A New Inland Offer For Angolan ImportsFull Story On Page 7

AFRICACTBL-WATCH

Kenya Port Deal To Cut Import Costs

ISSUE 7 | JULY 2014

Deal Sealed On BeitBridge Tolling

Transnet’s Freight Trains Pick Up Speed

09 14 16

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AFRICACTBL-WATCH

ISSUE 7 | JULY 2014

Contents03 /Corridor Review

05 /Group News

09 /Eastern & Southern Africa

19 /Western Africa

A New Inland Offer For Angolan Imports 07

Kenya Port Deal To Cut Import Costs 09

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16

Deal Sealed On BeitBridge Tolling

Transnet’s Freight Trains Pick Up Speed

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Website: www.delmas.comEmail: lhv.marketing@delmas.netTweet: @DelmasWeDeliver

CMA CGM Marseille Head Offi ce4, Quai d’Arenc 13235 Marseille cedex 02 France

Tel : +33 (0)4 88 91 90 00

www.cmacgm.com

Disclaimer of LiabilityCMA CGM / DELMAS make every effort to provide and maintain usable,

and timely information in this report. No responsibility is accepted for

the accuracy, completeness, or relevance to the user’s purpose, of

the information. Accordingly Delmas denies any liability for any direct,

indirect or consequential loss or damage suffered by any person as a

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.

The African Inland Freight ReportBrought to you by CMA CGM / DELMAS Marketing

Rachel Bennett Dominic Rawle

p

p

o

any liability for any direct

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 to Zambia, Rwanda are in good condition.A new opened corridor to Uganda via Mutukula is running well.Due to heavy rains over the last 2-months a vital bridge has broken impacting inland transport to Bujumbura [Burundi]. Trucks are now forced to use another route adding an additional 200-km equating to 1-2 days additional transit.

3 ● Tanzania-Copper Belt Roads through Mbeya offer a good alternative to the train to Ndola.The service into DRC has been affected by social problems at the border. The border post between Zambia and DRC has been closed for a few days. However traffic is back to normal but with delays expected from backlog. The situation could degenerate at any time. 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.

4 ● Mozambique Nacala Corridor Currently suspended but the service to due re-open in July on a trial basis. The Group is currently finalizing an agreement to guarantee volumes on weekly basis by rail.

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

roadAll rates for South African final destination will be filled in Rand from now on.New trucking service to South Africa destination [banded by distance/radius].New destinations available eg Livingstone [Zambia], Selebi Phikwe [Botswana].

8 ● Namibia Walvis Bay The transport corridor from Walvis-Bay to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well.

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CORRIDOR REVIEW CTBL AFRICA

Western Africa

Corridor Current Situation

1 ● Senegal-Mali Good transit times at present.

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.

6 ● Togo-Burkina/Niger Service is running well.

7 ● Benin-Burkina/Niger Operating well.

8 ● Cameroon-Chad Due to train availability we recommend the all-road option on this corridor. Political security is still not 100% on this corridor.

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 in July 2014.

12 ● DRC Corridor Matadi-Kinshasa service running well with transits of 9 days.

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Opening Of CMA CGM ChadTo cover the market in Chad, the CMA CGM Group has opened a new Group Agency in N’Djamena. CMA CGM TCHAD will represent both DELMAS and CMA CGM replacing former third party agent BAL Tchad. Mr Cheikh Mouhamadou Khaly BA [ndj.cmkba@african-agency.com] has been appointed as Branch Manager and Oumi ILLIASSOU [ndj.oilliassou@african-agency.com] as Commercial Manager. The creation of this new agency responds to the development of the Group in West Africa, and in particular upgrades in services calling at Douala, Cameroon.

CMA CGM TCHADAvenue Charles De Gaulle,Quartier Commercial Ilot 4, lot 2,BP 5800 N’DJAMENA, Chad,Tel: (235) 22 52 27 60

Chad’s economy, which grew an estimated 3.4% in 2013, is expected to surge 11.2% in 2014, as new oilfields begin production and the outlook for harvests is good.

Exports $4.144 billion (2012 est.) / $4.306 billion (2011 est.)

Export commodities Oil, cattle, cotton, gum arabic

Export partners US 82.5%, China 6.7% (2012)

Imports $2.761 billion (2012 est.) / $2.696 billion (2011 est.)

Import commodities Machinery and transportation equipment, industrial goods, foodstuffs, textiles

Import partners China 19.8%, Cameroon 19.7%, France 15.8%, Saudi Arabia 5.4%, US 4.1% (2012)

Chad CTBL Corridor

Port of Discharge

Destination Country

Final Destination

Transport Kms Port Days Way Total TTto FPD

Terms

DOUALA CHAD ALL ROAD 1400 20 15 35Free on truck

- door

DOUALA CHAD MOUNDOU RAIL + ROAD 1400 20 15 35Free on truck

- door

DOUALA CHAD NDJAMENA RAIL + ROAD 1700 20 17 37Free on truck - road terminal

DOUALA CHAD SAHR RAIL + ROAD 1600 20 18 38Free on truck

– door

Access Port Services CMA CGM / DELMAS have a dedicated feeder serving Douala:

Rotation: Cotonou - Douala - Cotonou dedicated to cargo from/to Europe, USA/Canada East Coast/ South Atlantic / Gulf, Indian Subcontinent and Middle East

As well as a weekly containerised service dedicated to the Central range of West Africa [PC Center], we also have a specialist weekly RoRo service to Douala [RoRo Med]. The latter is dedicated to transport rolling stocks, hazardous cargo, breakbulk, project cargo, heavy lifts, oversized cargo.

Furthermore the WAX service calls at Douala offering links to Asia specifically complete coverage of the main export areas in China including 2-direct ports calls in North China Xingang/Tianjin and Qingdao as well as Japan, Korea and South East Asia served on T/S via Port Kelang.

Branch Msnager Cheikh Mouhamadou Khaly and Commercial Manager Oummi Illiassou

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AFRICAN GROUP NEWSCMA CGM / DELMAS

DOUALA FEEDERService Rotation: Cotonou - Douala - Cotonouhttp://www.delmas.com/products-services/line-services/flyer/

DOUALAFD

RORO MEDService Rotation: Valencia - Livorno - Sete - Marseille - Dakar - Abidjan - Lome - Cotonou - Malabo - Bata - Douala - Valenciahttp://www.delmas.com/products-services/line-services/flyer/

MARDEL

PC CENTREService Rotation: Tanger Med - Dakar - Tema - Cotonou - Douala - Tanger Medhttp://www.delmas.com/products-services/line-services/flyer/

PCCENTRE

WAXService Rotation: Shanghai - Ningbo - Chiwan - Nansha - Tanjung Pelepas - Port Kelang - Cape Town - Tincan Lagos - Douala - Abidjan - Pointe Noire - Colombo - Port Kelang - Shanghai http://www.delmas.com/products-services/line-services/flyer/WAX

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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:

A New Inland Offer For Angolan ImportsThe CMA CGM Group have launched the first train – with forty full containers of various types, including reefers – between the Unicargas Terminal of Luanda, calling point for the Angola Shuttle services, and the dry port Multiparques, located in the industrial zone of Viana, 25 km away. This logistics offer follows a partnership agreement finalized more than a year ago, with the off-dock CY “Multiparques”.

This new service will allow us to bring imports to the Viana industrial zone, where many customers are located. From September this year it will allow us to offer customers a more diverse logistics supply chain, optimize their costs and improve their import processes.

Mathieu Friedberg, Vice President Africa Lines

“”

ANGOLA SHUTTLEService Rotation: Lisbon - Leixoes - Tanger Med - Luanda - Lobito - Namibe - San Pedro - Lisbon

- Dedicated service to Portugal, Angola and Cote d’Ivoire

- Direct service to Luanda, Lobito and Namibe - Other European ports served in transhipment

via Tangier Med - Transhipment reliability via our hub

For more information please see our website: http://www.delmas.com/products-services/line-services/flyer/AOSDEL

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AFRICAN GROUP NEWSCMA CGM / DELMAS

Corridor Improvement: The FutureMultilateral Support CMA CGM / DELMAS has extensive experience of on-carriage throughout Africa. We aim at being the reference in the market for CTBL traffics to and from East, West and Southern Africa. We closely monitor the trade to optimise routings, tariffs and quality of service. And by controlling every link in the transport chain and tracking every consignment, we ensure your cargo is delivered safely and securely.

Looking to the future overall service levels can only be improved within landlocked corridors. With new found political motivation, donor funding and multilateral stakeholder interest barriers to trade are gradually being eliminated. For example in East Africa Rwanda, Uganda and Kenya recently launched a single customs territory and the Kenyan government reduced the number of road check points from 56 to 15 to unlock the central transport corridor. Meanwhile the Tanzanian government is planning to reduce the number of weighbridges from the current 9 to only 3 on the 1,267 km Dar es Salaam-Rusumo route from coastal Tanzania to the Rwandan border.

And in West Africa the Borderless Alliance – a multilateral partnership of private and public sector stakeholders – are working to increase trade and eliminate barriers in the region. The Borderless Alliance with support from the USAID West Africa Trade Hub tracks barriers to trade and disseminates data and hold multilateral discussions to highlight cumbersome procedures, excessive documentation, controls and bribes.

Further advancements include USAID/Borderless backed new Border Information Center’s [BIC] such as those opened at Seme, Nigeria [Benin-Nigeria border] and in Noe and Elubo [Côte d’Ivoire-Ghana border] to name a few. These units help ease and promote the speedy flow of transit traffic into the African hinterland. And with the introduction of One Stop Border Post [OSBP] such as in Uganda which has signed a MoU with Trade Mark East Africa [TMEA] for the construction of four One Stop Border Posts [OSBPs] at Busia [Uganda/Kenya], Mutukula [Uganda/Tanzania], Mirama Hills [Uganda/Rwanda] and Elegu [Uganda/ South Sudan] under the East Africa Trade and Transport Facilitation Project [EATTFP] we expect to offer further service and transit improvements along such routes.

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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:

KenyaPort Deal To Cut Import CostsImporters and businesses in the Northern Corridor can soon expect a more timely and efficient service at Mombasa Port, following the signing of the Mombasa Port Community Charter by Kenya and the regional public and private agencies involved in port affairs. Mombasa is the gateway to Rwanda, Burundi, Uganda and other countries along the Northern Corridor; the charter is expected to improve efficiency and boost trade across East Africa. The charter will aid in the establishment of logistical and transport infrastructure, improve operational efficiency and facilitate regulation and oversight engagement. Operational efficiency will be improved with the actualisation of paperless trading through the single window system.

[New Times 04/07/14]

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EASTERN & SOUTHERN AFRICACORRIDOR NEWS

NamibiaBotswana Dry Port Operational From JulyThe Botswana dry port in Walvis Bay is expected to be operational from July. Costing N$60 million to build, the dry port intends to consolidate maritime goods into intermodal and long distance transport flows in order to reduce costs, strengthen multi-modal solutions and create opportunities for new services.

[The Namibian 30/06/14]

Zimbabwe Seeks Partner For Walvis Bay Venture Zimbabwe’s government are considering partnering the private sector in the construction of its Walvis Bay Dry Port facility under a public private partnership arrangement. Road Motor Services – a subsidiary of the National Railways of Zimbabwe – is currently spearheading the construction of the port in partnership with Walvis Bay Corridor Group and the Namibian Port Authority.

In 2009 the Namibian government granted Zimbabwe 19,000 square metres of land to construct its own dry port in order to boost the country’s trade, but due to financial constrains the project failed to take off. The project was allocated Z$1 million in the 2014 budget, but to date no funding has been released from treasury. Construction of civil works at the site has begun, but another Z$3.5 million is required to complete the work.

[The Herald 09/07/14]

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EASTERN & SOUTHERN AFRICADRY PORTS

Tanzania / Zambia Tunduma Set To Become One Stop Border PostTanzanian Authorities in conjunction with Zambia is to start a one stop border post [OSBP] at Tunduma. The Tanzania Revenue Authority (TRA) has started around the clock operations to fast track movement of goods and reduce congestion. [An average of 2.877bn/- is collected as revenue from the border per month.]

[Daily News 26/06/14]

Tanzania Tanzania-Burundi Border Post Harmonisation To Ease CongestionUnder a pilot scheme the Kabanga-Tanzania and Kobero-Burundi border posts between Tanzania and Burundi will become One Stop Border Posts (OSBP). Under the OSBP, services will be harmonised and traffic jointly cleared by officers from both countries on one side of the border, easing the flow of traffic through the posts.

One of the challenges facing regional traders is the issue of delays at border posts because government agencies work autonomously. This measure is intended to address these trade barriers, as required by the East African Community (EAC) treaty. s the EAC member states are heading towards a political federation and use of one currency, having one stop border posts to facilitating fast border movement and transactions is a vital step towards attainment of the its goal.

[Tanzania Daily News 05/07/14]

Tunduma

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EASTERN & SOUTHERN AFRICAONE STOP BORDER POSTS

KenyaAfDB To Fund Road UpgradeThe African Development Bank (AfDB) has agreed to pay for the upgrade of a busy regional road. AfDB is giving $223.5 million for the project.

The road runs from Taveta to Voi in Kenya and is being rehabilitated to create another major transport corridor in the region, linking Mombasa Port with northern Tanzania and landlocked countries in the region. The road an extension of the Arusha-Namanga-Athi-River Highway, and the construction will help to spur economic growth in Tanzania and Kenya.

Tanzania intends to apply a portion of these funds to cover eligible payments under the Works Contract for the Construction of the Sakina-Tengeru Road to Dual Carriageway (14.1kms) and the Arusha Bypass Road (42.4kms). The Tanzania National Roads Agency (TANROADS), on behalf of the Ministry of Works, will supervise the construction and upgrading of the Sakina -Tengeru Road to dual carriageway status.

The civil works for the four-lane Arusha by-pass highway are expected to start with the rehabilitation of the Arusha-Usa River Road, which is to start from the Sakina area in Arusha’s CBD. The road will be expanded to a four lane up to Tengeru, some 20kms away from the Arusha city, and later cover 56.6 kilometres up to the Kilimanjaro International Airport (KIA) road junction.

The road project is part of the 240km long regional project linking Arusha in Tanzania and Voi in Kenya. Upgrading of the 85km along via-Holili section in Kenya is already underway.

[East African Business Week 06/07/14]

MozambiqueFive Roads To Shift To Private ManagementFive sections of roads in will shift to private management before the end of the year with the aim of maintaining road circulation and safety conditions. Matola/Boane, Marracuene/Lindela, Vanduzi/Changara, Nampula/Nacala and Monapo/Ilha de Moçambique were determined to have potential to operate under the toll road arrangement. Only two toll roads currently operate in Mozambique; one in Maputo province managed by South Africa’s Trans African Concessions (TRAC) and one in Tete with Estradas do Zambeze.

[Macauhub 30/06/14]

China Exim Bank Funds Road RepairsChina Exim Bank and the Mozambican government plan to provide US$410 million for work to repair National Road 6 (EN6), which is 288 kilometres long and links the port of Beira to Machipanda, on the border with Zimbabwe. The work is expected to be finished in 2017 and will be carried out in four stages, the first of which will be a section of 218.9 kilometres, the second of 13 kilometres, the third 47 kilometres and the fourth and final stage of 8 kilometres. The project includes building a 250-metre bridge over the Púnguè River and repairs on 1,652 metres of bridges at several points along the route of the road.

[Macauhub 14/07/14]

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EASTERN & SOUTHERN AFRICAROAD

South Africa / Botswana Upgrade Border Posts And Bridges Planned

South Africa and Botswana have signed a memorandum of agreement that will see the two countries improving cooperation to promote increased cross-border trade, economic growth and regional integration. Key to the agreement is a programme the upgrade bridges and border posts connecting the two countries, starting with the reconstruction of the Rammotswa Bridge, which crosses the Notwane River where it borders South Africa and Botswana. Preliminary designs for the new bridge had been completed, and South Africa has already committed R20-million to the project.

Reconstruction of the Rammotswa Bridge will pave the way for the upgrade of the Swartkopfontein border post, which currently has to close for long periods over the rainy season. Swartkopfontein offers a potentially convenient commercial route between Zeerust in South Africa and Gaborone, Lobatse and Ramotswa in Botswana. The border post is ideally positioned between the commercial border posts of Kopfontein and Ramatlabama, and will relieve the pressure of traffic on these border posts once it becomes usable on a regular basis.

[South Africa Info 08/07/14]

ZambiaWorld Bank Starts Auditing Roads In Eastern Province Under the Good Governance Road Project (GGRP), the World Bank has started auditing and monitoring the construction of the Link Zambia 8000 projects in Eastern Province. The bank has injected K246,000 in the project, which started in January this year and expected to end next month. The GGRP is being implemented through Eastern Province National Association for Medium and Small Scale contractors (NAMSSC) and is working in collaboration with the Road Development Agency, provincial administration and other stakeholders. The auditing and monitoring is intended to prevent avoid corruption and shoddy works. The road watch monitors involved in the project have been drawn from the local community and have been trained in basic road auditing and monitoring skills.

[Daily Mail 03/07/14]

Ndola-Kitwe Road Works Advance Maintenance on the Ndola-Kitwe dual carriageway is 60% complete. Works on the 60 km road, part of the Link Zambia 8000 project, are scheduled to be completed on August 28th by contractor China Jiangxi. The works are costing Government about K298 million. Meanwhile the upgrading of the Chingola-Kitwe dual carriageway is expected to cost K575 million. Sino-hydro Zambia has been contracted to be completed by March 2015.

[The Times 18/06/14]

Raubex Secures Second Road Upgrade ContractRaubex is to upgrade 117 km of the Mpika-Nabwalya-Mfuwe road, in north-eastern Muchinga, in Zambia, after securing the ZK540-million [R940-million] 30-month contract. Mobilisation for the contract, which forms part of the Zambian Road Development Agency’s Zambia Link 8000 project, will kick off in July. This latest contract comes a month after Raubex was awarded a ZK265-million (R460-million) contract to upgrade 94 km of the Safwa to Chinsali road. The Link Zambia 8000 project, launched in 2012, is a 5-year, US$5-6-billion initiative aimed at upgrading 8,000 km of road network, linking provinces nationwide.

[Engineering News 23/06/14]

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EASTERN & SOUTHERN AFRICAROAD

ZimbabweDeal Sealed On BeitBridge TollingSouth Africa and Zimbabwe are to split revenue from traffic through the Limpopo Bridge, whose administration was handed over to the Zimbabwean government on 16th June. The handover followed the expiry of the 20-year long build, operate and transfer agreement signed with New Limpopo Bridge, the company that built the bridge in 1994. Traffic coming into Zimbabwe will pay fees to the Zimbabwe National Road Administration (Zinara). It remains unclear which agency will handle South Africa’s revenue collection.

The cash-strapped Zimbabwean government is set to pocket US$1.6m monthly through toll fees - significant inflows that the country’s Transport and Infrastructure Development Minister Obert Mpofu said would have “an impact” on the state’s tight revenue. Zimbabwe has already reduced toll fees charged on all types of vehicles by about 30%.

South Africa was still working on a framework and regulatory body that would be in charge of revenue collection on its side of the border. However South Africa’s transport ministry were unhappy with the “low fees” Zimbabwe charged. At the rate that Zimbabwe was progressing, it would never be able to build new roads. Zinara collected about $40m from toll fees nationwide each month. This is not enough for constructing even 30km of road according to Mpofu.

[Business Day 18/06/14]

Gwanda – BeitBridge RoadThe COMESA-EAC-SADC Tripartite has received financing from the African Development Bank [AfDB] hosted NEPAD Infrastructure Project Preparation Facility (IPPF) toward the cost of the North South Corridor. Funds will cover the preparation of feasibility studies, detailed engineering design and tender documents for the rehabilitation of roads in Botswana, Malawi and Zimbabwe. Part of the agreed amount is to cover the rehabilitation of 200 km Gwanda – BeitBridge road section in Zimbabwe.

[AfDB 25/06/14]

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Botswana/Namibia Trans Kalahari Railway Project Moves AheadThe Botswana and Namibian governments are in the process of establishing an office to coordinate the jointly-run Trans Kalahari Railway project. The office will be established in Windhoek, Namibia, with personnel would be drawn from both countries. After establishing the office, a feasibility study to determine funding requirements for the railway project will begin.

The 1,500-km heavy-haul line is expected to link Botswana’s coalfields with the existing railhead at Gobabis in Namibia. The railway would expand freight capacity on congested transport corridors within the Southern African Development Community and is expected to provide greater access to global markets for other landlocked countries in the region like Malawi, Zambia and Zimbabwe.

[APA 08/07/14]

Mozambique/Zimbabwe Machipanda Railway To Be RebuiltThe Machipanda Railroad, which links the Mozambican port of Beira to Machipanda station, may undergo reconstruction along its entire 317-km length this year. According to the Sena Railroad a consultant is being chosen to carry out feasibility studies and involves state port and rail company Portos e Caminhos de Ferro de Moçambique (CFM) and the Mozambique Regional Gateway Programme, a Mozambique-based programme linked to increasing international traffic in Southern Africa. CFM has so far spent US$10 million to stabilise the line, and to re-open crossings and stations. Derailment issues have been reduced as sharp bends in the line have been removed and faulty rails and sleepers replaced. The Machipanda Railroad, which is located near the border with Zimbabwe, is the only freight line to and from Zimbabwe and Zambia.

[Macauhub 18/06/14]

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EASTERN & SOUTHERN AFRICARAIL

South AfricaTransnet’s Freight Trains Pick Up SpeedTransnet is starting to make gains from its rail freight unit as it recorded an increase in volumes of minerals, containers and vehicles transported by rail. For the year to March Transnet grew its revenue by 12.8 percent to R56.6 billion. The revenue growth was driven by a 14.2 percent increase in mineral and chrome volumes, in addition to a 25.2 percent rise in automotive volumes and containers moved by rail.

Transnet Freight Rail contributed about 50 percent to the group’s total revenue. Rail has been the main focus of the company’s seven-year capital investment programme. Transnet had previously said 65 percent of the R300bn-plus capital investment programme would be spent on beefing up rail capacity.

However, the group said rail volumes for its heavy haul lines dedicated to coal and iron ore declined marginally year on year. The export coal line was hampered by a number of factors, including a 33-day strike by workers belonging to a breakaway union, a municipal power supply disruption at the Richards Bay coal terminal and a longer-than-anticipated annual maintenance shutdown. The coal line transported 83.1 million tons, down from 84.3 million tons last year.

Port container volumes increased by 6.3 percent, while petroleum pipeline volumes were up 4.4 percent. Operating costs saw an overall increase of 13.1 percent to R33bn, with energy costs rising by 10.3 percent, driven by higher electricity and fuel prices.

[Business Report 01/07/14]

TFR Sees Swazi Link, Shongololo Coal Export Capacity RisingTransnet Freight Rail (TFR)’s feasibility study into a proposed rail link through Swaziland – which would eliminate non-coal traffic on the export channel from the Mpumalanga coalfields to Richards Bay – is at an advanced stage. The new link, together with the introduction of new operating solutions, has the potential to raise the coal-export corridor’s capacity to 120-million tons.

During the 2013/14 financial year, export-coal volumes declined by 1% to 68.2-million tons, from 69.2-million tons in the previous year. The fall was attributed to a decline in coal prices, a nine-day power disruption at the Richards Bay Coal Terminal (RBCT) and industrial action. However, TFR and coal exporters have also been in ongoing discussions about raising the capacity of the export channel, which the miners see as the main constraint to increased export volumes.

Transnet’s R307.5-billion Market Demand Strategy anticipated raising yearly coal export capacity to 98-million tons by 2019. However, the combination of the Swaziland link with its 200-wagon ‘Project Shongololo’ operation solution has the potential to increase capacity even further. The Swaziland connection would allow TFR to remove the 12 general-freight trains currently operating on the corridor daily, enabling it to operate the coal line exclusively on heavy-haul principles.

[Mining Weekly 30/06/14]

Transnet Initiates Waterberg Rail StudiesTransnet has issued tenders opening the way for formal investigations into the rail requirements to link the coal-rich Waterberg region with domestic and export coal markets. Transnet Capital Projects is seeking consultants to conduct a prefeasibility study into the Waterberg infrastructure and feasibility studies into rail infrastructure linking the coal-mining town of Lephalale, in Limpopo, with Ermelo, in Mpumalanga, which is a key coal-logistics junction.

The studies form part of a plan to connect the Waterberg coalfields, as well as those in Botswana, with export terminals in KwaZulu-Natal, as well as with State-owned power utility Eskom’s power stations, which are looking to shore up additional resources as some of its tied collieries reach maturity.

[Mining Weekly 15/07/14]

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TanzaniaTanzania Lays Out New Central Railway PlansThe government has laid out a strategic plan to build a new railway line from Dar es Salaam to Mwanza, linking central regions up to Burundi via Isaka. Inauguration of construction is expected to be sometimes in December this year, with the project to cost US$7 billion and last for four years.

[Guardian 12/07/14]

UgandaRift Valley Railways Raises Final US$69 Million

Rift Valley Railways (RVR), the concessionaire for the Uganda and Kenya line, has completed the final funding acquisition as parts of its US$164 million five-year turnaround programme with the acquisition of $69.6 million raised through leading global and East African financiers. The debt facility was part of the US$287 million capital financing package that was provided in the form of a series of loans.

RVR plans to use the money to increase its haulage capacity by rehabilitating the rail infrastructure from Mombasa to Kampala. The regional rail operator’s total spending this year will exceed US$100 million, some of which will be used to add 1,400 wagons to the existing fleet. RVR is on track to meet the railway line maintenance standards and has acquired modern track maintenance technology that will automate and speed up the process.

[East African Business Week 13/07/14]

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EASTERN & SOUTHERN AFRICARAIL

ZambiaTazara’s US$80 Million BoostThe governments of Tanzania and Zambia, which are the two shareholders of the Tanzania-Zambia Railway Authority (TAZARA), have agreed to inject US$80 million into the operations of the railway firm in the next 12 months. Of this amount, US$9.20 million will be disbursed immediately to cater for two months outstanding employees’ salary arrears and working capital.

The injection of funds into the railway line follows months of low productivity and operational disruptions due to various factors including frequent breakdowns, accidents, unstable labour atmosphere and lack of working capital to pay salaries and procure fuels and lubricants for the trains, all resulting in recurrent work stoppages.

ZimbabweNational Railways of Zimbabwe Needs US$10 BillionThe National Railways of Zimbabwe (NRZ) requires US$10 billion to recapitalise in line with global trends. Some US$144 million of the cash - if found - would go towards settling obligations to service providers and workers who have gone for almost a year without pay.

Dilapidated infrastructure, undercapitalisation and competition from road transport had led to the transport operator’s demise. Most of the infrastructure that NRZ owns is at least 50 years old. NRZ is currently operating at a loss of US$4 million on a monthly basis, translating to some US$32 million a year with a wage-bill that is taking away no less than 69% of total revenue. NRZ owes its 6,000 workers some US$36 million in salary arrears.

[New Zimbabwe 07/07/14]

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Angola Road Links To Neighbouring Countries By 2017Road links between Angola and neighbouring countries will be in place by 2017, the Angolan National Roads Institute (INEA) has said. INEA have just reopened a metal bridge over the Luvo River after the previous bridge was destroyed by an overloaded truck. Plans are underway to build a concrete bridge across the river, which separates the municipality of Mbanza Congo, Angola, and the Lower Congo region of the Democratic Republic of Congo. The bridge will be 37.6 metres long and have one 3.5-metre lane running in each direction.

Work to rebuild the cross-border roads in the south, north and east of the country are also at an advanced stage. A road in the Cunene area linking to neighbouring Namibia is nearing completion and work is underway in the Zaire province rebuild the road to the Lower Congo, DRC. The road corridors in the provinces of Uíge, Malange, Lunda Norte, Lunda Sul, and in Lobito, Benguela, to Luau, Moxico, on the border with Zambia, are due to be rebuilt as part of the National Development Plan too.

[Macauhub 08/07/14]

ChadAfdb Approves Funding For Kyabe-Kingako Axis The African Development Bank (ADB) approved the tarring of the 72.3 km Kyabe-Kingako axis project in Chad at a cost of US$123 million dollars over 4-years. The project will open up the region specifically to neighbouring Sudan. The development will see one of the missing links in the N’Djamena, Moundou, Sarh, Kyabe, Am Timan corridor finalised.

[AfDB 19/06/14]

GhanaOHTTs Wants To Revert Axle Load Limit

Operators in the Haulage and Transit Trade (OHTT) sector have made a plea to government to revert to the axle load limit agreed upon by the European Union and the Economic Community of West African States (ECOWAS) for implementation by the member countries.

Ghana is the only country in the sub-region which has reduced the limit downwards from the approved 68 tonnes to 60 tonnes gross weight for six axle load trucks. This had become a major disincentive with importers from landlocked countries diverting their goods and using other transit routes. OHTT have insisted that the implementation of the new policy was making the trucking of goods very expensive and negatively hurting Ghana’s competiveness in trade and transport, and urged the government to return to the old regime.

Ghana Shippers Authority have said while it is important to highlight the damage to the roads caused by loading above the permitted weight, it is equally important to mitigate the increase in the cost of road transportation. GSA’s position is that a harmonized axle load implementation within the sub-region will create the needed environment for economic growth, facilitate free movement of goods and persons as envisioned by ECOWAS trade protocols.

[GNA 12/07/14]

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WESTERN AFRICAROAD

GhanaPwC Chosen As Transaction Advisors For Railway ProjectPricewaterhouseCoopers (PwC) have been selected as the Transaction Advisors for the Boankra inland port and the Eastern railway line project. The Boankra inland port and the Eastern Railway line project is an important multi-modal transport infrastructure development, which when completed, will improve the rail link between Tema and Kumasi. It will also enhance the operational efficiency of both the Tema and Takoradi ports. PwC will now undertake feasibility studies, develop financial and economic models in addition to giving advice and managing the procurement process.

[Ghanaweb 11/07/14]

NigeriaGovernment Okays N1.3 Billion Contracts for Gauge Rail LinesThe Federal Executive Council (FEC) approved N1.3 billion consultancy service contracts for the design of six standard gauge rail lines across the country. The six lots, totalling 4,430km, to be completed within six months are in addition to seven approved by the council last year.

The contracts are part of the 35-year strategic vision of the federal government for the rail sector. The scope of work will include detailed studies, surveys and designs as well as identification of rail stations along the routes, environmental impact assessment, workshops and other rail basic infrastructure.

The new contracts cover Kano-Dayi-Katsina-Jibiya rail line, Ilela-Sokoto-Jega-Yauti-Makera rail line, Aba-Ikot Ekpene-Ibiono-Itu (spur line to Uyo)-Odupkani-Calabar rail line, Kano-Nguru-Gashua-Damaturu/Gamborun-Ngala rail line, Calabar-Ikom-Obudu-Ogoja-Katsina Ala-Wukari-Jalingo-Yola-Maiduguri and Port Harcourt-Aba-Umuahia-Enugu-Makurdi-Lafia-Jos-Bauchi-Gombe-Biu-Maiduguri rail line. The contracts were carefully selected to cover areas with such strong economic potentials as mining, petro-chemicals, solid minerals deposits, agricultural zones, among others.

[Daily Trust 17/07/14]

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WESTERN AFRICARAIL