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1& j I No. E 50 \'", CONFIDENTIAL This report is restricted to those members of the staff to whose work it directly relates. Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized PRELIMINARY REPORT ON BELGIAN TRANSPORT PROJECTS June 28, 1949 Public Disclosure Authorized Public Disclosure Authorized Economic Department Prepared by Arthur Wubnig TAbLE .0]' COi~TEli!TS PAGE Su'}J,iARY AN)) C01~CLUSIOHS i - ii .AfF ElrDIX A Raih1ay Electrific2tion Project 1 18 APPEi'1DIX.b - Port of Ant"rerp lieequipment Project 19 - 28 APFEl~DIX C - Port of Ghent Reequipment Project 29 - 36 .AFPZi~DIX D - Port of :Brussels Reequipment Project 37 - 42 -i- SU!vwlARY AIm CONCLUSIONS 1. The Belgian lOl'1n request is concerned with transport alone;' i.e. rf.1ilway electrificetion and port reequipment. It covers civil ",orks flS "rell ~s m8.teriels flnd equipment. It postulfl.tes 1949-1951 refllization of each project to be financed. 2. The request totals 4810 million fr~ncs ($109 million). Close to helf, or 2215 million frpncs. is for electrifying various double track roein lines of the Belgian li'ational Railways (SiW.ri). Nore than half t or 2595 million fr8ncs, is to modernize, improve. and expand the ports of Antwerp, Ghent, and Brussels. ). Originally. the Belgians had in mind to borrow 5797 million frpncs ($1)2 million). The original proposal included 4514 million francs for re.ih;ny electrificf'.tion, llJ) million for port reequipment, Bnd 150 million for merchant fleet e~8nsion. They ~~re later modified so as to exclude the merchant fleet project, reduce the electrificB,tion request from 1949-1954 to 1949-1951 realiz8,tion, and ex,~,pnd the :bank's share of p€,:grega.teport investment. 4. The rpilwe.y electrificption project may be deemed to qualify for Bank finAncing in the sense of eliminpting 'l'1esteful cOB"1 consumption, rationalizing solid fuel use, ~romoting labor mobility, reducing r?il trans­ port costs, and promising I'ldequote investment return. Yet some of the lines to be electrified I"re pnt to yield much grep.ter immediate benefits than would others. Relative traffic density is the decisive test. -ii- .5. The port reequipment ,)rojects may be deemed to qU81ify for :dank financing so f~r as they aim a.t better technical efficiency in order to reduce ship servicing and cargo-\-Torking costs. Yet they lJre motivpted by another basic aim as "rell; Le. expansion of capacity in the hope of hee.itier traffic to come. This is a doubtful aim, despite Belgium's big foreiGn exchange incClme from her ports, since they fire already over-equhmed "ri th surplus ca.pe.ci ty and have no clear assurance of greptly-increased work- 10ed. 6. Since the request is for a dollar loan to finance local currency investment, only such nrojects seem to be appropriate for Bank financing as meet severe tests ot urgency end essentislity, of productivity and yield. Any Bank loan for reihTay electrificption might thus be limited to the lines of maximum traffic density in the total 1949-19.51 program. Any :Sank loan for port reequi1)ment might like1,lise be limited to civil \-Jorks and fe.cili ty reneiV'e.ls Biming only to improve operational efficiency. 7. Applying these tests. the :Sank might 1rTell env.isage a lOan of 1860 - 2070 million francs (~42 - 47 million). Both sums measure an irre- ducible minimum of justifiable projects at economic first sight if the bank is at all predisuosed to lend dollars to Belgium for local currency invest- mente The maximum sum assesses project cost per the offiCial belgian request. The minimum sum assesses project cost on the premise of 10% l01rTer prices. 8. Subject to engineering verifica.tion, a prima facie case Can thus be made for: (A) 1075 - 119.5 million francs to electrify the Brussels - Louvain. Drussels - Ghent, and brussels - Ottignies lines of the SNeB. (D) 785 - 875 million francs to renew cranes and loading bridges, to electrify cargo-working equipment, and to improve basins, Wharves, warehouses, and other port facUi ties e.t AnhTerp, Ghent, and Brussels .. APPENDIX A Re.ilway Electrification Project 1. The Belgian Government is asking the Bank to advance 2215 million francs to electrify. 1949-1951. vFrious double track m~in lines of the Societe NationElle des Chemins de Fer' Belges (Sl~CJ3). About 88l.!. million fr~mcs would. be used for the electrifice.tion proper of 21.5 route km. of main line. 396 million fra.ncs to improve. expand. and reequip tracks and yprds. 880 million francs for electrified rolling stock to replace steam locomotives and passenger co a.ches • toen Request for SNC~ Electriflcption. July 1 - 1949 - December 31. _19S1 Brusse1s­ :drusBe1s .... :i:lrussels­ Louvain Ostend Otti€nies lota1 Line Line Line Project (215 km.) (30 kID.) (155 kIn.) ()O km.) Ca,tena.ry lines. tre.nsformer sub­ stations. etc. 75 3)7 90 Signal. current supuly. Bnd te1e­ communicetions equipment 75 247 60 Reequipment, for electric traction, of Louva.in and Liege yards -55. Electrification proper 939 150 150 Track realignmen't alui rela ted ci vll Narks 274 80 85 Exo~nsion and reshaping of Liege and Louvain yards 122 Track and yard improvements 396 109 Electrified rolling stock to repl~ce existing vehicles ..----880 lli.. ill Total 2215 3M 410 19~9 55 20 15 1950 840 ~ 122 160 1951 1230 F 223 235 ~b'l Of which 73 million for louvain end Liege yerds • .::J Of which 104 million for Liege and Louva.in y!?rds. -2- 2. The loan request measures so much of St~ge 2 in ~ wide electrifi- cetion program by the SnCB as can be completed by the end of 1951. Stage 2 contemplP.tes en a.ggreg~te expenditure through 1953-54 of 4514 million frr.ncs of 1Irhich 1588 million to electrify 415 km. of main line double treck. 954 million to improve. exnand, end reequip tracks and y~:lrdst and 1972 million for electrified rolling stock to replace existing vehicles. Stl"ge 2 of SNOB Electrifice.tlon Frogram. 1949 - 1954 - million .E. fro - Brussels­ Brussels­ :Drussels­ Liege. Ostend Namur. brenches, and branches Total ~md yards branches end Yl"rds Project (415··1pn. ) (140 1pn.) (155lpn.) (120 19n,) Ca.tenary lines t transformer sub-stl"tions, etc. 915 310 337 268 Signl"l, current supply end telecommunicptions equipment ..ID -Zl! 24Z ill Electrificetion nroper 1588 581 584 423 Track improvements 78 32 26 20 Str-tion and pbtform improve- ments 318 113 55 150 Grade crossing elimination ~ 41 20 16 5 Expansion and reshp~ing of yerds ill Jll 200 Track end yerd improvements 954 482 97 375 Electrified rolling stock to re:l1ece existing v:ehicles 1972 ...251. 51Q 2!±£ Total 4514 1820 1251 144) Iii SNCB share only, excluding thet of Stete. -3- 3. Stage 2 is the second step in 8 big ~rogram to electrify in the next 10 years about 1500 route km. of the m~:1in double tr~ck lines of the SNCB network. At present. the only electrified stretch is a 45 kID. pessenger line bet\V'een Anhrerp and Brussels. This is essentielly an inter-urben rapid transi t route ,·rhose electrificetion dates back to 1935. :By lete 1949. the Ant'trerp - :i:irussels stretch "Jill be sUD:'Jlemented by several other lines '!:Those electrification, Ste.ge 1 of the program, is now in progress. They ere: (a) a 58 km. freight line bet¥reen :i3russels (Scheerberelt yards) and Ant"rerp (North Stption); (b) a 68 km. passenger-freight line bet'!tJeen Brussels (South Station) end Charleroi including a freight link around :Brussels between the SchaerbelE'k Yrrds (en route to AnhTerp) c>nd the Linkebe·ek Yards (en route to Charleroi). Simultaneously, the North-South Junction joining the North and South Stations in Brussels ~~ll elso be comnleted. This is an underground viaduct for the snecific purnose of through runs by electric trpins streight across brussels. 4. La.te this yet"r, "Jith the completion of Stege 1, the electrified portion of the SlfC.D network \.;ill include: (I") passenger lines ra.dieting from i5russels to Ch~rleroi, from .3russels to Ant,,,,erp; (b) a link for through p~ssenger service behreen Cherleroi I'md Anti-rero vie the i\forth-South Junction; (c) freight lines rt"diating from Brussels to both Anhlerp C'nd Charleroi; (d) a link for through freight service behTeen Antwerp and Charleroi via the Scha,erbeek-Linkebeek -bel t. 5. :By la,te 1954, ,~~ th the com!lletion of Stege 2. the electrified net­ ItTork ,-rill have gro1}m to include new lines: (a) jOining.:: russels 'lrli th Liege via Louvain; (b) joining Anhrern ",1 th ~ie~;e vie e Louvain-Malines link; {c} joining .crussels 1fTi th Ostend pnd the seacof'st via Ghent end :Bruges; (d) joining -4- Brussels ~dth Namur via Ottignies. 6. By lete 1958. '\,d th the comnletion of the entire nrogrBm, the electri- fied r~1il net1l1ork 1IJill comorise 1545rc.ute km. r~dipting out of Brussels to Ant1:'Elrp. to Ostend and the seacoast, to the Luxembourg and French frontiers vie, Namur. to the industrial complex of Oha.rleroi, IJ[ons, and Tournai. Electric trection ,·rill then be operative over ]0;0 of the entire route mileage, 50; of the double tra.ck mileage. Roughly 70-7570 of the SliiCBt s total tre.ffic moves over this network of 1545 km. now electrified (45 kID), under electrificption (125 kID.) or due for electrification in the next 10 years (1375 km.). 7. The aggregpte cost of the S~O~IS entire program is offici~lly esti- ma.ted as roughly 14.2 billion fnncs as follo",s: Nillion 13.
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