Transnet SOC Ltd © LTPF 2017 ACRONYMS AND ABBREVIAIONS
AfDB African Development Bank AICD Africa Infrastructure Country Diagnostic ARTIN African Regional Transport Infrastructure Network AUC African Union Commission Bbl/d Billion barrels per day (oil) BBR Beitbridge Bulawayo Railways BR Botswana Railways bcm Billion cubic metres per year CCFB Companhia Dos Caminhos De Ferro Da Beira CDN Railway Systems of Northern Mozambique (Corredor de Desenvolvimento do Norte) CEAR Central East African Railways CFB Lobito Benguela Railways (Caminhos de Ferro de Benguela) CFL Luanda Railways (Caminhos de Ferror de Luanda) CFMa Namibe Railways (Caminhos de Ferror de Namibe) CFM Railways and Ports of Mozambique (Portos e Caminhos de Ferro de Mozambique) CFM-CENTRA L The Beira Railroad CFMK Chemin de Fer Matadi Kinshasa CFM-NORTH The Nacala Corridor (Also see CDN) CFM-SOUTH The Maputo Railroad CFN Moçãmedes Railways (Caminhos de Ferro Namibe) CPCS CPCS Transcom International Limited CPMZ Companhia Pipeline Moçambique Zimbabwe DRC Democratic Republic of the Congo GDP Growth Domestic Product LCA Logistics Capacity Assessment mscfd Million standard cubic foot per day (measure of gas flow) mtpa Million ton per annum NOCZIM National Oil Company of Zimbabwe NPCA NEPAD Planning and Coordinating Agency NRZ National Railways of Zimbabwe PAP Planned action plan PIDA Programme for Infrastructure Development in Africa RSZ Railway Systems of Zambia SADC Southern African Development Community scf Standard cubic foot (a measure of quantity of gas) SETRAG Societe d’Exploitation du Transgabonais SNCC Societe Nationale des Chemins de Fer du Congo SR Swaziland Railways TAZAMA Tanzania Zambia Mafuta Pipeline TAZARA Tanzania and Zambia Railway Authority Tcf Trillion cubic feet TMSA Trademark SA UNCTAD United Nations conference on trade and development ZRL Zambian Railways Limited
Transnet SOC Ltd © LTPF 2017 TABLE OF CONTENTS
1. INTRODUCTION ______345 2. OVERVIEW OF DEMAND ______345
2.1 TOTAL FREIGHT SURFACE FLOWS (SADC COUNTRIES) ______345
2.1.1 SOUTH AFRICA CROSS BORDER TRAFFIC (TRANSNET TRANSPORTATION MODEL) ______345 2.1.2 SUB SAHARAN AFRICA TOTAL ROAD AND RAIL FLOWS ______346 2.1.3 CRUDE OIL PIPELINE FLOWS ______354 2.2 PORTS (MAJOR AFRICAN PORTS) ______357
2. OVERVIEW OF CONDITION AND CAPACITY STATUS QUO ______359
2.1 RAIL ______359 2.2 PORTS ______364 2.3 PIPELINES ______367
3. OVERVIEW OF REGIONAL CORRIDOR DEVELOPMENT STRATEGIES ______370
3.1 KEY ISSUES AND TRENDS HAMPERING DEVELOPMENT ______370 3.2 LESSONS LEARNED ______371 3.3 OVERVIEW OF SADC CORRIDORS ______371
3.3.1 SALIENT ISSUES NEGATIVELY IMPACTING ON CORRIDOR OPERATIONS ______379 3.4 CORRIDOR DEVELOPMENTS AND PLANS ______380 3.5 FORECASTED REGIONAL DEMAND ______382 3.6 STRATEGIC RAIL PROJECTS ______383 3.7 STRATEGIC PORT PROJECTS ______385 3.8 STRATEGIC PIPELINE PROJECTS______386
4. TRANSNET AFRICA STRATEGY ______387
Please note this Long Term Framework Plan is not a business or operational plan, and is unconstrained to capital planning and independent to other more detailed Transnet business and operating division (OD) plans. The LTPF is only a planning tool, to broadly guide Transnet and all external and public stakeholders.
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1. INTRODUCTION
One of the overarching objectives for Transnet as contained in the Shareholder compact is to “Integrate South Africa with the region and the rest of the continent”. In addition economic developments in the Southern African region present enormous opportunities for Transnet, as one of the major players in the national freight system, in the medium to longer term. The World Bank’s Africa Pulse report of October 2013 reports that economic activity remains strong in much of sub Saharan Africa, underpinned by robust domestic demand. The economic outlook for the region seems to be very positive by all accounts. More than a decade of growth has helped to lower poverty, but the twin goals of ending extreme poverty and boosting shared prosperity call for a sharp ramping up of effort. The World Bank projects GDP growth in sub Saharan Africa reflected to be 4, 9 percent in 2013, rising to 5, 3 percent in 2014 and 5,5 percent in 2015. In addition countries in SADC such as Mozambique, Zambia, Angola and Tanzania are amongst the fastest growing in the world even though it is from a low base.
Transnet has therefore embarked on a much more focused African strategy. This chapter provides a view on the current infrastructure within the region as well as an overview on freight demand and regional corridor development strategies and plans. Major developments and opportunities concerning rail, port and pipeline infrastructure are highlighted. A very brief view is presented of the Transnet strategies and development plans for Africa.
2. OVERVIEW OF DEMAND
The Regional Freight Demand Model (RFDM) 2015 investigates the economies of 17 countries in sub Saharan Africa. These countries are namely: Angola, Botswana, Burundi, Congo, Democratic Republic of the Congo (DRC), Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, South Africa, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. The objective is to forecast the demand for the aforementioned countries over a 31 year forecast period to support the development of transport infrastructure projects with a good information system. The RFDM methodology can be divided into three components, namely the compilation of a Social Accounting Matrix (SAM) for each of the countries. Secondly, the calculation of the volumes per commodity for the base year takes place, and thirdly the forecasting thereof.
2.1 TOTAL FREIGHT SURFACE FLOWS (SADC COUNTRIES)
2.1.1 SOUTH AFRICA CROSS BORDER TRAFFIC (TRANSNET TRANSPORTATION MODEL)
The TTM (Transnet Transportation Model) is a gravity flow model that produces flows of freight on the rail network, cross border and through the port system. Inputs to the model are the RFDM (Freight Demand Model) origin destination pairs, independent views on strategic commodities and network data.
The cross border traffic under review here are total surface flows, irrespective of mode, (road, rail, pipelines and air). Only countries which border South Africa are under consideration.
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2013 - 2044 SA cross border traffic (mtpa)
Country Border Post 2013 EX to 2044 EX to 2013 IM from 2044 IM from Botswana Ramatlhabama 2.61 5.44 0.95 5.55 Lesotho Maseru 3.03 6.82 0.38 0.90 Mozambique Komatipoort 8.63 27.91 0.18 0.73 Namibia Nakop 0.46 0.85 0.46 0.85 Swaziland Mananga 8.44 29.79 8.51 29.84 Zimbabwe Beitbridge 3.25 7.90 2.29 4.53 2013 – 2044 SA cross border traffic (mtpa)
2013 – 2044 SA cross border traffic (mtpa)
2.1.2 SUB SAHARAN AFRICA TOTAL ROAD AND RAIL FLOWS
The demand data reflected here refers to total road, rail and pipeline freight surface flows, and no attempt has been made at this stage to establish what market share could be targeted by rail. The data is categorised into three sectors, agriculture, manufacturing and mining.
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DOMESTIC FREIGHT TRAFFIC
In 2013 the biggest domestic sector traffic was made up by mining at 357mtpa, with most of the volumes emanating from South Africa. This is expected to grow to 1 127mtpa by 2044. Agricultural domestic traffic was at 327mtpa in 2013 and is projected to grow to 1 100mtpa in 2044. The biggest growth prospects are in manufactured goods, forecasted to grow from 284mtpa in 2013 to 1 110mtpa by 2044. Most of the growth in manufactured goods volumes is seen in South Africa, Angola, DRC, Tanzania, Uganda and Mozambique.
Agriculture Manufacturing Mining
Country 2013 2019 2044 2013 2019 2044 2013 2019 2044 Angola 18 713 276 24 835 964 87 161 273 24 053 687 32 584 586 140 301 524 5 768 111 7 658 607 18 959 538 Botswana 405 391 413 694 1 003 351 6 850 537 7 928 349 18 246 113 9 040 078 9 543 249 28 271 916 Burundi 5 471 270 6 391 000 13 698 039 2 063 999 2 435 678 5 680 745 724 958 814 558 2 332 736 Congo 2 761 734 3 106 446 5 414 262 5 103 367 5 927 462 14 665 868 4 794 012 6 608 048 14 630 860 DRC 28 800 105 44 087 587 143 634 354 13 656 086 22 835 204 112 124 678 4 024 163 5 479 846 31 343 315 Kenya 34 263 426 39 150 089 81 782 057 21 393 295 23 861 766 63 736 112 1 980 513 3 393 678 10 222 463 Lesotho 275 531 367 275 571 498 2 009 867 2 542 066 4 701 993 105 146 126 764 745 933 Malawi 22 372 678 28 227 192 83 792 279 3 670 505 4 686 788 21 202 084 2 925 691 3 343 637 7 647 218 Mozambique 22 308 397 28 624 369 101 318 647 11 225 247 15 451 039 67 902 474 6 138 734 8 552 105 35 824 794 Namibia 713 399 1 070 925 3 317 452 5 200 361 8 421 629 29 388 901 891 881 2 801 699 5 157 479 Rwanda 13 993 872 18 296 699 62 341 684 2 943 072 4 105 361 22 204 082 780 997 1 074 949 3 366 759 South Africa 70 286 989 81 299 181 148 889 095 136 474 820 163 311 858 360 483 141 305 565 905 377 841 235 895 713 667 Swaziland 5 750 037 6 920 092 10 376 100 2 781 967 3 104 278 8 197 063 774 398 845 678 1 683 073 Tanzania 46 759 537 60 669 486 178 197 708 19 989 351 29 819 237 103 200 035 2 398 419 3 295 439 17 706 233 Uganda 33 685 089 53 215 376 102 787 528 11 473 284 23 185 213 59 640 620 1 720 346 3 631 265 12 378 781 Zambia 12 280 558 15 692 691 40 158 248 9 903 976 13 668 333 46 768 293 4 404 048 5 131 368 18 806 419 Zimbabwe 7 977 650 10 795 557 31 809 546 4 913 963 6 931 071 31 755 473 5 230 588 5 943 338 22 667 339 Grand Total 326 818 938 423 163 623 1 096 253 122 283 707 385 370 799 918 1 110 199 200 357 267 987 446 085 464 1 127 458 525
Domestic freight traffic
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Domestic freight traffic per sector: 2013 2044
INTRA REGIONAL IMPORTS AND EXPORTS
INTRA REGIONAL IMPORTS Manufactured goods imports make up the biggest share of total goods imported. The biggest importer of these goods is South Africa. Total manufactured goods imports are projected to grow from 19mtpa in 2013 to 55mtpa in 2044.
South Africa is the biggest importer of agricultural goods in the region. Intra regional imports of these goods are projected to steadily grow to 1,2mtpa by 2044. Mining imports are driven by South African and Zambian demand. In 2013 the total intra regionally traded mining goods were 4,8mtpa and are expected to grow to 11,6mtpa in 2044.
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Agriculture Manufacturing Mining
Country 2013 2019 2044 2013 2019 2044 2013 2019 2044 Angola 111 272 126 601 236 183 974 414 1 158 559 2 338 903 31 610 36 568 147 219 Botswana 374 731 397 861 514 274 1 897 076 2 158 163 4 069 254 165 478 189 448 335 032 Burundi 34 573 39 490 69 465 207 142 246 638 560 382 2 864 3 381 8 788 Congo 8 062 9 053 15 078 147 630 178 954 422 305 2 057 2 795 10 136 DRC 74 019 104 127 385 015 1 537 288 1 984 451 6 080 200 71 532 100 660 426 308 Kenya 138 285 169 611 372 575 873 167 1 047 274 2 285 305 100 211 119 670 174 145 Lesotho 218 225 225 119 259 489 756 676 866 278 1 381 988 53 340 62 608 96 378 Malawi 136 079 150 780 511 082 534 900 635 813 1 545 982 44 010 48 421 143 996 Mozambique 155 857 164 220 279 999 1 450 466 1 767 859 4 334 799 45 001 57 092 93 930
Namibia 154 307 168 235 259 848 1 741 235 2 046 810 4 091 118 77 935 93 512 201 911 Rwanda 92 225 116 480 413 232 617 006 805 224 2 890 304 8 455 9 935 31 102 South Africa 597 578 666 692 1 243 477 4 063 062 5 076 680 13 053 954 3 032 266 3 469 246 6 993 792 Swaziland 191 458 197 343 233 751 729 755 830 291 1 498 645 118 077 138 911 199 722 Tanzania 96 616 122 586 392 230 542 176 683 614 1 786 335 11 641 17 661 25 161 Uganda 50 372 62 775 126 330 872 065 839 375 2 081 305 96 358 116 587 226 943 Zambia 41 994 48 377 88 308 1 595 625 1 929 507 4 451 492 909 054 1 212 017 2 066 859 Zimbabwe 439 721 497 742 1 027 544 1 109 944 1 281 775 2 609 726 116 913 151 208 448 499 Grand Total 2 915 372 3 267 089 6 427 879 19 649 628 23 537 267 55 481 997 4 886 804 5 829 719 11 629 922 Intra regional imports
Intra regional imports per sector: 2013 2044
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INTRA REGIONAL EXPORTS South Africa is the biggest intra regional exporter of goods in the region across the agricultural and manufacturing sectors, while Angola dominates the mining sector under the study.
Total manufactured goods are the most traded goods in this regard and are expected to grow from 20mtpa to 55mtpa in 2044. Mining exports from Angola and South Africa drive the growth in this sector. Intra regional mining exports are forecasted to grow from about 4,9mtpa in 2012 to about 11,6mtpa in 2044.
Agricultural volumes show steady growth, expected to grow from about 3mtpa in 2013 to 6,4mtpa in 2044.
Agriculture Manufacturing Mining
Country 2013 2019 2044 2013 2019 2044 2013 2019 2044 Angola 3 4 12 4 811 5 157 7 045 2 316 043 2 706 798 6 006 861 Botswana 7 591 8 264 16 727 213 770 265 308 476 576 333 944 388 463 787 315 Burundi 862 1 093 3 053 7 524 9 106 36 489 17 23 85 Congo 1 2 3 10 085 13 087 36 205 152 191 496 DRC 926 1 137 3 099 93 109 120 327 359 218 485 745 725 414 934 841 Kenya 57 455 67 288 139 721 1 074 392 1 145 983 3 293 473 60 092 71 810 167 180 Lesotho 1 579 1 669 2 142 84 953 109 416 299 185 24 882 26 556 34 225 Malawi 60 528 72 804 204 912 158 056 203 832 650 973 10 270 15 999 21 582 Mozambique 153 704 170 676 443 441 2 829 790 3 574 306 9 734 419 129 046 140 292 284 053 Namibia 247 889 291 375 601 661 402 847 484 653 1 132 410 379 157 432 330 955 144 Rwanda 35 625 44 372 120 296 130 681 162 050 519 055 1 872 2 361 6 229 South Africa 1 415 485 1 487 626 1 861 175 11 168 158 13 052 611 26 082 338 746 331 882 019 1 461 972 Swaziland 47 446 49 290 57 938 513 894 653 800 1 759 160 45 444 48 341 61 430 Tanzania 110 887 140 781 371 869 669 660 802 067 2 401 907 78 120 99 091 223 959 Uganda 230 582 299 565 977 241 961 905 1 288 485 4 092 881 3 630 4 690 17 492 Zambia 345 765 418 805 1 170 806 840 124 1 046 843 3 092 615 46 100 52 358 115 013 Zimbabwe 199 044 212 339 453 782 485 869 600 235 1 508 048 225 962 232 981 552 044 Grand Total 2 915 372 3 267 089 6 427 879 19 649 628 23 537 267 55 481 997 4 886 804 5 829 719 11 629 922 Intra regional exports
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Intra regional exports per sector: 2013 2044
IMPORTS AND EXPORTS OUTSIDE THE REGION
IMPORTS OUTSIDE THE REGION Manufactured goods make up the biggest percentage of all goods imported into the region. South Africa and Angola import the bulk of these. In total, importing of manufactured goods will grow from 87mtpa in 2013 to 348mtpa in 2044.
South Africa is the main driver of demand for mining imports into the region. Mining imports are projected to grow from about 30mtpa in 2013 to about 90mtpa in 2044, while agricultural imports are expected to grow from about 10mtpa in 2012 to 37mtpa in 2044.
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Agriculture Manufacturing Mining
Country 2013 2019 2044 2013 2019 2044 2013 2019 2044 Angola 893 108 1 173 919 4 156 235 9 287 700 12 317 042 40 631 391 698 282 859 471 2 824 045 Botswana 186 072 263 655 756 982 2 554 192 3 140 449 7 229 561 124 231 139 858 342 832 Burundi 98 581 111 927 205 076 529 374 595 970 1 200 500 47 722 76 534 175 672 Congo 559 908 638 833 1 258 975 3 239 681 3 943 473 9 979 801 167 028 288 700 791 136 DRC 401 296 563 976 2 258 239 1 435 497 2 291 830 14 820 360 40 866 74 617 421 017 Kenya 1 669 157 2 086 779 4 432 717 9 879 570 11 550 579 29 199 240 1 106 262 1 356 132 4 648 368 Lesotho 150 674 226 333 416 468 746 093 1 073 381 2 995 487 40 599 58 455 383 446 Malawi 325 215 455 665 2 209 783 1 566 379 2 135 007 6 460 853 678 735 777 169 3 039 516 Mozambique 662 908 913 369 4 423 796 5 429 120 7 420 407 40 127 726 81 845 132 611 743 290 Namibia 91 367 190 702 895 744 1 603 869 2 461 867 11 130 921 33 841 47 529 333 160 Rwanda 164 848 213 742 702 251 766 992 1 035 345 4 175 130 113 102 143 574 462 456 South Africa 3 220 894 3 750 034 7 133 494 31 978 597 39 919 801 98 286 955 25 657 336 29 577 820 61 829 738 Swaziland 119 184 143 248 347 741 540 568 643 921 1 814 196 77 224 90 422 252 922 Tanzania 804 744 942 243 3 862 760 7 362 539 11 120 855 36 093 667 431 491 1 042 336 6 728 808 Uganda 301 765 461 500 1 285 862 5 334 520 7 184 832 19 582 270 242 074 416 033 1 339 618 Zambia 62 373 86 498 275 894 2 704 736 3 695 622 13 616 728 948 192 1 330 043 4 515 117 Zimbabwe 408 790 689 458 2 870 702 1 954 993 2 546 470 11 001 375 274 272 416 585 1 368 504 Grand Total 10 120 884 12 911 882 37 492 719 86 914 419 113 076 854 348 346 161 30 763 100 36 827 891 90 199 645 Imports outside the region
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Imports outside the region per country and freight sector: 2013 2044 EXPORTS TO OUTSIDE THE REGION Mining, as expected, makes up the biggest portion of the goods exported from the region. In 2013 almost all mining exports emanated from South Africa, but in 2043 the picture changes, even though South Africa will still be dominant, Angola, Botswana and Mozambique are expected to develop to be significant exporters by this time.
Mining exports are expected to grow from 262mtpa in 2013 to 801mtpa in 2044.
Manufacturing and agricultural sector exports are projected to grow from 31mtpa in 2013 to 132mtpa in 2044 and 10mtpa to 38mtpa respectively.
Agriculture Manufacturing Mining
Country 2013 2019 2044 2013 2019 2044 2013 2019 2044 Angola 12 396 14 311 25 666 1 505 822 1 797 155 4 718 027 80 895 382 109 133 724 234 016 867 Botswana 1 917 2 321 6 650 228 201 279 680 546 506 87 927 1 983 118 70 179 882 Burundi 1 441 1 888 5 763 76 809 110 580 492 994 4 075 5 476 18 762 Congo 1 581 2 040 6 887 604 422 821 754 2 980 641 10 200 052 14 107 283 29 295 177 DRC 4 811 7 420 35 395 1 243 657 1 875 975 10 424 112 944 252 1 534 785 14 415 071 Kenya 1 088 183 1 277 683 2 802 420 1 589 651 3 122 242 12 014 642 358 762 433 648 1 209 755 Lesotho 2 114 5 590 27 338 67 874 111 176 730 908 1 047 13 074 197 913 Malawi 433 684 536 439 2 485 553 477 963 660 009 2 745 669 40 127 63 461 242 434 Mozambique 373 853 549 549 4 280 569 1 018 707 2 668 785 17 155 472 4 444 458 7 869 932 78 195 145 Namibia 308 650 538 719 1 470 108 304 909 482 927 2 538 461 710 133 1 145 819 6 005 019 Rwanda 25 493 36 043 149 428 232 259 331 344 1 408 915 2 836 4 553 28 157 South Africa 5 549 811 5 979 550 8 264 943 19 756 820 23 934 722 52 889 403 161 905 822 212 873 568 356 077 262 Swaziland 33 025 57 596 291 974 370 591 572 305 3 048 591 997 176 1 475 310 3 344 529 Tanzania 1 000 215 1 468 937 6 387 950 751 415 1 226 466 5 192 452 215 644 330 470 1 631 145 Uganda 345 780 942 451 9 048 702 930 771 1 994 239 7 495 910 17 647 64 948 626 452 Zambia 569 659 783 455 2 213 341 1 240 791 1 644 909 4 910 578 1 323 221 1 880 242 5 594 591 Zimbabwe 328 475 389 496 1 060 231 408 117 543 521 2 777 730 62 282 69 799 571 937 Grand Total 10 081 086 12 593 488 38 562 917 30 808 778 42 177 787 132 071 013 262 210 844 352 989 210 801 650 100 Exports outside the region
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Exports outside the region per country and freight sector: 2013 2044
2.1.3 CRUDE OIL PIPELINE FLOWS
Pipeline transportation is both the route and the vehicle, and it is permanently connected to terminals, which facilitate freight storage. This feature makes it the only mode of transport that does not involve handling costs. Taking cognisance of the fact that pipeline infrastructure is extremely capital intensive and that it has an unprecedented longevity; pipeline transport enjoys the highest level of economies of scale of all modes of transport. Commercial transportation of crude oil and petroleum products by pipeline has been receiving increased attention worldwide and there are a number of planned key developments and projects in Africa as a whole.
DOMESTIC
Congo had the biggest crude domestic movements for 2013 at about 4.2mtpa, followed by Angola at 4,1mtpa. In 2044 Angola’s volumes are expected to grow to 10mtpa. With the recent discoveries of oil reserves within the East Africa region, Kenya and Uganda’s crude domestic movements are expected to grow to about 0.5mtpa and 5mtpa respectively in 2044.
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Domestic Crude 2013 2044
IMPORTS AND EXPORTS OUTSIDE THE REGION
Regional imports are made up mostly of crude imports with some natural gas. South Africa is the biggest importer of both commodities. Crude imports by SA were about 22mtpa in 2012 and expected to grow to about 64mtpa in 2043. SA is projected to grow the natural gas imports to 1,1mtpa in 2043, from the current 0,35mtpa. Tanzania shows significant growth in crude imports as it is currently not importing any volumes but projected to import 14,5mtpa by 2043.
Crude imports from outside the region
EXPORTS
The exports of the commodities under study are dominated by crude. The crude exports from the country are expected to grow
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from about 78mtpa in 2012 to 195mtpa by 2043. Mozambique and Congo show the biggest growth prospects in natural gas, they are expected to grow volumes to 1,3mtpa and 10,2mtpa respectively.
Crude exports per country from outside the region
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2.2 PORTS (MAJOR AFRICAN PORTS)
The table below provides forecasted growth in TEU numbers and total tonnage volume for selected ports in Africa. It is estimated that the number of TEUs will grow at an average CAGR of 4.2% per annum and the total volumes handled at 5.3% per annum.
African Po rts # of TEUs ('000) Total tons ('000) Country Name Port Name 2013 2044 2013 2044
Algeria Algiers 737 1 536 13 616 28 361 Skikda 90 161 25 323 52 743 Bejaia 249 445 20 277 42 234 Angola* Luanda 913 2 105 11 300 32 534 Cabinda 12 35 1 000 2 879 Lobito 42 121 2 368 6 819 Namibe 18 52 961 2 767 Benin Cotonou 348 2 325 6 800 74 486 Cameroon Douala 350 2 007 10 592 96 010 DRC* Matadi 110 878 2 000 27 307 Congo* Pointe Noire 509 2 543 7 652 58 394 Cote d'Ivoire Abidjan 610 2 466 16 643 137 688 Djibouti Djibouti 795 2 676 7 103 45 879 Egypt Damietta 1 000 2 685 28 900 100 933 Alexandria 1 519 3 618 49 400 172 529 Port Said 3 910 10 788 36 700 128 175 Sokhna 600 1 611 7 400 25 844 Gabon Libreville 162 738 6 500 44 058 Gambia Port of Banjul 13 160 1 755 20 912 Ghana Tema 842 2 591 12 181 46 717 Takoradi 52 127 5 456 16 793 Guinea Conarky 150 374 4 500 55 283 Kenya* Mombasa 894 2 841 22 133 70 333 Liberia Monrovia 86 492 2 271 20 632 Buchanan 0 0 2 662 24 181 Libya Benghazi 156 1 524 2 500 24 390 Morocco Casablanca 825 2 609 22 672 97 361 Jorf Lasfar 0 0 17 804 76 455 Mohammedia 0 0 11 924 51 206 Tanger Med 2 600 9 885 30 000 128 831 Mozambique* Maputo 113 917 17 000 100 231 Beira 160 840 1 921 43 689 Nacala 90 471 1 354 30 795 Pemba 8 62 131 1 086 Namibia* Walvis Bay 302 1 436 6 219 46 524 Luderitz 3 14 335 1 594 Nigeria Lagos 1 155 4 695 21 000 85 358 Onne 216 654 27 000 109 746 Senegal Dakar 402 1 653 11 870 71 005 Sierra Leone Freetown 90 631 1 412 16 442 Pepel 0 0 12 100 140 899 Sudan Sudan 447 2 113 10 034 71 381
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Tanzania* Dar es Salaam 553 3 786 12 531 85 777 Tanga 10 48 458 3 132 Mtw ara 15 67 204 1 394 Togo Lome 311 1 872 8 699 83 586 Tunisia Rades 424 1 142 6 296 22 094 Sfax 39 102 5 017 17 605 * countries where crude oil volumes were excluded from bulk figures Africa ports demand: 2013 – 2044
The total demand at the 14 ports that serve the region (excl. South African ports) was estimated at 87 million tons in 2013. This is forecasted to grow to 511 million tons in 2044 at a CAGR of 5.8% per annum. Crude volumes have been excluded from the totals.
In 2013 the distribution of imports and exports at these ports were 74% imports and 26% exports. This is set to change significantly with imports’ share declining to 54% and exports’ rising to 46% in 2044. The table below gives an indication of the import/export ratio per major port in the SADC region, excluding South Africa.
Country Port Import/Export ratio
2013 2044 Cabinda 84/16 89/11 Lobito 90/10 85/15
Angola Luanda 86/14 88/12 Namibe 88/12 87/13 Congo Pointe Noire 88/12 81/19 DRC Matadi 58/42 61/39 Kenya Mombasa 82/18 67/33 Beira 25/75 11/89 Maputo 64/36 40/60 Mozambique Nacala 72/28 60/40 Pemba 71/29 54/46 Luderitz 56/44 54/46 Namibia W alvis Bay 57/43 31/69 Tanzania Dar es Salaam 75/25 69/31
Import /Export ratio per country
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2. OVERVIEW OF CONDITION AND CAPACITY STATUS QUO
The objective of this portion of the chapter is to provide an overview of the current status and capacity of the railways and pipelines within the SADC region, and most of the major container ports in Africa. Most of the information reflected here was extracted from various source documents and are referenced accordingly.
2.1 RAIL
Seven interconnected national railways form an extensive and well developed regional rail network in Southern Africa, spanning half a dozen countries and extending from the Democratic Republic of Congo all the way to Durban in Southern Africa as indicated in Figure 1. This represents a far higher level of regional rail interconnection than has been achieved elsewhere in Africa, where a few bi national railways exist but systems are otherwise disconnected.
African Railway Infrastructure Source: www.skyscrapercity.com
Unlike in other parts of Africa, the rail network in Southern Africa is integrated with the use of a uniform Cape gauge, as seen in the figure below.
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Figure 2: Africa and the Sub Saharan regional railway network Source: www.skyscrapercity.com
Railway gauges within the Sub Saharan African region predominantly consist of Cape gauge with three countries in east Africa (i.e. Tanzania, Kenya and Uganda) with metre gauge rail systems and one country (i.e. Gabon) with a standard gauge rail system. North and West African railways are individual systems from the coasts to inland, as this is mainly mining areas.
Key factors for selecting a rail gauge are;
• Network connectivity with neighbouring countries • Network interoperability especially for Transnet/PRASA shared infrastructure and branch line private operators • Stand alone lines Select the highest specifications for load or speed
Of the total 55 000km of track in sub Saharan Africa, 40% of the operating network and 70% of the traffic are captured by Transnet Freight Rail in South Africa. Railways in Southern Africa carry much more freight than in all the other regions of Africa put together. Overall, Southern Africa handles around 74% of sub Saharan Africa’s freight traffic (including coal and minerals) and more than 80% of the total net tonne kilometres. Southern Africa also dominates the passenger business, carrying more than 70% of total passenger kilometres, largely because of its extensive commuter passenger services operated by PRASA.
The current regional railway systems within the SADC region are operating well below their original design capacity. Furthermore the railway systems have severe capacity constraints because of poor rail infrastructure and rolling stock availability.
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The design capacity and current throughput as per country have been updated subsequent to latest available information and completed studies. Transnet’s perspective on the capacity of each system was determined in the Regional Assessment Services for Rail Networks, Ports and Pipelines study (2014/2015) and is listed in the following table. Various colours used to compare Transnet’s perspective to the Design Capacity on the line are as follows:
• Green – Transnet’s perspective greater than Design Capacity • Orange Transnet’s perspective within 80 100% of Design Capacity • Red Transnet’s perspective less than 80% of Design Capacity
Lines (km) Network capacity
Current Transnet Country Railways Design capacity Total Operating throughput Perspective (mtpa) (mtpa) (mtpa)
CFB 1 331 1 331 2.5 0.16 6.5 Angola CFL 479 479 2.5 0.26 11 CFMa 907 512 2.5 0.62 6 Botswana BR 888 888 4 2 7 Congo CFCO 797 797 4 3.5 5.5 SNCC 3 669 3 669 2 0.1 1,2 DRC CFMK 400 Gabon SETRAG 649 649 15 3.7 4 Kenya KCR 2210 2210 4.2 8 Malawi CEAR / CDN 820 820 5 0.5 4 CFM Central 987 314 7 6.5 5 Mozambique CDN 871 611 7 0.2 2,8 CFM South 1 129 1 129 15 2 19 Namibia TransNamib 2 559 1 683 2 1.8 3 Swaziland SR 365 365 11 TRC 2 707 2 707 3 0.7 4 Tanzania TAZARA 921 921 5 0.22 3 Uganda UCR 1241 1241 4.2 2.7 TAZARA 939 939 5 0.22 2.7 Zambia ZRL 163 3 0.5 ZRL 810 810 10 NRZ 3 077 2 759 18 2.5 5.5 Zimbabwe BBR 150 150 11
SADC Rail network design capacity and current throughput
Poor maintenance over extended periods of time has caused the deterioration of many sections of the track, as reflected in Figure 3, and resulted in a loss of competitiveness and rolling stock productivity. While such inefficiencies can be tolerated on low volume feeder lines, and may be the only way some can be viably operated, they are a major handicap when competing against some of the modern roads being constructed along major corridors.
Henceforth the available capacity on the railway systems cannot be exploited without substantial capital investment in rehabilitation and repairs and the procurement and maintenance of sufficient and reliable rolling stock.
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Figure 3: Rail Track Condition
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The table below reflects the current condition of the various line sections based on the latest source information and studies.
The rail condition is defined as follows: Good – Properly maintained and/or recently upgraded Fair – Requires upgrading or some maintenance Bad – Line is in a poor condition and/or damaged
Country Railway Track condition assessment
Angola Rehabilitated by China up to Luau. Reopened in 2012/13. Good. Link with Dilolo in Lobito – Benguela railway DRC still need to be constructed
Luanda railway Rehabilitated by China and in fair to good condition Namibe railway Rehabilitated by China and in fair to good condition Botswana Botswana Railway Rail network generally in a good condition Congo CFCO Rail network generally in bad condition
DRC Rail network generally in bad to fair condition SNCC Track between Kolwezi and Dilolo overgrown and not in use
CFMK Rail network generally in bad condition Gabon SETRAG Rail network generally in a fair condition Zimbabwe NRZ / BBR Rail network generally in a fair to good condition Kenya KCR Rail network generally in a fair condition Mozambique Beira to Machipanda section of the Beira corridor in poor condition CFM Central Sena line from Moatize to Beira in good condition since it is being rehabilitated
Section between Ressano Garcia to Maputo generally in good condition CFM South Section between Maputo and Chicualacuala generally in good condition Section between Goba and Machava in good condition
Nacala to Cuambo in good condition CFM North Rest of network in poor condition (CDN) Nacala to Nkaya Junction being upgraded. New line being constructed between Moatize and Nkaya Junction
Malawi Generally fair to good CEAR / CDN Section from Dona Ana bridge to Luchenza closed since 1985 CEAR concession responsible to upgrade lines
Namibia TransNamib Track generally in good condition Swaziland Swazirail Generally in fair condition
Tanzania Tanzania Railway Company Generally fair with northern network from Tanga to Arusha not in use
Uganda UCR Rail network generally in a fair condition Zambia ZR Sections of track bad, fair to good condition Zambia/ Track in poor condition Tanzania TAZARA Track in Tanzania upgraded to higher axle load whilst track in Zambia still at a lower axle load
SADC Rail network condition summary Source: TradeMark – Revamping the Regional Railway System in Eastern and Southern Africa Region 2012 and SADC RIDMP 2012
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2.2 PORTS
As expected for such a vast continent the port system is extensive and built to serve the needs of the individual continental countries and their natural hinterlands. The port network can be divided into the following:
• Northern African ports which are more Eurocentric and act as transhipment ports for the Mediterranean markets. • West African ports focused on moving cargoes into West Africa and the Sahel nations as well as primarily agricultural exports. • Southern African ports dominated by South Africa but more focused on a variety of imports and mineral exports. • East African ports which are dominated by three ports and have a number of corridors flowing from them.
The high average growth rate in Africa over the last few years has had a marked effect on the utilisation and efficiency of these ports and many are operating on or around their design capacity. This has created the opportunity for new operations in current ports and even the development of new ports on the African coastline, especially in high potential markets such as Nigeria and Mozambique.
Africa container growth is 2% higher than worldwide average. As Africa grows the capacity in ports (current and new) will increase by about 8% while demand will increase by about 6% on average per annum. As Africa goes into more developments the capacity utilisation will decrease over the next few years. This will create a 64% 65% utilisation factor for African ports, not far from the 70% capacity utilisation benchmark, which implies looking at increased developments. There is also a need for hub ports with good water depth in the region.
Worldwide half the number of ships in fleets will be larger than 10 000 TEUs and this will bring about the following:
• Growth in scale of economies • Alliances with other shipping lines • Cascading of replaced medium ships onto smaller trades causing a shake up in ports needing to hold greater ship sizes • Current volumes of containers in Africa are split as: o North Africa 45% driven by transhipments in the Mediterranean o East Africa 12% o West Africa 21% o Southern Africa 22%
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The following map (Figure 4) indicates the location of the African ports and reflects the ports by size in terms of TEUs handled:
African ports by size Source: African Development Report 2010 – Port Development in Africa
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Below is a summary of some key African container ports, their container terminal capacities, and capacity constraining factors.
Capacity Country Port Container operator Capacity issues (TEU’s) Angola Luanda Sogester/Unicargas 300 000 Containers stored off site Angola Cabinda Port Authority 50 000 Berth depths Angola Lobito Port Authority 40 000 Berth depths Angola Namibe Port Authority 120 000 Berth depths Congo DRC Matadi Port Authority 100 000 Storage limitations and equipment productivity Republic of Pointe Noire Bolloré 550 000 Store containers off site Congo Gabon Owendo/Libreville Bolloré Africa 150 000 Limited by storage space at port Maputo Port Development Mozambique Maputo 150 000 Limited by ships depth Company Mozambique Beira CFM & Cornelder 100 000 Limited by ship's size and depth Mozambique Nacala Portos de Norte 45 000 Lack of equipment and storage space Mozambique Pemba CFM North 50 000 Capacity limited by depth at port Namibia Walvis Bay Namport 500 000 Set by type of ships to visit port Namibia Lüderitz Namport 50 000 Limited quay walls and depth at berth Tanzania Port Authority, Tanzania Dar es Salaam 250 000 Need more off site storage of containers TICS
In terms of bulk ports there are very few ports in sub Saharan Africa that focus on dry bulk products rather than on general cargo. Thus it tends to be that bulk terminals are relatively small and placed within the general break bulk cargo and container berths. This is not expected to continue especially in Southern and Eastern Africa due to the need to export large quantities of mineral products, especially to the East.
For this reason it is important that new projects be developed to handle large volumes of mineral exports and especially in the case of Mozambique, Tanzania and possibly Angola new projects be carefully considered similar to existing bulk ports such as Richards Bay and Saldanha. The table below summarises the design capacity and current throughput of the most significant ports in the region in terms of bulk and break bulk.
Design Capacity Current Throughput Country Port (Mtpa) (Mtpa)
Mozambique Maputo 12 8 Mozambique Matola 6 6 Mozambique Beira 5 2.8 Mozambique Nacala 1 0.7 Angola Lobito 1.2 1.2 Angola Luanda 2 ± 2 Namibia Walvis Bay 5 5 Tanzania Dar es Salaam 8 7.4 Tanzania Mtwara 0.20 0.09 Madagascar* Toamasina 0.5 Mauritius* Port Louis 7.07
Key African Ports – Bulk/Break Bulk capacity and current throughput
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2.3 PIPELINES
With the exclusion of South African pipelines there are only four existing pipelines of significance within the SADC region. The following map indicates the location of the four pipelines, (two relatively short pipelines in Angola with a total length of less than 90km are not shown):
Figure 5: Current pipelines within the SADC Source: www.theodora.com/pipelines
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Based on the Regional Assessment Services for Rail Networks, Ports and Pipelines Study (2015), the specifications and capacity of the existing pipelines are listed below.
Diameter Length Capacity
No Pipeline Start End (million (inches) (km) m³/year)
1 Tazama Crude Pipeline Dar es Salaam Ndola 8 & 12 1 700 1.3
2 Songas Gas Pipeline Songo – Songo Dar es Salaam 16 210 1 500
Beira Feruka 10 300 3 Beira – Feruka – Msasa Product Pipeline 2 Feruka Msasa 8 210
4 Temane – Secunda Gas Pipeline Temane Secunda 26 865 3 800
5 Mtwara – Dar es Salaam Gas Pipeline Mtwara Dar es Salaam 36 500 8 000
Mombasa Nairobi 14 450 7.7
Nairobi Eldoret 14 325 1.93 6 Mombasa – Kisumu Product Pipeline Nairobi Eldoret 08 Jun 325 3.3
Sinendet Kisumu 6 121 0.9
7 West Coast Crude Oil Pipeline Ganga Gas Fields Libreville 450 14
8 Libreville – Owendo Gas Pipeline Libreville Gamba 1 250 Capacity of current pipelines within SADC
MOZAMBIQUE AND ZIMBABWE
• The Beira–Feruka–Msasa petroleum products pipeline runs from the port of Beira in Mozambique to Msasa, which is located near Harare. Ownership of the pipeline is shared by Companhia do Pipeline Mozambique Zimbabwe (CPMZ), National Oil Infrastructure Company of Zimbabwe (NOIC) and Lonrho. • It is a 10” pipeline, approximately 300 km long and transports the following refined petroleum products in batches: o Gasoline o Diesel o Ethanol o Kerosene / Jet A1 o Paraffin
TANZANIA AND ZAMBIA
• The Tazama Pipeline is co owned by the governments of Zambia and Tanzania. It is an 8 – 12” pipeline, approximately 1 700 km long and transports crude oil only. • It terminates at the Indeni Refinery in Ndola (Zambia), where refined product is stored and distributed throughout Zambia via third party oil marketing companies. • The Tazama Crude Oil Pipeline had a design capacity of 1.3 million m³/year but is 46 years old and known to be in poor condition. • Pipeline leaks and mechanical failures in recent years have disrupted the flow of product to the Indeni Refinery and it has not transported more than 1.0 million m³/year.
MOZAMBIQUE AND SOUTH AFRICA
• The 865km Sasol gas transmission 26” pipeline runs from Mozambique to Secunda, for the transmission of natural gas to its Secunda processing plant.
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• The length of the pipeline on the South African side is 345km and 520km in Mozambique. • The gas is sourced from the Pande and Temane Gas Fields in Mozambique. • The pipeline is currently operating at or close to its design capacity of 3.8 billion m³/year • During 2010, construction on a new compressor station was completed at Komatipoort on the border of Mozambique and South Africa. http://www.sunbirdenergy.com.au/southern african gas market.html
TANZANIA
• The Songo Songo to Dar es Salaam Pipeline is owned and operated by the PanAfrican Energy and Songas partnership. • It is a 16” pipeline with a length of 210 km. • It is fully operational and assumed to be in acceptable condition from an integrity perspective and is currently operating at or close to its design capacity of 1.5 billion m³/year. • The Mtwara to Dar es Salaam Gas Pipeline is expected to be completed early 2015. • It is being constructed by the Tanzanian Petroleum Development Corporation. • It is a 36” pipeline with a length of 500km. It has a 24” spur to collect additional gas from Songo Songo Island.
ANGOLA
There are two relatively short gas pipelines (not listed on the map):
LUANDA FEED PIPELINES • A number of pipelines have been constructed to inter connect a marine terminal (known as Temar), Luanda Refinery and a number of storage depots to the north east of Luanda Centre IBV5 to Luanda Airport Pipeline • A pipeline runs from IBV5, a storage depot near Luanda Refinery, to Luanda Quatro de Fevereiro • International Airport. This pipeline, constructed in 2004, is 30km long, 10” diameter and transports Jet A1.6
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3. OVERVIEW OF REGIONAL CORRIDOR DEVELOPMENT STRATEGIES
3.1 KEY ISSUES AND TRENDS HAMPERING DEVELOPMENT
Some key issues, developments, and trends were identified which may have a direct influence on planning, prioritization, and future sustainability of the various elements of the regional network, particularly with respect to major capital intensive infrastructure projects:
LACK OF COORDINATION
• Difficult to coordinate large regional transport infrastructure projects due to the over border nature of the types of projects. • Challenging to align priorities, funding, planning and legalities of each country’s involvement.
MANAGING INTERFACES
• The over border nature of regional corridors can lead to significant design and technology interfaces that must be addressed in the most effective way. • Project planners and decision makers must carefully appraise the options for addressing such issues.
DUPLICATION OF STUDIES
• A number of studies based on the same project performed by different institutes. • Beneficial to update a study rather than perform a new study.
LACK OF UNDERSTANDING OF THE PPP PROCESS
• It is assumed that most new infrastructure projects will be privately financed despite recent failures, particularly in the rail sector. • In many cases, the role and ongoing participation of the Government, including the provision of guarantees, risk sharing, and necessary performance monitoring or regulation is not fully understood.
DEFINITION OF REGIONAL CORRIDORS
• Disagreements on the definition and purpose of regional corridors.
CONTINUED MODAL SHIFT TO ROAD
• Poor reliability and low traffic density of rail services drives cargo onto roads, preventing shippers from selecting rail as the preferred mode.
INCREASING HAULAGE COSTS
• Road transport prices are higher than necessary due to external influences such as regulatory requirements that cause low vehicle utilisation; empty backhaul; delays at ports, border posts and in country customs clearance’; and significant trade imbalances on most corridors. • Higher transport prices can double the price of commodities.
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3.2 LESSONS LEARNED
The lessons learnt from various studies with regards to developments and operations within the region are summarised below:
• Many of the regional railway systems in Africa are not functioning as they should, in virtually all respects: poor reliability, high accident and failure rates, and high costs and low volumes. The railways are sometimes operating at a loss and are not financially sustainable. The reasons for this includes the initial loss of volumes and income from road transport deregulation, followed by lack of investment and deferred maintenance, which led to declining reliability and further loss of traffic. Paradoxically, the regional railways will all have to substantially increase their freight volumes in order to become viable. In order to recapture substantial volumes from roads, railways would have to focus on delivering better services to existing rail customers and build new share of the future market. The regional rail systems will also require much improved reliability and investment. • In reviewing trade and transport facilitation, it emerged that borders are a critical factor in time spent and cost of transport. As a result, attention has been turned to integrated or collaborative border management—developing a clearance system that addresses the coordination of all agencies with as many interventions as possible being done in parallel. • Though roads in the region generally have excess capacity, lack of maintenance due to insufficient funds slows traffic and leads to higher vehicle repair costs. Roads also suffer most from frequent stops for weighbridges, customs check points, police check points, road taxes, etc. • A further consideration is that economic and social factors in many countries inevitably place a constraint on their ability to implement a wide range of different PPPs. This is especially true of more sophisticated PPPs, such as road build operate transfer schemes, which are dependent on minimum traffic levels and widespread road user ability and willingness to pay. In countries with low vehicle populations and thin traffic flows, toll roads are unlikely to be an option for several years. This does not prevent such countries from making use of innovative and less complicated alternatives. • The analysis highlights that there is a strong correlation between the existence of a formal PPP policy and the number of PPP projects. The adoption of a policy is an expression of the seriousness of a government’s intent to pursue PPP options. It sends a strong signal to the private sector that a government is committed to PPP solutions and serves to stimulate investors‟ interest and risk appetite. • The existence of transparent and predictable procedures (e.g. PPP type procurement rules) is a further factor that contributes positively towards investors‟ risk perceptions. It influences investors‟ pricing of risk, as it provides assurances that projects are well conceived and have been thoroughly assessed for financial feasibility, and that governments are committed to their implementation. Thus, it enables states to procure at lower costs.
3.3 OVERVIEW OF SADC CORRIDORS
Corridors are paths connecting a number of core origin and destination points within Southern and East Africa and on these connections flow a number of different commodities depending on the underlying economies of the corridor.
The Southern African Development Community (SADC) is a socio economic organisation that comprises 15 member states. There are 18 major transportation corridors in the SADC region illustrated below.
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Regional Corridors and freight infrastructure
TRANS KALAHARI CORRIDOR
The Trans Kalahari Corridor is connected from the Port of Walvis Bay to Gobabis, via Windhoek and stretches over a distance of 644km, where transhipment facilities are available, and then continues from Lobatse in Botswana by road. A tarred road links the Port of Walvis Bay with Botswana and Gauteng, South Africa and stretches over 1900km. It provides the most direct road route between Gauteng in South Africa and Windhoek and Walvis Bay in Namibia and links Botswana with the alternative ports of Durban and Walvis Bay. This corridor was developed as an alternative to the 400km
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longer Upington route, and provides access to a west coast port for South Africa.
The Trans Kalahari Corridor (TKC) is complemented by the Maputo Corridor on the east coast of Africa, thus forming a transport corridor over the entire breadth of southern Africa serving as an east west connector for international and domestic traffic. With the Maputo Corridor, it forms a coast to coast link.
A feasibility study is currently being conducted on a Trans Kalahari Railway connecting Gauteng, Botswana and Namibia by rail to the Port of Walvis Bay. It is based on high global demand and resulting high prices for minerals, particularly Botswana coal, and container and possibly automobile transit from the Gauteng to/from Trans Atlantic markets.
TRANS CAPRIVI CORRIDOR
This corridor is also known as the Walvis Bay Ndola Lubumbashi Development Corridor. The railway line is connected from the Port of Walvis Bay to Grootfontein and stretches over a distance of 626km, where transhipment facilities are available, and then continues in Livingstone, Zambia.
It provides a direct road link between Windhoek and the Port of Walvis Bay to/from the SADC region via Katima Mulilo, linking with the copper belt in Zambia and southern DRC. It also serves as the ‘western gateway’ to SADC for trade with the Atlantic region linking to the North South Corridor.
The Namibian Railway was constructed between 1897 and 1930. The only railway cross border connection is to South Africa on Namibia’s southern border. The feasibility study of a Northern Extension of the Railway from Tsumeb to Oshikango was completed in 1999. There has been discussion on extending it for 5 kilometres into Angola, thus allowing border clearance on the railway which would be a simpler, faster process than that at the road facility. A feasibility study in Angola is currently exploring a connection between the Namibian railway extension and the Angolan line between the port of Namibe and Menongue in the southeast.
TRANS CUNENE CORRIDOR
The Trans Cunene Corridor connects central and southern Angola to northern Namibia and the Port of Walvis Bay. Provides the only operational, all year land transport link between the SADC states and Angola. This corridor has become increasingly important because of the congestion in the Port of Luanda, and the use of Walvis Bay and South African ports as alternatives for international imports.
The railway line is connected from the Port of Walvis Bay to Ondangwa and stretches over a distance of 905km. The construction of the line from Ondangwa to Oshikango was completed at the end of 2011. The Trans Cunene Corridor links Walvis Bay with southern Angola up to Lubango, over a distance of 1 600km, and extends north to Luanda totaling 2 300km in length.
Walvis Bay Port has significant spare capacity to deal with increased Angolan traffic. Namibian rail extension to the border at Oshikango has been completed. A feasibility study is underway for the construction of a connection from the border to the Angolan Namibe railway which is currently not connected to the rest of the Angolan network. A second border transfer point is being developed rapidly at Katwitwi.
TRANS ORANJE CORRIDOR
The Trans Oranje Corridor (previously known as the Southern Extension) is a tarred road linking the Ports of Walvis Bay and Lüderitz with the Northern Cape Province of South Africa. The corridor is complemented by a railway line from the Port of Lüderitz extending southwards to the Northern Cape Province via Upington towards Port Elizabeth, Cape Town and Johannesburg.
Construction on the 40km railway line extension between Aus and Lüderitz was completed in 2010, thus providing a rail link from the Port of Lüderitz to the Corridor.
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NAMIBE CORRIDOR
The Port of Namibe was developed for the export of iron ore from the Cassinga mines in Angola. There have been numerous initiatives to reopen the mines and repair the rail connection to the mine. There are no other known major mineral deposits that would be served by this corridor. The intent is to eventually link the Namibe rail line to the TransNamib rail network.
The original railway line was opened in 1923 having a length of 756km. In order to transport iron ore from Cassinga region through the Moçâmedes Railways line, the line also had two branch lines, to Jamba (17km) and to Tchamutete (96km) built in the 60’s, linking the respective mines to the main CFM line. The current total route distance is 907km.
Rehabilitation of the Namibe Menongue section (756km), including the Jamba and Tchamutete branch lines (115km) was completed in 2011.
LOBITO CORRIDOR
Lobito Port serves central Angola and the DRC and Zambian copper belts via the Benguela Railway. The railway was closed in 1975, but has been refurbished and reinstated again up to the Angolan border. The section to the DRC border at Luau has been rebuilt recently with Chinese assistance. The railway line within DRC through to Kolwezi is still not operational and needs extensive rehabilitation.
The Corridor is managed by Benguela Railways (Caminhos de Ferro de Benguela CFB).The corridor links the Port of Lobito with the border town of Dilolo in the DRC, and stretches further through the DRC via the SNCC system to the copper belt and the southern African railway network. Strategically it is an important corridor for Southern Africa as it has major potential to facilitate the export of bulk commodities from the mineral rich Copper belt of Southern DRC and Northern Zambia. Lobito Port consists of 2 quays with 6 berths, 10.5m deep. Plans are in place for upgrade of the port facilities.
LUANDA CORRIDOR
The Port of Luanda is the main Angolan port, connected by road and rail to the agricultural region of Malange and also the important diamond mining areas to the north east with continuation into DRC.
The Malange Corridor development initiative is led by the Government of Angola and follows the Luanda–Ndalatando– Malange route. The corridor is also being planned to link the mineral rich areas in Angola with the Port of Luanda (Malange Corridor) and eventually Namibe Port (Namibe Corridor). The Malange initiative will include development of the intermodal infrastructure connections at the Port of Luanda, reorganization of the maritime terminal, modernization of the technical nautical services units, modernization of navigational aids, and development of a dry port in Viana, on the western outskirts of Luanda.
The railway line and road to Malange, the capital of the province of Malange, has been extensively rehabilitated by Chinese firms. The construction of this railway link to the port will most probably motivate transporters to rather use the railways as a means of transport instead of road trucks. Angola’s northwest has rich mineral potential, including copper, silver, bauxite, mercury, lead, granite and mineral water. The Luanda Railways (Caminhos de Ferror de Luanda (CFL) joins Luanda to the Malanje agricultural (sugar) and mining areas in northern central Angola, from its terminal at the Atlantic Port of Luanda, the railway heads halfway inland towards Eastern Angola.
BAS CONGO CORRIDOR
The Bas Congo Corridor consists of a rail and road corridor connecting the Matadi Port to Kinshasa. The line was refurbished 30 years ago and is still in a reasonable condition. Most of the traffic is currently conveyed by road.
The Matadi–Kinshasa Railway is a railway located in the Bas Congo Province linking the Port of Matadi to Kinshasa, the capital of Democratic Republic of the Congo and is currently operated and managed by SCTP. The SCTP rail network is not linked by rail to the SNCC rail network.
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The line is a single track line with road access at four points. Similar to the SNCC railway, most transporters choose road transport to that of rail. This is especially true along the Matadi Kinshasa railway, because the road running parallel to the rail has been upgraded and provides a more reliable service. This rail link is the natural transport mode for timber exports and other bulk traffic that is not time sensitive, including imports of general commodities to the city of Kinshasa
CONGO CORRIDOR
The country's total rail track length is 895km, all Cape Gauge. The Congo Corridor has two railway sections: East-West Section: Pointe Noire – Brazzaville (Mainline) The Congo Ocean Railway (COR; French: Chemin de fer Congo Océan, CFCO) is regarded as the mainline section and links the Atlantic port of Pointe Noire with Brazzaville stretching a distance of 510 kilometres. To relieve congestion on this stretch, a 91km realignment was done between Bilinga and Loubomo and added as an alternative detour over this section. North-South Section: Mont Belo – Mbinda Section. The North South section is also known as the Comilog Line.
In terms of commodities transported, petroleum production, forestry, and agriculture are the main economic activities in the Republic of Congo. Petroleum production supplies a major share of government revenues and exports. Domestic food production does not meet current national demand, and food must be imported in large quantities. The major subsistence crops are cassava, rice, corn, and vegetables. Sugarcane, cocoa, and coffee, raised primarily on plantations, are important export crops, as are peanuts, palm products, and tobacco. Lumber and plywood are also important exports, as are diamonds.
MAPUTO CORRIDOR
The Maputo Corridor is generally seen as the most successful example of the ‘development corridor’ approach in southern Africa, as it has attracted significant investment in both industrial and infrastructure projects, and because of the successful establishment and operation of the Maputo Corridor Logistics Initiative (MCLI) – a private sector sponsored corridor management and investment promotion ‘facilitator’. The core elements of the corridor consist of the road and rail links to South Africa and the ports of Maputo / Matola, supplemented by the links to Swaziland and Zimbabwe. Besides serving the primary Mozambique industrial centre and the capital of Maputo, the corridor has a highly productive hinterland, including the Mpumalanga province in South Africa, and stretching as far as Gauteng and the possibility of future coal exports from Botswana.
The 600km railway service along the Maputo Corridor from Gauteng to the port is mainly operated by TFR, which controls 85% of the length, with the last 80km within Mozambique operated by CFM. The railway is electrified on the South African side, switching to diesel electric in Mozambique. The upgrading of the Mozambican side was completed during 2009, allowing 60 wagon trains with 20 ton axle loads to be used.
LIMPOPO CORRIDOR
The Limpopo line is a spatial initiative which connects Zimbabwe to Mozambique as a development project between the two countries that ensures them access to the sea. The line runs between South Mozambique to the port of Maputo. At its peak, the Limpopo line handled about 2.1 million tons of transit freight and provided Zimbabwe with a shorter route to the sea.
The Limpopo Railway line has been concessioned (along with the Goba line and the marshalling yards at Maputo Port) to Consortia 2000. The rehabilitation of the road network running parallel to this railway line. A further road linkage between the Maputo Development Corridor and the Xai Xai Pafuri route. The current proposal is that the existing route from Moamba to Sabie to Macia be rehabilitated and/or upgraded.
GOBA CORRIDOR
The Goba corridor links Swaziland to Mozambique and is considered as an import and export route via the port of Maputo. The Goba line is around 226km long and links the Matsapa industrial park and Maputo. It has capacity for trains with a maximum of 50 trucks travelling at speeds of between 50 and 60km per hour. According to Swaziland Railway Company, the Goba line is in good condition both on the Swazi and Mozambican sides, as a result of recent repairs. Swaziland Railways has spent over 125 million Euros in the refurbishment of the Mpaka Goba railway corridor.
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Originally the Goba line had been used to carry sugar produced in Swaziland to the port of Maputo, with volumes of between 200 000 and 240 000 tons per annum, as well as to import most of the goods the country needs.
On SR side the line was upgraded in 2004 from Matsapha to Siweni. The upgrade was the replacement of wooden sleepers by concrete sleepers and the continuous welding of the rail. It also involved strengthening of culverts and re profiling the used rail and where necessary the formation was strengthened.
NORTH SOUTH CORRIDOR
The North South Corridor Links SADC countries as the prime regional trade route, providing connections to all the regional corridors and ports allowing for flexibility and competition. Extends from DRC and Tanzania in the north, through Zambia and alternative routes through Zimbabwe and Botswana, to Gauteng and the Port of Durban.
The North South Corridor serves as the main trade route for the SADC region, connecting the main economic centres, regional ports and linking all the regional development and transport corridors. The North South corridor carries virtually all the regional trade between the southern African countries, and also provides access to alternative routes and ports for international trade for the land locked countries.
The definition of the NS corridor has been limited to the following, from Durban to Gauteng in the south extending to Kolwezi in the north:
• The road from Durban to Gauteng to Beit Bridge to Harare to Chirundu to Lusaka to Ndola to Kasumbulesa to Lubumbashi to Kolwezi. • The alternative road route from Gauteng to Botswana (Martins Drift or Pioneer Gate) to Kazungula to Victoria Falls to Lusaka. • The alternative road from Beit Bridge to Bulawayo to Victoria Falls to Victoria Falls • The road from Durban to Gauteng to Beit Bridge to Bulawayo to Victoria Falls to Victoria Falls • The rail route from Durban to Gauteng to Beit Bridge to Bulawayo, to Victoria Falls to Lusaka to Kapiri Mposhi to Sakania to Lubumbashi to Kolwezi. • The alternative rail route from Gauteng through Botswana to Bulawayo • The road route from Beit Bridge to Harare to Tete in Mozambique to Blantyre in Malawi
BEIRA CORRIDOR
The Beira Corridor Authority was established as a state owned entity to implement the project, supported by the Nordic funding agencies, with a 10 year budget of US$450 million. A private sector business promotion group was also set up in 1985, the Beira Corridor Group (BCG), based in Harare, with similar structure and objectives to those of the later Maputo Corridor Logistics Initiative. This was a successful structure for the reconstruction and revitalization of the Beira Corridor (only the Zimbabwe leg), and has been partly repeated for the Maputo Corridor, but not elsewhere. The authority was closed at the completion of the Nordic assistance project in 1996, and the BCG carried on under a different name for some years, but eventually closed due to the deteriorating economic situation in Zimbabwe and lack of support.
The port of Beira serves as the main port for Malawi’s international trade, but the railway link (originally damaged by flood) remains closed despite the recent reopening of the Sena line to Moatize, and there seems to be no agreed program or plan for reopening this strategic link (originally damage by flood). Transport between the port of Beira and Malawi is by road via Tete, at a much higher cost than could be achieved with the shorter rail route.
The main operational constraint to increase trade and transport volumes along the corridor has been the limited depth of the port due to siltation and lack of maintenance dredging. This has given the port a poor reputation despite its major advantage of having a large captive hinterland and being about 400km closer by road to the copper belt than any other port.
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NACALA CORRIDOR
The Nacala Corridor transport system was initially established to serve the northern Mozambique agricultural sector with a railway link from Lichinga, through Cuamba and Nampula to the port of Mozambique.
In an effort to improve the transport infrastructure, the governments of Mozambique and Malawi decided to concession both railway systems and the port of Nacala to a private sector operator, with the expectation that this would motivate the financing of the reconstruction of the 77km Cuamba to Entre Lagos link and the Lichinga line.
The Port of Nacala is located in a protected bay close to deep water, served by road and rail in northern Mozambique – Cuamba and Lichinga, with a rail connection to Malawi, extending to Chipata in Zambia.
Looking at the current demand for rail cargo, there is more transport of imported and processed goods from the Port of Nacala to the inland, while transport of goods for export from the inland (domestic resource and inland countries) is relatively less, with a proportional comparison of roughly 75% to 25%. There is a future demand for coal transport from Tete Province via the port of Nacala that would require a rail line extension between Moatize and the rail network in Malawi.
TAZARA CORRIDOR
The TAZARA Corridor comprises the following infrastructure:
• The Port of Dar es Salaam • The TAZARA rail line from the port to Kapiri Mposhi in Zambia where it joins Railway Services of Zambia, the concession, south to Lusaka and northwest to the Copper Belt and to the Democratic Republic of the Congo (DRC) where it connects to the Congolese Railway, SNCC • The TANZAM road that follows much the same route as the TAZARA rail, and the road that runs from Mbeya into Malawi at Songwe, along the lakeshore from Karonga to Chiweta and inland to Lilongwe • The TAZAMA oil pipeline, which runs from the Port of Dar es Salaam to the Indeni Refinery at Ndola, Zambia • The road from Kasama to the Port of Mpulungu on Lake Tanganyika, providing for the transport of goods from Zambia to Rwanda, Burundi, and the eastern part of the DRC.
It is supported by the border posts at Kasumulu/Songwe, Tunduma/Nakonde, and Kasumbulesa/DRC; the Malawi Cargo Centres which operates dry port facilities at Dar es Salaam Port and Mbeya; Zamcargo which consolidates imports and exports for Zambia at Dar es Salaam Port; and Malawi Lake Services originally envisioned as part of the corridor in Malawi, but which has not played a significant role to date, despite investments and its concession. Malawi Lake Services is now undergoing a second attempt at a concession.
TAZARA rail is 1860km to Kapiri Mposhi where it meets Railway Services of Zambia. Capacity is 5 million tons, but it currently handles about 12% of that due to lack of locomotive and wagon availability. The TAZARA railway is jointly owned and managed by the Governments of Tanzania and Zambia. The 1860km railway line from Dar es Salaam to Kapiri Mposhi in Zambia was funded and built by the People’s Republic of China (PRC) in the period 1970 to 1976. The total cost of the initial construction, funded via an interest free loan, was US$ 500 million.
CENTRAL CORRIDOR
The Central Corridor is based on a rail link between Tanzania and Zambia and is also served by an oil pipeline between the two countries and the main road connection from Tanzania to South Africa through Zambia and Botswana. Mineral development served by the corridor in Tanzania is restricted to smaller gold deposits and the coal areas proposed to be linked to the Mtwara Corridor.
The Government of Tanzania has focused on developing the Central Development Corridor (CDC, or Central Corridor), which is planned to cover the geographical area between Dar es Salaam Port in Tanzania and Lake Kivu in Rwanda. The objective is to create an economic growth region, which will stimulate increased cross border and international trade and investment especially in physical infrastructure, tourism, mining, agriculture, and manufacturing. This will link the road and the 1000 mm railway systems of
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central and northern Tanzania with the port of Dar es Salaam, also serving the Lakes Tanganyika, and Victoria by road and rail, Rwanda, Burundi, eastern DRC and Uganda, by road and lake ferry.
The Central Corridor railway system operates within Tanzania as the Tanzania Railways Limited, (TRL) and the concession operator is Rites from India. The railway assets are controlled by RAHCO, which is a state owned company. The system consists of about 2600km of 1000 mm gauge track, generally light 30kg/m rail with 15t axle loads.
LAPSSET CORRIDOR
A master plan for the LAPSSET project (Lamu Port, Southern Sudan, and Ethiopia Multimodal Transport Corridor) was developed that would include oil exports from Uganda (up to an estimated 7mtpa) and iron ore exports from Mt Kodo in the DRC. The latter would also include a dedicated rail link to accommodate the large volumes (up to 50mtpa).
A new container terminal at Lamu is included to serve southern Sudan, Ethiopia, and increased demand from the northern corridor, supplementing the Mombasa port. The MoUs for the proposed railway and pipeline were signed between the Government of Kenya and Ethiopia and South Sudan. The construction of 3 new container berths with access facilities was launched in September 2012.
Currently there are no major port operations at the port of Lamu in the Northern part of Kenya. With the growing volumes and congestion in Mombasa, Lamu Port could create an alternative entry point, especially for southern Sudan and Ethiopia.
NORTHERN CORRIDOR
This Northern Corridor serves trade among Kenya, Uganda, Rwanda, and Burundi and with the port of Mombasa. It links to routes to DRC, Southern Sudan, and Ethiopia. It is road and rail from Mombasa to Kampala and the rest is road only.
The total length of the Uganda Railway network is 1 241km. The length of the railway line from Mombasa to Kampala is 1 330km, operated by Rift Valley Railway (RVR). Three ICDs at Nairobi, Kisumu and Eldoret are underutilized because of the limited cargo on the railway. The northern corridor rail system operates within Kenya and Uganda as a narrow gauge (1000mm) system, compatible with the Tanzania Railway Limited (TRL) system on the central corridor in Tanzania. The line extends from the port of Mombasa to Nairobi, and further to Malaba, connecting to the Ugandan rail system serving Kampala and on to Kasese close to the DRC border.
The design of a new standard gauge railway is being considered and the transaction for advisory services has already been put out to tender by Kenya Railways Corporation. The project will rely on private sector investment, and be developed.
The proposed new railway will have to follow a new alignment, and it will not be an upgrade of the existing railway, which will be required to continue operations during the construction phase. It is therefore likely that there will be competition between the new and the old system.
MTWARA CORRIDOR
The Port of Mtwara is located in a natural bay in southern Tanzania, about 50km north of the Mozambique border. It extends westwards via mostly unpaved roads to Tunduru, Songea, by ferry through Lake Malawi and road to Mzuzu. There is a possible extension to eastern Zambia.
The Mtwara Corridor is located in the northern most part of Mozambique and the southernmost part of Tanzania, linked to the sea port of Mtwara, located in Tanzania, and extending east towards Malawi and north and south of the Rovuma River, which serves as the border between Mozambique and Tanzania. The region has rich agricultural and mining potential, but has been relatively isolated for many years because it is remote from the main regional economic centres with poorly developed transport infrastructure.
There is presently no rail system serving the Mtwara Corridor. A narrow gauge system served the agricultural sector many years ago, but was unsuccessful and was uplifted. There have been some major and ambitious proposed upgrades to the roads, bridges, ferry services and a minerals based railway over a distance of more than 800km to the west of Mtwara port, near Lake Malawi centred on the coal fields in the Mchuchuma Kateweka area, and iron ore deposits at Liganga. Unless justified by the SDI proposed anchor projects, the construction of an Mtwara Corridor railway, and
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associated port development, cannot be economically viable. It is generally considered that a new railway service needs to have a minimum of the order of 5 to 10 mtpa to be viable – depending on the tariffs and the value of the goods transported.
3.3.1 SALIENT ISSUES NEGATIVELY IMPACTING ON CORRIDOR OPERATIONS
Reflected in the Regional Infrastructure Development Master Plan (Status Quo):
RAILWAYS
Poor reliability, high accident and failure rates Theft of operating equipment Poor locomotive and wagon availability High operating costs and low freight volumes, thus not financially sustainable Road transport competition Gauge and method of locomotive propulsion not standardised Lack of continuity and interregional connectivity Lack of maintenance and investment Damage as result of conflict Operate below ‘design capacities’ due to poor track condition
ROAD NETWORKS
High transport costs Lack of – and high cost of maintenance Poor road conditions Missing links between key origins and destinations Occasional congestion between major nodes Delays at cities where by passes have not yet been built Capacity and safety constraints due to lack of climbing lanes Delays at border posts High accident rates (road safety)
PORTS
Poor maintenance and lack of funding Most currently operate close to capacity Poor modal interface management Poor materials handling capabilities, equipment and related infrastructure Trade and transport facilitation delays Poor location and layout hampers expansion opportunities Poor access Insufficient berths Depth constraint Congestion Poor condition
AVIATION TRANSPORT SECTOR
Inadequate runways and terminals Deficient navigation and traffic control equipment Skills and capacity constraints Lack of maintenance Need for modernisation
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3.4 CORRIDOR DEVELOPMENTS AND PLANS
The list provides the various development plans across corridors relevant to Transnet, and indicates possible opportunities for investment.
CORRIDOR DEVELOPMENT STRATEGIES AND PLANS
NORTH SOUTH • Establishment of a one stop border post at Beit Bridge • Upgrading of the road between Beit Bridge, Harare and Chirundu • Upgrading of the Plumtree to Mutare road – funded by DBSA • Construction of the Kazungula Bridge across the Zambezi – Botswana, Zambia • Establishment of a railway Joint Operating Centre at Bulawayo for the North South Corridor • Recapitalisation of NRZ, study funded by DBSA – likely phased corridor approach • Recapitalisation of Zambia Railways, €120 million infrastructure Eurobond, including US$51 million signalling contract • Upgrading and repair of the Serenje Nakonde road in Zambia (Dar es Salaam corridor) • Development of a new one stop border post and road between Zambia and DRC to relieve congestion at Kasumbalesa • Revival of SNCC railway in the DRC, US$280 million World Bank funding
MAPUTO • Expansion of Matola terminal to > 25mtpa, coal, magnetite, iron ore – Grindrod/Vitol. • Upgrading of Ressano Garcia Maputo railway – doubling, electrification • Expansion of Maputo port terminals – Grindrod/DPW • Construction and upgrading of the rail link from Davel to Phuzumoya in Swaziland – R13,6 billion (excluding rolling stock). This will also create an alternative route between South Africa and Maputo via the Goba line
BOTSWANA COAL EXPORTS • Increased coal exports through the existing rail network via Mahikeng, to stimulate mining development in Botswana • Proposed construction of a Botswana to Lephalale rail link, connecting to an extension of the heavy haul coal export line to the Waterberg • Proposed development of the Trans Kalahari railway to a new port at Walvis Bay for coal exports from Botswana. This is a long term project that will require major take or pay supply contracts • Possible routing of Botswana’s northern coal exports through Zimbabwe to Matola/Techobanine • Port developments at Techobanine considered for export of Botswana coal.
BEIRA • Upgrading of the Beira Machipanda railway, being studied by MRGP, implemented by CFM, to be coordinated with NRZ to Harare • Further upgrading of the Sena railway to Moatize from 6mtpa to 12mtpa and later to 18mtpa – CFM • Reopening of the railway link from Sena/Mutare to Limbe/ Blantyre • Development of a new coal terminal at Beira port (CFM/ESSAR) – severely delayed. • Development of a deep sea bulk terminal at Savane, 30km north of Beira – ESSAR has rights. • Expansion of Beira port terminal (CFM/Cornelder) • Construction of a new coal export railway from Moatize 500km to a new port at Macuse – tender won by Ital – Thai, capex increased from US$3,5 billion to US$5 billion
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NACALA • Construction of a new coal terminal at Nacala to handle cape size vessels – Vale • Expansion of Nacala port terminals – study by JICA • Rehabilitation of Cuambo to Lichinga railway – CFM • Development of an industrial complex at Liwonde in Malawi
DAR ES SALAAM • Revival of the TAZARA railway – funding not yet secured • Redevelopment of berths 1 to 7 in Dar es Salaam port – TPA/ TMEA/DBSA • Construction of new container terminal at berths 13 and 14 at Dar es Salaam port – TPA • Development of inland freight terminals at Kisarawe and Isaka • Construction of a new port at Bagamoyo linked to IDZ – TPA with Chinese funding • Recapitalisation of TRL railway on the central corridor, US$300 million WB funding and US$137 million government funding – TRL/WB, process commenced • Revival of lake Victoria marine services to Uganda, linked to TRL
LOBITO • Upgrading of Kolwezi to Dilolo railway in the DRC, being studied funded by MRGP • Construction of the North West Rail from Chingola to Solwezi and finally to Luau in Angola, • being developed in phases by NW railway and Grindrod. Detailed feasibility study being undertaken, subject to customer commitments • Upgrading of Lobito port
MTWARA • Development of Mtwara port serves the offshore gas development in Tanzania and Mozambique. • Construction of a new 800km railway to connect Mtwara port to coal and ore deposits in the Songea region – remains speculative
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3.5 FORECASTED REGIONAL DEMAND
A brief overview is provided of the current and long term forecasted traffic over the corridors. The overview focuses primarily on the railway demand within the SADC region and is inclusive of cross border traffic from South Africa (i.e. South African, Domestic and Export volumes are excluded). 2013 2019
2044
Figure 7: Regional Demand
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3.6 STRATEGIC RAIL PROJECTS
In 2014/2015, Transnet conducted a study on the Regional Assessment Services for Rail Networks, Ports and Pipelines which highlights key developments within the SADC region. Based on the information from the study, a list of strategic rail projects that present opportunity for Transnet to invest is listed below. The projects reflected are currently in concept and feasibility stage so as to highlight larger investments required.
Multi-Criteria Assessment The multi criteria assessment was performed on the most recent Rail, Port and Pipeline projects in the SADC region to indicate possible projects of interest for Transnet to initiate FER and FEL studies. Each project was matched and scored against the following criterions:
• Capacity Is there sufficient demand for the capacity that is to be created by the project?
• Order of Magnitude The relative size and financial investment needed for the project?
• Political Will Does the government of a particular country support that particular project?
• Legal Institution Does the legal, institutional and regulatory frameworks on the corridor support project development?
• Funding Is there funding for the project and its associated studies?
• Viable Alternatives Are there alternative corridors competing for demand?
Each project was ranked based on the criteria mentioned above and the overall score per project determined its importance/viability. The ranking per criteria was as follows:
Table: Multi-criteria category and scores Score Requirements Magnitude Political Will Legal Funding Viable for Capacity Institution Alternatives 0 No Demand Insignificant No Interest No Support No Funding High Competition 0.25 Low Demand Small Low Interest Little Support Medium Competition 0.5 Low Medium Small Low Medium Medium Feasibility Low Medium Demand Medium Interest Support Competition 0.75 Medium Medium Medium Good Support Bankable Low Demand Interest Interest Competition 1 High Demand Large High Interest Excellent Construction No Support Competition
The results of the multi criteria analysis for the Rail, Port and Pipeline projects are indicated in the following tables and figures.
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Strategic Rail Projects
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3.7 STRATEGIC PORT PROJECTS
There is a substantial difference between the current capacity of many ports in Africa and the demand especially over the longer term for import and export needs. For this reason there are a number of projects throughout Africa to develop new ports or substantially increase the capacity of the current ports.
Below is a list of strategic port projects in various key developing economies of Africa, in the container and dry bulk markets.
Strategic Port Projects
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3.8 STRATEGIC PIPELINE PROJECTS
The list below provides Transnet with an overall view of Pipeline projects in various stages within the region. As illustrated in the figure below, majority of the projects lie within Mozambique, Tanzania and in Kenya.
Strategic Pipeline Projects
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4. TRANSNET AFRICA STRATEGY
Strategy revenue drivers and support services Reference: Transnet Planning and Sustainability strategy session:
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