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SOUTH AFRICA TO ZIMBABWE CMA CGM OFFERING IMPROVED RATES Full Story On Page 5 AFRICA CTBL-WATCH Zimbabwe: Zim-Asset Bolstered By New Chinese Agreements ISSUE 24 | DECEMBER 2015 Ethiopia: Phase-1 Ethiopia- Djibouti Line Opens Early Mali / Côte d’Ivoire: Road & Transport Development Project 08 14 23

CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

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Page 1: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

SOUTH AFRICA TO ZIMBABWECMA CGM OFFERING IMPROVED RATESFull Story On Page 5

AFRICACTBL-WATCH

Zimbabwe: Zim-Asset Bolstered By New Chinese Agreements

ISSUE 24 | DECEMBER 2015

Ethiopia: Phase-1 Ethiopia-Djibouti Line Opens Early

Mali / Côte d’Ivoire: Road & Transport Development Project

08 14 23

Page 2: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

1

AFRICACTBL-WATCH

ISSUE 24 | DECEMBER 2015

Contents

03 | Corridor Review

05 | African Group News

23 | Western Africa

07 | Eastern & Southern Africa

South Africa - Zimbabwe: Offering Improved Rates / Kenya: Certificate of Conformity [COC] Required For All Shipments

East Africa: Fast-Track One-Stop Border Posts

Ethiopia: Japan Grant To Revamp Truck Load Controlling System / Road Authority To Expedite Akaki Bridge / Phase-1 Ethiopia-Djibouti Line Opens Early / Modjo Dry Port Expanded

Kenya: Construction Of 8,000 Km Of Tarmac Roads To Begin / Mombasa-Mariakani [A109] Highway Project / New US$1.5 Billion SGR Loan For SGR & Embakasi ICD / Chinese Company To Build Mombasa-Malaba Rail Link

Mozambique: EN4 Road To Be Widened / Maputo, Catembe Bridge Scheduled For Completion December 2017

Namibia: German €30 Million Loan To Expand Road Network / N$2.6 Billion Road Agreements

Rwanda: DIKKM Railway Shortlist Announced

South Africa: Cape Town Invests R750 Million To Reduce Traffic Congestion / Transnet Raises US$850 Million Via Syndicated Loan / Alstom Buys 51% Stake In CTLE / Railway Body Concerned At High Cost Of Rail Gauge Switch / ZTE To Digitise South Africa’s Railways / GE Kicks Off Local Production Of Transnet Locomotives / Transnet Completes City Deep Container Terminal

Tanzania: Stakeholders Meet Over Dar es Salaam Corridor / Signs US$400 Million Deal With Japan For Road Projects / AfDB Approves US$545 Million For Road Facilitation / Private Operators For Railway Services / New TRA Chief Orders Review Of ICD Licensing

Zambia: Rising Cost A Serious Challenge / Imports Worth US$2 Million

Zimbabwe: Zim-Asset Bolstered By New Chinese Economic Agreements / Zinara To Launch 10-Tollgates / NRZ To Spend US$10 Million Towards Rehabilitation

Angola: More Scales To Be Installed

Benin / Niger: Dispute Over Rail Rights Impact Blueline / Petrolin Group Wins Appeal

Cameroon: Cameroon Overhauling Rail Sector

Cameroon / Nigeria: Trans-African Highway 8: Bamenda- Enugu Road Nears Completion

Gabon: Gabon Releases Funds For New Transport Infrastructure Projects

Ghana: Tema Motorway To Be Expanded To 6-Lanes

Liberia: Construction Work Begins On Ganta Road

Mali / Côte d’Ivoire: Road Development and Transport Facilitation Project

Nigeria: Planned Toll Restoration / Buhari Negotiates Railway Projects With Chinese Leader

Page 3: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

2

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

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

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

www.cmacgm.com

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

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

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

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

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

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

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

are the sole responsibility of the reader.

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

Rachel Bennett Dominic Rawle

ANGOLA - Parliament passed a $48 billion 2016 budget Friday

based on an average oil price of $45p.b. & daily production of 1.8 million barrels.

BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon

on Dec. 17

BURKINA FASO - Junior West African Resources has raised A$2.1-

million through a share placement to accelerate the development of its high-grade oxide mineralisation at the Tanlouka gold project.

CAPE VERDE - The European Union will provide 3 million euros to fund

six tourism promotion projects in Cabo Verde.

GHANA - Goldplat has installed and commissioned a new shotblast

facility at its Gold Recovery Ghana operations.

NIGERIA - South Africa’s Tiger Brands to sell 65.7% stake in its loss

making Nigerian division to Dangote Industries Limited for $1. Tiger Brands, South Africa’s biggest consumer foods maker, said Dangote Industries will give Tiger Brands an immediate cash injection of US$46.1m.

Western AfricaKENYA - AP Moeller-Maersk will buy Africa Oil’s onshore

exploration license in Kenya, and 2-in Ethiopia in the East African Rift Basin at a cost of $365m plus additional $480 million depending on the Lokichar Project’s performance.

MOZAMBIQUE - US will grant Mozambique $1.2 billion in aid to fund

projects in healthcare, food production and education under a 5-year agreement

SUDAN - Hopes to see economy grow 6.4% in 2016, up from

5.3% in 2015, as the price of oil imports falls.

TANZANIA - Japanese multinational Toshiba Corporation has

concluded an MoU with the Tanzania Geothermal Development Company to develop geothermal power.

UGANDA - An experimental commuter rail service was launched in

Kampala on December 7, as JV between the Kampala Capital City Authority, Uganda Railways Corp and operating concessionaire Rift Valley Railways. Pilot will run for 12 months.

ZIMBABWE - To get a US$34.93m AfDB loan for Bulawayo Water and

Sewerage Services Improvement Project.

Eastern & Southern Africa

Events Diary

News Briefs

March 201615-17 6th African Petroleum Congress and Exhibition (Abuja, Nigeria) http://cape-africa.com/

April 201627-28 5th Mozambique Mining, Energy and Oil & Gas Conference & Exhibition (Maputo, Mozambique) http://www.informa-mea.com/agrainnovate

September 201612-16 Electra Mining 2016 (Johannesburg, South Africa) http://www.electramining.co.za/EN/Content/Pages/Home

Page 4: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

Eastern & Southern Africa

Corridor Current Situation

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

We are now able to offer competitive rates on heavy 20ft container rates Gross Weight [GW] up to 32T and 40ft containers with GW]below 22T for rail to ICD Embakasi following new revised rates from RVR effective 1st Jan 2016.

For shipments to South Sudan the Port Of Load [POL] must collect a Letter of Indemnity [LOI] from the shipper indemnifying the Line against all extra charges incurred at the Port of Discharge [POD], Nimule border and Final Point of Destination [FPOD] before acceptance of any booking.

It has now been made mandatory for all import cargo to Kenya (local) to have a Certificate of Conformity [COC]. Without a COC we will not be able to clear the cargo out of port.

2 ● Tanzania [Dar Es salaam] - Great Lakes

DRC: Roads from Dar Es Salaam to DRC [Goma / Bukavu / Uvira] are in good condition and services are running well.

Rwanda: Service is running very well. It is operated under SCT with efficient transit time and rates.

Burundi: Social unrest has further escalated. The security situation in Bujumbura and in a number of other provinces has seriously deteriorated and remains tense. Therefore, CMA CGM Group has no option than to suspend its CTBL service and no bookings will be accepted to Bujumbura until further notice.

3 ● Tanzania [Dar Es salaam] - Copper Belt

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

4 ● Mozambique Nacala Corridor New competitive rates available from Nacala to Malawi destinations.

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

6 ● Mozambique Maputo Corridor Competitive solutions are available to Zimbabwe by rail from Maputo-Hwange. There is no port storage invoiced if shortage of wagons in Maputo.

7 ● S. Africa Durban New competitive rates available to Harare by road and rail-road. A new containerised rail solution is available from Kitwe in the Copperbelt region to Durban port in South Africa ideal for the movement of copper. We already have 20’ container units available in Kitwe. The new rail solution is also effective Northbound from Durban to Lusaka. We have also extended our South African inland reefer service from/to the port of Durban to Johannesburg. Extension of all other over border trucking rates.

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

3

CORRIDOR REVIEW CTBL AFRICA

Page 5: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

Western Africa

Corridor Current Situation

1 ● Senegal-Mali We are only able to accept cargo for Southern Mali destinations. For safety reasons traffic to Northern Mali [Kignan, Ségou, Mopti, Sevaré, Gao, Kidal, Menaka, Ansongou, Tessalit, Timbuktu] via Dakar are temporarily suspended.

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

3 ● Cote d’Ivoire-Burkina/Mali The rail service from Abidjan is running well offering excellent transit times and no congestion. We also recommend the road option. Furthermore the Group has launched a new reefer service from Abidjan.

4 ● Ghana-Burkina Tema-Ouagadougou service is now available offering the most competitive corridor pricewise, with excellent transit time from Asia with AFEX service. Our expert TBL team is in place for all your booking requests.

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

6 ● Cameroon-Chad Rail delays faced as CAMRAIL, the operator, is experiencing congestion in Douala & N’Gaoundere stations. We suggest cargo is moved via our road TBL service.

7 ● Cameroon-CAR Douala-Bangui is open on a case by case basis with agreement from our local Douala Agency. Political security is not 100% on this corridor. Please note all TBL to Bangui will be subject to Consignee signing LOI locally.

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

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

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

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

4

Page 6: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

South Africa - Zimbabwe: Offering Improved RatesWe are pleased to offer very competitive rates for our South Africa to Zimbabwe corridor. Having secured discounts from our providers that perform Durban to Harare by road and Durban to Harare by rail/road we readily pas these back to our customers. Therefore all our inland tariffs from Durban to Zimbabwe have been improved.

For ease we can offer all-in rates that include: Transport Cost, Cargo Dues and Transit Bond fee, Clearance, Fuel Levy, Documentation Fee and Turn in Fee. Customers will only be subject to a release fee at destination.

Our full offer from the port of Durban is as follows. For rates and bookings please contact your nearest CMA CGM agent.

COUNTRY CITY MODE DELIVERY TRANSIT TIME FREE TIME AT DESTINATION

Zimbabwe

Harare Rail Depot 15 days 7 days

Harare Road Door 7 days 1 day

Harare Rail+Road Door 10 days 1 day

Bulawayo Road Door 7 days 1 day

Bulawayo Rail+Road Door 10 days 1 day

Kwekwe Road Door 7 days 1 day

Zambia

Lusaka Road Door 8 days 1 day

Lusaka Rail Depot 20 days 7 days

Copperbelt Road Door 9 days 1 day

Livingstone Road Door 10 days 1 day

MalawiLilongwe Road Depot 10 days 7 days

Blantyre Road Depot 9 days 7 days

LesothoMaseru Rail Depot 10 days 7 days

Maseru Road Door 5 days 1 days

Swaziland

Mastapha Rail Depot 10 days 7 days

Mastapha Road Door 5 days 1 days

Mbabane Road Door 5 days 1 days

Botswana

Gaborone Rail Depot 8 days 7 days

Gaborone Road Door 6 days 1 day

Francistown Rail Depot 8 days 7 days

Congo Lubumbashi Road Door 12 days 1 day

5

AFRICAN GROUP NEWSCMA CGM / DELMAS

Page 7: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

Kenya: Certificate of Conformity [COC] Required For All ShipmentsWe would advise all customers that it has now been made mandatory for all import cargo to Kenya (local) to have a Certificate of Conformity [CoC] as part of the Pre-Export Verification of Conformity (PVoC) to Standard Services. Without a COC we will not be able to clear the cargo out of port.

RESOURCES - For a useful factsheet covering the PVoC program and its processes please view https://www.cma-cgm.com/

static/eCommerce/Attachments/Kenya%20121115.pdf - Kenya Bureau of Standards [KEBS] website: www.kebs.org

Please also be advised that the Kenyan authorities have weight restrictions for vehicles plying national roads. 6

Page 8: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

TanzaniaStakeholders Meet Over Dar es Salaam Corridor

Transport stakeholders met in Dar es Salaam over issues that increase the cost of doing business, particularly along the Dar es Salaam corridor extending from the port to Tunduma, Lusaka and Lubumbashi. The meeting attracted members from the Tanzania Truck Owners Association [TATOA], Tanzania’s Ambassador to the DRC and Tanzania Drivers Workers Union [TADWU]. Transporters identified areas that cause delays in the transport chain from Dar es Salaam port including traffic jams, weigh bridges, checkpoints and the border post. They asked the government to intervene to reduce the cost of doing business.

Investment has improved the Central Corridor from Dar es Salaam port to Kigali and Bujumbura but very little has been extended to the Dar es Salaam Corridor from Dar port to Lubumbashi and Lusaka. Statistics show about 4 million tons are served through the Dar es Salaam corridor to DRC and Zambia annually but less than 1-million tonnes are ferried through the Central Corridor.

These figures are a clear indication that the Dar es Salaam Corridor is earning substantial revenues compared to the Central Corridor. Therefore the government must remove road impediments to foster timely delivery of transit goods and improve the competitiveness of the Dar es Salaam Corridor. Despite improvements made on network systems intended to increase cargo clearance efficiency at the port, it still takes more than a day for a truck to be loaded with cargo even after completing clearance procedures.

Similarly, the congestion from Dar port to the Misugusugu weighbridge is another area that causes delays and increases delivery time. There are 7-weigh bridges along the Dar-Tunduma route. Similarly, the considerable number of check points adds to delays and increases costs. A recent survey show on average each driver spends 16 hours per trip making Tanzania uncompetitive in the global market.

Despite discussions with respective authorities including the Police, checkpoints and corruption have continued. At the meeting transporters recommended police checks be enforced only if there is a probable cause and that weighing checks are minimised to 2-points: at the port and final check at border exit point applicable to all transit routes.

Impediments if not checked could result in substantial loss of business with Zambia and DRC. The nearest ports namely Beira, Walvis Bay in Namibia, Durban in South Africa and Angola have already started to capitalize on the port inefficiency and road blocks. The construction of a 1,344 kms railway to connect Angola, Lusaka and Lubumbashi has reached an advanced stage and will provide another option to Dar es Salaam port. And in Angola authorities provide space for handling containers destined for DRC and Zambia.

[Daily News 18/11/15]

7

EASTERN & SOUTHERN AFRICACORRIDOR & TRADE NEWS

Page 9: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

ZimbabweZim-Asset Bolstered By New Chinese Economic AgreementsThe implementation of Zim-Asset received a major boost and fresh impetus following the signing of 12 landmark agreements between Zimbabwe and China to fund vital projects in key economic sectors. Zim-Asset is the government’s 5-year economic blueprint. The agreements, which cover key sectors such as infrastructure, telecommunications and energy was witnessed by President Robert Mugabe and his Chinese counterpart Xi Jinping on his recent 2-day State visit to Zimbabwe leading a delegation of 200 people including Cabinet ministers, bankers and representatives from the Communist Party of China. This followed President Mugabe’s successful 13th State visit to China in August last year, where 9-mega deals were signed:

1. An economic and technical cooperation agreement with China2. Avoidance of double taxation3. Expansion of Hwange Thermal Power Station with Sinohydro 4. Expansion of Telone’s fibre optic project 5. Construction of a national pharmaceutical warehouse 6. Wildlife protection agreemnet7. Construction of a new Parliament building 8. Private sector agreement between International Business of China and China Africa Sunlight Energy on the development of coal and methane gas mines and establishment of 600 MW thermal power station in Gwayi. 9. Private sector agreement between AVM Africa Limited and Beijing Automobile Assembly. 8

Page 10: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

EthiopiaJapan Grant To Revamp Truck Load Controlling SystemThe Ethiopian Roads Authority [ERA] is set to renovate the existing truck axle load controlling system with a modern Japanese-made technology in which 14 controlling stations will become more automated in a few months’ time. The grant, from the Japan International Cooperation Agency [JICA], totals US$5 million. Civil works have already begun and ERA is looking to finalize equipment purchase from JICA. The project is expected to be finalized by the end of 2017.

The purpose of axle load control is to protect roads from premature damage caused by overloaded trucks. According to ERA, between 1997 and now, 110,404km of all types of roads have been built across the country; currently, over 20% of trucks in Ethiopia are assumed to be overloaded and causing damage to this road network. To safeguard the roads from damages, ERA has established axle load controlling systems where digital scales weigh and measure the load amount on trucks.

[The Reporter 28/12/15]

Road Authority To Expedite Akaki BridgeAddis Ababa City Roads Authority [AACRA] has signed 260.7 million Br worth of contracts with 3-contractors on December 3rd for the construction of a bridge and roads. IFH Engineering will be paid 170 million Br for the construction of Akaki Bridge part of the Djibouti corridor. The design is by consulting firm Omega, which will supervise the project to be completed within 1-year. The bridge will set aside 12m of the 50m width for railway construction.

[Addis Fortune 07/12/15]

KenyaConstruction Of 8,000 Km Of Tarmac Roads To BeginConstruction of 8,000km of tarmac roads in Kenya is set to begin in week-51 to ease transportation of goods. The project involves 16 Nairobi and Mombasa highways including the dual carriageway from Mariakani to Mombasa to ease traffic flow between the port of Mombasa and the hinterland. The African Development Bank [AfDB] funded project will be implemented in phases. Construction of the Dongo Kundu bypass is on-going addressing the transport crisis at the Likoni channel. The road will link to the port’s second container terminal for eventual effective cargo delivery.

[Construction Review 07/12/15]

Mombasa-Mariakani [A109] Highway ProjectThe Kenyan Government has obtained financing from the African Development Bank [AfDB] towards the cost of dualing of the A109 Mombasa-Mariakani Highway. Part of the proceeds will be applied to the Mombasa-Kwa Jomvu Section under Lot -1. The A109 7 is situated in Mombasa and Kilifi Counties of Coastal Kenya forming part of the 500km Mombasa-Nairobi highway. The Kenya National Highways Authority [KeNHA] now invites sealed bids.

[AfDB 14/12/15]

9

EASTERN & SOUTHERN AFRICAROAD

Page 11: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

MozambiqueEN4 Road To Be WidenedThe Mozambique government has authorised South African Trans African Concessions [TRAC] to widen the National Highway Number 4 [EN4] that connects Mozambique to South Africa. The move will accommodate growing amounts of traffic especially in sections 19 and 20 which will be widened from 4 to 6-lanes as well as putting more resources in place for load control and compensation for damage caused by excessive goods in transit, among other works. Estimates point to 53,000 vehicles using the road on a daily basis.

The road is part of the Maputo Development Corridor, designed to promote trade between Mozambique and South Africa. Initially, the road went from Witbank to the port of Maputo in order to encourage the development of industry in the Mpumalanga region, but it was extended by 100km to reach Pretoria. The project will be managed by TRAC for 30 years under a Build, Operate and Transfer [BOT] system.

[Macauhub/MZ 18/11/15]

Maputo/Catembe Bridge Scheduled For Completion December 2017Construction of the Maputo/Catembe Bridge and associated road network should be completed in December 2017. The developer, Empresa de Desenvolvimento de Maputo Sul, gave assurances that the project is progressing with more than half of the north bank pillars [Maputo side] placed and nearly 90% of those in the south [Catembe side].

The bridge, which is being built by the China Road and Bridge Corporation [CRBC], starts at the extension of national road 1 [EN1] to Praça 16 de Junho, near the National Institute of Communications, where a 1.09 km viaduct begins. It then runs as far as the tower next to pier 5 of Maputo port. There will be a suspended section 680m long at a height of 60m above sea level allowing the navigation of Maputo port.

Construction of the Bridge is part of a project that includes connecting roads with the southernmost part of Maputo province, at an estimated cost of US$785 million financed by the Export Import Bank of China. On completion it will be possible to travel by road across the north-south axis from Rovuma to Ponta do Ouro and connect to Durban in South Africa.

[Macauhub/MZ 01/02/15]

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Page 12: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

NamibiaGerman €30 Million Loan To Expand Road NetworkThe Namibian Minister of Finance signed an agreement with the German Federal Government and the Kreditanstallt fuer Wiederafbau (KfW) for a €30 million concessional loan to continue improvement of the road network in the Zambezi region and implemented by the Roads Authority. One project is the ongoing rehabilitation and extension of the Windhoek Okahandja road which is under tremendous traffic. It is notorious for its number of accidents when traffic peaks at around 18,000 vehicles per day. The agreement includes an extension clause to extend the loan facility in a 2nd phase with an additional €30 million for transport infrastructure.

[Economist 27/11/15]

N$2.6 Billion Road Agreements The Roads Authority [RA] signed 3-contracts worth about N$2.6 billion for the rehabilitation and upgrading of road projects. N$1.08 billion, co-funded by the Road Fund Administration [RFA], has been allocated for a 27.6km stretch of road between Windhoek and Okahandja, spanning from the Dobra River to just south of the Osona Military Base. This contract has been awarded to a joint venture [JV] between Italian company CMC [70%] and Otesa [30%], a Namibian company.

[New Era 09/12/15]

11

EASTERN & SOUTHERN AFRICAROAD

Page 13: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

South AfricaCape Town Invests R750 Million To Reduce Traffic CongestionCape Town’s Council endorsed a Congestion Management Programme to address traffic congestion problems.In November, the city’s Mayor Patricia de Lille, committed R750m over a period of 5-years for road infrastructure projects to alleviate the major pressure points in the city. As part of the programme the worst congested areas in relation to freight movement, business traffic and public transport services are to be prioritised including:

- Jip de Jager Drive in Bellville - Broadway Boulevard in the Strand - Sir Lowry’s Pass Village Road in Gordon’s Bay - De Villiers Road in Durbanville

[News24 11/12/15]

TanzaniaSigns US$400 Million Deal With Japan For Road ProjectsTanzania has signed a deal with Japan for nearly US$400 million to develop major roads in the country. The Japan International Cooperation Agency [JICA], on behalf of the Japanese government, will provide the money. Along with the African Development Bank [AfDB], JICA will improve the 230 km Arusha-Holili/Taveta-Voi stretch. JICA will also provide financial assistance for a 100 km-long section, including the Kikafu Bridge.

[Africa Review 01/12/15]

AfDB Approves US$545 Million For Road Facilitation The African Development Bank Group [AfDB] has approved a transport support and facilitation program for Tanzania. The country will receive a US$75.43-million African Development Fund concessional loan and a US$270.95 million AfDB loan to finance its Transport Sector Support Programme, which involves interventions in the country’s roads, rail and air transport sub-sectors. The project, to be implemented in 5-years and is estimated to cost US$384.29 million. The Bank’s contribution represents 88% of total costs while the government will provide the remaining 12%.

The programme includes the rehabilitation and upgrading of nearly 500-km of roads to bitumen standard in Tanzania and Zanzibar; capacity building and construction of social infrastructure as well as studies in railway and air transport sub-sectors as per the Country’s Vision 2025. The roads will also serve as links between Tanzania and neighbouring countries of Malawi and Mozambique through the Mtwara Corridor; and Zambia and Democratic Republic of Congo [DRC] through the Tunduma/Nakonde border and Kasanga Port and will benefit cross-border trade.

[AfDB 27/11/15]

12

Page 14: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

ZambiaRising Cost A Serious ChallengeThe rising cost of projects is a key challenge that faces the Government in implementing the Link Zambia 8,000 Road Project. The depreciating kwacha and flagging economic situation has brought about delays in payments to road contractors. The government had set aside US$50 million of a Eurobond for the construction of rural roads implemented by ZNS in conjunction with the Rural Roads Unit. The move will target farm blocks and high agriculture producing areas.

[Post Zambia 25/11/15]

Imports Worth US$2 MillionZambia registered the biggest market share worth of imports with 22% in 2014, at the value of US$ 2.3 million, down from the 2013’s share of 26% at US$2.8 million. The Common Market for Eastern and Southern Africa [COMESA] Business Council said Zambia’s intra-COMESA imports were mainly copper, ores and concentrates. On the export side, Zambia ranks fourth in the COMESA region with 11.5% market share, at the value of US$1.16 million with the major exports being copper, ores and concentrates.

[Times 30/11/15]

ZimbabweZinara To Launch 10-TollgatesTen more national tollgates will soon be completed with 4-expected to be finished this month with the rest by April 2016. Zimbabwe National Road Administration (Zinara) noted the 4-tollgates are at Karoi on the Harare-Chirundu Road, at Bindura on the Harare-Mount Darwin Road, on the Bulawayo-Gwanda Road and at Magamba on the Chivhu-Nyazura Road. Those for April launch are at Kazungula on the Victoria Falls-Kazungula Road, at Dewure and Lothian on the Masvingo-Mutare Road, on the Ngundu-Tanganda Road, at Chivhu on the Harare-Chivhu Road and at Rutenga on the Masvingo-Beitbridge Road.

[Herald 07/12/15]

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EthiopiaPhase-1 Ethiopia-Djibouti Line Opens EarlyThe Ethiopian Railway Corporation [ERC], has launched the first phase of the railway line that now connects land-locked Ethiopia to Djibouti’s port, in late October. Though the projects is 90% complete it was opened early to serve millions of Ethiopians in the north which are facing one of the worst droughts the country has seen in nearly 3-decades. The line is seen as a faster way to deliver humanitarian assistance.

The 756 km electrified railway was contracted by 2-Chinese companies, namely China Civil Engineering Construction Corporation [CCECC], and China Railway Group [CREC] at an estimated to cost US$3 billion. The project that links Addis Ababa with the port of Djibouti is being built in 2-sections - the first extends from Sebeta-Meiso, while the second one extends from Meiso-Dewele.

[AFK 23/11/15]14

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KenyaNew US$1.5 Billion SGR Loan For SGR & Embakasi ICDKenya secured another Sh140 billion foreign loan, to finance the second phase of the Standard Gauge Railway [SGR] for the Nairobi to Naivasha extension. President Uhuru Kenyatta secured the deal with the China Eximbank during an 8-day trip which included attending the Forum on China-Africa Cooperation [FOCAC] in South Africa.

On the margins of FOCAC, Kenya and China signed a financing package whereby China Eximbank will provide a US$1.5 billion loan, 85% of the financing, while Kenya will provide the balance. Part of the package includes the expansion and modernisation of the Inland Container Depot in Embakasi. Furthermore to catalyze economic activity along the SGR route, China will invest in the construction of an industrial park in Naivasha. The first phase of the SGR project from Mombasa-Nairobi gobbled up Sh327 billion, with China’s Eximbank funding 90% of the project with the remainder provided by the Exchequer. The project remains the single largest investment in the country’s economy in the last 5-decades.

Apart from the above deal, Kenya Railways and China Communications Construction Company Ltd have also signed a pact to carry out feasibility studies and initial designs for the second leg of the Mombasa-Nairobi line, which will stretch to Malaba on Kenya’s border with Uganda.

[Star 07/12/15 & Construction Review 08/12/15]

Chinese Company To Build Mombasa-Malaba Rail LinkChina Communications Construction Co [CCCC] announced it will build a standard gauge railway across Kenya to Malaba at the Uganda border, and will also invest in an industrial park at the starting point of Mombasa. While securing the financing for the first phase of Nairobi-Malaba Standard Gauge Railway [SGR] from Nairobi to Naivasha, which will cost US$1.48 billion, the company also said it won the contract for the second and third phases, which are separated by Kenya’s western city Kisumu; the plans were announced during the Forum on China-Africa Cooperation [FOCAC] held in Johannesburg.

Currently, CCCC’s subsidiary China Road and Bridge Corp is building the 472-km Mombasa-Nairobi Standard Gauge Railway [SGR], which will be completed in 2017 at a cost of US$3.8 billion. CCCC plans to build a number of industrial parks in Africa. One of them will be in Mombasa covering 12km2. Investment will be gradual with first phase about US$1 billion.

Among the 10 plans announced at FOCAC China will boost industrial links and collaboration on production capacity by building or upgrading a number of industrial parks. Meanwhile the SGR from Mombasa to Malaba is believed to be significant in reducing transportation costs and promoting the industrialization process in the whole East Africa region. The SGR is expected to reduce rail transport costs from US$0.20 cents to US$0.08 cents /MT per km. It will also relieve the pressure on traffic on the highway and reduce the great damage from the trucks to the road. In the Mombasa to Nairobi section, up to 30,000 workers are expected to be employed before it is completed and 5,000 Kenyan workers will be trained, according to CRBC. Kenya government has planned a number of industry parks along the Mombasa-Nairobi SGR.

[ECNS 08/12/15]

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RwandaDIKKM Railway Shortlist AnnouncedThe shortlist for a PPP contract to develop and implement the proposed 1,672 km line which would link Dar es Salaam in Tanzania with Kigali in Rwanda and Musongati in Burundi was announced on November 17th. Rwanda Transport Development Agency is leading procurement on behalf of the 3-countries. The shortlisted companies and consortia are:

- China Railway Group - Sinohydro Corporation Ltd with China Railway Materials and Beijing National Railway Research & Design

Institute of Signal & Communication Group - China Communications Construction Co - Yapi Merkezi naat - Il & FS Transportation and Frontline Development - Grindrod Rail - Kolin naat, Turizm Sanayi ve Ticaret - China Civil Engineering Construction Corp - Aveng Group with Arcus Gibb, Siemens, CTLE, DBSA, KfW, Deutsche Bank and Euler Hermes - Transet - Mota-Engil Engenharia e Construção África - NGE Contracting with TSO, Alstom and System.

Requests for proposals will be sent to the shortlisted firms. Around 172 km of the route would be in Burundi and 123 km in Rwanda. There would be 407 km of new alignment in Tanzania from Keza to Isaka, and 970 km paralleling the existing metre-gauge line between Isaka and Dar es Salaam. The mixed-traffic DIKKM railway will be built to 1,435 mm gauge, in line with East African Community [EAC] and African Union [AU] policies for new lines in the region, and would be suitable for 2,000m long freight trains with 32·4 tonne axleloads.

[Railway Gazette 18/11/15]16

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South AfricaTransnet Raises US$850 Million Via Syndicated LoanSouth African logistics group Transnet raised US$853 million [R12 billion] through a syndicated loan to fund part of a spending plan on 1,000 new locomotives from companies including General Electric Co. and Bombardier Inc.. Transnet, whose wagons transports commodities such as coal, iron ore and fuel, has been expanding and revamping railways, pipelines and ports. Transnet said the money would be raised from several banks that include Nedbank, Bank of China, Barclays Africa Group and the asset management arm of insurer Old Mutual. The loan brings Transnet’s funding for new trains to R48 billion out of a total R50 billion.

[Reuters 23/11/15]

Alstom Buys 51% Stake In CTLEAlstom has agreed to buy a 51% share in South African rail company Commuter Transport & Locomotive Engineering [CTLE] which specialises in the modernisation of trains. Following finalisation of the agreement and securing approval from the South African antitrust authorities, Alstom will launch an integration project that will extend the activities of CTLE to include infrastructure, signalling, trains and components.

[Railway Technology 30/11/15]

Railway Body Concerned At High Cost Of Rail Gauge SwitchThe SouthAfrica’s National Rail Policy green paper, released in September, proposes that the nation move from Cape gauge to standard gauge. According to the Department of Transport, only 9% of the world uses Cape gauge and 60% standard gauge. The African Union’s [AU] Vision 2063 envisages all of Africa’s rail lines being standard gauge. However converting needs to be analysed and reconsidered due to the high costs as well as the practicalities to implementation.

Calling for the restraint is the Southern African Railways Association, a regional association of railways, echoing a view held by Transnet, the state-owned logistics group. Transnet had conducted studies on its own rail network and found that converting from Cape gauge to standard gauge would cost more than R1.5-trillion.

Cape gauge track is narrower than standard gauge. When in good condition, the Cape gauge track is able to move a lot of freight and the focus should be on making trains on this gauge longer, the association argues. It is easier to connect new rail lines to existing Cape gauge track.

[BDlive 26/11/15]

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ZTE To Digitise South Africa’s RailwaysZTE Enterprise Business noted Chinese telecoms giant ZTE is to bring smart rail solutions to the South African market. The plans, first announced in July, have been confirmed at the Forum on China-Africa Co-Operation [FOCAC] Summit. Together with a number of its Chinese partners ZTE will invest billions of rands to modernise the nation’s rail infrastructure. ZTE has signed a contract with EOH to bring smart rail solutions to the country.

ZTE’s iRail solution features include broadband communication, providing rail systems with broadband communication networks based on LTE for rail, and 100G optic network technologies. It also uses cloud architectures as rail transportation information platforms, integrating the existing applications, deploying virtual desktops, unified communication, and new applications.

In October, EOH announced the acquisition of Mehleketo, a local provider of rail automation and technology solutions, for an undisclosed amount. It is one of the top rail signalling and communications engineering and systems integration solutions providers in South Africa, and has a number of long-term projects as well as maintenance and support contracts with the major operators in the country. The move, aiming for trains to run at speeds of 150-180km per hour, is part of China’s Silk Road Initiative: “One Belt, One Road”. Beijing wants to create China-centred infrastructure networks in order to expand its own economic and political influence in Eurasia and Africa.

[Footprint to Africa 08/12/15]

GE Kicks Off Local Production Of Transnet LocomotivesDigital industrial group GE has started production of the 233 GE Evolution Series locomotives it has been contracted to supply to State-owned Transnet Freight Rail [TFR] as part of its acquisition of 1,064 electric and diesel locomotives from 4-original-equipment manufacturers. The R50-billion acquisition contract would see China South Rail Zhuzhou Electric Locomotive and Bombardier Transportation South Africa collectively supply 599 electric locomotives, while GE South Africa Technologies and China North Rail Rolling Stock South Africa would supply a collective 465 diesel locomotives.

Approval to begin local manufacturing was granted to GE in March 2014 following delivery of the first six Evolution Series locomotives, which were manufactured by GE in the US. These locomotives would act as blueprints for the remaining 227 locally-built locomotives that GE would deliver as part of Transnet’s locomotive fleet renewal programme.

[Engineering News 08/12/1 & Railway Gazette 25/11/15]

Testing

General Electric TFR took delivery of the first of 233 Class 44 diesel locomotives this month ordered in March 2014. The order was one of 4-placed at the time for a total of 1,064 locomotives. Four Class 44 locomotives have started test running and driver training trips. They are part of an initial small batch being assembled in the USA and will be followed by the main build which will be assembled in South Africa with a high level of locally-supplied components.

CSR Zhuzhou [Part of CRRC] The first of 359 Class 22E dual-voltage electric locos ordered from CSR are being tested. The units have a nominal rating of 4,600 kW. The first 4-locos arrived at Durban in October, from where they were dispatched to Pretoria for commissioning.

CNR Dalian [Part of CRRC] Also on order are 240 Bombardier Traxx electric locomotives rated at 3 800 kW and 232 diesel-electric units with a 3,300 kW power rating ordered from CNR Dalian.

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TanzaniaPrivate Operators For Railway ServicesTanzania is preparing regulations to allow private operators in its state-run railway infrastructure as the government seeks to create a competitive environment in the transport sector. The Surface and Marine Transport Regulatory Authority [SUMATRA], noted the government is drafting the rules known as Open Access Regulations. The regulations are now in the drafting stage and are likely by the end of the next financial year [2016/2017].

Tanzania has 2-operators: Tanzania-Zambia Railway Authority [TAZARA] that is owned and runs between the two countries and Tanzania Railway Limited [TRL] which operates between Dar es Salaam and the western regions of Kigoma, Katavi and Mwanza. The TAZARA line which was financed by China during 1970-75, is 1,860km long and links the port of Dar es Salaam in Tanzania and New Kapiri Mposhi in Zambia. The rest of the railway lines are owned by Reli Assets Holding Company [Rahco], a state-owned company responsible for developing, managing and maintaining Tanzania railway infrastructure. Rahco also owns Tanga line and Moshi - Arusha line.

Meanwhile the TAZARA board has observed that operational performance has fallen to record low levels of less than 90,000 MT of freight haulage in the financial year 2014-2015.This is from over 200,000 MT recorded in the financial year 2013-2014. The board has directed management to develop a clear marketing strategy for the rail company.

[Citizen 10/12/15 & ZNBC 12/112/15]]

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ZimbabweNRZ To Spend US$10 Million Towards RehabilitationThe National Railways of Zimbabwe [NRZ] will inject US$10 million towards the rehabilitation of tractive power, communication, track and yard infrastructure in 2016.Government is also expected to avail an additional US$3 million from tax revenues to support the national rail company’s rehabilitation initiatives.

The funding will be raised from the disposal of scrap wagons and other internal fundraising initiatives. NRZ invested US$6.87 million of its own resources this year towards the refurbishment of 7-locomotives and 360 wagons. However, recovery of the rail sub-sector requires NRZ to engage a technical partner able to bring new capital and technical ability.

NRZ is responsible for a national network of approximately 2,700-3 000km, with its main line running for 1,500km. NRZ has a fleet of about 168 locomotives, 70 of which are serviceable, although all are reaching the end of their life spans. The bulk of the fleet is over 30 years old. There has been a plan to do “stop gap” rehabilitation of locomotives at approximately US$750 000 per unit until finance is available to buy a new fleet.

[Herald 09/12/15]

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East AfricaFast-Track One-Stop Border PostsThe East African Legislative Assembly has called upon member states to fast-track all remaining works on the One Stop Border Posts [OSBP] to pave the way for implementation other integration projects. The OSBPs are expected to reduce days and facilitate inter-regional and international transport.

During April-September 2015 EALA members undertook on-spot assessments on the status of implementation of the OSBP projects and their effect the EAC business environment. The assessment covered the following posts:

- Mutukula (Uganda/Tanzania) - Mirama Hill/Kagitumba (Uganda/Rwanda) - Rusumo (Rwanda/Tanzania) - Lungalunga/HoroHoro (Kenya/Tanzania) - Taveta/Holili (Kenya/Tanzania) - Namanga (Tanzania/Kenya)

The visit also set to interact with stakeholders and identify opportunities and challenges affecting the implementation of effective OSBPs and to come up with relevant recommendations. Stakeholders who participated in the on-spot assessments included revenue authorities, immigration, bureau of standards, police and clearing and forwarding Agents.

[East African 28/11/15]

EthiopiaModjo Dry Port ExpandedThe holding capacity of the Modjo Dry Port has improved from 950 to 14,900 containers. The average in-flow and out-flow of containers at the dry port has also reached 1,600 per day over the last 3-months. Modjo Port accomodates 80% of national imports. The port is under massive expansion work on additional 88-ha to meet international standards. Currently, the port covers 62-ha. Meanwhile the average staying time of containers at the Djibouti port has also been brought down from 45 to 10 days. However, the port’s operation is not yet fully supported by modern information technology.

[Herald 01/12/15]

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South AfricaTransnet Completes City Deep Container TerminalTransnet has announced the completion of a US$56 million expansion at the City Deep Container Terminal in Johannesburg as it steps up its drive to move rail-friendly cargo off South Africa’s roads. The investment doubled capacity to 400,000 TEU per annum, confirming City Deep’s status as Africa’s biggest inland port. The upgrade included the replacement of all container-handling equipment, including rail-mounted gantry cranes, reach stackers and container handlers, as well as the installation of a Navis terminal operating system.

The City Deep Container Terminal, which is operated by Transnet Freight Rail [TFR], handles around 60% of container volumes from the ports of Cape Town, Durban and Ngqura, in and out of Gauteng. The terminal also functions as an interchange for traffic destined for inland provinces and neighbouring countries.

Traffic management for trucks in and out of the terminal has improved significantly, reducing turnaround times. The terminal can now accommodate both 12 and 6m containers – this is a key requirement for our customers in our neighbouring countries. These need not be on road anymore.

Siyabonga Gama, Chief Executive of Transnet Freight Rail [Pty] Ltd

Transnet’s road-to-rail strategy is a key element of the Market Demand Strategy [MDS]. So far, the company has spent more than US$7.6 billion in its rail, ports and pipelines infrastructure.

[Port Technology 26/11/15]

TanzaniaNew TRA Chief Orders Review Of ICD Licensing Licencing of Inland Container Depots [ICD’s] will undergo major reviews this year to address shortfalls identified by Tanzania Revenue Authority’s new acting Commissioner General, Dr Philip Mpango. Dar es Salaam port stakeholders have said that most inland container depots do not comply to the 2004 East African Customs Management Act hence deny the Treasury billions in taxes. ICDs are port extension facilities which need to have TPA, TRA, TFDA, TBS and other department represented but these seem to be lacking. Dar es Salaam port has 14 licensed ICDs for 2014/15 financial year: Azam, African Inland, AMI, Alhoshoom, East Coast, ETG Cargo, Jefag Logistics, Galco, Malawi Cargo, Mofed, Oilcom, PMM, TRH and TICTS Ubungo. In a bid to decongest Dar es Salaam port in 2007, TRA and TPA licensed the ICDs to act as port extensions and successfully managed to decongest by 2009.

[Guardian 03/12/15]

“”

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Mali / Côte d’IvoireRoad Development and Transport Facilitation ProjectThe African Development Bank Group [AfDB] approved 2-major transport support and facilitation programs for the Mali-Côte d’Ivoire Road Development and Transport Facilitation Project on the Bamako-Zantiebougou-Boundiali-San-Pedro Corridor. The move involves the upgrading of road sections as an alternative road to neighbouring landlocked countries. The project, to be implemented over 5-years from March 2016 to December 2020, is estimated to cost US$233.18 million. The Bank’s contribution represents 84.32% of the total.

The AfDB will also assist the emergence of San Pedro Port, Côte d’Ivoire, as a key transit port for Mali and Burkina Faso and the northern part of neighbouring Guinea. These roads are included in the priority programs of the West African Economic and Monetary Union [WAEMU] and the Economic Community of West African States [ECOWAS]. The project will also connect to the Eastern regions of Guinea and Liberia on completion.

Transport facilitation measures are designed to free the corridor of all non-tariff barriers through a proactive use of information and communication technologies. These include the construction of a One-Stop Border Post [OSBP], the interconnection of customs IT systems, the establishment of a port’s single window at San Pedro and an electronic tracking system for cargo and vehicles along the corridor.

[AFDB 27/11/15]23

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AngolaMore Scales To Be Installed The Angola Roads Institute [INEA] announced at least 31 fixed and 5-mobile road scales will be installed in 2016 nationwide to regulate the weight of goods transportation vehicles and thus ensure the durability of the roads. The first 3-weighing stations are being installed on the Viana/Catete/Maria Teresa, Cacuaco/Caxito road and Chibia, southern Huila province, to regulate the load travelling on national roads.

[ANGOP 04/12/15]

Cameroon / NigeriaTrans-African Highway 8: Bamenda- Enugu Road Nears CompletionA new 403km road linking Bamenda, Cameroon, with Enugu, Nigeria, is nearly finished. The road is part of an ambitious 6-country economic corridor being built between Nigeria and Kenya otherwise known as is Trans-African Highway 8.

Cameroon and Nigeria signed the agreement to build the road in 2007 with US$423 million funding from the African Development Bank. It is part of a larger highway conceived three decades ago to link Lagos to Mombasa on the Indian Ocean.

That highway would stretch 6,300 km from Nigeria and Cameroon into the Central African Republic, the Democratic Republic of Congo [DRC], Uganda and Kenya.

The African Development Bank estimates that highway is about 60% complete, but says negotiations continue as political differences and insecurity slows the process.

[VoA 20/11/15]

GabonGabon Releases Funds For New Transport Infrastructure ProjectsPlans to link Gabon’s second-largest city, Port-Gentil, with the rest of the country by road are making steady progress, with the new 93-km Port-Gentil-Omboué motorway reaching 20% completion in late September. The project highlights the government’s commitment to improving internal transport infrastructure. Currently, Port-Gentil, which is also the centre of the country’s oil and gas sector, is only reachable by air, separated from the rest of the country by ocean, swamps, rivers and heavily forested areas.

Port-Gentil is the epicentre of Gabon’s hydrocarbons sector and also hosts several major industrial facilities, as well as the nation’s sole oil refinery, operated by the Société Gabonaise de Raffinage. The new road connection comes at a key time, with the government’s development roadmap targeting the establishment of a special economic zone in Port-Gentil, with plans for a new port and fertiliser plant.

With the base structure and metal bridgework currently underway, the project – funded primarily by the Export-Import Bank of China, in collaboration with the Gabonese government and the China Road & Bridge Corporation – is set to be finished in 2017. Upon completion, the CFA102bn [€155.5m] roadway will include two 5-km bridges traversing Gabon’s complex patchwork of inlets, swamps and rivers.

[Oxford Business Group 29/11/15]

Lagos

YaoundeBangui

Gemena

Buta

Kisangani

KampalaNairobi

Mombasa

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GhanaTema Motorway To Be Expanded To 6-LanesAccording to Finance Minister, Seth Terkper, the 4-lane Tema Motorway will be expanded to 6-lanes to ease traffic. Presenting the 2016 Budget Statement to parliament, Seth Terkper, said plans are ongoing to construct roads from the Tema port to the Motorway, which links the country’s capital to the industrial city, Tema. Currently, the 19-km highway that links Tema to Accra is in a deplorable state as it is covered with deep potholes.

[Ghanaweb 14/11/15]

LiberiaConstruction Work Begins On Ganta RoadThe Senegalese road Construction film, Compagnie Seheliemae d’Entreprises [CSE], has started construction work on the much-talked-about Ganta-Sanniquellie Road estimated at a cost of US$40 million. At present, CSE’S earthmoving equipment is clearing the road. The construction has been planned since 2007, but due to the global economic downturn and the outbreak of Ebola the project was delayed.

[Observer 08/12/15]

NigeriaPlanned Toll RestorationThe Nigerian Institution of Highway Engineers [NIHE], a section of the Nigerian Society of Engineers [NSE], has shown support for the government’s proposed restoration of road tolls to fund maintenance and construction of road infrastructure in Nigeria. NIHE appealed to members of the National Assembly to consider passing a proposed road sector reform bill, noting that if passed, it would attract viable alternative funding portfolios to build and maintain the country’s road infrastructure.

[This Day 10/12/15]

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Benin / NigerDispute Over Rail Rights Impact BluelineThe US$2.15 billion Blueline rail scheme, being built by Bollore is caught up in a legal action, initiated by a rival firm shortly after the group hired banks to prepare for a Paris bourse listing of the regional project. Rival French firm, Geftarail, and its Nigerien subsidiary filed a lawsuit on November 5th with the International Court of Arbitration in Paris seeking to block work on a section of what would be one of Africa’s biggest infrastructure projects. The defendants in the suit are the governments of the 2-countries, not Bollore itself, although if the action is successful its project would be affected.

The dispute concerns rival rail schemes for Benin and Niger. Geftarail says it has held the rights to build a rail network linking Benin, Niger and Burkina Faso since 1999 and is reportedly interested in setting up a consortium with Bollore. The Blueline will eventually link Cote d’Ivoire, Burkina Faso, Niger, Benin and Togo by a 3,000-km rail loop. The Niger-Benin part of the line is known as the “backbone” of the project.

[Reuters 18/11/15]

Petrolin Group Wins AppealThe Petrolin group led by Samuel Dossou has won an appeal against Benin and Bolloré. In a judgment of 19th November [No. 11 / RC / 2015], the Cotonou Court of Appeal ordered a halt to the rail work undertaken by the Bolloré group between Benin and Niger being carried out under l’OCBN [Organisation Commune Bénin-Niger] A penalty of €152,000 p.day is in place. Petrolin began court proceedings in Benin last year against Bollore and the Benin government, which have since begun building a section of the line through their joint venture Benirail.

The issue is complicated by a third rival rail scheme. Geftarail, a French company, also claims to have won the right to develop a Benin-Niger link as part of its Africarail project linking several countries in the region. A few weeks ago Geftarail and its Niger subsidiary filed a lawsuit at the International Court of Arbitration in Paris against the Benin and Niger governments, demanding work on the Niger-Benin section of Bollore’s project be halted.

[Jeune Afrique 20/11/15]

CameroonCameroon Overhauling Rail SectorThe ministry has proposed budget of FCFA 8.3 billion in 2016 for the development and rehabilitation of transport infrastructure. The ministry intends to finalise feasibility studies on the extension of the line from Ngaoundere to Ndjamena in Chad as well as carry out renovation works of railway lines of Douala-Kumba and Panga-Ngaoundere.

[Tribune 01/12/15]

The railway loop consists of 2-main routes: - East link covering the axis linking Cotonou-

Parakou-Dosso-Niamey - West link for Abidjan-Ouagadougou-Kaya-Niamey

[with Dori-Assongo ramp] - The total length of the loop is 2970 km - 1176 km of new construction / 1794 km of

existing network to be rehabilitated

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NigeriaBuhari Negotiates Railway Projects With Chinese Leader President Muhammadu Buhari pledged in Johannesburg, South Africa that his administration will take necessary actions to correct lapses which have hindered the implementation of agreements signed with China under past administrations for the development of rail transportation in Nigeria. Buhari was speaking at bilateral talks with President Xi Jinping at the Forum of China-Africa Cooperation [FOCAC]. Projects discussed included the “three networks” - a regional high-speed rail network, highway network, and an aviation network.

The coastal railway project stretches for 1,402 km linking Lagos in the West with Calabar in the East; a project that is expected to be financed with a US$12 billion U Chinese loan and which will create about 200,000 jobs. Another rail project that will be up for renegotiation is the US$8.3bn Lagos-Kano standard gauge modernization project, of which only a segment, Kaduna-Abuja has reached completion stage.

[Eagle 04/12/15]27

WESTERN AFRICARAIL

Page 29: CTBL-Watch - Issue 24 - December 2015 · production of 1.8 million barrels. BENIN - To issue a $166.78m 5-year bond with a 6.25% coupon on Dec. 17 BURKINA FASO - Junior West African

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