RETURN TOREPORTS DESK T.O. 34-a

WITHIN RESTRICTED

ONE WEEK

This report is restricted to use within the Bank.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TECHNICAL REPORT

on the

FRENCH WEST AFRICAN RAILWAYS

RETURN TO

RECORDS CENTER ROOMl G8.1Box Na4 4 6t-2

May 24, 1954

Department of Technical Operations

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CURRENCY EQUIVALENTS

l US $ - 175 CFA francs

1 CFA franc . 2 French francs1 CFA franc a 0.57 US cents1 million CFA francs US$ 5,7141 billion CFA francs a US$ 5.7 million

TABLE OF COUTETUS

Chapter Pge

I. Summary 1

II. The French West African Railways -Administration 2Lines 2Equipment 3Shops 4Personnel and Management 4Essentiality and Competition 4Traffic 4Tariffs 5Finances 6

III. Postwar Modernization Program -Background 6Estimated Costs 7Financing Methods 8Evaluation of Program 8

IV. Dieselization Project - 9

V. Estimate of Future Finances 9

VI. Conclusions and. Recommendations - 10

Tables: I - XIII

Maps : French iest Africa

TECHEiICAL REPORTON THE

FRENCH WEST AMRICAIJT RAILWAYS

The present report is based on information given to a Missionto Paris and French West Africa in May-June 1953, and on addi-tional data submitted by the relevant authorities since then.

I.* SlUIv1IRY

1. The French Government has requested a Bank loan to finance thepurchase of 35 diesel locomotives and 34 diesel switchers for theState-owned railroads of French West Africa. The equipment is estimatedto cost $7.5 million equivalent and contracts have been awarded toFrench manufacturers after competitive bids from French, German, andBelgian firms. The oorrower would. be the Central Office for OverseasRrilways, Paris - an agency of the Ministry of Overseas France whichhas the overall financial and administrative control of the railroadsof French West Africa.

2. The proposed purchases of diesel-locomotives and switchers arepart of a railroad modernization program which started in 1947 and willcontinue through 1957. Its obiective is safer, more reliable transportat reduced operating costs, to be achieved by permanent-way improvements,complete dieselization of motive power, a modernized car fleet, and bet-ter telecommunications and repair shops.

3. The entire program is estimated to cost 15.6 billion CFA francs(088.9 million equivalent) from 1947 through 1957. About half thatamount had been spent 'by the beginning of 1953.

4. In addition to this program, the Public ,Iorks Administration ofFrench West Africa is spending 2.6 billion CFA francs ($14.8 millinn)for the cor.struction of a 360 ka extension to the Abidjan-Niger line.

5. The management of the French West African railroads is technical-ly and administratively competent and the properties are run in an ef-ficient manner.

6. The railroads have been earning and are likely to continue earningenough revenues -'o cover their operating expenses, their debt service(including the equivalent of the service on the proposed Bank loan), andmuch of their capital expenditure.

7. The necessary funds for completing the 1947-1957 investment pro-gram would, apart from the requested loan, come partly from loans andgrants by the French Government amd partly froma the retained revenuesof the railroads themselves.

8. The modernization program is sound and realistic. It stresses im-provements designed to increase efficiency and reduce costs rather thanto expand capacity.

2.

9. The replacement of steam locomotives by new diesels should reducetraction cost 50%-60', thus generating savings equivalent to the fullpurchase price of the diesels in 5-6 years. Considering that their use-ful life is at least 12-15 years, they are a sound investment on theirown merits.

II. THE FKUTCH WEST AFRICAN.RAILTWAYS

Admini stration

10. The French Government (through the Central Office for OverseasRailways, Paris) exercises close financial and policy control over theoperating agency, the "Regie des Chemins de Fer de l'Afrique OccidentaleFrancaise", hereafter referred to as the Regie.

11. The present administrati-ve structure is a compromise between along tradition of centralized manacement from Pa±.is and a growing tend-eney toward local autonomy. It dates from 1947 when the Government decid-ed to decentralize the previous control by the Ministry of Overseas France.

12. Administrative powers are at present distributed at various levelsand for particular purposes among:

i) Four regional system directors (day-to-day management).ii) The Regie's Central Administration, Dakar (operational

policy and supervision.iii) The Central Office for Overseas Railways, Paris (overall

financial and administrative control).iv) The Ministry of Overseas France, Paris (budget approval).v) The AOF High Commissioner, Dakar (advisory functions).

13. The financial Directive for the Regie stipulates that it has tocover all its expenditures, including all financial charges and adequatecharges for renewals, out of its own revenues. It has to prepare annualforecasts of operating revenues and operating expenses including renewalscharges and financial charges. Additions and betterments are generallyfinanced from the French Governmentts funds for colonial development.New line construction now under way in Upper Volta is financed from thesame source but carried out by the local Public Works Department.

Lines (See Map and Tr'ble I).

14. The Regie-administered lines comprise four separate meter-gaugesystems totalling 3,754 route-km, each serving separate territories:

i) The Dakar-Ki;er line runs 1,290 km East-West across Senegalfrom the ocean port of Dakar to the Niger River port ofKoulikoro. Extended by 390 km of branch lines and by feederroads, it serves all central Senegal; extended by the NigerRiver, it serves the lower Sudan.

3.

ii) The Conaekry-Niger line runs 660 km East-West across FrenchGuinea from the ocean port of Conakry to the interior rail-head of Kankan on the Niger. Its effective reach is extendedby the Niger River and various main roads.

iii) The Abid,an-NiLer line runs 800 km North-South across theIvory Coast from the ocean port of Abidjan to Bobo-Dioulasso in Upper Volta. A 360-km extension penetrating fur-ther into Upper Volta is presently under construction, notby the Regie but as a Public Works project.

iv) The Benin-Nger line runs 440 km North-South in lower Dahomeyfrom the ocean to the interior. The Regie also operates road,river, and wharf services in Dahomey.

Equipment - (See Table II)

15. At the begi-nning of 1953, the Regie owned 25 road-haul diesel-electric locomotives, 232 road-haul steam locomotives, 88 shuntingengines (mostly steam), and 31 diesel rail-cars. 11 the road-hauldiesels are modern engines put into service since 1947. Rolling stockcomprised 3,462 wagons, 305 coaches, and 368 service cars.

16. The equipment on the whole is well maintained. The ratio of un-serviceable locomotives and wagons as reported by the carrier has beenhigh (20%-25% in 1952). Most of the steam locomotives are coal-burners,20-40 years old, and the high unserviceability ratio mainly reflectsover-age vehicles which are expected soon to be replaced by diesels.About 85% of the wagons are prewar vehicles, in fair-to-good shape; therest are new. Most of the unserviceable wagons are old vehicles whichmay soon be scrapped, or vehicles which need not be repaired promptlybecause they are surplus to present traffic requirements.

17. The ratio of unserviceable diesels (5-6 out of 25 in 1952) havealso been higher than normal. A number of temporary factors were toblame; inexperience of engine crews and shop personnel with a new typeof equipment, some construction flaws in initial models, delayed deliv-eries of shop equipment, and accidents due to permanent way defects.However, at the time the Bank mission visited French West Africa themanagement was taking vigorous steps to remedy this, including the pur-chase of additional shop equipment and training of personnel. The ratioof immobilized diesels had already fallen and should be normal by now.

18. For tropical meter-gauge lines carrying light traffic subject towide seasonal fluctuations, the Regie railroads use their equipment in-tensively. The average annual mileage of serviceable engines and cars ishigh and the load factor is 51% for the serviceable wagon fleet and 81%for the servicealble coach fleet.

4.

Shops - (See Table III)

19. Each system has its own repair shop, with separate facilitiesfor steam locomaotives, diesels, cars, and coaches. The shops visitedby the Mission were well organized and efficiently run, despite sometemporary difficulties in servicing the newly-acquired diesels.

Personnel and Management

20. Since the administrative reorganization in 1947, the Regie hasbeen reducing its labor force in an attempt to curtail costs. Employ-ment has diminished 10% in the past five years despite an 85% increasein traffic.

21. The present force totals 15,100 workers, of' whom a third are per-manent employees and two-thirds seasonal labor. All the seasonal laborand most of the permanent staff are Africans who are as a rule, well-trained and competent. About 1,000 tec>inicians, administrative officers,and skilled workmen are French, including 200 employees of the FrenchNational Railways on temporary assignment to the Regie lines.

22. The Regie properties are managed 'by much the same procedures andto much the same standards as the French National Railways. The manage-ment on the whole is efficient and runs the properties well. Close liaisonis maintained with the French National Railways, which assist on manytechnical and administrative matters; e.g., formulating specificationsfor equipment, supervising its manufacture, and testing it on delivery.

Essentiality and Competition

23. The Regie lines are the only mesas of commercial transport in theirservice areas e2cept for some coastal districts with good roads andDahomey with extensive roads but a short railroad line (see Map5 . In thecoastal districts, traffic density is heavy and substantial amounts ofshort and medium-haul freight move by truck.

24. The trucks concentrate on the carriage of high-value goods andperishable prcauce because their operating costs preclude the profitablecarriage of other freight. Like the railroads in many other countries,the Regie lines are thus primarily carriers of long-haul and low-payingbulk freight.

Traffic - (See Tables IV, V, and VI)

25. The Regie lines carry a substantial volume of both freight andpassenger traffic. The Dakar-Niger line alone carries two-thirds of thefreight traffic and half the passenger traffic.

26. About four-fifths of the revenue freight is foreign trade andabout one-fifth internal trade. Most of the imports carried are con-struction materials, equipment, and liquid fuel. Practically all theexports are agricultural produce (especially groundnuts).

27. Because agricultural goods bulk large in the total, freight traf-fic is highly seasonal, and the total amount of equipment needed forthe peak movement cannot be fully utilized off-season.

28. Freight traffic has doubled since the end of the war while pas-senger traffic has increased 25%. Compared with 1937, the Rerie linesare moving 67% more goods but practically the same vrolume of passengers.

29. The postwar increase of freight mainly reflects:

i) A rising demand for ir..ported and local construction mater-ials and for imported equipment in the postwar investmentboom.

ii) A revival of agricultural exports to the prewar volume.

iii) Rising imports of consumer goods.

30. The postrar upswing reached its peak in 1951, followed by declinesof 9g in 1952 and 8% in 1953. The decline was mainly due to a reductionin the investment activities, and also to overstocking during the ini-tial phases of the Korean w,ar. During the first months of 1954 the vol-ume of traffic has been very favorable, and it seems probable that theprevious decline was temporary.

31, Over the next few years it is unlikely that the total volume oftraffic will increase substantially, in view of -

i) the imrtiediate outlook for public works (reduced haulage ofbuilding materials and equipment).

ii) the likelihood that agricultural production will increaseonly slowly through 1957-58.

iii) the improbability of any immediate large increase in consumerpurchasing power; and -

iv) the prospective slow growth of passenger traffic.

32. Looking beyond 1957, traffic should increase gradually as nationalincome grows.

Tariffs

33. Ton-mile charges are scaled more or less to the unit value offreight. Construction materials move at the lowest rates, agricultural

6.

goods at medium-to-high rates, and manufactures at the highest rates.

34. Using the official exchange rate of 175 CFA francs to the dollaror one CFA franc to two French francs, freight charges averaged US 5.3¢a ton-mile at the end of 1952 as follows:

AverageAverage freight charges D-N C-N A-N B-N all lines

- CFA francs per ton-km 5.94 7.65 6.40 7.98 6.25- US¢ per US ton-mile 4.94 6.43 5.32 6.71 5.26

35. The above charges were increased approximately 10% during 1953, andare now twice as high as in France and also high by comparison with othertropical countries. This is so largely because the prices and wages whichhave to be paid by the railways of French West Africa are much higher forexample, than those pe.id in France.

36. Passenger fares appear to be neither unusually low nor high.

Finances

37. The Regie was in a strong financial position on December 31, 1952(see Table VII). Current assets were twice as high as current liabili-ties; outstanding debt was less than 15% of the depreciated value of plantand equipment; and almost all the debt was held 'by the French Government.It is reasonable to assume that no substantial changes have taken placesince 1952.

38. For the period 1947 through 1951 as a whole, the Regie lines earnedenough revenue to cover all their operating expenses, including interestand amortization of debt and renewals charges based on reproduction costs.The financial result over this period, therefore, was in conformance withthe conservative principles set out in the financial directive for theRegie.

39. Heavy nominal losses were incurred both in 1952 and 1953 (TableVIII); these were mainly due to increased renewals charges because of arecent reappraisal of reproduction costs; smaller revenues than expectedbecause of decreased goods traffic; and higher expenses than expected be-cause of wage increases. To avert future losses and thus give effect tothe Regiets obligation to balance its income with its expenditure, freightrates were increased 'by approximately 10% during 1953. This, together withthe growth in traffic over the first months of 1954 may insure a morefavorable result for this year.

III. P0S91ARIA 0DgRNIZATION PROGRAAS

Background

40. The Regie's facilities were in poor condition at the end of the warbecause of prolonged failure to maintain and renew the properties adequately.

7.

To correct these defects an investment program began in 1947, is stillunder way, and is due to continue until 1957. It stresses modernizationof facilities to obtain faster transnort without loss of safety, to as-sure more reliable service, and to reduce operating costs. It concentrateson: - (i) realignment, heavier rail, and some double tracking; (ii) bettertelecommunications; (iii) dieselization of motive power; (iv) a modernizedcar fleet; and - (v) better repair shops.

41. About half the program has already been accomplished. As shown inTable IX, the bulk of the expenditure to date has gone for traction androlling stock to service the whole system (40% of the outlay), and forimprovements of permanent way shops, and telecommunications on theDakar-Niger line (another 40%i.

Estimated cost

42. The total prograa is estimated to cost 15.6 billion CFA francs($88.9 million) exclusive of 2.6 billion CPA francs ($14.8 million) fornew line construction. It includes a 1947-52 investment program nownearly completed (see Tables IX and X), a proposed investment programfor 1953-57 and contemplated renewals outside the formal program (seeTable XI). The 1953-57 program has been approved in principle by theCentral Office for Overseas Railways and by the Ministry of OverseasFrance. The French National Assembly has authorized the 1953-54 expendi-ture under the program, and its approval of the whole program is expectedin the course of this year.

43. The AOF area will be investing in all, 18.2 billion CFA francs($103.7 million) in 10 years, for all railway purposes, including newline construction, as follows:

- biliion CFA francs -1jL7-]J22 13-1957 ' Total

- 1947-1952 investment program 7.8 1.9 ' 9.7- 1953-1957 investment program - 3.8 ' 3.8- Renewals in addition to above _

- Total Regie capital expenditure 7.8 7.8 ' 15.6- PWA expenditure for new lines 1*.9 0.7 2.6

Total 9.7 8.5 ' 18.2US dollar equivalent (millions) 55.3 48.5 ' 103.8

44. All expenditures have been or will be in CFA francs and in Frenchfrancs except for a few US-made diesels which are already in service andhave been paid for. The proceeds of the proposed Bank loan will be usedas described in the following section on fin.ancing raethods.

8.

Financing methods

45. The program has been or will be financed by: (i) grants and loansfrom the French Government; (ii) the Regiets operating revenues (mainlyrenewals charges); (iii) short-term borrowings, and - (iv) the proposedBank loan.

46. All of the Regiets 1947-1952 expenditure to the amount of 7.8billion CFA francs ($44.5 million) has been covered oy governmentalfunds and retained revenues (see Table X). To finance 1953-57 expendi-tures also totalling 7.8 billion CFA francs ($44.5 million) the Frenchwish to borrow the equivalent of 1.3 billion CFA. francs ($7.5 million)from the Bank and propose tc; provide 6.5 billion CFA francs ($37.0million) from their own resources (see Table XII).

47. The proceeds of the Bank loan would be used to pay the full pur-chase price of 35 road-haul diesels and 34 diesel switchers for use onthe Dakar-Niger and Abidjan-Niger lines. international competitive bidsto supply the equipment were submitted by French, Belgian, and Germanmanufacturers. After consultation with the Technical Division of theFrench National Railways, the Central Office acting on behalf of theRegie, awarded the contracts to French manufacturers.

Evaltonofroram

48. The Regiets investment program is well-rounded and realistic. Itsstress on modernization corresponds to the true needs of the French WestAfrican railroads. Its subordination of increased capacity to more effi-cient transport is a sotund approach.

49. The entire projected schedule of 1953-57 expenditure is limited toessentials, except for a few minor elements comprising less than 10% ofthe total outlay.

50. The portions of this schedule which warrant prompt com!nletion in-volve an expenditure of 7.2 billion CFA francs ($41.1 million) for thefollowing purposes:

BillionCFA francs

- Diesels, realignment, and shop equipment chargeable to1947-52 program 1.9

- 69 new diesels to replace remaining steam traction on theDakar and Abidjan lines 1.3

- Realignment and heavier rail on certain sections of theDakar and Aoidjan lines 1.3

- Improved telecommLunications, mainly on the Dakar and Abidjanlines 0.2

- Completion of double tracking close to Dakar 0.4- Renewals of shops, rolling stockp and permanent way to be

paid out of renewals charges

Total 7.2(Source: Tables IX, I, and XI).

9.

51. The proposed expenditure of 0.6 billion CFA francs ($3.4 million)for some additional locomotives and wagons meant to increase capacitycould be deferred (see Table XI) and the necessary financing will beprovided oy the French Government only if the need for this equipmentcan be clearly demonstrated.

IV. DIESTLIZATION PROJECT

52. In all, the Regie lines need 63 road-haul diesels and 55 switchersto replace 3U steam engines in the present fleet.

53. Already on order in France and now being delivered are 28 road-haulengines and 21 switchers charge1ol to the 1947-52 program. Tentativelyscheduled for delivery in 1955-56 are 35 road-haul engines and 34 switch-ers which it is proposed should be financed by the Bank loan. Their pur-chase price totals about Q7.5 million equivalent.

54. The Regie is dieselizing in order to get the best traction at theleast cost. A diesel fleet could haul the present traffic at half thecost of steam traction. Although the new diesels should have a usefulservice life of at least 12-15 years, they can generate enough savingscompared to the steam traction they replace to repay their whole cost in5-6 years.

55. Because of the varying service conditions on the individual linesthe Regie is procuring two different types of road-haul diesels.

V. ESTINA, OF FUT FIIICZS

56. An estimate by the 3pnk's staff (Table XIII) shows that if theprogram is carried out, the Regie lines should have enough earnings inthe years 1953-57 to cover all their operating expenses, pay all theirdebt service, and finance a large part of their capital expenditure.

This estimate assumes a 1% annual increase in traff'ic revenue, a 6% de-cline in ton-mile operating expenses over the period, no further priceor wage increases, and no devaluation of thf. CFA franc.

57. If it is assumed that a Bank loan of $7.5 million is granted, thefinancial requirements .of the 1953-57 investment program would be fullycovered (see Table XII). If necessary the Regie has access to the undrawnportion (amounting to 420 million CFA francs or si2.7 million equivalent)of a short-term loan arranged in France in 1953, and further, part of thescheduled renewals totalling 2.1 billion CFA. francs ($12.0 million) couldbe deferred tNithout any serious effects on operations.

58. If the CFA franc were devalued this would increase the Regie's re-quirements for servicing external debt (including debt in French francs).On the other hand it would increase the immediate resources for coveringlocal currency costs out of French franc allocations. The immediate ef-fects of even a large devaluation could, therefore, be fully offset bya relatively small increase in present tariffs.

10.

59. Modernized and re-equipped, the Regie lines would have ample earn-ings after 1957 for all prospective debt service, unless price and wagesstart rising again because of devaluation or for any other reason. Thiscould reduce earnings sufficiently to require substantial increases infreight rates and passenger fares.

VI. CO1CLUSIONS AND RECOMXNDATI0N$

i) The Regie's modernization program, including the conversionfrom stream traction to diesel traction, is a necessary anduseful program and therefore warrants completion.

ii) The 69 diesel locomotives and switchers costing $7.5 millionequivalent, for which a Bank loan has been requested, are es-sential to the successful execution of the program.

iii) To assure the best use of the equipment proposed to be fin-anced by a Bank loan certain top priority projects listedin Table XI should be carried out as planned; i.e., re-alignment and strengthening of the Negala-Bemako sectionof the Dakar line, realignment and strengthening of theYapo-Agboville section of the Abidjan line, and improvementof telecommunications on both of these lines.

TA3LE I.

Route length of Regie linesearly 1953

(length in km)

Main Branch§ytem lines lines Total

- Dakar-Niger 1,289 390 1,679- Conakry-Niger 662 - 662- Abidjan-Niger 796 38 834- Benin-Niger -ILI 579

3,185 569 3,754

TA3LE II

Motive power and rolling stockof Regie lines early 1953

Dakar- Conakry- Abidjan- Benin-Equipment Niger Niger M Niger Total

- Locomotives:

Diesel 21 2 2 - 25Steam 97 46 67 22 232

- Shunters:

Diesel - - 6 3 9Steam 58 6 11 4 79

- Diesel passengercars 13 5 5 8 31

- Freight cars 1,784 483 735 460 3,462

- Coaches 172 32 66 35 305

- Service vehicles 194 27 77 70 368

TABELE III

Principal workshops of Regie linesearl1y 1953

Location Covered space Number ofSystem of shops (in m ) employees

- Dakar-Niger Thies 20,800 1,200- Conakry-Niger Conakry 9,410 300- Abidjan-Niger Abidjan 16,358 650- Benin-Niger Benin 4,518 300

TA2L4 I-V

Goods and passenger trafficof Regie lines

1951

Tons Ton-km Average length Passengers Passenger-kmSystem (thousand (milon) of haul (km) (thousand) tmillion)

Dakar-Niger 831 377 (67%) 454 2,531 262 (51%)Conakry-I!iger 165 50 ( 9%) 303 603 34 ( 7%)Abidjan-Niger 531 315 (20%) 217 1,211 158 (31%)Benin-Niger 203 20 ( 4%) 99 1,557 __M (11%)

1,730 562 325 5,9O2 513

TA 3BW V

Approximate distribution of revrenuefreight traffic on RIeIes

Million Percent000 tons ton-km of total

- Exports 375 127 26p- Imoorts 357 194 39Z- Local traffic:

Agriculturalproduce 76 42

Constructionmaterials 334 34

Publicrequisitions .. 18

Total localtraffic 435 94 19%

- Imports, exports, andlocal traffic notspecified 213 77 i%

- Total revenue traffic 1,330 492 100%

- Service freight 70350

Grand total 1,730 562

TABLE VI

Goods and passenger traffic ofRegie lines. 192L-1953

Goods Passengers v TotalYear (million tkm) (million passenger-km) (million ton-km)

1924 86 145 1101929 n.a. n.a. 1601933 n.a. n.a. 1131937 302 523 3881942 n.a. n.a. 2621945 252 420 3221946 259 433 3311947 2 281V 3171948 3b 313:/ 4001949 404 442 4781950 453 448 5281951 562 512 6471952 504 525 5911953 464 487 545

a Conversion fector: 6 passenger-km= 1 ton-kmJ Figure reflects a prolonged strike.

TA3LET, VII

Summary analysis of Regie's balancesheet Decemfber 31. 1952

Y4illionCFA francs

Current assets 3,219C0urrent liabilit-es 1.623

1. W.orking capital 1.596

Plant and equipment (written down) 22,316Construction work in progress 3,424Suspense items 103

2. Net property 25.843

3. Tangible assets (1 + 2) 27.L39

Fides "debt 2,236Caisse CentraleWidebt 426Other publicly held debt 503Government-owned equity 23,946Suspense items 328

27.439

~/ "FIDES" is the ftmd set up by the French Government tofinance economic and social development in the FrenchOverseas Territories.

b The "Caisse Centrale de la France d'Outre Mer" is theagency set up by the French Government to make loans topublic and private borrowers in the French Union. It alsoadministers Fides.

TA3LE VIII

Regie's income and expense accounts1947 - 1952

(million CFA francs)

-1952 1951 1950 12i2A8 1947Railway revenue:

Freight 3,816.8 3,684.8 2,978.6 2,734.1 2,084.2 720.1Passenger 1,049.1 942.9 784.0 684.5 442.5 326.0Miscellaneous 75.9 _ .8 22.9 21.9 47.2 17.9

4,941.8 41709.5 3,785.5 3,440.5 2,573.9 1,064.0Road, river andwharf revenue 226.8 245.2 621.5 536.0 271.2 169.8

Miscellaneousrevenue 28.4 5.2 __ 1.3 1.3 _ 18.6 -

5,197.0 ".2 t!Q0 38977.8 .863.7 13

Railwag expenditure:

Personnel 2,813.3 2,459.1 1,890.7 1,716.6 1,215.2 695.6Materials andsupplies 1,761.5 1,553.8 1,152.0 1,125.0 709.3 456.0

Miscellaneous 13.2 68.2 54.6 24.2 13.5 -Renewals charges 842.0 610.0 610.0 450.0 243.0 233.6

Total 5,430.0 4,691.1 3,707.3 3,315.8 2,181.0 1,385.2

Road, river and wharfexpenditure (includ--ing renewalscharges) 285.8 272.1 5.5.6 404.6 238.1 174.6

Total eypenditure S.715.82' L.963.2 L.262.9 3,720.4 2,.l L5.528

Total revenue 5,197.0 4,959.9 4,408.3 3,977.8 2,863.7 1,233.8Total expenditure 5.715.8 4.963.2 4,262.9 3,720.4 2419.1 1.559.8

. 518.8 - 3.3 145.4 257.4 444.6 - 326.0Financial charges7 29S 2. 27.6 56.9 20.7 -

Balance - 614.5 210.2 117.8 200.5 421.9 -_2Z6.0

Note: Preliminary figures for 1953 show: Million CFA francsTotal revenues 5,195Total expenditure _5.63 aB lance - 435Financial chargesa/ - 125Balance - 560

a/ Includes'both interest and amortization which are not specified separately./ Includes 75 milllion OFA francs arising out of the transfer from the Regie to a

new administrative agency of two wharfs in Drhomey.c/ Including 900 million CFA francs for renewals charges as compared to 650million CPA francs in 1950 and 1951.

TABLE IX

Analysis of Regiets 1947 - 1952 investmentproeram by tyDe of exoenditure and method of financing

(million CFA francs)

Fides v Advancesgrants from Railwaysand Caisse renewals

±v,es of expenditure loans CentraleAv charges Total- Dakar-Niger:

Continuatior. of realignmentKayes-Bamako to Negala 1,677 _ 775 2,452Double track D-kar-Thies (20 kmm)completion Thies-Rufisque (48 km) 601 - 601Modernization of fixed installa-tions 211 _32 _5Q

2,489 1,107 3,596

_ Abidian-Niper:Continuation of realignment Abid-jan-Agboville (81 km) to Yapo 339 - 176 515Modernization of fixed instal-lations 1L3 238 381

482 414 896

- Conakr -Niger and Genin-Niger:Improvement of permanent way 8 - 171 179Modernization of fixed installa-tions 104 - 132 236

112 303 415

- Traction and rollini stock. all lines:11 steam locomotives 130 - - 13053 diesel locomostives 975 306 373 1,65425 diesel shunters - 84 230 31432 sets of diesel passenger cars 233 - 337 62053 passenger coaches 265 - 124 389

567 wagons 422 106 528

- Total expenditure - Jan. 1947/ 2,075 390 1170 3,635May 1, 1953: 5,158 390 2,994 8,54212/Estirmted rxomeing expnditure for completion of above program _208 - 929 i.1372/

5366 390 3!923 9679

/See footnote on Table VII.bJ Including 7,761 million franc expend#d through the end of 1952 and 781 million

francs expended in the first 4 months of 1953.c1 Mainly for diesels, realignment, and shop equipment.

TA3LE XCapital expenditure under Re-iels 1947-1952

investment progran

Fides&/ Railwaygrants Advances from renewals

Year and loans Caisse Centralev/ charges Total

1947* 89 83 1721948* 519 141 6601949* 563 _ 254 8171950* 1,168 190 424 1,7821951* 1,188 - 776 1,9641952 1.276 200 890 2.366

4,803 390 2,568 7,761

1953* 563 - 999 1,w621954** 356 356

5,366 390 3,923 9,679

USb equivalent:(millions) 30.6 2.2 22.4 55.2

*Actual**Estimated

a/ See footnotes on Table VII

TA'LE XI

Regiets proposed investment programfor 1953-1957

us$Million equivalentCFA francs (million)

I. Improved traffic safett:

Heavier track and realignment, Negala-Br-makosection (61 km) of Dakar line 640 3.7

Improvement of telecommunications, mainlyon Dakar and Abidjan lines 204 1.2

II.Reduction in operating costs:

35 road-haul diesels 1,063 6.134 diesel shunters 225 1.3Heavier track and realiznment, Yapo-Agboville section (16 km) of Abidjan line 275 1.6

Heavier track and realignment, Anoumaba-Tiemelokoro section (22km) of Aoidjan line 330 1.9

III.Increased capacity:

10 diesel locomotives 300 1.7Wagons, 9,900 tons loading capacity 360 2.0Double tracking close to Dakar (22 km) 440 2.4

COpital expenditure to be financed out ofGovernment funds and external borrowing 3,837 21.9

IV.Shop, permanent way, and rolling stockrenewals to be financed out of railwayrenewals charges 2,100 12.0

Total 5,937 33.9

TABLE XII

Estimated sources and disposition ofRegie funds, assuming realization of

1953-1957 investment program(million CPA francs)

Sources 193 I5 1955 1956 1957 Total

Cash balance at start of period 251 166 379 743 658 251Net operating income after debtinterest and before renewalscharges 416 900 935 940 1,200 4,391

Short term loans 300 v - - - - 300Fides grants and loans,1949-52 program 909 - - - - 909

Fides grants and loans,1953-57 program 172 708 895 594 180 2,549

Proposed IBRD loan, 1953-57program _ 576 737 - - 1,313

Other _ - -. _ 425

Total 2,473 2,350 2,946 2,277 2,038 10,138

Disposition

Capital expenditure, 1947-52program2/ 1,562 356 - - - 1,918Capital expenditure, 1953-57programa/ 200 1,355 1,508 594 180 3,837Renewals outside the formal

progran2/ - 100 $00 600 900 2.100

Gross capital expenditure 1,762 1,811 2,008 1,194 1,080 7,855Repayment of short term debt 470 - - 130 170 770Repayment of funded debt 75 160 15 ,295 335 1i.60

Total 2,307 1,971 2,203 1,619 1,585 9,685

Cash balance at end of period 166 379 743 658 453 453

_/ Arranged with "SOFIN" for a total of 780 million CFA francs if necessary (5.1%interest and repayment in 1956-58). "SOFIN" is a cox ortium of banks and manufactur-ers financing sales of railroad equipment.b/ Payments for previous transfer of equipment to other railways, sales of invent-ories, etc./ Amounts and timing as estimated by the Central Office for Overseas Railwpys.

TABLE XIII

Forecast of Regie revenues and expenses1953-57, assuming realization of the in-

vest e.t _o ___M

(million CFA francs)

195a/ 1956 1957 Total

Operatina revenue:

Railway services / 5,380 5,435 5,490 5,545 21,850Road, river and wharf services 2Z65 _265 265 -265 1,060

Total revenues: 5,645 5,700 5,755 5,810 22,910

Operating expenses e cludingrenewals charge eV 4,655 4,655 4,655 4,455 18,420

Net operating incom,e before debtservice and renewals aljarges 990 1,045 1,100 1,355 4,490

Interest on funded debtw 90 110 160 155 515

Net operating income after debtinterest ard before renewalscharges 900 935 940 1,200 3,975

Amortizatio4 pf long and shortterm debts' 160 1952 425 50 1.2g5

Available for capital expendi-ture 740 740 515 695 2,690

Renewals charges as scheduled (900) (900) (900) (900) (3,600)

iBssuming sufficient revenues to cover operating cost as experienced in 1953(less 75 million francs resulting froni deliveries of new diesels, see / (i)below), including depreciation charges and interest on debt.

W Assuming a 1% annual increase in revenues over the period reflecting constantvolume of freight traffic,increa$ed ratic of agricultural goods to buildingmaterials, and normal growQh of passenger traffic.

/ i4ssuming -

i) A reduction of 75 million frarcs a year in traction costs, beginning 1954from tne delivery of 49 new diesels in 1953.

ii) Further reduction of 200 million francs a year beginning 1957 from thedelivery of 54 new diesels in 1955-56.

/ Long and short term dsbts comAitted or planrned (assuming also a D-nk loanof 1,313 million francs repayable over 12 years at 4 with 2 years' grace).

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