AFRICA CTBL-WATCH. Mali: Signs Accord With China For Projects Worth US$11 Billion Full Story On Page 17 ISSUE 9 SEPTEMBER 2014
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1 CTBL-WATCH AFRICA ISSUE 9 SEPTEMBER 2014 Mali: Signs Accord With China For Projects Worth US$11 Billion Full Story On Page 17 Namibia: Oshikango Dry Port At Advanced Stage 12 Ghana: US$9Million Transit 17 Nigeria: Funtua Dry Port 18 Trade Project Takes Off
2 CTBL-WATCH AFRICA ISSUE 9 SEPTEMBER 2014 Contents 03 / Corridor Review 05 / African Group News 09 / Eastern & Southern Africa 17 / Western Africa Top Stories 12 Namibia: Oshikango Dry Port At Advanced Stage 17 Ghana: US$9Million Transit Trade Project Takes Off 17 Mali: Signs Accord With China For Projects Worth US$11 Billion Nigeria: Funtua Dry Port 18 1
3 The African Inland Freight Report Brought to you by CMA CGM / DELMAS Marketing Rachel Bennett Dominic Rawle Website: lhv.marketing@delmas.net CMA CGM Marseille Head Office 4, Quai d Arenc Marseille cedex 02 France Tel : +33 (0) Disclaimer of Liability CMA CGM / DELMAS make every effort to provide and maintain usable, and timely information in this report. No responsibility is accepted for the accuracy, completeness, or relevance to the user s purpose, of the information. Accordingly Delmas denies any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any published information. Conclusions drawn from, or actions undertaken on the basis of, such data and information are the sole responsibility of the reader. News Headlines By Region Eastern & Southern Africa Ethiopia: Addis-Adama Expressway Opens Kenya: Ethiopia, Kenya Road Opens for Traffic / Kenya Secures US$113m For Burundi Road Malawi: US$104 Million AfDB Funding For Malawi Infrastructure Namibia: Oshikango Dry Port At Advanced Stage / More Dual Carriageways On the Cards Rwanda: 50% Of Rwandan Goods Transit Through Tanzania / Rwanda Set to Ease Customs Procedures / Rwanda Plans To Hike Exports By 28% Sudan: China Partnership Key To Khartoum s Highway Project Tanzania: Decongest Tunduma Border / E-Freightex - Freight Exchange Tool Launched / Dar Pushes Single Customs Territory, Rail Efficiency / Rail Authority Seeks More Partners Beyond Trafigura South Africa/Swaziland: Transnet Inks MoU With Landowners For Swazi Rail Link Project Uganda: Railway Deal Officially Terminated - CCECC MoU Western Africa Angola: China Highway To Deliver Moçâmedes Rail In October Ghana: US$9Million Transit Trade Project Takes Off / 60-Tonne Cargo Limit Harms Economy Mali: Mali Signs Accord With China For Projects Worth US$11 Billion Nigeria: FG Ratifies Abidjan-Lagos Corridor Treaty / Funtua Dry Port / Bridge Over Cross River 2
4 CTBL AFRICA CORRIDOR REVIEW Eastern & Southern Africa Corridor Current Situation Kenya-Great Lakes/S. Sudan The Group offers extensive CTBL services throughout Kenya. Our new service to Juba, South Sudan, is running well. Tanzania-Great Lakes Roads from Dar Es Salaam to North Rwanda, Burundi and DRC [Goma / Bukavu / Uvira] are in good condition. Burundi transit times are still impacted due to a deviation to avoid a broken bridge. Trucks are forced to use another route adding an additional 200-km equating to 1-2 days transit. Rwanda, Burundi and Uganda are now part of the EAC single custom territory with Tanzania. A new custom tool in Dar Es Salaam was set up for this evolution directly impacting on the corridor from Dar Es Salaam to Burundi and Rwanda. Delays faced at the start are now back to normal. Tanzania-Copper Belt This corridor has REOPENED! Roads through Mbeya offer a good alternative to the train to Ndola. Traffic is back to normal. The Group is the only shipping line to have its own office in Lubumbashi and thanks to a newly appointed Branch Manager and staff we closely monitor the local situation. The transport corridor from Dar Es Salaam to Lusaka, Copper belt & Lubumbashi is safe and we can offer competitive rates and transit time. Mozambique Nacala Corridor This corridor has REOPENED! All backlogs have been cleared. The Group is in a position to obtain regular allocations and are in negotiations with stakeholder management. CDN the National Rail operator welcomes all bookings. Mozambique Beira Corridor A bond agreement with customs is in place and we have our own broker at our agency office to shorten clearance time and trucking. Mozambique Maputo Corridor Running well. Following an agreement with DPW there is free storage for TBL container. Meanwhile a new corridor is now available from Maputo Hwange [Zimbabwe] by rail. S. Africa Durban We offer very competitive rates to Harare [Zimbabwe] / Lusaka [Zambia] / Gaborone [Botswana]. Namibia Walvis Bay The transport corridor from Walvis-Bay to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well. The corridor is safe and we can offer very good rates. Now also offering Windhoek! 3
5 Western Africa Corridor Current Situation Senegal-Mali All rail congestion has cleared. Furthermore TRANSRAIL has received 8 railway engines which are now fully operational. Both road and rail options are running smoothly with good transits available. Senegal-Guinea Bissau Service is running well. Guinea-Mali Service suspended due to lack of reliable local service. 4 Cote d Ivoire-Burkina/Mali Due to the present difficulties in the evacuation of containers by rail via the Abidjan corridor, we recommend the road option for your shipments to Ouagadougou. This option is working well! Transits to Ouagadougou and Bobo Dioulasso are just 12 days by road. 5 Ghana-Burkina Tema-Ouagadougou service is now available as an additional option. The Tema corridor to Burkina is now the most competitive pricewise, with excellent transit time from Asia with AFEX service. Our expert TBL team is now in place and fully involved for all your booking requests. 6 Togo-Burkina/Niger Service is running well. 7 Benin-Burkina/Niger Operating well. 8 Cameroon-Chad There are currently delays by rail as the operator CAMRAIL is experiencing congestion in both Douala & N Gaoundere stations. We therefore suggest cargo is moved via our road TBL service. Political security is still not 100% on this corridor. 9 Cameroon-CAR Douala-Bangui is SUSPENDED due to the political deterioration in CAR. 10 Gabon Corridor The Libreville-Franceville corridor is SUSPENDED temporarily and will reopen soon. 11 Congo Corridor Pointe Noire-Brazzaville bookings currently SUSPENDED. The corridor is expected to open end of September [delayed from July]. Pointe Noire-Cabinda corridor by road is under test to reopen directly! 12 DRC Corridor Matadi-Kinshasa service running well with transits of 9 days. 4
6 CMA CGM / DELMAS AFRICAN GROUP NEWS Malawi Corridors Open For Business! Last month CMA CGM / DELMAS reopened the Mozambique Nacala Corridor to better serve Malawi. We offer inland connections to both Blantyre and Lilongwe by rail via Nacala port in Mozambique - the deepest natural port on the east coast of Africa. All backlogs have been cleared following congestion and wagon shortage. The CMA CGM Group is in a position to obtain regular allocations and are in negotiations with stakeholder management. Port of Discharge Final Destination Transport Kms Port days Way Transit Terms Nacala Blantyre Rail Nacala Lilongwe Rail Free on rail - rail terminal Free on rail - rail terminal Malawi is emerging from 2-consecutive years of a slowdown in growth. Real GDP growth rebounded to 5% in 2013, from 1.8% in 2012 underpinned by the recovery of growth in agriculture, manufacturing, construction, and wholesale and retail trade. The agriculture sector, which accounts for 31% of GDP, grew by an estimated 5.7% in 2013, driven mainly by the recovery in the production of tobacco and other cash crops. Real GDP growth in 2014 and 2015 is projected to accelerate further to 6.1% and 6.2% respectively. The agriculture sector is expected to grow by 6.5% as tobacco continues to fetch high prices in Malawian kwacha terms and production of other cash crops, such as cotton, oil seeds and legumes, is scaled up through the expansion of irrigation and agriculture support services. Manufacturing is forecast to grow by 5.4%, as consumer demand picks up and the pace of the kwacha s depreciation moderates. The sector will be further boosted by the easing in power supply shortages following the commissioning of the Kapichira II hydropower project. The mining sector is also projected to grow at a higher rate of 9%, boosted by expansion in uranium, coal and lime production. Malawi is a member of the Southern African Development Community [SADC] and Common Market for Eastern and Southern Africa [COMESA] and is signatory to the COMESA Customs Union and the SADC Free Trade Area. It has reduced and aligned its tariffs under SADC furthermore it has committed itself to reducing non-tariff barriers [NTBs] to regional trade. Currently, potential exporters have difficult exporting to neighbouring countries because of the requirements for export licences, and inflexible rules relating to phytosanitary standards. NTBs contribute to the high cost of trade, and hence represent an impediment to Malawi s export diversification efforts. As part of trade reforms, the government of Malawi is currently developing a national NTB elimination strategy based on the national export strategy. The country is developing regional transport corridors and implementing programmes to harmonise trade regimes and transit procedures with neighbouring countries. The development of the Nacala transport corridor with Mozambique [both road and rail] is expected to reduce transport costs significantly and improve connectivity to markets. The government is undertaking trade facilitation measures within the framework of SADC and COMESA. These include establishment of one-stop border posts [OSBP] and creation of a national single window. The latter will reduce the cost of trade through simplification and harmonisation of documents. Malawi will also benefit from regional programmes seeking to harmonise transit management procedures. Malawi is participating in an accelerated programme on economic integration, an initiative agreed upon with Mauritius, Mozambique, Seychelles and Zambia to fast-track regional integration by improving the business regulatory environment, improving trade facilitation, promoting trade in services, eliminating barriers such as permits and licences and removing NTBs. With the growing push towards regional integration and establishment of a free trade area, Malawi needs to implement policies that will enable it compete effectively within the region. The government of Malawi has developed a National Export Strategy [NES], which establishes a road map for building Malawi s productive base to raise exports and reduce demand for imports with the ultimate objective of reducing the trade deficit. The NES identifies three priority export sectors in which Malawi has potential comparative advantage for domestic value addition. These clusters are: i] oil seeds products: e.g. cooking oil, soaps, lubricants; ii] sugar cane products: e.g. sugar, high-value branded sugar, and confectioneries; and iii] other manufactured products, such as packaging. The strategy is to move up the value chain over the longer term. 5
7 CTBL Enquiries For details about our service, bookings and all-in rate enquiries please contact your usual CMA CGM / DELMAS agent. For further service details view our Intermodal Services Africa website [ our-services/ctbl] or scanning the QR code: Mozambique-Maputo Corridor Expansion Hwange, Zimbabwe Now Offered A new corridor is now open for bookings from the Mozambique seaport of Maputo to Hwange in Zimbabwe by rail. Hwange is situated in the Matabeleland North Province, in northwestern Zimbabwe, close to the border with Botswana and Zambia and lies on the railway line from Bulawayo. Due to negotiations by our local agency a deal with the local rail company means we can now shave 14 days off the transit times bringing the total transit time down to just 10 days. Hwange and the surrounding areas are a centre of industry. The Hwange Colliery is the largest in the country with coal resources found at the Wankie, Lubimbi and Sessami-Kaonga coal fields. China for one is making significant contributions to the development of the energy and mining sectors in Zimbabwe and has invested heavily in the refurbishment of the Hwange Thermal Power Station. This installed power is expected to go a long way in boosting the region s economy and industry. China is also helping to add value to the regions raw materials by promoting the export of processed coal. CMA CGM / DELMAS also offer a TBL service from Maputo to the capital Harare, a trade centre for tobacco, maize, cotton, and citrus fruits. Manufactured goods include textiles, steel and chemicals, and gold is also mined in the area. For rates, bookings and enquiries please contact Ethel Zvinodavanhu CMA CGM Zimbabwe on hre.ezvinodavanhu@delmas.com Hwange Harare Port of Discharge Destination Country Final Destination Transport Kms Port days Way Total TT Terms Maputo Zimbabwe Hwange Rail Maputo Zimbabwe Harare Rail Maputo Corridor Rate Improvement Free on rail - rail terminal Free on rail - rail terminal Following negotiations with the management of Dubai Ports World [DPW] at the port of Maputo, Mozambique, our local agency has agreed that no port storage will be invoiced by DPW to CMA CGM / DELMAS for TBL import containers. This is subject to CMA CGM Maputo sending notice 15 days prior to the vessel discharge to both DPW and Portos e Caminhos de Ferro de Mocambique [CFM] for long range wagon planning. This move now makes the rail option more interesting with additional benefit of cheaper rates than by road to both Harare and Hwange in Zimbabwe. 6
8 CMA CGM / DELMAS AFRICAN GROUP NEWS Kenya/DRC Corridor Expansion New Connections Offered To Beni, Butembo & Kisangani CMA CGM / DELMAS have opened new routes from Kenya to the North Kivu region in the eastern Democratic Republic of the Congo [DRC]. New connections offered through the port of Mombasa include Beni, Butembo and Kisangani. Port of Discharge Destination Country Final Destination Transport Kms Port days Way Total TT Terms Mombasa DRC Beni Road Mombasa DRC Butembo Road Mombasa DRC Kisangani Road Free on truck - door Free on truck - door Free on truck - door This move complements our existing TBL service to the North Kivu region by road to Bukavu and Goma via the port of Dar Es Salaam in Tanzania. Port of Discharge Dar Es Salaam Dar Es Salaam Destination Country Final Destination Transport Kms Port days Way Total TT Terms DRC Bukavu Road DRC Goma Road Free on truck - door Free on truck - door For rates, bookings and enquiries please contact Antoine FOLLIOT, CMA CGM Kenya Ltd on mob.afolliot@cma-cgm.com Butembo Goma Kisangani Mombasa Dar es Salaam Bukayu 7
9 CTBL Enquiries For details about our service, bookings and all-in rate enquiries please contact your usual CMA CGM / DELMAS agent. For further service details view our Intermodal Services Africa website [ our-services/ctbl] or scanning the QR code: SHAKA Service Offers Asia Competitive Inland African Corridor Connections Reliable/Cost Effective Routes Via South African Ports Of Durban / Coega The CMA CGM / DELMAS SHAKA service connects Asia with South Africa. The service offers dedicated weekly links to the South African ports of Durban and Coega providing full coverage of all major ports in North China, North East Asia and South East Asia by a seamless relay at the Group s hub in Tanjung Pelepas. By utilizing the ports of Durban and Coega a dedicated TBL service is offered by road and rail to the land locked African countries of Zimbabwe, Zambia, Malawi, Lesotho, Swaziland, Botswana and the Democratic Republic of Congo [DRC]. Competitive rates are available with no Detention & Demurrage [D&D] charges up to delivery and no container deposits are required. We offer particular discounts on the Harare [Zimbabwe], Lusaka [Zambia] and Gaborone [Botswana] inland rates. Furthermore both competitive insurance and a Flexcost TBL which provides customers with more flexibilities in terms of splitting of cost are available. For rates, bookings and enquiries please contact Benjamin Coston, dba.bcoston@cma-cgm.com / Sharona Matookchand, dba.smatookchand@ cma-cgm.com / Poobalan Pather, dba.ppather@ cma-cgm.com 8
10 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS Malawi US$104 Million AfDB Funding For Malawi Infrastructure Malawi has secured US$104-million from the African Development Bank [AfDB] in funding for infrastructure projects that include the 4th phase of the multinational Nacala Road Corridor Development Programme. The deal was signed by AfDB country representative for Malawi Andrew Mwaba and Malawi Finance, Economic Planning and Development Minister Goodall Gondwe. Phase 4 will involve the rehabilitation of a 75km road between Liwonde and Mangochi, in south-eastern Malawi, and the establishment of One-Stop Border Posts [OSBP] between Malawi and Mozambique and between Malawi and Zambia. Some of the funds will be used for the development of associated economic services and capacity building for populations living along the corridor and for facilitating cross-border trade among the 3-countries. [Engineering News 05/09/14] Rwanda 50% Of Rwandan Goods Transit Through Tanzania Last year half of Rwanda s imports passed through the 1,500km Central Corridor route through the Rusumo border post utilizing Tanzania s Dar es Salaam port. This route is 200km shorter than the Northern Corridor option through Uganda and Kenya which links it to Mombasa Port. The Tanzania government has also built connecting roads linking Rwanda to Dar-Es-Salaam and made improvements at the port. This has reduced the cost of transportation, the time goods spend to get to Rwanda and enhanced competitiveness. The Tanzania government Big Result Now initiative aims at unlocking the Central Corridor through increasing cargo throughput at the Dar es Salaam Port, increasing cargo movement on rails and reducing travel time made by trucks from the port of Dar es salaam to the borders of Burundi, Rwanda and DRC. Meanwhile drivers have persistently complained of several non-tariff barriers that include roadblocks, weighbridges, corruption and theft that have hindered free movement of labour and goods along the Central corridor. At a recent meeting in Kigali the Tanzanian Transport Minister, Dr Harrison Mwakyembe, has now ordered the reduction of non-tariff barriers and will construct 3-One Stop Inspection Stations at Vigwaza, Manyoni and Nyakanazi which are aimed at easing movement of trucks. Rwanda, Burundi and Tanzania are also developing a multinational rail project from Isaka- Kigali-Keza-Musongati which will link port of Dar-es-salaam to Kigali and Bujumbura. The plan is to reduce the number of days it takes for cargo trucks to move from Dar es Salaam to Kigali, from 3.5 days to 2.5. Currently, it takes about 5-days for cargo to reach Kigali from Mombasa port, which is accessed through Uganda. Rwanda is also fully committed to the Central Corridor Transit Transport Facility Agency [CCTTFA]. CCTTFA was formed in September 2006 to cater for the logistical problems of landlocked countries as part of the United Nations General Assembly Resolution 56/180 [ [EA Business Week 31/08/14] Rwanda Set to Ease Customs Procedures The Rwanda Revenue Authority [RRA] is ready to implement the Single Customs Territory system across the Northern Corridor. The Northern Corridor runs from Mombasa and is the major transport link for Rwanda, Uganda and parts of Burundi. The RRA continues to sensitize traders about this initiative launched last year which is promoting trade in Rwanda, Kenya and Uganda. Traders are able to pay at both Mombasa and Dar-es Salaam port. RRA aims at enhancing Value Added Tax [VAT] invoicing operations and enforcing use of Electronic Billing Machines [EBM] in not only Kigali, but also other trading centres across the country. RRA officials believe this will help widen the nation s tax base. RRA aims at expanding usage of e-services for filing and payment of taxes, enhancing implementation of the electronic window system, and rolling out the gold card scheme in customs. Between July 2013 and June 2014 tax and non-tax revenue amounted to Rwf769billion [US $1 billion] up 15.9% compared to the same period in 2012/13. [East Africa Business Week 18/08/14] 9
11 Rwanda Plans To Hike Exports By 28% A National Exporters Conference has been held to look at ways Rwanda can increase exports by 28% in the next 5-years under a Public and Private Partnership [PPP]. Rwanda is expected to double production in minerals and thus revenue and is looking at improving service delivery. This move would increase exportation so the nation can reach its target under the Economic Development and Poverty Reduction Strategy 2 [EDPRS2]. Rwanda s exportation capacity has been good for the last years though it faced a setback last year because of the low prices on agricultural products exported. EDPRS2 looks at what needs to be done or changed to help promote exportation hence increase on export revenues. Rwanda therefore looks at improving on PPP as one way of achieving such a target. Rwandan exports are projected to grow by 7% in value terms an increase from US$703 million in 2013 to US$751 million for Exports include tea, coffee and minerals. Furthermore Rwanda and the European Union [EU] also reviewed the progress of projects under the 10th European Development Fund [EDF] which started in [East Africa Business Week 18/08/14] Tanzania Decongest Tunduma Border Private sector stakeholders say the government should push for decongesting of the Tunduma border dry port to support Dar es Salaam Port. Congestion at Tunduma, the largest border in Tanzania in terms of volume of transit cargo, makes Dar es Salaam Port unattractive to importers in East and Central African countries. Currently, transit cargo traffic represents 30.4% of total cargo handled by Dar es Salaam during 2013/14 but this could be affected if urgent actions to decongest the border town are not taken. Stakeholders want the government to speak to Zambia to adopt a pre-clearance of goods system or allocate land for the Dry Port. There is also a lot to be done on the Tanzania side. It currently takes 45 days [to and fro] to deliver goods to Zambia, 15 days of which are spent at the Tunduma border. According to the Tanzania Truck Owners Association [TATOA] this costs businesses a lot of demurrage charges with 80% of all transit containers destined to Burundi, DRC, Rwanda, Uganda and Zambia charged demurrage for the delay to bring empty containers to the Dar es Salaam Port. Freight companies are given 40 days to return the containers. If this continues Tanzania is likely to lose business to Walvis Bay port in Namibia. Namibia is currently constructing roads and bridges to facilitate the DRC and Zambia to use Walvis Bay, instead of Dar es Salaam Port. The Tanzania Trade Development Authority [TanTrade] noted talks with Zambian authorities in the past to install a dry port at Nakonde have as yet not materialised. [Guardian 07/09/14] E-Freightex - Freight Exchange Tool Launched E-Freightex, an online freight exchange service, has been launched which allows truck owners to search for advertisements of cargo which need to be transported as well as for freight forwarders to search for available trucks to transport s cargo. According to the Ministry of East African Cooperation, the E-Freightex mechanism will increase the bargaining power of transporters and help them choose the most cost effective routes as all options will be readily available. An E-Freightex sensitisation workshop has been held organised by TradeMark East African [TMEA] and Tanzania Trade Development Authority [Tantrade]. [Guardian 07/09/14] E-Freightex Mechanism - Freight exchanges make it easier for forwarders and shippers with large cargo loads that may not be handled by one carrier to advertise their freight either privately or publicly to a large number of freight operators that are looking for loads. - Allows freight operators to offer vehicle space to small scale cargo holders who most of the time cannot afford a full truck load. - Provides a platform for network wide collaboration e.g. enabling service providers or their associations to communicate freight traffic information to fellow operators or, in case of associations, their members. 10
12 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS Dar Pushes Single Customs Territory, Rail Efficiency In an effort to reduce congestion at Dar es Salaam port, the Tanzanian government has begun improvements to the central railway line including rehabilitating locomotives that will be used to transfer containers to East African Community [EAC] member states. This will go in tandem with the construction of an international standard gauge railway line that will link partner states, including Rwanda, Uganda, Kenya and Burundi as part of implementing a single customs territory which aims at enabling liberalized trade. The move aims to facilitate quick clearance of consignments entering EAC territory through Dar es Salaam port. The government has already rehabilitated 8-locomotives to be used in transporting containers to reduce port congestion and road damage caused by heavy trucks. Furthermore the construction of the 147km rail track from Uvinza in Kigoma region to neighbouring Burundi is expected to start in December which will facilitate the transportation of nickel. The Tanzania Revenue Authority [TRA] noted as part of implementing Single Customs Territory [SCT], petroleum products imported into Rwanda and Uganda through Dar es Salaam port are cleared under the scheme. The move will reduce the cost of doing business by removing some non-tariff barriers, saving time that would have been spent on clearing of consignments at various customs posts. It will also provide a streamlined customs process with no multiple declarations, no multiple security bonds and reduced interventions in terms of road blocks, checkpoints and weigh bridges. Tanzania Port Authority [TPA] has urged neighboring landlocked countries to continue using the Dar es Salaam port and enjoy value for money. The port has significantly improved and efforts were still going on to turn around the facility through modernization. The East African Legislative Assembly [EALA] has called upon the business community to fully exploit the Single Customs Territory [SCT] potential. In the same initiative Tanzania was preparing to deploy customs officials in 4-East African Community member states of Kenya, Rwanda, Uganda and Burundi as one way to implement the Single Customs Territory [SCT], an initiative promulgated by the 5-East Africa Community [EAC] member states in late The move requires each member state to send its customs officials to fellow member states. The Tanzania Revenue Authority [TRA] noted Tanzania is expected to deploy customs officials in other member states starting with Kenya in mid-september. Under the move Rwanda and Burundi have already deployed their officials here a month ago. The SCT initiative is a programme to reduce the cost of doing business by eliminating duplication of processes and unnecessary administrative costs, thereby creating a mechanism for the prevention of smuggling of goods at the regional level. The initiative would also help to reduce risks associated with non-compliance in the transit of goods and enhance application of Information and Communication Technologies [ICT] and information exchange at the regional level. The direct impact of the programme once in operation is that officials would make work easier by introducing electronic monitoring of goods using cargo tracking technology. [Guardian 30/08/14] 11
13 EASTERN & SOUTHERN AFRICA DRY PORTS Namibia Oshikango Dry Port At Advanced Stage In the northern border town of Oshikango, plans to construct a dry port to store exported goods, are steadily moving forward. Once constructed, the dry port will act as storage for containers and bulk goods for the export market, a development which would help increase trade between Namibia and Angola. Assigned by the Ministry of Trade and Industry, the Offshore Development Company [ODC] is implementing the development in Oshikango. The project is at an advanced stage. [Namibian 03/09/14] 12
14 EASTERN & SOUTHERN AFRICA ROAD Ethiopia Addis-Adama Expressway Opens The first toll roll in the country, the Addis-Adama Expressway, has officially opened with 7-payment stations following the establishment of the Ethiopian Toll Roads Enterprise [ETRE]. Users will pay from cents per kilometer depending on the weight of their vehicles to be used to undertake maintenance and ensure safety of the highway. The Expressway connects the central region with eastern and southern parts of the country. [Ethiopian Radio 15/09/14] Kenya Ethiopia, Kenya Road Opens for Traffic After 3-years construction the Yabelo-Mega road that connects Ethiopia and Kenya has been inaugurated and is open for traffic. The road is one of several many projects underway in the country aimed at linking Ethiopia with its neighbours through infrastructure. The project was contracted by a Chinese company costing 740 million Birr. Kenya Secures US$113m For Burundi Road Kenya has secured US$113 million from the African Development Bank [AfDB] for the construction of a 1,550-km transit route from Mombasa to Bujumbura in Burundi, heightening competition between Indian Ocean ports. The road will be 455km shorter than the Northern Corridor [Kenya-Uganda, Rwanda, Burundi, DRC, S Sudan] & 50km shorter than the Central Corridor [Dar es Salaam, Tanzania to Rwanda, Uganda, Burundi and DRC]. The new route will branch off the Northern Corridor at Voi in Kenya, and after crossing into Tanzania at the Taveta border post, it will join the Central Corridor at Moshi. It will then run through Arusha to Singida in central Tanzania and into Bujumbura. According to the Burundi Chamber of Commerce Mombasa port is seen as more efficient in capacity and clearance time than the Dar port. There are also fewer non-tariff barriers on the new route. Meanwhile Tanzania has agreed to pay US$13.13 million to 2,000 residents who will be displaced by the dual carriageway by the end of the year. The Tanzania Roads Network Agency is evaluating tenders and the contractor will be selected by the end of November. [Zegabi 06/09/14] Namibia More Dual Carriageways On the Cards More dual carriageways will be constructed from 2015 to reduce traffic congestion. In addition to the Windhoek-Okahandja dual carriageway currently under construction. The Roads Authority [RA] plans to construct similar roads between Windhoek and the Hosea Kutako International Airport, as well as Windhoek and Rehoboth. Another dual carriageway will be constructed between Swakopmund and Walvis Bay [the salt road behind the dunes] while the main tarred road connecting the 2-coastal towns will be extended. The road from Omuthiya to Ondangwa, proceeding to Ongwediva, will also be extended to a dual carriageway. Consultants are already appointed to design the roads with construction kicking off as soon as all arrangements are in place. [Namibian 04/09/14] 13
15 Sudan China Partnership Key To Khartoum s Highway Project The Western Salvation Highway, linking Sudan s Darfur and Kordofan regions with the capital Khartoum and some neighboring countries, has long been highly expected and thanks to the China-Sudan partnership, that goal will be materialized. The project has been progressing satisfactorily with 60% complete with Chinese contractors engaged in fine consultations. The 1,200 km highway links the 5-states of Darfur, the 3-states of Kordofan and the Sudanese capital Khartoum. It also links Sudan with West and Central Africa, namely Cameroon, Nigeria, Chad and Central Africa Republic. The highway program is funded by a Chinese US$650 million loan and is being implemented by Chinese companies. [Xinhua 08/08/14] 14
16 EASTERN & SOUTHERN AFRICA RAIL South Africa/Swaziland Transnet Inks MoU With Landowners For Swazi Rail Link Project As rail transporters Transnet Freight Rail [TFR] and Swaziland Railway take the Swaziland Rail Link project, which was expected to eliminate non-coal traffic on the export channel from the Mpumalanga coalfields to Richards Bay, into the feasibility front-end loading Stage 3, a MoU has been struck with South African landowners. TFR and Swaziland Railway are currently undertaking detailed engineering and operation studies for the link connecting South Africa and Swaziland. The project was initially formalised in 2012 through the signing of an intergovernmental MoU. Transnet as part of its Market Demand Strategy plans to create a dedicated corridor for general freight and grow export general freight through the Eastern Seaboard ports of Maputo and Richards Bay. [Engineering News 26/08/14] Tanzania-Zambia Rail Authority Seeks More Partners Beyond Trafigura Tanzania-Zambia Railway Authority [TAZARA], which had an early agreement allowing Trafigura Beheer BV to run its own trains on the line, plans to invite bids from a wider pool of potential investors. TAZARA will announce a bidding process for various modes of private participation. Jointly owned by Zambia and Tanzania, the 1,860 km line was built by China with an interest-free loan and has since fallen into a state of disrepair. The company plans to involve private investors in funding and operations in a bid to revamp the line. Impala Warehousing and Logistics International, the Trafigura unit, signed a Memorandum of Understanding [MoU] with Tazara in January to run its own trains on the railway that connects Zambia s copper mines to Dar es Salaam port in Tanzania s commercial capital. [Bloomberg 27/08/14] Uganda Railway Deal Officially Terminated - CCECC MoU A Memorandum of Understanding [MoU] between the government and the China Civil Engineering Construction Corporation [CCECC] for the construction of the standard gauge railway has been officially terminated in light of new findings by government about the feasibility study undertaken. The cancellation has already triggered protests from CCECC. The Chinese firm is preparing to challenge the decision in court. The cancellation paves way for China Harbour Engineering Company Ltd [CHECL] to take over the eastern route. Government is in the process of signing a contract with CHECL to formalize the takeover. In 2012, government signed an MOU with CCECC for the upgrade of the eastern/northern route of the railway, which covers Kampala-Malaba-Tororo-Pakwach and Gulu-Nimule. But in July, the state minister for Works wrote calling for the cancellation of the MOU suggesting CCECC instead handles the western route [Kampala to Kasese and onto the border with Rwanda]. He proposed that the eastern route be taken over by CHECL. CCECC went to court to oppose the swap, arguing that they had already spent billions of shillings on a feasibility study for the eastern/northern route. The court ruled in their favour and stopped the cancellation. Early this month, CCECC through its lawyers Ligomarc Advocates, proposed new conditions that must be met before it undertakes the project. At present the government and CCECC have failed to find common ground. [Observer 27/08/14] 15
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18 WESTERN AFRICA CORRIDOR NEWS Ghana US$9Million Transit Trade Project Takes Off A US$9 million West Africa Transit and Trade Facilitation Project [WATTFP] is set to take off at Anyinasuso, Ashanti Region to facilitate trade and transit within landlocked nations. The project has been awarded to Noyini Commercials Limited with SAI Consulting, in association with BIJOS Consulting Limited Ghana, as consultants. The World Bank project, expected to be completed in 10 months, will help track cargo vehicles from land locked countries like Mali and Burkina Faso that shuttle between Tema and Paga on the international route which passes through Offinso. The project will accommodate the Customs Division of the Ghana Revenue Authority [GRA], to ensure that trucks plying the route have genuine documents and have paid their taxes. [Chronicle 28/08/14] Mali Mali Signs Accord With China For Projects Worth US$11 Billion Mali has signed a string of agreements with China totalling about US$11 billion, most of it intended to finance 2-major railway projects linking the land-locked country to the coast. Mali gave few details on the terms of the 34 agreements but said they included some loans. They coincide with fresh talks with the International Monetary Fund [IMF] to review a programme for Mali and resume aid payments halted this year. The agreements were signed during a 4-day visit by President Ibrahim Boubacar Keita to China from Sept for the World Economic Forum in Tianjin. China typically gives very few details about agreements signed with other countries, especially in Africa. However Mali s presidency noted the biggest of the planned projects was an US$8 billion, 900-km railway linking the capital of Bamako to Guinea s port capital Conakry. Another US$1.48 billion would be used to renovate the Bamako-Dakar railway, linking Mali to the Senegalese capital to the west. Other projects include the construction of a 4th bridge across the Niger river in Bamako and the construction of roads, especially in the north of the country. [Reuters 16/09/14] Nigeria FG Ratifies Abidjan-Lagos Corridor Treaty The Nigerian federal government has approved the ratification of a treaty seeking to establish the Abidjan-Lagos corridor which involves the Republics of Benin, Cote d Ivoire, Ghana and Togo. The objective of the treaty is to facilitate safe and efficient movement of persons and goods, regional and international trade and transport by improving on the road infrastructure and simplifying and harmonising the requirements and controls that govern the movement of goods and persons with a view to reducing transportation costs and transit times. [Leadership 11/09/14] 17
19 WESTERN AFRICA DRY PORTS Nigeria Funtua Dry Port The multi-billion dollar Funtua Dry Port has been commissioned by Idris Umar, Minister of Transport. The facility is the biggest dry port in the North of Nigeria and is part of Government initiatives aimed at decongesting the ports and bringing imports and exports services closer to the people. The project, conceived over a decade ago, is to be operated under a Public-Private Partnership [PPP] between the Government and concessionaires Equatorial Marine Oil and Gas under the supervision of Nigerian Shippers Council [NSC]. The facility relieves competition for storage of goods and customs space at the seaport itself. The goods can also be examined and released by the Nigeria Customs Service [NCS] at the terminals since they have been declared ports of destination by the federal government. They will also be equipped with all the cargo handling equipment needed to handle containers and general cargoes. Funtua is served by a railway station on a branch on the western line of the national railway network and 4-major federal highways: Funtua-Birnin Gwari-Lagos Road, Funtua-Zamfara-Sokoto-Kebbi Road, Funtua- Yashe Road and Funtua-Zaria Road. The town itself a commercial hub, also has close proximity to commercial cities such as Katsina, Kano, Zaria, Kaduna, Minna, Gusau and Sokoto most of them with functional international airports suitable for cargo handling. The presence of an inland container port will further accelerate rapid industrialization and create employment opportunities. [Daily Trust 04/09/14] 18
20 WESTERN AFRICA ROAD Ghana 60-Tonne Cargo Limit Harms Economy Ghana s strict adherence to a 60-tonne limit for transit cargo is pushing haulage companies into neighbouring countries like Benin, Togo and Côte d Ivoire, where they can load up to 68 tonnes. The Shipping Review, a quarterly journal of the Ghana Shippers Authority [GSA], has reported of a significant reduction in transit traffic through the country s seaports as a result of the new axle load policy. Axle load is the acceptable weight of cargo that a truck is allowed to carry, and it is intended to, among other things, prolong the lifespan of roads. The situation has arisen out of the lack of a uniform load limit for truckers in the ECOWAS sub-region. Being able to load more means fewer trips for the same cargo, which is the business sense driving Ghanaian truckers to other destinations. The report therefore called on government through the Ministry of Roads and Highways and the Ministry of Transport to review the limit to be at par with neighbouring countries as a short-term measure to provide a fair and competitive platform to the country s transporters and shippers. Statistics from the Ghana Ports and Harbours Authority [GPHA] show that transit cargo through Tema and Takoradi declined from 1.07 million tonnes in 2008 to 523,609 tonnes in 2009, the year the axle load policy was introduced. There was a further decline to 448,229 tonnes in In 2013, total transit cargo stood at 661,391 tonnes, an increase which, according to the report, is a reflection of the increase in Burkina Faso trade volumes through Ghana. The Ghana Highway Authority [GHA] introduced the 60-tonne axle load regime, but it has been faced with criticism from the various affected players notably the Ghana Haulage Transporters Association [GHATOA] and the Ghana Institute of Freight Forwarders. A 1-day stakeholders dialogue organised by the Ghana Shippers Authority [GSA] and the Borderless Alliance, a private-sector trade-facilitation organisation, in May this year to deliberate on the issue ended without consensus. At the forum, the truckers asked the GHA to increase the maximum load limit to 68 tonnes to enable them to compete effectively and avoid the situation where they would lose business to their West African counterparts. The GSA has called for a harmonised axle load limit for the sub-region to enhance free movement of goods and services. The need for harmonisation is critical. [Ghanaweb 01/09/14] Nigeria/Cameroon Bridge Over Cross River Nigeria and Cameroon have received financing from the African Development Bank [AfDB] toward the cost of the Transport Facilitation Programme on the Bamenda-Mamfe-Ekok-Abakaliki-Enugu Corridor, and intends to apply part of the amount for consulting services for supervision and control of the construction of a new 2-lane bridge over the Cross River at the Cameroon/ Nigeria border at Ekok/Mfum including Approach Roads. The bridge will be jointly owned. Eligible consultants are invited to indicate their interest for a period of 32 months. [AfDB 28/08/14] 19
21 WESTERN AFRICA RAIL Angola China Highway To Deliver Moçâmedes Rail In October Completion and final delivery of the reconstruction project of the Moçâmedes Railroad [CFM], which began in 2006, is scheduled for next October. Reconstruction of the line connecting the provinces of Namibe/Huila and Kwando Kubango included the construction and modernisation of 56 stations, telecommunications systems and lighting along 860km of railway line. The Chinese contractor, China Hyway, is in the final stage with everything pointing to delivery in October after 8-years. The Moçâmedes railroad linking the coastal town of Namibe to Menongue is 860km long including branch lines to the old mining areas of Jamba and Cassinga. [Macauhub 05/09/14] 20
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