Ctbl-Watch Africa Issue 8 | August 2014

CTBL-WATCH AFRICA ISSUE 8 | AUGUST 2014

Revisiting The Dakar Off-Dock Terminal 6-Months On! Full Story On Page 5

Mozambique-Thailand: US$4.5 Angola: China Rebuilding Of Côte d’Ivoire, Burkina Faso: Billion Coal Rail-Port Project 17Benguela Railroad Completed 26$895m Rail Link 26 CTBL-WATCH AFRICA ISSUE 8 | AUGUST 2014

Contents

03 / 09 / Corridor Review Eastern & Southern Africa 05 / 23 / African Group News Western Africa

Top Stories

Revisiting The Dakar Off-Dock Terminal 6-Months On!

Mozambique-Thailand: US$4.5 Billion Coal Rail-Port Project

Angola: China Railway Construction Completes Rebuilding Of Benguela Railroad

Côte d’Ivoire, Burkina Faso: Bollore, Pan- African Minerals Ink $895m Rail Link

1 CMA CGM Marseille Head Ofﬁ ce The African Inland Freight Report 4, Quai d’Arenc 13235 Marseille cedex 02 France Brought to you by CMA CGM / DELMAS Marketing Tel : +33 (0)4 88 91 90 00 www.cmacgm.com Website: www.delmas.com Email: [email protected] Disclaimer of Liability Tweet: @DelmasWeDeliver CMA CGM / DELMAS make every effort to providep and maintain usable, and timely information in this report. No responsibilityp is accepted for the accuracy, completeness, or relevance too the user’s purpose, of the information. Accordingly Delmas denies any liability for any direct, direct indirect or consequential loss or damage suffered by any person as a Rachel Bennett Dominic Rawle result of relying on any published information. Conclusions drawn from, or actions undertaken on the basis of, such data and information are the sole responsibility of the reader.

News Headlines By Region Eastern & Southern Africa Mozambique: US$4.5 Billion Coal Rail-Port Project / Major Overhaul For Beira Railway / Delivery Of Locomotives To Carry Coal From Tete To Nacala

Namibia: Trans-Kalahari Railway On Track

Rwanda: Cooperative Agreement Improving Regional Trade / Informal Export Receipts Slump To Widen Trade Deficit / New ICD In Masaka

South Africa: US Ex-Im Extends $US563 Million Transnet Guarantee / Transnet Freight Rail Signals Bold Plans For Growth / Transnet Wagon Refurbishment Facility Officially Opened / Transnet Appoints New Group Executives

Tanzania: Tazara Flyover To Start November / Kigoma-Burundi Rail Construction To Start December / TPA To Establish Block Trains For Transportation To DR Congo / TRL Gets New Wagons From India / TAZARA Operations Decentralised

Uganda: Traders To Report Regional Barriers / URA Starts Clearing Through Single Customs System / Kampala-Juba-Addis-Djibouti Corridor - Transport Facilitation / Road Sector Support Project 3 [RSSP3]

Zambia: Tanganyika Corridor To Benefit Zambia / Zambia Eyes Regional Trade Hub Status, Tempts Investors With Zero-Tax

Zimbabwe: Zim-EU Business Information Centre Opens / US$460 Million Loan For Railway Western Africa Angola: China Railway Construction Completes Rebuilding Of Benguela / US Financing To Facilitate Regional Railway Connection

Côte d’Ivoire: Road Facilitation - Mano River Union / Bollore, Pan-African Minerals Ink $895m Rail Link

DRC: Development Tshikapa-Mbuji Mayi Road: Tshikapa-Kamuesha Section [87 Km]

Gabon: Libreville-Brazzaville Corridor Road Receives Funding / Port-Gentil, Libreville Road

Ghana: Accra-Tema Motorway Project Underway

2 CTBL AFRICA CORRIDOR REVIEW

Eastern & Southern Africa

Corridor Current Situation 1 ● Kenya-Great Lakes/S. Sudan The Group offers extensive CTBL services throughout Kenya. Our new service to Juba, South Sudan, is running well. 2 ● Tanzania-Great Lakes Roads from Dar Es Salaam to North Rwanda, Burundi and DRC (Goma / Bukavu / Uvira) are in good condition. Burundi transit times are still impacted due to a deviation to avoid a broken bridge. Trucks are forced to use another route adding an additional 200-km equating to 1-2 days transit. Rwanda, Burundi and Uganda are now part of the EAC single custom territory with Tanzania. A new custom tool in Dar Es Salaam was set up for this evolution directly impacting on the corridor from Dar Es Salaam to Burundi and Rwanda. For now this new custom system is creating delays in documentation but once stakeholders are used to the system it should be beneficial for our activity and have a positive impact on transit times. 3 ● Tanzania-Copper Belt This corridor has REOPENED! Roads through Mbeya offer a good alternative to the train to Ndola. Traffic is back to normal. The Group is the only shipping line to have its own office in Lubumbashi and thanks to a newly appointed Branch Manager and staff we closely monitor the local situation. For DRC, ZAMBIA and MALAWI no change except for restrictions on documentation due to a new custom system in Dar Es Salaam. A similar project is set for Zambia and DRC as part of the single custom territory in the future. 4 ● Mozambique Nacala Corridor This corridor has REOPENED! All backlogs have been cleared. The Group is in a position to obtain regular allocations and are in negotiations with stakeholder management. CDN the National Rail operator welcomes all bookings. 5 ● Mozambique Beira Corridor A bond agreement with customs is in place and we have our own broker at our agency office to shorten clearance time and trucking. We do offer efficient intermodal solutions under CTBL from Beira to Malawi an alternative to the closed Nacala corridor. 6 ● Mozambique Maputo Corridor Running well. We are using our transporters bond at a fee of US$25/ container. The Maputo corridor is 100% dedicated to Harare by rail with transits depending on wagon availability. 7 ● S. Africa Durban Competitive rates offered to final destination in South Africa. - Gaborone [Botswana] & Harare [Zimbabwe] by rail - Lusaka, Copperbelt [Zambia], Maseru [Lesotho], Gaborone [Botswana] by road All rates will be filled in Rand from now on. New trucking service to South Africa destination [banded by distance/radius] New destinations available eg Francistown [Botswana] by rail, Mbabane and Manzini [Swaziland], Kwekwe [Zimbabwe]. Swaziland corridor has now re-opened. 8 ● Namibia Walvis Bay The transport corridor from Walvis-Bay to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well. The corridor is safe and we can offer very good rates. Now also offering Windhoek!

3 Western Africa

Corridor Current Situation 1 ● Senegal-Mali All rail congestion has cleared. Furthermore TRANSRAIL has received 8 railway engines which are now fully operational. Both road and rail options are running smoothly with good transits available. 2 ● Senegal-Guinea Bissau Service is running well. 3 ● Guinea-Mali Service suspended due to lack of reliable local service. 4 ● Cote d’Ivoire-Burkina/Mali Due to the present difficulties in the evacuation of containers by rail via the Abidjan corridor, we recommend the road option for your shipments to Ouagadougou. 5 ● Ghana-Burkina Tema-Ouagadougou service is now available as an additional option. The Tema corridor to Burkina is now the most competitive pricewise, with excellent transit time from Asia with AFEX service. Our expert TBL team is now in place and fully involved for all your booking requests. 6 ● Togo-Burkina/Niger Service is running well. 7 ● Benin-Burkina/Niger Operating well. 8 ● Cameroon-Chad There is a lack of trucks in Douala therefore CTBL transport by road to Chad is not recommended. Political security is still not 100% on this corridor. At present cargo for Chad is better to go by rail and road from N’Goundere as that is faster than the all road route. 9 ● Cameroon-CAR Douala-Bangui is SUSPENDED due to the political deterioration in CAR. 10 ● Gabon Corridor The Libreville-Franceville corridor is SUSPENDED temporarily and will reopen soon. 11 ● Congo Corridor Pointe Noire- Brazzaville bookings currently SUSPENDED. The corridor is expected to open end of September [delayed from July]. 12 ● DRC Corridor Matadi-Kinshasa service running well with transits of 9 days.

4 CMA CGM / DELMAS AFRICAN GROUP NEWS

East African Corridors Reopen For Business CMA CGM / DELMAS are pleased to announce that all East African corridors are open to traffic and available for bookings. Tanzania-Great Lakes Corridor

IMPROVED: Roads from Dar Es Salaam to North Rwanda, Burundi and DRC (Goma / Bukavu / Uvira) are in good condition. We also offer services to Bujumbura and Kigoma. Rwanda, Burundi and Uganda are now part of the EAC single custom territory with Tanzania offering easier access. Tanzania-Copper Belt Corridor

REOPENS: Traffic is back to normal. Roads through Mbeya offer a good alternative to the train to Ndola. We also offer road transits to Kolwezi, Likasi and Kitwe. Meanwhile the Group is the only shipping line to have its own office in Lubumbashi specifically focusing on the copper belt trades. Mozambique Nacala Corridor

REOPENS: All backlogs have been cleared. The Group is in a position to obtain regular allocations and are in negotiations with stakeholder management. CDN the National Rail operator welcomes all bookings. We serve both Blantyre and Lilongwe in Malawi by rail via Nacala.

5 CTBL Enquiries

For details about our service, bookings and all-in rate enquiries please contact your usual CMA CGM / DELMAS agent. For further service details view our Intermodal Services Africa website [https://www.delmas.com/products-services/ our-services/ctbl] or scanning the QR code:

6 CMA CGM / DELMAS AFRICAN GROUP NEWS

Revisiting The Dakar Off-Dock Terminal 6-Months On! In February 2014 CMA CGM / DELMAS expanded its facilities in Dakar, Senegal, with the addition of TCD2 a dedicated multi-activity 15,000m² logistic platform. Six months on we interview Mr. Thierry SOULADIE the Managing Director of TCD about this unique service.

It has been 6-months since the launch of TCD2 can you tell us how the facility has operated during this time? Operations have gone very well. TCD1 and TCD2 are efficient logistic platforms that allow CMA CGM / DELMAS to manage the complete logistic chain from start to finish. As such we can effectively transfer containers direct from the port to the ICD, position a container at a customer’s warehouse, monitor dry and reefer traffic, and handle carrier haulage / TBL to Bamako, Mali. At each facility we closely monitor and control our customers import or export operations along the entire supply chain and so reduce container handling, transportation, and technical costs for reefers [Pre-Trip Inspection [PTI] / cleaning / plugging]. We offer a controlled and autonomous supply chain along with modern equipment.

Main activities include managing containers, positionning dry and reefer at customers’ location, transfering containers to DP World Dakar [DPW], bringing the containers back from our customers after stuffing, handling the containers on the platform, stripping or stuffing the containers in dedicated areas on the platform and local repair of boxes. Meanwhile proximity to our agency office enables effective coordination between our salesforce and TCD management - with such cohesion essential in offering a flawless logistic support.

We help clients prepare their stuffing in the best conditions. Take cashew exporters for instance, we enable them to sort the product on a dedicated area so they can pack their good in 50 kg bags on the ICD. Then we provide them with our weighbridge at TCD1 so they can weight the cashew before exporting it. Exporters of iron ore also found at TCD 1 & 2 the ideal facilities for managing their operations. We put together a logistic chain where they can weight their trucks upon arrival from Mali, stuff the containers on a dedicated area and weight the containers before exporting them. This system enables them to closely monitor the amount of iron ore handled on a day to day basis.

We also provide intermodal services offering a fleet of 12 trucks and 30 trailers, reinforced by affiliated carriers and led by TCD’s transportation department. This activity enables us to ensure the delivery of imported containers in excellent conditions as a part of our Carrier Haulage offer. It also enables us to position and recover export containers for our customers. As such we are developing the transport business to Mali using rail [75%] and road [25%].

All these activities have been developed over the past 6-months while putting in place procedures to consolidate our operations and optimize the traffic flow within our logistic platforms. TCD1 & TCD2 Facilities

Along with the current TCD1 platform which already offers a surface of 12,000m2 each platform provides:

- Organization of multimodal land transportation to end customer in Senegal and Mali - Bonded storage facilities - Reefer cargo containerized under bonded storage [64 plugs] - Stuffing facilities for export cargo base commodities/ores - CMA CGM / DELMAS administrative building on site offering responsive and valued logistical support at the best price - Customs Office located in the port precinct - Bascule bridge for container weighing

7 CTBL Enquiries

How have the customers generally reacted to the service provided by this new facility? We stive to bring solutions to customer’s logistical problems. For example two banana importers chose TCD for the speed with which we transfer import containers from DPW to our platform. Indeed the agency and TCD have put together with DPW a procedure called “automatic transfer” which allows us to transfer dry and reefer containers within 24 hours on our ICD. Thanks to this service, our banana importer can be the first to market its goods at Dakar. This is also true for an Italian company that converts plastic wastes in half processed plastic scrap and package them in 50 kg bags before sending them to China. Production is growing fast and the company faces major storage issues. TCD allows this firm to stock its containers until they reach a bundle of 100 before exporting them to China.

How has this new facility benefitted cargoes destined for Mali? TCD offers Malian companies a stuffing/stripping area tailored to their needs whether they want to import or export. They can safely strip their container at TCD before loading their goods in bulk in a Malian truck under the surveillance of customs. We maintain a close relationship with the management of Transrail and in association we plan and manage transits ensuring smooth transfer along the Dakar/Bamako route.

There is both a Customs office and CMA CGM Group office on site. How has this improved services? TCD 2 has just received the Customs “in bond” status, meaning that both TCD 1 & 2 can now operate under the surveillance of customs. Customs has an office on TCD 1 and TCD 2, which is a huge asset. TCD customs formalities, handled by our transit department, are now faster and more comfortable for our customers.

Can you tell us more about your reefer service? The reefer activity is quite recent for TCD since it was started in March 2014. Our facilities are functional: 64 plugs with 32 secured by a generator, 14 genset at our disposal, an area devoted to PTIs, a cleaning area and a large storage capacity [roughly 200 RF]. The logistic involved for this traffic is sensitive and must be conducted rigorously to meet customer expectations. The first few months TCD handled roughly 20 RF per week but this quicky increased to 80 RF/wk and recently peeked at 250 RF/wk in the tuna season. We look to improve this activity and develop structures for the frozen fish, tuna, fruits & vegetables seasons to 100 plugs and add a second generator.

What do you see in the future for the facility? We are very optimistic for the development of TCD 1 & 2. Direct liason with customers allows TCD to adapt its services and tailor its offer according to their needs. We are contemplating the purchase of Hamar trailers, increasing our reefer facilities, or creating a mobile support team for the maintenance of gensets during the fruits & vegetables season. Potentially we could consider opening a TCD3 located in the the new Diamnadio business area currently under development serving the Diamniado airport, Bargny deepwater port, and the railway junction between Bamako Dakar and Saint Louis. CASESTUDY: Sinosteel

Sinosteel India is a Indian based subsidiary of Chinese state SINOSTEEL Corporation, that trades iron ore sourced from mines in Mali. The company organises the logistic chain from start to finish and sells the ore to buyers in China.

When did you start to work with CMA CGM? Operations with CMA-CGM started in 2013. So far, we have handled 39,000 MT of ore through TCD1 & 2 representing 1,450 containers over 10 months. Lately volumes have dropped due to low commodity prices however we foresee a recovery in the next few months and a raise in our volumes. We are confident that the best lines of our partnership with CMA CGM are yet to be written.

Why did you choose to partner up with CMA CGM? We chose CMA CGM because of its ICD facilities, which are unique in Senegal and Western Africa. We believe CMA CGM is the only one in the region that can provide the kind of services we are looking for. In the preliminary stages of our business with Malian mine owners, we benchmarked different Western African countries looking for structures that could best handle our traffic. TCD stood out as the best option for us. We were particularly sensitive to enough space available for our stuffing operations and the availibilty of a weighbrige on site. We have a very good relationship with TCD’s team and appreciate the responsiveness and adaptability of our contacts at the agency and TCD.

TCD handles our trucks upon arrival from Mali, weights them, stuffs the containers in a dedicated area, weights the full containers, transfers them at DPW, does our transit formalities. Provided market conditions are favourable we expect TCD to handle 300 containers of ore a week. We believe that TCD is able to deal with these kind of volumes. Thanks to its dedicated crew, its fleet of trucks, its spacious facilities and processes we foresee a bright future for our partnership. 8 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

Kenyan Corridors Uganda Maintains Transit Dominance At Mombasa Port

Import cargo to Uganda through Mombasa port has increased as the landlocked country remains the dominant destination for goods. According to the Kenya Ports Authority [KPA], Uganda cargo handled at the port between January and June increased by 14.4% to 2.72 million tonnes compared to 2.38 million tonnes during the same period in 2013. Overall import cargo traffic to neighbouring countries recorded a 9.6% growth at 3.53 million tonnes from 3.22 million tonnes last year. The rise was attributed to the opening of berth #19 in August 2013, improved cargo handling infrastructure, and removal of non-tariff barriers. Uganda controls about 73% of transit cargo with motor vehicles being among the top transit cargo. Rwanda recorded 12.5% growth with 110,540 tonnes from 98,240 tonnes in 2013. Burundi recorded a modest growth of 0.8%. [Overall cargo volumes for H1 2014 at Mombasa rose by 12.8% bringing the total cargo throughput to 11.9 million tonnes from 10.5 million tonnes in H1 2013.] [Star 05/08/14] Mozambique Corridors Maputo Port Utilization & Corridor Maximisation

The Maputo Corridor Logistics Initiative [MCLI] met members and corridor users for an annual review of the developments over the past year. The 630km corridor runs from Gauteng through the Lebombo-Ressano Garcia border post to Maputo port through some of southern Africa’s most industrialised locations. Along the way are citrus growers whose use of Maputo port once infrastructure issues are resolved would reduce travel distance and cost compared with usage of the port of Durban, which handles most of South Africa’s citrus exports. Komatipoort The MCLI noted infrastructural and political challenges have hampered utilisation of Maputo port by South African exporters. Lack of rail services and port congestion have led to delays and negative perceptions. And with Mozambique elections due in October ministers are not considering policy Maputo changes until, after elections. This is hampering finalisation of a one-stop border service [OSBP] and other similar measures. A single electronic window for customs clearance of goods will eliminate petty bribery by allowing prepayment of fees and preapproval of documents. However, while progress has occurred, there is no clarity on when this window will open.

The top priority to maximise the Maputo Corridor usage remains the transforming of the N4 border crossing at Lebombo-Ressano Garcia into an efficient, one-stop 24/7 operation. Although both governments signed up to this goal in 2007, the project hasn’t been fully realised, including legal complexities and infrastructure constraints. Furthermore South Africa’s Department of Home Affairs imposed a R3 000 “guarantee fee” for traders passing goods through the border which prompted riots that temporarily shut the crossing. Also one-directional trade sees trucks returning empty snarling up the border crossing and increasing prices. Nevertheless, traffic on the N4 from Gauteng to Maputo saw a double-digit increase last year. On average 800 trucks pass through the border post daily.

On a positive note some causes of shipping delays have been rectified, such as the redundancy of customs officials scanning cargo twice, once at the border and once at the port. Now only one scan is performed, at the border unless border post congestion necessitates the customs scan is done at the port. And the town of Komatipoort is undertaking a feasibility study on setting up a special economic zone [SEZ] at a strategic location on the Maputo Corridor to promote trade flows. [Business Report 08/08/14]

FACTBOX: Maputo Corridor Logistics Initiative - MCLI is a marketing and advocacy organisation funded by Grindrod, which runs the coal terminal at Maputo, the Maputo Port Development Company [MPDC] and South Africa’s Department of Transport. - Secondary funders include Mozambican ports and railway authority CFM, Swaziland Railway and Transnet Freight Rail. - MCLI seeks to adhere to a 2015 deadline to become a public-private partnership [PPP], which would increase funding for programmes. - Website: www.mcli.co.za

9 Rwanda Northern Corridor Set to Ease Customs Procedures

The Rwanda Revenue Authority [RRA] is ready to implement the Single Customs Territory system across the Northern Corridor which runs from Mombasa and is the major transport link for Rwanda, Uganda and parts of Burundi.

The RRA continues to train and sensitize traders about this initiative. The body aims at enhancing Value Added Tax [VAT] invoicing operations and enforcing use of Electronic Billing Machines [EBM] in not only Kigali, but also other trading centres across the country. RRA aims at expanding usage of e-services for filing and payment of taxes, enhancing implementation of the electronic window system, and rolling out the gold card scheme in customs.

Between July 2013 and June 2014 tax and non-tax revenue amounted to Rwf769billion [$1 billion] against the set target of Rwf793.2billion [$1.1 billion] a 96.9% performance. This shows growth of revenue collection of 15.9% as compared to the same period fiscal year 2012/13. [EA Business Week 18/08/14] Rwanda Cooperative Agreement Improving Regional Trade

The United States Agency for International Development [USAID] and TradeMark East Africa [TMEA] signed a US$5.7 million Cooperative Agreement affirming their partnership under President Obama’s Trade Africa Initiative. The initiative under the USAID Trade Infrastructure Program is aimed at improving efficiency of regional trade in Rwanda.

The program will reduce barriers to cross border trade resulting to 10% increase in total value of exports from EAC region, 25% increase in intra-regional exports when compared to total exports in the region. Again, there is anticipation that a 15% reduction in average time to import or export a container from Mombasa or Dar Es Salaam to Burundi and Rwanda may be achieved and also 30% decrease in the average time a truck takes to cross selected borders. [Rwanda Eye 12/08/14] Informal Export Receipts Slump To Widen Trade Deficit

According to Central Bank statistics, there was a deceleration of 4% in Rwanda’s positive informal trade balance with neighbouring countries as imports increased by 9.7% to US$3.4 million in Q2 2014 from US$3.1 million in Q1 2014. This further widened the country’s trade deficit by 12.14% as total exports in the first 5-months of this year fell by over 2% in value and by 3.10% in volume whilst imports increased slightly by 8.21% in value but decreased by 1.45% in volume.

The slight increase in volume of imports is attributed to a rise in consumer goods that contributed to +1.71% and capital goods of +17.30% while intermediary goods declined by 0.75% due to the decline in the volume of cement imports and others similar products [-10.03%] which accounts for 77.7% of imports volume of intermediary goods. As a result, trade balance deficit widened to US$719.35 million in the first 5-months of the 2014 up from US$641.41 million in the same period under review in 2013 as exports covered only 24.7% of imports. [Rwanda Eye 12/08/14]

10 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

Uganda Traders To Report Regional Barriers

The Ugandan Ministry of Trade, Industry and Cooperatives [MTIC] has commissioned How it works: the Non-Tariff Barriers [NTB] reporting system, where traders will report any problem The user dials *201# and follows the along the different regional trade corridors through a mobile phone and via email. The instructions and submits the complaints new system is designed to be used by anyone with a mobile phone connected to the at a cost of Shs 140 per SMS. 4-telecommunication companies’ networks of UTL, Airtel, MTN and Orange or with internet access. Trade Mark East Africa [TMEA] is supporting the Ministry on this initiative.

With TMEA support, weighbridges have been harmonized in Kenya and Uganda; collection of parking fees at border posts has been harmonized and the 16% VAT for goods on transit through Kenya has been removed. Furthermore clearance of all overstayed vehicles destined for Uganda at Mombasa port had been streamlined and an electronic tracking fee of US$100 had been removed from Kenya and transferred to Uganda Revenue Authority [URA]. [Observer 03/08/14] URA Starts Clearing Through Single Customs System

The Uganda Revenue Authority [URA] has commenced a 3-week pilot project of clearing bulk international cargo through the Single Customs Territory [SCT] since August 11th. The SCT involves removal of internal border customs controls on goods moving between partner states with an ultimate realization of free circulation of goods.

The trial will involve overseas bulk cargo bound for Uganda through the port of Mombasa including clinker, edible oils and wheat grain. After the trial all international containerised cargo will be included. The URA has also started clearing cargo through the southern corridor’s Dar es Salaam Port undertaking a pilot clearing of fuel products imported to Uganda through Dar es Salaam port.

The businesses that have had goods cleared through the SCT system say they have experienced improved efficiency, seen increased supplies and improved bound time, something which has seen them reduce on the cost of doing business. With a single online entry 2-3 days can be saved. [Daily Monitor 11/08/14]

How it works: The East African Community member states, through the Single Customs Territory, have adopted a destination model where duties are assessed and payable upon arrival of goods at the first point of entry. This means the partner states where goods are destined will collect the taxes and notify the first point of entry to release the goods. At the first point of entry, depending on the level of risk, customs officers from the destination country-posted at the first point of entry [Mombasa and Dar es Salaam] - may subject the goods to physical examination before release. Goods will, therefore, move directly to the owner without going through other customs controls at the internal borders and inland customs cargo centres. Goods destined to a bonded warehouse located inland will be declared directly for warehousing at the first port of entry and will move across the partner states on a single regional bond without subjecting them to other bonds at the internal borders.

Uganda / South Sudan / Djibouti Kampala-Juba-Addis-Djibouti Corridor - Transport Facilitation

The Inter-Governmental Authority on Development [IGAD] has received a grant from the African Development Bank NEPAD Infrastructure Project Preparation Facility [NEPAD-IPPF] to finance the transport facilitation and road upgrading studies of the Kampala-Juba-Addis–Ababa-Djibouti Corridor. Part of the grant is intended to cover eligible payments for a consultant to coordinate the project.

The project aims to enhance regional connectivity, reduce transport costs, improve access to local, regional and international markets and boost regional trade. The 16-month study includes Kapoeta-road upgrading study in South Sudan and the trade and transport facilitation study involving soft infrastructure and One Stop Border Posts [OSBPs] studies. [AfDB 31/07/14]

11 Zambia Zambia Eyes Regional Trade Hub Status, Tempts Investors With Zero-Tax

Zambia has outlined plans to establish itself as a regional trade hub that is accessible by its neighbours, development-focused and a driver of intraregional trade and cross-border infrastructure projects. It is geographically located to serve as a link between neighbouring East and West African States, such as Angola and Mozambique and provides access to the Common Market for Eastern and Southern Africa [COMESA] and the Southern African Development Community [SADC] with a GDP of US$508-billion and US$575.5-billion respectively.

To enhance its regional trade hub status, Zambia is currently advancing its 6th National Development Plan [SNDP] covering 2011-2015. The plan outlines the need for an improved road and rail transport network and characterised by a reduction in bureaucracy and red tape. Among this is the ambitious US$5.8-billion Link Zambia 8000 plan, which envisions the construction of 8,000 km of high-quality single-and dual-lane roads.

Zambia had also outlined its intention to develop various inland ports and logistics centres at Chipata, in the east of the country, and the northern town of Kapiri-Mposhi, which boast a railway hub connecting the country’s capital, Lusaka, to Dar es Salaam, in Tanzania. [Engineering News 12/08/14]

Investor Incentives Through the Zambian Development Agency [ZDA], the State has developed a suite of incentives for foreign investors. The ZDA was established to serve as a single entry point of investment for the prospective capital holder, providing information on the country’s markets and company registration support, as well as assisting the company to find a local partner and a viable, investable project.

- Corporate tax rate of 0% for 5-years following the first profitable year of an investment >US$250 000. In years 6-8 only 50% of the investment’s profits would be taxed, while 75% of profits would be taxed in years 9/10 - 5-year exemption on dividend taxes following the year of first declaration and a five-year exemption on imported machinery and equipment - Unlimited repatriation of profits - No exchange controls which were abolished in 1994.

Zambia FACTS - World’s 7th-largest copper producer - Continent’s 5th-fastest growing economy - GDP growth of 6.6% in 2013 with anticipated growth of 7.8% for 2014 - Exports: Refined copper (44%), raw copper (29%), corn (5.5%), raw tobacco (4.9%), raw cotton (2.5%) - Imports: Delivery trucks (5.9%), excavation machinery (3.4%), large construction vehicles (3.0%), iron structures (2.3%), refined petroleum (2.2%) - Export destinations: China (48%), South Africa (10%), Zimbabwe (8.6%), South Korea (6.0%), Egypt (5.6%) - Import origins: South Africa (57%), China (14%), India (4.7%), United Kingdom (2.9%), Japan (2.8%)

12 EASTERN & SOUTHERN AFRICA CORRIDOR NEWS

Tanganyika Corridor To Benefit Zambia

Zambia stands to benefit from the development of the Lake Tanganyika Transport Corridor which will create a gateway to Burundi, Democratic Republic of Congo [DRC] and Tanzania. The African Development Bank [AfDB] is currently undertaking a feasibility study of the modernisation of Mpulungu Port on Lake Tanganyika. The Lake Tanganyika transport corridor project will link Zambia with the port town of Kigoma in Tanzania to Bujumbura in Burundi then to DRC’s lakeside city and port of Kalemie. Kigoma is the railhead for the railway from Dar es Salaam in Tanzania, Kalemie is the terminus for the DRC rail network while a rail link has been proposed for Mpulungu to connect to the rest of the country. The multi-billion dollar port development project will bring trade and regional integration between the countries which share Lake Tanganyika. The project is still under the feasibility study stage but hinted that progress is being and it is expected to kick off soon. [Daily Mail 30/07/14]

Mpulungu Zimbabwe Zim-EU Business Information Centre Opens

The Zimbabwe-European Business Information Centre [Zim-EBIC] was inaugurated in Harare on August 1st jointly by the Minister of Industry and ZimTrade Contacts Commerce, Mike Bimha, and the Head of the European Union Delegation in 904 Premium Close, Mount Pleasant Zimbabwe, Ambassador Aldo Dell’Ariccia. This follows the successful launch of Business Park P.O. Box 2738, Harare, the €3 million facility in February by the European Union to support the Trade and Zimbabwe Private Sector Development Programme [TPSDP] in Zimbabwe. Zim-EBIC will be Tel: +263 (4) 369 330-41 housed within ZimTrade, forming an integral part of the Trade Information Centre. Fax: +263 (4) 369244 The facility aims at increasing the capacity of Zimbabwean exporters to the EU Email: [email protected] [existing and potential]. The facility is part of a bigger project ZimTrade. Web: www.zimtrade.co.zw [Financial Gazette 25/07/14]

13 EASTERN & SOUTHERN AFRICA ONE STOP BORDER POSTS

Rwanda New ICD In Masaka

Government is to construct an inland clearing port in Masaka, Kicukiro district, in the city suburb of capital, Kigali to replace the current Gikondo-based Magasins Generaux de Rwanda [Magerwa] which private sector says is small considering the growing number of imports. The inland port will cover 70 ha. Currently the government is ascertaining compensation and the cost of developing it. The first phase of the project is expected to start in the next 6-months and last up to 2017, after which some of the Magerwa businesses will be able to move to the new facility. Rwanda’s imports continue to increase year on year, as companies invest more on capital, consumer, intermediary goods, energy and lubricants.

Total imports increased by 2.2% in 2013 to 2.25 billion U.S. dollars from 2.2 billion dollars in 2012, according to figures from Rwanda central bank. The concept of the Kigali Logistics Platform is to create an inland dry port that will accommodate all the logistics “ facilities with some of them being a huge container depot, Yard Park and warehouses to allow Rwandan traders conduct their businesses with ease. Trade ”and Industry Minister

14 EASTERN & SOUTHERN AFRICA ONE STOP BORDER POSTS

Burundi-Tanzania One Stop Post Now Open

The Burundi Revenue Authority [OBR] invited logistics firms, including customs agencies and freight forwarders to benefit from facilities of the new Kobero [Tanzania]-Kabanga [Burundi] One Stop Border Post [OSBP]. The facility opened at the end of June. The OSBP concept means all procedures for entry and exit are made in the same control area. All procedures for goods leaving Burundi and entering Tanzania will be performed on the side of the entrance to Kabanga in Tanzania. The same applies at Kobero for those leaving Tanzania and entering in Burundi. [EA Business Week 21/07/14]

15 EASTERN & SOUTHERN AFRICA ROAD

Tanzania Tazara Flyover To Start November

Construction of a flyover at the Tazara intersection in Dar es Salaam is set to take off between October and November after Japan extended additional support of 6bn/- to Tanzania bringing the total to 56bn/-. The additional support aims at addressing the shortfall in the budget caused by fluctuation of foreign exchange rates and increased price of materials. The signing of the contractor’s contract is expected to be held in September while construction work will start soon thereafter. The flyover will improve traffic for both commuters and cargo transportation, thereby reinforcing the function of Dar es Salaam Port. [Daily News 25/07/14]

Uganda Road Sector Support Project 3 [RSSP3]

The Government of Uganda has received financing from the African Development Fund [ADF] towards the cost of the Road Sector Support Project 3 [RSSP3] and is to allocate part of the loan to payments for consultancy services over 6 months managed by the Uganda National Roads Authority [UNRA]. [AfDB 31/07/14]

16 EASTERN & SOUTHERN AFRICA RAIL

Mozambique US$4.5 Billion Coal Rail-Port Project

A Thai-Mozambican consortium has set a 2018 target to commission a US$4.5 billion coal export railway and port terminal project in central Mozambique. Late last year, Mozambique’s government picked Bangkok-based contractor Italian-Thai Development Plc [ITD] to construct the 537 km rail line from the Moatize coal mines in Tete province to Macuse on the coast in Zambezia province. The project forms part of ambitious plans made by Mozambique with foreign investment partners to become a major exporter of metallurgical and thermal coal to the global market, based on estimated reserves of at least 2 billion tonnes.

ITD, one of the largest contractors in Southeast Asia, has formed a joint venture [JV] with Mozambique’s state railways CFM and private company Codiza to develop the Moatize-Macuse rail and port project, which needs to operate at an initial 25 million tonnes p.a. capacity to be economically viable. Mozambique is currently exporting around 5 million tonnes of coal, and is developing capacity to rapidly increase this. The project feasibility study, being carried out by ITD and the China Rail Construction Company, should be completed by the end of 2014 with construction taking 3-years.

The Moatize-Macuse rail-port project, which foresees deep-water container and general cargo facilities as well as a coal export terminal at the port, will need existing major coal miners operating in Tete to come onboard with shipments. ITD will approach these operators when the feasibility study provides a clearer picture of the economics of the project. Mozambique’s ports development plan sees a massive ramping up of tonnage handling capacity over the next 6 years to 2020.

Companies like Vale of Brazil and Rio Tinto have invested billions of dollars, helping Mozambique launch in 2011 as a coal producer and exporter. But a downturn in global prices has now raised serious questions about whether Mozambican coal can be competitive, given the huge costs involved in expanding the nation’s limited rail and port infrastructure to bring large quantities of new coal to the market. Vale is pressing ahead with its own US$4.5 billion project developing a 900 km rail corridor from its Moatize mine to Nacala port in northern Mozambique. The first coal train, which will cross Malawi, is expected to run by the end of 2014 to Nacala port. [Reuters 22/07/14] Major Overhaul For Beira Railway

Beira railway in central Mozambique is undergoing major improvement work to ensure better safety for cargo. The system comprises the Sena and Machipanda lines. The €163 million project overseen by the Sena Line Reconstruction Brigade [BRLS] is being carried out by the Portuguese Mota-Engil and Edvisa [Visabeira group] consortium. The aim is to up capacity from 6.5 million tons to 20 million tons per year by February next year.

Work will begin this month on feasibility studies for restoration of the branch from Sena to Vila Nova de Fronteira and thence Malawi, so the master plan can later be drawn up. A feasibility study and master plan for restoration of the Machipanda line are also being prepared. The respective contract, with a 9-month deadline, was signed last June. Ten cargo trains operate between Moatize and Beira every day, and one general cargo CFM train each week. The Machipanda line handles relatively little traffic, with an average of one train per day. A feasibility study for its restoration was being prepared. When these projects are completed the Machipando Line’s capacity will triple to 3 million tons per year. [Macauhub 13/08/14] Delivery Of Locomotives To Carry Coal From Tete To Nacala

Mozambican Corredor Logístico Integrado do Norte [CLIN] has announced the arrival of the first 10-locomotives from General Electric [GE] to carry coal from Moatize, in Tete province, to the port of Nacala [900 km]. This was the first delivery from an order of 80 locomotives by CLIN, which is the rail and port concession-holder for the Nacala Corridor, the main route for transporting coal from the Moatize coal basin.

CLIN is also investing another US$84 million on transmission towers, which will improve communication along the line. Each train used to carry coal between Tete and Nampula will be made up of 4-locomotives and 120 trucks. The first exports are expected to be made at the end of 2014. CLIN, which is a partnership between Mozambican state port and rail company Portos e Caminhos de Ferro de Moçambique [CFM] and Brazilian company Vale, expects to invest US$4.4 billion in the railway line and the deepwater port under construction in the Nacala-a-Velha district of Nampula province. [Macauhub 01/08/14]

17 Namibia / Botswana Trans-Kalahari Railway On Track

The tendering for the feasibility study for the construction of the 1,500km railway connecting Botswana’s Mmamabula coal field to the port of Walvis Bay is expected to start before the end of this year with construction over 3-years. The 2-governments are working on logistics and setting up the project management office that will spearhead the project but will not fund the exercise. A private sector developer is being sought. The line will unlock the value of coal mining in Botswana and power generation in the region. The railway line mirrors the existing Trans-Kalahari Highway or corridor, which links Botswana to Walvis Bay, but stretches 1,900km from Walvis Bay through Windhoek, Gaborone in Botswana and Johannesburg to Pretoria in South Africa. Construction of the project is expected to cost US$9.2 billion. Financing will be sourced through private stakeholders. [New Era 12/08/14]

18 EASTERN & SOUTHERN AFRICA RAIL

South Africa US Ex-Im Extends $US563 Million Transnet Guarantee

Freight operator Transnet has secured a R6bn [$US563m] guarantee from the USA’s export credit agency to support the financing of 293 diesel locomotives which GE is to supply, including an order for 233 announced in March. The US Export-Import [Ex-Im] Bank guarantee announced on August 6 would enable it to negotiate bank loans on favourable repayment terms. The facility will be drawn over a 3-year period in line with the delivery schedule for the locomotives. Tr

ansnet, which invested a record R31.8-billion last year, is planning to invest a further R33-billion in 2014/15. The guarantee was confirmed amid a robust debate in the US about the bank’s future and followed news that the 80-year-old institution provided a record $1.7-billion in financing support for US exports to sub-Saharan Africa over the past 10-months. The Transnet transaction came amid appeals from President Barack Obama’s administration, supported by a range of large US corporations, including GE, for the US Congress to reauthorise the bank, which provides credit to foreign buyers of US products. Ex-Im Bank would be forced to close if Congress did not renew its charter by 30th September 2014. [Creamer 06/08/14] Transnet Wagon Refurbishment Facility Officially Opened

Transnet’s wagon refurbishment facility in De Aar, which will maintain various types of wagons for Transnet Freight Rail [TFR] operations has been officially opened. A R30-million investment aims at increasing TFR’s capacity on the main corridor between Sentrarand and Cape Town, known as Capecor. The De Aar wagons depot will be run as a satellite workshop for the Transnet Rail Engineering Beaconsfield Depot in Kimberley and will have a production capacity of 250 wagons a year. [Engineering News 29/07/14] Transnet Appoints New Group Executives

Transnet has appointed 3-new group executives. Current Transnet National Ports Authority [TNPA] COO Herbert Msagala was appointed Transnet Capital Projects [TCP] group executive, to succeed current group executive Charl Möller who would retire at the end of August. Msagala would be succeeded as TNPA COO by current Transnet office of the group chief executive [GCE] GM Phyllis Difeto. Current Transnet monitoring and reporting GM Shulami Qalinge would succeed Difeto as office of the GCE GM. Meanwhile, Transnet also appointed current group financial planning GM Thabo Lebelo as Transnet property group executive. [Engineering News 15/08/14]

19 Transnet Freight Rail Signals Bold Plans For Growth

Transnet is hoping to attract R100-billion [US$9.3 billion] from private investors to help streamline the transport system and make it more efficient.

Transnet is investing R312-billion over the next seven years, much of it in rail. It’s also turning to the private sector to help develop efficient and cost-effective supply chains. Examples include funding a link to coal mines in the northern Waterberg region and the construction of a new dig-out port in Durban. Private companies could also install and operate rapid train-loading systems or use some of Transnet’s branch lines to run haulage businesses.

Transnet’s 7-year Market Demand Strategy [MDS] requires TFR to shift rail-friendly freight traffic from road to rail. The fluctuating international oil prices, high carbon intensity and high costs of truck travel were driving demand. Following years of under- investment TFR has been upgrading its rolling stock fleet and infrastructure network. It has substantially upped its capital investment since 2005, with a sharp eye on moving freight from road to rail. TFR aims to standardize units and plans to replace/ refit ageing stock with 1,400 new locomotives within the next 4-years. The plan includes new wagons which will have greater carrying capacity and improved braking systems.

Another important initiative is to replace branch lines, many of which had been abandoned in rural areas. TFR was hoping to attract private sector investment for some of these, identifying 20 branch lines, including in Prince Alfred Hamlet and the George to Knysna line. Other plans included upgrading the manganese line to the Port of Ngqura. Unlocking economic opportunities in North West province, as well as developing the Durban-Free State-Gauteng logistics and industrial corridor.

TFR handled around 150,000 TEUs in 2005. This had shot up to 1-million by this year, with 25.2% growth in 2013/2014 compared with the previous financial year. While conceding bottlenecks and delays in some areas, TFR is on an upward trajectory. [Creamer 07/08/14]

20 EASTERN & SOUTHERN AFRICA RAIL

Tanzania / Burundi Kigoma-Burundi Rail Construction To Start December

Construction of the 147 km rail track from Uvinza in Kigoma Region to Burundi at international standard gauge is expected to start this December. Preparations are now at final stage with the aim is to facilitate transportation of bulk nickel. Experts from 2-countries are jointly finalising the evaluation costs of construction of the rail track from Uvinza in Tanzania to Msongali in Burundi. Construction costs will be met by the 2-partner states. Construction will run concurrently with the 500 km track from Lusaka to Kigali in Rwanda.

Recently Tanzania Railway Limited [TRL] announced plans to revamp services along the Central Line and ordered 277 wagons from India, 13 engines from USA, and 22 passengers coaches from South Korea that will arrive in the country in September. TRL has been able to repair 5-engines. Implementation is part of the Big Results Now [BRN] programme where TRL plans to maximise the carriage capacity from 200,000 tons in 2012 to 3 million tons by 2015.

The World Bank approved US$300m for a rail project to be implemented by TRL involving the Dar es Salaam-Isaka section of the East African Central Corridor. It aims to ease congestion at Dar es Salaam port, facilitate the movement of goods to and from Tanzania to landlocked neighbouring countries and spur the local economy. Improvements will include strengthening the current metre gauge, reconstructing train bridges and upgrading railway infrastructure from Dar es Salaam to Isaka, from which Rwanda’s and Burundi’s railway start. [Guardian 30/07/14]

21 Tanzania TPA To Establish Block Trains For Transportation To DR Congo

The Tanzania Port Authority [TPA] plans to establish a city block train to facilitate fast carriage of goods from Dar es Salaam port directly to the Democratic Republic of Congo’s [DRC] dry port of Lubumbashi. The project is expected to commence April 2016. The project will also serve Burundi and Rwanda via the Isaka dry port. The move will reduce delays, congestion and the numbers of days from the time goods arrive at the port and reach the customers. It will also serve the city dry ports at Tabata and Ubungo Maziwa. [Guardian 29/07/14] TRL Gets New Wagons From India

The Tanzania Railways Limited [TRL] has acquired 25 Ballast Hopper Bogie [BHB] wagons worth 4.3bn/- from Hindustan Engineering and Industries in India for the central rail line. TRL will also acquire passenger wagons from CIM Company in France by December in line with the Big Results Now [BRN] programme focused on improving transport sector. TRL is expecting 34 Break Vans from Lucky Export Company in India and 13 locomotives from EMD Company from United States of America by January 2015. TRL plans to maximise the carriage capacity through renovating its central line railway tracks planning to transport 3 million tonnes of cargo by 2016 from 200,000 tonnes transported in 2012. [Daily News 25/07/14] Tanzania / Zambia TAZARA Operations Decentralised

Effective August 1st TAZARA operations were decentralised when powers were given to both Tanzania and Zambia. The agreement will be monitored over 6-months with a review thereafter. The decision was made during the 60th Council of Ministers for TAZARA meeting in Lusaka on July 4th. The TAZARA Council also approved the injection of US$80 million into the TAZARA budget for the year 2014/2015 for the purpose of recapitalisation and working capital of which US$9.2 million would be released immediately for clearing of workers’ salary arrears. [Zambia Times 23/07/14]

Zimbabwe US$460 Million Loan For Railway

Zimbabwe’s state-owned rail company has agreed to borrow US$460 million from the Development Bank of Southern Africa [DBSA] to develop its network that relies mainly on rolling stock acquired before independence in 1980. The loan will be signed by the end of the month according to the National Railways of Zimbabwe [NRZ]. The country’s railway require US$1.9 billion of investment after freight volumes declined by about 66% since 2000 to 3.6 million MT in 2013. Zimbabwe’s economy has stalled and is threatened by deflation after contracting by 40% in the 8-years following land reform programs. [Bloomberg 24/07/14]

22 WESTERN AFRICA CORRIDOR NEWS

Dakar-Mali Rail Option Reopens – Service Now Recommended

The Dakar-Mali rail situation has now improved. There is no longer any rail congestion with both road and rail options running smoothly.. TRANSRAIL also received 8-railway engines which are now fully operational. [Agent 24/07/14]

Destination Type Distance Kms Port Days Way Total TT Terms Dakar Bamako Road 1300 11 7 18 Free on truck - door Dakar Bamako Rail 1300 7 7 14 Free on rail - rail terminal Dakar Kayes Rail 750 10 4 14 Free on rail - rail terminal Dakar Kayes Road 750 8 6 14 Free on truck - door Tema-Ouagadougou Transport Corridor Update

Disparity in working hours between Ghana and Burkina Faso at the Paga-Dakola border has been identified as a key factor accounting for long clearance processing time, logistics costs, transit times, delays and uncertainty on the Tema-Ouagadougou transport corridor.

The Borderless Alliance, with financial support of the United States Agency for International Development [USAID], organized a joint technical bilateral meeting on June 3, 2014 to identify the most important bottlenecks to trade and transport at the border and thus guide transport infrastructure investments and procedural reforms. T

he Borderless Alliance met with the National Facilitation Committee [NFC] of Burkina Faso in Ouagadougou on June 6th to present the recommendations. As follow-up activities, the Alliance will plan another meeting with the National Facilitation Committee of Ghana. The Alliance will also write officially to the Ghana Revenue Authority [Customs Division], GCNet and Burkina Faso Customs to present a number of recommendations for their action. [Borderless 30/06/14]

23 WESTERN AFRICA ROAD

Côte d’Ivoire / Guinea / Liberia Road Facilitation - Mano River Union

Côte d’Ivoire, Guinea, Liberia and the African Development Bank [AfDB] will support the implementation of “The Mano River Union Transportation Facilitation Programme” concerning the tarring of highways between Danané-Lola, Harper-Tabou and Bloléquin-Toulépleu and the Liberian border. The roads link south-eastern Guinea and east Liberia to south-western Côte d’Ivoire as part of the Lagos-Abidjan-Dakar corridor, considered as the most important in West Africa to improve road infrastructure and promote intra-regional trade. [AfDB 12/08/14] DRC Development Tshikapa-Mbuji Mayi Road: Tshikapa-Kamuesha Section

The development of the Tshikapa-Mbuji Mayi road is priority as part of the rehabilitation of national road 1 [RN1] route. The project is divided into 3-segments: [i] Batshamba-Loange [114km], [ii] Loange - Lovua bridge; [iii] Lovua bridge - Tshikapa including the bridge over the river Kasai. The RN1 links the West to the East of the DRC. It connects Matadi, Lubumbashi and Katanga passing the cities of Kinshasa, Bandundu [Bandundu], Tshikapa, [Kasai Occidental] Kananga and Mbuji-Mayi [Kasai Oriental]. It also joins the RN2 serving the towns of Bukavu [South Kivu] and Goma [North Kivu]. It is the main axis of the country. The Province of Kasai Occidental alone has a population of more than 5.5 million people representing 9% of the population of the DRC. [AfDB 15/08/14] Gabon/Congo Libreville-Brazzaville Corridor Road Receives Funding

Gabon and the Republic of Congo have received funding from the African Development Bank [AfDB] to cover the cost of the project of route Nair-Dolisie and facilitation of transport on corridor Libreville-Brazzaville - phase 1. The EU/Africa Trust Fund administered by the Bank will finance the contract including the border bridge on the Ngongo River and the Single Border Check Point / Poste de Contrôle Unique Frontalier [PCUF]. [AfDB 05/08/14] Gabon Port-Gentil / Libreville Road

For years, Port-Gentil, the second-largest city in Gabon, has been in isolation. There is no road connecting it and Libreville, the capital, and the only way to reach it is by air or by sea. The city and its surrounding regions, with rich oil reserves, are also home to a large number of oil companies. Chinese China Road and Bridge Corp is building a road from Omboue, 93 km to the south and a second 270-km road from Omboue to link it with the national road network.

Construction of the Port-Gentil-Omboue project started in March and is expected to be complete in 5-years at a cost of US$600 million, with 95% of the funding coming from low-interest loans from the Export-Import Bank of China and the rest from the Gabonese government. The road will pass through vast swamplands, and 2-bridges of more than 5 km will need to be built - making them the third and fourth-longest bridges in Africa. So that shipping is not hampered, the number of piers holding the bridges will need to be limited. Another problem is the lack of building materials with the nearest quarry 300 km away, and since there is no road to transport stone the company has brought in 35 barges from China. [ECNS 04/08/14]

24 WESTERN AFRICA ROAD

Ghana Accra-Tema Motorway Project Underway

The Ministry of Roads and the Ghana Highway Authority in collaboration with the Ministry of Finance is to engage an advisor to provide a viable and bankable Public Private Partnership [PPP] structure for the Accra- Tema Motorway Project. The request for expression of interest is expected H2 2015.

The motorway forms part of the Trans West African Highway Corridor which links West African coastal cities starting from Dakar (Senegal) all the way to Lagos (Nigeria). This existing 19.3km toll road connects the town Tema, where Ghana’s main port is located, to the capital city of Accra, traffic volume on that stretch of road is usually very high. Currently daily vehicle volumes average 30,000-40,000 with 50% of heavy vehicular traffic associated with Tema Port activities. It is in the light of this that the parties intend to expand the existing dual–carriage to at least 4-lanes each way.

The capacity enhancement will have a multiplier effect including the efficient movement of goods and services from Tema Port. The private sector sponsor will also ensure the efficient operation and maintenance of the road, construction and operation of toll plazas and collection of revenues. [Government of Ghana 14/08/14]

25 WESTERN AFRICA RAIL

Angola China Railway Construction Completes Rebuilding Of Benguela Railroad

China Railway Construction has completed the project to rebuild Angola’s 1,344 km long Benguela railroad, which stretches from the Atlantic Ocean to the border of the Democratic Republic of Congo [DRC].

The line was the longest of Angola’s 3-major railways, besides being the fastest. It links the port city of Lobito to the border town of Luau, where it links to the rail network of DRC. The contract involved rebuilding 67 stations and will allow a maximum train speed of 90km/hr with capacity for 20 million tons of cargo per year.

The project cost the Angolan state US$1.83 billion. All the equipment was imported from China. [Macauhub 14/08/14] Financing To Facilitate Regional Railway Connection

US financing will facilitate the Angolan national railway rehabilitation and modernization programme under an agreement signed by the Angolan Finance Minister, Armando Manuel, and by the CEO of the US Exporting and Importing Bank, Fred Hochberg.. The agreement will allow the procurement of trains and carriages for ores, cargo in container and bulk. [Angola Press 05/08/14] Côte d’Ivoire / Burkina Faso Bollore, Pan-African Minerals Ink $895m Rail Link

French conglomerate Bollore and Pan-African Minerals signed a Memorandum of Understanding [MoU] on 31st July on a rail project worth US$895-million, linking Abidjan in Côte d’Ivoire to the Burkina Faso manganese deposit at Tambao.

The governments of Côte d’Ivoire and Burkina Faso also signed the agreement for the Abidjan-Kaya-Tambao railway, following a summit between both West African nations in the Burkina capital.

Pan African Minerals [PAM], controlled by Romanian billionaire Frank Timis, is developing the manganese mine at Tambao in the northeast of Burkina Faso. It plans to invest nearly US$1 billion and produce some 3 million tonnes a year. Tamboa, which will be the biggest manganese mine in the world, is a priority for Burkina Faso’s government as it seeks to diversify its economy away from a reliance on gold and cotton.

Bollore will invest US$535.60-million to rehabilitate the 1,250 km rail line between Côte d’Ivoire’s commercial capital and Kaya, a town north of Ouagadougou. The project will increase capacity and enable the shipment of the manganese and also 2-million tonnes of merchandise and about 2-million passengers. Pan-African Minerals will construct the 300 km Kaya–Tambao link over the next 3-years at a cost of 176-billion CFA francs [$359.32-million]. Work on the railway will start in August. [Reuters 01/08/14]