Railways Africa Issue 6:2017 by Railways Africa

INFRASTRUCTURE LOGISTICS MINING OPERATORS PERWAY ROLLING STOCK ISSUE 6:2017

Rolls-Royce and China Railway Partnership

Sitrail Modernisation Programme

Improving Transportation in Namibia

T H E A U T H O R I TAT I V E A F R I C A N R A I LWAY P U B L I C AT I O N

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RAILWAYS AFRICA PUBLISHER Rail Link Communications cc

This Issue: Highlights FEATURE

AFRICA UPDATE

TRANSNET FREIGHT RAIL RME BUSINESS

RAIL TRIAL - FIRST TRAIN FROM JHB TO MAPUTO

FEATURE HANDOVER OF FIRST TRAXX LOCOMOTIVE IN AFRICA

AFRICA UPDATE WORK STARTS ON RAILROAD BETWEEN CÔTE D’IVOIRE AND BURKINA FASO

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AFRICA UPDATE IVANHOE MINES REACHES AGREEMENT TO REBUILD RAILWAY

AFRICA UPDATE EGYPT EXPLORES MONORAIL

AFRICA UPDATE AKUFO-ADDO PROGRAMME TO FAST TRACK INFRASTRUCTURE

AFRICA UPDATE VALE ANNOUNCES THE SIGNING OF PROJECT FINANCE FOR NCALA

AFRICA UPDATE EGYPT LOOKS TO PLAY A KEY ROLE IN DRIVING REGIONAL INTEGRATION IN AFRICA

AFRICA UPDATE CFM TO GET MORE TRAFFIC

EDITOR Phillippa Dean DESIGN and LAYOUT Craig Dean WEBSITE Craig Dean COPY Sean Woods newsdesk@railwaysafrica.com ADVERTISING Phillippa Dean +27 (0)10 900 4881 phillippa@railwaysafrica.com

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EDITOR’S COMMENT

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The African continent's trade potential is enormous. But for the continent to develop further and reach its full potential, ongoing investments in infrastructure growth are essential.

monorail to the ancient Egyptian port city of Alexandria. If the proposed project goes ahead, it will involve the construction of a 128km track – its goal being to relieve the city of chronic traffic jams.

Fortunately, this is exactly what is happening in the rail sector. Governments throughout the continent have been putting pragmatic legislation in place, teaming up with private investors, as they put in the effort required to roll out their long term plans. So, while 2017 proved to be a tough year for all rail stakeholders on the continent, all indicators point towards the fact that the collective dream of a modern, high-tech interconnected Africa is well on track.

To help speed up travel and transportation in Namibia, the African Development Bank (AfDB) has approved a loan of US$153 million for the government to upgrade a 210km stretch of railway, as well as upgrade the section of road from the country's capital, Windhoek, to its international airport.

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Chemins de Fer du Congo (SNCC). The DRC national railway is a key part of the international rail corridor that links the DRC Copperbelt to major seaports at Durban and Richards Bay in South Africa, Dar es Salaam in Tanzania and Lobito in Angola.

The future of rolling stock in the country looks just as promising. Transnet celebrated the handover of the first of 240 electric BOMBARDIER TRAXX locomotives for freight traffic. So far, 15 of these multi-system locomotives have been completed and operations are expected to start in the new year, they will be used to transport coal and ore. Gibela's new factory and training centre is now up and running, and work has begun on the manufacture of the first six-car X-Trapolis Mega commuter trains.

Upgrading the railway track between Walvis Bay and Kranzberg will speed up both freight and passenger traffic. The current railway line was last upgraded in the 1960's and, in its current condition with speed restrictions is an infrastructure bottleneck, resulting in increased transport costs. This project is particularly important, as it will involve a direct linkage to Walvis Bay Port, and therefore speed up the passage of goods to and from the port into Namibia and beyond into other Southern African Development Community countries. The AfDB is also providing support in the expansion of the container terminal at Walvis Bay Port.

Up north, Egypt is working towards playing a key role in driving regional integration on the continent. In two private roundtables held on the sidelines of the Africa 2017 Forum, hosted by the Egyptian resort city of Sharm el Sheikh during December, President Al Sisi said he would do whatever he could to bring the continent together, both politically and economically. Incidentally, the country is also exploring the possibility of expanding its SkyRail

In the DRC, Ivanhoe Mines is to rebuild 34km of track to connect the Kipushi Mine (which is on track to become the world’s highestgrade, major zinc mine) with the DRC national railway at Munama. The Kipushi-Munama spur line, which has been inactive since 2011, will be rebuilt under terms of a memorandum of understanding (MoU) signed by Ivanhoe Mines and the DRC’s state-owned railway company, Société Nationale des

East Africa is in on the action too. The African Development Bank (AfDB) and other participating co-lenders have signed agreements for the financing of the Nacala Corridor project. This is an integrated and transformative infrastructure project, consisting a 912km railway and deep sea port meant to unlock the Western region of Mozambique and landlocked Malawi. The total project cost is estimated at US$5 billion. When the rail comes into full operation, coal exports are expected to increase by 40% in 2018, generating crucial foreign earnings for the Mozambique economy at a time the country is witnessing a cyclical downturn. The project anticipates 4 million tonnes a year of freight capacity for noncoal commodities, and opening up of regional agricultural producers to world markets. As you can see, plenty is happing right now when it comes to rail infrastructure developments on the continent, which bodes well for 2018. On that note, I wish to thank my readers and advertisers for their support over the last year and I look forward to reporting on your successes during 2018!

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FEATURE: INFRASTRUCTURE

Transnet Freight Rail -

RME business

South Africa's construction industry faced a challenging year in 2016 with ongoing pressure on margins, lower revenue and lower order books. Added to that, the South African economy unexpectedly contracted by an annualised 0.7% on quarter in the first three months of 2017, following a 0.3% drop in the previous period compared to market expectations of a 0.9% expansion (as per the PwC 2016 construction report). RME has a turnover budget of R1,2bn that needs to be achieved in the 2017/18 financial year. Through the initiative of aggressively chasing external market revenue, RME has made in roads with some clients who have huge private sidings, particularly in the emergency repairs on the PRASA network due to damage caused by extreme weather conditions. The contraction in the market has forced RME to start looking for cross boarder business and our teams have been conducting assessments in Kenya, Nigeria and Tanzania.

Recap of Activities As a result of the slowdown of the Market Demand Strategy (MDS) roll out plan within Transnet, RME is aggressively positioned to gain market share externally. The competitive advantages are as follows: •

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Due to the South African Railway experience, the RME team is one of the best, if not the best, in the country with reference to technical exposure and learnt lessons. We set a technical benchmark that is world renowned within the perway environment, refer to the 2017 international heavy haul conference. The response to emergency events has set a competitive edge with regards to response times, quality of workmanship and safety. We have a highly dedicated Signal team that supports the macro signalling environment within the country.

Current Activities/Projects Our teams in KZN have responded to the emergency works required by PRASA to repair the damages caused by the floods in the South Coast. The contract with Eskom for connecting the Majuba Rail links to the TFR Operational Coal Line and ensuring compliance with TFR Standard during the Design, Construction and Commissioning of the Majuba Rail Siding, is in the final stages (99% complete). The milestones for this project were completed successfully within the approved project schedule, safety and quality standards and on budget.

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FEATURE: INFRASTRUCTURE

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FEATURE: INFRASTRUCTURE RME has also been awarded with rehabilitation and maintenance works from some smaller mines and private siding owners.

Significant Achievements In The Last Year •

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The completion of the Manganese 16mtpa Phase 1, Kimberley to De Aar section, of which the contract value was over R850 million. Port Upgrades in Durban, East London and Port Elizabeth, the highlight being the completion of the Dry Dock Crane Rails in the Port of East London. The opening up of a new Main Line 2 in scheduled time for movement of trains at the Majuba Rail Link Project. Completed OHTE electrification of additional lines in Vryheid yard as part of coal line upgrade to 81mtpa. Re-instatement of vandalised signalling station in the Sentrarand hub. Successful execution of the Coal Line, Natcor, Manganese Corridor & Iron Ore shutdowns and installation of the first electronic interlocking on coal line (RLRA electronic interlocking).

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New Tenders / Projects •

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Prasa rehabilitation of the infrastructure from the washaways caused by the extreme weather conditions experienced in the South Coast. Emergency Track Repair Works at the Eskom Tutuka Power Station. Track Repair Works for the South African National Defence Force (SANDF) Nsezi & Ogies Loco refueling and workshop Ogies refueling facility and workshop

Potential Projects Waterberg Coal Expansion Project, the new passing loops to be constructed and the Boikarabelo link, in total this will be a new line that is 38km. This is a Greenfield project that will open up a market that can link in to Botswana and free up the coal deposits in both Lephalale and Botswana. RME has submitted a tender bid for the Tanzania Railway company Reli Assets Holding Company (RAHCO). The tender is for the Tanzania Intermodal and Rail Development Project, for the Railway Track and Structures (Bridges & Culverts) Rehabilitation Works.

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Internally there are some capital projects in the pipeline to increase capacity of the rail network. The following projects have been identified by RME as major projects for RME: • Manganese 16mtpa rail upgrade phase two (2). • Orex Line: replacements of five (5) transformers at substations. • The replacement and upgrade of 25kv indoor VCBs/Switchgears at Substations in Koedoespoort, Vryheid and Richards Bay Depots. • Boikarabelo Link • Waterberg Stage II & III

Predictions For 2018 The rail sector remains stable with some exciting projects which will be starting in the New Year. Plans are well underway for the Inter-Railway initiative between Transnet Freight Rail and Swaziland Railway. The FEL3 feasibility studies have been completed and preparation works are currently in progress. The two-country partnership will see the construction of a greenfield 150km railway line from Lothair (Mpumalanga) to Sidvokodvo (Swaziland). Construction will commence once the funding has been finalised.

FEATURE: SAFETY

FEATURE: LOCOMOTIVE

"The handover and acceptance of the first TRAXX locomotive in Africa is fantastic news. We are committed to South Africa through local production, a strong local supply chain, job creation and transfer of technology, in line with the latest localisation and Broad-Based Black Economic Empowerment programme (B-BBEE) requirements. We are proud to say that from the first to the last, each TRAXX locomotive Africa for our important customer Transnet Freight Rail will be manufactured in South Africa." Aubrey Lekwane, Managing Director, Bombardier Transportation South Africa

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FEATURE: LOCOMOTIVE

Handover Of First TRAXX Locomotive in Africa Rail technology leader Bombardier Transportation and the South African state-owned enterprise company Transnet have celebrated the handover and acceptance of the first of 240 BOMBARDIER TRAXX locomotives for freight traffic in South Africa.

L-R: Aubrey Lekwane, MD Bombardier Transportation SA, Thamsanqa Jiyane, CEO Transnet Engineering, Henk Ekkelenkamp, Project Director Bombardier Transportation TRAXX SA.

The handover event took place on December 7, 2017 at Transnet Engineering's assembly plant in Durban attended by dignitaries from Transnet, Government officials, suppliers and the media.

In March 2014, Transnet Freight Rail awarded Bombardier Transportation the contract to supply 240 electric locomotives as part of the National Infrastructure Plan, which includes the investment of EUR30 billion into the modernisation of the national rail system. The locomotives will be used to transport coal and ore on long routes between mines, ports and urban areas. So far, 15 of the 240 electric multi-system locomotives have been completed and operation is expected to start on the Transnet Rail network at the beginning of this year.

The Bombardier project team situated at Transnet Engineering's Durban assembly plant.

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FEATURE: LOCOMOTIVE

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FEATURE: LOCOMOTIVE

Over 60% of the total contract value of approximately R15billion will be spent on locally manufactured material, components and services for the locomotives, and the supply chain involves around 90 South African companies. Bombardier's factory in Isando, Johannesburg produces the BOMBARDIER MITRAC high power propulsion equipment, the car bodies are produced by DCD in Boksburg. Transnet Engineering produces the bogies, and undertakes final assembly, commissioning and static testing in Durban. 140 Bombardier employees are currently involved in the production of the 240 locomotives, and in total, Bombardier Transportation has created 300 jobs in South Africa, supporting the government's B-BBEE programme.

Bombardier has built more than 2000 TRAXX locomotives primarily for the European market. In South Africa, milestones include the delivery of 96 BOMBARDIER ELECTROSTAR vehicles for the Gautrain Rapid Rail Link rail mass transit in the greater Johannesburg area, and the implementation of the BOMBARDIER INTERFLO 200 operations control system on several routes in the Greater Durban area.

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IVANHOE MINES REACHES AGREEMENT TO REBUILD RAILWAY Executive Chairman Robert Friedland and Chief Executive Officer Lars-Eric Johansson announced at the end of October, that the company has agreed to rebuild 34 kilometres of track to connect the Kipushi Mine with the DRC national railway at Munama, south of the mining capital of Lubumbashi. The Kipushi-Munama spur line, which has been inactive since 2011, will be rebuilt under terms of a memorandum of understanding (MOU) signed by Ivanhoe Mines and the DRC’s state-owned railway company, Société Nationale des Chemins de Fer du Congo (SNCC). The DRC national railway is a key part of the international rail corridor that links the DRC Copperbelt to major seaports at Durban and Richards Bay in South Africa, Dar es Salaam in Tanzania and Lobito in Angola.

Daily Trains For Exports To International Ports

of Haut-Katanga and Lualaba, allowing for efficient transportation of supplies to and from the area," he added. “Given Kipushi’s incredible zinc grades of approximately 35% and current zinc prices of between US$1.40 and US$1.50 a pound, we’re confident that Kipushi is on track to become the world’s highestgrade, major zinc mine. Discussions are ongoing with our partner, Gécamines, and prospective project financiers to fast-track completion of the remaining infrastructure development at the mine.” The Kipushi Mine is owned by Kipushi Corporation (KICO), a joint venture between Ivanhoe Mines (68%) and Gécamines (32%). Kipushi, on the Central African Copperbelt in the province of Haut-Katanga, is approximately 30 kilometres southwest of Lubumbashi and less than one kilometre from the international border with Zambia.

Mr. Friedland said the resumption of rail service along the Kipushi spur line is the most economical and reliable solution for the transportation of Kipushi’s projected annual output of approximately 530,000 tonnes of zinc concentrates.

“The reactivated spur line will provide significant economic and social benefits to residents of Kipushi and the southern DRC provinces

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Mr. Johansson said that as with any mine development project, safe and reliable transportation is a key consideration in planning for production at Kipushi. “This cooperation agreement on the railway project is similar to our successful, ongoing partnership with the DRC’s state-owned power company, La Société Nationale d’Electricité, for the rehabilitation of three hydropower plants to support our development of the KamoaKakula Copper Project.” Mr. Johansson added: “During the past five years, the 3,000 kilometre, north-south rail corridor has experienced a revival in freight volumes between South Africa and the African Copperbelt. Our decision to opt for rail as our primary mode of export transport will further enhance the economic stability of the railway

Maps show Ivanhoe's Kipushi and KamoaKakula projects, the railway spur line to Kipushi, the national railway and the international rail corridor that links the DRC Copperbelt to major seaports at Durban and Richards Bay in South Africa, Dar es Salaam in Tanzania and Lobito in Angola. Inset shows the Kipushi to Munama spur line.

The World Bank is overseeing and financing the rehabilitation and upgrading of large sections of the main DRC national railway between Lubumbashi and the Zambia border crossing at Sakania. The work has focused on replacing the ballast beneath the tracks and installing new concrete sleepers (crossties) and heavier-gauge steel rails. New signalling and telecommunications equipment has also been installed along the line. “A daily train from Kipushi will replace the equivalent of 50 road trucks, resulting in significant safety and environmental benefits to the DRC, Zambia, Zimbabwe and South Africa, reduced road and border congestion and decreased air pollution,” Mr. Friedland explained.

spur line could start in late 2018. Ivanhoe will finance the rebuilding.

Front-end Engineering Design Study To Assess The Scope And Cost Of Rebuilding Spur Line Under the terms of the MOU, Ivanhoe will appoint consultants to conduct a front-end engineering design study to assess the scope and cost of rebuilding the spur line from the Kipushi Mine to the main Lubumbashi-Sakania railway at Munama. The study is scheduled to begin before the end of this year and construction on the Kipushi-Munama

operators along this entire corridor. Given the large and increasing volumes of copper and cobalt being exported from DRC, we expect to see more private-public cooperation agreements to rebuild other sections of the DRC railway system.”

Kipushi Underground Upgrading Programme Nearing Completion KICO has made excellent progress in modernising the Kipushi Mine’s underground infrastructure as part

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AFRICA UPDATE

of preparations for the resumption of commercial production. With the underground upgrading nearing completion, KICO’s focus now will shift to modernising and upgrading Kipushi’s surface infrastructure to handle and process the mine’s high-grade zinc and copper resources. The current mine redevelopment plan, as outlined in the May 2016 independent, preliminary economic assessment (PEA), has a two-year construction period with quick ramp-up to a projected, steady-state, annual production of 530,000 tonnes of zinc concentrate. Heavy-gauge rails and concrete crossties (sleepers) being installed on a section of SNCC’s main line from Lubumbashi to Sakania, at the Zambian border. The upgrading, financed by the World Bank, utilized crossties produced at a Lubumbashi plant. Similar components will be used on the planned upgrading of the spur line to the Kipushi Mine.

Existing portion of track on the Kipushi-Munama spur line to be rebuilt as part of the planned upgrading.

Representatives of the SNCC national railway company and Ivanhoe's Kipushi team at Munama railway station.

A pre-feasibility study (PFS) is underway to refine the findings of the PEA and to optimise the mine’s redevelopment schedule, life-of-mine operating costs and initial capital costs required to return the mine to production, taking into consideration the significant capital already invested to date on critical rehabilitation work. The PFS, which Ivanhoe expects to complete before the end of this year, will focus on the mining of Kipushi’s Big Zinc Deposit, which has an estimated 10.2 million tonnes of Measured and Indicated Mineral Resources grading 34.9% zinc. This exceptional grade is more than twice as high as the Measured and Indicated Mineral Resources of the world’s next-highest-grade, major zinc project, according to Wood Mackenzie, a leading, international industry research and consulting group. In addition to the Big Zinc Deposit, Kipushi has several copper-rich zones that also contain silver, germanium and zinc. Measured and Indicated Mineral Resources contained in the copper-rich Série Récurrente Zone, Fault Zone, and Fault Zone Splay total 1.63 million tonnes at grades of 4.01% copper, 2.87% zinc and 22 g/t silver, at a 1.5% copper cut-off, containing 144 million pounds of copper. Inferred Mineral Resources in these zones total an additional 1.64 million tonnes at grades of 3.30% copper, 6.97% zinc and 19 g/t silver.

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AFRICA UPDATE

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IMPROVING PROJECT BANKABILITY KEY TO BRIDGING AFRICA'S INFRASTRUCTURE GAP Namibia - Preparing a pipeline of bankable sustainable infrastructure projects is vital, participants of the Programme for Infrastructure Development in Africa (PIDA) Week heard when it got underway late last year in Swakapomund, Namibia. This, according to high-level speakers from the African Union Commission (AUC), the NEPAD Agency, the African Development Bank and the Southern African Development Community (SADC), is key to closing the infrastructure gap and creating jobs in the continent. In his official opening address, Namibia’s Minister of Works and Transport, Alpheus !Naruseb, called for strong coordination in the implementation of PIDA and the preparation of bankable, investmentready projects that can attract financing for implementation.

“The continent needs, as a matter of urgency, to scale-up capacity for project preparation in terms of resources, skills and development of bankable project pipelines to create enough jobs and opportunities for the large African youth population entering the labour market”. Cheikh Bedda, Director for Infrastructure and Energy, AUC

The Director for Infrastructure and Energy at the AUC, Cheikh Bedda, said that policy makers, infrastructure experts and the private sector have crucial roles to play in training and skills acquisition in infrastructure development to prepare young Africans for the implementation of complex programmes such as PIDA. “The continent needs, as a matter of urgency, to scale-up capacity for project preparation in terms of resources, skills and development of bankable project pipelines to create enough jobs and opportunities for the large African youth population entering the labour market,” Mr. Bedda said. Reflecting on the mid-term review of the PIDA Priority Action Plan (PAP) that the AUC is currently conducting, the Director stated, “Early indications on the implementation of projects clearly show the critical importance of sound project preparation, given that more than half of the portfolio of projects are still at the conceptual stage.” Also speaking at the opening session, Dr. Ibrahim Assane Mayaki, NEPAD Agency’s Chief Executive Officer, noted that African Heads of State and Government, including leaders of Industry and Finance, recognise the lack of technical capacity for project preparation as one of the key bottlenecks in the implementation of PIDA projects. The AUC and NEPAD established the PIDA Service Delivery Mechanism (SDM) as an instrument for tackling the lack of technical capacity during the project preparation phase.

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“This year NEPAD, under the leadership of the African Union Commission Chairperson Moussa Faki Mahamat, launched the 5 Percent Agenda,” Dr. Mayaki recalled. Noting that the private and public sectors are joining forces in Africa to create conducive environments to attract investments, which are so vital for the continent’s growth, Dr. Mayaki explained that “The 5 Percent Agenda is a campaign to increase investment allocations by Africa asset owners into African infrastructure from its low base of about 1.5% of their assets under management to an impactful 5%.” More suggestions on possible solutions came from Mr. Shem Simuyemba, the African Development Bank’s Coordinator for Multi-Donor Special Fund - NEPAD Infrastructure Project Preparation Facility. He highlighted the Bank’s financial commitments to Africa’s infrastructure development, which accounts for half of its total spending. “The African Development Bank is stepping up the pace by focusing on the 'High 5' priorities that are crucial for accelerating Africa’s economic transformation. Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the quality of life for the people of Africa,” Mr. Simuyemba said. The solution is to scale-up capacity for project preparation and development as the only means to assess, package and structure the projects in such a way that there is a "rolling pipeline" of bankable projects, he added. Referring to the theme, the Deputy Executive Secretary-Corporate Affairs for the Southern African Development Community (SADC), Mrs. Emilie Mushobekwa stated that SADC has taken a multi-pronged approach to accelerate the preparation and implementation of PIDA Projects in the region to facilitate regional integration and job creation. A case in point, Mrs. Mushobekwa stated that the SADC Secretariat has allocated an annual budget since May 2016 to support project preparation to bankability and corridor development. At the PIDA Week, the NEPAD Agency also launched its pioneering 2017 PIDA Progress Report, which is the outcome of collaboration between all PIDA stakeholders who shared information on projects and interventions on the ground, as well as on progress made during the year.

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AFRICA UPDATE

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QALAA REVENUE GROWTH Qalaa Holdings, a leader in energy and infrastructure, recently reported revenue growth of 25% y-o-y in 2Q17 to EGP2.3bn, on the back of improved operational performance across all sectors led by energy and cement. EBITDA records growth of 76% y-o-y to EGP167.4m driven by higher contributions from ASCOM, Gozour and Tawazon; ERC reached 95% completion.

IMPROVING TRANSPORTATION IN NAMIBIA To help speed up travel and transportation in Namibia, the Board of the African Development Bank has approved a loan of ZAR2,000 million (US$153 million) to the Government of Namibia to upgrade a 210km stretch of railway in the west of the country. The support will also finance the upgrade of a section of the road from the capital, Windhoek, to its international airport. The two interventions are part of the priority projects identified in the government’s Harambee Prosperity Plan, an action plan launched in April 2016, to support priority interventions identified in the Government’s national development plan. The upgrading of the railway track between Walvis Bay and Kranzberg will speed up both freight and passenger traffic. The current railway line, of Cape Gauge standard, was last upgraded in the 1960's and, in its current condition with speed restrictions is an infrastructure bottleneck, resulting in increased transport costs. The upgrading is particularly important because it will involve a direct linkage to Walvis Bay Port, and therefore will speed the

passage of goods to and from the port into Namibia and beyond into other Southern African Development Community countries. The AfDB is also providing support in the expansion of the container terminal at Walvis Bay Port. After improvement, freight trains will be able to travel at up to 80km/h and passengers will enjoy speeds of up to 100km/h. The rail upgrading work will be implemented over three years. As to the road to the airport, which will be implemented over a period of 42 months, this will be a new dual carriageway with two lanes in each direction, and will incorporate an option for a third lane in the future. The existing road will be retained as an alternative to service local traffic. The Government of the Republic of Namibia is a co-financing partner in the project. The Government recognises that the combination of having direct access to the South Atlantic and a good transport network can improve its competitiveness and desire to become an international logistics hub. It shares borders

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with Angola, South Africa, Botswana and Zambia, and the latter two countries are landlocked. While presenting the project to the board, the Bank’s Deputy DirectorGeneral, Southern Africa Regional Development and Business Delivery Office, Josephine Ngure said: “The project is strongly aligned with the Government’s priorities, and complements the other three projects approved by the Bank for Namibia this year. It is in line with two of the AfDB’s 'High 5' strategic priorities: ‘Integrate Africa’ and ‘Improve the quality of life for the people of Africa’ through the creation of construction jobs during the works and other employment after completion.” Amadou Oumarou, director of the Bank’s Infrastructure, Cities and Urban Development Department, further noted the opportunities for the involvement of the private sector in the project. “This road and rail project will have a welcome effect on Namibia’s ability to integrate with the other members of the Southern African Development Community, improving access to both sea and air ports.”

Despite double digit topline growth and important headways in restructuring efforts, Qalaa recorded bottomline loss of EGP2.8bn driven predominantly by the full impairment of Africa Railways' assets in Kenya. A substantial gain on consolidated income statement is anticipated once Qalaa cedes control of Africa Railways and de-consolidates its liabilities in the coming period.

TRANSPORT AND URBAN DEVELOPMENT AUTHORITY TO HOST RAIL SUMMIT Cape Town’s Transport and Urban Development Authority (TDA) will host a rail summit early in 2018 in an effort to find shortterm solutions that will address the commuter rail crisis as they work towards the incremental takeover of the urban rail function. The aim of the summit is to allow for the City to meet with role-players from the private sector, business leaders, and other interested and affected parties to devise short-term interventions to address the current crisis that rail commuters face on a daily basis.

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AFRICA UPDATE

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MINISTER RECEIVES REPORT OF THE INTER-MINISTERIAL COMMITTEE FOR THE FINALISATION OF NDP The Inter-Ministerial Committee for the finalisation of the Draft National Transport Policy (NTP) has submitted its report to the Hon. Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi. The Draft National Policy is a practical and pragmatic response to Nigeria’s need for an integrated, modern and efficient transportation industry that can serve as a vital gateway and link for Nigeria’s internal and external trade in agriculture, energy, mining/oil and gas, manufacturing and other sectors that depend on transport. The purpose of the National Transport Policy is to establish a framework that can guide the planning and development of transport activities in a systematic and sustainable manner for the social and economic development of Nigeria. Receiving the report on 5 December 2017, the Honourable Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi commended the intellectual abilities of the Committee members for coming out with such a pragmatic report capable of moving forward the transportation sector of the economy. Amaechi assured that he and the Minister of State Aviation, Sen. Hadi Sirika would take a critical look at the report and thereafter forward it to the Federal Executive Council for consideration and approval, stressing that the President would be delighted if the country had a

good working National Transport Policy System. “We will go through it and I will direct the Permanent Secretary to give a copy to the Minister of Aviation while I read a copy. Once we are through and we share our views, we will take it to cabinet for approval," he said. The minister - aware of the key roles other ministries such as the Ministry of Works, Power and Housing and Mines and Solid Minerals play as critical stakeholders of the National Transport Policy would play enquired if they were consulted for their inputs into the Committee work, noting that their contributions to the final report of the NTP were of paramount importance. The journey for the development of a National Transport Policy for Nigerian began in 1986 when the then Hon. Minister of Transport and Aviation appointed an expert

Committee to formulate a Transport Policy for the country. After consultation with stakeholders, which included all the States of the Federation, a Draft National Transport Policy (NTP) was submitted to the Federal Ministry of Transport in 1990. Following 2017's 15th meeting of the National Council on Transportation with the theme “Efficiency of Intermodalism in Transportation: Panacea for Economic Recovery” held in Sokoto on 30th August, 2017, Council constituted the Committee to finalise the review of the draft National Transport Policy (NTP). The new draft NTP will provide for integrated transport system, governance and implementation strategies. Achieving the vision and objectives defined in the policy requires institutional and legal arrangements to fulfil the policy objectives.

PRASA APPOINTS NEW ACTING GROUP CEO The Passenger Rail Agency of South Africa (PRASA) has announced the appointment of Mr Cromet Molepo as the new Acting Group CEO (GCEO) with immediate effect. Mr Molepo relieves Mr Lindikaya Zide who has been the Acting GCEO and who’s acting period had

expired as per Corporate Governance policy. Mr Molepo, who is the current CEO at Intersite, a PRASA Subsidiary tasked with delivering the Secondary Mandate, comes with extensive experience in a number of industries in both the private and public sectors, including property, energy,

transport, water housing, finance and consulting. His formal qualifications cover economic science, civil engineering and leadership. He has participated in a number of National Initiatives, which include procurement reform for local government transformation, housing

reform, electricity supply industry transformation, National Property Assessment Register on behalf of the Department of Public Works and the Science and Technology. Mr Molepo was also an Adviser to the Minister of Public Works from 1995 to 1999.

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AFRICA UPDATE

AFDB SIGNS US$300M PRIVATE SECTOR LOAN AGREEMENT FOR NACALA CORRIDOR PROJECT The African Development Bank (AfDB) and other participating co-lenders have signed agreements for the financing of the Nacala Corridor project. This is an integrated and transformative infrastructure project which consists of a 912km railway and deep sea port meant to unlock the Western region of Mozambique and landlocked Malawi. The total project cost is estimated at US$5 billion. The AfDB was appointed co-lead arranger and co-structuring Bank and, as a result, has played a key role in the packaging of the transaction. The project is very complex and among the most innovative that the Bank has financed over the past 10 years of private sector operations. Through the project, the sponsors, companies from two AfDB member countries, Vale (the Brazil-based metals and mining company) and Mitsui & Co (one of the largest general trading companies in Japan), made the win-win collaboration championed by AfDB between Africa and the rest of the world happen. The project brought together, among others, four core lenders namely the African Development Bank (US$300m), the Japanese Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and the Export Credit Insurance Corporation of South Africa (ECIC) for an overall package of US$2.7b in senior loans. In addition to this US$300m senior loan, the AfDB also approved technical assistance through the fund for African Private Sector Assistance (FAPA) - a Japan-Austria multi-donor trust fund - to assist in strengthening business linkages, as well as supporting SMEs and cooperatives in Mozambique and developing agribusiness along the corridor in Malawi. The Project is expected to have a catalytic effect in the region and create economic benefits for the various stakeholders, including sponsors, governments and the local population. It will enable a significant reduction in transportation costs and increase coal export volumes. Increased mine production volumes will also create employment opportunities in the region of Tete where the mine is located. Furthermore, additional capacity created in general cargo and passenger trains along the corridor is expected to contribute to creating economic opportunities in the local economy, notably by increasing agricultural trade in the regions. “This project supports two of the 'High 5's' that guide the Bank’s contribution to the Sustainable Development Goals in Africa. By providing a rail link across Mozambique and Malawi with a possible extension to Zambia, it will help integrate Africa; and by opening up markets for agricultural commodities it will help Feed Africa. This dual use infrastructure development shows that Mozambique can put its natural resources at the service of its citizens,” said Pietro Toigo, the African Development Bank’s Country Manager for Mozambique. When the rail comes into full operation, coal exports will increase by 40% in 2018 and generate crucial foreign earnings for the Mozambique economy at a time the country is witnessing a cyclical downturn. The project anticipates 4 million tons a year of freight capacity for non-coal commodities, and opening up of regional agricultural producers to world markets.

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AFRICA INFRASTRUCTURE FUND SECURES US$100 MILLION LOAN FROM AFRICAN DEVELOPMENT BANK In the bid to reduce the huge infrastructure financing gap in SubSahara Africa, the African Development Bank has approved US$100 million to The Emerging Africa Infrastructure Fund (EAIF), a Public Private Partnership (PPP) company, to reduce the gap. Through a US$325-365m million debt raise, EAIF intends to develop the fund’s strategy of growing its loan portfolio over the next 3-5 years and to become a sustainable and concrete alternative to development finance institutions and commercial banks. Since its inception, the Fund has played a key role in the infrastructure landscape in Africa, investing in structuring and longterm infrastructure projects, to the tune of over US$1.2 billion in about 70 transactions. Working closely with the African Development Bank since its inception, EAIF plans to reinforce investments in 49 eligible countries and fragile states with a clear focus on crucial sectors for the development of the continent including power, telecommunication, transportation and manufacturing, among other sectors. The expected outcomes of EAIF's business model will be a clear demonstration of how to achieve green and sustainable growth in Africa; it will include the creation of 3,500 permanent jobs, improved (or new) access to infrastructure services for millions of people in Africa, and investments in environmental, social and gender projects. The Bank’s investment in EAIF is a reflection of its strategic thrust to achieve four of its five operational priorities notably, Light Up and Power Africa, Feed Africa, Integrate Africa and Improve the quality of life for people in Africa. In addition, EAIF's lending strategy is in line with the Bank’s Private Sector Development Strategy for developing infrastructure, supporting regional economic integration, and providing a platform for private sector development. Finally, the Fund’s focus on the infrastructure sector is well aligned with both the Bank’s and Regional Member Countries’ (RMCs) priorities.

6:2017

AFRICA UPDATE

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AKUFO-ADDO PROGRAMME TO FAST TRACK INFRASTRUCTURE Ghana - The Minister for Finance, Ken Ofori-Atta, has announced the establishment of the 'Akufo-Addo Programme for Economic Transformation' (AAPET) to accelerate investments in Agriculture, Strategic Infrastructure and Industrialisation. Under the programme, Mr Ofori-Atta said his government would modernise agriculture, improve production efficiency, achieve food security and increase profitability for farmers, while creating new businesses and job opportunities in the sector.

AAPET, he said, was, therefore, a three-pronged economic development programme that would see government investing in infrastructure that supported the opening up of the major agricultural zones of the country and in energy, and related infrastructure to accelerate the industrialisation agenda of government.

Significant investments will be made in the road and rail sectors of the economy to achieve the following: • Facilitate trade and the movement of goods and people, as well as abolish duties on some agricultural produce processing equipment and machinery • Support the development of agribusiness start-ups • Provide a Gh¢400 million fund to de-risk the agriculture and agribusiness sector through sustainable agriculture financing and crop insurance schemes, plus increase the pace of agricultural mechanisation • Provide specific technical assistance and tax incentives to support agro-processing, packaging and market access • Launch a major pension scheme for cocoa farmers and ramp up investments under the Planting for Food and Jobs (seeds, subsidised fertiliser, etc) • Develop modern storage facilities through the “One District, One Warehouse” programme • Implement a grant funding facility for agribusiness start-ups • Launch the commodities exchange and open up key food basket zones through road construction and irrigation projects Mr Ofori-Atta announced that government was proposing the Nation Builders Corps as a major government initiative to address livelihood empowerment, along with graduate unemployment, to solve economic and social problems.

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AFRICA UPDATE Under the Nation Builders Corps programme, he said, 100,000 graduates would be hired in 2018, trained and equipped with the necessary work tools. They will then be deployed around the country to be engaged as graduate teachers in a “Teach Ghana" programme: • Sanitation inspectors hired in a “Clean Ghana” programme • Trained nurses and other healthcare workers recruited in a “Heal Ghana” programme • Trained agricultural extension and other allied workers deployed in a “Feed Ghana” programme • Tertiary graduates mobilised in a “Revenue Ghana” programme to collect taxes that had been difficult to mobilise and enforce collection for the development of Ghana. Mr Ofori-Atta announced that government, in fulfillment of its campaign promise, had reviewed the tariff setting methodology and cost structure of power production. In that regard, he said, in 2018 efforts will be geared towards keeping the lights on at affordable rates to consumers, particularly industries and small businesses, through reform and policy interventions over a twoyear period. He said, if government recommendations to PURC were accepted, consumers would be expected to benefit from reductions in electricity tariffs, with an average reduction of between 13% and 21% from the residential consumer to the high voltage mines. Touching on business development, the minister announced that government would develop and implement a comprehensive National Entrepreneurship Policy in 2018 as well as continue to facilitate and support private sector business entrepreneurial development. On interventions to ensure access to affordable, reliable, sustainable and modern energy for all, as stated in United Nations (UN) Sustainable Development Goal (SDG) 7, Mr OforiAtta told Parliament that in 2018, government would increase the installed generation capacity by about 487MW to meet the growing demand for electricity. In addition, he said, government would embark on Ministries, Departments and Agencies (MDAs) Solar Rooftop Programme to reduce expenditure on utilities. 20 www.railwaysafrica.com

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COOPERATION AGREEMENT FOR PROJECTS IN AFRICA SIGNED Barclays Africa Group Limited and China Development Bank (CDB) have signed a memorandum of understanding (MoU) aimed at strengthening cooperation and exploring opportunities to fund development projects in Africa. Given CDB’s focus on infrastructure finance for roads, railways and dams, Barclays Africa will leverage the MoU to unlock opportunities in order to strengthen its contribution towards Africa’s economic growth and development. Barclays Africa will also extract synergies from the CDB’s focus on inclusive finance to provide capital to SME’s and lowincome communities. In addition, Barclays Africa and CDB will explore reciprocal training and development opportunities for their respective investment teams. In this regard, Barclays Africa has already hosted more than 30 employees from the CDB. “This MoU represents a long-term commitment by senior leadership at Barclays Africa to strengthen our relationship with the world’s largest development finance institution, which has assets of over US$2trillion. This partnership will unlock opportunities that are aligned to our shared growth approach and could facilitate positive socio-economic impact,” says Barclays Africa’s Corporate and Investment Banking (CIB) Co-Chief Executive, Temi Ofong. The CDB was established in 1994 as a policy bank, but now operates as a Development Finance Institution (DFI) for the Chinese Government. By 2017, CDB supported more than 500 projects in 43 African countries valued at US$50billion.

DELOITTE RELEASES AFRICAN CONSTRUCTION TRENDS REPORT 2017 The Transport sector accounted for more than half of the construction projects on the African continent during 2017, and continues to be the largest sector. Governments continue to own the vast majority of projects (90.1%). Roughly, only one in 10 projects are not Government-owned. East Africa is one of the regions where Governments are most proactive in driving projects through both national and regional infrastructure development plans. Private Domestic firms only own 4.2% of projects. Private firms from China, Singapore, the UAE and the US own the remaining 5.6% of projects in East Africa. However, Governments only fund 15.5% of projects. China is the most prolific funder of large-scale construction projects in East Africa, financing one in four projects in the region. International DFIs follow with 19.7%, and have overtaken African DFIs, which fund 16.9% of projects. China is also the most visible builder, now constructing over half of all projects. Private Domestic firms are responsible for building 11.3% of projects while firms from the Middle East and other European countries each build 8.5% of projects. This report looks at the regions and sectors that have been the driving force for construction across the diverse African continent, and is an informative read, download it from https://www2.deloitte.com/za/ en/pages/energy-and-resources/articles/africa-construction-trendsreport-2017.html

GIBELA GEARS UP TO DELIVER SOUTH AFRICAN-BUILT COMMUTER TRAINS The new factory, training centre complex and corporate office of emerging South African commuter train manufacturer Gibela, located in Dunnottar, Ekurhuleni, is nearly complete – just short of two years from the start of construction.

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Starting 2018 with a bang, the company’s current 400+ full-time employees are already based at the complex, and work has begun in earnest on the manufacture of the first six-car X-Trapolis Mega commuter train. A total 580 units will be built over the next 10 years for the Passenger Rail Agency of South Africa (PRASA). At the forefront of this manufacturing process are more than 200 South African engineers and technicians – most from historically disadvantaged backgrounds – who have been specially trained and orientated by Gibela and its majority shareholder, Alstom, at the latter’s train-building centres of excellence around the world. During 2017, 50 skilled and semi-skilled artisans from Ekurhuleni were recruited for the manufacturing process. By the end of the first quarter of 2018, the first train’s car body shell – essentially, its metal panelclad metal frame – is expected to be completed. And by the end of 2018, the first South Africanbuilt train should be ready for delivery to PRASA. At peak production – planned for the end of 2019 – more than 1 000 employees are expected to be turning out an average of seven and a half cars a week and five trains a month – an average of 62 trains a year. Eighteen of the 20 trains built at Alstom’s Lapa, Brazil factory – using South African materials and involving South Africans – have been in commercial service for the best part of 2017 and are estimated to have already clocked up more than half a million kilometres in total. One of the two trains built in Brazil – used initially for testing purposes – is now based at Gibela’s bespoke training centre at Dunnottar, where it will be instrumental in the training of around 19,500 artisans and technicians for Gibela and for the rejuvenated South African rail sector as a whole over the next 10 years. Of the 65 apprentices selected during 2017, most have already begun their training at the Gibela training centre. To meet its local content commitment of at least 65% of contract value, Gibela has taken on-board 54 South suppliers to provide materials, parts and services. More than 4,700 South African jobs are being supported by the company’s activities. Gibela is also forging ahead with arrangements to deliver on its 19-year agreement with PRASA to provide technical support, and the supply of parts to PRASA for the new trains, as they enter commercial service.

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AFRICA UPDATE

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EGYPT LOOKS TO PLAY A KEY ROLE IN DRIVING REGIONAL INTEGRATION IN AFRICA The Africa 2017 Forum wrapped up in the Egyptian resort city of Sharm el Sheikh during December with a clear message of intent from President Al Sisi to bring Africa closer together. President Abdel Fattah El Sisi hosted five African heads of state and top business leaders from across the continent. The Heads of State stressed the need for self-reliance and domestic resource mobilisation. The event offered business owners an opportunity to meet investors, engage with political leaders and policy makers and explore new ideas to improve business environment across the continent. The Forum wrapped up with a focus on China-Africa cooperation. In two private roundtables held on the sidelines of the event that the President held alongside other African heads of state and business leaders from Egypt and the rest of the continent, it was said that Al Sisi would do whatever he could to bring the continent together, both politically and economically. The Forum had a strong focus on increasing intraAfrica trade, inclusive growth and stronger China-Africa cooperation, especially in terms of technology transfer.

Egypt looks to play a key role in driving regional integration in Africa

During the event, Egypt also signed a deal with the World Bank for a US$1,15 billion development policy loan to fund the government’s plan to boost the economy. It is the last one in a series of three annual loans provided from 2015 to 2017 totalling US$3,15 billion. The deal supports the Egyptian economic reform programme aimed at creating jobs, ensuring energy security, strengthening public finances and enhancing business competitiveness. The final day of the Forum focused on industrial revolution for Africa and China-Africa economic relations. It was agreed that the China-Africa relationship was a win-win one. Ambassador Helen Hai, CEO of Made in Africa initiative, China, said China had a clear strategy for Africa, but the continent needs to be in the driving seat when it comes to discussions about the China-Africa relationship. She said the relationship was moving on from resources to partnerships with African countries, but they needed to be clear about what they wanted from China. She said 85 million jobs were likely to be exported from China in the next few years as their labour costs increase, and Africa was well placed to attract them. “If Africa can capture those jobs they can enjoy the same economic transformation China had.” However, Carlos Lopes, Former Executive Secretary, UNECA, and Professor Graduate School of Development Policy and Practice, University of Cape Town, Guinea-Bissau, pointed out it was not inevitable that the jobs would migrate to Africa. "The many jobs that could move out of China could be replaced by robots and automation, not Africans, and other regions would also compete for the kind of jobs that Africa seeks – namely those at the lower end of the value chain. A few African countries will make it, but not all," he said. "This huge move to get jobs can be elusive if we are not fast enough in creating opportunities. The window is closing very fast. We need to move quickly and do so in a way that is commensurate with the interests of China’s strategy." The three-day event, organised by Egypt’s Ministry of Investment and International Cooperation and the COMESA Regional Investment Agency (RIA), saw over 2,000 delegates from 75 countries attend the Forum. Minister of Investment and International Cooperation Sahar Nasr said that the forum’s sessions offered a chance to exchange expertise and showcase investment opportunities in Egypt and Africa.

The Conference Has Put Forward Five Recommendations: 1. Pumping new investments in Africa to boost economic growth and development. 2. The establishment of joint projects, particularly in infrastructure, to support investment and trade among African states. 3. Enhancing the role of the African private sector to increase investment rates in the continent. 4. The execution of programs that encourage entrepreneurship and the adoption of programs that would increase youth’s participation in the African economy. 5. Empowering women in all fields of economic activity, considering them as active members in the process of developing Africa and achieving economic stability. 22 www.railwaysafrica.com

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AFRICA UPDATE

NAKO SYSTRA TO BE ACQUIRED The Competition Commission has approved the proposed merger, without conditions, whereby Systra Société Anonyme à Directoire et Conseil de Surveillance SA (Systra SA) and Iliso Consulting (Pty) Ltd t/a Nako Iliso (Nako Iliso) intend to acquire Nako Systra (Pty) Ltd. Systra SA is an international engineering and consulting group with worldwide experience in the field of providing engineering services for mass transit modes such as railways, metro, monorails, tramways and buses throughout the entire lifecycle of a given mass transit project. Nako Iliso is a consulting engineering company that focuses on structural engineering, civil engineering, transportation, roads, project management and environmental management. Nako Systra is jointly owned and controlled by Nako Iliso and Systra SA. Nako Systra is a newly established joint venture company, established for the purpose of providing transport infrastructure engineering solutions, the scope of which will include mass transit such as bus rapid transit and rail, freight rail and logistic systems as well as transport planning. The Commission is of the view that the proposed transaction is unlikely to substantially prevent or lessen competition in the market. In addition, there are no public interest concerns.

RAIL TRIAL - FIRST TRAIN FROM JHB TO MAPUTO In the Southern African region, trade has traditionally selected road as the preferred mode of transport, with about 70% of goods being moved into the hinterland using trucks and only 30% making use of rail. Road does have the advantage of port-to-door delivery over rail, but for distances greater than 350km the operational and cost benefits start to diminish. Shippers and Consignees require both the lowest possible total transit time and cost. This is where the risks of road transport can quickly erode its initial value proposition. Congestion results in varying degrees of waiting in and around a port and en route to the cargo destination. This truck waiting time quickly escalates the cost of transportation and further increases the inventory holding costs for business. The ability to quickly move containers from vessel or inland depot directly onto rail is the key for a major positive impact on the development of the hinterlands trade.

Rail’s Key Benefits: Cost: Where the average cost per km is vastly lower than trucking. Reliability: The discipline of running to a preset timetable greatly assists with logistics planning by giving certainty of departure and arrival times. This is key for just-in-time logistics and/or lean inventory ordering practices, where rail's timetabled reliability is a natural fit, rather than the unpredictability of road congestion. Environmental Impact: The reduction of carbon emissions is vital for the environment and company’s green footprint. Every ton of cargo carried by rail

produces at least 80% less carbon dioxide than if moved by road. When compared with carrying the same tonnage by road, rail produces less than a tenth of the carbon monoxide, around a twentieth of the nitrogen oxide, less than nine per cent of the fine particulates and around 10 per cent of the volatile organic compounds. In November 2017, DP World Maputo successfully completed the first rail trial by moving 50 x 40 foot containers from Johannesburg to Maputo. Container discharge operations took 120min. This is a substantial step forward for the facilitation of Gauteng’s trade development. The rail service now provides the Gauteng market the option for its imports and exports to be connected with the nearest container terminal, paving the way for exponential growth derived from this new logistical capability. “In order to provide the regional markets with adequate options, DP World Maputo is investing to expand and modernise the container terminal, with the main objective of increasing the capacity, capability and competitiveness of Maputo” says Tejas Nataraj, CEO at DP World Maputo. DP World Maputo’s new rail siding of 1,500m can accommodate 200 TEUs (2 x Full Block Trains). In addition, the terminal's capacity has been increased from 150,000 TEU to 350,000 TEU now that the new 5ha pavement has been completed. This additional capacity, together with the company’s meticulous focus on productivity, now provides the hinterland region (South Africa, Swaziland, Zimbabwe) with an efficient gateway.

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AFRICA UPDATE

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TRANSNET FREIGHT RAIL EMPLOYEES CELEBRATE GCU QUALIFICATIONS Transnet Freight Rail (TFR) employees celebrated the completion of Glasgow Caledonian University (GCU) qualifications at a ceremony held in South Africa on December 7. GCU Principal and ViceChancellor, Professor Pamela Gillies CBE FRSE, led the fourth graduation ceremony held at the TFR’s School of Rail campus in Esselenpark with a leadership speech delivered by Transnet Group Chief Executive Mr Siyabonga Gama. A total of 183 TFR employees graduated with a BSc in Railway Operations Management, Diploma of Higher Education and Certificates of Higher Education in Railway Operations Management. Glasgow Caledonian University’s School for Work Based Education, has worked in partnership with the University of Johannesburg for four years to deliver this unique, bespoke programme to TFR, with the collaboration originating in a UK partnership with the Institution of Railway Operators. The sister programme in the UK trains operating companies and freight operating companies across the UK rail sector. More than 530 TFR employees have now successfully completed the programme since it was establishment in 2013. The programme is designed to enable Transnet’s Market Demand Strategy for 2021, and has been extended through a new contract to continue until 2021. TFR is Transnet’s largest division with 30,000 employees and maintains around 80% of Africa’s total rail network. Transnet is investing around R7 billion in skills development and training as it develops its infrastructure. Professor Pamela Gillies CBE FRSE, GCU Principal and ViceChancellor, said: “I congratulate our latest cohort of graduates and I am proud that the partnership between Glasgow 24 www.railwaysafrica.com

Caledonian University, Transnet Freight Rail, the University of Johannesburg and the Institution of Railway Operators continues to develop, as we co-create courses to enhance the life chances of Transnet employees and enabling the business to be as efficient and productive as it can be. This activity is an important part of our enduring commitment, as the University for the Common Good, to provide educational opportunities to working people in Africa.” Siyabonga Gama, Transnet Group Chief Executive, said: "The new knowledge and skills attained during this programme speaks directly to the company’s road to rail strategy which seeks to increase rail freight and reduce trucks on our roads. The men and women that we are celebrating today remain key players for Transnet to achieve this goal." The University signed a new five-year strategic partnership last September to expand its portfolio of sectorspecific railway operations management programmes, in partnership with the University of Johannesburg. The portfolio of flexible, workbased qualifications is an evolution of GCU’s successful 11-year partnership in the UK with the Institution of Railway Operators. Transnet Freight Rail, which specialises in the transportation of freight, is making its undergraduate BSc in Railway Operations Management and the new Masters Degree programme a core feature of its talent-management programme to achieve the company’s seven-year growth strategy. The company aims to expand and modernise the country’s rail, port and pipeline infrastructure to promote economic growth in South Africa. Almost 1,400 employees at middle, senior and management levels will enroll from 2017 to 2021.

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MOROCCO UNANIMOUSLY RE-ELECTED FOR UIC AFRICA REGION On December 7, 2017, the International Union of Railways (UIC) held its 91st General Assembly (AG) in Paris, bringing together more than 180 senior managers of railway networks from around the world. On the agenda: The presentation of the report of all activities carried out in 2017 and the adoption of the action plan for 2018.

During this statutory meeting, Morocco was unanimously re-elected, represented by Mr. Mohamed Rabie Khlie, Director General of the National Office of Railways of Morocco (ONCF), to the presidency of the Africa Region; this second term covers the period 2018-2022. ONCF has continued to share its experience and know-how with African networks, as well as provide technical support and assistance as part of their upgrading and modernisation programme.

MOU SIGNED FOR MALINGUNDE RAIL AND PORT SERVICES Sovereign Metals Limited recently reported that it has signed a transport logistics MoU with Central East African Railways (CEAR), an infrastructure and logistics consortium which Vale SA and Mitsui & Co. Ltd operate and have significant ownership. The MoU covers the provision of rail freight, port access and port handling services by CEAR to Sovereign for graphite concentrates produced from the Malingunde Project, subject to the parties entering into a binding agreement. The provision of the services is expected to be a 20-year term and 100,000tpa of concentrates, which provides upside to the Company’s initial 44,000tpa target. CEAR will supply and maintain all infrastructure, equipment and personnel required to provide the services. The parties are aiming to have a formal binding agreement by no later than the 30 June 2018.

AFRICA UPDATE

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AFRICAN DEVELOPMENT BANK - SYNTHETIC COUNTRY RESULTS REVIEW, TANZANIA The African Development Bank (AfDB) has released its Synthetic Country Results Review, this time dedicated to Tanzania. Between opportunities and challenges, this report analyses the economic situation of Tanzania, a country that has maintained an average growth rate of 6% over the last decade - supported by the industrial sector and agricultural exports - as well as its progress in the human development plan. The performance of the Bank's work in Tanzania is also scrutinised against the goals it has set itself, and how it intends to proceed to help the country achieve inclusive and sustainable development. Objective: to raise the country to middle-income status by 2025. "Tanzania is an excellent example of how the Bank can have an impact on development through its 'High 5' initiatives," said AfDB General Manager for East Africa Gabriel Negatu. "Thanks to our investments, the country is well on its way to becoming a middle-income country by 2025." Among other investments, the Bank is doing a great deal to modernise the roads, which are essential for the country's development and the well-being of its population: nearly 12,660km of roads have been built over the past ten years, facilitating the mobility of people and trade. The AfDB now plans to put more emphasis on improving urban transport systems and regional roads connecting Tanzania to neighbouring countries. Another priority for the Bank in Tanzania is to create a dynamic private sector that can provide productive jobs, which is crucial for the future of the country and its people, as some 800,000 young people enter the labour market every year. This Synthetic Country Results Review describes recent economic and social trends in Tanzania, particularly those related to the Bank's five key development priorities, High 5: Enlighten Africa and Supply Energy; to feed Africa; industrialise Africa; integrate Africa; and improve the quality of life of the people. It also looks at how the Bank manages to optimise its investments 26 www.railwaysafrica.com

by improving the quality of life of the populations: •

•

Enlighten Africa and provide energy - Some 70% of Tanzanians still do not have access to electricity and the demand for energy continues to grow. With its New Deal for Energy in Africa, the AfDB is working to unify efforts to provide universal access to energy. The Bank has built 630km of transmission and distribution lines. Feeding Africa - 40% of Tanzanians live without food security, while the country has extensive jackets of arable land. Optimal use of these lands in agriculture would significantly improve the living conditions of the population. This is what the Bank is doing, thanks to which 4 million Tanzanians have already seen their lives change dramatically. Industrialising Africa - The Tanzanian economy suffers from the lack of industrialisation. Only a quarter of the population has access to financing to carry out entrepreneurship and smallscale development projects. The Bank supports financial institutions that have provided 155,000 microloans and project investments that benefited 455,000 people. Integrating Africa - Through its Regional Integration Policy and Strategy, the Bank aims to facilitate the flow of goods and services, as well as the mobility of people and investments. It has built 12,660km of roads in the country. Improving the quality of life of people in Africa - Tanzania's economic growth has not been fast enough, nor inclusive enough to create jobs and improve people's quality of life. The Bank is working to strengthen the technical skills of thousands of Tanzanians to enable the country's economy to realise its full potential in sectors with high recruitment potential. The Bank has already enabled 3,860 people to benefit from vocational training and another million to gain access to education.

"Thanks to our investments, the country is well on its way to becoming a middle-income country by 2025." Gabriel Negatu, AfDB General Manager for East Africa

This report reviews Tanzania's progress on AfDB's High 5, based on a set of indicators in the 2016-2025 Results Measurement Framework. It also assesses the effectiveness of the Bank in managing its operations in the country. "Our footprint in Tanzania is strong because we have adjusted our service delivery model in project design to achieve sustainable results," says Simon Mizrahi, Director of Implementation, Performance Management and Product Development. In order to meet the specific needs of Tanzania, the Bank is getting closer to the ground and optimising the use of its resources. All these changes will help achieve the desired structural transformation in Tanzania and on the continent, in line with the Bank's ten-year strategy. The priorities of the High 5 initiatives will remain at the heart of the Bank's ambitious plans to support Tanzania's transformation within a decade. Today, the Bank has a portfolio of 21 operations in Tanzania, valued at US$1.8 billion.

6:2017

AFRICA UPDATE

RAILWAYS AFRICA

Key figures of the SITARAIL modernisation programme: • 853km of railway tracks to be replaced • 51 protected level crossings • 31 railway stations and 50 civil engineering works renovated

WORK STARTS ON RAILROAD BETWEEN CÔTE D’IVOIRE AND BURKINA FASO SITARAIL, a Bolloré Transport & Logistics subsidiary, is pleased to announce the official launch of work to upgrade the railroad network linking Abidjan in Côte d’Ivoire with Ouagadougou in Burkina Faso.

Through this project, the company is pursuing its efforts to substantially increase the merchandise and passenger transport capacities and to reduce routing delays between the two countries.

The work involves rail SITARAIL will spend a total replacement, upgrades of 260 billion CFA francs, of safety systems and including 85 billion in the renovation of stations, first phase running up until bridges, and maintenance 2021 and covering the workshops. Additionally, railroad renovation, plus the rolling stock will be 70 billion to acquire and renewed and expanded. modernise locomotives, Once the work is cars and IECHolden_506_ad_RA_180x120_traction-V2.pdf other equipment. completed, it will1 be2016/02/09

possible to transport over 5 million tonnes of merchandise and 800,000 passengers annually. This ambitious project marks a new phase in SITARAIL's development. The company will leverage its expertise and knowledge of the local environment to provide modern, reliable, high-performance rail services. This project fits into Bolloré Transport & Logistics' strategy of multimodal investment 1:04 PM and transformation of the

logistics chain all the way from the port terminal to the final destination. Thanks to the professional commitment of our 1,500 railway workers and our 250 partners and subcontractors both in Côte d’Ivoire and Burkina Faso, SITARAIL is demonstrating its social responsibility. It helps to modernise the strategic infrastructures on which the region's economic development depends.

1. Building information modelling – Wikipedia https://en.wikipedia.org/wiki/Building_information_modeling

TRACTION MOTOR MANUFACTURING SPECIALISTS TRUSTED PARTNER TO THE WORLD’S LEADING RAIL EQUIPMENT OEM’S

CMY

Scope of work includes turnkey production of traction motors, gear boxes and other rail vehicle assemblies;

Producing traction motors and components for locomotive, subway, LRV and bus applications;

Product in service with the most demanding Transit Authorities including NYMTA, CTA, TTC, BART and more;

Largest producer of transit traction motors in North America.

Product in service in over 80 000 traction motors and over 15 000 rail vehicles worldwide;

Serving the rail industry for over 100 years with over 55 years in traction motors;

ISO 9001: 2008 certified manufacturing facilities provide exceptional production quality;

Facilities in USA, Canada, Mexico and South Africa provide localisation - including Buy America compliant traction motors, gear boxes and global support;

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+27 (0) 10 005 1671 www.railwaysafrica.com 27

Rehabilitation, Maintenance and Emergencies Rehabilitation, Maintenance and Emergencies (RME) is the Specialist Construction Unit of Transnet. RME is responsible for the maintenance, rehabilitation and construction of port and rail infrastructure. RME executes, maintains and constructs projects for the external market. External customers are TFR customers with private sidings, Eskom, Municipalities, SADC countries, Gautrain and Prasa. RME has a staff complement of 4,000 employees and an annual turnover is R1.5bn. RME offers experienced professionals in Civil Engineering, Electrical Engineering, Mechanical Engineering, Project Management, Costing and Construction. RME have completed over 100 projects in South Africa and the SADC region.

CIVIL ENGINEERING WORKS Concrete Structures:

Refurbishment or construction of bridges, culverts, inspection pits, track slabs, crane beams, paving slabs, floors and foundations. Resealing of tunnels and concrete drains.

Steel Structures:

Refurbishment or construction of bridges, sheds, warehouses and microwave masts.

Services:

Refurbishment or construction of storm water reticulation, sewer reticulation, fire hydrant installations, pipe and chamber systems and sub-surface drainage.

Buildings:

Refurbishment or construction of offices, residential houses, relay rooms, sub-stations, mess and ablution facilities.

Earthworks:

ELECTRICAL ENGINEERING WORKS Construction And Upgrading Of Overhead Traction Equipment (OHTE) And Related Electrical Infrastructure: 25KV AC electrification system, 3KV DC electrification system, 50KV AC electrification system, extension of loops, installation of Motor Operated Switches, 11KV AC transmission.

Refurbishment and Maintenance Of:

OHTE Wiring, OHTE Protection systems, Neutral Sections, Track Switches, H-Frames, Earthing and Bonding, etc.

Emergencies:

Replacement of overhead cables, repairs of damaged cables, major breakdowns (hook-ups and derailments).

Electrical Lighting and Power (EL&P):

Construction, refurbishment and maintenance of substations, power distribution and high masts lighting for different yards.

Construction of formation layers, drainage, roads and level crossings, as well as construction of gabion structures.

Transnet Freight Rail is a division of Transnet SOC Ltd Reg No: 1990/000900/30 Transnet Freight Rail is an Authorised Financial Services Provider (FSP 18828) Tel: 0860 690 730

www.transnetfreightrail-tfr.net

General Manager - RME Mr. Mdu Mlaba Email: mdu.mlaba@transnet.net Tel: +27 11 878 7099 Executive Manager : Business Development - RME Mr. Ash Naidoo Email: ash.naidoo@transnet.net Tel : (011) 878 7291

delivering freight reliably

AGILE . ADMIRED . DIGITAL . UNITED

TRACK ENGINEERING WORKS

Construction of new Track Infrastructure, including upgrades and rehabilitation. • Track evaluations • Set and crossing replacement • Re-railing (36m – 240m lengths) and destressing • Re-sleepering • Screening and profiling of ballast • Major emergency repairs (wash-aways / derailments) • Track welding: • Exothermic welding • Removal of wheel spin burns (skid-marks) • Repairing of crossings (preventative grinding) • Removal of ultrasonic detected defects • Cropping and creeping of rails • Loading, off-loading of bulk material, rails, sleepers and ballast including classifying and sorting of second hand track material.

FLEET

RME manages a fleet of some 642 vehicles across the country ranging from standard cars and bakkies to specialised heavy commercial vehicles such as dual purpose welding trucks and troop carriers that have been custom designed and built to ensure that we have fit for purpose vehicles.

SIGNALLING ENGINEERING WORKS Installation Of New Systems:

Fail Safe Data Transfer (FSDT) control over fibre optic cable, radio controlled crossing places, protected level crossings, anti-vandal equipment, new CS90 remote control and CTC centres, cable replacement programs, new signals and points and electrical interlocking units.

Workshop Wiring and Assembly:

Pre-assembly and wiring of equipment. Clean and refurbish existing interlocking units, site workshops when required.

Debugging, Pre-Testing:

Testing and commissioning of signalling works. All signalling works installed are pre-tested, debugged and commissioned by a registered Signalling Test Engineer. Pre-wire and assembly of various signalling equipment can be wired and tested in workshop conditions.

Construction Works For Asset Rationalisation: Re-positioning of points and signals, rationalisation of station layouts by removal of equipment from layout and interlocking, interlocking clean-up to incorporate alterations, installation of temporary interlocking crossover facilities to enable formation rehabilitation of track structure.

Rehabilitation and Re-instatement Of:

RME

Existing signalling structure, train detection equipment, axle counters, points machines, existing interlocking and remote control.

AFRICA UPDATE

RAILWAYS AFRICA

6:2017

INFRASTRUCTURE GROWTH ESSENTIAL TO ENHANCE SUPPLY CHAINS IN AFRICA

Africa’s trade potential is enormous – 400% increase in trade between Africa and rest of the world in last two decades Infrastructure growth that leads to new commerce and employment will enhance supply chains, and tech innovation will be key to reducing the cost of development in Africa, said DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem during his meetings with three African heads of state in Dubai recently. On the side lines of the Global Business Forum on Africa, Mr. Bin Sulayem met with President of Uganda Yoweri Museveni, President of Rwanda Paul Kagame and Vice President of Ghana Mahamudu Bawumia to discuss Africa’s growing trade potential. Mr. Bin Sulayem shed light on the company’s business plans for the continent, where its presence has grown from five to seven countries in the last two years, including Algeria, Egypt, Djibouti, Senegal,

Mozambique, Rwanda and Somaliland. DP World has partnered with local governments in all seven countries – developing trade infrastructure including ports, inland container depots (ICDs), customs processes and multimodal, seamless supply chains for ease of doing business. In Senegal, the company recently announced that it will build an integrated port, logistics and economic zone in Dakar for the creation of cargo and free movement of goods to support the country’s economic diversification, boosting non-resource exports. DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said “Africa’s trade potential is enormous, evident in the 400% increase in trade between Africa and rest of the world in last two decades. Infrastructure development is more

30 www.railwaysafrica.com

important than ever to maintain and increase this growth momentum. “I’ve done several tours of Africa in recent years and always look forward to having meaningful discussions with leaders of governments eager to develop their trade potential. We’ve always maintained that Public Private Partnerships (PPPs) are the route to progress – they are an effective model to fund projects, especially those on infrastructure, while robust government policy and transparency are essential to its success. “We’ve partnered with local governments in all our countries of operations in Africa. The Port of Maputo is an example of the power of partnerships – it’s well located to drive growth and a gateway to southern Africa’s vast economic hinterland. It has had a significant impact on the economy, employing

2,000 people directly and 10,000 indirectly, while port volumes have grown 286% since 2003. “We also expect that technology will completely disrupt supply chains in the future – consider the implications of blockchains, the Internet of Things and autonomous ships – reducing the cost of trade and development in Africa too. “There’s also great potential for trade between African countries, while the continent’s free trade area is also becoming the world’s largest single free trade area by number of countries. But one out of four African countries rely on one or two commodities for 75% of their export revenues and so a focus on economic diversification will be beneficial to future growth.”

6:2017

RAILWAYS AFRICA

AFRICA UPDATE

EGYPT EXPLORES MONORAIL New energy technology company BYD recently announced the possible expansion of its SkyRail monorail to the ancient Egyptian port city of Alexandria. A Memorandum of Understanding (MOU) was signed late October, by General Engineer Khaled Eleiwa - Chairman of the Alexandria Passenger Transportation Authority and Mr.AD Huang General Manager of BYD Middle East & Africa Auto Sales Division, in the presence of the top management team of the Alexandria Passenger Transportation authority and Mr. Amr Soliman Vice Chairman & CEO, Mr. Yasser Abdallah General Manager of Alamal Foreign Trade Co., (BYD’s Agent & Distributor in Egypt). It is the first time SkyRail is being considered on the African continent. The proposed project will plan for the construction of a 128km track. The potential collaboration comes four years after Alexandria local authorities began exploring options to relieve their city of chronic traffic jams. BYD’s SkyRail is substantially more cost effective and quicker to construct compared to a subway, requiring only a fifth of the cost and one third of the construction time. BYD has conducted feasibility studies in more than 100 cities worldwide, including the city of Iloilo in the Philippines, and has entered into strategic partnerships with over 10 cities in China. SkyRail is currently operating in Yinchuan, an industrial city in China’s northwest. Construction of BYD SkyRail lines are also expected to begin in 20 cities in 2018.

KENYA SGR, ANOTHER MILESTONE On 1 December 2017, The Standard Gauge Railway freight service commenced with four freight trains operating between Port Reitz station situated at the Port of Mombasa and the Nairobi freight terminus/inland container depot in Nairobi’s Embakasi area. Goods arriving at the Port of Mombasa will be transported to either destinations in Nairobi.

www.railwaysafrica.com 31

AFRICA UPDATE

RAILWAYS AFRICA

GUINEA: SMB-WINNING ANNOUNCES A US$3BILLION INVESTMENT

EGYPT NATIONAL RAILWAYS AWARDS CONTRACT TO THALES

The SMB-Winning consortium will launch feasibility studies for the construction of an alumina refinery and a railway line to be built by 2022

Thales has been awarded a three year contract by Egypt National Railways (ENR) for the modernisation of the signalling and telecommunications systems and all works related to a 180km section of line between the towns of Asyut and Nagh Hammadi, located in the Upper Egypt portion of the Alexandria– Cairo–Aswan rail corridor.

The SMB-Winning consortium, a major player in the bauxite sector, presented to His Excellency Alpha Condé, President of the Republic of Guinea, a project to build an alumina refinery in Guinea as well as a railway to open up the Boffa corridor to carry bauxite to the refinery and the Dapilon river port. The total investment planned for the whole project is estimated at US$3 billion. The feasibility and social and environmental impact studies will be carried out as soon as early 2018 for a start of works planned in 2019. The construction phase will create 10,000 jobs and mobilise local companies, among which experts in civil engineering, extraction, construction and services will be involved. The refinery will be located in Dapilon, in the Boké Special Economic Zone. “This investment illustrates our ambitions for the Boké region and our contribution to Guinea’s economic and social development. The mining sector, together with agriculture, is the lung of the country’s development and, in our approach as a mining operator, must also focus on facilitating a local redistribution of the benefits, especially in favour of the communities, education, jobs, and priority sectors such as the agro-industry,” comments Frédéric Bouzigues, Managing Director of Société Minière de Boké (SMB).

Key Points: • The contract will enable the installation of leading-edge electronic interlocking systems •

An integrated signalling and communication solution will improve railway security and safety and allow trains to increase their speed from 120km/h to 160km/h

•

The project includes protecting signalling and telecommunications systems against cyber attacks

6:2017

speeds of up to 160km/h, as opposed to the current 120km/h, and traffic volumes are expected to double. All of these changes will increase passenger and goods transport capacity across the backbone line that links the North and South of the country from Alexandria to Cairo all the way up to Aswan. This solution is designed to work together with the existing ATP system (Automatic Train Protection) and a future European Train Control System (ETCS). The project also includes full protection of signalling and telecommunications systems against cyber attacks to ensure safety and system availability. This is Thales' second contract in this domain in Egypt and follows the project awarded in 2013 to modernise the line connecting Alexandria with Cairo. ENR is the secondlargest railway operator in

“The local processing of raw materials is one of the biggest challenges for a more inclusive growth in Africa because it creates more value locally while leading to economic diversification. This commitment to Guinea also demonstrates our confidence in the continued improvement of both its business environment and macroeconomic stability. This project also demonstrates the technical and financial complementarity of our Franco-Sino-Singaporean consortium to carry out their types of ambitious projects,” said Fadi Wazni, Chairman of SMB. Founded in 2014, the SMB-Winning consortium brings together three partners in the fields of bauxite mining, production and transportation: Singaporean shipping company Winning Shipping Ltd, UMS, a French owned transport and logistics company that has been present in Guinea for over 20 years, and Shandong Weiqiao, a leading Chinese company in aluminium production. The consortium has planned to export 30 million tons of bauxite in 2017, making Guinea the world’s largest exporter of bauxite and the consortium one of the major contributors to the country’s gross domestic product. 32 www.railwaysafrica.com

The project is part of an ambitious plan, promoted by the Ministry of Transport and completely financed by the World Bank, aimed at transforming Egypt's railway infrastructure. This project will improve traffic safety and security to allow trains to travel at

Africa. The network includes more than 5,000km of lines and is the longestestablished rail network in the world after the United Kingdom's. Today, Thales’s ETCS solutions have been deployed on the world’s most prestigious and demanding rail projects.

6:2017

AFRICA UPDATE

RAILWAYS AFRICA

TOWARDS A NEW ECONOMIC ORDER Minister of Finance and Economic Development, the Hon. P. A. Chinamasa (M.P.) recently presented the National Budget for 2018, aptly titled “Towards A New Economic Order”. “Our quest for reversing economic decline and eradicating unemployment and poverty can only become reality if we walk the talk regarding the adoption of a paradigm shift in the way we do business and manage our economy, public enterprises and finances,” he said.

In this regard, following Government approval, negotiations to recapitalise NRZ, in partnership with a Consortium of Diaspora Infrastructure Development Group (DIDG) and Transnet of South Africa, are at an advanced stage.

The re-capitalisation programme targets the refurbishment and replacement of NRZ rolling stock, signaling, ICT and track infrastructure, among others, under a joint venture partnership model estimated to cost US$408 million.

The "Framework Agreement" has been finalised, paving way for the development of a Model Agreement, which will be submitted to Cabinet for approval, with all the processes expected to be concluded by the first quarter of 2018.

This will raise NRZ’s capacity to move cargo from the current 3.8 million to its peak of 18 million tonnes per annum. Meanwhile, a Budget provision of US$10 million has been set aside to cater for required emergency works of the network.

Additional Rail Related Input From The Budget Government will unpack the underlying causes of the high transport costs, with a view to aligning them to regional standards and enhance the countries competitiveness. Transport infrastructure investment will be prioritised in 2018, given the critical role of transport infrastructure in socio-economic development of the country. Overall support to the sector amounts to US$386,1 million to be funded through fiscal resources, US$106,6 million, the Road Fund, US$233,6 million and loan financing of US$45,9 million. Strategies to recapitalise the National Railways of Zimbabwe (NRZ) provide an opportunity for restoration of the role of rail transport, an affordable mode for bulk transportation which eases the cost of doing business and, hence, domestic production competitiveness. Continues on page 34

FREE HEALTH CHECKS FOR STAFF TAZARA employees in Tanzania have started undergoing free and voluntary medical check-ups, a programme organised by the regional management to ensure that employees know their health status. The Regional General Manager, Mr. Fuad Abdallah, encouraged employees in the region to participate, saying that the aim of the exercise was to promote a healthy workforce and to plan for them appropriately so as to improve the performance of the Authority.

Mr Kitosi Marcus being examined in Dar es Salaam.

Ms Phoibe Hellon being examined in Dar es Salaam.

The check-ups include examination of the eyes and ears for any impairments as well as checking for diseases such as diabetes and blood pressure. He advised that workers accept the exercise as an opportunity, noting that prevention was better than cure.

www.railwaysafrica.com 33

AFRICA UPDATE

RAILWAYS AFRICA

6:2017

Continued from page 33

Beitbridge Re-Development The re-development of Beitbridge has long been recognised as critical in addressing the congestion and chaotic situation at the main port of entry, resulting in delays, as well as lost production and revenue to the fiscus. Implementation of identified infrastructure deficiencies and process flow improvements has been mired in controversy and disagreements among government departments and officials, to the detriment of the overall economy.

• •

• • • •

Through this Budget, the Zimbabwean government have committed themselves to start addressing the infrastructure bottlenecks at Beitbridge Border Post. In this regard, an allocation of US$14.5 million has been set aside to cover the following:

Relocation of VID from the border post: US$4.2 million Construction of a border control building to house non-critical stakeholders currently on the border: US$1.2 million Completion of institutional residential flats at Beitbridge: US$4 million Construction of separate lanes for commercial, buses and private vehicles: US$2.3 million Refurbishment of sewer and water reticulation systems: US$1.3 million Perimeter fencing: US$1.8 million.

Ports of Entry and Routes The National Railways of Zimbabwe operates some inland railway sidings through which a significant volume of imported and exported goods in transit to local and export

destinations. Rutenga inland railway siding, operated by the NRZ, is one of the strategically located private railway sidings that accounts for a significant volume of “non-custom” goods. The Minister responsible for Finance may, subject to such conditions as he may specify, designate places to be Ports through which goods may be imported or exported. Rutenga is, however, not designated as a port of entry, hence this poses a risk to custom duties and other taxes payable on such goods, since no ZIMRA officials are stationed there to record and take account. In order to safeguard revenue to the fiscus, it is proposed to designate Rutenga as a Port of Entry, with effect from 1 January 2018.

CENTRAL TRAIN SERVICES SUSPENDED INDEFINITELY IN THE WESTERN CAPE Metrorail Western Cape has resorted to suspending all central train services, as no trains are able to operate on the Chris Hani – Kapteinsklip and Bishop Lavis lines as a result of extreme vandalism. This unprecedented move by the Western Cape Management to suspend services was as a result of extreme vandalism against several mini sub-stations, cables and back-up batteries that feed electricity to the signalling system. This is a critical safety feature that controls train movement and ensures that trains run without colliding into each other while powering train movement.

As a result, no train tickets will be sold and stations will be closed until the service is fully restored, which could take weeks. Commuters are advised to find alternative transport as Metrorail regrettably has no busses to offer as alternative transport.

for both rolling stock and infrastructure upgrades of R173 billion, and on the eve of launching the new Train Manufacturing Plant, we still see such criminality against a community asset," said Mr Cromet Molepo, the PRASA Acting Group CEO.

The drastic measure comes in the wake of months of sustained vandalism, cable theft and destruction of critical infrastructure in the Bontheuwel – Netreg – Nyanga area reaching a stage where no further service is possible.

PRASA had already earmarked the highvolume corridor for modernisation, which would have seen the deployment of the new Metrorail trains in the area similar to the Pretoria to Piennarsport corridor in Gauteng. In addition, the project would have created job opportunities and, in the future, improved rail services on that line. “Unfortunately,

"It is unfortunate that while the business has already begun with the critical Modernisation Programme

Stolen Rail Clippers that hold the rail tracks down on the concrete ballast.

34 www.railwaysafrica.com

Stolen Rail Clippers that hold the rail tracks down on the concrete ballast.

we are now spending millions of Rand to repair old infrastructure and further delaying the Modernisation Programme in that area”, he added. “Our communities must be concerned and outraged about the level of vandalism and criminality that is happening just outside their doorstep. They must ask themselves, what happens when the vandalism starts to spill over into their own homes? This problem is much bigger than a singular source of response, these crimes are committed by our communities, people living in our own homes”, concluded Molepo.

Vandalised sub-station (back).

6:2017

AFRICA UPDATE

RAILWAYS AFRICA

PRASA, FRENCH RAIL OPERATOR SNCF AND FRENCH DEVELOPMENT AGENCY SIGN PARTNERSHIP AGREEMENT France’s national state-owned railway company SNCF, the French Development Agency (AFD) and the Passenger Rail Agency of South Africa (PRASA) have signed a tripartite financial partnership agreement amounting to R6,15 million in the form of a grant. The 12-month agreement, starting in December 2017, allows France (through SNCF) to provide expertise, training and the exchange of experiences, with a view to strengthening the capacity of PRASA, including the take-over of

ownership of the new Alstom-Gibela metro rail trains. In October 2013, PRASA awarded French company Alstom (through its local subsidiary Gibela Rail Transport Consortium) a rolling stock contract worth R59 billion to supply 3,600 train cars (600 trains). They are being manufactured in Dunnottar Park, Ekurhuleni. Commissioning of the new train-sets started in early 2017, with the new service between Pienaarspoort to Pretoria already launched by South Africa's President Jacob Zuma in

May 2017. More new train-sets will be delivered to PRASA and the delivery programme is scheduled until 2025, starting in Gauteng, followed by the Western Cape, KwaZulu-Natal, and lastly the Eastern Cape. This partnership with SNCF will ensure PRASA’s new trains are operation-ready, deployed on time, and operated with the support of France’s extensive experience in the railway transport industry. In addition, SNCF will deploy a technical expert to be permanently based in South Africa for the duration of the agreement.

NEW APPOINTMENTS TO THE BOARD – NRZ The Minister of Transport and Infrastructural Development Hon. Dr J Gumbo, recently appointed a new board for the National Railways of Zimbabwe (NRZ) with the intention that they will assist the board chair Mr Larry Mavima in the recapitalisation programme. The appointments are for a period of three years with effect from 1 November 2017. The board includes previous board members whose term had not yet expired.

transport industry and business. The board members are as follows:

The board comprises members from both the public and private sector with relevant experience in the rail

•

General William Dube - Vice Chair

•

Mr. Joseph Mashika - Board Member

•

Mrs. Nomatemba Ndlovu - Board Member

•

Ms. A. Karonga - Board Member

•

Mr. Eleshkuamar Patel - Board Member

•

Mr. Kennias Mafukidze - Board Member

•

Eng. L. A. Mukwada - Board Member

HIGH CAPACITY I PRECISION I RELIABILITY

3 sleeper continuous action tamping for high production plain track tamping with integrated stabilisation

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Selecting the Right Tamping Machine is Essential for Productivity and Durability Our range of heavy on-track tamping machines is a reflection of the extensive research and technical development invested into creating the world’s highest standards of reliability, quality and features. The result of this is evident in the durability of the tamped track. Different tamping machine designs are available to meet every possible tamping requirement. Plasser South Africa provides specialist advice to select the right machine with regards to production, its position in the existing fleet, whether it should be plain or universal track, and if universal is selected; many different features must be considered such as 3rd rail lifting, split units, wheel base, etc. Plasser South Africa (Pty) Ltd | PO Box 103, Maraisburg, 1700 | Tel: 011-761-2400 | info@plasser.co.za

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2016/02/11 10:44 AM www.railwaysafrica .com 35

We move more than just freight! Transnet Freight Rail is a division of Transnet SOC Ltd Reg No: 1990/000900/30 Transnet Freight Rail is an Authorised Financial Services Provider (FSP 18828) Tel: 0860 690 730

Transnet Freight Rail is investing in the positive progress of the South African economy. Investment programmes in rolling stock and infrastructure, together with increased volume growth, skills development and training all equate to a South African economy on the move, in the right direction.

delivering freight reliably

www.transnetfreightrail-tfr.net

AFRICA UPDATE

WE NEED POLITICAL WILL TO REVAMP TAZARA Political will is all it requires to completely revamp the TanzaniaZambia Railway Authority (TAZARA) today, the Chinese Deputy Ambassador to Tanzania, Mr. Guo Haodong has said. Speaking in Dar es Salaam during a courtesy call meeting with the Managing Director of TAZARA on Friday 15th December 2017, Mr. Guo said, China, Tanzania and Zambia could easily resolve the challenges of TAZARA. “At the time of constructing TAZARA between 1970 and 1975, the three countries had more daunting problems then. Today, all three countries are far more advanced than they were in the 1970's. Therefore, it is a matter of political will that is required to revamp this company and take it to another level,” said Mr Guo. Mr Guo lamented about the irony of the railway’s poor performance in Tanzania and Zambia, citing an example that, when he travelled to Mbeya by road, the highway was heavily congested with trucks carrying heavy loads and yet just a few metres parallel to the road, the railway track was lying idle. Eng. Ching’andu welcomed the Deputy Ambassador and thanked the people of China for their unwavering support throughout the life of TAZARA. He maintained that the authority was doing its best to uplift the performance of the railway under very limiting circumstances, due to low equipment capacity.

RAILWAYS AFRICA

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NIGERIA TO ESTABLISH SIX INLAND CONTAINER DEPOTS The Federal Government has approved the Concession as well as the establishment of six container depots across the geo-political zones at Erunmu, Ibadan in South -West, Isiala-Ngwa, Aba in South-East, Funtua, Katshina and Zawachiki, Kano in the North-West, Heipang, Jos in NorthCentral and Jauri, Maiduguri in North-East. These Projects are already at various stages of construction, while the Kaduna ICNL Inland Dry Port which received its concession recently - has been completed and awaiting commissioning to commence full operations. According to Minister of Transport Chibuike Amaechi, this was necessary as "Government is focusing on linking the various transport modes so as to strengthen the intermodal transport of goods and passengers, as well as increased maintenance and capacity expansion to improve on the state of infrastructure." He said that the Inland Container Depots (ICDs) are ports of origin for exports and imports and will ease transportation of cargo to the hinterland and even landlocked neighbouring countries, noting that ICD's are consolidation centers for export of non-oil, agricultural commodities and solid mineral products. The Hon. Minister also disclosed that Government has provided the institutional and legal framework for the establishment of Truck Transit Parks (TTPs) by the National Integrated Infrastructure Master Plan 20142043. He noted that in a bid to facilitate speedy delivery of TTPs, feasibility studies have been conducted for their establishment at Lokoja in Kogi State, Obollo-Afor in Enugu State, Jebba in Niger State, Umunede in Delta State and Port Novo Creek. He stated that TTPs are inevitable, as road transport accounts for over ninety percent of all freight and passenger movement in the country. From left: The Executive Governor of Kebbi State, Alh. Atiku Ma’Muud, Hon. Minister of Transportation, Rt. Hon. Hon. Chibuike Rotimi Amaechi and Chairman, Committee on Aviation, Sen. Aliero Adamu at the occasion in Lagos.

Hon. Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi (middle) flanked from right by the Executive Governor of Kirbi State, Ahj. Atiku Ma’Muud, Prof. Wole Soyinka, Adamu Aliero, Chairman, Senate Committee on Aviation, and left by Sen. Sani Yerima, Chairman, Sen. Committee on Marine Transport, Dr. Paul Asani, House of Representative Committee on Ports and Harbour, Representative of Oyo State Governor, Mrs.Tolu Sodipe and Permanent Secretary, Federal Ministry of Transportation, Sabiu Zakari.

“We are grateful for the support we have received in the past. We are also thankful that some initiatives are being considered by the governments to reinvigorate this railway. “With the limited capacity that we have, we have managed to reverse the sliding trend in the performance of this company in the last two years, having come from a low of 88,000mt of freight per annum to an annual haulage of close to 200,000mt currently, which is a turn-around of more than 90%,” said the Managing Director.

DP WORLD TO DEVELOP FREE ZONE IN SOMALILAND

Eng. Ching’andu also said that more needs to be done to realise the full potential of TAZARA, but that this needed commitment and concerted efforts from all stakeholders to get the railway back on track.

The development is based on DP World’s Jebel Ali Free Zone (Jafza) in Dubai and aims to attract investments, encourage trade, create new jobs

38 www.railwaysafrica.com

Global trade enabler DP World will develop a greenfield economic free zone in Somaliland to complement the development of the Port of Berbera, which has seen record container volumes under DP World management. DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem and Republic of Somaliland Minister for Foreign Affairs and International Cooperation Dr. Saad Ali Shire signed the agreement for the Berbera Free Zone (BFZ) in Dubai early November, in the presence of senior company and government officials.

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Continued from page 38

and position Berbera as a gateway port for the region. Under the terms of the agreement, DP World will develop BFZ in phases, with the first phase focusing on four square kilometres of land out of the 12.2 square kilometres earmarked for the project. Future phases will be detailed in a concept plan together with the projected capital investment required from DP World for its development. Each phase of the BFZ will start once the previous phase has achieved 85% occupancy. It will target a wide range of businesses, including warehousing, logistics, traders, manufacturers and other related businesses. DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said “We are excited by Somaliland’s development opportunities which has parallels with the start of our own growth in Dubai and the UAE. We look forward to finalising the details of the Berbera Free Zone with the next government of Somaliland and look forward to our continued partnership. We thank the people of Berbera and Somaliland for welcoming us to their country and the trust they’ve placed in us as port operators and trade enablers. Our vision is to make Berbera a trading and transportation hub for the Horn of Africa and we look forward to achieving this together.”

THE FIRST AFRICAN RAILWAY CENTRE OF EXCELLENCE IS BUILT IN ETHIOPIA The African Railway Center of Excellence (ARCE) in Ethiopia, recently offered a half day workshop focused on “Education and Research in Railway Engineering “at Addis Ababa Institute of Technology (AAiT). Ambassadors from Uganda, Rwanda and Somalia, along with students from Uganda, Kenya, Rwanda, Malawi, Somalia, Eritrea and other African countries, as well as various stakeholders and other invited guests attended the workshop. With the support of the World Bank Group (WBG), Addis Ababa Institute of Technology has designed and developed the African Railway Center of Excellence (ARCE) programme to train African students in railway disciplines.

ARCE is basically responsible for creating skilled manpower in railway technology and engineering by establishing a wellorganized education and research institute over the foundation of the already existing Railway Engineering programmes. The center has produced over 300 graduates in the field of railway Civil Engineering, Rolling Stock Engineering and Electrical Engineering for Railway system. The first railway education program in Ethiopia and Africa was launched in 2012, in Addis Ababa Institute of Technology (AAiT), Addis Ababa University in collaboration with ERC.

UPGRADED NANDI-MKWASINE RAILWAY LINE The National Railways of Zimbabwe (NRZ), together with other partners, has refurbished the Nandi-Mkwasine railway line in Chiredzi at a cost of more than US$10 million. The refurbished 34.5km track was commissioned in Zone 3 Mkwasine on 6 December 2017. The rehabilitation of the line is a result of a successful collaboration between the Government of Zimbabwe and the European Union, which provided the bulk of the funding under the National Sugar Adaptation Trust (NSAT) through Canelands Trust, an organisation that helps outgrower sugarcane farmers in the Lowveld, Tongaat Hulett and NRZ. Work to rehabilitate the line started in 2013 and was done in two phases. The old track was made of rail manufactured between 1930 and 1956 which had deteriorated due to wear and tear as well as damage from derailments. The refurbishment exercise saw an upgrading of the track from 30kg to a heavier 40kg track and the replacement of steel sleepers with 34,000 concrete sleepers. The original 30kg track was only designed to carry light loads using light locomotives. However, cognisant of the need to move greater tonnages of sugar from the fields to the mills, the NRZ allowed the use of heavier locomotives which could only travel at restricted speeds and resulted in increased maintenance costs on the line. The refurbishment was also necessitated by the need to cater for an anticipated increase in sugar production in the area. The completion of the project means that heavier locomotives capable of moving increased volumes will now haul sugar without speed restrictions, reducing the reliance on costly road transport. The EU provided a grant of US$7.495 million to buy necessary materials required for the refurbishment and upgrading exercise, while the NRZ provided technical expertise and carried out the work. The project created more than 100 jobs for members of the local community who were employed by the NRZ as casual labour. The upgrading of the line will benefit new farmers resettled by the Government in Mkwasine under the fast track resettlement programme, as they will be able to move increased cane volumes to sugar mills in Triangle and Chiredzi. In the 2014/16 sugar season, the farmers produced 1.4 million tonnes of sugarcane, of which 740,000 tonnes was moved to the mills using the railway line. The rehabilitation of the line is one of the measures being undertaken by the NRZ to improve capacity. The NRZ is embarking on a US$400 million recapitalisation exercise which will see investment in track rehabilitation, acquisition of locomotives, wagons and Information Communication Technology among other infrastructure to capacitate the organisation to increase freight volumes. The Diaspora Investment Development Group/Transnet Consortium was awarded a tender to recapitalise the parastatal, and the Government has given the NRZ the green light to open negotiations with the consortium which will lead to the injection of capital into the organisation. www.railwaysafrica.com 39

AFRICA UPDATE

PRESIDENT MUSEVENI WOOS ARAB INVESTORS TO UGANDA President Yoweri Museveni used his time at the sidelines of the fourth Global Business Forum on Africa to reach out to various investors based in Dubai, urging them to exploit the great investment opportunities Uganda and the region offers. “Since you are business people, we must be talking about profits. When you talk of Uganda and Africa, you are talking about peace as an enabling environment; which we have. We have raw materials, and have a population of 40 million people that’s a market. And if we talk of integration we have a four-tear market,” the President said. The President said the four-tier market includes that of Uganda, East Africa, COMESA with a combined market of 600 million people and the whole of Africa with a market of 1.3 billion people.

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VALE ANNOUNCES THE SIGNING OF PROJECT FINANCE FOR NACALA Vale S.A. has announced that the Nacala Logistic Corridor (NLC) companies recently signed the binding financing contracts in the form of a project finance, through which NLC will raise US$2.730billion, broken down as follows: •

US$1.030 billion from Japan Bank for International Cooperation (JBIC)

•

US$1.000 billion loan insured by Nippon Export and Investment Insurance (NEXI) from the following institutions: Sumitomo Mitsui Banking Corporation; The Bank of Tokyo Mitsubishi UFJ Ltd; Mizuho Bank Limited; Sumitomo Mitsui Trust Bank Limited; Nippon Life Insurance Company and Standard Chartered Bank

•

US$400 million loan insured by Export Credit Insurance of South Africa Limited (ECIC) from the following institutions: ABSA Bank Limited; Investec Bank Limited; Rand Merchant Bank and The Standard Bank of South Africa Limited

•

US$300 million from the African Development Bank (AfDB)

The project finance facility will be repaid over 14 years, with the proceeds generated from the tariff related to the coal transportation services and from general cargo services provided by NLC. The tariff was introduced in April 2017 upon the completion of the equity transaction with Mitsui and the subsequent deconsolidation of NLC. The Nacala project finance completes the investment structure devised to support the ramp-up of the logistic corridor until full capacity utilisation. The completion of the transaction and the drawdown of the proceeds are subject to usual conditions precedent for project finance and are expected to happen shortly. The funds received will be mostly paid to Vale to take out part of Vale’s shareholders loans conceded for the construction of NLC, but will also be used to support the ramp up of the corridor.

President Museveni encouraged participants to invest in Uganda citing peace and stability, infrastructure development, especially electricity, roads and railway lines which he said is a stimuli for investments. "There are plenty of raw materials, minerals, tourism and so on, so when you invest there you have access to all these" he added. "I don't have to bother investors with taxes, what I want is for them to invest, use our raw materials, create jobs, add value and promote exports," he said.

40 www.railwaysafrica.com

NLC will raise US$ 2,730 billion through a Project Finance

The project finance also demonstrates the institutional maturity and the government support in both Mozambique and Malawi. The authorities at all government levels fully cooperated and enabled all the regulatory, financial and legal frameworks that support the Project Finance, for which Vale and Mitsui are deeply thankful. Vale wishes that the Nacala Project Finance becomes a postcard and a benchmark for the attraction of other large-scale investments in both countries.

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STATE OF RAILWAY SAFETY The number of deaths resulting from railway operational occurrences have increased by 8% in the 2016/17 reporting period, says the Railway Safety Regulator (RSR). The research general manager at the RSR, Dr Cornel Manal, said about 495 fatalities have been recorded, which shows an increase of 8% compared to the 2015/16 reporting period.

CFM TO GET MORE TRAFFIC Mozambique's CFM recently initialed with its Zimbabwe counterpart, NRZ and Zimbabwe's mining company ZIMASCO a service level agreement to transport large volumes of chromium ore and ingots from the ports of Beira and Maputo, through the Machipanda and Limpopo railways respectively.

About 2,079 people were injured in the current financial year, which shows a 10% decrease compared to the previous reporting period. In total, the number of operational occurrences stands at 4,066. This indicates a 5% decrease compared to the 2015/16 figure of 4,250. “This figure is the lowest total number of operational occurrences since 2010/11,” said Manal. Gauteng accounted for about 29% of operational occurrences, followed by KwaZulu-Natal with 27% and Western Cape with 19%.

The Agreement came into force on 1 November and is valid until December 2018, providing for the rail transport of approximately 1,000,000 tonnes, at the rate of 70,000 tonnes per month.

The report shows that Transnet and Passenger Rail Agency of South Africa (PRASA) account for approximately 97% of all operational occurrences reported to the RSR. The percentage remains the same as the previous reporting period, with Transnet contributing 52% and PRASA Rail contributing 45% to all operational occurrences.

To this end, CFM and NRZ are mobilising railway equipment, namely, wagons and locomotives.

Close to 60% of all occurrences investigated were due to a human factor-related root cause. Manal said not much progress has been made in reducing other types of occurrences such as level-crossing occurrences, people struck by trains, occurrences in which people travel outside the train (train surfing), and electric shock occurrences. In terms of railway industry compliance, about 98% of operators seem to have complied with the reporting requirements as per the Railway Safety Regulator Act.

Time of signature of the Agreement. From left to right: Eng. L. Mukwada, Eng. Miguel Matabel, Eng. Agostinho Langa Jr. and Eng. John Musekiwa.

Over the years, the rail industry has been plagued with incidents of theft and vandalism of infrastructure such as cables, signalling equipment, transformers and rail track components.

EIB FINANCES NEW SUBURBAN NETWORK IN TUNIS Through renewed financing of EUR83 million, the construction and commissioning of a new fast rail network in Tunis is now possible. More than 15,600 jobs will be created during the development of the railway project which will provide the city of Tunis with a new 17km rapid transit system with lines D and E. HE Mr Zied Ladhari, Minister of Development, Investment and International Cooperation (MDICI) and Ms Flavia Palanza, Director of EIB Neighbourhood Loan Operations, signed a Financing Agreement in Tunis recently. The objective is to decongest road access to the capital, while reducing air and noise pollution, as well as greenhouse gas emissions. The first stretch of line D extends from Tunis City to Gobaa for 11,3km, with nine

stations, along the existing international railway line between Tunis and Algiers, while the first section of line E extends from Tunis City to Bougatfa for 8.2km with seven stations. The financing will make it possible, in concrete terms, to purchase the 28 trainsets needed for the new rapid transit system, first-line operation is planned for October 2018. It will also make it possible to finance the construction of new infrastructures essential to this network, such as a centre maintenance area and additional parking at stations. The project involves the Republic of Tunisia, the Tunisian National Railways Company (SNCFT), and the European Investment Bank (EIB).

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COMPANY NEWS

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VIRGIN HYPERLOOP ONE NAMES RICHARD BRANSON CHAIRMAN Virgin Hyperloop One, the only company in the world that has built a full-scale hyperloop system, announced in December that it had named Richard Branson Chairman (non-executive), and has raised an additional US$50 million ahead of its Series C round of funding, with investments from Caspian Venture Capital and DP World. The company has also completed its third phase of testing, achieving historic test speeds of 387km/h. As the founder of Virgin Group, Branson brings an unparalleled proven track record in delivering technology breakthroughs and transformative experiences in air, rail, and space transportation. Branson joined the Virgin Hyperloop One board of directors in October 2017 after Virgin Group invested in the company and formed a global strategic partnership. The company is also in the process of rebranding itself Virgin Hyperloop One. “I am excited by the latest developments at Virgin Hyperloop One and delighted to be its new Chairman,” said Richard Branson, founder of the Virgin Group and Chairman of Virgin Hyperloop One. “The recent investment by our partners Caspian Venture Capital and DP World sets up the company to pursue opportunities in key markets in the Middle East, Europe, and Russia as it develops

42 www.railwaysafrica.com

game-changing and innovative passenger and cargo ground transport systems.” The US$50 million investment was made by existing Virgin Hyperloop One investors Caspian Venture Capital and DP World, who have been consistently supportive investors and have backed the company in each of its funding rounds. This investment brings the total financing raised by Virgin Hyperloop One to US$295 million since its founding in 2014. “This investment provides Virgin Hyperloop One with a very robust financial platform for 2018 ahead of our Series C round of fundraising. We are so proud to have investors who consistently step-up to support our company and our vision,” said Virgin Hyperloop One’s CEO Rob Lloyd. “We continue to see extremely strong interest from world leaders globally looking to embrace hyperloop to address critical infrastructure challenges. Our focus in 2018 will be on accelerating commercial agreements for both passenger and cargo projects.”

More about Hyperloop One Virgin Hyperloop One has also set a historic test speed record of nearly 387 kilometres per hour (107 meters per second) during its third phase of testing at DevLoop, the

world’s first full-scale hyperloop test site. The company achieved faster speeds and tested a new airlock which helps transition test pods between atmospheric and vacuum conditions during its latest test campaign which was completed on 15 December 2017. All components of the system were successfully tested including the airlock, highly efficient electric motor, advanced controls and power electronics, custom magnetic levitation and guidance, pod suspension, and the vacuum. The tests were conducted in a tube depressurized down to the equivalent air pressure experienced at 200,000 feet above sea level. A Virgin Hyperloop One pod quickly lifts above the track using magnetic levitation and glides at airline speeds for long distances due to ultra-low aerodynamic drag. “The recent phase three testing continues to prove the incredible persistence and determination of our DevLoop team - close to 200 engineers, machinists, welders, and fabricators who collaborated to make hyperloop a reality today,” said Josh Giegel, Virgin Hyperloop One’s co-founder and chief technology officer. “The continued support from our existing investors Caspian Venture Capital and DP World highlight their adamant belief in our ability to execute”.

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HYDROGEN HYBRID TRAM PUT INTO OPERATION China - A hybrid electric tram powered by hydrogen and a super-capacitor started operations in early November, in Tangshan, North China's Hebei province, marking a big step in the application of green energy in public transport in the region. Researched and manufactured by the Chinese, it is the world's

first hybrid electric tram, with hydrogen being the main power source, according to China Railway Rolling Corporation (CRRC) Tangshan Co, the maker of the tram. It is different from common electric buses or other vehicles, which are mostly powered by lithium cells, which emit pollutants when they are being produced. Only water will

be emitted for powering the tram, making it totally environmentally friendly. With the ability to produce about 50 sets of trams each year, the company is introducing it into other cities, including Quanzhou in East China's Fujian province, Taizhou in East China's Zhejiang province, Tianjin, and Toronto.

The tram, has three carriages with 66 seats and can run for 40km at a maximum speed of 70km/h after being refilled with 12 kilograms of hydrogen. All of the technologies used in the tram are the latest in the world, with CRRC holding the independent intellectual property rights.

TRANSPORT AND URBAN DEVELOPMENT AUTHORITY TO HOST RAIL SUMMIT The City’s Transport and Urban Development Authority (TDA) will host a rail summit early in 2018 in an effort to find short-term solutions that will address the commuter rail crisis as they work towards the incremental takeover of the urban rail function.

www.amstedrail.com

The aim of the summit is to allow for the City of Cape Town to meet with role-players from the private sector, business leaders, and other interested and affected parties to devise short-term interventions to address the current crisis that rail commuters face on a daily basis.

Tel: +27 87 310 1769 Gross Street, Tunney Ext 3, Germiston, South Africa

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2017/10/09 2:27 PM www.railwaysafrica .com 43

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ROLLS-ROYCE AND CHINA RAILWAY ROLLING STOCK CORPORATION STRATEGIC PARTNERSHIP

ALSTOM FOUNDATION WILL FINANCE 17 NEW PROJECTS

Rolls-Royce Power Systems and China Railway Rolling Stock Corporation (CRRC), the world’s largest rolling stock manufacturer, have decided to grow and deepen their successful partnership. A corresponding agreement has now been signed in Friedrichshafen by senior representatives of both companies. Among the matters of agreement is a commitment by CRRC to continue to consider MTU engines from RollsRoyce as drive solutions in its locomotives and diesel railcars.

The Alstom Foundation will support 17 projects this year spread across all continents, with a particular focus on economic and social development. The selected projects are in the following countries: Cambodia, India, Philippines, Vietnam, France, Italy, the UK, Chile, Mexico, Peru, USA, Algeria, Morocco and Senegal. Among the project partners are seven French NGOs. Six will be supported for projects abroad and one will be supported for a project in France. In France, Alstom will sponsor the Foundation Apprentis d’Auteuil and three of their social residencies and foyers for young adults from disadvantaged backgrounds. The objective is to help these young adults towards an empowered, autonomous and resilient independence. The residences are based in Ouges (Bourgogne-Franche-Comté), Liévin (Hauts-de-France) and La Côte-SaintAndré (Auvergne-Rhône-Alpes).

Rolls-Royce Power Systems and China Railway Rolling Stock Corporation (CRRC), the world’s largest rolling stock manufacturer, have signed a Strategic Partnership Agreement. Pictured are Dayong Chen, General Manager for International Business at CRRC, and Andreas Schell, CEO of Rolls-Royce Power Systems AG.

The two companies also agreed to collaborate on future power delivery solutions, including hybrid drives and gas engines. Dayong Chen, General Manager for International Business at CRRC, said “This strategic partnership agreement is a major step forward in strengthening our successful collaboration with Rolls-Royce Power Systems and MTU.” Andreas Schell, CEO of Rolls-Royce Power Systems AG, said “We are proud that we are consistently convincing CRRC, one of the major players in the global rail market, of the quality of our drive solutions. Our close working relationship has been established firmly in recent years, and this agreement puts it on a new footing – something which is going to benefit both partners, and our customers as well.” The agreement references, in particular, the ‘Belt and Road Initiative’ (also colloquially known as the ‘New Silk Road’), the infrastructure plan of the People’s Republic of China to expand and enhance its connections with Asia, Europe and Africa, with the aim of stimulating and improving the movement of goods. To achieve this, China is looking to invest the equivalent of hundreds of billions of euros in the infrastructure of many countries in these regions, and CRRC is playing a key role in this. The highly productive relationship between Rolls-Royce and CRRC goes back many years and has seen CRRC order around 500 MTU Series 4000 engines for locomotives used by customers in New Zealand, Argentina and South Africa. The partnership agreement was signed at the MTU Rail Symposium, which attracted a total of 135 MTU business associates from 26 countries to Friedrichshafen to engage in discussions on current developments at MTU and the future of the rail market.

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The six French NGOs sponsored by Alstom abroad are: • Enfants d’Asie for a project in Cambodia • ACTED for a project in the Philippines • Christina’s Noble Children’s Foundation France for a project in Vietnam • World Vision France for a project in Vietnam • Pamiga for a project in Senegal • Objectif France Inde for two projects in India The Alstom Foundation has supported a total of 168 projects across 52 countries since its creation in 2007. With a budget of €1 million per year, the Alstom Foundation supports and funds projects proposed by Alstom’s employees who team up with local partners and not-for-profit organisations to carry out initiatives aimed at improving living conditions in communities located near Alstom’s facilities and project sites around the world. The Foundation’s past projects have focused on: Economic and Social Development, Access to Energy and Water, Environmental Protection and Access to Mobility.

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