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ZAMBIA RAILWAYS LIMTED Zambia As a Link of Africa Through Rail

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ZAMBIA RAILWAYS LIMTED Zambia As a Link of Africa Through Rail ZAMBIA RAILWAYS LIMTED Zambia as a link of Africa through Rail TABLE OF CONTENT 1. Brief about Zambia Railways Limited (ZRL) 2. ZRL Regional and Port linkages 3. Greenfield Regional and Port linkages 4. Trade Facilitation 5. Challenges being faced by railways in Africa 6. Possible solutions to Africa’s railway challenges 7. ZRL investment needs 8. Conclusion Brief about ZRL . ZRL is a parastatal railway organization under the Industrial Development Corporation (IDC), mandated to operate both freight and passenger trains. The company is headquartered in Kabwe, Central Province. The main workshops and the CTC are also in Kabwe. Strategic Vision: To be the preferred regional railway transport and logistics provider Strategic Mission: To provide sustainable and competitive rail transport and logistics solutions to customers and deliver shareholder value ZRL Regional and Port linkages Zambia is linked to almost all the trade corridors. Land linked (road and rail) to eight neighbors and beyond the country’s borders. We are a hub. The main trade corridors for Zambia by rail include: .The North-South Corridor .The Dar-es-Salaam Corridor .The Nacala Corridor .The Beira Corridor .Coming up is the Kazungula corridor Shortest route from Ndola is Dar-es-Salaam – 1,976km The longest route is Ndola-Durban – 2,951km. Greenfield regional and Port linkages Livingstone – Kazungula – Mosetse (about 440km). This will reduce transit time by about 12 days on the corridor – one stop border effect. Petauke to Beira (960km) - to connect to Mozambique; Kafue to Lions den - will reduce the distance by rail to South Africa and Mozambique ports by about 1,000km. Below is an example of distance reduction as a result of the project: Route Current distance (KM) Distance after project (KM) Ndola to Durban 2,951 1,951 Ndola to Beira 2,333 1,333 Ndola to Richards Bay 2,864 1,864 Nseluka to Mpulungu – about 175km (it will connect the country to Rwanda, Burundi and Eastern Congo) Greenfield regional and Port linkages Expected view when Kazungula Bridge construction is done Expected completion of Bridge construction is July, 2020. Trade facilitation Zambia railways is an enabler to Africa’s trade due to the country’s rail link to the rest of Africa and due to the railway merits which are, but not limited to: - Facilitation of inter-regional trade – major facilitator - Economies of scale, - Safety (less carnages), - Less pollution, - Less maintenance costs, - Link to heavy and light industries around the globe, - It is an engine to Industrialization – economic development Zambia’s political and favorable business and investment climate (ranked among the top-10 best African countries for business by Forbes report – 2015) also gives a conducive environment to enable African trade. Challenges being faced by railways in Africa There is no value addition to the traffic being moved - movement of low valued unfinished products. Railway connectivity is linear – just a straight line with limited connections. Lack of institutions to train Railway Engineers – isolation of railways from ‘academics’ and ‘intelligence’. Lack of adequate logistic chains to industries - connection by rail, road, air, or water. Today, most railways in Africa are lagging behind in adoption and use of new technology advancements – lack of innovation. Obsolete rolling stock and railway infrastructure. Weak relationships with Port Authorities and Operators Possible solutions to African railways’ Challenges Ensuring that all huge investments accommodate all modes of transport – to reduce logistics costs. Setting up of dry ports (ZRL has identified land in about 8 locations), and invest in greenfield projects. This will break linearity of railways, improve efficiency and reduce logistics costs. Investment in Railway Engineering and ICT Installation of products processors – value addition on products Reinforce relationship with Port Authorities and Port Operators. Zambia Railways Investment Needs Survival/Short Term (2018) Medium Term (2019-2020) Long Term (2021-2022) Grand Total Estimated Estimated Estimated Estimated S/No. Particulars Qty Cost (USD) Qty Cost (USD) Qty Cost (USD) Qty Cost (USD) 1 Rolling Stock Activities: 1.1 Purchase of Wagons 700 49,000,000 1,100 110,000,000 1,300 130,000,000 3,100 289,000,000 1.2 Purchase of New Locomotives 4 20,000,000 10 50,000,000 26 130,000,000 40 200,000,000 1.3 Periodical Overhaual of Existing 7 8,400,000 - - - - 7 8,400,000 1.4 Passenger Coaches - - 40 23,000,000 - - 40 23,000,000 1.5 Diesel Multi Units - - 4 32,000,000 - - 4 32,000,000 1.6 Subtotal Rolling Stock Activities 77,400,000 215,000,000 260,000,000 552,400,000 2 Workshop Equipment: 2.1 Wheel Re-Profiling Lathe 1 3,000,000 - - - - 1 3,000,000 2.2 Other Workshop Equipment - - - - 1 15,000,000 1 15,000,000 2.3 Subtotal Workshop Equipment 3,000,000 - 15,000,000 18,000,000 3 Rail Infrastructure Activities: 3.1 Concrete Sleepers 170,000 8,500,000 100,000 5,000,000 250,000 12,500,000 520,000 26,000,000 3.2 Ballast (Cubic Meters) 460,000m3 13,805,500 - - 140,000 4,200,000 600,000m3 18,005,500 3.3 91lb Rails (Km) 190Km 15,795,000 790Km 106,600,000 100Km 17,000,000 1,080 Km 139,395,000 3.5 Bridges and Station Buildings Various 2,300,000 - - Various 76,630,000 Various 78,930,000 3.6 Procurement of Inspection Trolleys - - 6 345,000 - - 6 345,000 3.7 Rail Track Support Equipment - - - - Various 12,000,000 Various 12,000,000 3.8 Rail Connectivity Various 10,000,000 Various 19,000,000 Various 27,000,000 56,000,000 3.9 Subtotal Infrastructure Activities 50,400,500 130,945,000 149,330,000 330,675,500 4 Signalling System & Others 4.1 Signalling/Telecoms System 1 10,000,000 - - - - 1 10,000,000 4.2 Working Capital 10,000,000 10,000,000 4.3 Implementation of PPP Projects 7 1,200,000 - - - - 7 1,200,000 4.4 Subtotal Signalling & Others 21,200,000 - 21,200,000 5 Grand Total 152,000,500 345,945,000 424,330,000 922,275,500 Conclusion Zambia has a strategic location for trade within Africa and the rest of the World Picking a lesson from the Industrial Revolutions, the railway is integral to trade and economic development. African Governments should consider railway developmental projects as priority to enable an all inclusive economic development. Investing in high speed trains will bring about efficiency, improved ICT, and economies of scale. Engineering has a vital role to play in railway development and thereby national development. There is need to strengthen partnerships between Universities and railway companies in Africa. Some greenfield projects in Zambia have been identified to reinforce linkages and/or cut on distances to selected ports. Railways Operators must strengthen their relationship with Port Operators Africa must unite. Thank you for your attention!!.
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