:
Opening Of CMA CGM Botswana To cover the market of Botswana, the CMA CGM Shipping Agencies South Africa has opened a new office in Gaborone under the management of Kgomotso Batlanang. The creation of this new agency responds to the development of the Group in Southern Africa, and in particular services calling in South Africa: WAX, ASAF, MIDAS and SHAKA2 via Cape Town, MIDAS and SHAKA2 via Port Elizabeth and SHAKA2, MIDAS, RHINO EXPRESS and SEAS2 calling in Durban. Botswana has transformed itself to a middle-income country with a per capita GDP of US$16,800 in 2012. Diamond mining has fuelled much of the expansion and currently accounts for more than 33% of GDP, 70-80% of export earnings. Meanwhile 2-major investment services rank Botswana as the best credit risk in Africa. CMA CGM BOTSWANA AGENCIES LTD GABCON Rail Terminal Plot # 14415 147 Maakgadigau RD Gaborone West BOTSWANA Tel: (+26) 771 856 313 Email: gbe.kbatlanang@cma-cgm.com
Exports
$6.259 billion [2012] / $6.458 billion [2011]
Export commodities
Diamonds, copper, nickel, soda ash, meat, textiles
Imports
$6.938 billion [2012] / $6.275 billion [2011]
Import commodities
Foodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products
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EASTERN & SOUTHERN AFRICA
CORRIDOR NEWS RRA Eases Clearance Of Goods Made In EAC The implementation of the Single Customs Territory within EAC member states, that began with a focus on Mombasa Port where most goods entering EAC are immediately cleared, has been shifted to benefit goods that are locally-produced within the EAC member countries. With this initiative, Ugandan goods such as cement and Mukwano products are the first to benefit from this newly-introduced system. With effect from April 1, cement imported from Uganda to Rwanda, basically from Hima and Tororo, is cleared right from the factory with the aim of easing clearing process and save the importers’ time by reducing the declarations to only one. Previously, importers were required to make export declaration and secure a bond to cover transit goods. In addition, when goods reached at Rwandan borders, they would again lodge another declaration. This was a tiresome process, time consuming and involved high costs, especially in securing bonds. The new system has made life easier for importers since they are no longer required to pay bond charges meant to secure goods while in transit as has been the requirement for transiting consignments from factory to the final destination. The new facility now, requires cement importers to only give invoices, certificate of origin, parking list and other trade related documents to the clearing agent, who uses them to make one declaration while in Rwanda. After making the declaration and payment, the Ugandan customs officers based at the factory analyse it and immediately release the declared goods. When goods reach Rwandan border posts, customs officers remove the seal on the container or truck and they continue to the destination of sale. To ensure that taxpayers fully understand and enjoy the attached benefits, the Rwanda Revenue Authority has engaged various partners such as clearing agents and the private sector in sensitisation programmes. Clearance of EAC locally-made products will also be launched in other remaining EAC countries at the end of this month, and member states are in discussions to ensure it does not meet any hindrances. [New Times 15/04/14]
Northern Corridor Projects Summit A Northern Corridor Projects Summit was held in Nairobi directing partner states to develop a harmonised standard for cargo tracking systems to facilitate seamless flow of goods along the corridor. The new system aims at facilitating and easing the movement of goods across the East Africa Community [EAC]. Once the system is implemented, it will make it possible to track all vehicles transporting goods along the Northern and Central corridors and monitor the movement of transit cargo across the country to ensure that it reaches its intended destination. [New Times 07/05/14]
7
Kenya / Uganda Exports To Uganda Shrink For Second Year Kenya’s export to Uganda, its biggest exports destination, have reduced for a second year in line with a general decline in the country’s out-bound trade. Data in the Economic Survey 2014 shows Kenya exported goods worth Sh65.36 billion to Uganda last year, which was 3.1% [Sh2.09 billion] lower than the previous year’s Sh67.45 billion. Exports to the neighbouring country were highest in 2011 when they peaked at Sh75.95 billion, which was 13.9% higher than last year’s. Uganda was the largest destination of exports in the region among partner states with lime, cement and fabricated construction materials being its major imports from Kenya. Tanzania, the 2nd largest export destination for Kenya, also took up fewer goods in the year at Sh40.5 billion, which was Sh5.54 billion lower than in 2012. Soap, cleansing and polishing preparations were the leading exports to Tanzania during the review period. Kenya’s total exports decreased for the first time in 5-years to Sh502.29 billion, widening the country’s trade deficit further as exports increased faster to Sh1.41 trillion. Kenya’s exports are largely to other African countries which collectively took up 46.1% of its exports. Food and beverages contributed the most in export earnings. At Sh231 billion however, Kenya’s exports to African countries dropped for the first time since 2009 after a steady growth in the previous 4-years. Uganda, Tanzania, Egypt, Rwanda, Burundi and South Africa were the country’s top export destination in that order. Only Burundi and South Africa recorded growth in Kenyan imports over last year to Sh5.6 billion and Sh3.28 billion respectively. [The Star 02/05/14]
Kenya / Rwanda Single Customs Territory The single customs territory has helped reduce the days that the trucks spend on the way from Mombasa. Goods destining for Kigali are now cleared from the first point of which allows the cargo trucks to move freely. This has reduced travel time from Mombasa to Kigali from 22 days to just 4 days. The cost of transporting the cargo containers from Mombasa to Kigali has also dropped from US$5,000 to US$3,300. This month Kenya like Rwanda introduced the use of electronic single window system to help clear goods destined to other regional countries including Rwanda. The system is expected to centralise trade services such as tracking of goods, custom clearance and electronic payment, including through mobile money. The system will also integrate with Kenya Revenue Authority [KRA], making the clearance at Kenyan ports faster and easier. Mombasa handles over 50 per cent of Rwanda’s imports and exports. [New Times 07/05/14]
“
Our ultimate vision should be to implement an EAC regional single window platform. The benefits from this initiative may not be fully realised unless all of us in the region adopt national single window systems. Our brothers in Rwanda are already implementing a single window system and similar efforts are underway in Tanzania and Uganda.
”
Kenyan President Uhuru Kenyatta [At the launch of the facility]
8
EASTERN & SOUTHERN AFRICA
CORRIDOR NEWS
Namibia Volumes Increase Along Walvis Bay Corridor – Hits Record Volumes along the Walvis Bay corridors, averaged a monthly record of over 95,000 tonnes in February, which is the highest monthly volume ever. The growth in cargo volumes was also driven by the Walvis Bay-NdolaLubumbashi Development Corridor [WBNLDC], specifically the Democratic Republic Congo [DRC] market which achieved an impressive 10,000 tonnes for the month of February 2014. “Volumes along the TransKalahari Corridor for the Botswana and Zimbabwe market has also grown with much more consumables and construction material being transported through the port of Walvis Bay. Although markets such as Angola, Zimbabwe, Zambia and the DRC have experienced stronger growth than other markets, the Gauteng market is slowly on the rise.” Walvis Bay Corridor Group [WBCG] Imports for the Brazil market via the Port of Walvis Bay for the SADC region are also increasing, which is a result of the WBCG branch office that the group established in Sao Paulo 2-years ago. The Walvis Bay corridors are growing as an alternative trade route for markets to and from Southern Africa in that various commodities are being moved via the port of Walvis Bay, such as copper, vehicles, frozen products, machinery and equipment and consumables. [Namibian 09/04/14]
9
Tanzania Initiatives To Serve Landlocked Countries Tanzanian President Jakaya Kikwete noted that his country is implementing a number of projects aimed at improving the central corridors to better serve landlocked countries in the region. The short-term plan is to rehabilitate the central railway line by reinforcing its formation, strengthening its bridges and installing new heavier rails, sleepers and ballast. So far 600km has been completed with overall design capacity at 5 million tons p.a. Up from the record 1.4 million tons of cargo moved in 2002. Other initiatives are the dredging of Dar es Salaam port entrance channel, construction of berths #13 and #14 and strengthening and deepening of berths #1-7. Tanzania’s Dar es Salaam port is used as an export and import gateway for the landlocked countries of Rwanda, Burundi, Uganda, Zambia, Malawi and the Democratic Republic Congo [DRC]. Tanzania wants to increase throughput of Dar es Salaam port from the current 13 million tons per annum to about 18 million tons annually by the end of 2015. Plans were also afoot to reduce time taken by a truck to transport a transit container from the Dar es Salaam port to the borders of Burundi and Rwanda to 2.5 days from the current 3.5 days by the end of 2015. Tanzania and Burundi have a bilateral arrangement to construct a 200km standard gauge railway between Uvinza in Tanzania and Musongati in Burundi which expected to cost US$550 million U.S. dollars. [Xinhua 22/04/14]
Tanzania / Burundi Rains Impact Corridor - Transits / Costs Please note that we have had to apply a US$300 ‘Extra Mileage Charge’ for inland transport from Dar es Salaam [Tanzania] to Bujumbura [Burundi]. Due to heavy rains over the last 2-months a vital bridge has broken. Trucks are now forced to use another route adding an additional 200-km equating to 1-2 days additional transit. Please note this road is also in poor condition. [Agent 09/05/14]
Tanzania / DRC TPA Opens Office In Lubumbashi Tanzania has opened a Tanzania Ports Authority [TPA] link office in Lubumbashi town, Katanga Province in the Democratic Republic of Congo [DRC]. The move will simplify things for DRC traders as the Congolese business community can now solve their problems in Lubumbashi instead of travelling all the way to Dar es Salaam. They will be able to make payments for port charges in Lubumbashi and avoid the risk of carrying large sums or being cheated by untrustworthy agents. A list of all registered clearing and forwarding agents will be made available in Lubumbashi. Cargo monitoring will also be done from Lubumbashi hence help speed up clearance as traders will have updated information on the status of their cargoes. DRC is the 2nd largest transit user of the Dar es Salaam port accounting for 25% of the total transit traffic. DRC traffic has been increasing at an average of 24 percent per annum since 2004 from 155,611 tonnes up to 1,117,249 tonnes in 2013. [The Guardian 05/05/14]
10
EASTERN & SOUTHERN AFRICA
ROADS
COMESA-EAC-SADC Tripartite Road Corridor The COMESA-EAC-SADC Tripartite has received a grant from the African Development Bank [AfDB] hosted NEPAD Infrastructure Project Preparation Facility [IPPF] to finance the feasibility studies, detailed engineering design and tender documents for the rehabilitation of 5-selected road sections of the North South Corridor [NSC] in Botswana, Malawi and Zimbabwe to a ready state for investment financing. The NSC is a joint COMESA-EAC-SADC Aid for Trade initiative and its primary goal is to reduce the time and costs of road and rail transport. The project includes the following components: -
64km Pandamatenga-Ntata [Bostwana] 111km Palapye-Martins Drift [border with South Africa] [Bostwana] 205km Bunda Turn Off / M1 Junction-Jenda [Malawi] 120km Bulawayo-Gwanda [Zimbabwe] 200km Gwanda-Beit Bridge [Zimbabwe] [AfDB 12/05/14]
Trans-Kalahari Corridor More Truck Stops As Regional Road Freight Increases The governments of South Africa, Botswana and Namibia hope to boost regional trade by improving the efficiency of the Trans-Kalahari Corridor network with the establishment of a number of new truck stops along the transport corridors traversing all 3-countries. According to the Trans-Kalahari Corridor Management Committee [TKCMC] the viability was confirmed in a feasibility study which engaged stakeholders, including the transport industry, local and provincial government, government agencies and other allied industries. The network consists of the Trans-Kalahari, the Trans-Cunene and the Walvis Bay – Ndola – Lubumbashi [Trans-Caprivi] corridors, linking the 3-countries with each other and with Angola and Zambia. Primary and secondary sites have been investigated in detail in Namibia, Botswana and South Africa, and the establishment of 4-new truck stops have been recommended along the Trans-Kalahari Corridor at a total cost of R55-million. Given the long distances issues of road safety, driver fatigue and cargo security have become important considerations. [Engineering News 29/04/14]
Burundi Tarring Of RN18 The development and tarring of the National Route RN18 is to be scheduled in 2-phases. Works will help decongest the RN1 Bujumbura-Kayanza, which carries heavy traffic of the North corridor [to/from Mombasa port to Kenya], the Central Corridor [to/from Dar es Salaam port, Tanzania] and domestic traffic between the provinces of Central, North and the East. It will also connect the town of Nyakararo on the RN7 to Gitega and promote trade in the region. The road is an alternative pathway of the Central Corridor via RN 12 Muyinga - Gitega. [AfDB 12/05/14]
Kenya Mombasa/Nairobi/Addis Ababa Road Corridor Development Project, Phase III SAI Consulting Engineers Pvt Ltd have been awarded a US$2.2 million contract for the environmental and social impact assessment and detailed engineering design of Lamu-Garissa road. The study should take 15-months. [AfDB 14/05/14]
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Mozambique Road Tolls Rise But Only For Heavy Vehicles Mozambique’s National Roads Administration [ANE] and the company Trans-African Concessions [TRAC], which operates the MaputoSouth Africa motorway, have agreed on increased tolls effective 2 June - but only for heavy vehicles. [AIM 15/05/14]
Vehicles
Fee
5/+ axles
To pay an extra 48% at the Maputo tollgate, where the toll rises from 250 to 370 meticais. At Moamba, the rise for these vehicles is only 10% from 1,000 to 1,100 meticais.
3/4 axles
Will pay 220 meticais [US$ 7.2] at the Maputo tollgate. This is a 33.3% increase on the current toll, which is 165 meticais. At the second toll gate, at Moamba, about 60 km north of Maputo, the toll rises by 28.8%, from 660 to 850 meticais.
2 axles
No increase - will continue to pay 85 meticais at Maputo and 330 meticais at Moamba.
Light vehicles
No increase. The toll for cars, motor-cycles, and pick-up trucks [including those towing caravans or trailers] remains 25 meticais at Maputo and 135 meticais at Moamba. Licensed passenger transport vehicles continue to enjoy a 40% discount on the tolls.
South Africa KZN Transport Department R1.2bn Road Upgrade The KwaZulu-Natal Department of Transport announced a 77.3km, R1.2-billion road upgrade that would connect Pongola and eDumbe. The project, of which the first 6.5 km, R65-million construction phase had already started, would entail the upgrade of the D-1867 road [off the N2 between Pongola and Piet Retief] from gravel to tar. The upgraded road would start at Belgrade and ultimately connect to road P-271 in eDumbe. [AfDB 23/04/14]
Joburg Launches Mobile App For Road Fault Reporting The Johannesburg Roads Agency [JRA] has launched a smartphone app that will enable city residents to report potholes, faulty traffic lights and other infrastructure issues with a few taps of their mobile phone. The JRA “Find & Fix” app is freely available for download for the Windows 8 Phone from the Windows 8 Phone store and the Android version from the Google Play store. The iOS version will be available from the iTunes store from 24 May. [SouthAfricaInfo 15/05/14]
Swaziland Manzini to Mbadlane [MR3] Road Upgrade Project The Manzini-Mbadlane Road Upgrade Project [MMRUP] comprises the upgrade of a 30km section between the city of Manzini and Mbadlane on Main Road 3 [MR3]. The project involves an upgrade from existing 2-lane single carriageway to 2-lane dual carriageways. The upgrade will improve road infrastructure to accommodate increasing commercial traffic servicing industrial centres and intra-regional trade traffic between neighbouring Mozambique and South Africa. The section terminates at the new Sikhuphe International Airport near Mbadlane. [AfDB 23/04/14]
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EASTERN & SOUTHERN AFRICA
ROADS
Tanzania Road Sector Support Project II Tanzania has received a loan from the African Development Fund [ADF] to jointly finance with the Japan International Cooperation Agency [JICA] the Road Sector Support Project II. It intends to apply part of the loan for a consultant to review capacity strengthening for the Tanzania National Roads Agency [TANROADS] under the Project, on the Dar es Salaam – Morogoro Road Safety Pilot Project. [AfDB 05/05/14]
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Zambia Itezhi-tezhi D769 Road Works Commence The long-awaited construction of the D769 road which links Itezhi tezhi to Mongu road has begun. The D769 is one of the many roads underway under the Link-Zambia 8,000 road project. Works covering a 110-km stretch from Mongu road junction to Itezhi-tezhi has already started. Build Trust Construction Company has been awarded the tender. [Post Online 13/05/14]
14
EASTERN & SOUTHERN AFRICA
ONE STOP BORDER POSTS Rwanda New EAC OSBP Initiatives Improve Trade In Rwanda Over the past few years, regional governments have stepped up efforts to improve the business environment and promote crossborder trade. This has involved building of new infrastructure and enacting new business supportive policies. These initiatives were largely responding to traders’ outcry over numerous barriers; poor roads, delays at border posts and multiplicity of tax declaration at various points across East African Community [EAC] bloc. Rwanda has embarked on setting up modern One Stop Border Posts [OSBPs] to ease clearing of cargo at borders where all agencies from EAC countries operate under one roof. Under OSBP, services are harmonised with incoming and outgoing traffic jointly cleared by officers from both countries on either side of the border. Location
Border
Services Available
Nemba
Rwanda-Burundi, Eastern Province
Operational offering OSBP services
Ruhwa
Rwanda-Burundi, Rusizi District
Operational offering OSBP services
Rusumo
Rwanda-Tanzania
Nearing completion. 82% of work complete on Rwanda side.
Kagitumba
Rwanda-Uganda-Tanzania, Nyagatare District, Eastern Province
Works are ongoing
Gatuna
Rwanda-Uganda
Plans to build a OSBP
Cyanika
Rwanda-Uganda
Plans to build a OSBP
La Corniche
Rwanda-DRC Gisenyi sector, Rubavu District
To be upgraded
“One-stop control arrangements and collaboration of border agencies in the key areas are expected to reduce the time to cross the border by 30%. There are other benefits like reduction of administrative costs and increase of commercial activities. OSBPs and the introduction of integrated border management helps modernise border posts, giving border agencies an opportunity to improve their services and build institutional capacity ‘since they have new infrastructure and other related facilities.” TradeMark East Africa Rwanda office These developments are in line with regional leaders’ efforts to improve the business environment and reduce the cost of trade. The initiatives support other efforts like the single customs territory. [New Times 07/05/14]
Gatuna
Kagitumba
Cyanika La Corniche
Nemba Ruhwa 15
Rusumo
Tanzania Border Revamps Near End Construction of several One Stop Border Posts [OSBP] in Tanzania are in the final stages of completion. Implementation of joint OSBPs will halt the present arrangement where all types border control operations are being done twice over on either side of the relevant East African borders. With OSBPs, all activities of the border control will be done on one side. The project is being implemented through the East African Community Law of the establishment of the OSBPs in EAC member countries. [EA Business Week 22/04/14]
Location
Border
Services Available
Holili/Taveta
Tanzania-Kenya, Coast Province
Holili side has been handed over to the Tanzania Revenue Authority [TRA] and Kenya’s Taveta border is expected to be completed this month.
Sirari/Isebania
Tanzania-Kenya, Mara region
OSBP construction complete
Mutukula/ Mutukula
Tanzania-Uganda, Kagera region
OSBP construction complete
Namanga
Tanzania-Kenya, Kajiado District, Rift Valley Province
Started in December 2011 as part of the Arusha-NamangaAthi River road project, is still progressing
Kabanga/Kobero
Tanzania-Burundi
Started in May 2013 over 15 months therefore expected to be complete by June 2014.
Rusumo
Tanzania/Rwanda
Nearing completion. 70% of work complete on the Tanzanian side. Expected to be complete by November 2014
Mutukula/Mutukula Sirari/Isebania Rusumo Kabanga/Kobero
Namanga Holili/Taveta
16
EASTERN & SOUTHERN AFRICA
RAIL
Nations Seek Funding Adviser For US$4 Billion Railway Tanzania, Rwanda and Burundi are looking for an adviser to help them secure financing for a US$4.13-billion railway project aimed at boosting cross-border trade. The railway will link Tanzania’s port city of Dar es Salaam with the capital cities of landlocked Rwanda and Burundi. The adviser would be required to assist the 3-governments in structuring the joint infrastructure deal, including investment options, marketing and providing investment risk advice. The deadline for the submission of bids is August 21. Nations in the region are racing to build new roads, railways and power plants to make up for decades of severe under-investment. In November last year Kenya broke ground for the construction of a new rail line linking its proposed second port at Lamu with Uganda, Rwanda and other neighbouring states. Tanzania and Kenya both have long coastlines and the planned investments are aimed at serving growing economies in the land-locked heart of Africa from Uganda to Malawi. [Reuters 16/04/14]
Kenya China, East African Leaders Sign Up For New Mombasa-Nairobi Rail East African leaders and China signed agreements on 11th May for the construction of a new multibillion dollar railway linking the Kenyan port of Mombasa to Nairobi and running on to neighbouring states. The deals were signed on the last stage of an Africa tour by Chinese Premier Li Keqiang, although Kenya’s president, Uhuru Kenyatta, had already signed up to the deal during his state visit to Beijing last year. The new standard gauge line will supplement a slower narrow gauge network that currently only runs to Uganda. The new line will replace the colonial railway known as the ‘Iron Snake’ and is designed to go on to Rwanda and South Sudan, part of an effort to cut the hefty costs of trade. The line is expected to cut freight costs to US$0.08 a tonne per km from US$0.20 now. The construction due to start in October with the 610km Kenya section planned to be finished early in 2018. China Road and Bridge Corporation, a subsidiary of China Communications Construction Company, has been appointed to construct the initial Kenyan leg of the new line, despite widespread criticism that there was no competitive tendering for the work. Kenyan officials said there was no public bidding because that was a condition of securing Chinese financing but some lawmakers said the deal was overpriced. Officials previously put the price for the railway from Mombasa to Kenya’s western border with Uganda at 447.5-billion shillings [US$5-billion], including financing costs. Kenya signed 2-financing deals with China’s Export and Import Bank [EXIM], although no value was given - 85% of the project will be funded by EXIM to cover costs for the railway line, civil works construction, acquisition of rolling stocks and locomotives, while the Kenyan government will inject the remaining 15% for peripheral costs such as land acquisition. Officials previously said China was offering a US$1.6 billion commercial loan and a US$1.63-billion concessional facility for the Mombasa to Nairobi section - covering 85% of that section’s estimated 327-billion shilling [US$3.8-billion] cost. The payoff for China will be easier overland links between the natural resources of eastern Africa and waiting China-bound vessels in Mombasa port. [Reuters / The Star / Bloomberg 12/05/14]
Mozambique Refer Engineering Awarded Tender For Maputo-South Africa Rail Design Portuguese consulting company Refer Engineering has been awarded the design tender for a project to repair, modernise and extend the rail transport system linking the port of Maputo to South Africa along the Ressano Garcia line. This section of the project is expected to cost US$1.65 million and was presented by a consortium that also included Mozambique’s Engenheiros Consultores de Moçambique [ECM] and Portugal’s Proman. The project should take 6-months to carry out.
The Ressano Garcia Line - 90-km long - Links ports of Maputo and Matola Gare to the border town of Komatipoort in South Africa - Part of Maputo Development Corridor - To cost US$20 million - Increased capacity to 40 million tons p.a
The tender was launched in 2013 by Mozambican state port and rail company Portos e Caminhos de Ferro de Moçambique [CFM] and includes a long term viability study for the phased development of a rail strategy, a detailed engineering project and consultancy services to increase the transport capacity of the railway line. The project’s tender document also includes setting up programmes for regular maintenance of the railway system, as well as for repairs. The project to repair the railway is expected to cost US$20 million and will increase annual transport capacity to 40 million tons. Work will be carried out over a period of 4-years. According to the Maputo Development Corridor [MPDC], South Africa accounts for around 80% of the port facility’s market. [Macauhub 08/05/14]
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Nambia Trans-Kalahari Railway To Cost N$100 Billion An estimated 90 million tonnes of coal will flow through Namibia per year once the railway link to Botswana’s rich coalfields has been completed. A Memorandum of Understanding [MoU] was signed by Namibian and Botswana officials at the end of April. A developerarranged investment model is to be set up to guide the financing, construction, and operations of the line. A committee comprising representatives of both governments is to be established, and a joint venture [JV] will be set up by both governments as well as a Public Private Partnership that will drive the process. The MoU covers aspects related to the network that will run along the Trans Kalahari Corridor [TKC] connecting the Walvis Bay with the existing railway line in eastern Botswana. In Namibia, the railway line will follow the Trans-Kalahari corridor past Gobabis through to Omitara where it turns west and realigns to the Trans-Kalahari Corridor at Okahandja, onwards to Walvis Bay. In Botswana, the line will start at the Mmamabula coal fields connecting to the existing railway line up to Rasesa where it turns west passing north of Molepolole and east of Letlhakeng, joining the Molepolole-Kang road around Maboane, thereafter aligning to the Molepolole-Kang road up to Maramosu where it will run along the TKC through to the Mamuno border post. Details on the financing of the project are yet to be established as well as when construction will commence pending the setting up of the joint venture company and the subsequent ministerial task team. Each country will in its territory bear the costs in accordance with policies and laws of each with the budget split in 2-equal shares. The project is expected to cost upwards of N$100 billion and follows years of protracted negotiations at setting up a rail link between the two countries. The 1,500km railway line should be completed in 5-years and will initially depend on the ferrying of approximately 90 million tonnes of coal each year to India and China respectively. Demand for coal is expected to peak around 2020 and Botswana is hoping to take up the lion’s share of total coal exports, exporting 10% of the world’s total coal production. [Namibian 09/04/14]
South Africa / Swaziland US$1.6 Billion Railway To Start by Mid-2017 A new rail line to be operated by Transnet SOC Ltd. and Swaziland Railway will start running by mid-2017 as the South African rail and ports company boosts capacity to haul more freight to ports. The project will cost about R17 billion [US$1.65 billion]. Transnet, based in Johannesburg and owned by the South African government, is rolling out a R300-billion infrastructure investment program over 7-years, with 66% of the amount to be spent on rail. The new railway through landlocked Swaziland will help Transnet boost haulage of coal to Richards Bay Coal Terminal, the world’s biggest. The 146km single-track line from Lothair, South Africa, to Sidvokodvo, in Swaziland, will accommodate 150-wagon trains, each carrying about 12,000 MT of cargo. It would have an initial capacity of 15-million tons a year. The move will free up capacity on Transnet’s network, allowing it to move additional coal to Richards Bay Coal Terminal. The technical feasibility study will be completed by November. Geotechnical and environmental studies are still outstanding. Financing modalities are yet to be determined. [Bloomberg 13/05/14]
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EASTERN & SOUTHERN AFRICA
RAIL Tanzania
Government Looks For Partner To Revamp Central Railway According to President Jakaya Kikwete the Central Railway Line is to be upgraded to standard gauge with construction expected to begin this year. The government has identified partners to fund the project. The line would reduce road dependency when transporting goods from Dar es Salaam port to upcountry regions and landlocked countries. Reportedly the China Civil Engineering Construction Corporation [CCECC] has expressed readiness to revamp the dilapidated line in a phased approach: Dar-Morogoro; MorogoroDodoma; Dodoma-Tabora; Tabora-Kigoma; Tabora-Shinyanga; and Mwanza, Tabora and Mpanda. In 2013 the government said it would spend US$330m to upgrade its railway network in order to make it compatible with those across Central and Southern Africa. The venture involves track repair and upgrades, including changing the national network to standard gauge The move follows a tripartite agreement to harmonize operations between the Tanzania Zambia Railway Authority [Tazara], Zambia Railways Ltd and Societe Nationale des Chemins de Fer Du Congo Sarl of the Democratic Republic of Congo - the national railway operators for Tanzania, Zambia and the DRC respectively. The deal is expected to facilitate smooth and seamless transportation of goods and passengers in the 3-states. Some Tsh6 billion [US$3.7 million] has so far been spent on renovating train carriages and railway infrastructure for Tanzania Railways Ltd. The government has ordered 274 new passenger wagons, 22 locomotives, 25 wagons and 34 rolling stock brakes which are expected in the country before June this year. Tazara has also secured US$39m from China to buy 6-new locomotives, 90 new wagons and spare parts, as well as renovate 9- locomotive engines. The new railway line is expected to reduce the time it takes to transport cargo from Dar es Salaam; use of the road takes 4-days, but the railway will take just 2-days. Tanzania currently seeks US$13.3 billion to finance infrastructure projects – which include the rehabilitation of the railway line from Dar es Salaam to Tabora as well as the Kaliua-Mpanda line to Kasanga port on Lake Tanganyika. [Guardian 04/05/14]
World Bank Railway Funding Aims To Turn Tanzania Into Regional Gateway The World Bank approved US$300 million to support Tanzania’s railway infrastructure. The project, which will be implemented by Tanzania Railways Corporation, will take place along the Dar es Salaam-Isaka section of the East African Central Corridor. It will help take pressure off Dar es Salaam port, facilitate the movement of goods to and from Tanzania’s landlocked neighbours Uganda, Rwanda, Burundi and the Democratic Republic of the Congo [DRC], and spur the local economy. The funds will strengthen the Tanzania Railway Corporation’s ability to manage the infrastructure, traffic operations and network regulation. Improvements will include strengthening the current metre gauge, reconstructing train bridges and upgrading railway infrastructure from Dar es Salaam to Isaka, from which Rwanda’s and Burundi’s railways will connect. [Rwanda, Burundi and Tanzania are also working on a separately funded project that will eventually upgrade railway tracks in all 3-countries to the standard gauge, thus ensuring train interconnectivity.] Upgrading Isaka with reliable train service will help plans to re-establish the town as a ‘dry port’, where goods offloaded from Dar es Salaam can be diverted to undergo customs, thereby relieving backups at Dar es Salaam port and reducing costs. The project is part of the government’s Big Results Now initiative, which includes plans to increase Tanzania’s railway transport capacity from the current 1.4 million tons to 3 million tons annually. [Sabahi 12/05/14]
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EASTERN & SOUTHERN AFRICA
REGULATORY Tanzania / Zambia
Tazara To Adopt New Organisational Structure Tanzania Zambia Railway [TAZARA] is in the final stages of forming a new management modality of running the facility. The constructor, China Railway Construction Corporation [CRCC], is in the final stages of picking one out of 3-models [joint venture, consensus and management contract] presented by Tanzania on the best way of turning around the 1,860-km rail-line into profitable range. The Tanzania Ambassador to China, said the talks were at advanced stage that would see current TAZARA management overhauled to make it operate smoothly. TAZARA plies between Dar es Salaam and Kapiri Mposhi, in Zambia. The railway does not only unlock the landlocked Zambia but also open up various regions in Tanzania namely Mbeya, Iringa, Njombe, and Morogoro. Despite running at quarter of its capacity today, during its 4-decade existence TAZARA transported over 50 million passengers and more than 30 million tonnes of freight. [Daily News 12/05/14]
Rwanda Imports Products Conformity Assessment To Standards [IPCA] Programme The Rwanda Bureau of Standards [RBS] will implement the Imports Products Conformity Assessment to Standards [IPCA] programme from May 8th 2014. Imports Products Conformity Assessment to Standards [IPCA] is a conformity assessment process used to verify that imported products are in conformity with the requirements of applicable standards before exporting to a destination country. This process is aimed at ensuring that products imported into the Rwandan market are of the required quality for health and safety of people and protection of the environment. The programme is carried out by an authorized third-party agency, consisting of physical inspection with combination of laboratory testing, documentary review and factory audits. The agency which will carry out the process worldwide on behalf of Rwanda Bureau of Standards [RBS] is SGS Société Générale de Surveillance S.A, based in Switzerland. Contacts Director General, Rwanda Bureau of Standards [RBS] Kigali-Kicukiro KK 15 Rd, 49 PO Box 7099 Kigali-Rwanda Tel: 250 252586103 E-mail: info@rbs.org.rw Further information can be found: SGS website: http://www.sgs.com/en/Public-Sector/Product-Conformity-Assessment-PCA/Rwanda-IPCA-Services.aspx Rwandan Bureau of Standards: http://www.rwanda-standards.org
Uganda UNBS To Inspect Imported Vehicles The Uganda National Bureau of Standards and the association for used car importers in Uganda have agreed to inspect all imported vehicles entering the country effective 1st June, 2014. [New Vision 08/05/14]
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WESTERN AFRICA
CORRIDOR NEWS
Service Suspended Bangui, Central African Republic Corridor The situation in Central African Republic has deteriorated. As such, the service to/from Bangui, Central African Republic, is suspended until further notice.
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WESTERN AFRICA
ROAD Trans-Saharan Road Project Review
The Trans-Saharan Road [RTS] project stretches from Algiers to Lagos. Its objective is to serve the entire sub region of the Maghreb and Sahel covering a total length of 9,400 miles. A recent meeting brought together the AfDB, the Transsaharienne Road Liaison Committee [CLRTS] and the United Nations Development Programme [UNDP] to review the projects implementation, development plan, trade promotion, and future maintenance. The RTS will be linked to the Algerian port of Djendjen, one of the largest ports in the Mediterranean offering the possibility to import and export goods from/to the 6 countries covered by the RTS. It will also allow landlocked countries of the Sahel, including Chad, Niger and Mali, to have direct access to the Mediterranean. [AfDB 14/05/14]
Algeria
90% complete The construction of 2,400km for the main axis going from Algiers to Lagos [100% complete] Begun work on national road #1 from Chiffa-Blida-Berrouaghia [1,300 km] Secondary axes to Tunisia [100%] and Mali [50%] Algerian components of the RTS, as well as the position of Algeria-Niger border customs control will be fully funded by the Algerian Government, through its public investment budget.
Chad
Funding for 222 km in Niger is fully mobilized. Work will be spread over 3-years
Niger
Funding 412 km in Chad is fully mobilized. Work will be spread over 3-years. Launch of 1st section between Arlit and Assamaka will be held in September 2014
Nigeria
1,100 km section complete
Tunisia
RTS is fully paved
RTS FACTBOX - Initiative of the African Economic Commission [CEA] in 1970’s - Estimated at US$ 3 billion. Funded by AfDB, Islamic Development Bank [IDB], Central African States [BDEAC] Development Bank, Arab Bank for Economic Development in Africa [BADEA], Kuwaiti Fund, OPEC Fund, Saudi Fund. - Targets 400 million Africans in Saharan regions of the Maghreb and the Sahel; Covering 6 million km2 - Economic integration of 6 countries covering 9,400 miles - Opening of a new corridor for all 16 West African countries to the Mediterranean via road network - Fibrotic and gas pipeline to also run throughout the RTS
Chad Kyabe-Singako Road Project The African Development Bank Group [AfDB] has been requested by the Government of Chad to finance the the tarring of the Kyabe Singako road project in the region of Moyen Chari in the South - East of the country. The project involves the construction of 2-bridges on the Minia and Koko rivers and a weighing station for the control of the axle loads. The project will promote transport of goods between Kyabe and Singako and between Sarh and Abéché. It will facilitate the flow in the agricultural production areas of Moyen Chari and Salamat to centres of consumption of Sarh, Moundou, Ndjamena and Abeche and vice versa for manufactured products. The project also includes a feasibility study on the Sarh-Lasido-to the border of Central Africa Republic [CAR] highway. [AfDB 12/05/14]
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WESTERN AFRICA
RAIL Cameroon
Infrastructure For Sundance Mbalam-Nabeba Project Iron-ore developer Sundance Resources is hoping to finalise the engineering, procurement and construction [EPC] tender process for the development of port and rail infrastructure at its Mbalam-Nabeba project, in Cameroon and the Republic of Congo, by the end of June. Sundance has shortlisted 2-contractors for the EPC contract and intends to make a decision no later than the end of June with construction of port and rail infrastructure expected to start early 2015. Sundance is currently targeting production of 35-million tonnes a year at Mbalam-Nabeba, with the project expected to have a minimum mine life of 25 years. Stage 1 of the operation, which would have a mine life of 10-years, would be focused on producing direct shipping ore, while the second stage of the operation would be the continued production of concentrate. [Mining Week 29/04/14]
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