CTBL-WATCH AFRICA ISSUE 15 | MARCH 2015

THE GROUP REOPENS GABON & CONGO CTBL CORRIDORS Full Story On Page 5

South Africa: Transnet Secures Mali: Chinese Undertake US$9.5 Senegal: US$500M Pledged For US$1.1 Billion For Locomotives 18Billion Rail Project 22Railway To Casamance Region 23 CTBL-WATCH AFRICA ISSUE 15 | MARCH 2015

Contents

03 / 09 / Corridor Review Eastern & Southern Africa 05 / 19 / African Group News Western Africa

Top Stories

5

The Group Reopens Gabon & Congo CTBL Corridors

18

South Africa: Transnet Secures US$1.1 Billion For Locomotives

22

Mali: Chinese Undertake US$9.5 Billion Rail Project

23

Senegal: US$500M Pledged For Railway To Casamance Region

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.

News Headlines By Region Eastern & Southern Africa Regional: Rwanda, Uganda And Kenya Officials To Raise Railway Project Funds In Beijing Botswana: Trans Kalahari Rail [TKR] Remains On Hold

Ethiopia: Prime Minister Lays Cornerstone For Rail Project

Kenya: Malaba Gets One-Stop Border Post / KeNHA Invites Bids To Expand Key Coast Roads

Malawi: K2 Billion For Rehabilitation Of Damaged Roads

Mozambique: Louis Berger Group Awarded US$7.6 Million Contract / Soares Da Costa Moçambique Awarded Bridge Project

Namibia: Push For Improved Cross-Border Trade With Angola

Rwanda: Rwanda Agency Moves / 1.5% Levy Touted On Imports To Finance Regional Projects / Export Earnings Up Despite Low Global Prices / One-Stop Border Posts To Open In April

Uganda: Businesses To Tap Trade Opportunities Under India’s Duty-Free Scheme

South Africa: National Toll Tariffs Rise By 6% / Transnet Secures US$1.1 Billion For Locomotive Acquisition Programme

Tanzania: Presidents To Revamp TAZARA

Zambia: Zambia And Angola Sign Cross-Border Road Agreement / Will Benguela Overshadow Tazara-Great North Road Corridor?

Zimbabwe: Introduction Of Pre Shipment Inspection Mooted / Possible Tollgate On Airport Road Western Africa Regional: The Group Reopens Gabon & Congo CTBL Corridors / Group Enhances Europe-West Africa CTBL Service / Transport Infrastructure To Drive West Africa Towards A Brighter Future

Angola: South African Loan To Repair National Roads / Luanda And Lobito To Be Linked By Motorway / Study On Rail Link Between Angola And Zambia To Cost US$4.9 Million

Burkina Faso: New General Manager For Burkina Faso Agency Congo: EMD Delivers Congo-Océan Locomotives

Ghana: President Mahama Breaks Ground On Eastern Corridor Road

Liberia: US$40 Million ArcelorMittal Road Project / Two Lanes For Gardnersville Road

Mali: Chinese Undertake US$9.5 Billion Rail Project

Morocco: Morocco To Invest US$780 Million In Rail Projects

Nigeria: NPA Tasks Commission On Border Trade Facilitation / East-West Road Inn NiNigeriageria Now 90% CoCompletemplete

Senegal: US$500M Pledged For Railway To Casamance Region

2 CTBL AFRICA CORRIDOR REVIEW

Eastern & Southern Africa

Corridor Current Situation 1 ● Kenya-Great Lakes/S. Sudan The Group offers extensive CTBL services throughout Kenya. Following a new 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. Enforcement of cargo weight regulations laws in Kenya combined to the network failures on Single Customs Territory is a challenge to our productivity. No more overweight container is accepted by the transporters at present. Our ASEA KENYA service, providing direct weekly services from Asia to Mombasa, enhances our inland solutions to domestic Kenya, Uganda, Rwanda, South Sudan, eastern DRC. We also offer routes to the North Kivu region in eastern DRC and new connections through Mombasa port to Beni, Butembo and Kisangani, towns all lying on the main national route N4. 2 ● Tanzania-Great Lakes With a new improved ASEA TANZANIA service we offer direct weekly service from Asia to Dar Es Salaam enhancing inland solutions to the heart of DRC, Burundi, Rwanda. Roads from Dar Es Salaam to North Rwanda, Burundi and DRC [Goma / Bukavu / Uvira are in good condition. Burundi transit times are still impacted due to a deviation to avoid a broken bridge. Trucks are forced to use another route adding an additional 200-km equating to 1-2 days transit. Rwanda, Burundi and Uganda are now part of the EAC single custom territory with Tanzania. The single customs territory is due to start soon but not yet fully operational via Dar Es Salaam and not enforced by Tanzanian authorities. The new Custom TOOL in TZDAR is now working normally. 3 ● Tanzania-Copper Belt Roads through Mbeya offer an alternative to the train to Ndola. The Group is the only shipping line to have its own office in Lubumbashi which closely monitors the local situation. The transport corridor from Dar Es Salaam to Lusaka, Copper belt & Lubumbashi is safe and we can offer competitive rates and transit 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 Following flooding across the region which impacted sections of the Nacala railway we can announce that the corridor is now REOPENED with immediate effect. Our rail option from Nacala-Blantyre and Nacala-Lilongwe are available. According to an announcement from Corredor de Desenvolvimento do Norte [CDN - Nacala railway]Operations should restart slowly from the 10th of February. 5 ● Mozambique Beira Corridor A bond agreement with customs is in place and we have our own broker at our agency office to shorten clearance time and trucking. We are using new local transporters to cope with the increase in demand for this service. 6 ● Mozambique Maputo Corridor New competitive solutions are available to Zimbabwe by rail from Maputo- Hwange. Please note there are 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]. We have extended our South African inland reefer service from/to the port of Durban to Johannesburg. 8 ● Namibia Walvis Bay New CTBL export solutions are available from DRC and Zambia to Walvis Bay. The transport corridor to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well. Our 1st breakbulk load was successfully trucked from Walvis Bay to Lubumbashi as was our first reefer trial shipment by road. Please be advised we can also offer Windhoek!

3 Western Africa

Corridor Current Situation 1 ● Senegal-Mali Both road and rail options are running smoothly with good transits available. 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 Due to the present difficulties in the evacuation of containers by rail via the Abidjan corridor, we recommend the road option for your shipments to Ouagadougou and Bobo Dioulasso. This option is working well! Transits to both are just 12 days by road. 4 ● Ghana-Burkina As part of measures to reduce the high cost of doing business at the country’s ports, the Ghana Shippers Authority [GSA] is set to implement the Advance Shipment Information System [ASHI]. The new system when operational on the 1st of March.

Tema-Ouagadougou service is now available as an additional option. The Tema corridor to Burkina is now the most competitive pricewise, with excellent transit time from Asia with AFEX service. Our expert TBL team is now in place and fully involved for all your booking requests. 5 ● Togo-Burkina/Niger Service is running well. Please note that the port of Lome is strict on enforcing weight regulations for trucks. 6 ● Cameroon-Chad There are currently delays by rail as the operator CAMRAIL is experiencing congestion in both Douala & N’Gaoundere stations. We therefore suggest cargo is moved via our road TBL service. 7 ● Cameroon-CAR Douala-Bangui is now open. This corridor is offered on a case by case with agreement from our local Douala Agency. Political security is not 100% on this corridor. 8 ● Gabon Corridor The Libreville-Franceville corridor is REOPENED on a request basis. We have been undertaking some trial shipments as a test case. 9 ● Congo Corridor Pointe Noire-Brazzaville corridor is REOPENED on a request basis. We are undertaking some trial shipments as a test case. 10 ● DRC Corridor Matadi-Kinshasa service running slowly due to congestion and delays at Pointe Noire port.

4 CMA CGM / DELMAS AFRICAN GROUP NEWS

The Group Reopens Gabon & Congo CTBL Corridors Following cargo trials along both the Gabon [Libreville] & Congo [Pointe Noire] corridors last month, we interview Gilles Duffaut, Group Director for Intermodal Africa, about these services.

Q: Firstly focusing on the Gabon corridor. How did the trials go on the Libreville to Franceville route?

Franceville, one of the four largest cities in Gabon, lies on the River Mpassa and at the end of the Trans-Gabon Railway and the main N3 road. Reaching Franceville or its regions near the Congo border can be problematic due to poor road conditions, especially during rainy season.

The rail option is more favourable. The railway line, the only line in Gabon, runs 670 km east from Owendo port station in Libreville to Franceville via numerous stations the main ones being Ndjolé, Lopé, Booué, Lastoursville and Moanda. We unloaded the units in Lastourville and in Franceville then trucked the goods to final destination. Cargo demand stems mainly from companies in the wood industry located up country.

We have noticed that due to on-going port congestion at Douala Douala port, Cameroon, local customers are unloading in Libreville port as an alternative and then routing containers northwards to Douala or elsewhere in Cameroon. Last month we undertook a trial shipment of 12 TEU. The complete move took just 2 days. Libreville Congestion at Douala has reached levels of 25-30 days over Lastourville recent months. Berthing in a private dock allows us to avoid Douala main port congestion & significantly reduce charges. Our new EURAF 4 service calls at Libreville weekly utilizing seven 2,000 TEU vessels. Franceville

For more information on EURAF 4: http://www.delmas.com/products-services/line-services/flyer/EURAF4

Q: What transit times are you offering?

Transit times vary from 1 to 3 days to Franceville and other Gabonese final destinations, depending on road conditions. Deep in Cameroon or Congo territories, average transit time vary from 3 to 4 days.

Q: What cargoes do you expect to handle?

Our service targets large mining and agricultural companies located in the north of Gabon such as Makokou, Lambaréné and Franceville. We handle mainly spare parts and machinery destined for factories or public works driven by the wood industry or the Gabonese Government as well as agricultural raw materials. Towards Cameroon we carry mainly perishable goods for which customers can’t afford to wait at Douala which is suffering from immense port congestion.

Q: What regulatory requirements are there?

The BIETC tracking note is compulsory for customs clearance for cargo entering Gabon and it is mandatory to indicate the BIETC number both on the bill of lading and on the manifest before loading. The shipper or his forwarding agent need to provide a draft of the cargo tracking note [BIETC]. The final document is required according to the following time limit: Africa zone: 5 days after vessel’s departure / Europe zone: 10 days after vessel’s departure / America, Asia, Oceania, Middle East zone: 15 days after vessel’s departure.

Q: Secondly the trials on the Congo corridor. How was the route from Pointe Noire to Brazzaville?

Brazzaville, Congo’s capital, lies 506 km from the Atlantic Ocean port of Pointe Noire. Tests were carried out by road which is actually still under construction. Works were meant to be completed last year but are now expected to be finished by the end of 2015. However we are still in position to accept TBL cargo.

5 Q: What transit times are you offering?

Transit times are in average 5 days [May to October] and 9 days in the rainy season [November to April]. Our TBL service includes empty returns.

Q: Pointe Noire port is often affected by congestion. How does this impact onward shipments?

Recently congestion at Pointe Noire port applicable to feeder vessels of around 6 days. As the Group has a fix berthing window scheme applied as a main liner service we experience no congestion. Our new EURAF 5 service calls at Pointe Noire weekly utilizing seven 2,000 TEU vessels.

For more information on EURAF 5: http://www.delmas.com/products-services/line-services/ flyer/EURAF5

Q: What cargoes are generally handled on this corridor?

We mainly handle personal effects, cars, food, consumer goods and building material.

Q: What regulatory requirements are mandatory?

The Electronic Cargo Tracking Note [ECTN] or Bordereau Electronique de Suivi des Cargaisons [BESC] which replaced the Bordereau d’Identification de la Cargaison/Cargo Identification Note [BIC] system is required by law. No exception is made to this rule with the risk of penalty if the number is not supplied. The BESC is managed by the Conseil Congolais Republique Du Congo / Congolese Shippers Council [CCC] and can be obtained online at www.ccc.cg. The shipper must supply a ECTN/BESC for any cargo to Pointe Noire under the decree of the Congolese Shippers Council Circular n° 0712/CCC/DG/OTDT of November 17th 2009. The ECTN number must appear both on bills of lading and manifests for all cargo shipped to Pointe Noire even if the cargo is in transit, under penalty born by the carrier, according to article 7 of decree 1033 of May 14th 2008.

Furthermore in application of circular #002/GUOT/DG of October 14th 2014, it is compulsory for customers to follow the electronic Single Window Cross-Border Operations system or Guichet Unique des Operations Trans Frontalières [GUOT]. This system generates an identifier number known as an Import Certificate number [TI number] once the receiver at destination has validated his importation declaration. This identifier is sent by the receiver to his shipper in order to permit him to make the boarding formalities.

Contacts

Pointe Noire Pierre-Edouard ETIENNE Delmas Congo / CMA CGM Group Mobile: +[242] 05 775 09 32 E-mail: [email protected]

Libreville Khalil BOUKHDOUD Delmas Gabon / CMA CGM Group Tel : +241 01 704 351 / Mobile : +241 04 844 589 E-mail: [email protected]

6 CMA CGM / DELMAS AFRICAN GROUP NEWS

Group Enhances Europe-West Africa CTBL Service CMA CGM GROUP / DELMAS has reorganised its Europe and Mediterranean services to West Africa. The move maximises services to all strategic coastal African markets and also provides enhanced inland transport solutions to landlocked Africa. All services are weekly as outlined: EURAF 1 - Mali / Burkina Faso

- Direct service from Europe and Mediterranean to Senegal, Ivory Coast, Mali and Burkina Faso. - CTBL is offered to Bamako [Mali] and Ouagadougou and Bobo Dioulasso [Burkina Faso] via Dakar and Abidjan. - Both road and rail options from Dakar to Mali are running smoothly with good transits available. We recommend the road option from Abidjan to Burkina Faso. Transits are just 12 days by road. - Service reliability and punctuality is guaranteed thanks to berthing http://www.delmas.com/ windows in the main African ports avoiding congestion. products-services/line-services/ ! flyer/EURAF1 EURAF 2 - Burkina Faso

- Direct service from Europe and the Mediterranean to the strategic markets of West Africa central countries including Nigeria, Ghana, Ivory Coast exports. - Onward CTBL landlocked services to Ouagadougou in Burkina Faso available via Abidjan and Tema.

http://www.delmas.com/ ! products-services/line-services/ flyer/EURAF2 EURAF 4 - Niger / Mali / Burkina Faso

- Dedicated to the Central range of West Africa: Benin, Cameroon, Togo and Gabon. - The landlocked countries of Niger, Burkina Faso and Mali are available using our CTBL service. The Togo-Burkina/Niger service is running well. - We offer service reliability and punctuality thanks to berthing windows in the main African ports avoiding congestion. Connection to worldwide ports are available via Tangier Med. http://www.delmas.com/ products-services/line-services/ ! flyer/EURAF4 EURAF 5

Congo / DRC - Service offers dedicated connections to Gabon calling at Pointe Noire. From Pointe Noire intermodal solutions are offered to both Kinshasa and we are pleased to have REOPENED the Brazzaville corridor on a request basis. Transport is offered, but custom formalities stays on consignee account.

For rate requests and bookings please contact your usual local agent. http://www.delmas.com/ products-services/line-services/ flyer/EURAF5

7 Rwanda Agency Moves CMA CGM RWANDA has been relocated. Our expert TBL team is in place and can offer expert local advice. The transit corridor to Rwanda is running and operating well. Roads from Dar Es Salaam in Tanzania to Rwanda are in good condition. Alternatively we offer routings via Mombasa port in Kenya. For all booking and rate requests please contact your local agent. Rwanda is now part of the East African Community [EAC] single custom territory which is due to start soon for ease of transit.

CMA CGM Rwanda Ltd As agents for CMA CGM & Delmas Lines Umoja House, Ground Floor. KN 3 Street, Nyarugenge P.O Box 5232, Kigali, Rwanda Tel: +250 252 579 388

Port of Discharge Country City Mode Km’s Port Days Way Total Terms Dar Es Salaam Rwanda Kigali Road 1500 10 10 20 Free on truck - door Mombasa Rwanda Kigali Road 1700 9 9 18 Free on truck - door

FACTBOX: EAC Single Custom Territory

- In October 2013, Presidents Yoweri Museveni of Uganda, Paul Kagame of Rwanda and Uhuru Kenyatta of Kenya agreed to implement a Single Customs Territory [SCT] between them as members of the EAC. Kigali - Tanzania and Burundi followed suit at the Summit in November 2013.

Mombasa - The agreement removes multiple weighbridges, police and customs checks along the Mombasa-Kampala- Kigali route.

- It introduces computerised clearance and electronic Dar Es Salaam tracking and other innovations that have overturned many of the hurdles to free trade or Non-Tariff Barriers [NTBs] that the Northern Corridor was infamous for.

- For more information visit the EAC Customs website: http://www.eac.int/customs/

New General Manager For Burkina Faso Agency We are pleased to announce the appointment of Frantz Sullivan Mayabouty as the new General Manager of DELMAS Burkina Faso in Ouagadougou from 9th March 2015, replacing Hervé Tuwendaabo Zongo who has been appointed General Manager of DELMAS Gambia in Banjul.

Frantz Sullivan Mayabouty Phone: +226 50 41 77 72 / 73 Email: [email protected]

8 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

Namibia Push For Improved Cross-Border Trade With Angola

The Namibia Chamber of Commerce and Industry [NCCI] and the Angolan Chamber of Commerce and Industry [CCIA] are engaging stakeholders to improve the cross-border trading environment. NCCI’s Chief Executive Officer, Tarah Shaanika, held talks with his counterpart, Tiago Gomes, and exchanged views on making trading arrangements more efficient.

The chambers agreed that cross-border trade needed significant improvement, especially the level of efficiency in moving goods from one country to the other. The process of clearing goods on both sides needed to be accelerated so that the turnaround time for trucks carrying goods is reduced to competitive levels. They agreed to engage stakeholders to identify bottlenecks in the customs clearing processes and reduce unnecessary bureaucracy, which delay the export of goods. NCCI and CCIA will engage the governments of Namibia and Angola, respectively, to address bureaucratic hurdles hampering cross-border trade.

The central banks of Angola and Namibia have signed a currency exchange agreement, which allows the Angolan Kwanza to be accepted by Namibian banks at Oshikango and the Namibia Dollar to be accepted by Angolan banks at Santa Clara. This agreement, to be implemented in March 2015, will be crucial in the facilitation of trade at the Oshikango/Santa Clara border post. [New Era 24/02/15]

9 Rwanda 1.5% Levy Touted On Imports To Finance Regional Projects

The government has approved a draft law that seeks to impose a new levy on goods imported from outside the East African Community [EAC] in order to collect funds needed for regional infrastructure projects. The draft law establishing the Infrastructure Development Levy on imported goods was approved by a Cabinet meeting early February.

According to the proposed law, all imported goods [from outside EAC], except those exempted under the law, are subject to a levy of 1.5% on the customs value of imported goods. the levy “is intended to mobilise funds for regional infrastructure projects that include the railway and energy networking infrastructure such as electricity grids and oil pipelines, which are being pursued under the Northern Corridor Integration Projects initiative. The draft law approved by the Cabinet says the levy on goods imported will be collected at Customs points by Rwanda Revenue Authority in accordance with the customs legislation and deposited into a sub account of the Treasury.

Although the draft law is yet to be tabled in Parliament, the plan to impose the levy is already being touted by government officials as a sure source of funds to finance ambitious infrastructure projects. [New Times 19/02/15] Export Earnings Up Despite Low Global Prices

Rwanda’s exports performed relatively better in both value and volumes last year compared to the previous year. Total export receipts increased by 4.7% in value to US$599.8 million [Rwf428.9 billion] from US$573 million [Rwf409.7 billion] in 2013, while volumes increased by 5.1%. However, the increase was not big enough to narrow the country’s trade deficit with the import bill going up by 6.8 and 3.7% in terms of volume and value, respectively. [New Times 21/02/15]

Coffee Performed well buoyed by good prices on the global market despite the low export volumes. The price of coffee was US$3.74 in 2014 up from US$2.75 in 2013. Rwanda exported 15,970 tonnes worth US$59.68 million up from US$54.9 million in 2013, when 19,990 tonnes was exported. Minerals Total export earnings dropped 10% to US$203.32 million in 2014 from US$225.7 million in 2013. • Cassiterite receipts increased from US$71.95 million, from US$61.07 million in 2013 despite a drop in prices from US$12.48 to US$12.08. Over 5,950 tonnes of cassiterite were exported in 2014 up from 4,900 tonnes in 2013. The sector was affected by slow global economic growth and low prices on the international market. • Coltan revenues declined fetching US$104.8 million compared to US$134.57 million in 2013 • Wolfram export earnings slowed to US$26.59 million d from US$30.05 million. Tea Exports declined from US$55.48 million [Rwf39.7 billion] in 2013 to US$51.76 million [Rwf37.01 billion] last year a 6.7% drop in revenue attributed to declining global commodity prices. Hides & Skins Raked in US$14.22 million last year compared to US$16.02 million in 2013. 10 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

Uganda Businesses To Tap Trade Opportunities Under India’s Duty-Free Scheme

Exporters in Uganda are equipped with the skills to increase trade with India following training on duty-free market access for exports, led by the International Trade Centre [ITC]. Stakeholders gathered for a meeting on ‘Taking advantage of Trading Preferences to India’, jointly organized by ITC and the Uganda National Chamber of Commerce and Industry [UNCCI] in Kampala.

Uganda is a beneficiary of the Government of India’s Duty Free Tariff Preference [DFTP] Scheme which offers duty-free market access to exports from least developed countries on 98% of Indian tariff lines - including products of direct interest to Ugandan exporters. Despite a long history of economic relations India remains an insignificant destination for Uganda’s exports, absorbing less than 1% of the country’s total exports in 2012.

Uganda faces major problems with non-tariff measures and procedural obstacles, especially when it comes to licensing, permits to export, inspections, certificates and taxes. Obstacles affecting trade from the Indian side include conformity assessment, rules of origin and pre-shipment inspections. Participants recommended ways to reduce incidences of procedural and regulatory obstacles to trade. [International Trade Centre, Geneva 25/02/15]

Zambia Zambia And Angola Sign Cross-Border Road Agreement

Angola and Zambia signed a cross-border agreement for the road sector, to facilitate the transport of goods at their common border. The agreement was intended to execute the legal instruments signed in February this year during the a 48-hour visit by the Zambian President Edgar Lungu Chagwa to Angola. At the time, the 2-countries signed agreements in the areas of cross- border rail and river transport, to establish the rules, methodologies and procedures for the movement of people and goods along their extensive common border. [Macauhub/AO 05/03/15]

11 Will Benguela Overshadow Tazara-Great North Road Corridor?

On February 13th Zambia and Angola signed 2-bilateral agreements on water and railway transport. Under the railway line agreement, Zambia is expected to connect to the Lobito corridor through the newly refurbished Benguela railway line on the Angolan side and the North-Western railway line on the Zambian side. It is envisaged that the new railway line will ease connectivity between Zambia and Angola’s Atlantic port city of Lobito and will thus indirectly connect to the railway system of South Africa. The Benguela railway connectivity will be the shortest, cheapest and most reliable route to the seas.

At the moment Zambia’s traditional transport outlets to the seas are the Tanzania-Zambia Railways [Tazara] and the Great North Road to the Indian Ocean and by road to the ports of South Africa. Tazara and the Great North Road are considered to be the major routes to the seas. However, with the signing of the railway line agreement between Zambia and Angola, the Benguela railway line initiative may pose competition to the Tazara-Great North Road corridor due to its perceived advantages over the Tazara and Great North road.

The Tazara and Great North Road have been serving transportation needs for Zambia and the Southern African Development Community [SADC] region over the past few decades. Before the existence of the Tazara and Great North road, transport costs in the southern African region, especially along the north-south corridor, were immense.

The construction of the Tazara and Great North Road undoubtedly resulted in reduction of the costs of transportation and improved the competitiveness of business in 8-countries, namely Zambia, Tanzania, Kenya, Democratic Republic of Congo [DRC], Malawi, Zimbabwe, Botswana and Namibia. Currently, however, the Tazara and Great North Road are not in very good physical and operational states. However, the Zambian government, through the Road Development Agency [RDA], has embarked on the rehabilitation of the Great North Road at a cost of US$614.7 million in conjunction with its cooperating partners such as COMESA-EAC-SADC Tripartite Task Force and several other partners. The programme of rehabilitating the Great North Road, under the link Zambia 8,000 project, needs to be prioritised and accelerated lest it be over- shadowed by the new Benguela railway line initiative.

The signing of the bilateral railway line agreement between Zambia and Angola has generated a lot of interest. The Benguela route will have a lot of benefits in terms of easing transportation costs to and from the sea on the western side. Although no comparative economic assessments have been done yet to compare the Benguela and Tazara-Great North Road routes, many people already envisage lower costs for the Benguela route compared to the Tazara route. [Daily Mail 25/02/15] Zimbabwe Introduction Of Pre Shipment Inspection Mooted

The Government has signed an agreement with French quality inspection company Bureau Veritas for pre-shipment inspection services in a move aimed at ending the importation of substandard goods. No date has been set for implementation as yet. The Shippers and Forwarders association are in contact with Zimra to see how this will be executed. [03/03/15]

12 EASTERN & SOUTHERN AFRICA DRY PORTS & OSBP

Kenya / Uganda Malaba Gets One-Stop Border Post

The clearance of cargo along the Uganda-Kenya Malaba border post is expected to be faster after the opening of a One-Stop- Border Post [OSBP]. Under the new arrangement, authorities on both sides of the border will simultaneously speed up clearance of cargo. Uganda Revenue Authority [URA] noted that all cargo coming from Kenyan would only stop at the Ugandan side for joint inspection. Clearance of trucks carrying goods across the border is anticipated to take 4-hours or less compared to the 2-days it usually took.

The construction of the border post cost Shs 15bn, with proceeds coming from government and the World Bank. Unfortunately the road component part of the OSBP design was omitted due to limited funds estimated at Shs 11 billion for Malaba and Shs 4bn for Busia OSBP. Construction of a new bridge is already underway to make the facility more efficient. Under the new plan, pedestrians will be accorded a separate access point to the OSBP. [Observer 25/02/15]

Rwanda One-Stop Border Posts To Open In April

Five One-Stop Border Posts [OSBP] constructed at Rwanda’s major border points will be opened in April to include Kagitumba and Cyanika border posts with Uganda; Nemba and Ruhwa border posts with Burundi; and Rusumo border post with Tanzania. The facilities are expected to support efficient business transactions by reducing clearance times by up to 40%. [New Times 24/02/15]

13 EASTERN & SOUTHERN AFRICA ROAD

Kenya KeNHA Invites Bids To Expand Key Coast Roads

Kenya National Highways Authority [KeNHA] has invited bids for the design of Port Reitz and Moi International Airport roads to decongest the 2-link roads. The estimated cost of improvements is Sh30 billion. This comes after the Government received financing of Sh1.8 billion from TradeMark East Africa [TMEA] in February to be used to underwrite part of the design and construction of the roads. The Government, through KeNHA - the agency implementing the project will inject a further Sh900 million to cater for additional costs. TMEA has further agreed to provide Sh2.7 billion to support the Mombasa port infrastructure facilities improvement, aimed at reducing transit time for cargo at the port by 2-days. [Standard Digital 28/02/15] Malawi K2 Billion For Rehabilitation Of Damaged Roads

Minister of Transport and Public Works revealed a tentative budget of K2billion for rehabilitation of damaged roads in flood stricken areas and is discussing with donors to help us raise the sum. The World Bank is among the known donors. Most roads that were damaged are now passable except for Bangula to Mawona due to the overflowing of the Shire River. Districts t affected include Chiradzulu, Thyolo, Mulanje, Balaka, Machinga, Mangochi, and Salima. [Malawi News Agency 28/02/15]

REOPENED Following Floods: Malawi Offered On A Weekly Basis

CMA CGM / DELMAS provides an efficient and extensive coverage of all major cities in Malawi including Lilongwe, Blantyre and Mzuzu.

We serve both the ports of Beira and Nacala with 3 dedicated services: New Mozex, New Swahili and Rhino Express services. We can offer both onward rail and road options with good transit times.

Our local agents have built on relationships with 3rd party logistic providers on both pricing and tariffs. Our dedicated team is in place to ensure service quality for shipments using rail companies and road hauliers that are well known and recognised on the market.

If transiting the Beira corridor we have a bond agreement with customs in place and have our own broker at our agency office to shorten clearance time and trucking. Agreements has been signed with our local agency CC Mozambique and freight transporter J&J lda.

If using the Nacala corridor, the Group is in a position to obtain regular allocations and are in continuous negotiations with all stakeholders including CDN the National Rail operator.

We have also gone to great lengths to ensure that the administrative side of shipping is convenient as possible. We are able to arrange your customs documentation, insurance and the payment of port terminal charges on your behalf. We also make sure that the documents are prepared and delivered on time.

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Mozambique Louis Berger Group Awarded US$7.6 Million Contract

Louis Berger Group has been awarded a US$7.6 million contract to provide consulting services for the N303 road reconstruction project that crosses the province of Tete in Mozambique.

The 350-km road, which is currently narrow and unpaved, will be the focus of a project worth US$350 million to transform it into a modern highway that will cross Tete province and end on the Zambezi River where Mozambique, Zambia and Zimbabwe share a common border.

The future N303 road will be the shortest connection to a railway line that is under construction between Tete province, rich in coal, and the port of Nacala, the deepest in southern Africa and also a more economical solution to increase the circulation of goods and mineral resources, particularly copper exports. The cost of this project to modernise the N303 will be supported by a public-private partnership [PPP] involving the government of Mozambique and the Sub-Saharan Regional Pipeline Corporation [SSRPC].

The engineering project will include the extension and/or reinforcement of the road and the existing structures, improvements to the alignment, paving and signage, drainage works and complementary works, as well as recovery of 19 bridges. [Macauhub/MZ 24/02/15] Soares Da Costa Moçambique Awarded Bridge Project

Portuguese-owned construction company Soares da Costa Moçambique will restore the Xai-Xai suspension bridge over the Limpopo River, in Gaza province, built during the colonial era in 1964, and which is currently managed by the National Roads Authority [ANE]. [Macauhub/AO 24/02/15] South Africa National Toll Tariffs Rise By 6%

Toll tariffs on national roads will increase by 6% according to South African National Roads Agency Limited [Sanral]. Tariff adjustments to be made on the N3 toll road between Johannesburg and Durban, the N4 highway between the Mozambican border and the Botswana border, as well as on toll road sections of the N1, N2, N17, and R30. All were approved by Transport Minister Dipuo Peters and then gazetted. [Engineering News 01/03/15] Zimbabwe Possible Tollgate On Airport Road

Government is mulling the construction of a tollgate between the city centre and the Harare International Airport to raise more money for road rehabilitation and construction. The Zimbabwe National Road Administration collects about US$3 million monthly from tollgates, a figure that it argues is not enough for road infrastructure construction and rehabilitation. The ministry is also working on a programme to introduce more toll points on highways such as Chivhu-Nyazura, Rusape-Nyanga and Bindura-Mt Darwin. [Herald 27/02/15]

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General Rwanda, Uganda And Kenya Officials To Raise Railway Project Funds In Beijing

The three countries behind the Northern Corridor Integration Projects Initiative [NCPI] have written to the Chinese government seeking a joint visit aimed at mobilising funds for the construction of the proposed standard gauge railway [SGR]. Technical estimates put the total budget required for the project, from Mombasa to Kigali, at US$14 billion, an amount Rwanda, Uganda and Kenya have agreed to source for collectively. Although the NCPI coordination group have not declared who they will meet with in China, it is believed that China’s Export- Import-Bank [Exim] will lead the discussions. Established in 1994, Exim is a state-owned Chinese bank whose mission is to promote foreign trade and investment as well as provide development assistance to countries in form of concessional funding.

Africa 50, a project by the African Development Bank [AfDB] aimed at mobilising private financing to accelerate the speed of infrastructure delivery in Africa, is in charge of developing the SGR project business plan. The business plan is a vital ingredient of the fundraising effort as it will show investors the viability of the project to inform their investment decisions. Given that the US$14 billion budget is a substantial amount, Exim may not wish to fund the whole project, so further funding may need to be sought from private investors. The standard gauge railway is expected to connect Mombasa-Nairobi-Malaba-Kampala and finally Kigali covering a total distance of 2,935 kilometres, which, experts believe, will significantly ease transportation cost of goods incurred by land locked countries. Construction works for the 380-mile stretch of the SGR from Mombasa port to Nairobi started last year.

Last year Chinese Premier Li Keqiang visited Kenya and during his visit signed a deal with the Kenyan government in which China would provide up to 85 per cent of the estimated US$3.8 billion needed to finance the Mombasa-Nairobi SGR section. Kenya would meet the rest. [New Times 11/03/15] 16 EASTERN & SOUTHERN AFRICA RAIL

Botswana / Namibia Trans Kalahari Rail [TKR] Remains On Hold

Botswana’s Minister of Infrastructure, Nonofo Molefhi noted the Trans Kalahari Railway [TKR] project remains on hold pending sourcing of funds. The 1447-km line will link Botswana’s Mmamabula coalfields with the Walvis Bay Port in Namibia. The project is expected to cost US$136 billion - too costly for both countries. The 2-governments had agreed to conduct feasibility studies and then engage the private sector. Botswana and Namibia signed a Memorandum of Understanding [MoU] on the Trans Kalahari Railway project in 2010. The pre-feasibility studies for the project were completed in 2011 with the bilateral agreement signed in March 2014.

Once completed, the line will offer alternate transportation routes for landlocked SADC countries such as Malawi, Zambia and Zimbabwe. It will be ideal for exportation of bulky goods destined for Europe, Asia and America while also serving as relief to the already congested corridors within SADC. The TKR route alignment will follow the existing Trans Kalahari Corridor starting from the central district in Botswana, where there are coal fields and connect to the existing railway line alignment down to Rasesa passing through Molepolole-Kang road until Morwamosu to join Trans Kalahari Corridor through to Mamuno border. [Mmegi 26/02/15] Ethiopia Prime Minister Lays Cornerstone For Rail Project

Ethiopian Prime Minister Hailemariam Desalegn laid the foundation stone for the construction of a US$1.7 billion railroad construction stretching 375km - an extension southeast of the earlier launched Mekele– Woldiya rail-line which will be extended further to Tajura in Djibouti. Turkish company Yapi Merkezi will construct the project. Financing is secured from the Turkish EX-IM bank and the Credit Swiss Consortium including Denmark, Switzerland, Sweden and Austria.The Mekele–Woldiya railway is being constructed with a financing secured from the Chinese EX-IM bank. [NTA 25/02/15]

17 South Africa Transnet Secures US$1.1 Billion For Locomotive Acquisition Programme

South African rail operator Transnet has raised US$1.1 billion in funding for its locomotive acquisition programme, the biggest rail recapitalisation programme in the country’s history. The operator received the current financial support in 2-agreements with funders and financial institutions, including Barclays Africa, Investec, Standard Bank, Old Mutual and Export Development Canada. In March last year, Transnet entered into a US$4.26 billion agreement to buy 599 electric and 465 diesel locomotives from General Electric, China North Rail, China South Rail and Bombardier Transportation. This new funding will be allocated for the Bombardier and GE portions of the locomotive acquisition programme.

Under the first agreement, the South African rail company received R6bn [$512.16m] US-Exim Bank funding guarantee for 293 locomotives to be built by General Electric. The second funding agreement provides a R6.99bn [$596.67m] loan facility for the locomotives from Bombardier. Transnet said that these agreements are in line with the company’s funding strategy as it relates to its focus on diversifying sources of funding and raising debt cost-effectively. Being purchased as part of the company’s market demand strategy, the new units of locomotives will renew its existing fleet of 2,400 locomotives. Bombardier and GE portions have completed the technical design of the locomotives and the first locomotive of Bombardier is expected to be rolled out in July this year. China South Railways has also completed the technical design of the locomotives and its first prototype will roll off the production line at the end of this month. [Railway Technology 03/03/15] Tanzania / Zambia Presidents To Revamp TAZARA

Zambian President Lungu and his Tanzanian counterpart Jakaya Kikwete have committed their countries to revamping operations of Tanzania-Zambia Railways [TAZARA] to improve trade. During official bilateral talks both noted that the Zambia-Tanzania Joint Permanent Commission [JPC] has helped to achieve co-operation in areas such as agriculture, transport, communication and energy among others. The JPC is also working to resolve challenges at the Nakonde-Tunduma border and to harmonise regulations between the countries for the establishment of a functioning one-stop border post [OSBP]. [Daily Mail 26/02/15]

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General Transport Infrastructure To Drive West Africa Towards A Brighter Future

The Deloitte African Construction Trends Report 2014 revealed that the total value of projects under construction in West Africa increased from US$50 billion to US$75 billion year-on-year, citing growing maturity in infrastructure investment, activity and tenacity. Transport construction projects accounted for 29% of the growth.

“Regional integration is firmly in stakeholders’ sights, with promotion of infrastructure development to support a competitive business environment, sustained development and cooperation in the region,” the report said, “Although projects of this nature take time and in West Africa, energy supply and backlogs can still present constraints, initiatives such as rail and port developments are enabling the region to make significant inroads.”

The report also revealed that the West African Development Bank had identified several major infrastructure projects which require funding. These include the Eastern Railway Line and Boankra Dry Port in Ghana, along with road development between Accra and Tema, and Accra and Takoradi. [CND Africa 11/03/15]

Nigeria / Niger NPA Tasks Commission On Border Trade Facilitation

The Nigerian Port Authority [NPA] has joined members of the Nigerian/Nigerien Joint Commission on Transit Cargo to come up with modalities on how to tackle identified threats to trade facilitation along land borders. The commission was constituted after a joint meeting between both Governments and is to organize a sensitization workshop in Abuja on its activities which will precede the arrival of Nigerien business delegation visit to Nigeria and Nigerian Ports this month. [Guardian 04/03/15]

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Angola South African Loan To Repair National Roads

Angola is to borrow US$216 million from the Rand Merchant Bank, South Africa, to finance the repair of 2-national roads the EN180 and EN225. Namely to repair 180 km of the EN180, between Saurimo and Moxico, a project that began in 2008 and is still not complete. The project is promoted by the Ministry of Construction, through the Angola Road Institute [INEA], as part of a recovery of road infrastructure. Reconstruction of EN225 involves about 500 km and includes construction of 14 new bridges. [Macauhub/AO 27/03/15] Luanda And Lobito To Be Linked By Motorway

A new bridge will be built over the Kwanza River on National Road 100 improve traffic flow between Luanda and Lobito. The bridge will have four lanes and be able to support vehicles weighing up to 100 tons. The site is currently undergoing mine removal and clearance. The motorway will be built in phases due to its length and high cost, with the first phase starting from the bridge over the Kwanza River to Porto Amboim and the second phase to Sumbe. Two other motorway bridges will be also built on the Longa and Queve rivers. [Macauhub/AO 16/03/15] Ghana President Mahama Breaks Ground On Eastern Corridor Road

President John Dramani Mahama has broken the ground for work to begin on the 209-kilometre Oti- Damanko-Nakpanduri section of the Eastern Corridor road in the Northern Region. Upon completion, the $290.64-million road will connect roads in the Volta and the Eastern regions to the Tema Roundabout in the Greater Accra Region through the Volta Region. It will also link the Northern and the Upper East regions to Ghana’s landlocked neighbours — Burkina Faso, Mali and Niger.

The route is conceived as a north-south trade corridor which provides a shorter access to the Tema Port, which will enhance economic activities between the northern and the southern parts of the country and with Ghana’s landlocked neighbours, as well as foster and facilitate integration within the West African sub-region.

The asphalted dual carriageway, which will connect major towns such as Oti-Damanko, Bimbilla, Yendi, Sakpiegu, Gushiegu and Nakpanduri, is being founded by the Brazilian Development Bank [BNDES] and the government of Ghana. It is scheduled for completion in November 2016.

President Mahama said the road, when completed, will further boost economic activities between the north and the south and would help farmers transport their produce with ease and at low cost to the market centres. He also said that the government would soon begin the construction of the Western Corridor road which will link Enchi in the Western Region to Hamile in the Upper West Region and also consider the Central Corridor road. [Daily Graphic 09/03/15]

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Liberia US$40 Million ArcelorMittal Road Project

ArcelorMittal Liberia is funding the US$40m road construction project on the Ganta to Yekepa highway. The Compagnie Sahelienne d’Enteprises [CSE], a Senegalese construction company has been awarded the contract for the road construction project and is mobilizing equipment in order to commence construction work in March 2015. [Construction Review 03/03/15] Two Lanes For Gardnersville Road

Rehabilitation of the Somalia Drive [Gardnersville Road] to 2-lanes is expected to commence in May to repair the damaged sections as well as widening the road shoulder by the Japanese Government. Government will also rehabilitate 25 community roads from Congo Town, Paynesville and Gardnersville. Meanwhile construction of Caldwell Bridge is due for completion by August this year. Delays were attributed to postponement of the project due to the Ebola outbreak back in 2014. [Recorder 02/03/15] Nigeria East-West Road In Nigeria Now 90% Complete

Nigeria has said that the East-West road construction project in Nigeria is now 90% complete and will be delivered within coming few months. The dual carriageway project is expected to have cost US$1.93bn at completion. The road construction project has thus far been awarded US$150m by AfDB and China Exim Bank is expected to finance extension to Cross River State at US$1bn. [Construction Review Online 09/03/15]

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Angola Study On Rail Link Between Angola And Zambia To Cost US$4.9 Million

The African Development Fund [ADF] will provide funding of US$4.9 million for a study to upgrade Angola’s transport plan, including the connection of the national rail network to Zambia. The project aims to draw up a strategy and policy for the national transport network “as well as conduct a preliminary feasibility study on the rail link between Benguela railroad and Zambia. Reconstruction of the Angolan railways, destroyed by civil war, between 2005 and 2015, cost about US$3.5 billion. Reconstruction of the three railways, built during the colonial period – Benguela, Luanda and Moçâmedes – involved 2,612 kilometres of network and the construction of 151 railway stations. [Macauhub 17/03/15] Congo EMD Delivers Congo-Océan Locomotives

Minister for Transport, Civil Aviation & Shipping Rodolphe Adada visited Electro-Motive Diesel’s plant at Muncie in the USA at the end of January to inspect 10 Type GT38AC locomotives which Delegation Générale des Grands Travaux has ordered for use on the Chemin de Fer Congo-Océan network. The 1,067 mm gauge diesel locomotives are expected to arrive at the port of Pointe- Noire by the end of March, for entry into service shortly afterwards. [Railway Gazette 14/02/15]

Mali Chinese Undertake US$9.5 Billion Rail Project

The government of Mali has entered a US$11 billion contract with Chinese companies to boost its economy and service delivery to its citizens. The signing, in Tianjin, China during the World economy forum last September, will see the country upgrade the already existing railway linking Mali to Senegal. The rail construction project, which begins in a year’s time, will be undertaken by two Chinese civil engineering companies namely China Railway Engineering Corporation [CREC] and China Railway Construction Corporation [CRCC]. The companies have one year to submit detailed proposals to see Chinese banks fund the projects in the involved countries.

The project will involve the upgrading of the existing 1230km meter-gauge line from Dakar, Senegal to Bamako in Mali, a project estimated to cost US$1.5bn. This railway construction will be rehabilitated by CRCC. Meanwhile, CREC will be working on building the entire new standard gauge line linking Bamako to the port of Conakry which is in Guinea to Mali a route length of approximately 920km to cost US$8bn in this case. The improved transport in Mali will attract investors to explore resources such as iron ore, bauxite and uranium that are bulkier and more costly to transport than gold. The non-binding MoU with the Chinese administration came along with some demands from the Mali’s government stating that the Chinese government should be willing to assist them in curbing the deadly Ebola virus which has claimed nearly 4,000 people and sidetracked regional trade, though the virus has not significantly affected this industry yet. [Construction Review 25/02/15]

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Morocco Morocco To Invest US$780 Million In Rail Projects

Moroccan National Railways [ONFC] is planning to invest US$780 million for development of the rail sector in 2015 according to minister for transport Aziz Rabbah. Half will be used in the Tangiers-Kenitra high speed line, whose construction works are undergoing and set to be completed in 2016. The rest will cover conventional networks programme, to involve doubling the Settat-Marrakech railway line, construction of a third track on Kenitra-Casablanca railway line, refurbishment of existing rolling stock and acquisition of new trains and station modernization. Investments are in line with the government’s 2015 finance Act and the provisions of Moroccan National Railway’s 20109-2015 contract with the state. [CR 02/03/15] Senegal US$500M Pledged For Railway To Casamance Region

Senegal’s President has pledged to build a US$500 million railway linking the capital, Dakar, to the southern Casamance region – a region wedged between Gambia to the north and Guinea-Bissau to the south. The proposed line would run between Dakar and Ziguinchor, Casamance’s regional capital, would skirt around Gambia and pass through Tambacounda, a mining region in Senegal’s east. Casamance is a potential breadbasket for Senegal but transport links to the region are poor. Options range from travelling by ferry, driving through Gambia or driving on poor roads that pass through Tambacounda. A feasibility study has been completed but no construction timeline was provided. [Reuters 19/02/15] This is an important project that will link up the southeastern, western and centre regions, while also “ helping trade with the sub-region and the exploitation of our mineral assets. ” Macky Sall, President of Senegal

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