FILE COPY Report No. 3224-F A Report on the Internabonal Transportabon Bottlenecks Affecting Rwandat and Burundi

Public Disclosure Authorized Volume 11

December 1960 Eastern Africa Projects Department Highways Division

FOR OFFICIAL USE ONLY Public Disclosure Authorized Public Disclosure Authorized

Public Disclosure Authorized Document of the World Bank

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disdosed without World Bank authorization. CURRENCY UNITS

Burundi - Franc Burundais (FBu) Kenya - Kenya Shilling (KSh) Rwanda - Franc Rwandais (FRw) Tanzania - Tanzania Shilling (TSh) Uganda - Uganda Shilling (USh)

CURRENCY EQUIVALENTS

US$1.00 FBu 89.0 US$1.00 = KSh 8.0 US$1.00 = FRw 92.0 US$1.00 TSh 8.0 US$1.00 USh 7.4

GLOSSARY OF ACRONYMS

AfDB - African Development Bank AMI - Agence Maritime International CIDA - Canadian International Development Agency EARC - East Africa Railway Corporation EDF - European Development Fund EEC - European Economic Community FAC - Fonds d'Aide et de Cooperation KfW - Kreditanstalt fur Wiederaufbau ODA - Overseas Development Administration RBZ - Rwanda, Burundi, Zaire STIR - Societe des Transports Internationaux de Rwanda TRC - Tanzanian Railway Corporation UNCTAD - United Nations Conference on Trade and Development UNDP - United Nations Development Programme USAID - United States Agency for International Development FOR OFFICIAL USE ONLY

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Volume II

ANNEXES

I. The Northern Route: Bulumbura-Kigali-Kampala-Nairobi-Mombasa

- Mombasa Port ...... ** ...... 1 - The Road Link *...... a ...... *...... 1

I. Road Infrastructure ...... 1

II. Traffic Handling and Road Transport ...... 3

III. Traffic Growth ...... 4

IV. Vehicle Regulations .5 . **...... **...... 5

V. Road User Charges so6...... ** ... . 6

VI. Customs Procedures ...... *...... 6

VII. Visas ...... 7

VIII. Actions Under Way ...... 7

A. Kenya ...... 0...... *...... **...... 7 B. Uganda ...... *...... 8 C. Rwanda/Burundi ...... 8

- The Kampala-Mombasa Rail Link ...... 8

I. Kenya Railways ...... 9

II. Uganda Railways ...... 11

III. Road/Rail Coordination for Transit Traffic ...... 11

II. The Southern Route: Bulumbura-Kigoma-Dar es Salaam ...... 12

- Dar es Salaam Port .... *...***.eo .... 12 - Dar es Salaam-Kigoma Rail Line 15 - Kigoma Port . 17 - Lake Transport ...... * ...... 18 - The Port of Bujumbura ...... o..o...... 18

III. Rwanda: International Routes.. 20

IV. The Isaka-Dar es Salaam Route ...... 00*...... 24

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. TABLES

1. Transit Traffic as Proportion of Total Traffic 2. Rwanda - External Trade 3. Rwanda - Exports and Imports by Value: 1976-77 4. Rwanda - Volume of Exports by Country of Destination 5. Rwanda - Volume of Imports by Country of Origin 6. Rwanda - Volume of Exports by Type 7. Rwanda - Volume of Imports by Type 8. Rwanda - External Traffic by Route: 1977 9. Burundi - External Trade 10. Burundi - Exports and Imports by Value: 1975-77 11. Burundi - Volume of Exports by Country of Destination 12. Burundi - Volume of Imports by Coutry of Origin 13. Burundi - Volume of Exports by Type 14. Burundi - Volume of Imports by Type 15. Burundi - External Traffic by Route: 1977 16. Rwanda/Burundi - Structure of Exports 17. Rwanda/Burundi - Structure of Imports 18. Rwanda/Burundi - Origin of Imports 19. Rwanda - External Traffic Forecasts 20. Burundi - External Traffic Forecasts 21. Rwanda - Comparative Financial Costs for Transport of General Cargo Imports from Europe to Kigali 22. Burundi - Comparative Financial Costs for Transport of General Cargo Imports from Europe to Bujumbura 23. Disaggregated Financial Costs: Dar es Salaam-Bujumbura-Kigali 24. Disaggregated Financial Costs: Mombasa-Kigali-Bujumbura (all road) 25. Disaggregated Financial Costs: Mombasa-Kigali-Bujumbura (rail/road) 26. Charges at Indian Ocean Ports 27. Dar es Salaam Port Traffic: 1974-79 28. Mombasa Port Traffic: 1975-78 29. Kigoma Port Traffic 30. Kenya Railways: Details of the Mombasa-Nairobi-Malaba Line 31. Kenya Railways: Statistics on Equipment and Operating Performance 32. Kenya Railways: Freight Traffic 1971-78 33. Tanzania Railways: Details of the Central and Mwanza Lines 34. Tanzania Railways: Freight Traffic 1977-78 35. Northern Route: Operating Costs for 25-ton Tractor-Trailer Combination (Kigali-Mombasa-Kigali) 36. Northern Route: Road Transport Tariffs 37. Operating Costs - 707 Cargo Aircraft 38. ARNOLAC FLEET ANNEX I

RWANDA/BURUNDI TRANSPORTATION BOTTLENECK STUDY

The Northern Route: Bujumbura-Kigali-Kampala-Nairobi-Mombasa

1. The northern route, linking Rwanda and Burundi to Mombasa Port, offers two transport alternatives: an all-road connection (1,740 km to Mombasa from Kigali; 2,025 from Bujumbura) or a road/rail connection (rail link between Kampala and Mombasa: 1,335 km; total Kigali-Mombasa: 1,924 km). Although the bulk of transit traffic formerly used the rail link, the breakup of the East African Railway Corporation (EARC) in 1974-77 and the deterioration of railway services which this brought about resulted in a complete shift of traffic from rail to road. The road route has also suffered from increasing problems during the last few years and has become less reliable and more costly. Border closures between Uganda and Kenya were frequent even before the recent war in Uganda, and security in Uganda has been a constant problem. The actual physical condition of the road has shown marked deterioration throughout, due to increased traffic volumes, over- loading of trucks and inadequate maintenance. Road safety also became lax and as a result the accident rate increased considerably. These problems as well as the general state of the entire route are discussed below.

Mombasa Port

2. Owing to the substantial capacity and relatively efficient operations at Mombasa Port, throughput of transit traffic is adequate. Rwandese traffic has been further helped by concessional rates (see below) negotiated by the Kenyan and Rwandese Government in 1977. No such preferential arrangements exist for Burundi.

Concessional Rates for Rwandese Traffic

General Rwanda KSh/ton % CIF KSh/ton % CIF

Wharfage Charge 1.5 1.0 Storage Charge 12 3 Late Documentation Charge 12 5

The Road Link

I. Road Infrastructure

3. The following table lists the distances and surface type of the road from Mombasa to Kigali and Bujumbura. -2- ANNEIX I.

{ombasa-Kigaii-Buiumbura Road Route

Section Distance Surface Remarks (km)

1. Mombasa-Nairobi 484 Paved

2. Nairobi-Nakuru 156 Paved Critical condition; currently being reconstructed.

3. (a) - iNakurlu-alebs 278 Paved Several sections critical.

(b) - Nakuru-Kisumu 183 Paved - Kisumu-Busia 111 Paved -- Busia-Kampala 196 Paved

4. Kampala-Mbarara 280 Paved a. (a) - Mbarare-Kabale 147 Paved Section between Nl:arara and Masaka in especially poor coadition.

- Kabale-Gatuna 21 Gravel Not open to heavy Class I traffic.

- Gatuna-Kigali 83 Paved Steep gradient and sbarp curves.

(b) - Mbarara-Rubaare 80 Paved - - Rubaare-Merama Hills 32 Gravel - (Kakitumba) - Kakitumba-Kayonza 139 Gravel - - Kayonza-Kigali 55 Paved -

6. Kigali-Rwanda/Burundi Border 165 Gravel Very steep gradients.

7. Rwanda!Eurundi Border-Kayanza 21 Gravel

8. Kayanza-Bujtumburs 97 Paved -3- ANNEX I

4. 'The road section from Mombasa to Kampala (via Malaba) is part of the Mombasa-Lagos Trans-African Highway and as such is entirely paved. The link from Kampala to Kigali via Gatuna on the Rwandese border is also paved, with the exception of a 21 km stretch between Gatuna and Kabale in Uganda. Since this section is now closed to heavy traffic, trucks leave the main route near Rubaare to cross the border at Merama Hills near Kakitunba. Only the last segment (55 km of a total 306 km) of the Rubaare-Kigali'road is presently paved, and the detour involves an additional 55 km.

5. The road condition along virtually the entire route has deteriorated, reflecting the age of the road in certain sections (e.g., the Rift Valley in Kenya), inadequate maintenance, and traffic levels (both in terms of volume and axle loads) for which the road was not designed.

6. In Kenya, according to a pavement evaluation study carried out in 197T by the Materials Branch of the Ministry of Works, only 150 km of the 920 km Mtombasa-Malaba highway did not need major improvement, and several sections west of Nairobi are in critical condition. In fact, the road between Nakuru -and Mialaba had to be closed for almost a year in mid-1978, because of the complete failure of a 14-km section. Traffic had to be rerouted through Kisumu, and under the impact of overloading and heavier traffic volumes for which the road was not designed, the condition of this road also deteriorated. Much of the road in Kenya is being reconstructed or strengthened (see para. 25), but in the meantime the Government has to provide very large outlays for "maintenance" just to keep the road open.

7. Although no detailed information is available for the road in Uganda, it is reported to be in generally poor condition following years of neglect, and the section between Mbarara and Masaka is in need of urgent attention. After Mbarara, traffic must now take the detour via Kakitumba (para. 4).

8. The Kigali-Bujumbura road (283 km) is mostly unpaved, except for 97 km in Burundi, and the gradient is fairly steep. This road must carry an increasingly larger proportion of Burundi s imports (especially oil products), as well as some traffic bringing imports to Rwanda via Bujumbura.

II. Traffic Hlandling and Road Transport

9. International transport to Rwanda and Burundi from Mombasa and Nairobi is handled by forwarding companies which negotiate contracts with individual trucking companies. The breakdown of the trucking fleet operating between Kenya and Rwanda/Burundi by country of ownership is roughly as follows: -4- ANNEX I

International Trucking Fleet by Ownership

Country of Ownership To Rwanda To Burundi

Kenya 65 ) ) 80 Uganda 10 ) Rwanda 25 -- Burundi -- 20

Total Tonnage: 1978 ('000 tons) 167 18

10. The two most important carriers are Kentaco (a parastatal Kenyan company) and the 80% Government-owned Societe des Transports Internationaux de Rwanda (STIR), each of which carries about 25% of the traffic on this route. Burundi also has a small trucking company (INTRACO) which specializes in the transport of petroleum products. Several small operators (mainly Kenyan and Ugandan) also operate on this route, but their participation is usually limited to subcontracts since the forwarding companies prefer to deal with large transport organizations., Also, difficulties in obtaining inter- national commercial vehicle licenses, capital outlays for the customs bond on goods in transit (unless a forwarder is involved, see para. 22) and lack of service facilities outside Kenya deter small haulers from operating on their own. Thus the road haulage industry, which is generally competitive at the national level, may be less so for international transport.

STIR

11. Created in 1974, STIR has a fleet of 110 trucks, including 57 tankers which carry the bulk of Rwanda's oil imports. Twenty-five trucks were lost during the Ugandan war, but these have been replaced with assistance from the European Development Fund. Management is relatively efficient, although costs are not always covered because of tight governmental control over tariffs. The main problems it faces are: obsolete equipment, shortages of spare parts, lack of skilled personnel and inadequate maintenance facilities.

INTRACO

12. INTRACO is also mostly government owned (60%), and is a relatively new organization, having been in operation for only a year. Currently, it has a fleet of 20 trucks, with an additional 37 trucks on order. Being a new organization, management is as yet untested, but to be a successful operation, it would require considerable technical assistance.

III. Traffic Growth

13. Traffic volumes on this route declined between 1973 and 1976, following the oil crisis, but thereafter increased substantially. In Kenya heavy vehicle traffic, which is concentrated on the Mombasa-Uganda axis, recorded an increase of 30% and 34% in 1977 and 1978, respectively. Traffic -5- ANNEX I to Rwanda and Burundi remained relatively stable between 1975 and 1977, but increased by almost 40% in the first eleven months of 1978, before the border closure. Currently, transit traffic to Rwanda and Burundi accounts for about 15% of the heavy vehicle traffic between Mombasa and Nakuru and 30% between Nakuru and the Ugandan border.

IV. Vehicle Regulations

14. A transport license for the commercial operation of a vehicle (pickup/delivery within country and transit traffic) is required in Kenya and Uganda. The licenses are valid for one year and cost KSh 2,000 and USh 2,000, respectively. These licenses are used to regulate commercial transport and are issued at the-discretion of the Licensing Boards in the two countries.

15. In addition, an individual vehicle license is required in all of the four countries, issued for fixed term periods or on a temporary basis at each entry. The purpose of this license is to co]lect road user charges (see para. 20) and to ensure roadworthiness standards although the latter are rarely enforced.

16. Enforcement of traffic safety regulations in general is inadequate along the entire route. This, coupled with the poor condition of the road, has led to a very high accident rate.

17. Poor enforcement of vehicle regulations has also resulted in con- siderable overloading, a major contributor to the deterioration of the road condition. The official single axle load limit is 8.0 tons in Kenya and Uganda. According to surveys carried out by the Materials Branch Road Research Unit in Kenya, on the heavily loaded direction from Mombasa to the Ugandan border, heavy trucks have an average axle load which is 62% above the 8.0 ton limit, and oil tankers, 91%. About 25% of the transit traffic to Rwanda and Burundi consists of oil tankers.

18. The Ugandan Government reduced the maximum permissible gross vehicle laden weight to 35 tons in September 1977 -- which means a slack of eight tons for the larger tractor-trailer combinations. Alt'hough still formally in effect, this regulation was never strictly enforced. Two weighbridges (financed by the Bank) have been operating since June 1978 on the Mombasa- Nairobi road in Kenya. The weighing procedure is more sophisticated than in Uganda and is based on individual axle loads. These weighbridges have had some impact in reducing overloading. Fines are relatively steep, and STIR (unable to reduce loads because of its limited truck capacity) now includes a standard allowance of KSh 3,000 (US$405) per truck per trip to meet these fines. Also, since a magistrate must rule on each violation, substantial delays can be involved, both for the weighing itself and the payment of the fine. In the face of these problems, transporters have raised tariffs, adding to the already high costs of international transport. -6- ANNEX I

19. Present axle-load limits (although consistent with existing road design standards) are incompatible with the capacity of much of the interna- tional trucking fleet because of the acquisition of increasingly larger trucks during the last several years. Preliminary work done in Kenya by the Transport and Road Research Laboratory (TRRL) indicates that the present single axle load limit of eight tons may be too low, and that the economically optimal axle load limit could be as high as 11 to 13 tons. A study to deter- mine the economically optimal axle load limit, based on the trade-off between lower operating costs and higher road construction and maintenance costs, will be completed by January 1, 1981.

V. Road User Charges

20. Road user charges are directly collected through border fees at each entry when obtaining a transit license. These are listed below:

Border Fees for a 25-ton Tractor-Trailer Combination (Round Trip)

Country Local Currency US$ Equivalent Cents/km

Burundi FBu 5,600 64 27.5 Kenya KSh 1,400 190 10.3 Rwanda 1/ FRw 5,600 63 16.2 Rwanda 2/ FRw 11,200 125 17.4 Uganda USh 2,800 380 31.8

1/ To Kigali only. 21 To Burundi.

Note: Trucks are exempt from border taxes in own country.

21. The bulk of road user charges are however collected indirectly through import duties and excise taxes on vehicles, fuel, lubricants, tires, tubes and other spares. A substantial portion of such charges accrue to Kenya.

VI. Customs Procedures

22. Compared to the Dar es Salaam-Kigoma route, customs procedures on the northern route are far more cumbersome and expensive. Before goods can be shipped from Mombasa to Rwanda or Burundi, the forwarders must prepare detailed customs documents for each of the transit countries. The classifica- tion of each good has to be determined, and the import duty and sales tax for each item computed for each of the transit countries. This amount must then be held in bond as long as the goods are in the country. Thus, for each ship- ment from Mombasa, a forwarder will have to issue a bond covering the import duty and sales tax charges for the goods in transit. When the truck reaches Malaba the forwarder will obtain a clearance certificate which must then be -7- ANNEX I sent back to Mombasa for release of the bond. A similar process must be repeated for Ugandan customs at Malaba and Rwandese customs at Kagera Hills, if the goods are for Burundi. Since import and sales taxes average 40% of the value of the goods, substantial amounts of capital are tied up in this process. Also, forwarders must maintain establishments at each of the border entry points in order to meet the customs requirements.

VII. Visas

23. Visas are required for all truck personnel in Kenya, Rwanda and Burundi. They carry a nominal charge and must be obtained on each entry.

VIII. Actions under way

24. Several measures are being undertaken or planned for the improvement of this route, especially in Kenya.

A. Kenya

25. A comprehensive rehabilitation and road maintenance program has been drawn up under the 1979-1983 Highway Development Plan, partly financed by the Bank.l/ The principal elements include:

(i) Road Improvement: Under the program,'511 km of the Mombasa- Malaba truck route will be strengthened or reconstructed to standards which allow for increased traffic volumes and axle loads (although design standards have yet to be determined). The southern link to Uganda via Kisumu will also be strength- ened.

(ii) Maintenance Program: Maintenance expenditures are projected to rise by 40% in real terms by 1981, to catch up with the backlog of resealing work and to bring road maintenance levels to a minimum standard. They will continue to increase from then on, but at a slower rate.

(iii) Traffic Law Enforcement and Road Safety Program: Enforcement of traffic regulations and safety measures will be considerably strengthened. The Highway Sector Plan provides for the construction of five fully equipped vehicle inspection centers and the establishment of ten patrol bases, including at least three electronic mobile weighbridges. One weighbridge will be deployed near Nakuru and one near the Ugandan border. These will complement the two existing weighbridges on the Mombasa-Nairobi section of the international trunk route.

1/ For detailed description, see Staff Appraisal Report No. 2276b-KE, Highway Sector Project. -8- ANNEX I

26. To ensure that recurrent funds for maintenance and traffic law enforcement are not cut because of financial difficulties, as was often the case in the past, the Bank has agreed with the government on targets for annual recurrent funds during the project period. The Bank has also specified that a study be carried out by consultants by January 1, 1981, of road user charges and of axle load limits (see para. 19).

B. Uganda

27. A feasibility and engineering study for paving of the Kabale-Gatuna section (21 km) of the road from Kampala to Rwanda was completed in January 1979,1/ but there are no known financing proposals.

C. Rwanda/Burundi

28. The Kigali-Gatuna road was constructed to paved standards under an IDA credit approved in 1970. The road was completed at the end of 1977, after having encountered many delays, and sections of the road will be resealed under the Bank's Fourth Highway Project.

29. The Kigali-Bujumbura road (282 km) is mostly-unpaved except for 98 km in Burundi. Construction of the unpaved section to paved standards has begun under an EEC regional project, and is scheduled to be completed by 1982. The new road will have a less steep alignment than the existing one.

30. Because of the steep gradient and sharp curves on the Kigali-Gatuna road, the Government of Rwanda would like to pave the road between Kayonza and Kakitumba (the route presently used by international traffic), but has yet to find the necessary financing.

The Kampala-Mombasa Rail Link

31. Rail services between Kenya and Uganda were not severed with the breakup of the EARC, but the capacity and reliability of the Kampala-Nairobi- Mombasa rail link has progressively deteriorated since 1974 due to the postponement of investment in the last years of the EARC, spare parts short- ages, inadequate maintenance and the loss of personnel following EARC's dissolution. Problems on the Ugandan network have become particularly severe, and the Kampala-Malaba link is now the principal bottleneck for transit traffic. The difficulties on the Uganda Railways have been compounded by the weakening of operational links between the two rail systems. In Kenya, for example, railway authorities have become increasingly reluctant to allow Kenyan wagons to be used on the Ugandan network because of prolonged delays in the return of such rolling stock.

32. The following table illustrates the stagnation in traffic on Kenya Railways, and the sharp decline in traffic to Uganda (partly reflecting the shift of Rwanda/Burundi traffic from rail to road):

1/ Norconsult A.S., "Kabale-Gatuna Road: Economic Feasibility Study, Report," January 1979. -9- ANNEX I

Traffic from Kenyan Stations, 1973-78 ('000 tons)

Year To Kenya To Uganda 1/ Total

1973 3,164 625 3,789 1975 3,011 487 3,498 1976 3,545 244 3,789 1977 3,593 252 3,845 1978 3,584 161 3,745

1/ Traffic to Uganda in recent years has consisted mainly of oil shipments.

I. Kenya Railways

33. The three major problems that have confronted Kenya Railways since its inception have been: (a) loss of skilled personnel, especially from the management cadre; (b) low locomotive and wagon availability; and (c) deteri- orating track maintenance and telecommunication and signalling equipment. Following the collapse of the EARC, most of the Headquarters staff were retained by the Kenyan region, but the frustrations and uncertainties during the transition period resulted in a loss of skilled personnel at all levels, especially from managerial positions. The need to rebuild its management is recognized by Kenya Railways, but so far no recruitment has taken place.

34. Since 1974, the Railways has been troubled by low locomotive and wagon availability due to lack of spare parts, inadequate maintenance and "teething" problems with new diesel locomotives. Locomotive power is down to about 55%. The motive power bottleneck has been eased by some improvement in the spare parts situation and the arrival of new equipment. Equipment ordered includes 26 mainline locomotives, 46 general purpose locomotives (to be supplemented by ten more in the coming year), 35 shunting locomotives and 1,200 wagons. The bulk of these has already been received and delivery of the remainder is expected to be completed by the end of 1979. The main line (Mombasa-Malaba) is now fully dieselized and no additional locomotives are required. Including the new equipment, Kenya Railways will have a total diesel fleet of 259 locomotives.

35. To ensure continued locomotive availability, the maintenance capa- bility of workshops needs to be strengthened. The conversion of steam sheds to diesel depots will increase physical capacity. However, spare parts shortages and the loss of skilled personnel are problems that still need to be addressed.

36. The diversion of white oil products traffic from the Mombasi-Nairobi rail line to the pipeline since early 1978 has freed about 20% of rail capa- city between the two cities. To encourage the movement of oil west of Nairobi by rail, the Government is looking into the feasibility of constructing a pipeline/railway transfer facility in Nairobi. - 10 - ANNEX I

37. Kenya Railways drafted a five-year investment program for 1979-83, amounting to about US$170 million, in addition to some US$160 million for the recently ordered locomotives and rolling stock. This was subsequently modified somewhat in the Government's recent Five-Year Development Plan.l/ The specific objectives for the railways as outlined in the Development Plan are as follows:

(a) to become the main carrier of traditional agricultural goods for distances greater than 100 km;

(b) to become the main mode of long-distance surface transport;

(c) to transport goods and passengers in the shortest time possible through increased efficiency and improved scheduling of services;

(d) to improve marketing performance; and

(e) to transport the bulk of the western-bound oil from Nairobi by rail.

38. In order to meet these objectives, a comprehensive investment program has been drawn up to rehabilitate the Railway and improve the quality of its operations. The main components of the investment plan are:

(a) Permanent Way: A substantial amount of work has already been completed on the Mombasa-Nairobi section. The track between. Nairobi and Malaba is currently in need of atten- tion. The program would renew some 160 km on the section between Eldoret and Malaba, as well as a further 80 km of weak points and curves along the entire network. Also included is improvement of yards and crossing stations to increase line capacity, strengthening of bridges and culverts, the provision of machinery and equipment for handling container traffic, the extension of loop lines at crossing stations, and the upgrading of turnouts to improve line capacity.

(b) Signalling and Telecommunications: The plan would introduce a tokenless signalling system between Nairobi and Mombasa. Train control and carrier equipment of modern type and improved telecommunications are also envisaged.

(c) Workshops and Depots: The Nairobi workshops are to be converted for full diesel maintenance, following the gradual elimination of steam traction.

1/ The main element excluded from the Government Plan is new construction which was not a priority area in any case. ANNEX I

39. Kenya is currently preparing a railway project for Bank financing which would cover the last three years of Government's investment plan (FY19L81- FY1983). In addition to the elements discussed above, the project would provide for the training of staff at senior and middle management levels, and also, for a limited period, recruitment of expatriate staff in positions where trained Kenyans are difficult to find. With the rebuilding of its management and skilled staff, Kenya Railways could once again become a highly efficient operation.

40. A key unknown of the investment plan is the future level of transit traffic, which depends crucially on the effective capacity of Uganda Railways.

II. Uganda Railways

41. The deterioration of the rail service in Uganda has been so pro- nounced that the Railway has not been able to provide sufficient capacity even for the sharply reduced level of transport demand since 1975. To begin to remedy this situation, the Bank Group will finance a short-term "critical improvement" program under a proposed Program Loan scheduled for 1980. It will also help the Railways prepare a medium-term investment plan which could form the basis for a possible project within the next two to three years.

42. Despite present problems, the Ugandan network, including the per- manent way, is of a standard superior to the Tanzanian network. Locomotive maintenance has also posed a less severe problem, because Ugandan diesel locomotives are still maintained at the Nairobi workshops. In addition, Ugandan Railways are said to have retained a stronger nucleus of staff than the Tanzanian Railway Corporation, after the dissolution of the EARC. Thus, the rehabilitation of the Ugandan network, especially the main Kampala-Malaba section (251 km) is a less formidable task than the rehabilitation of the Central Line in Tanzania.

III. Road/Rail Coordination for Transit Traffic

43. The Government of Kenya is considering taking steps, including restructuring rail tariffs, to divert bulk and long-distance cargo to the railway. Such efforts will be effective for transit traffic only if the capacity of the bialaba-Kampala rail link is increased) or adequate trans- shipment facilities are built at Malaba or Eldoret.

44. In its Development Plan for the Railways, the Government of Kenya has included the construction of a full transshipment depot at Malaba on the Ugandan border, including bulk storage and road tanker loading facilities for oil products, for transit traffic destined for Uganda, Rwanda, Burundi and Eastern Zaire. This would allow Rwanda and Burundi traffic to use Kenya Railways once again without having to wait for the rehabilitation of Uganda Railways. It would also reduce road traffic, especially west of Nairobi where the condition of the road is extremely poor. Bank financing of these facilities is included under the project now being prepared.

December 1980 - 12 - ANNEX II

RWANDA/BURUNDI TRANSPORTATION BOTTLENECK STUDY

The Southern Route: BuJumbura-Kigoma-Dar es Salaam

1. The southern route consists of transport by barge from Bujumbura to Kigoma (175 km) and by rail from Kigoma to Dar es Salaam (1,255 km). Service on the route has generally been slow, but has been espe cially poor since 1977. The principal bottlenecks have been Dar es Salaam Port and Tanzania Railways, and to a lesser extent the Port of Kigoma. The recent spate of problems originated with widespread congestion and prolonged delays at Dar es Salaam Port because of a doubling of Zambian traffic between 1975 and 1977. However, since mid-1978, when the situation at Dar es Salaam began to improve, the capacity of the Railway weakened significantly, so that it was not able to evacuate all the transit cargo for Kigoma landed at Dar es Salaam, and as a result, the backlog of transit traffic at the Port has steadily increased. Kigoma Port has also caused delays in the past because of its inconvenient layout and lack of adequate facilities, but the situation has improved because of a fall in traffic from Dar es Salaam. Thus, at present, the rail link is the main constraint on the route's effective capacity.

Dar es Salaam Port

2. The port with its 11 quays and 7 lighterage berths handles on the order of two million tons of cargo a year, excluding bulk oil. It is served by two railway lines: TAZARA which extends to Zambia, and the Tanzanian Railway Corporation (TRC) which includes the Central Line from Dar es Salaam to Kigoma. The two lines are not of the same gauge. The composition of the export/import traffic through Dar es Salaam Port in 1978 was as follows:

Traffic Flows through'Dar es Salaam Port in 1978

Export/Import Traffic '000 tons

Zambia imports 406 Zambia exports 607 Tanzania imports 867 Tanzania exports 236 Rwanda, Burundi and Zaire imports 105 Rwanda, Burundi and Zaire exports 85

Total Throughput 2,306

3. All of Rwanda, Burundi and Zaire (RBZ) traffic, excluding oil shipments and a sm,all proportion of Burundi traffic, is handled by Agence Maritime Internationale (AMI), a Belgian forwarding company. AMI operates the - 13 - ANNEX II area behind Berth 1 and the warehouse with it. Movement of goods from the quays to Berth 1 is handled by the Port's Cargo Uandling Services. This area serves as the loading/unloading point for RBZ traffic onto the Central Railway Line, as well as a storage area for all transit traffic. Under a 1921 colonial treaty, RBZ traffic has been exempted from wharfage and storage charges, but must pay for stevedoring and cargo handling.

4. Since 1975, an increasing proportion of Zambian traffic has been channeled through Dar es Salaam, reaching a peak in 1977. The Port was not able to cope with the increased volumes for several reasons:

(a) insufficient road/rail capacity on the Tanzania- Zambia link to move the cargo out; this led to considerable congestion which itself reduced the efficiency of port operations;

(b) a weakening in the management and 'Loss of skilled personnel, following the dissolution of the East African Harbours Authority; and

(c) decline in productivity of cargo handling personnel reflecting lowered morale and lack of discipline, low availability of handling equipment and increased congestion.

5. By mid-1978 cargo at hand within the port area had reached 90,000 tons (of which 42,000 tons were Zambian cargo), leading to severe congestion and prolonged ship waiting time. This congestion not only impaired the physical movement of goods, but also made it difficult to trace consignments and even parts of consignments, thus resulting in more multiple handling and a higher loss rate. Consequently, the average time span for the movement of cargo from the quays to Berth 1 increased from four weeks to over two months.

6. During the last twelve months, however, there has been a definite improvement in the overall port situation. Congestion is much reduced, and ship waiting time, which extended to 25 days last year, is now down to 0-3 days. Two important reasons for this were:

(a) lower traffic levels mainly due to a more than 25% reduction in Zambian traffic resulting from the diver- sion of some of its traffic to the southern route via South Africa (although much smaller in absolute terms, RBZ traffic has also fallen as importers switched to the Mombasa route); and

(b) an improved offtake of Zambian imports, which reduced the substantial backlog of these imports in the Port area from 65,000 tons in May 1978 to 15,000 tons by May 1979). - 14 - ANNEX II

This was offset somewhat by an increase in RBZ imports at the Port which reached 30,000 tons in early 1979 from 12,000 tons at the beginning of 1978.

7. The primary cause for the buildup of RBZ imports has been inadequate rail capacity to move the cargo out since the beginning of 1978. The average loading onto wagons per month by AMI, which handles roughly 80% of RBZ's imports (excluding oil), fell to less than 4,000 tons in the first half of 1979 from over 6,500 tons in 1977. Actual shipment to Kigoma has been even lower, since wagons have been held in marshalling yards for several months due to lack of motive power. Also, with the sharp decline of export traffic in 1978, fewer wagons from Kigoma have been sent back to Dar es Salaam Port.

8. In order to clear the backlog of imports at Dar es Salaam Port, the Government of Burundi arranged an airlift from Dar es Salaam to Bujumbura (see main report, para. 2.19). Although the airlift was originally envisaged to run for a least six months, and possibly a year, it actually lasted for only 53 days and resulted in a reduction of the backlog of Burundi's imports by only 5,000 tons.

9. In the meantime the Port Authority has strengthened its efforts to clear the Port of hopelessly damaged and valueless cargo and thus improve the overall "fluidity" of port operations; however, the low productivity of cargo handling staff remains a problem. It is important to note that the situation at Dar es Salaam Port is still critically dependent on the volume of Zambian imports, and attempts to import very large volumes, especially of bulk com modities, will once again lead to severe congestion.

10. AMI's own operations at Dar es Salaam Port are relatively efficient, although they have been hampered by overcrowding at Berth 1. Customs pro- cedures are also straightforward. A customs document is issued at the time of loading onto wagons, and this document must be produced at Kigoma. Payments and documentation procedures are simplified by the system of "Connaissement Direct Aller" (through waybill) under which AMI arranges for transportation all the way from Europe to Burundi/Rwanda, and handles all documentation requirements and payments at each step.

11. A project addressing the Port's overall needs over the medium term is being prepared with Bank assistance. The main components of the project are:

(a) an additional container berth, including a storage and handling area;

(b) widening and deepening of the entrance channel to allow 24-hour access to the port;

(c) bulk cargo handling facilities including storage silos;

(d) equipment for handling container traffic and general cargo; - 15 - ANNEX II

(e) a warehouse for Zambian imports;

(f) replacement of the existing oil jetty, so that larger tankers could be accomodated;

(g) maintenance facilities; and

(h) technical assistance and training programs, to strengthen management and improve productivity.

12. A substantial portion of the project is geared to Zambian needs. But insomuch as it engenders smoother Port operations, it benefits all traffic. The container facility could be useful to Rwanda and Burundi as well (although Berth I is at the other end of the quay), since the recent upward trend in container traffic to the two countr:Les is expected to continue. Dar es Salaam-Kigoma Rail Line

13. The railway network comprises the Central Line from Dar es Salaam to Kigoma and several branch lines. Most of the Central Line consists of 56 lb/yd rail which has never been renewed since it was originally relayed over 60 years ago, and one relayed section is in extreme:Ly poor condition. After the effective breakup of the East African Railways Corporation, the new Tanzanian entity (subsequently incorporated to form the TRC) was left with a weak management cadre, hardly any skilled staff and inadequate maintenance facilities. Consequently, the operating conditions of the Railways have steadily deteriorated. More recently, TRC's problems were compounded by military demands during the war with Uganda and floods in central and eastern Tanzania.

14. TRC is faced with problems on all fronts, but the most urgent is the shortage of rolling stock, especially locoiiotives. This has been exacerbated by extremely low availability rates -- around 35% during 1979. The situation will be alleviated somewhat by a large shipment of rolling stock (51 locomo- tives, of which 31 are main and branchline diesels; and 560 wagons), delivery of which has already begun. The first phase of the Morogoro workshop for basic diesel maintenance has also been completed. Assistance is being pro- vided by several donors in other areas as well (see Chapter III of report), the most important being the Canadian program, which in addition to rolling stock and expansion of the Morogoro workshop, provides substantial technical assistance and would begin the first stage of track relaying on the Central Line (about 180 miles).

15. However, the external assistance currently being provided is not coordinated and meets only the most limited needs of the railway. A complete rehabilitation of the railway system is required. While some elements such as the relaying of track and the strengthening of management and staff are clearly of a long-term nature, there are several steps that could be taken to improve the situation in the short and medium term: - 16 - ANNEX II

(a) Rolling Stock: TRC estimates that even with 75% availability, it would require 52 more diesel locomotives, in addition to the ones on order;

(b) Spare parts and maintenance facilities, so that existing stock can be utilized efficiently and as insurance for new equipment;

(c) Manpower: This has been identified as a most urgent requirement by TRC, and although pre- liminary discussions were held with several donor countries for expatriate personnel, the followup has been poor;

(d) Signalling and Telecommunications: With relatively modest investment, train operations can be improved through better signalling and telecommunications; and

(e) Selective Track Improvement and Maintenence: Several sections of the track are in need of ballast, but have been neglected due to lack of ballast wagons and motive power. Also, especially weak sections of track and bridges could be strengthened.

16. The current lack of accurate information on infrastructure, rolling stock and operating conditions makes it difficult to evaluate these require- ments and identify priorities. However, three studies have been recently initiated to provide this information:

(a) The Railway Sector Study (CIDA): The objective of this study is to develop Government policy in the railway sector and identify priorities for investment, based on a thorough examination of the railway system and overall transport require- ments;

(b) Study of the Tabora-Kigoma Section (EEC): The EEC has been considering a limited project (some US$13 million) for improving the section between Kigoma and Tabora, currently the weakest portion of the Central Line. 'The study was commissioned to identify priorities for the project, and is also expected to assess the investment require- ments during the next ten years; and

(c) Study of all Bridges on the Central Line (KfW): An estimated 87 bridges are in need of improve- ment, and this study would provide information on all the improvements required as well as their relative priorities. - 17 - ANNEX II

17. Hopefully these studies will identify areas where financial and technical assistance are urgentaly required. Except for projects already in the pipeline, the only other major assistance program scheduled for TRC is a Bank project targetted for 1982.

Kigoma Port

18. The Port of Kigoma is situated on Lake Tanganyika at the end of the Dar es Salaam-Kigoma rail line, 1,255 km from the Indian Ocean. The Bay of Kigoma, on which the Port is situated, offers excellent protection for port facilities from the sometimes violent storms coming from the Lake.

19. Total traffic handled by Kigoma Port in 1977 exceeded 200,000 tons, with import/export traffic in roughly equal proportion. Export traffic consists principally of copper and zinc from Zaire, and to a lesser extent coffee from Burundi.

20. The Port is managed by AMI Tanzania. Its facilities comprise a single 240 meter quay, one storage shed (84m x 21m) and a yard stacking area (115m x 30m); an additional warehouse (54m x 31m) is now under construction.

21. Handling equipment in the Port consists of:

(a) three electric cranes, 5 ton capacity;

(b) four mobile cranes, one ton capacity;

(c) one fixed crane, 25 ton capacity; and

(d) five fork lifts, 3/4 to 1.5 ton capacity.

The four mobile cranes of one ton capacity should be replaced since they are old and cannot be repaired due to the unavailability of spare parts. Most of the work is done by the three electric cranes since much of the other equip- ment is out of service due to frequent breakdowns.

22. One of the major problems with the Port of Kigoma is its physical layout on three levels, with each level about 80 cm higher or lower than the others. This makes any improvement by mechanization nearly impossible.

23. A recent Belgian-financed study of Port operations recommends a number of urgently required improvements which meet the Port's requirements in the medium term. 1/ These would cost US$6.4 million and include the levelling of the port area, construction of a third warehouse, improvement of the quay and rail facilities, and purchase of four mobile cranes (including one of 40-60 ton capacity), forklifts, tractors and trailers, and spare parts.

1/ "Kigoma Port Study," HAECON, 1978. - 18 - ANNEX II

The EEC expects to finance the improvements, but a decision on the start of works has been delayed several times and no firm date has yet been set. The study also recommends a modernization and expansion program covering the next 20 years.

Lake Transport

24. Lake transport between Bujumbura and Kigoma is handled by ARNOLAC, a private company with government participation. The company operates 3 self-propelled and 10 tow barges with a total capacity of 5,000 dwt. The barges are old, some over 100 years, and inefficient because they were not designed to handle palletized goods. Containers can be carried but are not handled efficiently since neither the barges nor the ports are properly equipped for them. Tariffs are set by Government and are not sufficient to allow for proper maintenance or replacement of the fleet and handling equip- ment. The present owner has therefore let the equipment deteriorate and can only afford to continue the operations because he is no longer providing for capital replacement.

25. A study should be carried out to examine the rate structure, level of service and requirements for the modernization of the fleet in order to ensure that future requirements can be met efficiently.

The Port of Bujumbura

26. The Port of Bujumbura is managed by the privately-owned Exploitation du Port de Bujumbura (EPB) which has a concession for the use of government- owned equipment and facilities. Port facilities include a 500 meter quay for general caro, a 200 meter quay for petroleum products and containers and three warehouses (lOm x 40m). There are two additional warehouses outside the Port, but these are not used. Equipment available includes: four mobile cranes, one fixed crane for handling containers, one 8-ton forklift and six 3-ton forklifts.

27. Port capacity is more than adequate for present traffic since Bujumbura was formerly the regional port for Rwanda, Burundi and the Kivu region in Zaire. This excess capacity is reflected in the fact that the Port operates only one shift per day as compared to Kigoma which operates two shifts per day. Since traffic is not expected to increase substantially in the medium term, the Port's capacity will continue to be adequate, requiring only periodic dredging.

28. Freight handling charges in the Port vary from FBu 249 to FBu 498 per ton. Up to 1977 the Port of Bujumbura handled about 12,000 tons per month, but this has recently dropped' to about 7,000 tons per month due to the diversion of traffic to the northern route as a result of the serious backlog of traffic in Dar es Salaam Port. Normal transit time in Bujumbura Port is three to four days, which is satisfactory. - 19 - ANNEX II

29. The Port employs an average of 260 workers on contract. These are supplemented by another 40 hourly-paid workers during the coffee exporting season from July to October.

30. In the short term the most pressing problems are: shortage of spare parts for the cranes and handling equipment, and the resurfacing of the area within the Port to permit easier movement of forklifts and vehicles and improved handling of goods through the Port. The resurfacing of the Port area is currently included in a roads project now being prepared for Bank Group financing.

31. Because container traffic is increasing, :Lt will be necessary to acquire a mobile crane of 50 tons capacity to handle the containers more efficiently so they can be unloaded and returned to avoid costly demurrage charges. Containers now return empty to Dar es Salaam due to the nature of export goods which do not lend themselves to containerization.

December 1980 -20-

ANNEX III

RWANDA/BURUNDI TRANSPORTATION BOTTLENECK STUDY

Rwanda: International Routes

Through Mombasa

Section Mode Distance (km)

I. ALL ROAD

Mombasa-Kampala-Kagitumba-Kigali Road 1,737

Total (no transshipment) 1,737

II. RAIL/ROAD (Kampala transshipment)

A. Mombasa-Kampala Rail 1,338 B. Kampala-Kagitumba-Kigali Rail 586

Total (1 transshipment) 1,924

III. RAIL/ROAD (Malaba transshipment)

A. Mombasa-Malaba Rail 1,085 B. Malaba-Kampala-Kigali Road 808

Total (1 transshipment) 1,893

IV. RAIL/ROAD (via Kasese)

A. Gisenyi-Kasese Road 391 B. Kasese-Mombasa Rail 1,672

Total (1 transshipment) 2,063

V. LAKE VICTORIA ROUTE (Road/lake/rail)

A. Kigali-Nyamirembe Road 338 B. Nyamirembe-Kisumu Boat 440 C. Kisumu-Mombasa Rail 932

Total (2 transshipments) 1,710 -21-

ANNEX III

Section Mode Distance (km)

VI. LAKE VICTORIA ROUTE (Road/lake/road)

A. Kigali-Nyamirembe Road 338 B. Nyamirembe-Kisumu Boat 440 C. Kisumu-Mombasa Road 830

Total (2 transshipments) 1,608

VII. LAKE VICTORIA ROUTE VIA BUKOBA (Road/lake/rail)

A. Kigali-Bukoba Road 387 B. Bukoba-Kisumu Boat 380 C. Kisumu-Mombasa Rail 932

Total (1 transshipment)j/ 1,699

VIII. LAKE VICTORIA ROUTE VIA BUKOBA (Road/lake/road)

A. Kigali-Bukoba Road 387 B. Bukoba-Kisumu Boat 380 C. Kisumu-Mombasa Road 830

Total (2 transshipments) 1,597

Through Dar Es Salaam

Section Mode Distance (km)

I. ROAD/LAKE/RAIL

A. Kigali-Bujumbura Road 285 B. Bujumbura-Kigoma Boat 175 C. Kigoma-Dar es Salaam Rail 1,253

Total (2 transshipments) 1,713

1/ Assuming wagon ferry. -22-

ANNEX III

Section Mode Distance (km)

II. ROAD/RAIL (via Isaka)

A. Kigali-Isaka Road 496 B. Isaka-Dar es Salaam Rail 982

Total (1 transshipment) 1,478

Burundi: International Routes

Through Mombasa

Section Mode Distance (kin)

I. ALL ROAD

Bujumbura-Kigali-Kagitumba-Kampala- Mombasa Road 2,022

Total (no transshipment) 2,022

II. ROAD/RAIL (Kampala transshipment)

A. Bujumbura-Kigali-Kagitumba-Kampala Road 871 B. Kampala-Mombasa Rail 1,338

Total (1 transshipment) 2,209

III. ROAD/RAIL (Malaba transshipment)

A. Bujumbura-Kigali-Kagitumba-Kampala- Malaba Road 1,093 B. Malaba-Mombasa Rail 1,085

Total (1 transshipment) 2,178 -23-

ANNEX III

Section Moode Distance (km) IV. LAKE VICTORIA ROUTE (Road/lake/rail)

A. Bujumbura-Nyamirembe Road 376 B. Nyamirembe-Kisumu Boat 440 C. Kisumu-Mombasa Rail 932

Total (2 transshipments) 1,748

V. LAKE VICTORIA ROUTE (Road/lake/road)

A. Bujumbura-Nyamirembe Road 376 B. Nyamirembe-Kisumu Boat 440 C. Kisumu-Mombasa Road 830

Total (2 transshipments) 1,646

Through Dar Es Salaam

Section Mode Distance I. LAKE/RAIL

A. Bujumbura-Kigoma Boat 175 B. Kigoma-Dar es Salaam Rail 1,253

Total (1 transshipment) 1,428

II. ROAD/RAIL

A. Bujumbura-Isaka Road 534 B. Isaka-Dar es Salaam Rail 982

Total (1 transshipment) 1,516

December 1980 -24- RWANDA/BURUNDI TRANSPORTATION BOTTLENECK STUDY ANNEX IV

The Isaka-Dar es Salaam Route

1. The most important alternate surface route yet identified is the Isaka route which would provide a road link from southeastern Rwanda (northeastern Burundi) to Isaka in Central Tanzania and from there by rail via Tabora to Dar es Salaam. Like the southern route, the functioning of the Isaka route would depend crucially on the improvement of Tanzania's railway system and the fluidity of Dar es Salaam Port. It would, however, bypass the Kigoma-Tabora rail section which is the weakest part of the Central Line.

2. As discussed in Chapter IV, the Isaka route is the least- cost external transport alternative for Rwanda, assuming that planned improvements of the Tanzanian railway system and Dar es Salaam Port are carried out. However, for Burundi, the southern route via Kigoma would still be the most economic option.

3. The following table shows the status of the various segments of the Isaka route:

Status of Isaka Route

Engi- Feasi- neering bility Construction/ Segment Distance Cost Study Study Financing (km) (US$ million 1979 prices)

Kigali-Rusumo 164 - - - Constructed by Chinese, completed in 1977.

Rusumo-Lusahanga 93 18 Completed Not done Under construction; financing from AfDB; to be completed in 1981.

Lusahanga-Bukombe 127 37 Completed Not done No proposals.

Bukombe-Isaka 112 28 Completed Not done Under discussion with EEC and USAID (partial financing).

Kobero-Rulenge- 124 - - - Pre-feasibility study Lusahanga financed by EEC, -25- ANNEX IV

Economic Analysis

4. The following analysis assesses the economic justification for developing the Isaka route. It assumes that the route will be completed by 1985, that concurrent improvements will be made on the connecting transport links, and that 45% of Rwanda's total external traffic will be diverted to the new route. The estimated level of diverted traffic reflects (a) the anticipated rehabilitation of the Ugandan economy and Uganda's eventual ability to supply some of Rwanda's import needs and (b) the possibility that oil traffic (which currently originates at Nairobi) may not be diverted to the Isaka route, especially if the Mombasa-Nairobi pipeline is extended in the future. It is therefore assumed that, 20% of the import traffic from Nairobi, 70% of the import traffic from Mombasa and 50% of all export traffic will be diverted to the Isaka route. Thus the distribution of Rwanda's external traffic by route, just before and after the opening of the Isaka route, is estimated as follows:

(Per cent of traffic by route)

Before After

Northern Route

-- from Uganda 10 10

-- from Nairobi 25 20

-- to/from Mombasa 56 19

Isaka Route - 45

Southern Route 3 -

Other 6 6 5. Rwandese traffic on the route is assumed to grow by 5% from 1985 (the year of project completion), and local traffic by 4%.

Costs

6. The estimated costs for the project are summarized in the table below. The capital costs included are the costs of constructing the Rusumo-Isaka road to paved standards and the transshipment facilities at Isaka. Maintenance costs consist of routine maintenance on the entire Kigali-Isaka road and resealing three times during the economic life of the road, which is assumed to cover a 20-year period. -26- ANNEX IV

Project Costs (US$ million at 1979 prices)

Capital Costs US$

1. Rusumo-Lusahanga 16.0 (already incurred)

2. Lusahanga-Bukombe 35.0

3. Bukombe-Isaka 25.0

4. Isaka transshipment facility 2.0

Maintenance Costs

1. Routine maintenance per year 0.3

2. Resealing 3.5 (3 times during economic life of the road)

Benefits

7. The principal benefits that have been identified are:

(a) Freight cost savings for Rwandese traffic which includes both lower transport costs because of the shorter route as well as savlngs on road user charges (direct only) on other routes,l! reflecting partly road maintenance cost savings on these routes;

(b) maintenance cost savings because of the improvement of the Rusumo-Isaka road (from poor gravel to bitumen); and

(c) vehicle operating cost savings for local traffic because of the upgrading of the road.

1/ For the northern route, the freight costs assumed are for the rail- road combination since the rail link is expected to be operational by this time. If freight costs for the all-road route were assumed, the savings would be even more. -27- ANNEX IV

8. Other potential benefits not included in the analysis are: benefits from any future Burundi traffic, the generation of trade between Tanzania and the two landlocked countries, the promotion of development in northwestern Tanzania, and possible time savings.

9. The results obtained from the analysis were:

(a) Economic Rate of Return: 9.9% Benefit Cost Ratio: 1.2:1 (8% discount rate); 1.0:1 (10% discount rate);

(b) If capital outlays on Rusumo-Lusahanga section are treated as sunk costs - Economic Rate of Return: 12.9%

Sensitivity Analysis on (a):

(c) Capital costs: 10% up Freight savings: 10% down Economic Rate of Return: 8.0%.

(d) 50% of Rwanda's external traffic diverted to Isaka route instead of 45%. Economic Rate of Return: 10.8%

(e) Traffic diverted 45%, but traffic growth 7% per annum instead of 5%. Economic Rate of Return: 11.3%.

10. Thus, even with modest assumptions as to traffic diversion and traffic growth, the route appears economically justifiable. This does not take into account the costs already incurred on the route and uncertainties about the reliability of the northern route.

December 1980 -28- Table 1

Transit Traffic as Proportion of Total Traffic (percent)

I. NORTHERN ROUTE Rwanda/Burundi Other Transit Traffic Traffic Kenya

1. Mombasa Port (general cargo) 4 16

2. Mombasa - Nairobi

- road 5 9 - rail - 15 - pipeline 3 12

3. Nairobi - Malaba

- road 12 24 - rail - 35 Uganda

4. Malaba - Kampala 35 5

- road _ _ - rail

II. SOUTHERN ROUTE Rwanda/Burundi Other Transit Traffic Traffic (including Zaire)

1. Dar es Salaam Port 5 45 (general cargo) (7)

2. Dar - Kigoma Railway 13 - (20)

3. Kigoma 65 (100)

August 1980 -29- Table 2 RWANDA

External Trade ('000 tons)

Year Exports Imports Total

1970 20.0 89.3 109.0

1971 22.1 89.7 111.8

1972 18.6 97.8 106.3

1973 27.3 78.1 105.4

1974 35.6 97.2 132.8

1975 35.6 134.0 169.6

1976 47.0 144.9 191.9

1977 31.1 139.9 171.0

1978P 29.0 185.0 220.0

P/ Preliminary

Source: National Bank of Rwanda Ministare des Finances et de l'Economie Service Douanier

August 1980 -30- Table 3

RWANDA

Exports and Imports by Value (million FRW)

Exports 1976 19771'

Coffee 5,548.6 3,871.1

Tea 507.3 520.1

Minerals 666.4 559.8

Hides 130.1 129.9

Others 682.8 532.2

Total 7,535.2 5,613.1

Imports 1976 19772/

Food Products 1,194.1 523.3

- Cereals & Grains 588.1 285.3

- Salt 231.6 85.1

- Sugar 57.1 20.0

- Other 317.3 132.9

Textiles 1,289.8 588.2

Other Consumption Goods 1,868.3 1,516.1

Capital Goods 2,747.9 1,582.0

- Machinery 1,218.7 631.1

- Transport equipment 1,066.5 651.1

- Other 462.7 245.8

Intermediate Goods 2,506.8 1,201.7

- Petroleum Products 1,016.2 549.4

- Other 1,490.6 652.3

Total 9,606.9 5,411.3

1/ 9 months 2/ First semester

Source: Ministere du Plan, Direction Generale de la Statistique.

August 1980 -31- Table 4 RWANDA

Volume of Exports by Country of Destination

1977

('000 net tons) (%)

EUROPE 5.6 18.0

France 0.3. 1.0 Belgium/Luxembourg 2.7 0.9 Netherlands 0.4 1.3 Federal Republic of Germany 0.1 0.3 United Kingdom 1.5 4.8 Italy 0.5 1.6 Rest of Europe 1.2 3.9

AFRICA 1.3 4.2

Zaire 0.1 0.3 Burundi 0.2 0.6 Kenya 0.9 2.9 Uganda 0.1 0.3 Rest of Africa - -

AMERICA 0.1 0.3

OTHERS 23.8 76.5 11 of which: unnominated to Mombasa- 22.4 72.0

TOTAL 31.1 100.0

1/ Auctioned in Mombasa and shipped mainly to the U.S.

Source: National Bank of Rwanda.

August 1980 -32- Table 5

RWANDA

Volume of Imports by Country of Origin

1977

('000 net tons) m

EUROPE 37.4 26.7

France 3.1 2.2 Belgium/Luxembourg 17.0 12.2 Netherlands 1.7 1.2 Federal Republic of Germany 3.6 2.6 United Kingdom 2.2 1.6 Italy 1.8 1.3 Rest of Europe 8.0 5.6

AFRICA 41.0 29.3

Zaire 2.0 1.4 Kenya 32.1 22.9 Uganda 1.7 1.2 Burundi 1.4 1.0 Tanzania 1.1 0.8 Zambia 0.8 0.6 Rest of Africa 1.9 1.4

ASIA 53.4 38.2

of which: oil producers1/ 37.8 27.0

AMERICA 8.1 5.8

OCEANIA

OTHERS

TOTAL 139.9 100.0

1/ Most petroleum products shipped indirectly through Kenya.

Source: National Bank of Rwanda.

August 1980 33 Table 6

RWANDA

Volume of Exports by Type

1974 1975 1976 1977 …------…('000tons)…---…---______

Coffee 20.1 26.7 36.7 19.1

Tea 3.1 3.9 5.0

Minerals 2.5 3.0 3.0

Hides 0.5 0.5 0.7

Others 0.2 1.5 1.6

Total 26.6 35.6 47.0 31.1

Source: National Bank of Rwanda Direction Generale de la Statistique, Ministare du Plan Ministare des Finances et de 1'Economie

August 1980 -34- Table 7 RWANDA

Volume of Imports by Type

1975 1976 1977 ------'000 tons…------

Food Products 40.9 37.2 33.4

- Cereals and grains 19.7 14.5 16.4 - Salti./ 13.8 18.6 12.9 - Sugar 0.8 0.9 0.6 - Other 6.6 3.2 3.5

Textiles 6.8 7.3 7.9

Other Consumption Goods 7.9 9.4 10.9

Capital goods 13.5 13.8 15.7

- Machinery 5.5 4.1 4.0 - Transport equipment 3.5 2.9 3.3 - Other 4.5 6.8 8.4

Intermediate goods 64.9 77.3 72.0

- Cement 17.2 23.7 19.8 - Petroleum products 30.5 36.9 37.3 - Other 17.2 16.7 14.9

Total 134.0 144.9 139.9

of which Bulk Cargo 82.5 95.0 87.5

1/ Includes industrial uses

Source: National Bank of Rwanda Direction Generale de la Statistique, Ministare du Plan Ministere des Finances et de 1'Economie

August 1980 -35- RWANDA Table 8

External Traffic By Route: 1977

('000 tons) M A. Incoming Traffic

International 67.8 48.4 - via Mombasa 1/ 2/ 60.3 43.1 - via Dar es Salaam 4.6 3.3 - air 2.9 2.1

Regional 72.2 51.6 - Kenyai' 65.2 46.6 - Uganda 1.7 1.2 - Zaire 2.0 1.4 - Burundi 1.4 1.0 - Tanzania 1.1 0.8 - Zambia 0.8 0.6

TOTAL 140.0 100.0 B. Outgoing Traffic

International 29.6 95.5 - via Mombasal/ 17.8 31.0 - via gar es-Salaam 2.0 6.4 - air3/ 9.8 31.6

Regional 1.4 4.5 - Kenya 1.0 3.2 - Uganda 0.1 0.3 - Zaire 0.1 0.3 - Burundi 0.2 0.6 - Tanzania - - - Zambia

TOTAL 31.0 100.0

1/ Overland only.

2/ Oil products routed indirectly through Kenya. 3/ Mainly coffee to Mombasa.

Source: National Bank of Rwanda Direction General de l'Aeronautique Mission estimates.

August 1980 -36- Table 9

BURUNDI

External Trade ('000 tons)

Year Exports Imports Total

1970 31.4 73.6 105.0

1971 30.2 90.2 120.4

1972 34.7 98.2 132.9

1973 30.8 80.2 111.0

1974 27.1 89.8 116.9

1975 30.9 85.1 116.0

1976 27.7 85.0 112.7

1977 20.8 115.2 136.0

1978 32.1 125.4 157.5

Source: Banque de la Republique du Burundi Service des Douanes.

August 1980 -37- BURUNDI Table 10

Exports and Imports by Value (million FBu)

Exports 1975 1976 1977

Coffee 2,212.8 4,834.8 7,584.7

Tea 64.7 101.3 236.3

Cotton 57.3 202.0 7.8

Asbestos 19.7 19.2 9.6

Others 160.2 262.5 672.7

Total 2,514.7 5,419.8 8,511.1

Imports 1975 1976 1977 Industrial Goods

- metallurgical 82.5 58.8 171.1

- agriculture 127.1 .110.9 140.4

- food production 475.5 '509.0 679.0

- construction 196.8 220.7 296.7

- other 553.5 564.0 838.4

Capital Goods 1,333.5 1,509.2 1,437.6

Consumption Goods

- Durables 1,343.3 1,274.7 1,844.2

- Non Durables 743.4 779.8 1,270.1

Total 4,855.6 5,027.1 6,677.5

Source: Banque de la Rgpublique du Burundi.

August 1980 -38- Table 11

BURUNDI

Volume of Exports'by Country of Destination

1977 ('000 net tons) %

EUROPE 10.7 52.4

- France 2.6 12.7 - Belgium/Luxembourg 0.6 2.9 - Netherlands 0.1 0.5 - Federal Republic of Germany 3.2 15.6 - United Kingdom 1.5 7.4 - Italy 0.6 2.9 - Rest of Europe 2.1 10.3

AFRICA 1.1 5.4

- Rwanda 1.0 4.9 - Rest of Africa 0.1 0.5

AMERICA- 7.5 36.8

- United States 6.8 33.3 - Rest of the-Americas 0.7 3.5

OTHERS 1.1 5.4

Total 20.4 100.0

Source: Banque de la Ripublique du Burundi

August 1980 _39_ Table 12

BURUNDI

Volume of Imports by Country of Origin

1977 ('000 net tons) %

EUROPE 33.4 29.8

- France 4.7 4.2 - Belgium/Luxembourg 12.6 11.3 - Netherlands 2.3 2.0 - Federal Republic of Germany 6.4 5.7 - United Kingdom 1.9 1.7 - Italy 1.0 0.9 - Rest of Europe 4.5 4.0

AFRICA 32.3 28.9

- Zaire 3.6 3.2 - Kenya 6.8 6.1 - Uganda - - - Rwanda 0.1 0.1 - Tanzania 13.6 12.2 - Zambia 8.0 7.1 - Rest of Africa 0.5 0.4

ASIA 37.7 33.7

- of which oil producers-/ 23.9 21.4

AMERICA 6.4 5.7

OCEANIA 0.1 0.1

OTHERS 1.9 1.7

Total 111.9 100.0

1/ Mostly petroleum products shipped indirectly through Tanzania.

Source: Banque de la Republique du Burundi.

August 1980 -40- Table 13

BURUNDI

Volume of Exports by Type

Exports 1975 1976 1977 1978 ------'000 net tons------

Coffee 26.5 21.8 16.8 22.7

Tea 0.9 1.1 1.2 1.3

Cotton 0.8 1.8 0.1 3.6

Asbestos 1.2 1.1 0.8 0.9

Others 1.4 1.4 2.0 3.1

Total 30.8 27.2 20.9 31.6

Source: Banque de la Republique du Burundi Ministere du Plan Exploitation de Port du Bujumbura

August 1980 -41- Table 14

BURUNDI

Volume of Imports by Type

1975 1976 1977 ------'000 net tons------

Food Products 24.5 24.9 37.8 - Cereals and grains 10.6 13.0 13.8 - Saltl/ 7.3 5.3 12.6 - Sugar 1.0 1.3 3.1 - Other 5.6 5.3 8.3

Textiles 3.6 3.2 4.5

Other Consumption Goods 4.9 4.3 6.1

Capital Goods 5.0 4.2 5.0 - Machinery 1.6 1.1 1.6 - Transport Equipment2/ 2.0 2.0 1.5 - Other 1.4 1.1 1.9

Intermediate Goods 44.6 46.0 58.5 - Cement 19.0 16.7 23.2 - Petroleum Products 18.7 22.7 25.0 - Other 6.9 6.6 10.3

Total 82.6 82.6 111.9 (of which Bulk Cargo) 46.6 47.0 64.8

1/ For all uses.

2/ Includes private cars.

Source: Banque de la Republique du Burundi Magasins Generaux Exploitation de Port du Bujumbura

August 1980 -42- Table 15

BURUNDI

External Traffic by Route - 1977

'000 tons %

I. INCOMING TRAFFIC

A. International 58.6 50.9

- via Mombasa 5.8 5.0 - via Dar es Salaam 51.6 44.8 - air 1.2 1.0

B. Regional 56.6 49.1

- Kenyal/ 8.4 7.3 - Uganda - - - Rwanda 0.1 0.1 - Zaire 3.6 0.3 3.1 - Tanzanial/ 36.0 7.4 - Zambia 8.5

Total 115.2 100.0

II. OUTGOING TRAFFIC

A. International 19.7 94.7

- via Mombasa 0.9 4.3 - via Dar es Salaam 18.2 87.5 - air 0.6 2.9

B. Regional 1.1 5.3

- Rwanda 1.0 4.8 - Other 0.1 0.5

Total 20.8 100.0

1/ Mostly petroleum products routed indirectly through Tanzania and some through Kenya. From the beginning of 1979, bulk of petroleum imports coming from Nairobi via road.

Source: Banque de la Republique du Burundi Exploitation de Port du Bujusmbura Mission Estimates August 1980 -43- Table 16

RWANDA/BURUNDI

Structure of Exports

Rwanda

1970-72 1975-77 annual average percent annual average percent (tons) (tons)

Coffee 13.0 64.0 27.5 72.8

Tea 2.0 9.9 4.8 12.7

Minerals 2.9 14.3 3.2 8.5

Others 2.4 11.8 2.3 6.0

Total 20.3 100.0 37.8 100.0

Burundi

1970-72 1975-77 annual average percent annual average percent (tons) (tons)

Coffee 21.4 66.0 21.5 82.7

Tea 0.3 0.9 1.1 4.2

Cotton 3.4 10.5 0.9 3.5

Minerals and Asbestos 1.5 4.7 1.2 4.6

Others 5.8 17.9 1.3 5.0

Total 32.4 100.0 26.0 100.0

August i980 -44-

RWANDA/BURUNDI Table 17

Structure of Imports

Rwanda

1970-72 1975-77 annual average percent annual average percent (tons) (tons)

Consumption Goods 39.2 42.1 54.0 38.9

- food products 26.3 28.3 37.2 26.8

- other 12.9 13.8 16.8 12.1

Capital Goods 9.9 10.6 14.3 10.3

Intermediate Goods 43.9 47.3 71.4 51.5 of which: Petroleum 21.5 23.1 34.9 25.2

Total 93.0 100.0 139.7 100.0

-Burundi

1970-72 1975-77 annual average percent annual average percent (tons) (tons)

Consumption Goods 41.3 47.3 39.6 42.8

- food products 31.2 35.8 30.7 33.2

- other 10.1 11.5 8.9 9.6

Capital Goods 3.6 4.1 4.7 5.1

Intermediate Goods 42.4 48.6 48.1 52.0 of which: Petroleum 20.1 23.0 21.5 23.3

Total 87.3 100.0 92.4 100.0

August 1980 -45- Table 18

RWANDA/BURUNDI

Origin of Imports

Rwanda

1970-72 1975-77 annual average percent annual average percent (tons) (tons)

Europe 23.3 25.1 39.0 27.9

Africa 40.3 43.3 43.5 31.1

- Kenya 15.3 19.7 29.8 21.3 - Uganda 9.9 10.6 3.5 2.5 - Zaire 3.7 4.0 2.9 2.1 - Burundi 3.3 3.5 1.5 1.1 - Other 5.1 5.5 5.8 4.1

Asia 23.7 25.5 47.5 34.0 of which: oil producers 13.7 14.7 35.4 25.3

America 5.4 5.8 7.6 5.4

Other 0.2 0.2 2.1 1.5

Total 93.0 100.0 139.7 100.0

Burundi

1970-72 1975-77 annual average percent annual average percent (tons) (tons)

Europe 25.3 29.0 27.1 29.3

Africa 33.2 38.0 23.8 25.8

- Kenya 5.2 6.0 4.1 4.4 - Zaire 16.3 18.7 7.7 8.3 - Rwanda 0.3 0.3 0.1 0.1 - Tanzania 10.4 11.9 8.2 8.9 - Other 1.0 1.1 3.7 4.0

Asia 24.8 28.4 34.3 37.1 of which: oil producers 20.1 23.0 21.5 23.3

America 3.5 4.0 5.5 6.0

Others 0.5 0.6 1.7 1.8

Total 87.3 100.0 92.4 100.0

August 1980 RWANDA

External Traffic Forecasts ('000 tons) -

Dar es Salaam (via Kigoma) Dar es Salaam (via Isaka) Year Exports Imports Airfreight to/from Europe From Uganda From Nairobi Mombasa imports exports imports exports imports exports imports exports

113 2 6 1977 31 140 2 3 2 12 27

114 1 6 1978 29 185 3 4 1 54 25

89 5 1979 41 140 4 6 1- 37 37

107 5 1980 40 180 4 5 3 55 36

110 2 6 .. 1981 44 194 5 5 5 62 37

2 7 1982 48 210 5 6 10 65 41 116

120 2 7 1983 52 227 6 7 18 69 44

il8 2 8 1984 55 238 6 7 25 74 47

37 30 109 1985 57 250 7 8 30 60 20 39 32 114 1986 60 263 7 8 32 63 21

41 34 120 1987 63 276 7 8 33 66 22 43 35 126 1988 66 290 8 9 35 69 23 45 38 132 1989 70 304 8 9 36 73 24

47 39 139 1990 73 319 8 10 38 77 26

H 03 (D AUgUSt 1980 ko BURUNDI

External Traffic Forecasts/ ('000 tons)

Airfreight to/from Other Europe Mombasa Northerz;/ Dar es Salaam Other Routes Route- Year Exports Imports Experts lmports Exports Imports Imports Exports Imports Exports Imports

1977 21 115 1 1 1 6 8 18 86 1 14

1978 32 125 1 2 1 6 9 29 95 1 13

1979 35 144 1 3 3 15 12 30 92 1 22

1980 37 150 1 3 2 12 13 32 98 2 24

1981 40 156 1 4 1 10 15 36 105 2 22

1982 42 163 1 4 1 8 23 38 iO 2 18

1983 44 170 1 4 1 8 24 40 116 2 18

1984 46 177 2 4 1 8 26 42 122 2 17

19,85 49 186 2 5 2 8 29 43 128 2 16

1986 51 195 2 5 2 8 34 44 134 3 14

1987 54 205 2 5 2 9 36 47 141 3 14

1988 56 215 2 6 2 9 37 49 149 3 14

1989 59 225 3 6 2 9 42 51 154 3 14

1990 62 237 3 7 2 9 44 54 163 3 14

1/ Does not include potential traffic due to proposed nickel project. 2/ Import traffic originating in Nairobi and Uganda. o

August 1980 RWANDA

Comp arative Financial Costs for Transport of General Cargo Imports from Europe to K(1 all

All Surface Surface/Air All Air

via Mombasa via Dar es Salaam

US$/ton % USS$/ton % US$/ton US$/ton Value Value Value Value

I. International Transport 200 220 200 1485

II. Forwarders' Comprehensive fee: Surface route 340 2.25 210 1.50 Europe-Kigali

IlIt. Air Transport and associa- X ted charges: Mombasa-Kigali 490

IV. Insurance 5.00 6.00 4.00 0.80

V. Miscellaneous charges 2.00 2.00 2.00 2.00

SUBTOTAL 540 9.25 430 8.00 690 7.50 1485 2.80

VI. Financial Time Costs 1.40 8.00 1.10 0.20

TOTAL 540 10.65 430 16.00 690 8.60 1485 3.00

August 1980

b-i 0m BURUNDI

Comparative Financial Costs for Transport of General Cargo Imports from Europe to Bujumbura

All Surface Surface/Air All Air

via Mombasa via Dar-es-Salaam US$/ton X US$/ton % US$/ton % US$/ton % Value Value Value Value I. International Transport 200 220 220 1535

II. Forwarders' Comprehensive fee: Surface route Europe- 435 2.75 115 Bujumbura

III. Air Transport and associa- ted charges Dar es Salaam- 470 Bujumbura

IV. Insurance 6.00 6.00 4.00 0.80

V. Miscellaneous ^harges 5.00 5.00 5.00 5.00

SUBTOTAL 635 13.75 335 11.00 690 9.00 1535 5.80

VI. Financial Time Costs 1.60 8.00 2.00 0.20

TOTAL 635 15.35 335 19.00 690 11.00 1535 6.00

August 1980 m

t' -50- Table 23

DISAGGREGATED FINANCIAL COSTS FOR ALTERNATE ROUTES (GENERAL CARGO 1MPORTS)

Dar es Salaam - Bujumbura (Rail/lake)

US$1 % CIF /ton I. Dar es Salaam Port

A. Wayleave Charge 1.20 B. Handling 6.60 C. Stevedoring 4.90

II. AMI Handling at Dar/Kigoma 14.50

III. Forwarding Services 27.60

IV. Dar es Salaam - Kigoma Rail Tariff 41.60

V. Kigoma - Bujumbura Lake Barge 10.00

VI. Bujumbura Port Charge 5.60

VII. Intervention Tax 2.0

VIII. Insurance 3.0

IX. Statistical Charge 3.0

TOTAL 112.00 + 8.0

Dares Salaam - Kigali (Rail/lake/road)

US$ % CIF

I - VI. Same as above 112.00

VII. Transit Charges at Bujumbura 5.60

VIII. Bujumbura - Kigali Transport 91.35

IX. Insurance 2.0

X. Magasins Generaux 2.0

TOTAL 208.95 + 4.0

August 1980 Table 24

DISAGG'REGATED FINANCIAL COSTS FOR ALTERNATE ROUTES (GENERAL CARGO IXPORTS)

Mombasa - Kigali (All-road)

US$ % CIF /ton

I. Mombasa Port

A. Wharfage 1.0 B. Handling 8.10 C. Stevedoring 13.50 D. Port Agency Commission 8.60

II. Bond Charges 1.25

III. Documentation 3.45

IV. Transit Charges at Mombasa 37.80

V. Forwarding Services 62.55

VI. Road Transport: Mombasa - Kigali 206.00

VII. Insurance 2.0

VIII. Magasins Generaux 2.0

TOTAL 340.00 + 6.25

Mombasa_- Bujumbura (All-road)

US$ % CIF /ton

I - VIII. Same as above - except: 340.00

I. (A) Mombasa Port Wharfage 1.5

IX. Kigali - Bujumbura Transport 91.35

X. Statistical Charge 3.0

TOTAL 431.35 + 9.75

August 1980 -52- Table 25 DISAGGREGATED FINANCIAL COSTS FOR ALTERNATE ROUTES (GENERAL CARGO IMPORTS)

Mombasa - Kigali (Rail/road)'l/

US$ % CIF /ton I. Mombasa Port

A. Wharfage 1.0 B. Handling 8.10 C. Stevedoring 13.50 D. Port Agency Commission 8.60

II. Bond Charges 1.25

III. Documentation Charges 3.45

IV. Forwarding Services 62.55

V. Rail Tariff

A. Mombasa - Malaba 36.80

VI. Transit Charges at Malaba 37.80

VII. Road Transport: Malaba - Kigali 100.00

VIII. Insurance 2.0

IX. Magasins Generaux 2.0

TOTAL 270.80 + 6.25

Mombasa - Bujumbura (Rail/road)

US$ % CIF

I - IX. Same as above - except: 270.80

I. (A) Mombasa Port Wharfage 1.5

IX. Kigali - Bujumbura Transport 91.35

X. Statistical Charge 3.0

TOTAL 362.15 + 9.75

1/ Hypothetical case of transshipment at Malaba; if rail link were extended to Kampala, transport costs would be even lower.

August 1980 -53- Table 26

Charges at Indian Ocean Ports

Dar es Salaam Port

General RBZ TSh/HT %CIF TSh/HT %CIF

1. Wharfage/Wayleave charges

- imports 1.50 5 exempt - exports 1.25 5 exempt

2. Overquay

imports 28.5 28.5 (palletized/unitized) (23.5) (23.5) - exports 16.5 16.5 (palletized/unitized) (13.5) (13.5)

3. Shore Handling

- regular 17.5 17.5 - overtime 25.5 25.5 - copper 10.0 10.0

4. Storage/Late Documentation fee 12/day exempt

Mombasa Port

General Rwanda TSh/HT %CIF TSh/HT %CIF

1. Wharfage

- imports 1.5 1.0 - exports (general) 1.0 1.0 - coffee/tea exports 0.8 0.8

2. Overquay

- regular 40.0 40 - overtime 60.0 60 - rebate on unitized/palletized cargo 5.0 5

3. Shore Handling

- imports 30.0 30.0 (through palletized/unitized) 25.0 25.0 - exports 16.5 16.5 (through palletized/unitized) 13.5 13.5

4. Storage 12/day 3/day

5. Late Documentation fee 12/day 5/day

August l9Rn -54- Table 27

Dar es Salaam Port Traffic: 1974-79 ('000 tons)

(est.) 1974 1975 1976 1977 1978 1979

General Cargo

IMPORTS 531 867 700 1. Tanzania 447 406 446 520 569 406 400 2. Zambia 253 506 68 90 105 80 3. Zaire, Burundi and Rwanda 61 66 1034 1190 1378 1180 4. Total General Cargo Imports 761 978

EXPORTS 207 132 236 280 1. Tanzania 202 179 676 705 607 450 2. Zambia 319 395 104 118 85 60 3. Zaire, Burundi and Rwanda 104 65 987 955 928 870 4. Total General Cargo Imports 625 639 1617 2021 2145 2306 2050 TOTAL GENERAL CARGO TRAFFIC 1386

OIL 249 217 235 IMPORTS (including bunkering) 249 196 1818 1892 1736 EXPORTS 1698 1772

August 1980 Table 28

1975-78 Momnbasa Port Traffic: (OOO tons)

1978 1975 1976 1977 2560 2798 3220 Bulk 2297 General Cargo including of which: 106 84 95 83 Rwauda Traffic 6 4 5 7 Burundi Traffic 3662 3345 3200 Bulk Petroleum 5959 S905 5998 Total

Ports Authority. Source: EAHC and Kenya

August 1980 -56- Table 29

Kigoma Port Traffic ('000 tons)

BURUNDI RWANDA ZAIRE

import export import export import export

1969 42.196 21.565 3.182 0.639 17.970 79.772

1970 46.685 28.741 4.537 0.787 25.359 105.730

1971 54.532 27.997 7.739 2.268 27.406 96.802

1972 51.702 31.128 4.623 2.479 19.113 87.582

1973 44.916 28.277 7.040 2.978 19.054 85.569

1974 48.787 26.270 14.012 3.834 17.175 85.017

1975 59.097 30.012 12.251 1.522 14.849 41.987

1976 60.781 26.798 7.622 1.251 20.241 87.329

1977 81.940 19.718 5.644 1.901 10.374 82.033

Source: HAECON Study on Kigoma Port

August 1980 Kenya Railways

Details of the Mombasa-Nairobi-Malaba Line

Ruling Distance Number of Trains Permissible Speed Gradient Rails Section km miles each way 1/ m.p.h. up/down lb/yd

1. Mombasa-Voi 166 103 15 30/45 ) ) 2. Vol-Sultan Hamud 236 147 13 30/45 ) ) 1.5/1.18 95 3. Sultan Hamud-Konza 58 36 14 30/45 ) ) 4. Konza-Nairobi 70 43 17 30/40 )

5. Nairobi-Nakuru 181 113 14 30/35 1.5/1.5 ) ) 6. Nakuru-Eldoret 205 126 10 25/35 1.5/1.8 ) ) 80/75 7. Eldoret-Lesero 17 11 12 35 1.0/1.0 ) )I 8. Lesero-Malaba 162 100 9 30/40 1.0/1.0 )

Total Main Line 1095 682

1/ during 1977

Source: Kenya Railways and Bank Staff

August 1980 o -58-

Kenya Railways Table 31

Statistics on Equipment and Operating Performance

Equipment: (Number of Units)

1975 1976 1977 1978 1979P 1. Line Locomotives -- 160 174 202 238 2. Shunting Locomotives (units) -- 73 72 72 97 3. General Freight Wagons (units) 13669 13833 13350 14009 14860 4. Tank Wagons (units) 2145 2186. 2445 2023 2020 5. Other Units 694 691 674 672 670

Operating Performance: 1983 1975 1976 1977 1978 target 1. Average Diesel Locomotive Availability (%)

- Line Locomotives 59 55 60 62 80 - Shunters 71 73 69 63 80 2. Average Wagon Availability (%) -- 80 80 81 90 3. Average turnaround time: general freight wagons - 9 9 10 8

P: preliminary

Source: EAR and Kenya Railways.

August 1980 -59- Table 32

Kenya Railways

Freight Traffic: 1971-78 ('000 tons)

1971 1972 1973 1974 1975 1976 1977 1978 Kenya Internal Traffic 2,569 2,599 3,164 3,235 2,753 3,382 3,470 3,508

Uganda-Kenya Traffic 1/

- To Uganda 883 738 625 597 487 244 252 161 From - Uganda 461 470 504 368 300 173 128 76 Total 1,344 1,208 1,129 965 787 418 380 237

Total Traffic on KR 3,913 3,807 4,293 4,200 3,540 3,800 3,850 3,745

1/ Includes traffic to and from Rwanda and Burundi up to 1975, after which all Rwanda and Burundi traffic has moved by road.

Source: EAR Statistical Divest and Kenya Railways.

August 1980 Tanzania Railways

Details of the Central and Mwanza Lines

Distance Number of trains Net tonnage/ Av. Speed Ruling Rails Section km miles per day each way train -up/down Gradient lb/ (m.p.h.) up/down yd

1. Dar es Salaam- Morogoro 202 126 5 330 20/19 2.0/2.0 60

2. Morogoro-Tabora 648 529 3 938 33/32 1.8/1.0 56

3. Tabora-Kigoma 403 251 2 938/550 27/25 1.0/1.4 56

4. Tabora-Isaka 132 82 3 650 27/27 1.0/1.0 60

5. Isaka-Mwanza 247 154 3 650 24/24 1.25/1.0 60

Source: Tanzania Railway Corporation

August 1980 I 0r Tanzania Railways

Freight Traffic: 1977-78 ('000 tons)

1977 1978

Section Net tonnage Gross tonnage Net tonnage Gross tonnage

1. DSM - MOR - DSM 958 2108 854 2050

2. MOR - TBR - MOR 1513 3656 1268 2667

3. TBR - KGM - TBR 381 936 371 869

0' 4. TBR - MZA - TBR 649 1512 570 1302

Source: Tanzania Railway Corporation.

August 1980

I-a0 0 -62-

Northern Route

Operating Costs for 25-ton Tractor Trailer Combination-' Table 35 (Kigali-Mombasa-Kigali; 24 trips per year)

US Dollars at 1979 prices

Per Year Per Trip Fixed Costs

1. Amortization 37,720 1,571

2. Salaries - Chauffer and Boy Chauffeur 2,175 91

3. Insurance 545 23

4. Road Taxes (local) 540 22

5. Transit Goods License 520 22

6. Other Overhead Costs 5,435 226 Variable Costs

7. Diesel 24,410 1,017

8. Oil and Lubricants 1,960 82

9. Tyres and tubes 19,480 812

10. Repair and spare parts 18,205 758

11. Salary bonus 3,150 131

12. Supplies for drivers 2,445 102

13. Border fees 13,770 574

14. Total 130,355 5,431

1/ FIAT 682 N3 with trailer

Source: Societe de Transports Internationaux au Rwanda (STIR) and Mission estimates

August 1980 -63-

Northern Route Table 36 l/ Road Transport Tariffs--

US$/ton MOMBASA-KIGALI

1. Bulk cargo in bags of less than 100 kgs 174 3 2. General cargo (2m - 1 ton) 204

3. Iron and steel structurals 174

4. Cement 174

5. Wood 182 KIGALI-MOMBASA

6. Coffee 167

7. Tea 134 NAIROBI-KIGALI

8. Petroleum 196 KAMPALA-KIGALI

9. Bulk cargo in bags of less than 100 kgs 65 3 10. General cargo (2m = 1 ton) 71

11. Iron & Steel structurals 67

12. Cement/Wood 65 KIGALI-KAMPALA 3 13. General cargo (2m = 1 ton) 54

1/ Road tariffs are shown for Kigali only. For Bujumbura, there would be an additional charge of $30-$50 per ton for imports.

Source: Societe de Transports Internationaux au Rwanda (STIR)

August 1980 -64= Table 37

Operating Costs - 707 Cargo Aircraft

A. Fixed Costs *

(a) Aircraft related US$

- interest 77,717.39 - amortization 64,764.50 - insurance (aircraft) 12,123.75 - insurance (crew) 993.75 - equipment depreciation 3,975.00 - operating licenses 3,975.00 - set up costs 511.78

(b) Personnel costs

- 4 man crew 33,390.27 - 2 ground engineers 2,173.91 - 2 loading supervisors 1,788.76 - crew training 3,676.90 - uniforms 596.25 - outstation costs 3,975.00 - crew accommodation 20,868.91 - crew allowances 4,347.83

(c) Banking charges 2,981.28

(d) Administrative costs 43,478.26

Total fixed costs 281,338.55

B. Variable Costs** 3 hr 10 hr flight flight

- Fuel 4,230.98 40.585.57 - Maintenance 1,552.25 8,347.50 - Landing fees 1,222.33 3,110.43 - Handling 3,295.00 7,985.50 - Navigation charges 572.40 1,888,13 - Catering 198.75 397.59

Total variable costs 11,071.71 62,314.72

* Monthly costs for 182 hrs total flying

** per flight

All costs in 1979$

Source: A-ir Rwanda, July 1979

August 1980 -65- Table 38 ARNOLAC FLEET

NOMINAL CAPACITY OF TYPE OF MATERIAL VESSEL NAME TONNAGE GOODS HOLD

TUR8 Camus -

Tanganyka 30

Mwanza -

Harbour tugs Bujumbura Ngiri - Kigoma Njiva

Kivu 250 395m3 Self propelled barge Impala -

Swala _

Twiga -

Tank barges Lubaya 375 410m3

Kasimia 150 145m3

TK 17 120

General cargo barges Warega 1200

Albertville 700 1290m3

Nyanza 300 600m3

Mugandja 450

Murumbi 450

Baraka 400 660m3

Usumbu 400 660m3

Baudouinville 350

Moliro 200 350m3

Source: ARNOLAC

August 1980