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TANZANIA Transport Sector Review Acknowledgement

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TANZANIA Transport Sector Review Acknowledgement TANZANIA Transport Sector Review Acknowledgement This Review was undertaken by the African Development Bank (AfDB) as part of its economic and sector work program in Tan- zania. The country’s needs for transport infrastructure and ser- vices are immense and well beyond the financing limitations of the Government, multilateral institutions, bilateral donors and the private sector combined. It is, therefore, important to identify priorities to ensure that investments are properly integrated and generate the maximum economic and social benefits to the eco- nomy. This Transport Sector Review was based on discussions with a wide range of transport and infrastructure institutions and individuals in the country including the donor community together with a review of the large number of sector reports and studies that have been completed over the past several years. The recommendations of this Review are based on the priority requirements in the various modes and their inter-linkages but ta- king into account projects that have been committed to by other donors and the Government and the level of resources that are expected to be available to AfDB during the next African Deve- lopment Fund program cycle. The Review was spearheaded by the AfDB’s Transport and ICT Department, Transport Division 2, under its Manager Amadou Oumarou. Project coordination was undertaken by Lawrence Kiggundu, Chief Infrastructure Engineer, Tanza- nia Field Office and supported by Girma Bezabeh, Transport Engineer, OITC2. The analysis and report was prepared by Charles M. Melhuish, Transport Economist (Staff Consultant) over the period January 2012–May 2012. The author would like to thank those individuals and organisations that provided information and contributed towards the analysis and results of the review and, in particular, the staff of the Ministry of Transport, Policy and Planning Division under the office of Ac- ting Director Gabriel Migire. The draft findings were discussed at a stakeholders workshop held at the Serena Hotel, Dar es Salaam on 18 May 2012 which provided valuable information and feedback to support the findings. TANZANIA Transport Sector Review Transport & ICT Department, September 2013 I TANZANIA Transport Sector Review Executive Summary 1 | Introduction A. Background 1 B. The Transport Sector 1 C. Objectives of the Review 1 2 | Development Context A. Vision 2025 2 B. MKUKUTA 3 C. National Transport Policy 4 D. Transport Sector Investment Programme 5 E. Local Government Transport Programme 6 3 | Road Subsector A. Introduction 6 B. Overview of the National Road Network 7 1. Road Network Description 7 2. Vehicle Fleet 8 ` 4. Road Condition 10 C. Overview of Local Roads 12 1. Description of the Network 12 2. Program Allocations 12 3. Future Program 14 D. Roads Subsector Funding 14 1. Capital Investments 14 2. Road Maintenance 15 E. Local Construction Industry 17 F. Regulation of the Road Transport Industry 18 G. Key Subsector Operational Issues 20 1. Road Safety 20 2. Overloading 22 H. Key Issues 24 1. National Roads 24 2. Local Roads 26 4 | Urban Transport Subsector A. Introduction 28 B. Transport Planning 28 1. Road Plan 30 2. Other Cities 33 C. Key Issues 35 1. Institutional 35 2. Financial 35 3. Land Use Planning 36 4. Commitment 36 I 4 AFRICAN DEVELOPMENT BANK GROUP CONTENT I 5 | Port Subsector A. Introduction 36 B. Tanzania Ports Authority 37 ` ` ` ` 4. Motor Vehicle Imports 40 !"` #$ %` # D. Financial Situation 41 &''`" # F. Financial Projections 42 G. Description of the Ports 43 1. Dar Es Salaam Port 43 *+/9:; # # 4. Mtwara Port 50 5. Small Coastal Ports 51 6. Lake Ports 53 H. Key Issues 54 <&;=!: # 2. Large Investments is Required 54 3. Role of the Private Sector 55 4. Mbegani-Bagamoyo Investment 55 5. Development of Mtwara 55 6. Development of Lake Ports 56 6 | Railway Subsector A. Overview 56 1. Reli Asset Holding Company/Tanzania Railway Ltd. 56 2. Tanzania-Zambia Railway Authority 58 9?;` 1. Reli Asset Holding Company/Tanzania Railway Ltd. 58 2. Tanzania-Zambia Railway Authority 62 C. Key Issues 64 1. Tanzania Railway Ltd. 65 2. Tanzania-Zambia Railway Authority 65 7 | Airport Subsector A. Introduction 66 9=@` %% 1. Air Passengers 66 2. Air Cargo 68 @<'' % 4.cInstitutions 71 C. Key Issues 73 AFRICAN DEVELOPMENT BANK GROUP 5 I I TANZANIA Transport Sector Review 1. Need for a Subsector Plan 73 2. Investment 73 3. Safety 74 4. Reforms 74 5. Julius Nyerere International Airport 74 8 | Zanzibar Transport A. Introduction 74 B. Transport Sector Operations 75 1. Port Subsector 75 2. Airport Subsector 76 3. Road Subsector 77 C. Key Issues 78 1. Port Subsector 78 @!'+ Q ?!'+ Q 9 | Pipeline Activities @<' Q B. TAZAMA Pipeline 80 C. Songo-Songo Pipeline 80 D. Mnazi Bay 80 E. Oil Distribution 80 F. Future Development 81 10 | Strategies for Future Support A. Development Plan Priorities 81 B. Investment Opportunities 83 1. Transport Program Needs 83 2. Roads Subsector 84 3. Urban Transport Subsector 85 4. Port Subsector 86 5. Railway Subsector 87 6. Airport Subsector 88 QWX+ "Y; 11 | References Appendixes :?'![ % 2. Comparative Socioeconomic Indicators 101 3. Total Revenue Collected 102 #` $ 5. Air Passenger Forecasts 105 6. Air Cargo Forecasts 108 Tables 1. Growth in the Vehicle Fleet 8 2. Condition of the National Road Network 11 I 6 AFRICAN DEVELOPMENT BANK GROUP CONTENT I 3. Road Condition by Pavement Type 11 4. Condition of Local Roads 12 5. Budget for Local Roads Development 13 6. Annual LGTP Physical Performance 13 7. Road Maintenance Financing Gap 17 8. Registered Contractors 18 \':+]:+<' 10. Road Accident Trends 20 11. Road User Facilities 21 12. Vehicle Overload Control 23 `@ #`^@@' ` #$ %[!": # Q` # 18. Financial Surplus 42 ^@ # $=!: # !"=!: #Q 22. Port Performance Indicators 48 ` $ #* 25. Cargo Handled at Mwanza Port 53 %?]" 27. TRL Performance Indicators 60 28. TAZARA Performance Indicators 64 "'"'@ % 30. Passenger Throughput at Zanzibar International Airport 77 31. Indicative Expenditures for TSIP Phase 2 83 !'::;;^ $ Charts 1. Trends in Road Accidents 21 ?]" 3. Trend in TAZARA Freight 62 Figures 1. Bus Rapid Transit Phase 1 32 =9*: # 3. Dar es Salaam Port 44 #]_<= # 5. Local of Small Coastal Ports 52 6. Location of Major Airports in Tanzania 67 7.Potential Natural Gas Pipeline Developments 82 Maps X'`?\` 2. Location of Mtwara Port 51 3. Location of the Raiway Systems 57 4. Location of Zanzibar 75 AFRICAN DEVELOPMENT BANK GROUP 7 I I TANZANIA Transport Sector Review EXECUTIVE SUMMARY limited resources to invest and a large amount of infras- tructure and equipment is now beyond its economic life. " : : " " $ A I Background have delivered significant change to the structure of the economy through the introduction of market-based pri- Tanzania’s national development strategy emphasises cing and loosening controls on trade. However, for mar- that extensive and efficient infrastructure is critical to en- ket forces to be successful, good transport services are sure the effective functioning of the country’s economy. essential. It is in this context that the African Development Bank (AfDB) aims to strongly focus on infrastructure as an ena- In this respect it is necessary to look wider than just the in- bling sector of the economy. Thus, a sizeable share of the frastructure to make sure that complementary bottlenecks Bank’s new commitments will be directed to infrastructure and non-tariff barriers are also removed. Such bottlenecks investments, focusing on reducing travel times between are encountered when policies do not promote high quality regions, integrating the national market and connecting it services and bureaucratic administrative procedures limit to other markets in the East African Community, and elimi- efficiency. Removal of non-tariff barriers is also important nating non-tariff barriers to trade. for the efficient transport of long distance freight. Harmo- nisation of rules and regulations between countries is nee- Tanzania is the international gateway for several of its lan- ded to promote the flow of goods and services between dlocked neighbouring countries. Burundi, Rwanda, Ugan- neighbouring countries. da, DR Congo, Zambia and Malawi are all dependent to some extent on the country’s transport network for their 1. Roads Subsector access to global markets. The road network in Tanzania currently comprises 86,472 km of roads in the formal inventory of which B I Development Context 12,786 km are categorised as trunk roads, 21,105 km as regional roads and the remaining 52,581 km as The development of Tanzania’s transport infrastructure district, urban and feeder roads. The trunk and regio- will be undertaken within the scope of existing plans for nal roads are under the responsibility of the Tanzania development. These plans include those that are oriented National Roads Agency (TANROADS) which is a semi- towards the general development of the economy such autonomous agency under the Ministry of Works. The as the Vision 2025, the National Strategy for Growth and district, urban and feeder roads are the responsibility of Reduction of Poverty known, by its Swahili acronym, local government authorities (LGAs) who are under the MKUKUTA, and the First Five-Year Development Plan, and oversight of the Prime Minister’s Office Regional Admi- those that guide the development of the transport sec- nistration and Local Government (PMO-RALG). PMO- tor such as the Implementation Strategy of the Transport RALG has an oversight function of preparing policies Policy of 2011 to 2025, the Local Government Transport and strategies in consultation with stakeholders as well Programme (LGTP) and the Transport Sector Investment as coordinating, monitoring, and providing support to Programme (TSIP). LGAs in road works implementation activities. PMO-RALG is currently preparing the second phase of C I Overview of the Transport Sector LGTP covering 2012/13– 2016/17 where it is intended to accelerate the size of the local roads program based on The transport system in Tanzania consists of five modes: the lessons learned from past experiences.
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