China launches first-ever intermodal service to Africa

wChina set in motion a new intermodal service connecting the country with Africa via Europe. The rail part of the service will run between Chengdu, in southwest China, with Hamburg, in Germany, via the China-Europe Railway Express. From there, goods are shipped to Casablanca, in Morocco, by sea.

This is the first-ever service with this kind of connection. The inaugural train left Chengdu on Saturday, 15 October, and the total transit time should revolve around 35 days. The service should benefit mainly the Chinese textile industry, especially in the west of the country.

China and Morocco’s recent developments

This new service shows the strong relationship between China and Morocco. The latter joined the BRI in 2017 and upgraded the term of the relationship at the beginning of 2022. This new agreement enabled China to provide Morocco with a vaccine against COVID-19, the Sinopharm. In August, in addition, Morocco adhered to the One-China policy, which states that China, including Taiwan, is part of one Chinese nation and one Chinese government. China exports to Morocco mostly textile materials, tea, and broadcasting equipment. On the other hand, Morocco sends China various raw materials, including copper, calcium phosphates, and zinc ore.

China’s investments in Africa

China has been heavily investing in Africa since the turn of the century with the launch of the Forum on China-Africa Cooperation (FOAC), which was integrated into the Belt and Road Initiative (BRI) in 2018. The FOAC currently includes 53 out of 54 African countries, with the exception of the Kingdom of Eswatini, in the south of the continent.

Since 2000, members have been meeting every three years, alternating between China and Africa for the meeting locations. China can provide aid in the forms of debt forgiveness, aid grants, concessional loans, and interest-free loans through the FOAC. For example, in 2021, China claimed it would forgive 23 interest-free loans that had matured at the end of that year for 17 African countries. During that year, moreover, China invested over 47 billion euros in Africa.

Increase in urban rail could support Africa’s sustainable future-Alstom study

Alstom, global leader in sustainable and green mobility solutions, released a new study today titled, “The Role of Urban Rail in Sustainable Africa” in collaboration with EY Climate Change and Sustainability Services.

As a contribution to the important discussions taking place at the 27th Conference of the Parties (COP27), the study demonstrates how increased investments in urban rail transport in Africa can facilitate the avoidance of substantial carbon emissions and contribute to broader sustainability goals, delivering environmental, social and economic benefits for Africa’s growing cities.

Africa has a fast-growing population and the world’s highest urbanisation rate. The continent’s urban population will increase from 600 million in 2021 to over 1.3 billion in 2050. A key challenge is to ensure that this

growth meets the UN’s Sustainable Development Goal 11: Making cities inclusive, safe, resilient and sustainable. This new study shows that for this to happen African cities must advocate to develop more sustainable transport systems, both to reduce carbon emissions and to foster inclusive socio-economic growth. “With COP27’s focus on implementation, Alstom commissioned this study with EY Climate Change and Sustainability

Services to highlight the many benefits that increased investment in urban public transport can bring to Africa’s cities and support their sustainable growth. It is indeed demonstrated that every increase in a modal shift to rail transport will bring better access to socioeconomic opportunities, reduced congestion, increased safety, and improved air quality on top of decarbonisation,” stated Cécile Texier, Vice President CSR and Sustainability, Alstom Group.

According to the International Energy Agency, passenger rail’s modal share has stagnated globally at around 6-7% for a decade and must grow by more than 40% in the next decade for transport to remain on track to meet net zero. This study, therefore, highlights the benefits that can be realised if the modal share of urban rail in African cities increases to 10% in 2030 and 20% in 2050 (compared to the baseline scenario of 1% today). A cumulative total of 1,005 million tonnes (Mt) of CO2 (1 gigatonne [GT] of CO2) could be avoided between 2023 and 2050 in this scenario, compared to the status quo. This is equal to 32% of Africa’s total GHG emissions in 2019. One hundred and seventy-three million additional tonnes of CO2 would be avoided between 2023 and 2050 if urban rail systems were fully powered with renewable energy. Investing further in urban rail would bring proportional social and economic benefits leading to safer, healthier, and more inclusive cities. By increasing the modal share of rail to 20% by 2050, 29 million cars would be removed from Africa’s roads each day, leading to a significant decrease in congestion, road accidents and air pollution. Urban rail is more affordable and more accessible than cars and unofficial transport systems, giving passengers easier access to jobs and key services such as education and health. This shift from road to rail could also support job creation related to construction and operations and maintenance in Africa estimated at about 258 jobs per kilometre of new rail built. For example, a 60-kilometre urban project would create over 15,000 direct jobs.

The study also highlights the benefits brought by Cairo’s long-term commitment to public transport. “With COP27 in Egypt, it is an opportunity to highlight that Egypt was the first country in Africa to open a metro line in 1987 and have 3 operational metro lines, 2 additional metro lines planned and 2 monorail lines under construction. The additional metro and monorail lines alone, will allow the city to avoid a cumulative 35 Mt of CO2 emissions between 2023 and 2050, equal to 10% of Egypt’s total GHG emissions in 2019. Additionally, it provides the city with other social and economic advantages such as the reduction of 595,000 cars every day and a sharp reduction in congestion, estimated to cost Egypt USD 8 billion each year, savings that could be reinvested in green and digital mobility solutions,” concluded Andrew DeLeone, President Alstom Africa, Middle East, and Central Asia.

Ever wondered why it is expensive to fly within than without Africa? Well, turns out that taxes play a pivotal role in making cost of flight to and within Africa to be out of reach for many travelers.

According to African Airlines Association (AFRAA),there is no common policy in terms of Air navigation service charges in Africa. And as such service providers apply different rates from a country to another, except for ASECNA whose formulas are common for 17 member states in western and central Africa, and in Indian Ocean.

The aviation industry has a particular fiscal regime. According to ICAO regulations, fuel, which represents at least 24.7% (IATA WATS 2019) of African airlines’ operational costs, should not be taxable. However, many other specific taxes and fees are applied to passengers.

For non-regional travels, passengers pay in average 3.4 different taxes and fees at departure, representing an average amount of USD 64. Out of 53 airports, 10 charge passenger above USD 100.

Western and central Africa are the most expensive regions in terms of passenger charges with an average of USD 94.59 and USD 93.74 respectively for international travels. The region where passengers pay the lowest amount of taxes and fees is Northern Africa, with an average of USD 26.27.

In Central and Western Africa, 10 out of 23 airports, which is almost half, charge more than USD 100.

Thus, the two regions represent only 20% of the global traffic to/from Africa. Most of Northern African airports which represent 35% of the traffic, charge less than 50 USD.

While the average amount of passenger paid taxes and fees in Africa is USD 64, passengers are charged USD 30.23 in Europe and USD 29.65 in Middle East despite the fact that traffic is much more significant in these regions.

Passengers in Africa also pay taxes and fees for transfer and on arrival. Airports in Europe charge less than Africa in terms of taxes and fees on arrival and transfer. The average amount of transfer taxes and fees in Africa is USD 36.02 compared to USD 17.55 in Europe. Taxes and fees on arrival are USD 8.81 in Europe, while USD 12.32 in Africa.

Apart from Passengers taxes that are levied directly on the ticket, airlines have to face many other charges related to their operations at the airport level such as Landing, Noise, Parking, Common User Terminal equipment CUTE, Jetway Charge, passenger Bus etc.

Mogadishu is the most expensive airport for airlines charges, with more than USD 2000 for an international flight, while a busy airport like Algiers charge USD 158 in the same conditions. The average amount of charges paid is USD 624, but 53% of the airports are charging less than USD 600. 3 airports in Africa charge below USD 50: Maseru, Khartoum and Manzini.

While airlines attempt to offer low fares to passengers, taxes and fees can bring the total price of a ticket to more than double of the base fare. Given the low purchasing power in Africa, it is urgent to assess the issue of high taxes and fees, to stimulate the demand and make air transport affordable to African citizens.

The high level of taxes, fees and charges,