ISSUE 23 NOVEMBER 2015 CMA CGM TARGETS AFRICA S LARGEST ISLAND OF MADAGASCAR, NOW OFFERING CTBL SERVICE BETWEEN ANTANANARIVO-TAMATAVE

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1 CTBL-WATCH AFRICA ISSUE 23 NOVEMBER 2015 CMA CGM TARGETS AFRICA S LARGEST ISLAND OF MADAGASCAR, NOW OFFERING CTBL SERVICE BETWEEN ANTANANARIVO-TAMATAVE Full Story On Page 3 DRC Joins Northern Corridor Integration Projects Initiative Ethiopia: Milestone Reached On Ethio-Djibouti Railway Nigeria: President Launches 260KM Super Highway Project

2 CTBL-WATCH AFRICA ISSUE 23 NOVEMBER 2015 Contents 03 Corridor Review 05 African Group News CMA CGM Targets Africa s Largest Island Of Madagascar, Now Offering CTBL Service Between Antananarivo-Tamatave 07 Eastern & Southern Africa Regional: DR Congo Joins Northern Corridor Integration Projects Initiative [NCIPI] / COMESA, Microsoft Sign Deal / Namibia Zambia & DRC Seal Road Deal Botswana: Dry Port Facility Strategically Located Ethiopia: European Union Boosts Road Construction / Milestone Reached On Ethio-Djibouti Railway Kenya: Rehabilitation of Isebania Kisii Ahero [A1] / Rift Valley Railway [RVR] v Standard Gauge Railway [SGR] Mozambique: Border To Open 24 Hours From Mid 2016 / Mozambique Purchases Railway Equipment In China Namibia: New Boards for TransNamib And Roads Contractor Company / B1 Construction Cost Increases Rwanda: World Bank Funding To Promote Cross-Border Trade / Online Portal To Ease Investment Registration, Issuance of EIA Permits / Kagitumba-Kayonza-Rusumo Road / US$26 Million For Border OSBP Upgrade South Africa: Centralised Rail Control Centre / Chirundu Border Post Tanzania: Tazara Flyover Project Inked / TAZARA Gets US$3.4 Million Government Bailout / Railway Gets US$22.4 Million Chinese Lifeline Zambia: Trade and Investment Forum, Launch of Business Council / Link Zambia 8,000 On Course, US$400 Million For Road Construction / Construction Work Begins On Samfya-Kasaba Road / Second Phase Of Road Tolling Launched Zimbabwe: US$2 Billion Harare Road Construction 17 Western Africa Angola: New Tax On Fuels To Fund Road Repairs / CFM Receives 47 New Locomotives Cameroon: AfDB Board Approves Ketta-Djoum Road Development & Yaoundé-Brazzaville Corridor Transport Facilitation Côte d Ivoire: Railway Study Nigeria: President Launches 260KM Super Highway Construction Project / Lagos Metropolis Road Construction Begins 1

3 The African Inland Freight Report Brought to you by CMA CGM Africa Marketing Rachel Bennett Dominic Rawle Website: CMA CGM Marseille Head Office 4, Quai d Arenc Marseille cedex 02 France Tel : +33 (0) Disclaimer of Liability The 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. Events Diary November Agra Innovate Nigeria 2015 (Lagos, Nigeria) rd MED Ports (Casablanca, Morocco) th Intermodal Africa 2015 (Lagos, Nigeria) Agrofood West Africa - 3rd International Trade Show on Agriculture & Livestock, Food, Beverage & Packaging Technology and Food, Beverages & Hospitality (Accra, Ghana) MaroCarne - Red Meat Sector (Casablanca, Morocco) News Briefs Western Africa ANGOLA - The launch of the Multiphasic Pump project will add 30,000bpd to production. Block 17 is one of the largest operated by French Total, with recorded accumulated production of 2 billion barrels in April BURKINA FASO - 14 Presidential hopefuls kicked off election campaigning Sunday to restore democratic rule and choose a successor to Blaise Compaore. Election is on Nov. 29. CAPE VERDE - The Netherlands is to provide 150m to finance public & private projects under a government programme to support the private sector. GHANA - Barry Callebaut has acquired Nyonkopa Cocoa Buying Company Ltd - Nyonkopa is a top-10 private licensed buying company in Ghana. MAURITANIA - Canadian Kinross Gold Corp revived the possibility of expanding its Mauritanian-Tasiast mine but in a 2-step expansion with phase-1 estimated at $290m. SAO TOME & PRINCIPE - Portuguese oil group Galp Energia will make its debut as leader of a consortium for oil exploration in ST & Príncipe holding 45% of Block 6. Eastern & Southern Africa BOTSWANA - Cupric Canyon Capital will approach the market to raise up to $350m, in order to bring its Khoemacau copper and silver mine in NW Botswana into production. The construction of the mine in the Kalahari Copper Belt is set to start in late 2016 with first copper shipment to markets expected in BURUNDI - A US$36m powerline constructed to link the capital Bujumbura to the Ruzizi II hydroelectric dam in Kamanyola in DRC has been opened - will help export surplus electricity to neighbouring countries, or import through the regional interconnection lines. ETHIOPIA - 4-industrial parks to be constructed in the next 2-years cost US$2bn [$500m per park focusing on light manufacturing industry] in Dire Dawa, Kombolcha and Mekelle in the country s North, and Adama in the capital s south. NAMIBIA - Trade deficit widened 50.5% to N$10.5 billion ($740 million) in Q versus a N$5.2 billion shortfall in Q2 - due to rising imports up 22% in Q3 to N$24.5 billion. TANZANIA - Tanzania s new president, John Magufuli, was sworn in, promising to unite the country after a contested vote. 2

4 CTBL AFRICA CORRIDOR REVIEW Eastern & Southern Africa 1 2 Corridor Kenya [Mombasa] -Great Lakes / Uganda / Rwanda / South Sudan Tanzania [Dar Es salaam] - Great Lakes Current Situation The Kampala-Mombasa rail is running well with an estimated transit of 10 days. We also have a new inland reefer solution on this route. Our first trial has been a success. Furthermore we can offer extensive CTBL services throughout Kenya backed by a deal negotiated with Rift Valley Railways [RVR], the operator of the Kenya-Uganda Railways, we are able to offer very competitive and reduced rates to the ICD Embakasi, Nairobi from Mombasa port, Kenya. However due to numerous derailments between Mombasa and ICD Embakasi, RVR has stopped containers with 10% and more imbalance of cargo - can proceed with a survey and the rebalance of cargo. We also offer routes to the North Kivu region in Eastern DRC and connections via Mombasa to Beni, Butembo and Kisangani, all on national route N4. A new reefer solution is available from Nairobi to Mombasa by road. 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 Tanzania [Dar Es salaam] - Copper Belt 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. 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. Mozambique Nacala Corridor New competitive rates available from Nacala to Malawi destinations. 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. 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. 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. 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

5 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 remains open but due to the Ebola crisis the border process and status will be checked on a case by case basis before booking. 3 Cote d Ivoire-Burkina/Mali 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, Mitzicand 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 slow due to congestion and delays at Pointe Noire. 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. Burundi: Temporary Suspension Of Bujumbura CTBL Service Social unrest has further escalated in Burundi. The security situation in Bujumbura and in a number of other provinces has seriously deteriorated. The National Road RN 1, the main corridor to Bujumbura, is no longer safe. Cities of Kabanga, Ngara, Kahama, and Karagwe located North West of Tanzania near the Burundi border and Kigoma corridor are also on high alert with ongoing riots. Therefore, CMA CGM Group has no option than to suspend its CTBL service and no bookings will be accepted to Bujumbura until further notice. We will keep you informed as soon as the Dar-Es-Salaam-Bujumbura corridor is safe to resume services. 4

6 CMA CGM / DELMAS AFRICAN GROUP NEWS CMA CGM Targets Africa s Largest Island Of Madagascar, Now Offering CTBL Service Between Antananarivo-Tamatave CMA CGM has expanded its CTBL services to offer solutions across Madagascar located in the Indian Ocean about 425 km off the East coast of Africa. We can now offer a new inland solution by road between Antananarivo and Tamatave, the island s main corridor for both import and export goods. We offer a transit time of just 2-days. The capital, Antananarivo, lies at a strategic point at the center of the island. Meanwhile the country s principal cargo port is Toamasina Autonomous Port also known as Société de Gestion du Port Autonome de Toamasina (SPAT) or Tamatave in French. Currently 3-Group services call at the islands hub port namely: MOZEX, Mascareignes and our Indian Ocean Feeder Lines offering onward worldwide connections. Asia Mozambique Express: products-services/line-services/flyer/mozex Mascareignes Express: products-services/line-services/flyer/mascar Indian Ocean Feeder 2: products-services/line-services/flyer/iofeed2 5

7 Toamasina Autonomous Port The port is operated by Madagascar International Container Terminal Services (MICTS), a subsidiary of Filipino company International Container Terminal Services Inc for a period of 20-years. The port of Toamasina handles 90% of Madagascar s container traffic and more than 80% of all trade traffic. [ - Imports: Fuel, capital equipment and foodstuffs - Import partners: France, China, South Africa and Singapore - Exports: Graphite, chromite, shrimp, coffee, vanilla and sugar - Export partners: China, France, Indonesia and United States Toamasina: CMA CGM GROUP Owned & Operated Logistics Platform To facilitate exportation of mining products from Madagascar, CMA CGM with CCIS Madagascar offers a new stuffing facility to meet customer requirements. Close to the port, the new platform offers a full range of services including road transportation, storage of goods, container stuffing, custom clearance, and transfer to the port for loading on containerships. - 15,000 m2 - Ore storage capacity: up to 7,000 tons - Container storage: 730 TEUs - Stuffing capacity: 12 x 20 per day - Plus equipment - Bulk road transportation - Storage of goods - Container stuffing - Storage of containers [full & empty] - Customs clearance - Container shipping tes Located on the main road to Antananarivo, just 6 km from the port the facility offers a real opportunity for export customers as it offers new logistical solutions in the region around the city of Tamatave. Contact CMA CGM Inland Services Madagascar SA, Immeuble «Fitarata», 3ème étage, Ankorondrano 101 Antananarivo tnr.draherimandimby@cma-cgm.com / Tel:

8 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS Regional DR Congo Joins Northern Corridor Integration Projects Initiative [NCIPI] The Democratic Republic of Congo [DRC] has officially joined the Northern Corridor Integration Projects Initiative [NCIPI] during the 11th Heads of State Summit held in Nairobi, Kenya on 17th October. DRC s Minister of Transport Justin Kalumba Mwana- Ngongo who attended the summit announced DRC was joining the 4-member alliance consisting of Rwanda, Uganda, Kenya and South Sudan. South Sudan The NCIPI was established following a meeting on 25th June 2013, in Entebbe by Presidents Yoweri Museveni [Uganda], Paul Kagame [Rwanda] and Uhuru Kenyatta [Kenya], to discuss how to cooperate and speed up development in the region. South Sudan joined the initiative shortly after the initiative s establishment. The Nairobi summit was also attended by Ethiopia, Burundi and private sector members from the 4-principle partner-states. Democratic Republic of Congo Rwanda Uganda Kenya The Group lauded DRC s entry in the NCIP calling it a significant development that will lead to consolidation of resources to bankroll the region s ambitious infrastructural projects. Ethiopian representatives at the summit announced it too will join the NCIP in the near future. DRC will reportedly be pushing for the SGR line to be extended to its territory from Uganda, a move that experts say will boost intra-regional trade. [New Times 18/10/15] COMESA, Microsoft Sign Deal The Common Market for Eastern and Southern Africa [COMESA] Business Council has signed a Memorandum of Understanding [MoU] with Microsoft East Africa Limited aimed at accelerating cross-border trade through access to technology. The MoU would promote access to technology to COMESA Member states based on cloud infrastructure focusing on secure deployment of modern information technology. The MoU will encourage the use through the adoption of enabling policies in the areas of cyber security, data privacy and data protection ultimately increasing participation in trade and e-commerce across borders. [Times of Zambia 05/11/15] 7

9 Mozambique/South Africa Border To Open 24 Hours From Mid 2016 The governments of Mozambique and South Africa are working to allow the Lebombo/Ressano Garcia border to be open 24 hours per day to further facilitate the movement goods in what is the main and busiest border crossing between the 2-countries. The decision was made by the Presidents during a State visit by the President of Mozambique, to South Africa. [Macauhub/MO 26/10/15] Namibia New Boards for TransNamib And Roads Contractor Company Cabinet has approved the appointment of Paul Smit to the chairmanship of the board of Transnamib Holdings. Smit will have a mammoth task on his hands to turn around the fortunes of the parastatal that has been inundated with claims of bad management over the years. He will be joined by Elize Angula [vice chairperson], Jantjie Duan, Michael Ochurub, Wiseman Molatzi and Dantagos Naomi Jimmy-Melani. Smit previously served in government as the deputy minister of agriculture, water and forestry. Cabinet also approved the appointment of Fritz Jacobs as chairperson of the Roads Contractor Company [RCC]. Anna Matebele [vice chairperson], Elzevir Gelderbloem, Elsie Skrywer and Melkizedek Uupindi are the other RCC board members. [New Era 05/11/15] 8

10 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS Rwanda/DRC World Bank Funding To Promote Cross-Border Trade Rwanda The Government of Rwanda and the World Bank signed 26th October a financial agreement worth US$26 million to facilitate cross-border trade between Rwanda and the Democratic Republic of Congo [DRC]. The money is part of a US$79 million financial assistance that was approved last month. The funds will support the Great Lakes Trade Facilitation Project, which was designed to reduce the costs faced by traders, the majority of whom are small-scale and women traders, on the borders of the DRC and Rwanda. The project will support the rehabilitation of Kamembe Airport and the improvement of core trade infrastructure and facilities at specific land border crossing points, as well as removing barriers to trade and economic integration. Implementation of the Great Lakes Trade Facilitation Project will reduce non-tariff barriers to intra-regional trade and improve Rwanda s business environment. Rwanda exports more than US$100 million worth of goods to the DRC; therefore, investing in such infrastructure is expected to further enhance the country s external trade. Border crossing points, such as Petite Barrière in Goma, DRC, that averages 20,000 to 30,000 crossings a day, can become major bottlenecks for traders trying to reach potential buyers. [New Times 27/10/15] Online Portal To Ease Investment Registration, Issuance of EIA Permits This month Rwanda launched a new online portal to ease investment registration, issuance of EIA permits - investors can submit applications for the issuance of certificates, and processing of tax exemption requests online. The platform was launched 30th October by the Rwanda Development Board [RDB] and TradeMark East Africa [TMEA]. The new online platform will significantly reduce the processing time by more than half the time investors used previously - from about 2-days to 1-day. It also means that all the processes, which involve screening, site assessments and all other compliances required by RDB, can be tracked by investors. [New Times 28/10/15] Zambia Trade and Investment Forum, Launch of Business Council The Zambia High Commission Pretoria has establishing the Zambia-South Africa Business Council [ZSABC] on 30th October. ZSABC is a formal platform from which both Zambia and South African businesses, together with the governments of both countries can interact. The Business Council is tasked to provide information on investment, export opportunities, create awareness on investment opportunities existing in the two countries, and facilitate business introductions. [Mail 17/10/15] 9

11 EASTERN & SOUTHERN AFRICA ROAD Regional Namibia Zambia & DRC Seal Road Deal Zambia, Namibia and the Democratic Republic of Congo [DRC] have adopted the draft Trilateral Road Transport Agreement to be signed in March 2016 in DRC. The Agreement is aimed at strengthening road transport, road safety and trade facilitation. The aim is to facilitate the smooth flow of cross border road transportation and control the operations of the Walvis Bay, Ndola, and Lubumbashi corridor. Whilst Zambia and Namibia have a Bilateral Agreement, until now the DRC has never been included. [Lusaka Times 08/11/15] Ethiopia European Union Boosts Road Construction The European Union [EU] has pledged 540 million to boost road construction in Ethiopia especially in rural areas over the next 5-years. Ethiopia had 26,000km of roads in 1997 but as of last year it had 100,000km. The proportion of road network in good condition increased from 22% in 1997 to 70% in The EU financial aid comes amid plans from the Ethiopian government to raise Addis Ababa s road coverage to more than 22% by constructing an additional 917km in the current fiscal year. Meanwhile Foreign Minister Tedros Adhanom noted Ethiopia aims to double its road expansion by the end of GTP II period in [CR 20/10/15] Kenya Rehabilitation of Isebania Kisii Ahero [A1] The Government has applied for financing from the African Development Bank [AfDB] towards the cost of the rehabilitation of Isebania Kisii Ahero [A1] road project. Part of the proceeds will be for consultancy services to undertake a Monitoring and Evaluation and Road Safety Audit as managed by the Kenya National Highways Authority [KeNHA]. The project will be run under 2-lots: Isebania Kisii and Kisii-Ahero sections. All tenders close is 11th December. [AfDB 09/11/15] 10

12 EASTERN & SOUTHERN AFRICA ROAD Namibia B1 Construction Cost Increases The projected cost of constructing the B1 dual carriageway between Windhoek and Okahandja has increased by N$95 million due to changes to the design. The road will now have 2-full lanes on both scrapping the initial converging dual and single lanes. The total cost of the project is now estimated at about N$335 million. The project is subdivided into 4-sections to be constructed in phases with evaluations and consultations on-going. In Windhoek, construction work for Section-1, from the intersection of Mandume Ndemufayo Avenue and the Western Bypass T-junction to the intersection of the Western Bypass and Sam Nujoma Drive at Otjomuise is currently in its design stage. Section-2 of the road from the intersection of the Western Bypass and Sam Nujoma Drive in Otjomuise to Brakwater will commence as soon as the design of this section is completed and will cover a distance of 15km. Section-2 of the dual carriageway construction, which is already a dual carriageway between Sam Nujoma Drive and Brakwater where Section One ends, will be repaired to extend its lifespan to 30 more years. In addition to the dual carriageway, upgrading of the Windhoek- Hosea Kutako International Airport road; Windhoek to Rehoboth road; Swakopmund to Walvis Bay road, and the Omuthiya to Ondangwa road into dual carriageways is part of the RA s national programme. The Windhoek-Okahandja road is a crucial component contributing toward the goal of the Walvis Bay Corridor Group that facilitates and promotes transport and trade along its corridors and is the gateway for imports and exports for landlocked countries like Botswana, Zambia and Zimbabwe. [Nampa 03/11/15] Rwanda Kagitumba-Kayonza-Rusumo Road The Government has applied for financing from the African Development Bank [AfDB] towards the cost of rehabilitation and widening works of Kagitumba-Kayonza-Rusumo road [208km], and intends to apply part of the agreed amount for consultancy services for supervision of the project and rehabilitation of milk collection centers and cross border market. [AfDB 09/11/15] Tanzania Tazara Flyover Project Inked Tanzania National Roads Agency [TANROADS] and Japanese Sumitomo Mitsui Construction Company [SMCC], signed an agreement for the construction of a flyover at Tazara Junction worth 101.6bn/-. Works will begin as soon as possible. [Daily News 16/10/15] 11

13 Zambia Link Zambia 8,000 On Course, US$400 Million For Road Construction More than 2,000 km of road network are being constructed under Link Zambia 8000 road project. So far 460 km of roads have been fully surfaced and ready for use with daily progress being recorded on the other projects. However limited funding and access to lines of credit by some contractors had contributed to the slow pace of works in some parts of the country. Meanwhile out of the US$1.25 billion Eurobond issue, US$410 million has been allocated for road construction in Zambia in a bid to boost connectivity in urban and rural areas. [Times of Zambia 21/10/15 & CR 08/11/15] Construction Work Begins On Samfya-Kasaba Road Construction work to upgrade 113km of Samfya-Kasaba road from gravel to bituminous has begun. The road construction project is estimated to cost US$37.57 million with funding from the Government. The contractor is BSBK Limited [Lot 1] and Mota-Engil Engenharia e Construcao Africa SA [Lot 2]. Works include clearing, construction of selected road Embankment Layers, Sub-base and Base Layers and Construction of new bituminous surfacing including shoulders. Works are expected to be complete by January [CR 19/10/15] Second Phase Of Road Tolling Launched Road Development in Zambia [RDA] announced the second phase of road tolling in Zambia has been launched in a bid to increase revenue collection for road maintenance and construction. The project is being undertaken under the National Road Tolling Programme [NRTP]. There are currently 6-toll plazas under construction by Njovu Transport and Shire Construction. [CR 23/10/15] Zimbabwe US$2 Billion Harare Road Construction Minister of Transport, Dr Joram Gumbo, announced that he reconstruction of the Beitbridge-Harare and the Harare-Chirundu highway as a dual road is to be announced in the coming weeks. Works are set to cost US$2 billion and is part of Zim-Asset. Other projects being prepared include the dualisation of the Harare-Nyamapanda highway and Beitbridge-Bulawayo and Bulawayo-Victoria Falls highways. Plans for the renovation of the Beitbridge-Gwanda road through Bulawayo to Victoria Falls road and the Harare- Nyamapanda road are also underway. Improvement of these roads will aid the economy of the country as they connect to Central and East Africa. [CR 15/10/15] 12

14 EASTERN & SOUTHERN AFRICA RAIL Ethiopia Milestone Reached On Ethio-Djibouti Railway 13 The Ethio-Djibouti Railway Project under construction by 2-Chinese companies, recently reached an 87% milestone. The Ethiopian Railway Corporation [ERC] expects completion in the next few months. The 756 km electric-powered railway has been contracted by China Railway Group [CREC] and China Civil Engineering Construction Corporation [CCECC]. The former constructing the Sebeta/Addis Ababa to Miesso section and the latter the section from Miesso to Djibouti port. The project will play a significant role in Ethiopia s import-export trade and as well as in the economic cooperation between neighbours, contributing to regional integration. [Addis Fortune 26/10/15]

15 Kenya/Uganda Rift Valley Railway [RVR] v Standard Gauge Railway [SGR] Kenya and Uganda are spearheading a regional initiative to construct a Standard Gauge Railway [SGR] between the 2-countries which will then be extended to neighbouring landlocked countries. The US$20 billion project, one of the most ambitious and expensive ever attempted in the region, is being built on the premise of relieving road traffic on the already over congested Northern Corridor. This could reduce the cost of freight by more than 70% and increase train speeds to above 100km an hour leading to significantly reducing the transit times. The project is seen as a priority by the Kenyan government with President Kenyatta announcing that works on the first phase of the project between Nairobi and Mombasa are almost 55% complete. However it does beg the question once completed will the new SGR lead to the eventual demise of the century old metric gauge railway concessioned by the 2-governments to Rift Valley Railways [RVR]? A newer faster railway line should in theory attract most of the business from the older and more inefficient line. The reality however might be somewhat different. First, the old line which RVR currently operates, is no longer in the same state that it was when the new shareholders led by Qalaa Holdings of Egypt took over in Investments made in the rail infrastructure and rolling stock have improved performance and reliability levels tremendously. The time it takes for example to move a container by rail from Mombasa to Kampala has fallen by half and for the first time in decades and the trains are running on time. This development has brought renewed customer confidence in the railway and now as much as 10% of the traffic out of Mombasa is being carried by rail double the share of a few years ago. This figure could rise even further with the recent announcement that the company is about to take delivery of the first 120 of 480 new heavy duty wagons which will eventually double its freight carrying capacity. The most likely outcome is that the 2-lines will operate successfully side by side and complement each other because each has its specific advantages and disadvantages over the other. [East African Business Week 01/11/15] Mozambique Mozambique Purchases Railway Equipment In China Mozambican port and railway company CFM has bought 70 carriages and trucks from China to carry passengers and cargo, which will be used on the central and southern rail networks in Mozambique. Thirty-one carriages will be sent to the central region, to operate on the Siena and Machipanda railroads, and the rest will remain in the Mozambican capital, Maputo, to operate on the Chicanda, Goba and Ressano Garcia lines. The carriages that have already arrived in Mozambique and are to be put into immediate service, as will the others as they arrive in the country. [Macauhub/CN/MZ 14/10/15] South Africa Centralised Rail Control Centre A state-of-the-art control centre has opened in the South African province of Gauteng integrating rail traffic management from 35 existing control rooms. The Gauteng Nerve Centre [GNC] constantly monitors over 600 trains in operation every day and can immediately respond to any operating failures, accidents and other incidents. The centre has now become operational with the changeover of railway stations commencing in January [European Railway 14/10/15] 14

16 EASTERN & SOUTHERN AFRICA RAIL Tanzania/Zambia TAZARA Gets US$3.4 Million Government Bailout The Tanzanian government released US$3.4 million towards bailing out the Tanzania-Zambia Railway Authority [TAZARA] as part of recapitalization, specifically for the purchase of fuel, maintenance of the track, repair of Kongolo Quarry and repair of locomotives and coaches. TAZARA runs the railway between Dar es Salaam and Kapiri Mposhi in north east Zambia. TAZARA has a critical role in the economies of Tanzania and Zambia and the 2-governments reiterated their committed to ensure all challenges were addressed permanently. TAZARA s freight volumes have drastically dropped over the last 10 years, with less than 90,000 MT transported in FY 2014/2015, compared to about 630,000 MT in FY 2004/2005 and the 1.27million MT recorded at the peak performance in FY 1977/1978. The drop has been attributed to many years of lack of re-capitalisation and an indebtedness that has been weighing down heavily on the Authority for several years. [East African Business Week 25/10/15] Railway Gets US$22.4 Million Chinese Lifeline China has lent Zambia and Tanzania US$22.4 million to buy locomotives and rolling stock for a railway that carries copper to Tanzania s Indian Ocean port of Dar es Salaam. The new locomotives are expected to uplift the current daily availability of mainline locomotives by 33% to an average of 16 locomotives. The funds are an interest-free loan from the Chinese government to Tanzania and Zambia to support TAZARA. [Reuters 10/11/15] 15

17 EASTERN & SOUTHERN AFRICA OSBP/ICD TERMINALS Botswana Dry Port Facility Strategically Located The Botswana Dry Port facility in Walvis Bay port has become a gateway for effective business opportunities. According to the facility Walvis Bay port is seen as an alternative route from Durban. Turnaround times for offloading vessels is only 12 hours and it takes approximately 48 hours for goods to reach Botswana from Namibia. Furthermore the port is not as congested as Durban. The facility, managed by Sea Rail Botswana a subsidiary of Botswana Railways, is mandated with handling containers and imported vehicles. It is located in 3.6 ha leased by Namibian government. [BOPA 26/10/15] Rwanda/DRC US$26 Million For Border OSBP Upgrade Rwanda has received US$26 million to facilitate trade between the Democratic Republic of Congo [DRC] and Rwanda. The funds assist in improvements on the Kamembe Airport in Rusizi district and to provide efficient and secure flow of commercial vehicles at border crossing points. Resources are part of the International Development [IDA] regional financing of US$79 million approved in September by the World Bank. Improvements to the Rusizi 1 crossing will reduce the time it takes to move across borders and conduct business activities via a one stop border post [OSBP]. [East African Business Week 01/11/15] South Africa/Zambia Chirundu Border Post The Organisation for Economic Cooperation and Development [OECD] noted Chirundu Border Post is now the preferred entry point for commercial traffic into Zambia from South Africa. Since the facility became an OSBP increased efficiency has led to higher traffic flows and saved money for business plying the route. Delays of up to 72 hours have been reduced to under 6-hours. Based on the successes of Chirundu OSBP, Tanzania has this year announced plans to develop their own OSBP through a public private partnership [PPP] initiative. The North-South transport corridor that links South Africa to the North is the busiest transport link in Eastern and Southern Africa. The corridor serves South Africa, the largest African trading partner in the region. Meanwhile Durban port handles a significant proportion of transit traffic for the landlocked states and is also the busiest port in Africa. The corridor connects Botswana, DRC, Malawi, Mozambique, South Africa, Tanzania, Zambia and Zimbabwe and also interlinks to other corridors including the Trans-Kalahari, Beira, Lobito, Dar es Salaam and Nacala corridors. In 2009 there were 13 million tonnes of cross-border traffic in the SADC region. This is expected to increase to 50 million tonnes by 2030 and 148 million tonnes by [Herald 20/10/15] 16

18 WESTERN AFRICA ROAD Angola New Tax On Fuels To Fund Road Repairs Part of a new tax revenue on fuel in Angola will be channelled into the Road Fund, intended for the implementation of the National Programme for Conservation and Maintenance of Roads, according to a presidential decree. The decree, approving the statute for the fund, stipulates that 25% of the revenue of the new 5% tax on fuel prices, which has yet to be set, will be consigned to financing the Road Fund. The reconstruction of hundreds of kilometres of roads destroyed by civil war is a priority set by the government for national reconstruction projects underway since [Macauhub/AO 05/11/15] Cameroon/Congo AfDB Board Approves Ketta-Djoum Road Development & Yaoundé- Brazzaville Corridor Transport Facilitation The Board of Director of the African Development Bank Group [AfDB] met in its ordinary session on October 21, 2015 in Abidjan, and approved the Ketta-Djoum road development and Yaoundé-Brazzaville corridor transport facilitation project-phase 2, with a view to boosting economic and social development and regional integration in the Economic Community for Central African States area [ECCAS]. The estimated project cost is US$424 million and comprises road works, ancillary infrastructure, transport facilitation, transport sector studies and institutional support, biodiversity support, and project management. This road project is an important segment of the highway linking the capitals of Congo [Brazzaville] and Cameroon [Yaoundé] that will directly benefit road users and communities within the project area. Apart from developing trade between the 2-countries, the project will additionally contribute to the consolidation of regional integration in Central Africa by facilitating highway interconnections linking Cameroon, Congo, the Democratic Republic of Congo [DRC], Gabon, Equatorial Guinea and the Central African Republic [CAR]. [AfDB 22/10/15] Nigeria President Launches 260KM Super Highway Construction Project Lagos Metropolis Road Construction Begins President Muhammadu Buhari witnessed the ground breaking ceremony for a major Super Highway construction project in Nigeria being built by Governor Ben Ayade of Cross River State. The 260km highway sponsored by UK based construction firm Spectrum, will link Ikang deep sea port and the capital Calabar, with towns and villages in the northern part of the state and also reduce travel time significantly. Spectrum is investing 500 million alongside an infrastructure bank under Public Private Partnership [PPP] arrangement. The road will serve as an evacuation corridor for the new deep seaport in Nigeria. The seaport will have a draft of 14m a wall of 680m that will allow for all sizes of vessels to berth. Benue state is also promising to construct a similar highway from Katsina-Ala junction, to its border with Nasarawa state. From there, the Nasarawa state government would then extend it to Abuja and gradually it would get to Chad, Egypt and Morocco. [CR 26/10/15] The Lagos State Government, has committed over US$95 million towards the construction of 114 local roads in Lagos Metropolis as part of a campaign to develop and improve the standards of roads. An invitation for bids for the construction of roads has been issued. Each project to take a maximum of 6-months from the date of commencement. The move is set to boost the economy. [CR 27/10/15] 17

19 WESTERN AFRICA RAIL Angola CFM Receives 47 New Locomotives The Moçâmedes Railways [CFM] in Huíla province received in Lubango, 6-new locomotives and a composition of 41 first, second and third-class carriages, through the National Institute of Angola Railways [Infa], at a ceremony chaired by the Minister of Transport, Augusto da Silva Tomás. The acquisition from China will be utilised on the route linking Namibe-Lubango-Menongue. [APA 08/11/15] Côte d Ivoire/Mali Railway Study On October 15 the Ivorian government signed an agreement for FS Group s engineering consultancy Italferr to plan a 1,000 km railway corridor which would run north from the port of San-Pédro to Bamako, the capital of Mali. Italferr is to undertake a feasibility study for the mixed-traffic line, and would support the government in the subsequent implementation and operational phases. The route would pass through inland mining and agricultural regions, and is intended to encourage economic integration in West Africa. It would provide Mali with a second rail corridor, reducing the landlocked country s dependence on the existing metre-gauge route through Senegal. [Railway Gazette 16/10/15] 18