Development in The Republic of Togo Logistics Corridor The Project for Study onTogo MINISTRY OF PUBLIC WORKS AND TRANSPORTS (MPWT) REPUBLIC OF TOGO The Project for The Study on Togo Logistics Corridor Development in The Republic of Togo FINAL REPORT FINAL REPORT OCTOBER 2013 OCTOBER 2013 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) CENTRAL CONSULTANT INC. EI YACHIYO ENGINEERING CO., LTD. JR 13-218 Development in The Republic of Togo Logistics Corridor The Project for Study onTogo MINISTRY OF PUBLIC WORKS AND TRANSPORTS (MPWT) REPUBLIC OF TOGO The Project for The Study The Project onfor The Study Togo Logistics Corridoron Development Togo Logistics Corridorin Development The Republicin of Togo The Republic of Togo FINAL REPORT FINAL REPORT OCTOBER 2013 OCTOBER 2013 OCTOBER 2013 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) CENTRAL CONSULTANT INC. YACHIYO ENGINEERING CO., LTD. Exchange Rate EUR 1.00 = FCFA 655.957 = USD 1.30 = JPY 130.00 August 2013 PREFACE Japan International Cooperation Agency (JICA) decided to conduct the Project for the Study on Togo Logistics Corridor Development in the Republic of Togo and entrusted the study to Central Consultant Inc. and Yachiyo Engineering Co., Ltd. The team held discussions with officials of the Government of the Republic of Togo and conducted a master plan study and feasibility study on the development of the Togo Logistics Corridor from August 2012 to August 2013. After returning to Japan, the team conducted further studies and prepared this final report. I hope that this report will promote the project and enhance friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials concerned of the Government of the Republic of Togo for their tremendous cooperation with the study. October 2013 Kazunori MIURA Director General Economic Infrastructure Department Japan International Cooperation Agency LETTER OF TRANSMITTAL October 2013 Mr. Kazunori MIURA Director General Economic Infrastructure Department Japan International Cooperation Agency Dear Sir, We are pleased to submit herewith the final report on the Project for the Study on Togo Logistics Corridor Development in the Republic of Togo. This study was conducted by Central Consultant Inc. in association with Yachiyo Engineering Co. Ltd. between August 2012 and August 2013 in Togo. During the course of the study, we examined the present conditions of the transport network in Togo, prepared the Togo Logistics Corridor Development Plan and conducted feasibility studies of higher priority projects. These are the construction of a bypass on the steep gradient section and two bridges on the Katchamba–Sadori road, which are both on RN17 as an alternative to the RN1 route. We wish to take this opportunity to express our sincere gratitude to the officials concerned of the Japan International Cooperation Agency and the Embassy of Japan in the Republic of Côte d’Ivoire. We would also like to thank the officials concerned of the Ministry of Public Works and Transports and other relevant authorities in the Government of the Republic of Togo. We hope this study will assist the development of the Togo Logistics Corridor in the Republic of Togo. Yours faithfully, Hikaru NISHIMURA Team Leader Project for the Study on Togo Logistics Corridor Development in the Republic of Togo The Project for the Study on Togo Logistics Corridor Development Final Report Abstract ABSTRACT 1. Outline of the Study The Togo Logistics Corridor (TLC) has significant potential for the economic and social development of Togo and the region. The 667-km corridor, stretching from Lomé Port, a gateway to Togo, to the one stop border post (OSBP) at Cinkassé, to the border with Burkina Faso, includes roads, bridges, and railway, and is a mainstay of the country. The objectives of the study are: 1) to prepare the TLC Development Master Plan with a target year of 2030, 2) to carry out the Feasibility Study (F/S) for the selected priority project in order to confirm the viability of the projects, 3) to share the results of the Study with development partners, and 4) to develop the capacity of personnel in the Ministry of Transport (MT) and the Ministry of Public Works (MPW) of the Government of Togo (GoT). 2. Major Findings and Problems of the Transport Sector in Togo The major findings and problems of the transport sectors are as follows: • A number of challenges confront the road sub-sector: 1) inadequate funds for investment and maintenance, 2) the non-control of axle loads, 3) inadequate attention to road safety, and 4) the lack of viable alternative routes to the main north-south corridor. • There are many problems concerning the railway development policy, regulations, facilities, train operation and maintenance. • The major problems of the port and maritime sub-sector are: 1) shortage of capacity of the mineral quay, 2) insufficient capacity of on-land facilities, and 3) traffic congestion at Sahel Terminal. • The major issues of transit transport on the TLC are: 1) the low level of maintenance at Lomé Port and deteriorated condition on RN1, 2) aged freight vehicles, and overloaded and oversized vehicles, 3) complicated and inefficient customs clearance processes, customs clearance document forms that are not interchangeable between Togo and Burkina Faso, and 4) requests for bribes at the port, border and checkpoints. 3. TLC Development Plan and Programme The TLC Development Plan provides a comprehensive plan for the development of transport infrastructure including both hardware and software in order to achieve general economic growth. One aim is to cope with increasing traffic demand in the future, and another is to support development potential in developing local areas. Based on the concepts for development of the TLC as well as directions to achieve the targets of the TLC development, various alternatives are prepared for the evaluation. These alternatives mainly consist of improvement of roads and rehabilitation/construction of the railway. Based on the overview for the development of the TLC, alternative transport networks for - 1 - The Project for the Study on Togo Logistics Corridor Development Final Report Abstract evaluation, including traffic assignment and the essential factors of the network, are proposed. The Economic Internal Rate of Return (EIRR) of respective projects suggested in the TLC Development Plan and those projects with an EIRR of more than 12% are considered to be economically feasible. Based on the results of evaluating each item of the alternative transport networks, the alternative of “Combination of Intermodal and Multi Modal Development Plus Alternative Road Network” is selected as the most desirable transport network for the development of the TLC, and the projects included in this alternative are selected for the development of the TLC by 2030. 4. Results of Feasibility Studies The Study Team selected two projects for the feasibility study: 1) construction of a bypass at the steep gradient section between Bouzalo and Binako (Malfakassa Bypass), and 2) construction of two bridges across the Kara and Koumongou Rivers on RN17, after consultations with the Steering Committee and JICA. The Study Team conducted natural condition surveys, preliminary design, preliminary cost estimation, environmental and social study, and analyses of the feasibility of these two projects in terms of technical, economic, regional development, environmental, and social considerations. • From the results of the economic analysis, construction of the Malfakassa Bypass project is recommended for implementation, together with upgrading of the Katchamba–Sadori road. • Construction of the two bridges across the Kara and Koumongou Rivers is also recommended for implementation, together with upgrading of the Katchamba–Sadori road regardless of construction of the Malfakassa Bypass. • As a result of overall evaluation, both projects are considered feasible for implementation at an early stage. 5. Recommendations (1) Recommendations in the Master Plan • The newly established Ministry of Public Works and Transports (MPWT) can inform the outcomes of the Study to development partners for possible assistance with project implementation, and coordinate with them for effective and efficient cooperation on the projects proposed in the TLC development programme. • The GoT should start implementing controls on axle load and oversized vehicles, together with legal initiatives. • The GoT should review the contents of the Master Plan in 2018. • The GoT should prepare a F/S for construction of a new railway line between Lomé and the border of Burkina Faso by standard gauge as a long-term plan. • The GoT should prepare a F/S for the expansion of the mineral berth at Lomé Port. • The MPWT needs to secure sufficient budget for the operation and maintenance of the roads. • The MPWT needs to strengthen its organisation and develop the capacity of personnel. - 2 - The Project for the Study on Togo Logistics Corridor Development Final Report Abstract • The GoT should legislate the Railway Business Act. • In order to strengthen the competitiveness of the TLC and to attract transit cargo, it is essential to shorten the transport time on the TLC and to reduce costs by efficiently operating OSBP, reducing check points, improving roads, enhancing port security, and improving the custom clearance procedures at Lomé Port. • As other corridors are also making efforts to attract transit cargo, it is important to make the TLC more competitive than the other corridors. (2) Recommendations in the F/S • The DGPW should carry out the environmental impact assessment to start land acquisition to secure the right-of-way. - 3 - SUMMARY The Project for the Study on Togo Logistics Corridor Development Final Report Summary SUMMARY 1. Introduction The TLC has significant potential for the economic and social development of Togo and the region. The 667 km corridor, stretching from Lomé Port, an entrance to Togo to the OSBP at Cinkassé, to the border with Burkina Faso, includes roads, bridges, and railway, and is mainstay of the country. The objectives of the study are as follows: • To prepare the TLC Development Master Plan with a target year of 2030.