CTBL-Watch - Issue 11 - November 2014.indd

CAMEROON - CENTRAL AFRICAN REPUBLIC

CORRIDOR NOW OPEN Full Story On Page 6

AFRICACTBL-WATCH

Kenya: US$3.8 Billion Chinese Rail Project Halted

ISSUE 11 | NOVEMBER 2014

Uganda: Oil Revenue Alternative To Chinese Cash For Rail

Mali: US$9.5 Billion Rail Projects To Unlock Iron Ore, Bauxite

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AFRICACTBL-WATCH

ISSUE 11 | NOVEMBER 2014

Kenya: US$3.8 Billion Chinese Rail Project Halted

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Cameroon - Central African Republic Corridor Now Open

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Uganda: US$8 Billion Oil Revenue Possible Alternative To Chinese Cash For Rail

Mali: US$9.5 Billion Rail Projects To Unlock Iron Ore, Bauxite Deposits

Contents

Top Stories

03 /Corridor Review

05 /African Group News

19 /Western Africa

07 /Eastern & Southern Africa

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Website: www.delmas.comEmail: [email protected]: @DelmasWeDeliver

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

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

www.cmacgm.com

Disclaimer of LiabilityCMA CGM / DELMAS make every effort to provide and maintain usable,

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

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

the information. Accordingly Delmas denies any liability for any direct,

indirect or consequential loss or damage suffered by any person as a

result of relying on any published information. Conclusions drawn from,

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

sole responsibility of the reader.

The African Inland Freight ReportBrought to you by CMA CGM / DELMAS Marketing

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News Headlines By RegionEastern & Southern AfricaRegional: Eighteen New Standards Harmonised

Burundi: President Pushes For Clearance Efficiency At Border

Ethiopia: Spanish Ethiopian Road Deal

Kenya: Kenya-Ethiopia US$517m Highway Scheduled For Completion In 2015 / Dualisation Of Mombasa To Mariakani Road / KeNHA to Renovate Roads In Kisumu / US$3.8 Billion Chinese Rail Project Halted

Malawi: Feasibility Studies For Malawi Inland Port To Conclude May 2015 / New Bridge To Be Built Along Kamuzu Barrage

Mozambique: Second Bridge In Tete Inaugurated

Namibia: Future Logistics Plan / Liselo-Kongola Road Almost Complete

Rwanda: Rwanda, Uganda Joint Railway Plan Agreed

South Africa: Rail Investment Key To Unlocking Trade

South Sudan: Government Earmarks US$1Billion For Road Construction

Tanzania: Axle Weight Limits / NSSF Envisages More Inland Ports / Arusha-Holili Road Rehabilitation Hits Snag

Uganda: Busia One Stop Border Post / US$8 Billion Oil Revenue Possible Alternative To Chinese Cash For Rail

Zambia: Nzovu Transport Wins Toll Contract

Zimbabwe: Harare Moves To Halt Import Of Cheap Quality Goods / EU Lifts Trade Sanctions / Harare To Invest In Roads / Zinara Projects On Course

Western AfricaAngola: Huambo And Moxico Road And Rail Logistics Hubs / Benguela Railway Reaches DR Congo Border

Burkina Faso: Cu9-Lomé-Ouagadougou Road Corridor Rehabilitation

Cameroon: Movements Of Heavy Duty Vehicles

DRC: AfDB US$82.7-Million To Improve Batshamba-Tshikapa Road

Gambia: US$65-Million Trans-Gambia Bridge Project

Ghana: Ghana-Togo Joint Border Post / Eastern Corridor Roads

Mali: US$9.5 Billion Rail Projects To Unlock Iron Ore, Bauxite Deposits

Nigeria: National Rail Project Update

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Eastern & Southern Africa

Corridor Current Situation

1 ● Kenya-Great Lakes/S. Sudan The Group offers extensive CTBL services throughout Kenya. With a new improved ASEA KENYA Service we will offer a direct weekly service from Asia to Mombasa. This will enhance our inland solutions to domestic Kenya, Uganda, Rwanda, South Sudan.

Our new service to Juba, South Sudan, continues to run well. We have opened new routes from Kenya to the North Kivu region in the eastern Democratic Republic of Congo [DRC].

New connections offered through the port of Mombasa include Beni, Butembo and Kisangani, towns all lying on the main national route N4. All 3 towns have a transit time of +/-21 days!

2 ● Tanzania-Great Lakes With a new improved ASEA TANZANIA service we will offer a direct weekly service from Asia to Dar Es Salaam. This will enhance inland solutions to the heart of DRC, Burundi, Rwanda.

Roads from Dar Es Salaam to North Rwanda, Burundi and DRC [Goma / Bukavu / Uvira] are in good condition. Burundi transit times are still impacted due to a deviation to avoid a broken bridge. Trucks are forced to use another route adding an additional 200-km equating to 1-2 days transit.

Rwanda, Burundi and Uganda are now part of the EAC single custom territory with Tanzania. A new custom tool in Dar Es Salaam was set up for this evolution directly impacting on the corridor from Dar Es Salaam to Burundi and Rwanda. Delays faced at the start are now back to normal.

3 ● Tanzania-Copper Belt This corridor has REOPENED! Roads through Mbeya offer a good alternative to the train to Ndola. Traffic is back to normal. The Group is the only shipping line to have its own office in Lubumbashi and thanks to a newly appointed Branch Manager and staff we closely monitor the local situation. The transport corridor from Dar Es Salaam to Lusaka, Copper belt & Lubumbashi is safe and we can offer competitive rates and transit time.

With a new improved ASEA TANZANIA service we will offer a direct weekly service from Asia to Dar Es Salaam. This will enhance inland solutions to Malawi and Zambia.

4 ● Mozambique Nacala Corridor This corridor has REOPENED! All backlogs have been cleared. The Group is in a position to obtain regular allocations and are in negotiations with stakeholder management. CDN the National Rail operator welcomes all bookings.

5 ● Mozambique Beira Corridor A bond agreement with customs is in place and we have our own broker at our agency office to shorten clearance time and trucking. New agreements has been signed with our local agency CC Mozambique and freight transporter J&J lda.

6 ● Mozambique Maputo Corridor Running well. Following an agreement with DPW there is free storage for TBL container. Meanwhile a new corridor is now available from Maputo – Hwange [Zimbabwe] by rail.

7 ● S. Africa Durban We offer very competitive rates to Harare [Zimbabwe] / Lusaka [Zambia] / Gaborone [Botswana].

8 ● Namibia Walvis Bay The transport corridor from Walvis-Bay to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well. The corridor is safe and we can offer very good rates. There are a lot of trucks on standby. However there are some delays due to the implementation of Sydonia Word since 1 September 2014. Now also offering Windhoek!

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CORRIDOR REVIEW CTBL AFRICA

Western Africa

Corridor Current Situation

1 ● Senegal-Mali All rail congestion has cleared. Furthermore TRANSRAIL has received 8 railway engines which are now fully operational. Both road and rail options are running smoothly with good transits available.

2 ● Senegal-Guinea Bissau The corridor remains open but due to the Ebola crisis the border process and status will be checked on a case by case basis before booking.

3 ● Cote d’Ivoire-Burkina/Mali Due to the present difficulties in the evacuation of containers by rail via the Abidjan corridor, we recommend the road option for your shipments to Ouagadougou. This option is working well! Transits to Ouagadougou and Bobo Dioulasso are just 12 days by road.

4 ● Ghana-Burkina Tema-Ouagadougou service is now available as an additional option. The Tema corridor to Burkina is now the most competitive pricewise, with excellent transit time from Asia with AFEX service. Our expert TBL team is now in place and fully involved for all your booking requests.

5 ● Togo-Burkina/Niger Service is running well.

6 ● Benin-Burkina/Niger Operating well.

7 ● Cameroon-Chad There are currently delays by rail as the operator CAMRAIL is experiencing congestion in both Douala & N’Gaoundere stations. We therefore suggest cargo is moved via our road TBL service. Political security is still not 100% on this corridor.

8 ● Cameroon-CAR Douala-Bangui is now open. This corridor is offered on a case by case with agreement from our local Douala Agency.

9 ● Gabon Corridor The Libreville-Franceville corridor is to reopen soon. We are undertaking some trial shipments as a test case.

10 ● Congo Corridor Pointe Noire-Brazzaville bookings currently SUSPENDED. The corridor is expected to open soon. We are undertaking some trial shipments as a test case.

11 ● DRC Corridor Matadi-Kinshasa service running slowly due to congestion and delays at Pointe Noire port.

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Cameroon-CAR Corridor Now OpenAfter a period of political unrest we are pleased to reopen our TBL service from Douala, Cameroon to Bangui, Central African Republic [CAR]. The transit time by road is around 33 days.

We can accept bookings if the below conditions are fulfilled:

- Contacts of final consignee in Bangui [phone number, email, address]

- The agreement from final consignee to receive the container and give the container back with no delay

- The agreement to take any extra charges raised in regards in political instability

Ghana-Burkina Faso Road Corridor Offers Best TransitTo meet customer needs and improve transit times CMA CGM / DELMAS has developed a new intermodal corridor to Ouagadougou, Burkina Faso via the port of Tema, Ghana. We can now offer two direct weekly services calling in Tema: New AFEX [Asia - West Africa] and PC weekly [North Europe]. The service via Tema is in addition to the existing intermodal services via Abidjan [Ivory Coast] and Lomé [Togo] and ensures a faster transit time of just 12 days.

http://www.delmas.com/products-services/line-services/flyer/NWAFEX

http://www.delmas.com/products-services/line-services/flyer/PCHEBDO

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AFRICAN GROUP NEWSCMA CGM / DELMAS

IPAD Katanga Mining WeekCMA CGM / DELMAS participated in the 5th edition of the IPAD Katanga Mining Week [Infrastructure Partnerships for African Development] at Lubumbashi, Democratic Republic of Congo [DRC] on 28-29th October. The event focused on the role of the mining industry in the economic growth of Eastern DRC, one of the main areas of copper and cobalt production in the world. During the fair, the Group was able to promote its intermodal logistic solutions to mining corporations in order to develop outbound volumes from Katanga. CMA CGM / DELMAS offers several corridor routes including Dar Es Salaam, Durban, Walvis Bay, Beira and Mombasa ports.

For further information regarding this event please view www.ipad-katanga.com

From left to right: Bienvenu Pezo, Benjamin Coston, Alphonse Koultoumi, Patrick Messina - CMA CGM RDC / Alphonse Koultoumi CMA CGM Lubumbashi Branch Manager and guests

12th Intermodal Conference DurbanCMA CGM / DELMAS attended the 12th Intermodal Africa conference in Durban on 23-24th October. The event, one of the largest ports, shipping and logistics conference on the continent, saw 35 conference speakers focused on topical issues and challenges in global transportation and logistics.

The event allowed the Group access to important stakeholders within the mining industry to develop possible partnerships with companies able to provide effective warehousing / stuffing solutions. Another focus area was the promotion of the Walvis Bay Group corridor which will allow the Group to open up TBL services from both Zambia and the Democratic Republic of Congo [DRC] Copperbelt region to Walvis Bay port.

The conference focused on the recent global shipping industry trends in terms of port infrastructure:

- African maritime sector economic outlook examining opportunities and regional trade developments - Structures and principles for port infrastructure financing - Zambia outlook: Transport/intermodal systems in accelerating economic growth - Shaping the supply chain: A regional perspective in shipping, intermodal and logistics markets - Sustainable rail freight systems - Port modernisation using state of the art infrastructures - Port and terminal operation developments: Facilitating trade and service quality - Walvis Bay corridor development.

For more information about the event view http://10times.com/intermodal-africa

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CTBL Enquiries

For details about our service, bookings and all-in rate enquiries please contact your usual CMA CGM / DELMAS agent. For further service details view our Intermodal Services Africa website [https://www.delmas.com/products-services/our-services/ctbl] or scanning the QR code:

East AfricaEighteen New Standards Harmonised The Standards Bureaus from Kenya, Rwanda, Uganda, Burundi and Tanzania are meeting in Arusha for the 18th EA Standards Committee Meeting where 18-new standards and 15-international standards are expected to be harmonised across East Africa to make the region more competitive.

Trademark East Africa [TMEA] has assisted the East African Community [EAC] in the harmonization 16 of the new standards.

So far the 5-East African countries have managed to blend a total of 1,200 standards accepted across their borders. The move has been described as helpful in facilitating trade, reducing costs of operation and speeding movement of goods within the bloc.

Other issues addressed included differing axle loads requirements for each country, which has remained a major stumbling block for transporters in the region.

[Daily News 24/10/14]

Burundi/TanzaniaPresident Pushes For Clearance Efficiency At Border President Nkurunzinza has urged increased efficiency by customs and immigration authorities at border posts to boost regional trade, expressing concern over time-wasting and cumbersome procedures.

Nkurunzinza made the remarks at the laying of the foundation stone for construction of One Stop Border Point [OSBP] facilities at Kobero in Muyinga Province that is set to cut on delays in transit cargo clearance at the border with Tanzania.

The US$6.4 million facilities constructed under financial and technical support of TradeMark East Africa [TMEA] is aimed at reducing time spent for cargo clearance at the border posts of Kobero and Kabanga on the Tanzania’s side by combining activities of border control agencies of the 2-countries at one point. TMEA is also constructing similar facilities at Kabanga border post.

According to officials the move is expected to cut down transit costs across Tanzania and Burundi border by 30%. The Kobero border post is a gateway for transit cargo for Burundi and Eastern Democratic Republic of Congo [DRC] and handles more than 70% of all cargo transport by road to Burundi including cement, construction materials, cooking oil and petroleum products.

TMEA is funding construction of 13 OSBPs in East Africa where each post consists of an office building for the border control agencies, parking for trucks, a ramp for offloading goods and an inspection warehouse.

[All Africa 18/11/14]

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EASTERN & SOUTHERN AFRICACORRIDOR NEWS

Namibian CorridorsFuture Logistics Plan A newly formalised transport development framework expects an explosion in transport and logistics as Namibia is positioned to service its closer neighbours as well as those further afield. In the effort to fulfil the National Developments Plan’s [NDP4] goal of establishing a Logistics Hub, major roads will be built on existing plans with many additional developments proposed as part of a Strategic Environmental Assessment that was conducted from March to July 2014.

The focus will fall on the road infrastructure which is the vital backbone for the intended logistics hub which will depend on expanding and upgrading transport and infrastructure facilities along major routes including the Walvis Bay Ndola Lubumbashi Development [WNLD], the Trans-Cunene, the Trans-Kalahari and the Trans-Oranje. While the major nodes will include, Walvis Bay, Swakopmund, Katima Mulilo, Oshikango and Lüderitz. Currently the assessment process which is still in the scoping stage will progress through 2-more stages before the submission for Environmental Clearance which is set for February 2015.

[Economist 24/10/14] Works Outline

Trans-Caprivi - Walvis Bay Ndola Lubumbashi DevelopmentRoad upgrading/rehabilitation of the existing plan and development of bypass roads and truck stops.

Trans-Cunene Road upgrading/rehabilitation [existing plan] and rail upgrading of the Kranzberg Tsumeb line and the development of bypass roads and truck stops.

Trans-Kalahari Upgrade/rehabilitation [existing plan] and establish a Trans-Kalahari Railway.

Trans-Oranje Road upgrading/rehabilitation [existing plan] while the existing Aus Lüderitz track is the railway priority.

Walvis BayExpansion of the existing port through several back to back projects of which the new container terminal is currently on-going. Other projects include the development of the new North port, Phase 1, an integrated urban sustainable development framework, further airport upgrading/development of a mega truck stop.

SwakopmundTo improve road network by tarring and upgrading the road behind the dunes from Swakopmund to Walvis Bay [existing plan].

Katima MuliloConstruction of a bypass road to the border post and expansion of border infrastructure as well as development of a truck stop for cross-border traffic with Zambia.

OshikangoDevelopment of a bypass road to the border post and expansion of the border infrastructure as well as a truck stop.

LüderitzTo complete the railway access to the port from Aus, the improvement of existing port and the development of new deepwater port.

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TanzaniaAxle Weight LimitsTanzania has very strict rules on weight limitations. On top of controlling the containers total weight in addition to the weight of the truck, the Tanzanian government also apply an axle weight limitation.

This involves each and every axle being weighed to check it against the weight limit.

Shippers are therefore recommended to stuff their cargo inside the containers as equally as possible in order to avoid severe penalties which will be invoiced to the shipper.

FACTBOX - It is estimated that 24% of heavy vehicles are overloaded - Overloading is responsible for the significant acceleration in pavement deterioration resulting in serious and costly

maintenance. - Axle load control is regulated under the road traffic Act No.30 of 1973, Regulation 2001 and defines responsibilities of

the Road Authority [Ministry of Works and TANROADS] in collaboration with the Ministry of Home Affairs. - The regulation sets the maximum allowable single axle load limit of 10 tons and a maximum gross vehicle mass of 56

tons. - Anything above these limits, must obtain a permit.

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EASTERN & SOUTHERN AFRICAREGULATORY

ZimbabweHarare Moves To Halt Import Of Cheap Quality GoodsGovernment has engaged the services of global testing, inspection and certification services firm, Bureau Veritas, to help it address poor quality imports flooding the country.

The engagement is aimed at protecting consumers as government prepares to establish its own Standards Regulatory Authority which will take over some of the functions of the Standards Association of Zimbabwe [SAZ]. Its establishment was mooted following complaints that SAZ did not have powers to take decisive action on products that failed to meet accepted standards.

It is estimated that more than 60% of basic goods sold in supermarkets are imported. But the quality of imports has become a cause for concern. In the first 6-months of the year, Zimbabwe recorded a trade deficit of US$2.6 billion as imports continued to outpace exports.

[New Zimbabwe 01/11/14]

EU Lifts Trade Sanctions The European Union [EU] announced lifted trade sanctions [Article 96 of the Cotonou Partnership Agreement] against Zimbabwe effective 1st November, but kept travel bans against President Mugabe and the First Lady. The lifting of trade sanctions means that the EU would directly engage with Harare on bilateral economic ties in areas such as agriculture, law, health and the Zimbabwe Agenda for Sustainable Socio-Economic Transformation [Zim-Asset].

[Herald 31/11/14]

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MalawiFeasibility Studies For Malawi Inland Port To Conclude May 2015Construction of Malawi international inland port has entered feasibility studies phase and if studies are positive, the facility will then be converted to aid transport in the region. The study, which is being carried out by Hydroplan GmbH from Germany, will also focus on planning and investment appraisal.

Malawi has entered into Memorandum of Understanding [MoU] with Zambia and Mozambique to see the execution of the project. It is expected that Zambia, Malawi and Mozambique which share the Zambezi river basin will enjoy affordable costs on the Shire Zambezi waterway once it has been worked on. If feasibility studies were negative the government would explore other opportunities.

[CR 11/11/14]

TanzaniaNSSF Envisages More Inland PortsThe National Social Security Fund [NSSF] has planned to construct inland ports at Vihingo, Kisarawe, Soga, Chalinze or Kibaha with the view to reducing containers coming from the port of Dar es Salaam. Meanwhile construction of Kigamboni bridge and connecting roads is 70% complete and will be finished by July 2015.

[Daily News 30/11/14]

UgandaBusia One Stop Border PostTrade on the Kenya-Uganda border is to become easier with the completion of the Busia One Stop Border Post [OSBP] which will be completed early next year. OSBP’s reduce the duplication of procedures that cause delays in trade and loss of money, improving on the services offered by different clearing agencies and also enhance on regional integration for better trade.

The facility will accommodate various clearing agencies like Uganda Revenue Authority [URA], Immigration Ministry, Ministry of Agriculture and Fisheries, Ministry of Health, Uganda National Bureau of Standards [UNBS], Ministry of Works and Transport, Customs, National Drug Authority and the police. These different agencies will be able to share information with the aid of single customs window which will be launched soon. TradeMark East Africa has also financed the construction of OSBP in Mutukula, Mirama hills and Elegu/Nimule worth US$10m each and also upgraded the 37km Ntugamo-Mirama hills road to tarmac.

[EA Business Week 15/11/14]

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EASTERN & SOUTHERN AFRICADRY PORTS/OSBP

EthiopiaSpanish Ethiopian Road DealSpainish UTE Elsamex has been awarded a US$60m contract for the upgrading of the 62km Ambo-Wolliso Road over 3-years. Ethiopian Roads Authority [ERA] awarded the contract after sourcing the money from the IDA, the concessionary arm of the World Bank Group. The project is part of the 4th Road Sector Development Program [RSDP4]. The road will link the Addis Ababa-Nekemet road with the Addis Ababa-Jimma road; it will also connect Ambo, which is well known for agricultural products, with Wolisso. The road will be consulted on by Pan Arab Consulting, a Kuwaiti firm, and an Ethiopian firm, Omega Consulting Engineers. The ERA expects the total road network in the country to reach 136,044 kms by the 2014/15 fiscal year, from the 48,793 kms in 2010. By July 2014, the total road length had reached 100,000 kms.


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EASTERN & SOUTHERN AFRICAROAD

KenyaKenya-Ethiopia US$517m Highway Scheduled For Completion In 2015The 505km Isiolo-Marsabit-Moyale road linking Kenya and Ethiopia is scheduled for completion by next year with 60% of the project complete. It is expected that by the end of 2015, Nairobi will be connected to Addis Ababa. The project will cost US$517m and is being funded by the African Development Bank, the European Union and the Kenya Government.

The works are part of the greater Lamu Port-South Sudan-Ethiopia Transport [Lapsset] project which will link the port of Lamu to Mombasa, Nairobi and then finally Ethiopia. It is expected to contribute in enhancing trade and regional integration between Ethiopia and Kenya by reducing general transport costs, increasing market sizes beyond national boundaries, increasing economic output and giving rise to other socio-economic benefits. The project area extends beyond to include Uganda, Tanzania, Eritrea, and Djibouti.


Dualisation Of Mombasa To Mariakani RoadThe Government of Kenya, through the Kenya National Highways Authority [KeNHA] has proposed to carry out improvements on the Mombasa to Mariakani section of the A109 road to include dualling of single carriageways.

The African Development Bank [AfDB] has expressed interest to finance the proposed road project which is part of the Northern Corridor and connects Nairobi to the countries within the Great Lakes Region, Sudan and Ethiopia. The A109 Mombasa-Mariakani road is situated in Mombasa and Kilifi Counties of Coastal Kenya.

The project road forms part of the 500km Mombasa-Nairobi highway starting at the junction of Kenyatta Avenue [A109] and Digo Road [A14] within Mombasa City. It runs in a Northerly direction through Changamwe, Miritini, Mazeras, Mariakani, before terminating just past Mariakani Weighbridge.

[KeNHA 0/11/14]

KeNHA to Renovate Roads In KisumuThe Kenya National Highways Authority [KeNHA] is engaging development agencies to renovate the Kisumu-Kisian and Mamboleo-Miwani roads. Work has started near the Kisumu International Airport roundabout and the Kisian-Kondele by pass.

[The Star 23/10/14]

MalawiNew Bridge To Be Built Along Kamuzu BarrageA new bridge is to be constructed alongside the current Kamuzu Barrage in Liwonde following the launching of public works worth US$50m under the World Bank Shire River Basin Management Programme. Supervision and consultation work on the project will be done by Norwegian Norplan, while construction civil works will be done by Portuguese Conduril Engenharia.


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MozambiqueSecond Bridge In Tete Inaugurated The new ‘Kassuende’ bridge over the Zambezi River, which connects Tete to the Moatize district, was inaugurated on 12th November. The new bridge which is 715m long is located 5km downstream of the Samora Machel Bridge.

The work, which is part of the “New Tete Bridge and Roads” concession was designed to carry the heavy vehicles that currently pass over the Samora Machel Bridge that, from February 2015 will be reserved for light vehicles and motorcycles. The initial budget for project was €105.26 million, which includes the renewal of about 260km of roads linking the city of Tete to the border with Zimbabwe, on the way to Harare, and with Malawi, to Blantyre.

The project was undertaken by a consortium of 3-Portuguese companies: Mota-Engil Engenharia e Construções, which lead the consortium, Soares da Costa Construções and Opway.

[Macauhub 06/11/14]

NamibiaLiselo-Kongola Road Almost CompleteThe construction of the N$8m 200km tarred road linking Liselo to Linyanti, Kongola and Singalamwe is around 80% complete. The road from Liselo to Singalamwe is being constructed through a joint venture [JV] of Metallurgical Corporation of China [MCC] and the Roads Contractor Company [RCC]. The project started in 2012 and is expected to be completed by end of November 2014.

[New Era 22/10/14]

South SudanGovernment Earmarks US$1Billion For Road Construction

The South Sudanese government has earmarked US$1b for the construction of roads linking Juba to Bor in Jonglei state and Rumbek in Lakes state. A loan from China’s Exim Bank will cover the cost of Juba-Magala-Gamenza-Bor road and Juba-Teregeke-Yirol-Rumbek road.

Currently, the 192km Juba-Nimule highway, constructed with funding from the United States aid arm USAID at a cost of US$220m is the country’s sole pave road. The construction of the 194km Juba--Bor and 618 km Juba--Rumbek will boast road networks in the country. Details of when road construction would commence or which companies will implement the multi-million project were not released.

[Tribune 17/10/14]

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TanzaniaArusha-Holili Road Rehabilitation Hits SnagRehabilitation of the 110km Arusha-Holili road expected to have kicked off in October will be further delayed until April 2015 due to lengthy procedures in contractor vetting and finalization of other technical details. A loan from the African Development Bank [AfDB] will finance only part of the stretch namely the 42km by-pass in Arusha and rehabilitation of the 35km Arusha-Usa River section. A 20km portion of the highway between Arusha and Tengeru will be expanded to a 4-lane road, a move expected to reduce the increasing traffic jams between Arusha and Moshi towns. EAC are still looking for funds from donors to rehabilitate the remaining 75 km section of the highway, between Usa River and Holili on the Kenyan border. The Arusha-Holili road project is part of the 240km long road rehabilitation programme linking Arusha and Voi in Kenya. Upgrading of the 85km Voi-Taveta-Holili section in Kenya is already underway. The cost of the entire project [Arusha-Holili- Voi] is about US$400m with at least US$50m going to the Arusha by-pass which will link the recently-recarpeted Namanga-Arusha road and the highway to Moshi at Usa River. EAC is reported to have approached the Japan International Cooperation Agency [Jica] to fund rehabilitation of the remaining part of the road project between Usa River and Holili. The road is being rehabilitated in order to create another major transport corridor in the EA region, linking the Mombasa port with northern Tanzania and land-locked countries.

[Arusha Times 01/11/14]

ZambiaNzovu Transport Wins Toll ContractThe Road Development Agency [RDA] has contracted Nzovu Transport Enterprises to construct the first 6-toll plazas under the 2nd phase of the national tolling programme. The K83.9-million contract will see the construction of the first 3-plazas to be built at Kafulafuta in between Kapiri Mposhi and Ndola, at Munyumbi in between Kabwe and Kapiri Mposhi and in Choma in Southern Province. The agency has also contracted Shire Construction Company for the construction of another set of toll plazas at a total cost of K74.4 million at Ganerton Plaza located in between Sabina and Kitwe as well as at Kamfinsa and at Mwanawasa Stadium in Ndola. Works are expected to be done within 9-months of signing the contract. The Government launched the first phase of the National Road Tolling Programme through the RDA in November last year. The first phase established collection of tolls from Heavy Goods Vehicles [HGVs] on weighbridges on the core network as well as key ports of entry in the country. The agency has collected more than K258m as toll fees since the programme started. The programme marks the beginning of the implementation of a self-sustainable road financing initiative in Zambia as outlined in the road maintenance strategy.

[Times of Zambia 01/11/14]

ZimbabweHarare To Invest In Roads Harare has unveiled an annual budget of US$272.7m with the lions share to go towards roads and infrastructure development. Projects include reconstruction and rehabilitation of 53km of roads across Harare. US$31m has been set aside to buy road maintenance equipment. Asphalt overlay will be carried out on 8km of roads in the CBD and trunk routes, while 120km of road will be re-gravelled.

[CR 11/11/14]

Zinara Projects On CourseZimbabwe has surpassed road maintenance targets under the Zim-Asset and is on course to widen major highways. At least 24,105km of gravel road networks countrywide have been graded against a Zim-Asset target of 4,000km under the Infrastructure and Utilities Cluster. This follows the Zimbabwe National Road Administration purchase of 80-motorised graders commissioned by President Mugabe in 2013 which have graded over 24,105km of gravel roads [34% of the network]. Zimbabwe has 61,000km of gravel roads. Work is in progress to widen part of the 18,460 km of state highways with some earmarked for dualisation. At least 95% of the Plumtree-Harare-Mutare Road network has been completed with commissioning expected before the end of the year. At least 5 of the 9-toll plazas along that route have been completed. The Rusape and Mutare toll plazas are expected to be completed by mid-November while the Goromonzi and Gweru North plazas are expected to be completed by end of December.

[Herald 01/11/14]

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KenyaUS$3.8 Billion Chinese Rail Project Halted It could be another false start for the construction of the US$3.8 billion Mombasa-Nairobi Standard Gauge Railway [SGR] after the Kenyan High Court ordered the Chinese contractor to halt works. Local residents have vowed not to give up land for the construction until fully compensated by the government. The SGR project, covering a distance of 406km, has been dogged by challenges with questions posed on the way the tendering process was conducted and the awarding of the contract to a Chinese company.

China Road and Bridge Corporation [CRBC] has been contracted to construct the controversial railway project. The company has already shipped in some 2,000 Chinese expatriates for the task that will also see over 30,000 Kenyans engaged. The hurdles prompted a meeting between President Uhuru Kenyatta and CRBC Vice President Chen Yun in an effort to get the project off the ground. The new SGR line, which is a Vision 2030 Flagship project to be implemented by the Kenya Railways Corporation, will typically present an opportunity for the railways operator to run freight trains with 54 double stack flat wagons carrying 216 TEUs per trip.


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RwandaRwanda/Uganda Joint Railway Plan AgreedOn November 4th, Rwanda and Uganda, agreed to conduct joint capacity building programmes to effectively manage the envisaged Kigali-Kampala standard gauge railway.

The proposed line to be completed by March 2018, will stretch from Mombasa through Nairobi to Kampala, Kigali and Juba. While the studies on the project were still ongoing, Kigali-Kampala and Juba had given themselves up to end of this month to have made a final decision on the project contractor. Tororo in Eastern Uganda has already been designated as one of the training centres for engineers to handle the standard gauge railway project.

The deal follows a decision by 3-East African Community partner states-Uganda, Kenya and Rwanda-to enter a tripartite arrangement to fast-track integration projects, including the standard gauge railway. The consultants are yet to report the total cost of engineering and procurement as well as advise on the routes and alignment from Kagitumba to Kigali. 904-km of road from Kampala to Kagitumba had been split for easy management. Each of the countries will sign a Memorandum of Understanding [MoU] to construct the lots under their jurisdiction.

Uganda has approved China Civil Engineering Construction Company to construct their section. The line will ferry cargo at speed of 80 km/hr which will trim down transportation costs - considered one of the leading challenges to doing business within the region.

[New Times 05/12/14]

South AfricaRail Investment Key To Unlocking TradeInvestment into rail infrastructure could be the answer to unlocking Africa’s trade potential to lead to economic growth, Tim Schweikert, the chief executive and President of General Electric [GE] South Africa has said. Schweikert was addressing delegates at the recent African Economic Expansion Summit that took place in Durban. GE is one of the 4-companies awarded a R50 billion contract by Transnet in March to supply 1,064 diesel and electric trains over 4-years.

Transnet is spending 66% of its R312bn expansion budget on rail, which includes a new fleet and upgrading and laying lines to boost capacity to haul iron ore, coal and manganese. Other companies contracted include Bombardier and 2-Chinese companies.

GE has already set aside US$2bn [R22.4bn] for investment in the continent by 2018. Locally GE plans to inject R700 million into developing South Africa’s skills and small medium enterprises as well as creating black industrialists and has already set up a manufacturing site in South Africa. South Africa’s busiest port, Durban Container Terminal, transports about 18% of cargo by rail. The rest is transported by road.

Stakeholders agree that Transnet’s new proposed Dig-out Port plans should be in line with rail infrastructure to avoid future road congestion.

[Business Report 14/11/14]

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UgandaUS$8 Billion Oil Revenue Possible Alternative To Chinese Cash For RailUganda could rely on income from future oil exports to finance an US$8 billion railway if funding talks with China fail to bear fruit. President Museveni confirmed Uganda had started negotiations with China on building the line that would link to Kenya, speeding up freight transport in the region. He gave no details about how far the talks had progressed. If not then the country may look to future oil revenues to meet the costs. The new line would run from the Kenyan border to Kampala, then north to South Sudan and west to the oil fields. It would supersede a narrow gauge line that now only operates to Kampala. The existing line, on which trains travel more slowly, has suffered from years of neglect. Most freight in Uganda goes by road.

[Reuters 21/10/14]

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AngolaHuambo And Moxico Road And Rail Logistics HubsAngolan freight company AngoFret plans to invest US$52.7m in building 2-road and rail logistics hubs in the Angolan provinces of Huambo and Moxico, serving the Lobito Corridor. A contract signed with the National Agency for Private Investment [ANIP] outlines the launch of the project in January 2015. The hubs will be built in the municipalities of Huambo [22-ha] and Luena [21-ha].

The Lobito rail corridor is based on a rail link from the coast [port of Lobito] to the inner border of Angola [Luau], extending onwards to Zambia and the Democratic Republic of Congo [DRC], and is touted as a factor for development of that sub-region of Southern Africa. AngoFret is an Angolan company that operates in the freight and logistics sector and owns multimodal logistics terminals and depots in the Benguela Railway [CFB] in Lobito, Catumbela, Huambo, Luena and Luau, and is controlled by the DT group, a partnership between the Cochan Ltd and Trafigura groups.

[Macauhub/AO 31/10/14]

GhanaGhana-Togo Joint Border PostThe Ghana Chamber of Commerce and Industry [GCCI] have welcomed moves to set up a joint Ghana Togo border post. The move is part of an initiative by ECOWAS to reduce the frustrations at the borders and facilitate trade between member states. President John Mahama and his Togolese counterpart Faure Gnassigbe have inaugurated a joint Ghana Togo border post at Noefe in the Volta Region.

[CitiFM 05/11/14]

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WESTERN AFRICAICD / BORDER POSTS

Burkina Faso Cu9-Lomé-Ouagadougou Road Corridor RehabilitationBurkina Faso has received funding from the African Development Fund [AfDB] to cover the cost of the multinational project of rehabilitation of roads and transport on the CU9 Lomé/de/Ouagadougou corridor.

A tender has been issued for the control and monitoring of developments of the area of rest and the socio-economic infrastructure over 12-months.

[AfDB 30/10/14]

CameroonMovements Of Heavy Duty VehiclesThe Wouri administration is to regulate the movements of heavy duty vehicles in Douala. The government decision restricts the movements of heavy duty vehicles in the day until 9 pm in cities throughout the country. Trucks carrying sand must also use a tarpaulin. Breach of the decision will be sanctioned.

A commission to implement the move has been set up to check insecurity within the transport sector. The commission will in the days ahead check the state of vehicles, control vehicles documents, among others.

[Tribune 31/10/14]

DRC AfDB US$82.7-Million To Improve Batshamba-Tshikapa RoadThe Board of Directors of the African Development Bank on October 22 in Abidjan, Côte d’Ivoire, approved a grant of US$82.7m for the development of a 56-km portion of the Batshamba-Tshikapa road in the Democratic Republic of Congo [DRC], between Lovua and Tshikapa on the country’s NR1. The grant supplements earlier Bank interventions on the same road.

The works include construction of a new bridge over the Kasaï River which crosses Tshikapa town. It aims to improve the service level of the transport logistics chain on the Kinshasa-Tshikapa road and open up the Bandundu and West Kasaï Provinces. Economic benefits include lower vehicle operating expenses and shorter travel time.

[AfDB 22/10/14]

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WESTERN AFRICAROAD

GambiaUS$65-Million Trans-Gambia Bridge ProjectThe Gambian government with funds worth US$65m from the Africa Development Bank [AfDB] has commenced the construction of the Trans-Gambia Bridge project over 3-years. The contract has been awarded to JV Corsan Corvian of Spain and Arezki of Senegal. The 942-m bridge will connect the South Bank Division and North Bank Division of Gambia. Once complete, the bridge is expected to enhance trade and ease movement between the 2-regions.

[Africa Review 13/11/14]

Ghana Eastern Corridor Roads The Government has secured funding from the European Development Fund towards the rehabilitation of the 46-km stretch of the Eastern Corridor Road from Dodo Pepesu to Nkwanta. Known as the national N2 road it forms the main arterial South-North Road which runs in the direction of the Volta Region. On completion it is expected to facilitate easier movement of produce from the food basket area of the Northern part of Volta Region, the adjoining Northern Region and the Upper East Region to the markets of the South.

The Ho-Adidome Road Upgrading Project forms part of government emergency road works which will serve as an alternative route from Accra to Ho and the Northern parts of Volta Region as the Adomi Bridge is under repair works. Progressive Modern Company Limited [PMC], Usuya Limited and Jah-Nicort Limited are the contractors.

[Government 17/10/14]

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AngolaBenguela Railway Reaches DR Congo BorderThe Benguela Railway [CFB] covering 1,344km has reached Luau, eastern Moxico province, on the border with neighbouring Democratic Republic of Congo [DRC]. The extension of the railway will allow the transportation of minerals and other goods including the capture of minerals produced in Katanga [DRC] which currently travel thousands of miles to Mozambique, South Africa and Tanzania, from where they are exported. The Benguela Railway runs from Lobito port in coastal Benguela province to the eastern Moxico province locality of Luau.

[ANGOP 06/11/14]

MaliUS$9.5 Billion Rail Projects To Unlock Iron Ore, Bauxite Deposits Mali aims to diversify its mining sector away from gold with Chinese-built rail projects worth US$9.5 billion that would link it to the Atlantic coast. Last month it signed a string of investment deals with China totalling US$11 billion: US$8 billion would finance a 900-km railway to Guinea’s port capital Conakry and US$1.5 billion would renovate a rail link to Senegal’s capital Dakar, Mali’s main gateway port. The improved transport links would attract investors to under-explored resources such as iron ore, bauxite and uranium that are bulkier and more costly to transport than gold.

Mali’s transport ministry noted talks were underway after a Chinese delegation’s visit to Bamako on Oct. 13. China Railway Engineering Corporation would build the Bamako-Conakry leg while China Railway Construction Corporation would be responsible for Bamako-Dakar. The parties would sign tripartite framework deals between Mali-China-Guinea and Mali-China-Senegal. After that the Chinese partner will have up to 12 months to present a detailed preliminary project and then China would submit financing proposals with Chinese banks to the states.

Some sceptics think the US$11 billion would not be fully deployed. Nevertheless, some plans are already going ahead. The Chinese CGCOC Group plans to exploit Mali’s 100m tonnes Bale iron deposit, 220 km west of Bamako. The company will build a steel plant and also construct a 400MW power plant and would benefit from the rail project. Eurasian Natural Resources Company, which holds the rights to Mali’s estimated 439m tonne bauxite deposit in Falea, also stands to benefit from the prospective railway.

[Africa Report 27/10/14]

NigeriaNational Rail Project Update Construction of Abuja-Kaduna Standard gauge rail line, expected to be finalised by the end of 2014, is now 85% complete. The ministry of transport has managed construction of 155km out of the expected 187.5km rail line stretch over a 2-year period. The project is being funded by the China Exim Bank at a cost of US$500m. Meanwhile construction and rehabilitation of the 274-km Itakpe-Ajaokuta-Warri standard gauge rail line is expected to end by Q2 2015. The project is being executed by Julius Berger at a cost of US$9.75bn.

Another project, Lagos-Ibadan standard gauge [double track] 2 x 180km, whose contracts have been awarded, will start soon. The construction will begin when funds for the project have been arranged. The ministry has awarded contracts for a total 1,796 km in rail lines to take a total cost of US$ 9.76bn. CCECC Nig. Ltd has been awarded the contract project of the Lagos-Ibadan and the Lagos-Kano modernization rail project at an outlay of US$1.53bn and US$8.3bn respectively. At present, US$257.4m has already been paid by the federal government for the expense of these projects.

The main target in connecting the 6-geopolitical zones via speed rails is to make transportation of goods easier. The planned construction of Abunja-Kaduna railway was set to be complete this year.

[CR 23/10/14]

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Documents

CTBL-Watch - Issue 11 - November 2014.indd