Transnet SOC Ltd © LTPF 2017 2018/6. LTPF 2017_A… · transnet soc ltd © ltpf 2017 table of contents 1. introduction _____ 345 2

Transnet SOC Ltd © LTPF 2017


ACRONYMS AND ABBREVIAIONS

AfDB African Development Bank

AICD Africa Infrastructure Country Diagnostic

ARTIN African Regional Transport Infrastructure Network

AUC African Union Commission

Bbl/d Billion barrels per day (oil)

BBR Beitbridge Bulawayo Railways

BR Botswana Railways

bcm Billion cubic metres per year

CCFB Companhia Dos Caminhos De Ferro Da Beira

CDN Railway Systems of Northern Mozambique (Corredor de Desenvolvimento do Norte)

CEAR Central East African Railways

CFB Lobito - Benguela Railways (Caminhos de Ferro de Benguela)

CFL Luanda Railways (Caminhos de Ferror de Luanda)

CFMa Namibe Railways (Caminhos de Ferror de Namibe)

CFM Railways and Ports of Mozambique (Portos e Caminhos de Ferro de Mozambique)

CFM-CENTRAL The Beira Railroad

CFMK Chemin de Fer Matadi-Kinshasa

CFM-NORTH The Nacala Corridor (Also see CDN)

CFM-SOUTH The Maputo Railroad

CFN Moçãmedes Railways (Caminhos de Ferro Namibe)

CPCS CPCS Transcom International Limited

CPMZ Companhia Pipeline Moçambique - Zimbabwe

DRC Democratic Republic of the Congo

GDP Growth Domestic Product

LCA Logistics Capacity Assessment

mscfd Million standard cubic foot per day (measure of gas flow)

mtpa Million ton per annum

NOCZIM National Oil Company of Zimbabwe

NPCA NEPAD Planning and Coordinating Agency

NRZ National Railways of Zimbabwe

PAP Planned action plan

PIDA Programme for Infrastructure Development in Africa

RSZ Railway Systems of Zambia

SADC Southern African Development Community

scf Standard cubic foot (a measure of quantity of gas)

SETRAG Societe d’Exploitation du Transgabonais

SNCC Societe Nationale des Chemins de Fer du Congo

SR Swaziland Railways

TAZAMA Tanzania Zambia Mafuta Pipeline

TAZARA Tanzania and Zambia Railway Authority

Tcf Trillion cubic feet

TMSA Trademark SA

UNCTAD United Nations conference on trade and development

ZRL Zambian Railways Limited


TABLE OF CONTENTS

1. INTRODUCTION _____________________________________________________________________ 345

2. OVERVIEW OF DEMAND _______________________________________________________________ 345

2.1 TOTAL FREIGHT SURFACE FLOWS (SADC COUNTRIES) __________________________________________________ 345

2.1.1 SOUTH AFRICA CROSS BORDER TRAFFIC (TRANSNET TRANSPORTATION MODEL) _________________________ 345

2.1.2 SUB-SAHARAN AFRICA TOTAL ROAD AND RAIL FLOWS _______________________________________________ 346

2.1.3 CRUDE OIL PIPELINE FLOWS ____________________________________________________________________ 354

2.2 PORTS (MAJOR AFRICAN PORTS) ____________________________________________________________________ 357

2. OVERVIEW OF CONDITION AND CAPACITY STATUS QUO _____________________________________ 359

2.1 RAIL ___________________________________________________________________________________________ 359

2.2 PORTS __________________________________________________________________________________________ 364

2.3 PIPELINES ______________________________________________________________________________________ 367

3. OVERVIEW OF REGIONAL CORRIDOR DEVELOPMENT STRATEGIES ______________________________ 370

3.1 KEY ISSUES AND TRENDS HAMPERING DEVELOPMENT __________________________________________________ 370

3.2 LESSONS LEARNED _______________________________________________________________________________ 371

3.3 OVERVIEW OF SADC CORRIDORS ____________________________________________________________________ 371

3.3.1 SALIENT ISSUES NEGATIVELY IMPACTING ON CORRIDOR OPERATIONS _________________________________ 379

3.4 CORRIDOR DEVELOPMENTS AND PLANS ______________________________________________________________ 380

3.5 FORECASTED REGIONAL DEMAND ___________________________________________________________________ 382

3.6 STRATEGIC RAIL PROJECTS ________________________________________________________________________ 383

3.7 STRATEGIC PORT PROJECTS ________________________________________________________________________ 385

3.8 STRATEGIC PIPELINE PROJECTS_____________________________________________________________________ 386

4. TRANSNET AFRICA STRATEGY __________________________________________________________ 387

Please note this Long-Term Framework Plan is not a business or operational plan, and is unconstrained to capital planning and

independent to other more detailed Transnet business and operating division (OD) plans. The LTPF is only a planning tool, to

broadly guide Transnet and all external and public stakeholders.

AFRICA INFRASTRUCTURE PLAN

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1. INTRODUCTION

One of the overarching objectives for Transnet as contained in the Shareholder compact is to “Integrate South Africa with the

region and the rest of the continent”. In addition economic developments in the Southern African region present enormous

opportunities for Transnet, as one of the major players in the national freight system, in the medium- to longer-term. The World

Bank’s Africa Pulse report of October 2013 reports that economic activity remains strong in much of sub-Saharan Africa,

underpinned by robust domestic demand. The economic outlook for the region seems to be very positive by all accounts. More

than a decade of growth has helped to lower poverty, but the twin goals of ending extreme poverty and boosting shared

prosperity call for a sharp ramping up of effort. The World Bank projects GDP growth in sub-Saharan Africa reflected to be 4, 9

percent in 2013, rising to 5, 3 percent in 2014 and 5,5 percent in 2015. In addition countries in SADC such as Mozambique,

Zambia, Angola and Tanzania are amongst the fastest growing in the world even though it is from a low base.

Transnet has therefore embarked on a much more focused African strategy. This chapter provides a view on the current

infrastructure within the region as well as an overview on freight demand and regional corridor development strategies and plans.

Major developments and opportunities concerning rail, port and pipeline infrastructure are highlighted. A very brief view is

presented of the Transnet strategies and development plans for Africa.

2. OVERVIEW OF DEMAND

The Regional Freight Demand Model (RFDM) 2015 investigates the economies of 17 countries in sub-Saharan Africa. These

countries are namely: Angola, Botswana, Burundi, Congo, Democratic Republic of the Congo (DRC), Kenya, Lesotho, Malawi,

Mozambique, Namibia, Rwanda, South Africa, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. The objective is to forecast

the demand for the aforementioned countries over a 31- year forecast period to support the development of transport

infrastructure projects with a good information system. The RFDM methodology can be divided into three components, namely the

compilation of a Social Accounting Matrix (SAM) for each of the countries. Secondly, the calculation of the volumes per commodity

for the base year takes place, and thirdly the forecasting thereof.

2.1 TOTAL FREIGHT SURFACE FLOWS (SADC COUNTRIES)

2.1.1 SOUTH AFRICA CROSS BORDER TRAFFIC (TRANSNET TRANSPORTATION MODEL)

The TTM (Transnet Transportation Model) is a gravity flow model that produces flows of freight on the rail network, cross-border

and through the port system. Inputs to the model are the RFDM (Freight Demand Model) origin- destination pairs, independent

views on strategic commodities and network data.

The cross border traffic under review here are total surface flows, irrespective of mode, (road, rail, pipelines and air). Only

countries which border South Africa are under consideration.


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2013 - 2044 SA cross border traffic (mtpa)

Country Border Post 2013 EX to 2044 EX to 2013 IM from 2044 IM from

Botswana Ramatlhabama 2.61 5.44 0.95 5.55

Lesotho Maseru 3.03 6.82 0.38 0.90

Mozambique Komatipoort 8.63 27.91 0.18 0.73

Namibia Nakop 0.46 0.85 0.46 0.85

Swaziland Mananga 8.44 29.79 8.51 29.84

Zimbabwe Beitbridge 3.25 7.90 2.29 4.53

2013 – 2044 SA cross border traffic (mtpa)

2013 – 2044 SA cross border traffic (mtpa)

2.1.2 SUB-SAHARAN AFRICA TOTAL ROAD AND RAIL FLOWS

The demand data reflected here refers to total road, rail and pipeline freight surface flows, and no attempt has been made at this

stage to establish what market share could be targeted by rail. The data is categorised into three sectors, agriculture,

manufacturing and mining.


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DOMESTIC FREIGHT TRAFFIC

In 2013 the biggest domestic sector traffic was made up by mining at 357mtpa, with most of the volumes emanating from South

Africa. This is expected to grow to 1 127mtpa by 2044. Agricultural domestic traffic was at 327mtpa in 2013 and is projected to

grow to 1 100mtpa in 2044. The biggest growth prospects are in manufactured goods, forecasted to grow from 284mtpa in 2013

to 1 110mtpa by 2044. Most of the growth in manufactured goods volumes is seen in South Africa, Angola, DRC, Tanzania,

Uganda and Mozambique.

Agriculture Manufacturing Mining

Country 2013 2019 2044 2013 2019 2044 2013 2019 2044

Angola 18 713 276 24 835 964 87 161 273 24 053 687 32 584 586 140 301 524 5 768 111 7 658 607 18 959 538

Botswana 405 391 413 694 1 003 351 6 850 537 7 928 349 18 246 113 9 040 078 9 543 249 28 271 916

Burundi 5 471 270 6 391 000 13 698 039 2 063 999 2 435 678 5 680 745 724 958 814 558 2 332 736

Congo 2 761 734 3 106 446 5 414 262 5 103 367 5 927 462 14 665 868 4 794 012 6 608 048 14 630 860

DRC 28 800 105 44 087 587 143 634 354 13 656 086 22 835 204 112 124 678 4 024 163 5 479 846 31 343 315

Kenya 34 263 426 39 150 089 81 782 057 21 393 295 23 861 766 63 736 112 1 980 513 3 393 678 10 222 463

Lesotho 275 531 367 275 571 498 2 009 867 2 542 066 4 701 993 105 146 126 764 745 933

Malawi 22 372 678 28 227 192 83 792 279 3 670 505 4 686 788 21 202 084 2 925 691 3 343 637 7 647 218

Mozambique 22 308 397 28 624 369 101 318 647 11 225 247 15 451 039 67 902 474 6 138 734 8 552 105 35 824 794

Namibia 713 399 1 070 925 3 317 452 5 200 361 8 421 629 29 388 901 891 881 2 801 699 5 157 479

Rwanda 13 993 872 18 296 699 62 341 684 2 943 072 4 105 361 22 204 082 780 997 1 074 949 3 366 759

South Africa 70 286 989 81 299 181 148 889 095 136 474 820 163 311 858 360 483 141 305 565 905 377 841 235 895 713 667

Swaziland 5 750 037 6 920 092 10 376 100 2 781 967 3 104 278 8 197 063 774 398 845 678 1 683 073

Tanzania 46 759 537 60 669 486 178 197 708 19 989 351 29 819 237 103 200 035 2 398 419 3 295 439 17 706 233

Uganda 33 685 089 53 215 376 102 787 528 11 473 284 23 185 213 59 640 620 1 720 346 3 631 265 12 378 781

Zambia 12 280 558 15 692 691 40 158 248 9 903 976 13 668 333 46 768 293 4 404 048 5 131 368 18 806 419

Zimbabwe 7 977 650 10 795 557 31 809 546 4 913 963 6 931 071 31 755 473 5 230 588 5 943 338 22 667 339

Grand Total 326 818 938 423 163 623 1 096 253 122 283 707 385 370 799 918 1 110 199 200 357 267 987 446 085 464 1 127 458 525

Domestic freight traffic


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Domestic freight traffic per sector: 2013 - 2044

INTRA-REGIONAL IMPORTS AND EXPORTS

INTRA-REGIONAL IMPORTS

Manufactured goods imports make up the biggest share of total goods imported. The biggest importer of these goods is South

Africa. Total manufactured goods imports are projected to grow from 19mtpa in 2013 to 55mtpa in 2044.

South Africa is the biggest importer of agricultural goods in the region. Intra-regional imports of these goods are projected to

steadily grow to 1,2mtpa by 2044. Mining imports are driven by South African and Zambian demand. In 2013 the total intra-

regionally traded mining goods were 4,8mtpa and are expected to grow to 11,6mtpa in 2044.


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Country 2013 2019 2044 2013 2019 2044 2013 2019 2044

Angola 111 272 126 601 236 183 974 414 1 158 559 2 338 903 31 610 36 568 147 219

Botswana 374 731 397 861 514 274 1 897 076 2 158 163 4 069 254 165 478 189 448 335 032

Burundi 34 573 39 490 69 465 207 142 246 638 560 382 2 864 3 381 8 788

Congo 8 062 9 053 15 078 147 630 178 954 422 305 2 057 2 795 10 136

DRC 74 019 104 127 385 015 1 537 288 1 984 451 6 080 200 71 532 100 660 426 308

Kenya 138 285 169 611 372 575 873 167 1 047 274 2 285 305 100 211 119 670 174 145

Lesotho 218 225 225 119 259 489 756 676 866 278 1 381 988 53 340 62 608 96 378

Malawi 136 079 150 780 511 082 534 900 635 813 1 545 982 44 010 48 421 143 996

Mozambique 155 857 164 220 279 999 1 450 466 1 767 859 4 334 799 45 001 57 092 93 930

Namibia 154 307 168 235 259 848 1 741 235 2 046 810 4 091 118 77 935 93 512 201 911

Rwanda 92 225 116 480 413 232 617 006 805 224 2 890 304 8 455 9 935 31 102

South Africa 597 578 666 692 1 243 477 4 063 062 5 076 680 13 053 954 3 032 266 3 469 246 6 993 792

Swaziland 191 458 197 343 233 751 729 755 830 291 1 498 645 118 077 138 911 199 722

Tanzania 96 616 122 586 392 230 542 176 683 614 1 786 335 11 641 17 661 25 161

Uganda 50 372 62 775 126 330 872 065 839 375 2 081 305 96 358 116 587 226 943

Zambia 41 994 48 377 88 308 1 595 625 1 929 507 4 451 492 909 054 1 212 017 2 066 859

Zimbabwe 439 721 497 742 1 027 544 1 109 944 1 281 775 2 609 726 116 913 151 208 448 499

Grand Total 2 915 372 3 267 089 6 427 879 19 649 628 23 537 267 55 481 997 4 886 804 5 829 719 11 629 922

Intra-regional imports

Intra-regional imports per sector: 2013 - 2044


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INTRA-REGIONAL EXPORTS

South Africa is the biggest intra- regional exporter of goods in the region across the agricultural and manufacturing sectors, while

Angola dominates the mining sector under the study.

Total manufactured goods are the most traded goods in this regard and are expected to grow from 20mtpa to 55mtpa in 2044.

Mining exports from Angola and South Africa drive the growth in this sector. Intra-regional mining exports are forecasted to grow

from about 4,9mtpa in 2012 to about 11,6mtpa in 2044.

Agricultural volumes show steady growth, expected to grow from about 3mtpa in 2013 to 6,4mtpa in 2044.


Country 2013 2019 2044 2013 2019 2044 2013 2019 2044

Angola 3 4 12 4 811 5 157 7 045 2 316 043 2 706 798 6 006 861

Botswana 7 591 8 264 16 727 213 770 265 308 476 576 333 944 388 463 787 315

Burundi 862 1 093 3 053 7 524 9 106 36 489 17 23 85

Congo 1 2 3 10 085 13 087 36 205 152 191 496

DRC 926 1 137 3 099 93 109 120 327 359 218 485 745 725 414 934 841

Kenya 57 455 67 288 139 721 1 074 392 1 145 983 3 293 473 60 092 71 810 167 180

Lesotho 1 579 1 669 2 142 84 953 109 416 299 185 24 882 26 556 34 225

Malawi 60 528 72 804 204 912 158 056 203 832 650 973 10 270 15 999 21 582

Mozambique 153 704 170 676 443 441 2 829 790 3 574 306 9 734 419 129 046 140 292 284 053

Namibia 247 889 291 375 601 661 402 847 484 653 1 132 410 379 157 432 330 955 144

Rwanda 35 625 44 372 120 296 130 681 162 050 519 055 1 872 2 361 6 229

South Africa 1 415 485 1 487 626 1 861 175 11 168 158 13 052 611 26 082 338 746 331 882 019 1 461 972

Swaziland 47 446 49 290 57 938 513 894 653 800 1 759 160 45 444 48 341 61 430

Tanzania 110 887 140 781 371 869 669 660 802 067 2 401 907 78 120 99 091 223 959

Uganda 230 582 299 565 977 241 961 905 1 288 485 4 092 881 3 630 4 690 17 492

Zambia 345 765 418 805 1 170 806 840 124 1 046 843 3 092 615 46 100 52 358 115 013

Zimbabwe 199 044 212 339 453 782 485 869 600 235 1 508 048 225 962 232 981 552 044

Grand Total 2 915 372 3 267 089 6 427 879 19 649 628 23 537 267 55 481 997 4 886 804 5 829 719 11 629 922

Intra-regional exports


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Intra-regional exports per sector: 2013 - 2044

IMPORTS AND EXPORTS OUTSIDE THE REGION

IMPORTS OUTSIDE THE REGION

Manufactured goods make up the biggest percentage of all goods imported into the region. South Africa and Angola import the

bulk of these. In total, importing of manufactured goods will grow from 87mtpa in 2013 to 348mtpa in 2044.

South Africa is the main driver of demand for mining imports into the region. Mining imports are projected to grow from about

30mtpa in 2013 to about 90mtpa in 2044, while agricultural imports are expected to grow from about 10mtpa in 2012 to 37mtpa in

2044.


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Country 2013 2019 2044 2013 2019 2044 2013 2019 2044

Angola 893 108 1 173 919 4 156 235 9 287 700 12 317 042 40 631 391 698 282 859 471 2 824 045

Botswana 186 072 263 655 756 982 2 554 192 3 140 449 7 229 561 124 231 139 858 342 832

Burundi 98 581 111 927 205 076 529 374 595 970 1 200 500 47 722 76 534 175 672

Congo 559 908 638 833 1 258 975 3 239 681 3 943 473 9 979 801 167 028 288 700 791 136

DRC 401 296 563 976 2 258 239 1 435 497 2 291 830 14 820 360 40 866 74 617 421 017

Kenya 1 669 157 2 086 779 4 432 717 9 879 570 11 550 579 29 199 240 1 106 262 1 356 132 4 648 368

Lesotho 150 674 226 333 416 468 746 093 1 073 381 2 995 487 40 599 58 455 383 446

Malawi 325 215 455 665 2 209 783 1 566 379 2 135 007 6 460 853 678 735 777 169 3 039 516

Mozambique 662 908 913 369 4 423 796 5 429 120 7 420 407 40 127 726 81 845 132 611 743 290

Namibia 91 367 190 702 895 744 1 603 869 2 461 867 11 130 921 33 841 47 529 333 160

Rwanda 164 848 213 742 702 251 766 992 1 035 345 4 175 130 113 102 143 574 462 456

South Africa 3 220 894 3 750 034 7 133 494 31 978 597 39 919 801 98 286 955 25 657 336 29 577 820 61 829 738

Swaziland 119 184 143 248 347 741 540 568 643 921 1 814 196 77 224 90 422 252 922

Tanzania 804 744 942 243 3 862 760 7 362 539 11 120 855 36 093 667 431 491 1 042 336 6 728 808

Uganda 301 765 461 500 1 285 862 5 334 520 7 184 832 19 582 270 242 074 416 033 1 339 618

Zambia 62 373 86 498 275 894 2 704 736 3 695 622 13 616 728 948 192 1 330 043 4 515 117

Zimbabwe 408 790 689 458 2 870 702 1 954 993 2 546 470 11 001 375 274 272 416 585 1 368 504

Grand Total 10 120 884 12 911 882 37 492 719 86 914 419 113 076 854 348 346 161 30 763 100 36 827 891 90 199 645

Imports outside the region


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Imports outside the region per country and freight sector: 2013 - 2044

EXPORTS TO OUTSIDE THE REGION

Mining, as expected, makes up the biggest portion of the goods exported from the region. In 2013 almost all mining exports

emanated from South Africa, but in 2043 the picture changes, even though South Africa will still be dominant, Angola, Botswana

and Mozambique are expected to develop to be significant exporters by this time.

Mining exports are expected to grow from 262mtpa in 2013 to 801mtpa in 2044.

Manufacturing and agricultural sector exports are projected to grow from 31mtpa in 2013 to 132mtpa in 2044 and 10mtpa to

38mtpa respectively.


Country 2013 2019 2044 2013 2019 2044 2013 2019 2044

Angola 12 396 14 311 25 666 1 505 822 1 797 155 4 718 027 80 895 382 109 133 724 234 016 867

Botswana 1 917 2 321 6 650 228 201 279 680 546 506 87 927 1 983 118 70 179 882

Burundi 1 441 1 888 5 763 76 809 110 580 492 994 4 075 5 476 18 762

Congo 1 581 2 040 6 887 604 422 821 754 2 980 641 10 200 052 14 107 283 29 295 177

DRC 4 811 7 420 35 395 1 243 657 1 875 975 10 424 112 944 252 1 534 785 14 415 071

Kenya 1 088 183 1 277 683 2 802 420 1 589 651 3 122 242 12 014 642 358 762 433 648 1 209 755

Lesotho 2 114 5 590 27 338 67 874 111 176 730 908 1 047 13 074 197 913

Malawi 433 684 536 439 2 485 553 477 963 660 009 2 745 669 40 127 63 461 242 434

Mozambique 373 853 549 549 4 280 569 1 018 707 2 668 785 17 155 472 4 444 458 7 869 932 78 195 145

Namibia 308 650 538 719 1 470 108 304 909 482 927 2 538 461 710 133 1 145 819 6 005 019

Rwanda 25 493 36 043 149 428 232 259 331 344 1 408 915 2 836 4 553 28 157

South Africa 5 549 811 5 979 550 8 264 943 19 756 820 23 934 722 52 889 403 161 905 822 212 873 568 356 077 262

Swaziland 33 025 57 596 291 974 370 591 572 305 3 048 591 997 176 1 475 310 3 344 529

Tanzania 1 000 215 1 468 937 6 387 950 751 415 1 226 466 5 192 452 215 644 330 470 1 631 145

Uganda 345 780 942 451 9 048 702 930 771 1 994 239 7 495 910 17 647 64 948 626 452

Zambia 569 659 783 455 2 213 341 1 240 791 1 644 909 4 910 578 1 323 221 1 880 242 5 594 591

Zimbabwe 328 475 389 496 1 060 231 408 117 543 521 2 777 730 62 282 69 799 571 937

Grand Total 10 081 086 12 593 488 38 562 917 30 808 778 42 177 787 132 071 013 262 210 844 352 989 210 801 650 100

Exports outside the region


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Exports outside the region per country and freight sector: 2013 - 2044

2.1.3 CRUDE OIL PIPELINE FLOWS

Pipeline transportation is both the route and the vehicle, and it is permanently connected to terminals, which facilitate freight

storage. This feature makes it the only mode of transport that does not involve handling costs. Taking cognisance of the fact that

pipeline infrastructure is extremely capital intensive and that it has an unprecedented longevity; pipeline transport enjoys the

highest level of economies of scale of all modes of transport. Commercial transportation of crude oil and petroleum products by

pipeline has been receiving increased attention worldwide and there are a number of planned key developments and projects in

Africa as a whole.

DOMESTIC

Congo had the biggest crude domestic movements for 2013 at about 4.2mtpa, followed by Angola at 4,1mtpa. In 2044 Angola’s

volumes are expected to grow to 10mtpa. With the recent discoveries of oil reserves within the East Africa region, Kenya and

Uganda’s crude domestic movements are expected to grow to about 0.5mtpa and 5mtpa respectively in 2044.


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Domestic Crude 2013 - 2044

IMPORTS AND EXPORTS OUTSIDE THE REGION

Regional imports are made up mostly of crude imports with some natural gas. South Africa is the biggest importer of both

commodities. Crude imports by SA were about 22mtpa in 2012 and expected to grow to about 64mtpa in 2043. SA is projected to

grow the natural gas imports to 1,1mtpa in 2043, from the current 0,35mtpa. Tanzania shows significant growth in crude imports

as it is currently not importing any volumes but projected to import 14,5mtpa by 2043.

Crude imports from outside the region

EXPORTS

The exports of the commodities under study are dominated by crude. The crude exports from the country are expected to grow


356


from about 78mtpa in 2012 to 195mtpa by 2043. Mozambique and Congo show the biggest growth prospects in natural gas, they

are expected to grow volumes to 1,3mtpa and 10,2mtpa respectively.

Crude exports per country from outside the region


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2.2 PORTS (MAJOR AFRICAN PORTS)

The table below provides forecasted growth in TEU numbers and total tonnage volume for selected ports in Africa. It is estimated

that the number of TEUs will grow at an average CAGR of 4.2% per annum and the total volumes handled at 5.3% per annum.

African Ports # of TEUs ('000) Total tons ('000)

Country Name Port Name 2013 2044 2013 2044

Algeria Algiers 737 1 536 13 616 28 361

Skikda 90 161 25 323 52 743

Bejaia 249 445 20 277 42 234

Angola* Luanda 913 2 105 11 300 32 534

Cabinda 12 35 1 000 2 879

Lobito 42 121 2 368 6 819

Namibe 18 52 961 2 767

Benin Cotonou 348 2 325 6 800 74 486

Cameroon Douala 350 2 007 10 592 96 010

DRC* Matadi 110 878 2 000 27 307

Congo* Pointe-Noire 509 2 543 7 652 58 394

Cote d'Ivoire Abidjan 610 2 466 16 643 137 688

Djibouti Djibouti 795 2 676 7 103 45 879

Egypt Damietta 1 000 2 685 28 900 100 933

Alexandria 1 519 3 618 49 400 172 529

Port Said 3 910 10 788 36 700 128 175

Sokhna 600 1 611 7 400 25 844

Gabon Libreville 162 738 6 500 44 058

Gambia Port of Banjul 13 160 1 755 20 912

Ghana Tema 842 2 591 12 181 46 717

Takoradi 52 127 5 456 16 793

Guinea Conarky 150 374 4 500 55 283

Kenya* Mombasa 894 2 841 22 133 70 333

Liberia Monrovia 86 492 2 271 20 632

Buchanan 0 0 2 662 24 181

Libya Benghazi 156 1 524 2 500 24 390

Morocco Casablanca 825 2 609 22 672 97 361

Jorf-Lasfar 0 0 17 804 76 455

Mohammedia 0 0 11 924 51 206

Tanger-Med 2 600 9 885 30 000 128 831

Mozambique* Maputo 113 917 17 000 100 231

Beira 160 840 1 921 43 689

Nacala 90 471 1 354 30 795

Pemba 8 62 131 1 086

Namibia* Walvis Bay 302 1 436 6 219 46 524

Luderitz 3 14 335 1 594

Nigeria Lagos 1 155 4 695 21 000 85 358

Onne 216 654 27 000 109 746

Senegal Dakar 402 1 653 11 870 71 005

Sierra Leone Freetown 90 631 1 412 16 442

Pepel 0 0 12 100 140 899

Sudan Sudan 447 2 113 10 034 71 381


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Tanzania* Dar es Salaam 553 3 786 12 531 85 777

Tanga 10 48 458 3 132

Mtw ara 15 67 204 1 394

Togo Lome 311 1 872 8 699 83 586

Tunisia Rades 424 1 142 6 296 22 094

Sfax 39 102 5 017 17 605

* countries where crude oil volumes were excluded from bulk figures

Africa ports demand: 2013 – 2044

The total demand at the 14 ports that serve the region (excl. South African ports) was estimated at 87 million tons in 2013. This is

forecasted to grow to 511 million tons in 2044 at a CAGR of 5.8% per annum. Crude volumes have been excluded from the totals.

In 2013 the distribution of imports and exports at these ports were 74% imports and 26% exports. This is set to change

significantly with imports’ share declining to 54% and exports’ rising to 46% in 2044. The table below gives an indication of the

import/export ratio per major port in the SADC region, excluding South Africa.

Country Port Import/Export ratio

2013 2044

Cabinda 84/16 89/11

Lobito 90/10 85/15

Angola Luanda 86/14 88/12

Namibe 88/12 87/13

Congo Pointe-Noire 88/12 81/19

DRC Matadi 58/42 61/39

Kenya Mombasa 82/18 67/33

Beira 25/75 11/89

Maputo 64/36 40/60

Mozambique Nacala 72/28 60/40

Pemba 71/29 54/46

Luderitz 56/44 54/46

Namibia W alvis Bay 57/43 31/69

Tanzania Dar es Salaam 75/25 69/31

Import /Export ratio per country


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2. OVERVIEW OF CONDITION AND CAPACITY STATUS QUO

The objective of this portion of the chapter is to provide an overview of the current status and capacity of the railways and

pipelines within the SADC region, and most of the major container ports in Africa. Most of the information reflected here was

extracted from various source documents and are referenced accordingly.

2.1 RAIL

Seven interconnected national railways form an extensive and well-developed regional rail network in Southern Africa, spanning

half a dozen countries and extending from the Democratic Republic of Congo all the way to Durban in Southern Africa as indicated

in Figure 1. This represents a far higher level of regional rail interconnection than has been achieved elsewhere in Africa, where a

few bi-national railways exist but systems are otherwise disconnected.

African Railway Infrastructure Source: www.skyscrapercity.com

Unlike in other parts of Africa, the rail network in Southern Africa is integrated with the use of a uniform Cape gauge, as seen in

the figure below.


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Figure 2: Africa and the Sub-Saharan regional railway network Source: www.skyscrapercity.com

Railway gauges within the Sub-Saharan African region predominantly consist of Cape gauge with three countries in east Africa (i.e.

Tanzania, Kenya and Uganda) with metre gauge rail systems and one country (i.e. Gabon) with a standard gauge rail system.

North and West African railways are individual systems from the coasts to inland, as this is mainly mining areas.

Key factors for selecting a rail gauge are;

• Network connectivity with neighbouring countries

• Network interoperability especially for Transnet/PRASA shared infrastructure and branch line private operators

• Stand-alone lines - Select the highest specifications for load or speed

Of the total 55 000km of track in sub-Saharan Africa, 40% of the operating network and 70% of the traffic are captured by

Transnet Freight Rail in South Africa. Railways in Southern Africa carry much more freight than in all the other regions of Africa put

together. Overall, Southern Africa handles around 74% of sub-Saharan Africa’s freight traffic (including coal and minerals) and

more than 80% of the total net tonne-kilometres. Southern Africa also dominates the passenger business, carrying more than 70%

of total passenger kilometres, largely because of its extensive commuter passenger services operated by PRASA.

The current regional railway systems within the SADC region are operating well below their original design capacity. Furthermore

the railway systems have severe capacity constraints because of poor rail infrastructure and rolling stock availability.


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The design capacity and current throughput as per country have been updated subsequent to latest available information and

completed studies. Transnet’s perspective on the capacity of each system was determined in the Regional Assessment Services for

Rail Networks, Ports and Pipelines study (2014/2015) and is listed in the following table. Various colours used to compare

Transnet’s perspective to the Design Capacity on the line are as follows:

• Green – Transnet’s perspective greater than Design Capacity

• Orange - Transnet’s perspective within 80-100% of Design Capacity

• Red - Transnet’s perspective less than 80% of Design Capacity

Country Railways

Lines (km) Network capacity

Total Operating Design capacity

(mtpa)

Current

throughput

(mtpa)

Transnet

Perspective

(mtpa)

Angola

CFB 1 331 1 331 2.5 0.16 6.5

CFL 479 479 2.5 0.26 11

CFMa 907 512 2.5 0.62 6

Botswana BR 888 888 4 2 7

Congo CFCO 797 797 4 3.5 5.5

DRC SNCC 3 669 3 669 2 0.1 1,2

CFMK 400 - - - -

Gabon SETRAG 649 649 15 3.7 4

Kenya KCR 2210 2210 - 4.2 8

Malawi CEAR / CDN 820 820 5 0.5 4

Mozambique

CFM-Central 987 314 7 6.5 5

CDN 871 611 7 0.2 2,8

CFM-South 1 129 1 129 15 2 19

Namibia TransNamib 2 559 1 683 2 1.8 3

Swaziland SR 365 365 - - 11

Tanzania TRC 2 707 2 707 3 0.7 4

TAZARA 921 921 5 0.22 3

Uganda UCR 1241 1241 - 4.2 2.7

Zambia

TAZARA 939 939 5 0.22 2.7

ZRL 163 - 3 0.5 -

ZRL 810 810 10

Zimbabwe NRZ 3 077 2 759 18 2.5 5.5

BBR 150 150 11

SADC Rail network design capacity and current throughput

Poor maintenance over extended periods of time has caused the deterioration of many sections of the track, as reflected in Figure

3, and resulted in a loss of competitiveness and rolling-stock productivity. While such inefficiencies can be tolerated on low-volume

feeder lines, and may be the only way some can be viably operated, they are a major handicap when competing against some of

the modern roads being constructed along major corridors.

Henceforth the available capacity on the railway systems cannot be exploited without substantial capital investment in

rehabilitation and repairs and the procurement and maintenance of sufficient and reliable rolling stock.


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Figure 3: Rail Track Condition


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The table below reflects the current condition of the various line sections based on the latest source information and studies.

The rail condition is defined as follows:

� Good – Properly maintained and/or recently upgraded

� Fair – Requires upgrading or some maintenance � Bad – Line is in a poor condition and/or damaged

Country Railway Track condition assessment

Angola Lobito – Benguela railway

Rehabilitated by China up to Luau. Reopened in 2012/13. Good. Link with Dilolo in

DRC still need to be constructed

Luanda railway Rehabilitated by China and in fair to good condition

Namibe railway Rehabilitated by China and in fair to good condition

Botswana Botswana Railway Rail network generally in a good condition

Congo CFCO Rail network generally in bad condition

DRC SNCC

Rail network generally in bad to fair condition

Track between Kolwezi and Dilolo overgrown and not in use

CFMK Rail network generally in bad condition

Gabon SETRAG Rail network generally in a fair condition

Zimbabwe NRZ / BBR Rail network generally in a fair to good condition

Kenya KCR Rail network generally in a fair condition

Mozambique

CFM-Central Beira to Machipanda section of the Beira corridor in poor condition

Sena line from Moatize to Beira in good condition since it is being rehabilitated

CFM-South

Section between Ressano Garcia to Maputo generally in good condition

Section between Maputo and Chicualacuala generally in good condition

Section between Goba and Machava in good condition

CFM-North

(CDN)

Nacala to Cuambo in good condition

Rest of network in poor condition

Nacala to Nkaya Junction being upgraded. New line being constructed between

Moatize and Nkaya Junction

Malawi

CEAR / CDN

Generally fair to good

Section from Dona Ana bridge to Luchenza closed since 1985

CEAR concession responsible to upgrade lines

Namibia TransNamib Track generally in good condition

Swaziland Swazirail Generally in fair condition

Tanzania Tanzania Railway Company Generally fair with northern network from Tanga to Arusha not in use

Uganda UCR Rail network generally in a fair condition

Zambia ZR Sections of track bad, fair to good condition

Zambia/

Tanzania TAZARA

Track in poor condition

Track in Tanzania upgraded to higher axle load whilst track in Zambia still at a

lower axle load

SADC Rail network condition summary Source: TradeMark – Revamping the Regional Railway System in Eastern and Southern Africa Region 2012 and SADC RIDMP 2012


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2.2 PORTS

As expected for such a vast continent the port system is extensive and built to serve the needs of the individual continental

countries and their natural hinterlands. The port network can be divided into the following:

• Northern African ports which are more Eurocentric and act as transhipment ports for the Mediterranean markets.

• West African ports focused on moving cargoes into West Africa and the Sahel nations as well as primarily agricultural

exports.

• Southern African ports dominated by South Africa but more focused on a variety of imports and mineral exports.

• East African ports which are dominated by three ports and have a number of corridors flowing from them.

The high average growth rate in Africa over the last few years has had a marked effect on the utilisation and efficiency of these

ports and many are operating on or around their design capacity. This has created the opportunity for new operations in current

ports and even the development of new ports on the African coastline, especially in high potential markets such as Nigeria and

Mozambique.

Africa container growth is 2% higher than worldwide average. As Africa grows the capacity in ports (current and new) will increase

by about 8% while demand will increase by about 6% on average per annum. As Africa goes into more developments the capacity

utilisation will decrease over the next few years. This will create a 64%-65% utilisation factor for African ports, not far from the

70% capacity utilisation benchmark, which implies looking at increased developments. There is also a need for hub ports with good

water depth in the region.

Worldwide half the number of ships in fleets will be larger than 10 000 TEUs and this will bring about the following:

• Growth in scale of economies

• Alliances with other shipping lines

• Cascading of replaced medium ships onto smaller trades causing a shake-up in ports needing to hold greater ship

sizes

• Current volumes of containers in Africa are split as:

o North Africa 45% driven by transhipments in the Mediterranean

o East Africa 12%

o West Africa 21%

o Southern Africa 22%


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The following map (Figure 4) indicates the location of the African ports and reflects the ports by size in terms of TEUs handled:

African ports by size Source: African Development Report 2010 – Port Development in Africa


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Below is a summary of some key African container ports, their container terminal capacities, and capacity constraining

factors.

Country Port Container operator Capacity

(TEU’s) Capacity issues

Angola Luanda Sogester/Unicargas 300 000 Containers stored off site

Angola Cabinda Port Authority 50 000 Berth depths

Angola Lobito Port Authority 40 000 Berth depths

Angola Namibe Port Authority 120 000 Berth depths

Congo DRC Matadi Port Authority 100 000 Storage limitations and equipment productivity

Republic of

Congo Pointe-Noire Bolloré 550 000 Store containers off site

Gabon Owendo/Libreville Bolloré Africa 150 000 Limited by storage space at port

Mozambique Maputo Maputo Port Development

Company 150 000 Limited by ships depth

Mozambique Beira CFM & Cornelder 100 000 Limited by ship's size and depth

Mozambique Nacala Portos de Norte 45 000 Lack of equipment and storage space

Mozambique Pemba CFM - North 50 000 Capacity limited by depth at port

Namibia Walvis Bay Namport 500 000 Set by type of ships to visit port

Namibia Lüderitz Namport 50 000 Limited quay walls and depth at berth

Tanzania Dar es Salaam Tanzania Port Authority,

TICS 250 000 Need more off-site storage of containers

In terms of bulk ports there are very few ports in sub-Saharan Africa that focus on dry bulk products rather than on general cargo.

Thus it tends to be that bulk terminals are relatively small and placed within the general break-bulk cargo and container berths.

This is not expected to continue especially in Southern and Eastern Africa due to the need to export large quantities of mineral

products, especially to the East.

For this reason it is important that new projects be developed to handle large volumes of mineral exports and especially in the case

of Mozambique, Tanzania and possibly Angola new projects be carefully considered similar to existing bulk ports such as Richards

Bay and Saldanha. The table below summarises the design capacity and current throughput of the most significant ports in the

region in terms of bulk and break bulk.

Country Port Design Capacity

(Mtpa)

Current Throughput

(Mtpa)

Mozambique Maputo 12 8

Mozambique Matola 6 6

Mozambique Beira 5 2.8

Mozambique Nacala 1 0.7

Angola Lobito 1.2 1.2

Angola Luanda 2 ± 2

Namibia Walvis Bay 5 5

Tanzania Dar es Salaam 8 7.4

Tanzania Mtwara 0.20 0.09

Madagascar* Toamasina - 0.5

Mauritius* Port Louis - 7.07

Key African Ports – Bulk/Break Bulk capacity and current throughput


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2.3 PIPELINES

With the exclusion of South African pipelines there are only four existing pipelines of significance within the SADC region. The

following map indicates the location of the four pipelines, (two relatively short pipelines in Angola with a total length of less than

90km are not shown):

Figure 5: Current pipelines within the SADC Source: www.theodora.com/pipelines


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Based on the Regional Assessment Services for Rail Networks, Ports and Pipelines Study (2015), the specifications and capacity of

the existing pipelines are listed below.

No Pipeline Start End

Diameter Length Capacity

(inches) (km) (million

m³/year)

1 Tazama Crude Pipeline Dar es Salaam Ndola 8 & 12 1 700 1.3

2 Songas Gas Pipeline Songo – Songo Dar es Salaam 16 210 1 500

3 Beira – Feruka – Msasa Product Pipeline Beira Feruka 10 300

2 Feruka Msasa 8 210

4 Temane – Secunda Gas Pipeline Temane Secunda 26 865 3 800

5 Mtwara – Dar es Salaam Gas Pipeline Mtwara Dar es Salaam 36 500 8 000

6 Mombasa – Kisumu Product Pipeline

Mombasa Nairobi 14 450 7.7

Nairobi Eldoret 14 325 1.93

Nairobi Eldoret 08-Jun 325 3.3

Sinendet Kisumu 6 121 0.9

7 West Coast Crude Oil Pipeline Ganga Gas Fields Libreville - 450 14

8 Libreville – Owendo Gas Pipeline Libreville Gamba - - 1 250

Capacity of current pipelines within SADC

MOZAMBIQUE AND ZIMBABWE

• The Beira–Feruka–Msasa petroleum products pipeline runs from the port of Beira in Mozambique to Msasa, which is

located near Harare. Ownership of the pipeline is shared by Companhia do Pipeline Mozambique-Zimbabwe (CPMZ),

National Oil Infrastructure Company of Zimbabwe (NOIC) and Lonrho.

• It is a 10” pipeline, approximately 300 km long and transports the following refined petroleum products in batches:

o Gasoline

o Diesel

o Ethanol

o Kerosene / Jet A1

o Paraffin

TANZANIA AND ZAMBIA

• The Tazama Pipeline is co-owned by the governments of Zambia and Tanzania. It is an 8 – 12” pipeline,

approximately 1 700 km long and transports crude oil only.

• It terminates at the Indeni Refinery in Ndola (Zambia), where refined product is stored and distributed

throughout Zambia via third party oil marketing companies.

• The Tazama Crude Oil Pipeline had a design capacity of 1.3 million m³/year but is 46 years old and known to be in

poor condition.

• Pipeline leaks and mechanical failures in recent years have disrupted the flow of product to the Indeni Refinery and it

has not transported more than 1.0 million m³/year.

MOZAMBIQUE AND SOUTH AFRICA

• The 865km Sasol gas transmission 26” pipeline runs from Mozambique to Secunda, for the transmission of

natural gas to its Secunda processing plant.


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• The length of the pipeline on the South African side is 345km and 520km in Mozambique.

• The gas is sourced from the Pande and Temane Gas Fields in Mozambique.

• The pipeline is currently operating at or close to its design capacity of 3.8 billion m³/year

• During 2010, construction on a new compressor station was completed at Komatipoort on the border of

Mozambique and South Africa.

http://www.sunbirdenergy.com.au/southern-african-gas-market.html

TANZANIA

• The Songo Songo to Dar es Salaam Pipeline is owned and operated by the PanAfrican Energy and Songas

partnership.

• It is a 16” pipeline with a length of 210 km.

• It is fully operational and assumed to be in acceptable condition from an integrity perspective

and is currently operating at or close to its design capacity of 1.5 billion m³/year.

• The Mtwara to Dar es Salaam Gas Pipeline is expected to be completed early 2015.

• It is being constructed by the Tanzanian Petroleum Development Corporation.

• It is a 36” pipeline with a length of 500km. It has a 24” spur to collect additional gas from Songo Songo Island.

ANGOLA

There are two relatively short gas pipelines (not listed on the map):

LUANDA FEED PIPELINES

• A number of pipelines have been constructed to inter-connect a marine terminal (known as Temar), Luanda

Refinery and a number of storage depots to the north east of Luanda Centre IBV5 to Luanda Airport Pipeline

• A pipeline runs from IBV5, a storage depot near Luanda Refinery, to Luanda Quatro de Fevereiro

• International Airport. This pipeline, constructed in 2004, is 30km long, 10” diameter and transports

Jet A1.6


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3. OVERVIEW OF REGIONAL CORRIDOR DEVELOPMENT STRATEGIES

3.1 KEY ISSUES AND TRENDS HAMPERING DEVELOPMENT

Some key issues, developments, and trends were identified which may have a direct influence on planning, prioritization, and

future sustainability of the various elements of the regional network, particularly with respect to major capital intensive

infrastructure projects:

LACK OF COORDINATION

• Difficult to coordinate large regional transport infrastructure projects due to the over border nature of the types of

projects.

• Challenging to align priorities, funding, planning and legalities of each country’s involvement.

MANAGING INTERFACES

• The over border nature of regional corridors can lead to significant design and technology interfaces that must be

addressed in the most effective way.

• Project planners and decision-makers must carefully appraise the options for addressing such issues.

DUPLICATION OF STUDIES

• A number of studies based on the same project performed by different institutes.

• Beneficial to update a study rather than perform a new study.

LACK OF UNDERSTANDING OF THE PPP PROCESS

• It is assumed that most new infrastructure projects will be privately financed despite recent failures, particularly in

the rail sector.

• In many cases, the role and ongoing participation of the Government, including the provision of guarantees, risk

sharing, and necessary performance monitoring or regulation is not fully understood.

DEFINITION OF REGIONAL CORRIDORS

• Disagreements on the definition and purpose of regional corridors.

CONTINUED MODAL SHIFT TO ROAD

• Poor reliability and low traffic density of rail services drives cargo onto roads, preventing shippers from selecting rail

as the preferred mode.

INCREASING HAULAGE COSTS

• Road transport prices are higher than necessary due to external influences such as regulatory requirements that

cause low vehicle utilisation; empty backhaul; delays at ports, border posts and in-country customs clearance’; and

significant trade imbalances on most corridors.

• Higher transport prices can double the price of commodities.


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3.2 LESSONS LEARNED

The lessons learnt from various studies with regards to developments and operations within the region are summarised below:

• Many of the regional railway systems in Africa are not functioning as they should, in virtually all respects: - poor

reliability, high accident and failure rates, and high costs and low volumes. The railways are sometimes operating at a

loss and are not financially sustainable. The reasons for this includes the initial loss of volumes and income from road

transport deregulation, followed by lack of investment and deferred maintenance, which led to declining reliability

and further loss of traffic. Paradoxically, the regional railways will all have to substantially increase their freight

volumes in order to become viable. In order to recapture substantial volumes from roads, railways would have to

focus on delivering better services to existing rail customers and build new share of the future market. The regional

rail systems will also require much improved reliability and investment.

• In reviewing trade and transport facilitation, it emerged that borders are a critical factor in time spent and cost of

transport. As a result, attention has been turned to integrated or collaborative border management—developing a

clearance system that addresses the coordination of all agencies with as many interventions as possible being done in

parallel.

• Though roads in the region generally have excess capacity, lack of maintenance due to insufficient funds slows traffic

and leads to higher vehicle repair costs. Roads also suffer most from frequent stops for weighbridges, customs check

points, police check points, road taxes, etc.

• A further consideration is that economic and social factors in many countries inevitably place a constraint on their

ability to implement a wide range of different PPPs. This is especially true of more sophisticated PPPs, such as road

build-operate-transfer schemes, which are dependent on minimum traffic levels and widespread road user ability and

willingness to pay. In countries with low vehicle populations and thin traffic flows, toll roads are unlikely to be an

option for several years. This does not prevent such countries from making use of innovative and less complicated

alternatives.

• The analysis highlights that there is a strong correlation between the existence of a formal PPP policy and the number

of PPP projects. The adoption of a policy is an expression of the seriousness of a government’s intent to pursue PPP

options. It sends a strong signal to the private sector that a government is committed to PPP solutions and serves to

stimulate investors‟ interest and risk appetite.

• The existence of transparent and predictable procedures (e.g. PPP-type procurement rules) is a further factor that

contributes positively towards investors‟ risk perceptions. It influences investors‟ pricing of risk, as it provides

assurances that projects are well-conceived and have been thoroughly assessed for financial feasibility, and that

governments are committed to their implementation. Thus, it enables states to procure at lower costs.

3.3 OVERVIEW OF SADC CORRIDORS

Corridors are paths connecting a number of core origin and destination points within Southern and East Africa and on these

connections flow a number of different commodities depending on the underlying economies of the corridor.

The Southern African Development Community (SADC) is a socio-economic organisation that comprises 15 member states. There

are 18 major transportation corridors in the SADC region illustrated below.


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Regional Corridors and freight infrastructure

TRANS KALAHARI CORRIDOR

The Trans Kalahari Corridor is connected from the Port of Walvis Bay to Gobabis, via Windhoek and stretches over a distance of

644km, where transhipment facilities are available, and then continues from Lobatse in Botswana by road. A tarred road links the

Port of Walvis Bay with Botswana and Gauteng, South Africa and stretches over 1900km. It provides the most direct road route

between Gauteng in South Africa and Windhoek and Walvis Bay in Namibia and links Botswana with the alternative ports of Durban

and Walvis Bay. This corridor was developed as an alternative to the 400km


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longer Upington route, and provides access to a west coast port for South Africa.

The Trans-Kalahari Corridor (TKC) is complemented by the Maputo Corridor on the east coast of Africa, thus forming a transport

corridor over the entire breadth of southern Africa serving as an east-west connector for international and domestic traffic. With

the Maputo Corridor, it forms a coast to coast link.

A feasibility study is currently being conducted on a Trans Kalahari Railway connecting Gauteng, Botswana and Namibia by rail to

the Port of Walvis Bay. It is based on high global demand and resulting high prices for minerals, particularly Botswana coal, and

container and possibly automobile transit from the Gauteng to/from Trans-Atlantic markets.

TRANS CAPRIVI CORRIDOR

This corridor is also known as the Walvis Bay-Ndola-Lubumbashi Development Corridor. The railway line is connected from the Port

of Walvis Bay to Grootfontein and stretches over a distance of 626km, where transhipment facilities are available, and then

continues in Livingstone, Zambia.

It provides a direct road link between Windhoek and the Port of Walvis Bay to/from the SADC region via Katima Mulilo, linking with

the copper belt in Zambia and southern DRC. It also serves as the ‘western gateway’ to SADC for trade with the Atlantic region

linking to the North South Corridor.

The Namibian Railway was constructed between 1897 and 1930. The only railway cross border connection is to South Africa on

Namibia’s southern border. The feasibility study of a Northern Extension of the Railway from Tsumeb to Oshikango was completed

in 1999. There has been discussion on extending it for 5 kilometres into Angola, thus allowing border clearance on the railway

which would be a simpler, faster process than that at the road facility. A feasibility study in Angola is currently exploring a

connection between the Namibian railway extension and the Angolan line between the port of Namibe and Menongue in the

southeast.

TRANS CUNENE CORRIDOR

The Trans Cunene Corridor connects central and southern Angola to northern Namibia and the Port of Walvis Bay. Provides the

only operational, all year land transport link between the SADC states and Angola. This corridor has become increasingly important

because of the congestion in the Port of Luanda, and the use of Walvis Bay and South African ports as alternatives for international

imports.

The railway line is connected from the Port of Walvis Bay to Ondangwa and stretches over a distance of 905km. The construction

of the line from Ondangwa to Oshikango was completed at the end of 2011. The Trans Cunene Corridor links Walvis Bay with

southern Angola up to Lubango, over a distance of 1 600km, and extends north to Luanda totaling 2 300km in length.

Walvis Bay Port has significant spare capacity to deal with increased Angolan traffic. Namibian rail extension to the border at

Oshikango has been completed. A feasibility study is underway for the construction of a connection from the border to the Angolan

Namibe railway which is currently not connected to the rest of the Angolan network. A second border transfer point is being

developed rapidly at Katwitwi.

TRANS ORANJE CORRIDOR

The Trans-Oranje Corridor (previously known as the Southern Extension) is a tarred road linking the Ports of Walvis Bay and

Lüderitz with the Northern Cape Province of South Africa. The corridor is complemented by a railway line from the Port of Lüderitz

extending southwards to the Northern Cape Province via Upington towards Port Elizabeth, Cape Town and Johannesburg.

Construction on the 40km railway line extension between Aus and Lüderitz was completed in 2010, thus providing a rail link from

the Port of Lüderitz to the Corridor.


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NAMIBE CORRIDOR

The Port of Namibe was developed for the export of iron ore from the Cassinga mines in Angola. There have been numerous

initiatives to reopen the mines and repair the rail connection to the mine. There are no other known major mineral deposits that

would be served by this corridor. The intent is to eventually link the Namibe rail line to the TransNamib rail network.

The original railway line was opened in 1923 having a length of 756km. In order to transport iron ore from Cassinga region

through the Moçâmedes Railways line, the line also had two branch lines, to Jamba (17km) and to Tchamutete (96km) built in the

60’s, linking the respective mines to the main CFM line. The current total route distance is 907km.

Rehabilitation of the Namibe - Menongue section (756km), including the Jamba and Tchamutete branch lines (115km) was

completed in 2011.

LOBITO CORRIDOR

Lobito Port serves central Angola and the DRC and Zambian copper belts via the Benguela Railway. The railway was closed in

1975, but has been refurbished and reinstated again up to the Angolan border. The section to the DRC border at Luau has been

rebuilt recently with Chinese assistance. The railway line within DRC through to Kolwezi is still not operational and needs extensive

rehabilitation.

The Corridor is managed by Benguela Railways (Caminhos de Ferro de Benguela - CFB).The corridor links the Port of Lobito with

the border town of Dilolo in the DRC, and stretches further through the DRC via the SNCC system to the copper belt and the

southern African railway network. Strategically it is an important corridor for Southern Africa as it has major potential to facilitate

the export of bulk commodities from the mineral rich Copper belt of Southern DRC and Northern Zambia. Lobito Port consists of 2

quays with 6 berths, 10.5m deep. Plans are in place for upgrade of the port facilities.

LUANDA CORRIDOR

The Port of Luanda is the main Angolan port, connected by road and rail to the agricultural region of Malange and also the

important diamond mining areas to the north east with continuation into DRC.

The Malange Corridor development initiative is led by the Government of Angola and follows the Luanda–Ndalatando– Malange

route. The corridor is also being planned to link the mineral-rich areas in Angola with the Port of Luanda (Malange Corridor) and

eventually Namibe Port (Namibe Corridor). The Malange initiative will include development of the intermodal infrastructure

connections at the Port of Luanda, reorganization of the maritime terminal, modernization of the technical nautical services units,

modernization of navigational aids, and development of a dry port in Viana, on the western outskirts of Luanda.

The railway line and road to Malange, the capital of the province of Malange, has been extensively rehabilitated by Chinese firms.

The construction of this railway link to the port will most probably motivate transporters to rather use the railways as a means of

transport instead of road trucks. Angola’s northwest has rich mineral potential, including copper, silver, bauxite, mercury, lead,

granite and mineral water. The Luanda Railways (Caminhos de Ferror de Luanda (CFL) joins Luanda to the Malanje agricultural

(sugar) and mining areas in northern central Angola, from its terminal at the Atlantic Port of Luanda, the railway heads halfway

inland towards Eastern Angola.

BAS CONGO CORRIDOR

The Bas Congo Corridor consists of a rail and road corridor connecting the Matadi Port to Kinshasa. The line was refurbished 30

years ago and is still in a reasonable condition. Most of the traffic is currently conveyed by road.

The Matadi–Kinshasa Railway is a railway located in the Bas-Congo Province linking the Port of Matadi to Kinshasa, the capital of

Democratic Republic of the Congo and is currently operated and managed by SCTP. The SCTP rail network is not linked by rail to

the SNCC rail network.


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The line is a single-track line with road access at four points. Similar to the SNCC railway, most transporters choose road transport

to that of rail. This is especially true along the Matadi-Kinshasa railway, because the road running parallel to the rail has been

upgraded and provides a more reliable service. This rail link is the natural transport mode for timber exports and other bulk traffic

that is not time sensitive, including imports of general commodities to the city of Kinshasa

CONGO CORRIDOR

The country's total rail track length is 895km, all Cape Gauge. The Congo Corridor has two railway sections:

East-West Section: Pointe Noire – Brazzaville (Mainline) The Congo Ocean Railway (COR; French: Chemin de fer

Congo- Océan, CFCO) is regarded as the mainline section and links the Atlantic port of Pointe-Noire with Brazzaville

stretching a distance of 510 kilometres. To relieve congestion on this stretch, a 91km realignment was done between

Bilinga and Loubomo and added as an alternative detour over this section.

North-South Section: Mont Belo – Mbinda Section. The North-South section is also known as the Comilog Line.

In terms of commodities transported, petroleum production, forestry, and agriculture are the main economic activities in the

Republic of Congo. Petroleum production supplies a major share of government revenues and exports. Domestic food production

does not meet current national demand, and food must be imported in large quantities. The major subsistence crops are cassava,

rice, corn, and vegetables. Sugarcane, cocoa, and coffee, raised primarily on plantations, are important export crops, as are

peanuts, palm products, and tobacco. Lumber and plywood are also important exports, as are diamonds.

MAPUTO CORRIDOR

The Maputo Corridor is generally seen as the most successful example of the ‘development corridor’ approach in southern Africa,

as it has attracted significant investment in both industrial and infrastructure projects, and because of the successful establishment

and operation of the Maputo Corridor Logistics Initiative (MCLI) – a private sector sponsored corridor management and investment

promotion ‘facilitator’. The core elements of the corridor consist of the road and rail links to South Africa and the ports of Maputo /

Matola, supplemented by the links to Swaziland and Zimbabwe. Besides serving the primary Mozambique industrial centre and the

capital of Maputo, the corridor has a highly productive hinterland, including the Mpumalanga province in South Africa, and

stretching as far as Gauteng and the possibility of future coal exports from Botswana.

The 600km railway service along the Maputo Corridor from Gauteng to the port is mainly operated by TFR, which controls 85% of

the length, with the last 80km within Mozambique operated by CFM. The railway is electrified on the South African side, switching

to diesel-electric in Mozambique. The upgrading of the Mozambican side was completed during 2009, allowing 60 wagon trains

with 20-ton axle loads to be used.

LIMPOPO CORRIDOR

The Limpopo line is a spatial initiative which connects Zimbabwe to Mozambique as a development project between the two

countries that ensures them access to the sea. The line runs between South Mozambique to the port of Maputo. At its peak, the

Limpopo line handled about 2.1 million tons of transit freight and provided Zimbabwe with a shorter route to the sea.

The Limpopo Railway line has been concessioned (along with the Goba line and the marshalling yards at Maputo Port) to Consortia

2000. The rehabilitation of the road network running parallel to this railway line. A further road linkage between the Maputo

Development Corridor and the Xai Xai Pafuri route. The current proposal is that the existing route from Moamba to Sabie to Macia

be rehabilitated and/or upgraded.

GOBA CORRIDOR

The Goba corridor links Swaziland to Mozambique and is considered as an import and export route via the port of Maputo. The

Goba line is around 226km long and links the Matsapa industrial park and Maputo. It has capacity for trains with a maximum of 50

trucks travelling at speeds of between 50 and 60km per hour. According to Swaziland Railway Company, the Goba line is in good

condition both on the Swazi and Mozambican sides, as a result of recent repairs. Swaziland Railways has spent over 125 million

Euros in the refurbishment of the Mpaka-Goba railway corridor.


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Originally the Goba line had been used to carry sugar produced in Swaziland to the port of Maputo, with volumes of between 200

000 and 240 000 tons per annum, as well as to import most of the goods the country needs.

On SR side the line was upgraded in 2004 from Matsapha to Siweni. The upgrade was the replacement of wooden sleepers by

concrete sleepers and the continuous welding of the rail. It also involved strengthening of culverts and re- profiling the used rail

and where necessary the formation was strengthened.

NORTH SOUTH CORRIDOR

The North South Corridor Links SADC countries as the prime regional trade route, providing connections to all the regional corridors

and ports allowing for flexibility and competition. Extends from DRC and Tanzania in the north, through Zambia and alternative

routes through Zimbabwe and Botswana, to Gauteng and the Port of Durban.

The North South Corridor serves as the main trade route for the SADC region, connecting the main economic centres, regional

ports and linking all the regional development and transport corridors. The North South corridor carries virtually all the regional

trade between the southern African countries, and also provides access to alternative routes and ports for international trade for

the land locked countries.

The definition of the NS corridor has been limited to the following, from Durban to Gauteng in the south extending to Kolwezi in

the north:

• The road from Durban to Gauteng to Beit Bridge to Harare to Chirundu to Lusaka to Ndola to Kasumbulesa to

Lubumbashi to Kolwezi.

• The alternative road route from Gauteng to Botswana (Martins Drift or Pioneer Gate) to Kazungula to Victoria Falls to

Lusaka.

• The alternative road from Beit Bridge to Bulawayo to Victoria Falls to Victoria Falls

• The road from Durban to Gauteng to Beit Bridge to Bulawayo to Victoria Falls to Victoria Falls

• The rail route from Durban to Gauteng to Beit Bridge to Bulawayo, to Victoria Falls to Lusaka to Kapiri Mposhi to

Sakania to Lubumbashi to Kolwezi.

• The alternative rail route from Gauteng through Botswana to Bulawayo

• The road route from Beit Bridge to Harare to Tete in Mozambique to Blantyre in Malawi

BEIRA CORRIDOR

The Beira Corridor Authority was established as a state owned entity to implement the project, supported by the Nordic funding

agencies, with a 10 year budget of US$450 million. A private sector business promotion group was also set up in 1985, the Beira

Corridor Group (BCG), based in Harare, with similar structure and objectives to those of the later Maputo Corridor Logistics

Initiative. This was a successful structure for the reconstruction and revitalization of the Beira Corridor (only the Zimbabwe leg),

and has been partly repeated for the Maputo Corridor, but not elsewhere. The authority was closed at the completion of the Nordic

assistance project in 1996, and the BCG carried on under a different name for some years, but eventually closed due to the

deteriorating economic situation in Zimbabwe and lack of support.

The port of Beira serves as the main port for Malawi’s international trade, but the railway link (originally damaged by flood)

remains closed despite the recent reopening of the Sena line to Moatize, and there seems to be no agreed program or plan for

reopening this strategic link (originally damage by flood). Transport between the port of Beira and Malawi is by road via Tete, at a

much higher cost than could be achieved with the shorter rail route.

The main operational constraint to increase trade and transport volumes along the corridor has been the limited depth of the port

due to siltation and lack of maintenance dredging. This has given the port a poor reputation despite its major advantage of having

a large captive hinterland and being about 400km closer by road to the copper belt than any other port.


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NACALA CORRIDOR

The Nacala Corridor transport system was initially established to serve the northern Mozambique agricultural sector with a railway

link from Lichinga, through Cuamba and Nampula to the port of Mozambique.

In an effort to improve the transport infrastructure, the governments of Mozambique and Malawi decided to concession both

railway systems and the port of Nacala to a private sector operator, with the expectation that this would motivate the financing of

the reconstruction of the 77km Cuamba to Entre Lagos link and the Lichinga line.

The Port of Nacala is located in a protected bay close to deep water, served by road and rail in northern Mozambique – Cuamba

and Lichinga, with a rail connection to Malawi, extending to Chipata in Zambia.

Looking at the current demand for rail cargo, there is more transport of imported and processed goods from the Port of Nacala to

the inland, while transport of goods for export from the inland (domestic resource and inland countries) is relatively less, with a

proportional comparison of roughly 75% to 25%. There is a future demand for coal transport from Tete Province via the port of

Nacala that would require a rail line extension between Moatize and the rail network in Malawi.

TAZARA CORRIDOR

The TAZARA Corridor comprises the following infrastructure:

• The Port of Dar es Salaam

• The TAZARA rail line from the port to Kapiri Mposhi in Zambia where it joins Railway Services of Zambia, the

concession, south to Lusaka and northwest to the Copper Belt and to the Democratic Republic of the Congo (DRC)

where it connects to the Congolese Railway, SNCC

• The TANZAM road that follows much the same route as the TAZARA rail, and the road that runs from Mbeya into

Malawi at Songwe, along the lakeshore from Karonga to Chiweta and inland to Lilongwe

• The TAZAMA oil pipeline, which runs from the Port of Dar es Salaam to the Indeni Refinery at Ndola, Zambia

• The road from Kasama to the Port of Mpulungu on Lake Tanganyika, providing for the transport of goods from

Zambia to Rwanda, Burundi, and the eastern part of the DRC.

It is supported by the border posts at Kasumulu/Songwe, Tunduma/Nakonde, and Kasumbulesa/DRC; the Malawi Cargo Centres

which operates dry port facilities at Dar es Salaam Port and Mbeya; Zamcargo which consolidates imports and exports for Zambia

at Dar es Salaam Port; and Malawi Lake Services - originally envisioned as part of the corridor in Malawi, but which has not played

a significant role to-date, despite investments and its concession. Malawi Lake Services is now undergoing a second attempt at a

concession.

TAZARA rail is 1860km to Kapiri Mposhi where it meets Railway Services of Zambia. Capacity is 5 million tons, but it currently

handles about 12% of that due to lack of locomotive and wagon availability. The TAZARA railway is jointly owned and managed by

the Governments of Tanzania and Zambia. The 1860km railway line from Dar es Salaam to Kapiri Mposhi in Zambia was funded

and built by the People’s Republic of China (PRC) in the period 1970 to 1976. The total cost of the initial construction, funded via

an interest-free loan, was US$ 500 million.

CENTRAL CORRIDOR

The Central Corridor is based on a rail link between Tanzania and Zambia and is also served by an oil pipeline between the two

countries and the main road connection from Tanzania to South Africa through Zambia and Botswana. Mineral development served

by the corridor in Tanzania is restricted to smaller gold deposits and the coal areas proposed to be linked to the Mtwara Corridor.

The Government of Tanzania has focused on developing the Central Development Corridor (CDC, or Central Corridor), which is

planned to cover the geographical area between Dar es Salaam Port in Tanzania and Lake Kivu in Rwanda. The objective is to

create an economic growth region, which will stimulate increased cross-border and international trade and investment especially in

physical infrastructure, tourism, mining, agriculture, and manufacturing. This will link the road and the 1000 mm railway systems of


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central and northern Tanzania with the port of Dar es Salaam, also serving the Lakes Tanganyika, and Victoria by road and rail,

Rwanda, Burundi, eastern DRC and Uganda, by road and lake ferry.

The Central Corridor railway system operates within Tanzania as the Tanzania Railways Limited, (TRL) and the concession operator

is Rites from India. The railway assets are controlled by RAHCO, which is a state owned company. The system consists of about

2600km of 1000 mm gauge track, generally light 30kg/m rail with 15t axle loads.

LAPSSET CORRIDOR

A master plan for the LAPSSET project (Lamu Port, Southern Sudan, and Ethiopia Multimodal Transport Corridor) was developed

that would include oil exports from Uganda (up to an estimated 7mtpa) and iron ore exports from Mt Kodo in the DRC. The latter

would also include a dedicated rail link to accommodate the large volumes (up to 50mtpa).

A new container terminal at Lamu is included to serve southern Sudan, Ethiopia, and increased demand from the northern corridor,

supplementing the Mombasa port. The MoUs for the proposed railway and pipeline were signed between the Government of Kenya

and Ethiopia and South Sudan. The construction of 3 new container berths with access facilities was launched in September 2012.

Currently there are no major port operations at the port of Lamu in the Northern part of Kenya. With the growing volumes and

congestion in Mombasa, Lamu Port could create an alternative entry point, especially for southern Sudan and Ethiopia.

NORTHERN CORRIDOR

This Northern Corridor serves trade among Kenya, Uganda, Rwanda, and Burundi and with the port of Mombasa. It links to routes

to DRC, Southern Sudan, and Ethiopia. It is road and rail from Mombasa to Kampala and the rest is road only.

The total length of the Uganda Railway network is 1 241km. The length of the railway line from Mombasa to Kampala is 1 330km,

operated by Rift Valley Railway (RVR). Three ICDs at Nairobi, Kisumu and Eldoret are underutilized because of the limited cargo on

the railway. The northern corridor rail system operates within Kenya and Uganda as a narrow gauge (1000mm) system, compatible

with the Tanzania Railway Limited (TRL) system on the central corridor in Tanzania. The line extends from the port of Mombasa to

Nairobi, and further to Malaba, connecting to the Ugandan rail system serving Kampala and on to Kasese close to the DRC border.

The design of a new standard gauge railway is being considered and the transaction for advisory services has already been put out

to tender by Kenya Railways Corporation. The project will rely on private sector investment, and be developed.

The proposed new railway will have to follow a new alignment, and it will not be an upgrade of the existing railway, which will be

required to continue operations during the construction phase. It is therefore likely that there will be competition between the new

and the old system.

MTWARA CORRIDOR

The Port of Mtwara is located in a natural bay in southern Tanzania, about 50km north of the Mozambique border. It extends

westwards via mostly unpaved roads to Tunduru, Songea, by ferry through Lake Malawi and road to Mzuzu. There is a possible

extension to eastern Zambia.

The Mtwara Corridor is located in the northern most part of Mozambique and the southernmost part of Tanzania, linked to the sea

port of Mtwara, located in Tanzania, and extending east towards Malawi and north and south of the Rovuma River, which serves as

the border between Mozambique and Tanzania. The region has rich agricultural and mining potential, but has been relatively

isolated for many years because it is remote from the main regional economic centres with poorly developed transport

infrastructure.

There is presently no rail system serving the Mtwara Corridor. A narrow gauge system served the agricultural sector many years

ago, but was unsuccessful and was uplifted. There have been some major and ambitious proposed upgrades to the roads, bridges,

ferry services and a minerals based railway over a distance of more than 800km to the west of Mtwara port, near Lake Malawi

centred on the coal fields in the Mchuchuma-Kateweka area, and iron ore deposits at Liganga. Unless justified by the SDI proposed

anchor projects, the construction of an Mtwara Corridor railway, and


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associated port development, cannot be economically viable. It is generally considered that a new railway service needs to have a

minimum of the order of 5 to 10 mtpa to be viable – depending on the tariffs and the value of the goods transported.

3.3.1 SALIENT ISSUES NEGATIVELY IMPACTING ON CORRIDOR OPERATIONS

Reflected in the Regional Infrastructure Development Master Plan (Status Quo):

RAILWAYS

Poor reliability, high accident and failure rates

Theft of operating equipment

Poor locomotive and wagon availability

High operating costs and low freight volumes, thus not financially sustainable

Road transport competition

Gauge and method of locomotive propulsion not standardised

Lack of continuity and interregional connectivity

Lack of maintenance and investment

Damage as result of conflict

Operate below ‘design capacities’ due to poor track condition

ROAD NETWORKS

High transport costs

Lack of – and high cost of maintenance

Poor road conditions

Missing links between key origins and destinations

Occasional congestion between major nodes

Delays at cities where by-passes have not yet been built

Capacity and safety constraints due to lack of climbing lanes

Delays at border posts

High accident rates (road safety)

PORTS

Poor maintenance and lack of funding

Most currently operate close to capacity

Poor modal interface management

Poor materials handling capabilities, equipment and related infrastructure

Trade and transport facilitation delays

Poor location and layout hampers expansion opportunities

Poor access

Insufficient berths

Depth constraint

Congestion

Poor condition

AVIATION TRANSPORT SECTOR

Inadequate runways and terminals

Deficient navigation and traffic control equipment

Skills and capacity constraints

Lack of maintenance

Need for modernisation


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3.4 CORRIDOR DEVELOPMENTS AND PLANS

The list provides the various development plans across corridors relevant to Transnet, and indicates possible

opportunities for investment.

CORRIDOR DEVELOPMENT STRATEGIES AND PLANS

NORTH-SOUTH

• Establishment of a one stop border post at Beit Bridge

• Upgrading of the road between Beit Bridge, Harare and Chirundu

• Upgrading of the Plumtree to Mutare road – funded by DBSA

• Construction of the Kazungula Bridge across the Zambezi – Botswana, Zambia

• Establishment of a railway Joint Operating Centre at Bulawayo for the North-South Corridor

• Recapitalisation of NRZ, study funded by DBSA – likely phased corridor approach

• Recapitalisation of Zambia Railways, €120 million infrastructure Eurobond, including US$51 million signalling contract

• Upgrading and repair of the Serenje Nakonde road in Zambia (Dar es Salaam corridor)

• Development of a new one stop border post and road between Zambia and DRC to relieve congestion at

Kasumbalesa

• Revival of SNCC railway in the DRC, US$280 million World Bank funding

MAPUTO

• Expansion of Matola terminal to > 25mtpa, coal, magnetite, iron ore – Grindrod/Vitol.

• Upgrading of Ressano Garcia Maputo railway – doubling, electrification

• Expansion of Maputo port terminals – Grindrod/DPW

• Construction and upgrading of the rail link from Davel to Phuzumoya in Swaziland – R13,6 billion (excluding rolling

stock). This will also create an alternative route between South Africa and Maputo via the Goba line

BOTSWANA COAL EXPORTS

• Increased coal exports through the existing rail network via Mahikeng, to stimulate mining development in Botswana

• Proposed construction of a Botswana to Lephalale rail link, connecting to an extension of the heavy haul coal export

line to the Waterberg

• Proposed development of the Trans-Kalahari railway to a new port at Walvis Bay for coal exports from Botswana.

This is a long- term project that will require major take or pay supply contracts

• Possible routing of Botswana’s northern coal exports through Zimbabwe to Matola/Techobanine

• Port developments at Techobanine considered for export of Botswana coal.

BEIRA

• Upgrading of the Beira Machipanda railway, being studied by MRGP, implemented by CFM, to be coordinated with

NRZ to Harare

• Further upgrading of the Sena railway to Moatize from 6mtpa to 12mtpa and later to 18mtpa – CFM

• Reopening of the railway link from Sena/Mutare to Limbe/ Blantyre

• Development of a new coal terminal at Beira port (CFM/ESSAR) – severely delayed.

• Development of a deep sea bulk terminal at Savane, 30km north of Beira – ESSAR has rights.

• Expansion of Beira port terminal (CFM/Cornelder)

• Construction of a new coal export railway from Moatize 500km to a new port at Macuse – tender won by Ital – Thai,

capex increased from US$3,5 billion to US$5 billion


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NACALA

• Construction of a new coal terminal at Nacala to handle cape size vessels – Vale

• Expansion of Nacala port terminals – study by JICA

• Rehabilitation of Cuambo to Lichinga railway – CFM

• Development of an industrial complex at Liwonde in Malawi

DAR ES SALAAM

• Revival of the TAZARA railway – funding not yet secured

• Redevelopment of berths 1 to 7 in Dar es Salaam port – TPA/ TMEA/DBSA

• Construction of new container terminal at berths 13 and 14 at Dar es Salaam port – TPA

• Development of inland freight terminals at Kisarawe and Isaka

• Construction of a new port at Bagamoyo linked to IDZ – TPA with Chinese funding

• Recapitalisation of TRL railway on the central corridor, US$300 million WB funding and US$137 million government

funding – TRL/WB, process commenced

• Revival of lake Victoria marine services to Uganda, linked to TRL

LOBITO

• Upgrading of Kolwezi to Dilolo railway in the DRC, being studied funded by MRGP

• Construction of the North West Rail from Chingola to Solwezi and finally to Luau in Angola,

• being developed in phases by NW railway and Grindrod. Detailed feasibility study being undertaken, subject to

customer commitments

• Upgrading of Lobito port

MTWARA

• Development of Mtwara port serves the offshore gas development in Tanzania and Mozambique.

• Construction of a new 800km railway to connect Mtwara port to coal and ore deposits in the Songea region – remains

speculative


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3.5 FORECASTED REGIONAL DEMAND

A brief overview is provided of the current and long term forecasted traffic over the corridors. The overview focuses primarily on

the railway demand within the SADC region and is inclusive of cross-border traffic from South Africa (i.e. South African, Domestic

and Export volumes are excluded).

Figure 7: Regional Demand

2013 2019

2044


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3.6 STRATEGIC RAIL PROJECTS

In 2014/2015, Transnet conducted a study on the Regional Assessment Services for Rail Networks, Ports and Pipelines which

highlights key developments within the SADC region. Based on the information from the study, a list of strategic rail projects that

present opportunity for Transnet to invest is listed below. The projects reflected are currently in concept and feasibility stage so as

to highlight larger investments required.

Multi-Criteria Assessment

The multi-criteria assessment was performed on the most recent Rail, Port and Pipeline projects in the SADC region to indicate

possible projects of interest for Transnet to initiate FER and FEL studies. Each project was matched and scored against the

following criterions:

• Capacity

Is there sufficient demand for the capacity that is to be created by the project?

• Order of Magnitude

The relative size and financial investment needed for the project?

• Political Will

Does the government of a particular country support that particular project?

• Legal Institution

Does the legal, institutional and regulatory frameworks on the corridor support project development?

• Funding

Is there funding for the project and its associated studies?

• Viable Alternatives

Are there alternative corridors competing for demand?

Each project was ranked based on the criteria mentioned above and the overall score per project determined its

importance/viability. The ranking per criteria was as follows:

Table: Multi-criteria category and scores

Score Requirements

for Capacity

Magnitude Political Will Legal

Institution

Funding Viable

Alternatives

0 No Demand Insignificant No Interest No Support No Funding High

Competition

0.25 Low Demand Small Low Interest Little Support - Medium

Competition

0.5 Low - Medium

Demand

Small -

Medium

Low - Medium

Interest

Medium

Support

Feasibility Low - Medium

Competition

0.75 Medium

Demand

Medium Medium

Interest

Good Support Bankable

Interest

Low

Competition

1 High Demand Large High Interest Excellent

Support

Construction No

Competition

The results of the multi-criteria analysis for the Rail, Port and Pipeline projects are indicated in the following tables and figures.


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Strategic Rail Projects


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3.7 STRATEGIC PORT PROJECTS

There is a substantial difference between the current capacity of many ports in Africa and the demand especially over the longer

term for import and export needs. For this reason there are a number of projects throughout Africa to develop new ports or

substantially increase the capacity of the current ports.

Below is a list of strategic port projects in various key developing economies of Africa, in the container and dry bulk markets.

Strategic Port Projects


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3.8 STRATEGIC PIPELINE PROJECTS

The list below provides Transnet with an overall view of Pipeline projects in various stages within the region. As illustrated in the

figure below, majority of the projects lie within Mozambique, Tanzania and in Kenya.

Strategic Pipeline Projects


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4. TRANSNET AFRICA STRATEGY

Strategy revenue drivers and support services Reference: Transnet Planning and Sustainability strategy session:

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