CTBL-WATCH AFRICA ISSUE 20 | AUGUST 2015

CMA CGM GROUP EXPANDS CTBL SERVICES Angola: 14 New Landlocked Destinations (Page 5) South Africa – Zambia: New Rail Solution For Copperbelt (Page 7) Kenya – : New Inland Reefer Service (Page 8)

Central Corridor Poised To /Uganda: Mirama Hills Nigeria: Kano To Get Inland Become Regional Trade Hub 09One Stop Border Post Now 24hr 14Container Depot 22 CTBL-WATCH AFRICA ISSUE 20 | AUGUST 2015

Contents

03 | Corridor Review

05 | African Group News

CMA CGM Group Expanding Into Landlocked Angola – Offering 14 New CTBL Services / CMA CGM - Multiparques Join Forces In Promoting Angolan Transport / New: Kenya-Uganda Inland Reefer Service / New: South-Africa-Zambia Inland Rail Solution CMA CGM LOG Launches Website

09 | Eastern & Southern Africa

Regional: Central Corridor Poised To Become Regional Trade Hub / EAC Closer To A Uniform Custom Bond

Ethiopia: Modjo-Moyale Road Corridor / Adama-Awash Extension

Kenya: Treasury Approves Plans To Ease Nairobi Traffic Congestion

Mozambique: 120th Anniversary Of Portos e Caminhos de Ferro de Moçambique [CFM] / Work Begins On Rail Bridge Over Umbeluzi River

Rwanda: Mirama Hills One Stop Border Post [OSBP] Now 24 Hours / DIKKM Railway Seeking Expressions of Interest South Africa: Transnet Gearing Up To Implement ‘Africa Strategy’ / Beitbridge Border To Be Renovated / Sanral Embarks On Eastern Cape Road Projects / Cape Town Main Road Construction 50% Complete / Gauteng Government Launches R295m N14 Highway Upgrade / Sani Pass Road - R840m Needed To Complete ‘Missing Link’ / Construction Of N2 Wild Coast Toll Road

Sudan: Customs Discusses Border Trade & Establishment Of Free Zones In Kassala State

Uganda: Uganda And DRC Discuss Stopping Border Taxes / -Kigali Railway Project Delayed As Focus Shifts To Juba, South Sudan

Zambia: Zambia Prepares For Regional Trade Facilitation / US$243 Million For Tanzania Highway Upgrade / Mongu- Kalabo Road

21 | Western Africa

Cameroon: Batchenga-Ka’a Rail Line Refurbishment

Chad: Road Works To Commence

Ghana: Tema-Paga Road Corridor - Trans Border Checkpoints Spur Complaints / Ghana To Reconstruct The Western Rail Line

Liberia: China To Build Highway

Nigeria: Kano To Get Inland Container Depot / Nigeria To Rehabilitate East-West Road Section

Senegal: Louis Berger Selected For 3rd Phase Of Highway 6 / Senegal Launches Dakar Airport Rail Link Tender

1 CMA CGM Marseille Head Offi ce The African Inland Freight Report 4, Quai d’Arenc 13235 Marseille cedex 02 France Brought to you by CMA CGM / DELMAS Marketing Tel : +33 (0)4 88 91 90 00 www.cmacgm.com Website: www.delmas.com Email: [email protected] Disclaimer of Liability Tweet: @DelmasWeDeliver CMA CGM / DELMAS make every effort to providep and maintain usable, and timely information in this report. No responsibilityp is accepted for the accuracy, completeness, or relevance too the user’s purpose, of the information. Accordingly Delmas denies any liability for any direct, direct indirect or consequential loss or damage suffered by any person as a Rachel Bennett Dominic Rawle 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

Come And Visit Us!

Mozambique: FACIM 2015 Come and visit us at our stand at FACIM 2015 from 31st August to 6th September at the SOGEX Showground, Maputo, Mozambique. FACIM, Feira Internacional de Maputo, is a multi-sectorial trade fair held in Mozambique organized by the Institute for the Promotion of Exports [IPEX]. The event is the largest trade show in the country and seeks to facilitate contact with international exhibitors and stimulate consumption and economic integration across the Mozambique economy.

IPAD Katanga Mining Week CMA CGM / DELMAS will be participating in the 6th edition of the IPAD Katanga Mining Week [Driving large scale mining through innovative technologies on the Copperbelt] at Lubumbashi, Democratic Republic of Congo [DRC] on 20-21st October. The event will focus on the role of the mining industry in the economic growth of Eastern DRC, one of the main areas of copper and cobalt production in the world. During the fair, the Group will promote its intermodal logistic solutions to mining corporations in order to develop outbound volumes from Katanga. CMA CGM / DELMAS offers several corridor routes including Dar Es Salaam, Durban, Walvis Bay, Beira and Mombasa ports. For further information regarding this event please view www.ipad-katanga.com

News Briefs

Western Africa Eastern & Southern Africa

CAPE VERDE KENYA - A new Technical Service Support for Economic Operators - Kenya/Uganda have finally agreed on the route of a has been set up as a “one-stop shop” for entrepreneurs/ planned $4.5 billion oil pipeline from Uganda’s Hoima investors covering foreign trade operations, commercial, district through the Lokichar basin in N Kenya to Lamu licensing and industrial operations. port. Tullow Oil Plc / Oil Corp / Total SA / China’s Cnooc Ltd will all use the pipeline. COTE D’IVOIRE - Government have fixed Oct. 25 as the date for a MOZAMBIQUE presidential election. - IMF projects the economy to grow 7% in 2015 a down from 7.5% due to flood impact. GHANA - A 225MW US$525m wind farm in Ghana is to be NAMIBIA constructed in 2016. The project is owned by Ireland - North River Resources will, as part of a 2-stage based Mainstream Renewable Power. fundraising programme, seek to raise $4m to progress its lead/zinc Namib project to a construction decision. LIBERIA - Equatorial Palm Oil signed an agreement with the SOUTH AFRICA National Port Authority of Liberia to lease land so it can - The European Commission has lifted the 4-year ban on build a palm product export facility at Buchanan 24 m the export of South African fresh ostrich meat into the away from its Palm Bay estate. European Union.

NIGERIA ZAMBIA - The EU has banned export from Nigeria items such as - A US$580m airport construction is to be built in Ndola beans, sesame seeds, dried fish, dried meat, peanut replacing the smaller Simon Mwansa Kapwepwe chips and palm oil until the end of June 2016. Mainly due International Airport. Works to be carried out by Chinese to pesticide residues. Avic International.

2 CTBL AFRICA CORRIDOR REVIEW

Eastern & Southern Africa

Corridor Current Situation 1 ● Kenya [Mombasa] -Great Lakes / The Kampala-Mombasa rail is running well with an estimated transit of 10 Uganda / Rwanda / South Sudan 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.

Our ASEA KENYA service provides direct weekly services from Asia to Mombasa. This enhances our inland solutions to domestic Kenya, Uganda, Rwanda, South & Sudan. 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. 2 ● Tanzania [Dar Es salaam] - Great With a new improved ASEA TANZANIA service we offer direct weekly service Lakes from Asia to Dar Es Salaam enhancing inland solutions to the heart of DRC, Burundi, Rwanda. Roads from Dar Es Salaam to North Rwanda and DRC [Goma / Bukavu / Uvira are in good condition.

Bookings to Bujumbura, Burundi, are available by road via Dar Es Salaam port, Tanzania in around 22 days. Additional charges may apply as a result of post- election tensions on the account of the shipper. 3 ● Tanzania [Dar Es salaam] - Copper Roads through Mbeya offer an alternative to the train to Ndola. We are the Belt only line to have an owned office in Lubumbashi which closely monitors the local situation. The corridor from Dar Es Salaam to Lusaka, Copper belt & Lubumbashi is safe and offers competitive rates and transit times. Our local agent is working with local hauliers to further improve this. With an improved ASEA TANZANIA service we offer direct weekly service from Asia to Dar Es Salaam enhancing inland solutions to Malawi and Zambia. 4 ● Mozambique Nacala Corridor The corridor is running well offering excellent transit times and no congestion. 5 ● Mozambique Beira Corridor We offer new competitive rates for 20’ Beira-Harare (Zimbabwe) by road and by rail. CMA CGM will indemnify clients from further liability should any port storage incur on the units to be railed. 6 ● Mozambique Maputo Corridor Competitive solutions are available to Zimbabwe by rail from Maputo-Hwange. There is no port storage invoiced if shortage of wagons in Maputo. 7 ● S. Africa Durban New competitive rates available to Lusaka & Copperbelt [Zambia], Lubumbashi [DRC] and Gaborone [Botswana]. 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 ready for evacuation. We have also extended our South African inland reefer service from/to the port of Durban to Johannesburg. Extension of all other over border trucking rates. 8 ● Namibia Walvis Bay We can offer a routing solution for export CTBL cargo from Zambia to Namibia. The route along the Trans-Caprivi Corridor links Zambia with the Port of Walvis Bay via the Katima Mulilo bridge border crossing. Export solutions are available from DRC and Zambia to Walvis Bay for dry and reefer equipment.

The corridor to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well. We also offer Windhoek!

3 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. 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 on a request basis. 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.

4 CMA CGM / DELMAS AFRICAN GROUP NEWS

CMA CGM Group Expanding Into Landlocked Angola – Offering 14 New CTBL Services CMA CGM/DELMAS are pleased to offer a brand new intermodal solution serving Angola. We have now opened new landlocked destinations via the 4-main national ports of access: Luanda, Lobito, Cabinda and Namibe. Our inland connections will now serve the cities of Malange, Bela Vista, Catumbela, Benguela, Bahia Farta, Huambo, Lubango, Malongo, Malembo, Yema, Subantando, Buco Zau, Belize and Necuto. All destinations are served by road offered on a 1-2 day transit time. We can also serve the coastal cities of Luanda, Lobito, Cabinda and Namibe up to city limits.

Intermodal Service Strengths - Door to door service with flexibility on paying party [FlexCost] - No demurrage and detention up to final place of delivery - No container deposit at destination - Strong team of local and dedicated professionals to manage all operations, follow-up and sales.

We offer 4-regular liner-services [ASAF, Midas, EURAF 5 and SAMWAF] providing onward connection to all worldwide destinations. We can capitalize on our intermodal expertise, with land infrastructures, ports, terminals and multimodal investments. Furthermore we have a very strong agency network in Angola, with 122 staff working in 5 offices providing expertise on the entire transportation chain. For further information, rates and bookings please contact your usual local agent.

Malembo Buco Zau Belize Necuto Malongo Subantando Cabinda Yema

Bela Vista Luanda Malange

Lobito Benguela Catumbela Huambo Bahia Farta

Namibe Lubango

5 CMA CGM / Multiparques Join Forces In Promoting Angolan Transport Late last year the CMA CGM Group signed an agreement with the Angolan Multiparques Group to develop an integrated logistic platforms in Lobito, Angola. The MoU was signed on December 18th 2014 in Paris by Multiparques’s General Manager Leonel Pinto in the presence of the French and Angola Foreign Affairs Ministers, Mr. Laurent Fabius and Mr. George Rebelo Pinto Chicoti. Multiparques is a key player in Angola’s logistics sector, with its concession to run Luanda’s general cargo port extended to 2045. Lobito is Angola second port, and its location and train transportation connections make it a strategic entry point in West Africa. This not only “ allows Benguela and Huambo – two major Angola cities - service, but also thanks to the new railroad renovation, to link the city to the Democratic Republic of Congo and Zambia Copperbelt mining region to the sea. Those different elements promise the Port of Lobito to a great intermodal future. Alexis Michel, CMA CGM Group Logistics and Reefer Senior Vice President” The new terminal is now operational and will enhance the efficiency and effectiveness of the port’s operations. Such private sector investment will help boost Angola’s trade expansion and revitalize the sector. The move will relieve congestion at the port and also reduce transportation and storage costs. Concurrent with this development state-of-the-art tracking technology, providing a linked and integrated process offers cargo clearance within 24 hours. The service even extends to pre-clearance of imports so that when the cargo arrives, all that’s needed is a stamp, everything else is already done electronically.

Lobito Port is to become a focal point having been modernised and expanded with a container terminal, an ore terminal and a fuel terminal. Work carried out by the China Harbour Engineering Company will see the port’s current capacity of 3.7 million tons of cargo per year will be increased to 4.1 million tons when the Benguela Railway, rebuilt by China Railway Construction, is working at full capacity.

The Angolan government’s project has always involved the reconstruction of the railway. But now it is expanding to include a wider set of infrastructure initiatives designed to support growth and development of areas of high potential. The corridor project also includes the Catumbela international airport with ‘A’ roads and highways to complement. For example in Luau on the border with the DRC a new international airport is also under construction and a container depot and warehouses are to be built soon.

6 CMA CGM / DELMAS AFRICAN GROUP NEWS

New: South-Africa-Zambia Inland Rail Solution A new containerised rail solution is available from Kitwe in the Copperbelt region to Durban port in South Africa. We already have 20’ container units available in Kitwe ready for evacuation. Kitwe is the second largest city in terms of size and population in Zambia and is one of the most developed commercial and industrial areas alongside Ndola and Lusaka. The region has a complex of copper mines on its north-western and western edges including the Mopani, Mufulira, Nkana copper facilities. Our new service targets the movement of copper from the hinterland to the port of Durban in just 10 days for export to international markets. Durban port is served by our MIDAS, Shaka and Rhino Express services offering onward global connections.

Furthermore Kitwe has also experienced massive commercial development with the construction of huge new shopping malls and retail outlets. Our new service would also be ideal for moving FMCG in containers.

7 New: Kenya-Uganda Inland Reefer Service This month we have launched a new inland reefer solution on the Kenya-Uganda rail corridor. Following a successful first trial reefer cargoes arriving at Mombasa can now be moved to Kampala in around 10 days. This new service targets the frozen and chilled foods market.

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 can offer very competitive rates. For further information, rates and bookings please contact you usual local agency office.

CMA CGM LOG Launches Website CMA CGM LOG launched its new website on August 3rd. As the logistics arm of CMA CGM Group, CMA CGM LOG supports customers in all their supply chain management and logistics needs.

It is a 100% subsidiary of the Group entirely dedicated to logistics and Casablanca freight forwarding services offering solutions geared toward the optimization of costs and logistics flow.

CMA CGM LOG has 1,000 employees in 60 countries and is active worldwide through partner agents and currently present in 9-African countries. Each office has local experts who understand your specific needs and can develop a customized logistics solution for any type of goods. Kampala Mombasa Sea or air transport, pre and post-carriage, flow management, storage, packing, customs clearance, CMA CGM LOG’s mission is to offer the full Lusaka range of services that is to be expected from a freight forwarder. Walvis Bay Dar Es Salaam For more information please view the site, which is available in Johannesburg French and English; http://www.cmacgm-log.com Beira Cape Town

8 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

East Africa Central Corridor Poised To Become Regional Trade Hub

An inter-state council meeting of ministers from Rwanda, Burundi, Uganda, Tanzania and DR Congo [DRC] discussed how to make the central corridor, East Africa’s hotbed for trade. The meeting saw ministers approving more than 20 ambitious projects to be jointly implemented by the Central Corridor partners. The highlight being the proposed multi-billion dollar standard gauge railway connecting Rwanda, Uganda, Burundi and DRC to Dar es Salaam port [Tanzania] whose construction is to be launched in August 30th.

To get Dar es Salaam port closer to traders this month will see the port open offices in Rwanda, Burundi and Uganda which will initially be housed in the respective Tanzanian embassies. With Kenya ports authority already running an office in Kigali, renewed efforts to improve trade facilitation on the Northern and Central Corridors is gradually giving way to healthy competition between East Africa’s 2-ports of Mombasa and Dar es Salaam. Such competition will boost regional trade and ease transportation costs and lead to a positive effect on the final prices of goods and services. A good example is the recent launch of block trains bound for Uganda and Rwanda via Isaka-Mwanza and to Burundi and DR Congo via Kigoma, seen as an attempt by Tanzania to reposition Dar es Salaam against an increasingly competitive Mombasa port.

Anchored by Tanzania’s port of Dar es Salaam, the Central Corridor is the principal transport route for the 5-countries but inadequate infrastructure and inefficiency in trade facilitation had pushed the cost of doing business on the course very high for traders. In 2006, the Central Corridor Transit Transport Facilitation Agency [CCTTFC], a multilateral agency was formed to promote the route as one of choice for eastern and central Africa.

However the establishment in July 2013 of the Northern Corridor integration infrastructure projects initiative to smooth Rwanda and Uganda’s access to the Kenyan port of Mombasa posed a potential threat to the future role of Dar es Salam. Ambitious projects on the Northern Corridor, headlined by the standard gauge railway, inspired deep political will kept alive by quarterly meetings of heads of state of the 3-countries plus South Sudan to take stock of their joint efforts. That political will yielded early dividends for Northern Corridor countries including the one network area, a single tourist visa; identity card powered cross-border travel and cosier diplomatic ties among the partners as they jointly work to implement projects.

9 This year has seen a shift. In March President Kikwete attended the 9th summit of Heads of State of the Northern Corridor Integration Projects hosted by Rwanda in Kigali. Impressed by what he observed 2-weeks later he convened the first ever Central Corridor Heads of State summit in Dar es Salam. Since then things have begun to run smoother. A recent meeting in Rubavu was aimed at taking stock of what has so far been achieved ahead of the next presidential summit to be held in August. With a renewed political will there is now an opportunity to see tangible results and unlock potential on the central corridor.

Uganda’s minister of transport Stephen Chemoiko Chebrot, noted more than 95% of Uganda’s trade is via Mombasa port and that an alternative was badly needed as it is prudent to have an alternative in case of instability and to avoid other inconveniences. For Rwanda 70% of its cargo is handled through Dar es Salaam with traders suffering the brunt of inefficiency in trade facilitation. For Burundi nearly 80% of its international trade is handled through Dar es Salaam and in eastern DRC Dar es Salaam is the shortest and most convenient port for trade, the other options are expensive and far hence making them very unreliable. In fact, like the South Sudanese on the Northern Corridor, a key message from DRC was that there has been renewed demands for their country to apply for admission into the East African Community [EAC] to cement benefits from regional integration. Regional observers say that although some of the countries might have frosty geo-political relationships, the central corridor unites them behind a common cause which gives them an opportunity to work together and deepen diplomatic relations.

As a precursor to the ministers’ meeting in Rubavu, senior technocrats from the 5-countries met in Kigali and identified 10-development clusters of which each country was handed 2-clusters to coordinate; Rwanda was placed at the vanguard of ICT and Aviation clusters. Under each cluster, countries then identified potential projects that could be implemented from each of the 10-clusters. Over 20 projects were proposed and will be presented to the Presidents for approval during their planned summit later this month.

In Rubavu, DRC minister of transport who was represented by Justin Kamwanya Kalemuna handed over the chairmanship of CCTTFC inter-state council of ministers to Rwanda’s transport minister Dr Alex Nzahabwanimana. [New Times 03/08/15]

10 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

EAC Closer To A Uniform Custom Bond

The East African Community [EAC] may have a common custom bond by Phased Approach September this year as the bloc races to enhance faster movement of goods Bulk cargo such as fuel, wheat across the five member countries. According to the Kenya Revenue Authority, 1 grain & clinker used in cement this is part of the proposed Regional Customs Transit Guarantee [RCTG], a regime that will ensure authorities in a transit country receive proper payment for Containerised cargo and motor dues and duties for goods passing through their territories. 2 vehicles

The RCTG bonds scheme is designed to fast-track movement of goods under Goods trading within the EAC the customs seals. Value of custom bonds presently vary from one country to 3 another because of different duty rates and valuation of goods.

The RCTG was first introduced in 2012 for 3-countries along Northern corridor - Kenya, Uganda and Rwanda - to facilitate movement of goods from the port of Mombasa to the hinterland. Tanzania joined on April 9, this year. Introduction of uniform bonds for the EAC countries is part of the ongoing implementation of the Single Customs Territory system which was launched in October 2013. The SCT allows for assessment and collection of taxes at the port of entry. Its implementation which is in phases is currently at 50% according to the EAC secretariat. Meanwhile KRA noted all goods will be covered under the system from next year. [The Star 10/08/15]

11 South Africa Transnet Gearing Up To Implement ‘Africa Strategy’

State-owned freight logistics group Transnet will execute its ‘Africa Strategy’ during the current financial year, having already grown cross-border revenues from R1.5-billion in 2013/14 to R2.6- billion in 2014/15. In its recent annual report Transnet noted cross-border revenues remained a modest contributor to overall group revenues, which rose 8% to R61.2-billion in 2014/15. Profits for the year increased to R5.3-billion from R5.1-billion. As a percentage of revenue, the contribution of cross-border activities grew from 2.6% in 2014 to 4.2% in 2015.

The intention is to extend business activities beyond South Africa and to emerge as a leading logistics service provider in sub-Saharan Africa, in line with a strategy adopted by the group’s board in March 2014. Transnet has identified 4-revenue drivers arising from regional integration:

- Increased rail volumes on the Maputo, East-West and North-South corridors - The extension of transhipment hub services to East and West Africa - Increased sales of rolling stock and associated rail maintenance services - Geographic expansion of port, rail and pipeline operations through concession agreements and management contracts

Transnet has positioned the ports of Durban and Ngqura as transhipment hubs servicing East and West Africa. Transhipment containers already account for 22% of total container throughput at its South African port terminals. Total container volumes grew by 1.5% to 4.6-million TEU in 2014/15. Transnet noted it would pursue further transhipment opportunities with ports in Angola, Namibia, Mozambique, Mauritius, Tanzania and Kenya, while its freight railways unit, which had already established joint operation centres in Mozambique, Botswana and Zimbabwe, would seek to grow cross-border volumes and facilitate further regional rail integration. By 2030, it plans to increase its number of satellite offices in the region from 4 to 11, as well as its rail-corridor coverage and shipping feeder network. [Engineering News 03/08/15]

12 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

Sudan Customs Discusses Border Trade & Establishment Of Free Zones In Kassala State

The Sudan Customs Authority has discussed with the Wali [Governor] of Kassala State Adam Gama’a issues including smuggling, border trade, drugs, weapons and encouragement of border trade for the local merchants. The meeting touched on the arrangements for establishment of the free zone and activation of the crossing points on the borders with Eritrea such as Al- Laffa and Awad crossings. [Sudan News 06/08/15] Uganda/DRC Uganda And DRC Discuss Stopping Border Taxes

Uganda and DR Congo officials are in talks aimed at suspending costs levied on small-scale traders who import goods with value less than US$2,000 through Mpondwe Lhubiriha and other common border posts. If they agree, the charges will only be suspended on goods listed under the Common Market for Eastern and Southern Africa [COMESA] Simplified Trade Regime [STR] list of eligible goods. [Monitor 05/08/15] Zambia Zambia Prepares For Regional Trade Facilitation

The Common Market for Eastern and Southern Africa [COMESA] has conducted training workshops for Zambian stakeholders in transit trade to prepare all with knowledge and skills to implement the COMESA Virtual Trading Facilitation System [CVTFS].

The CVTFS is a trade facilitation technology that provides a single electronic platform for processing various transit trade instruments, including transit bonds, cargo tracking, overload control and insurance, among others.

The training also covered the Regional Customs Transit Guarantee [RCTG] scheme, commonly known as the CARNET, which is a customs transit regime designed to facilitate the movement of goods under customs seals in the COMESA region and to provide the required customs security and guarantee to the transit countries.

The CVTFS and RCTG are part of a toolkit of innovative trade facilitation instruments developed by COMESA over the years in line with the Protocol on Transit Trade and Transit Facilities provided in the COMESA Treaty. Under the Treaty, member states are obliged to implement transit and customs measures to remove trade and transport barriers in the region. Countries that are not implementing the scheme require transit goods transporters to take out a customs bond at least equal to the duty which would be payable on their cargo. [Times 12/08/15]

13 EASTERN & SOUTHERN AFRICA DRY PORTS & OSBP

Rwanda/Uganda Mirama Hills One Stop Border Post [OSBP] Now 24 Hours

The Mirama Hills One Stop Border Post [OSBP] linking Rwanda and Uganda is now fully operational on a 24-hour basis. A technical handover of the OSBP to the [URA] was made in mid-July with the official commissioning of the 2-border posts [ in Rwanda and Mirama Hills] to be done by President Paul Kagame of Rwanda and Uganda’s President later in the year.

The refurbished border post contains sections for customs, the immigration department, a goods inspection hall, a clearing agency block and a police post. The facility cost US$7.8 million to construct, financed by TradeMark East Africa and the government. Work started in July 2013 when the site was handed over to the winning contractors after a bidding process, Dott Services Limited. [EA Business Week 19/07/15] South Africa/Zimbabwe Beitbridge Border To Be Renovated

Government has started negotiations with a contractor to revamp the Beitbridge Border Post to improve its efficiency. Beitbridge is the busiest entry point in southern Africa. With increased economic activity coupled with inadequate facilities the post is impeding the smooth flow of traffic. The contractor will be assigned to come up with an entirely new infrastructure from the beginning of 2016 at a cost of US$100 million.

The project will encompass upgrading the road network to and from the bridge, installing a perimeter fence and gate control infrastructure; establishing parking areas and a commercial centre as well as building staff accommodation. It will also include setting up a weighbridge, upgrading the communication and security systems; installing lighting systems, computerisation of the border post and construction of a new bridge. The project will also include measures to strengthen collaboration between the South African Revenue Services [SARS] and the Zimbabwe Revenue Authority [ZIMRA] by harmonising customs systems and procedures. ZIMRA’s information technology also needs to be upgraded to minimise downtime, which adds to delays in processing documentation.

The border post is notorious for slow trade and traffic, resulting in huge costs of doing business. This has been cited as a major constraint to business, inhibiting economic growth in Zimbabwe, South Africa and the region at large. The delays experienced by trucks carrying goods to and from Zimbabwe, Botswana, Zambia, the Democratic Republic of Congo, Malawi, Tanzania and Mozambique, push up transport costs and ultimately the price of consumer goods. It is estimated that more than 400 trucks cross the Beitbridge border post every day and they experience average delays of about 3-days crossing the border. These delays can extend up to a week or two. The implementation of the project would be in line with the objectives of government’s economic blueprint, the Zimbabwe Agenda for Sustainable Socio- Economic Transformation, which runs until 2018. [Financial Gazette 06/07/15]

14 EASTERN & SOUTHERN AFRICA ROAD

Ethiopia Modjo-Moyale Road Corridor

The Ethiopian Roads Authority has invited eligible consultants to undertake a socio-economic baseline and post-completion impact assessment surveys and impact evaluation designed to cover the Modjo-Moyale road, a section of the Mombasa-Nairobi- Addis Ababa road corridor that forms part of the Trans-Africa Highway. To commence January 2016. [AfDB 21/07/15] Adama-Awash Extension

Preliminary studies indicate the 130km Adama-Awash extension of the Addis Ababa-Adama expressway could cost 100 million Br per kilometre to complete. The extension, which could be constructed over the next 5-years. The Ethiopian Roads Authority [ERA] hired Chinese Beijing Expressway Supervision Co. Ltd. and Ethiopian Beza Consulting Engineers Plc which conducted a 2-year study which was delivered this month. The expressway is expected to cut the drive from Adama to Awash by half to just 30 minutes. [Addis Fortune 10/08/15] Kenya Treasury Approves Plans To Ease Nairobi Traffic Congestion

The Kenyan National Treasury has approved plans for a road and railway master project aimed at decongesting Nairobi. The Mass Rapid Transit, a Sh400 million project, will involve the construction of 167km of new roads and railway lines linking the city to several satellite towns. The project is being funded by Japan International Cooperation Agency. The project will see a commuter railway line built along outer Ring Jogoo, Mombasa, Limuru, Lang’ata Ngong Roads and Waiyaki Way. The plan will also see the construction of a rapid bus transit system. [Construction Review 10/08/15]

15 South Africa Sanral Embarks On Eastern Cape Road Projects

State-owned South African National Roads Agency Limited [Sanral] is undertaking 32 projects, totalling R2.2-billion, in the Eastern Cape, this year. Figures indicate that 1,070 km, or 23%, of the national road network of 4, 544 km in Eastern Cape – the province with the most national roads – was being upgraded, preserved or rehabilitated. As part of its 2015 road infrastructure programme Sanral is undertaking projects on the N2, N6, R61, R63, R65 and R67. [Engineering News 03/08/15] Cape Town Main Road Construction 50% Complete

Construction of Cape Town’s main road has reached its half way completion target. Phase-3, the final phase, is expected to be completed in 2017 to include a new road surface, retainment of the wall at Clovelly and underground services. The project is expected to cost US$24.19 million. [Construction Review 30/07/15]

Gauteng Government Launches R295m N14 Highway Upgrade

The Gauteng Government has launched a R295-million project to upgrade the N14 freeway from Krugersdorp to Pretoria. The N14 is a high traffic volume freeway which has degraded over the years and needs urgent rehabilitation. Phase 1 will rehabilitate the road from Hendrik Potgieter Drive near Krugersdorp up to Diepsloot, covering both sides of the freeway. The 18-month long project is scheduled to be completed in October 2016. The N14 upgrade will promote economic development of the western corridor that links Lanseria Airport, the Cradle of Humankind and the North West Province. Phase 2 will eventually link with the N14 with the N1 and is currently in planning stage. [Engineering News 15/07/15] Sani Pass Road - R840m Needed To Complete ‘Missing Link’

Investment of R836.6-million is needed to connect the 19 km stretch of road between the Sani Pass Hotel at the South African border and the Lesotho border to open up a vital Durban–Pietermaritzburg–Lesotho trade corridor. The first phase of the 33-km- long P318 project on the South African side of the border, which starts at Himeville, was completed in September 2012. The Lesotho government, using Chinese funding, will complete the stretch of road from its border to the town of Mokhotlong in October. The remainder is currently restricted to four-wheel drive vehicles. The P318 Sani Pass road is the only road link between KwaZulu-Natal and Lesotho. On completion, it would decrease the traveling distance between Durban and Mokhotlong from 621 km to 304 km. It is estimated that it would take 4-years to complete. [Engineering News 23/07/15] Construction Of N2 Wild Coast Toll Road

It was announced during a public consultation that construction work on the new N2 Wild Coast toll road is expected to begin in 2016 following a positive survey carried out by Sanral. [CR 16/07/15]

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Zambia US$243 Million For Tanzania Highway Upgrade

The African Development Bank [AfDB] has approved loans totalling US$243 million towards the rehabilitation of the 210km Chinsali-Nakonde road connecting Zambia to Tanzania to improve infrastructure and services as well as reduce transport costs between northern Zambia and southern Tanzania. Work also includes rehabilitation of 50km of feeder roads and construction of service stations. The Chinsali-Nakonde road is a strategic national and regional road link that forms a section of both the North- South Corridor, which traverses 8-countries, and the Trans-Africa Highway, running from Cape to Cairo. The road connects northern Zambia to Tanzania, and provides connectivity and access to the sea for landlocked Zambia. It links the port of Dar-es- Salaam in Tanzania to the Copper-belt in Southern Democratic Republic of Congo and Northern Zambia. It also connects the Copper-belt to the southern ports of South Africa. [Construction Index 17/07/15]

Mongu-Kalabo Road

Construction of the US$287 million Mongu-Kalabo Road is 75% complete and the road Development Agency [RDA] is optimistic that the project will be completed in April 2016. The RDA has also issued a pre-qualification for the construction of the 85km Kalabo-Sikongo road and has shortlisted 5-contractors to participate in the bidding process. The 34km stretch runs from Mongu town to Tapo in Kalabo and will have a total of 26 bridges with the main one measuring 1,022m across the Zambezi River. Both fall under the Zambia 8,000 scheme. [Daily Mail 13/08/15]

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Mozambique 120th Anniversary Of Portos e Caminhos de Ferro de Moçambique [CFM]

This month saw the 120th anniversary of the Mozambique Ports and Railways [Portos e Caminhos de Ferro de Moçambique - CFM]. CFM is the parastatal authority that oversees the railway system of Mozambique and its connected ports. The rail system is composed of a total of 2,983 km rail. The system has developed over more than a century running from 3-different ports on the Indian Ocean, namely Nacala, Beira and Maputo. Each terminal offers a separate line to the hinterland serves. These so called development corridors are known as CFM Norte, Centro and Sul. [Macauhub/MZ 20/07/15] Work Begins On Rail Bridge Over Umbeluzi River

The ceremony to lay the foundation stone for construction of a new US$14.7 million railway bridge over the River Umbeluzi, in the Boane district of Mozambique’s Maputo province was held this month. The new bridge will replace an existing one by Mota-Engil Africa over 15 months. The bridge will be built at kilometre 37.7 of the Goba line which runs for 226km between the Matsapha Industrial Park and the port of Maputo. The Goba line has capacity to receive trains with 50 wagons and is used traditionally for sugar exports from Swaziland through Maputo with amounts ranging between 200,000-240,000t/yr. [Macauhub/MZ 10/08/15] Rwanda/Tanzania/Uganda DIKKM Railway Seeking Expressions of Interest

The Governments of Burundi, Rwanda, and Tanzania have jointly agreed to construct a new standard gauge railway line from Dar es Salaam to Isaka to Kigali with a link to Burundi that will run from Keza to Musongati via Gitega.

The new line, known as the DIKKM railway [www.dikkmrail. com], will facilitate the efficient movement of freight and passenger traffic, provide access to the port of Dar es Salaam and reduce transportation costs within the partner states.

The project involves:

- A new standard gauge [1435mm] line from Dar es Salaam to Isaka [970 km] largely parallel to the existing meter gauge [1000 mm] Central corridor railway and in some locations be constructed within the right-of-way of the existing line. - New Greenfield lines from Isaka to Kigali [494km] and Keza to Musongati [197km].

An extensive feasibility study was carried out by Canarail and Gibb Africa and completed in March 2014 which presented viable project options together with a number recommendations. The Partner States through the Rwanda Transport Development Agency [RTDA] are now seeking Expressions of Interest [EoI] by August 14th from suitable firms to finance, design, construct, operate and maintain the 1,661 km DIKKM Railway under a PPP arrangement. [AfDB 21/07/15]

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UGANDA: THE CASE FOR A RAIL LINE TO JUBA - South Sudan is Uganda’s main export market with 15% of its total exports by July 2015 followed by Kenya, DRC, Netherlands, Germany, South Africa and UAE. - Uganda mostly exports agricultural products [80% of total]. Main exports are coffee [22%], tea, cotton, copper, oil and fish. - Despite conflict in South Sudan, Ugandan trade is increasing with informal exports to Juba growing from US$9.1 million in 2005 to US$929.9 million in 2008. - Formal exports also increased from US$50.5 million in 2005 to US$245.9 million in 2008.

19 Uganda Kampala-Kigali Railway Project Delayed As Focus Shifts To Juba, South Sudan

The Kampala-Kigali leg of the Standard Gauge Railway [SGR] line, under the northern corridor infrastructure development initiative, may be delayed as Uganda shifts its priority to a more economically viable line to South Sudan.

In the wake of Kampala’s changed priorities, Rwanda must now look east to Tanzania for a quicker rail connection to the sea. The burden is now on Kenya, with huge business interest in Rwanda and Democratic Republic of Congo [DRC] to promote the expanded Mombasa port as the port of choice for regional landlocked countries. Any delay to construct the Uganda-Rwanda section of the railway line could see Mombasa lose the Rwanda and DRC market to its rival port of Dar es Salaam.

Construction of the railway line is one of the major projects supposed to be fast tracked by Kenya, Uganda and Rwanda under a tripartite arrangement; aiming at boosting intra-regional trade by reducing the cost of transporting goods to and from the sea. Rwanda also needs the electric railway line quickly to reduce the cost of transporting imports and exports - currently the biggest contributing factor to the high cost of doing business in the landlocked country. The project has several sections such as Mombasa-Nairobi, Nairobi-Malaba, Tororo-Gulu-Pakwach that will connect Kampala to Juba, the capital of South Sudan; and Malaba-Kampala, Kampala-Kasese and Kasese-Kigali through Mirama hills.

Although Uganda remains committed to the SGR project to Kigali, it has decided to fund construction of the Tororo-Gulu Pakwach line first due to economic interests it has in South Sudan. Compared to Rwanda, South Sudan is a bigger market for Kampala. Kenya is however trying to push Uganda to consider Kampala-Kigali railway section first, but if Nairobi doesn’t succeed in influencing Uganda’s decision, Rwanda is almost set to look east to Dar es Salaam that is after all nearer to the sea.

Uganda cannot afford the cost of constructing the Juba-Kampala section and the Kampala-Kigali section concurrently. The main issue is funding. Uganda needs US$14 billion to invest in all the sections. Currently it has secured only US$3.3 billion from the Chinese Exim bank to be invested on the Kampala-Malaba route. So the priority will be the Kampala-Malaba route that connects to Nairobi and then the northern section which is Tororo-Gulu-Pakwach that connects us to Juba, South Sudan. It is hoped by 2020 trains will move from Nairobi to Kampala. However the western route that links Kampala to Kigali will come last after 2020. Currently geotechnical work is being undertaken to ascertain exactly where the line will pass.

With a change in Uganda’s priorities, Kigali will have to wait longer for the train to come though Mirama hills. Rwanda is considering both projects concurrently. But Rwanda will need US$2.4 billion for both projects. The line to the Tanzanian border at Rusumo and the one to Uganda via Mirama hills are both estimated at 400kms. Constructing a standard gauge railway is expensive with a kilometre costing between US$5-8million. Like Uganda and Kenya, Rwanda is also eyeing the Exim bank of China to finance the Rwandan segment as well as external private investors. A complete feasibility study is being undertaken. Meanwhile Africa 50, a project by the African Development Bank [AfDB] aimed at mobilising private financing to accelerate infrastructure development, is in charge of developing the 2,935 km Standard Gauge Railway project business plan which could help bring more financiers.

Kenya has already commenced construction of the Mombasa-Nairobi line with over 40km already constructed by China Road and Bridge Corporation. The line will see freight trains with a capacity of 216 TEU travelling on average at 80km/hr. A typical freight train will consist of 54 double stack flat wagons and measure 880m long. Transporting a cargo container from Mombasa to Kigali is expected to see costs and transit times reduce by half. [Independent 19/07/15]

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Ghana/Benin Tema-Paga Road Corridor - Trans Border Checkpoints Spur Complaints

Ghana’s security agencies have come under criticism from transborder operators for mounting scores of permanent and temporary checkpoints that contravene the ECOWAS convention on transit goods. Operators cited the Tema-Paga route as the most stressful with some 42 police and 12 customs checkpoints along the route. Many more than the 3-checkpoints recommended by ECOWAS to be on that stretch of road including checkpoints at the port, the Paga border and final point of destination.

Police say the checkpoints are valuable measures intended to counteract robbery but operators argue that the checkpoints are used as a tactic to milk cross-border traders and truck operators. Complaints were made at a stakeholder forum on the ‘Road Governance Caravan’ organised by the Borderless Alliance in Kumasi, as part of efforts to assess the level of competitiveness and performance for the northern section of the Tema-Paga corridor.

Data gathered by the West Africa Economic and Monetary Union [WAEMU] Road Governance Initiative, widely referred to as OPA [Observatoire des Partiques Anormales], noted the costs and delays resulting from the various non-tariff barriers, including harassment by police and Ghana Revenue Authority [Customs Division] at the various checkpoints which have worsened rather than improved in recent times.

It is feared that the increasing number of checkpoints with their attendant delays and corrupt practices, could result in many transit operators making neighbouring countries the preferred destination for their trade. Ghana, in recent years, has pursued aggressive reforms to make its ports and transit corridors more competitive for landlocked trade partners. The Port of Tema, which is Ghana’s main port, competes with neighbouring ports such as the Port Abidjan in Cote d’Ivoire; Port Lome in Togo; and the Port Cotonou in Benin for transit goods going to landlocked countries.

Since the beginning of the year stakeholders including the Ghana Ports and Harbours Authority [GPHA], Ghana Shippers Authority [GSA], Burkina Shippers Council, USAID/West Africa Trade Hub, National Road and Transport Facilitation Committee [NFC] and Borderless Alliance have held a series of meetings with the Ghana Police Service to find a lasting solution to the problem of delays and extortions arising from mounting these checkpoints. Recent developments within the corridor are a major concern to all stakeholders, and will require collective efforts to curb such challenges. [Ghanaweb 06/08/15]

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Nigeria Kano To Get Inland Container Depot

The Nigerian Shippers Council [NSC] is to establish an inland container depot in Kano state to address challenges of cargo clearance and delivery faced by shippers in the Northwest zone. The project was announced at a seminar in Kano which aimed at enlightening exporters of agricultural products on the importance of packaging and quality control in international commodity transaction. [Daily Trust 03/08/15]

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Algeria/Niger/Chad Road Works To Commence

Lot 2 covering the development and tarring of the 100km Arlit-Assamaka road linking Algeria-Niger-Chad has been awarded to GROUPEMENT ETPBH-GT/GEPCO. Works on this section forms part of the Multinational Algeria-Niger-Chad project. Works are due to commence September 2015. Liberia China To Build Highway

China will build a new coastal highway for Liberia as part of its aid to the country recovering from Ebola. China’s Foreign Minister Wang Yi recently visited Liberia, Guinea and Sierra Leone, the countries hardest hit by the epidemic. Liberia’s existing coastal route is vital for commerce as the country rebuilds after a civil war that ended in 2003. It connects the capital to the border with Ivory Coast via the port city of Buchanan, where exports of exports of iron and timber pass through, but much of the road is unpaved. [Reuters 10/08/15] Nigeria Nigeria To Rehabilitate East-West Road Section

The River State government has commenced a US$15.15 million rehabilitation project on the East-West Road section from Eleme Junction to the Onne exit point. A Memorandum of Understanding [MoU] was signed with Integrated Logistics Limited [Intels], the West African Container Terminal Limited, the Nigerian Ports Authority, the Port Harcourt Refining Company Limited, Oil and Gas Free Zone and the Indorama Petrochemicals Limited. The project will enhance the environment for the Oil and Gas Free Zone as well as movement of goods and people from Port Harcourt to Eleme. [Construction Review 21/07/15] Senegal Louis Berger Selected For 3rd Phase Of Highway 6

A Louis Berger-led business unit has been selected by the Millennium Challenge Account to implement the third phase of a road rehabilitation program in Senegal. The project involves the modernization of a bridge and rehabilitation of National Highway 6 both paramount for Senegal’s socioeconomic development. The move will also increase farmers’ access to international markets. [NJ Biz 21/07/15]

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Cameroon Batchenga-Ka’a Rail Line Refurbishment

The 22nd Committee In Charge Of Railway Infrastructure [COMIFER] met on August 7th in Yaounde, to discuss projects and the second phase of the 2016-2020 investment to modernize railway infrastructure. Work on the Batchenga-Ka’a railway is progressing with over 60km of the 175km line rehabilitated. The Bolloré Group subsidiary, Cameroon Railways, Camrail and State engineers have accelerated work on the line. Meanwhile the Douala Ngaoundere rail line is due for refurbishment. The COMIFER committee is approaching Chinese banks to source funding for the acquisition of 15 passenger carriages, 5-railcars and 3-locomotives as Cameroon will be hosting the 2016 and 2019 African Cups of Nations and facilitating the movement of people/ spectators is vital. COMIFER is urging Camrail to accelerate the process to acquire more passenger equipment with regard to installing a modern railway station in Yaounde with designs expected by mid-October. The bid will be launched by the end of this year while work is expected to begin in June 2016. [Cameroon Tribune 11/08/15] Ghana Ghana To Reconstruct The Western Rail Line

Ghana plans to reconstruct the Western Rail line from Takoradi to Kumasi. The project will also include a branch rail line that will begin from Dunkwa stretching to Awaso. Speaking at the Front End Engineering Design [FEED] forum, the Transport Minister, Mrs. Dzifa Attivor, confirmed that the project completion has been estimated to cost US$1 billion. She further explained that purpose of the project is to modernize the Western Rail line whereby modern rail stations, ancillary facilities and terminals will be introduced to offer smooth, timely and safe services. The Western Rail project will be executed under the Ghana Railway Development Authority [GRDA]. The design of the Western Line was initiated by Italian consultancy Team Engineering SpA funded by the Government. [Construction Review 21/07/15] Senegal Senegal Launches Dakar Airport Rail Link Tender

The Senegalese government has issued a prequalification invitation to build a 55km rail link between the centre of Dakar and the new Blaise Diagne International Airport [AIBD] near Ndiass, which is expected to open next year. The project involves upgrading and electrifying the western section of the Dakar-Diourbel metre-gauge line and constructing a branch to the airport. The link will be built in 2-phases: Dakar - Diamniado [36km] and Diamniado - AIBD [19km]. The open tender will be conducted in 2-stages and is divided into 3-lots, covering design and construction of infrastructure, railway systems [electrical], and renewal of metre- gauge track. Senegal is shifting the focus of infrastructure investment towards modernising the country’s rail network following the completion of a programme of road improvements. [IRJ 03/08/15]

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