ctbl-watch - issue 25 - january 2016 · 2016 over new cargo system burundi: kenyan union warning...

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SOUTH AFRICAN REEFER SOLUTIONS EXPANDED: TARGETING CROSS BORDER TRADE TO EAST AFRICAN LANDLOCKED COUNTRIES VIA DURBAN Full Story On Page 5 CMA CGM TARGETS LAKE TANGANYIKA MARKET: RE-OPENS SERVICE TO UVIRA IN EASTERN DRC Full Story On Page 6 AFRICA CTBL-WATCH Uganda: Bill On Mombasa Port Will Create Trade Barrier ISSUE 25 | JANUARY 2016 Zimbabwe: US$2 Billion Needed To Revive NRZ Mali/Senegal Sign US$1.5b Deal With China Railway Construction 09 17 24

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Page 1: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

SOUTH AFRICAN REEFER SOLUTIONS EXPANDED:TARGETING CROSS BORDER TRADE TO EAST AFRICAN LANDLOCKED COUNTRIES VIA DURBANFull Story On Page 5

CMA CGM TARGETS LAKE TANGANYIKA MARKET:RE-OPENS SERVICE TO UVIRA IN EASTERN DRC Full Story On Page 6

AFRICACTBL-WATCH

Uganda: Bill On Mombasa Port Will Create Trade Barrier

ISSUE 25 | JANUARY 2016

Zimbabwe: US$2 Billion Needed To Revive NRZ

Mali/Senegal Sign US$1.5b Deal With China Railway Construction

09 17 24

Page 2: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

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AFRICACTBL-WATCH

ISSUE 25 | JANUARY 2015

Contents

03 | Corridor Review05 | African Group News

19 | Western Africa

07 | Eastern & Southern AfricaSouth African Reefer Solutions Expanded / CMA CGM Targets Lake Tanganyika Market

Regional: Regional Talks Create New Trade Bloc / Single Custom Territory Postponed / EAC Set For Major Trade Boost In 2016 Over New Cargo System

Burundi: Kenyan Union Warning Over Burundi Unrest

Ethiopia: Modjo-Hawassa Expressway Construction

Kenya: South Sudan Road To Be Upgraded / Probase To Tarmac Embu Roads For US$38.5 Million / US$31m For Coastal Road Link / Standard Gauge Railway Construction Project To Receive Locomotives

Kenya/Uganda: Kapchorwa-Suam Road To Boost Regional Trade

Mozambique: AfDB Gives US$300 Million For Nacala Corridor / Sena Railroad Capacity To Increase To 20 Million Tons

Mozambique/Malawi: AfDB Invests In Transformative Regional Railway & Port Infrastructure

Namibia/Zambia: Walvis Bay Exports To Increase

Rwanda: KFAED Signs US$15 Million Agreement For Road Development

Tanzania: Weigh-In-Motion [WIM] Supply & Construction / Ruhuhu Bridge Construction / TAZARA Suffers 57% Fall In Freight Traffic / New Minister Aims At More Cargo By Rail / President Suspends Rail Chief Pending Probe

Uganda: Bill On Mombasa Port Will Create Trade Barrier / Customs Clearance Automation Ranks Uganda Best In Trade / World Bank Cancels Funding For Road Construction Projects

Zambia: Ratifies WTO Trade Facilitation Agreement / Road Sector Funding Soars In 2015-2016 Toll Introduction

Zimbabwe: Zimbabwe To Construct Roads And Bridges In Caledonia / US$2 Billion Needed To Revive NRZ / Zimra To Automate Q1 2016 / Zimbabwe To Install CCTV And Scanning Devices At Border

Burkina Faso: Kaya-Dori-Gorom-Gorom-Tambao Rail Development

Cote d’Ivoire/Mali Corridor: Implementation Of Inter State Road Transport [ISRT]

Ghana: Transit Trade Dips Over Axle Load Regulations / Introducing Strategies To Reduce Road Barriers / Feasibility Tests For Boankra Port & Eastern Rail Project Completed

Ghana/Burkina Faso Corridor: Non-Tariff Barriers [NTBs] Reporting Tool Available Online

Mali/Senegal: Signs US$1.5 Billion Rail Deal With China Railway Construction

Niger: KFAED Signs KD6 Million Road Loan

Nigeria: Lagos State To Construct Roads Worth US$87 Million / Delta State To Construct And Rehabilitate Roads

Senegal: RN2 Rehabilitation & Opening Up Access To Morphil Island

Togo/Burkina Faso Corridor: Borderless Alliance Road Governance Trip

Page 3: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

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Website: www.cma-cgm.comEmail: [email protected]: @CMA_CGM_Group

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 LiabilityThe CMA CGM Group 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 the CMA CGM Group 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 Africa Marketing

Rachel Bennett Dominic Rawle

BURKINA FASO - President Roch Marc Kabore named economist Paul

Kaba Thieba as prime minister.

GHANA - The newly constructed AMERI power plant is expected

to commence commercial operations by February 2016. The power plant is expected to provide additional 250MW of power to the national grid.

GUINEA BISSAU - The Chinese ambassador in Guinea-Bissau reaffirmed

the willingness of his country to continue this year to support the Guinean government in combating poverty and hunger.

NIGER - Niger has completed changes to its electoral register

recommended by the International Organization of the Francophonie, removing a major source of tension ahead of elections next month.

NIGERIA - International Finance Corporation and Alten Middle Band

Solar One have agreed to jointly develop a 120MW solar photovoltaic power project in Kogi State.

- Chinese steel pipe manufacturer Jiangsu Yulong Group has broken ground for a major manufacturing plant in Nigeria’s Lagos Lekki free trade zone.

Western AfricaBOTSWANA - Botswana Metals has lodged three extension applications

with the Botswana Department of Mines for prospecting licences at its Maibele North nickel project.

ETHIOPIA - The government has signed a US$ 94m agreement with

Chinese State Construction Engineering Corporation that will see the construction of a 60,000 seat modern national stadium.

KENYA - The construction industry defied high interest rates to

post impressive growth. The sector grew by 14.1 per cent in the third quarter of 2015 compared to 8.8 per cent over a similar period in 2015.

MOZAMBIQUE - Ncondezi Energy announced that it has signed a binding

Joint Development Agreement with Shanghai Electric Power Company to develop the Ncondezi power project in the western Mozambican province of Tete.

SOUTH AFRICA - Coal of Africa Limited told shareholders that no binding

agreements had been entered into with Hong Kong-based Haohua Energy International for a proposed $5-million buy-in into the South African coal producer.

Eastern & Southern Africa

Events Diary

News Briefs

March 201615-17 6th African Petroleum Congress and Exhibition (Abuja, Nigeria) http://cape-africa.com/

April 201627-28 5th Mozambique Mining, Energy and Oil & Gas Conference & Exhibition (Maputo, Mozambique) http://www.informa-mea.com/agrainnovate

September 201612-16 Electra Mining 2016 (Johannesburg, South Africa) http://www.electramining.co.za/EN/Content/Pages/Home

Page 4: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

Eastern & Southern Africa

Corridor Current Situation

1 ● Kenya [Mombasa] -Great Lakes / Uganda / Rwanda / South Sudan

We are now able to offer competitive rates on heavy 20ft container rates Gross Weight [GW] up to 32T and 40ft containers with GW]below 22T for rail to ICD Embakasi following new revised rates from RVR effective 1st Jan 2016. For shipments to South Sudan the Port Of Load [POL] must collect a Letter of Indemnity [LOI] from the shipper indemnifying the Line against all extra charges incurred at the Port of Discharge [POD], Nimule border and Final Point of Destination [FPOD] before acceptance of any booking.It has now been made mandatory for all import cargo to Kenya [local] to have a Certificate of Conformity [COC]. Without a COC we will not be able to clear the cargo out of port.

2 ● Tanzania [Dar Es salaam] - Great Lakes

DRC: Roads from Dar Es Salaam to DRC [Goma / Bukavu] are in good condition and services are running well via Rwanda. We have opened Uvira via Burundi but subject to a pre confirmation with our Dar es Salaam office due to possible insecurity in Burundi.

Rwanda: Service is running very well. It is operated under SCT with efficient transit time and rates.

Burundi: Social unrest and the on-going security situation in Bujumbura and other provinces remains tense. Therefore our CTBL service with final destination in Burundi remains suspended. No bookings will be accepted to Bujumbura until further notice. We remain vigilant and will notify customers of any change.

3 ● Tanzania [Dar Es salaam] - Copper Belt

Roads through Mbeya offer an alternative to the train to Ndola. We are the only line to have an owned office in Lubumbashi which closely monitors the local situation. The corridor from Dar Es Salaam to Lusaka, Copper belt & Lubumbashi is safe and offers competitive rates and transit times. Our local agent is working with local hauliers to further improve this. With an improved ASEA TANZANIA service we offer direct weekly service from Asia to Dar Es Salaam enhancing inland solutions to Malawi and Zambia.

4 ● Mozambique Nacala Corridor New competitive rates available from Nacala to Malawi destinations.

5 ● Mozambique Beira Corridor We offer new competitive rates for 20’ Beira-Harare [Zimbabwe] by road and by rail. CMA CGM will indemnify clients from further liability should any port storage incur on the units to be railed. We also have new competitive rates on the Beira–Malawi corridor.

6 ● Mozambique Maputo Corridor Competitive solutions are available to Zimbabwe by rail from Maputo-Hwange. There is no port storage invoiced if shortage of wagons in Maputo.

7 ● S. Africa Durban New competitive rates available to Harare by road and rail-road. A new containerised rail solution is available from Kitwe in the Copperbelt region to Durban port in South Africa ideal for the movement of copper. We already have 20’ container units available in Kitwe. The new rail solution is also effective Northbound from Durban to Lusaka. We have also extended our South African inland reefer service from/to the port of Durban to Johannesburg. Extension of all other over border trucking rates.

8 ● Namibia Walvis Bay We can offer a routing solution for export CTBL cargo from Zambia to Namibia. The route along the Trans-Caprivi Corridor links Zambia with the Port of Walvis Bay via the Katima Mulilo bridge border crossing. Export solutions are available from DRC and Zambia to Walvis Bay for dry and reefer equipment. The corridor to Lusaka, Kitwe, Ndola & Lubumbashi in south DRC are running well. We also offer domestic routes to Windhoek and Otjiwarongo, Otjikoto, Oshakati, Ondangwa and Oshikango by road and rail.

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CORRIDOR REVIEW CTBL AFRICA

Page 5: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

Western Africa

Corridor Current Situation

1 ● Senegal-Mali The Dakar-Bamako corridor is now only available by road. Both our rail and rail-road corridor options for Dakar-Bamako have been closed due to a change in the governance of the railway that has affected services.

In other news we are only able to accept cargo for Southern Mali destinations. For safety reasons traffic to Northern Mali [Kignan, Ségou, Mopti, Sevaré, Gao, Kidal, Menaka, Ansongou, Tessalit, and Timbuktu] via Dakar are temporarily suspended.

2 ● Senegal-Guinea Bissau The corridor is open and running smoothly.

3 ● Cote d’Ivoire-Burkina/Mali We are pleased to continue to offer a reliable service to Burkina Faso following the recent Burkina Faso attacks.

The rail service from Abidjan is running well offering excellent transit times and no congestion. We also recommend the road option. Furthermore the Group has launched a new reefer service from Abidjan.

4 ● Ghana-Burkina The Tema-Ouagadougou corridor is open with business as usual following the recent Burkina Faso attacks. We offer the most competitive rates with excellent transit time from Asia using our AFEX service. Our expert TBL team is in place for all your booking requests.

5 ● Togo-Burkina/Niger We are pleased to continue to offer a reliable service to Burkina Faso following the recent Burkina Faso attacks.

Generally the service is running well. Thanks to good volumes and on-going negotiations with suppliers we have decreased our Ouagadougou rates from Lome. We can also offer excellent solutions from Asia on our AFEX service. Please note that the port of Lome is strict on enforcing weight regulations for trucks.

6 ● Benin-Niger Service is operating very well for Niger CTBL.

7 ● Cameroon-Chad Rail delays faced as CAMRAIL, the operator, is experiencing congestion in Douala & N’Gaoundere stations. We suggest cargo is moved via our road TBL service.

8 ● Cameroon-CAR Douala-Bangui is open on a case by case basis with agreement from our local Douala Agency. Political security is not 100% on this corridor. Please note all TBL to Bangui will be subject to Consignee signing LOI locally.

9 ● Gabon Corridor From Libreville, we serve domestic destinations by road to Franceville, Lambarene, Mouila, Bitam, Moanda, Mitzicnd Makokou.

10 ● Congo Corridor Pointe Noire-Brazzaville corridor is REOPENED. We offer an inland service from Pointe Noire to Dolisie, Brazzaville, Oyo and Ouesso.

11 ● DRC Corridor Matadi-Kinshasa service is running smoothly. New competitive rates are available.

12 ● Angola Corridor We have opened new landlocked destinations via the 4-main national ports of Luanda, Lobito, Cabinda and Namibe. We now offer the cities of Malange, Bela Vista, Catumbela, Benguela, Bahia Farta, Huambo, Lubango, Malongo, Malembo, Yema, Subantando, Buco Zau, Belize, Necuto and Lubango. All destinations are served by road on a 1-2 day transit time.

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Page 6: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

NEW: South African Reefer Solutions ExpandedTargeting Cross Border Trade To East African Landlocked Countries CMA CGM is now able to propose new reefer Through Bill of Lading [TBL] solutions for imports via Durban to Zimbabwe, Zambia, Malawi, Eastern Democratic Republic of Congo [DRC], Botswana, Lesotho and Swaziland. We can offer all-inclusive rates that include DTHC, cargo dues import, transit bond fees, use of gensets and empty returns to South Africa. For more details and a quote please contact your local CMA CGM agent.

Mutare

Harare

Gaborone

Lusaka

Lubumbashi

Blantyre

Maseru

Copperbelt

Durban

Bulawayo

Matsapha

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AFRICAN GROUP NEWSCMA CGM / DELMAS

Page 7: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

CMA CGM Targets Lake Tanganyika MarketRe-Opens Service To Uvira In Eastern DRCCMA CGM has re-opened its road service to Uvira, Democratic Republic of Congo [DRC] via Burundi on a request basis. Uvira, a city in Sud-Kivu Province, is located at the extreme north end of Lake Tanganyika. With the Burundian capital Bujumbura just on the other side of the lake, and waterway access to Tanzania as well as Zambia, Uvira has long been in a strategic location. The mountainous region of Mitumba is rich in mineral reserves and the district is the only one in DRC that neighbours 4-countries of Rwanda, Burundi, Tanzania and Zambia via the Tanganyika Lake.

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Page 8: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

East AfricaRegional Talks Create New Trade BlocEthiopia is the new member of the Northern Corridor Integration Projects [NCIP] initiative a move likely to reshape the regional economy in 2016 as well as the geopolitics as the talks that began as an infrastructure-focused programme wind up as a trading bloc.

The region, which now comprises Ethiopia, Kenya, Uganda, South Sudan, Rwanda and Uganda, has widened its scope to ensure security among member countries as well as a good political climate. Ethiopia attended all the NCIP summits as an observer for 6-years, before finally joining the initiative at the latest meeting in Kigali in December 2015.

Tanzania, Burundi and the Democratic Republic of Congo [DRC] are still observers at the summit. The DRC also plans to join the NCIP in 2016, noting that it is thrilled by the progress of the standard gauge railway. Experts say that if the SGR line is extended to the DRC through Uganda, it will be a boost to intra-regional trade.

Single Custom Territory Postponed The proposed Single Custom Territory [SCT] has been postponed to the end of Q1 2016 as a result of interconnection issues between regional systems. The SCT is a regional initiative meant to speed up the clearance of goods and quicken revenue collection.

Once launched the EAC Customs Union will create a level playing field for producers in the region by imposing uniform competition policy and law, customs procedures and external tariffs on goods imported from third countries. This will assist the region to advance its economic development and poverty reduction agenda.

EAC Set For Major Trade Boost In 2016 Over New Cargo SystemTrade within East Africa will receive a boost this year with the implementation of the cargo pre-clearance system at the port of Mombasa by the Kenya Revenue Authority [KRA]. The system came into place on January 1st allows importers to clear goods before they arrive in the country, a move expected to improve port efficiency and delivery of imports in the region. Under the system, importers can now lodge clearing documents and process them up to seven days before arrival of a vessel. It is expected to reduce container dwell time currently averaged at 5.1 days against 3.6 days in 2014.

The introduction is part of the Single Customs Territory [SCT], which provides for assessment and collection of taxes for goods at the port of entry. Importers must comply with the new import standard rules under the Pre-Export Verification of Conformity to Standards programme [PVoC]. This includes a certificate of conformity issued by Kenya Bureau of Standards appointed inspection agents, prior to loading, failure to which they will have their cargo shipped back to country of origin.

The move is aimed at curbing sub-standard goods and tax leakages as the tax man seeks to meet a revenue target of Sh1.253 trillion this financial. Pre-clearance is expected to save importers from demurrage charges, incurred after cargo overstays at the port. Intra-EAC trade is currently estimated at around US$6 billion.

[The Star 02/01/16]

NCIP FACTS - Created by presidents Yoweri Museveni [Uganda], Paul Kagame [Rwanda] and Uhuru Kenyatta [Kenya]. - NCIP initiative began more as a rebel group against the slow integration of the East African Community [EAC] projects. - Currently widening into a greater integration coalition to facilitate the competitiveness of the region in the global market. - Meets every 2-months taking direct control of initiative. - Initial decision was for the construction of a new Standard Gauge Railway [SGR] from Mombasa to Kampala, Kigali and Juba. - Website: www.nciprojects.org

SCT FACTS - In October 2013, Presidents Yoweri Museveni [Uganda], Paul Kagame [Rwanda] and Uhuru Kenyatta [Kenya] agreed to implement a Single Customs

Territory [SCT] between them as members of the East African Community. - Tanzania and Burundi followed suit at the Summit in November 2013. - The agreement removes multiple weighbridges, police and customs checks along the Mombasa-Kampala-Kigali route - To introduce computerised clearance, electronic tracking and other innovations towards free trade and a reduction of Non-Tariff Barriers [NTBs].

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EASTERN & SOUTHERN AFRICACORRIDOR & TRADE NEWS

Page 9: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

BurundiKenyan Union Warning Over Burundi UnrestThe Kenya Long Distance Truck Drivers and Allied Workers Union has warned its members against transiting into landlocked Burundi, following a spark of attacks and ongoing political unrest. The move has slowed down transportation of cargo destined for the landlocked country from Mombasa. Business in Burundi has been disrupted by chaos since April, after President Pierre Nkurunziza sought a third term in office, which he won in a disputed election in July. An average of 30 trucks transport cargo from Mombasa to Bujumbura and other parts of Burundi weekly, according to the union. This however reduced to less than five after violence broke out.

[Star 18/12/15]

MozambiqueAfDB Gives US$300 Million For Nacala Corridor The African Development Bank [AfDB] has approved US$300-million to help Brazilian mining company Vale SA finance the expansion of the Nacala logistics corridor. The Nacala corridor links areas in Zambia, Malawi and Mozambique with Nacala port on Mozambique’s Indian Ocean coast and will help Vale move coal from its Moatize coal mine in Mozambique to world markets. Japanese trading group Mitsui Co also owns a 15% stake in the Nacala corridor project.

[Mining Weekly 18/12/15]

Namibia/ZambiaWalvis Bay Exports To IncreaseZambia’s industrialisation drive is likely to increase exports through the Walvis Bay Corridor in Namibia and other corridors, a move expected to reduce Zambia’s trade deficit the country.

According to the Walvis Bay Corridor Group [WBCG] although volumes of cargo transported to and from Zambia via the corridor have increased by over 400% over the past 5-years due to improved marketing strategies, the industrialisation drive is vital in pushing exports upwards. About 25,000 tonnes of cargo was transported on a monthly basis via the route last year from about 5,000 to 7,000 tonnes recorded monthly in 2010, which represents a rise.

Walvis Bay Corridor is one of the fastest routes to the trans-Atlantic market. Of the total cargo transported through the corridor, about 75% were imports into the country while 25% were exports, an indication that Zambia remains a net importer. This trade imbalance unfortunately increases the cost of transportation and goods landed on the Zambian market.

During the period under review, the country exported copper and non-traditional exports, including timber and traditional foods and fish while it imported motor vehicles, industrial equipment and chemicals. The port, being on the western coast, is the shortest gateway. When you look at the import patterns, Zambia imports from the Far East, but has also seen more imports from the European and American markets.

[Daily Mail 15/01/16]

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Page 10: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

TanzaniaWeigh-In-Motion [WIM] Supply & ConstructionThe Tanzanian government has issued a tender for construction, supply and installation of 8-Weigh-In-Motion (WIM) Stations. The works also include extension of the approach and exit lanes by 400m to lead incoming vehicles to the weighbridge.

[UKDTI 18/01/16]

UgandaBill On Mombasa Port Will Create Trade BarrierImporters and exporters using the Northern Corridor have protested the passing of a Bill by the Mombasa County in Kenya that seeks to allow the county to collect port revenues. They say the Mombasa County Port Authority [MCPA] Bill 2014 passed on December 10, will impose double taxation on business transactions on the transit route that links Uganda, Rwanda and Burundi with the port.

The Bill, currently awaiting assent by Governor Hassan Joho, seeks to create the County Port Authority, headed by a chief executive, to manage the port and set up an electronic Advanced Shipment Information System to monitor cargo and help in revenue collection. Many businesses have termed the Bill unconstitutional. The Bill comes amid concerns at the Kenya Maritime Authority [KMA] that counties on the Northern Corridor are imposing levies that are likely to increase the cost of doing business.

Based on the 2014 figure of 24.9 million tonnes of cargo handled at the port, means that the county would earn US$1.2 billion from the levy. Traders have warned that the law will scare away users of the port, which is already facing competition from the port of Dar es Salaam, to which TradeMark East Africa, the United Kingdom’s Department for International Development [DfID] and the World Bank are funding a US$565 million upgrade. It is expected the project will boost cargo handling capacity from 14.6 million tonnes in 2013/14 to 28 million tonnes by 2020, posing serious competition to Mombasa port.

Uganda continues to maintain a dominant position as the leading transit cargo destination, accounting for nearly 77 per cent share of the total transit traffic, according to Kenya Ports Authority statistics. Overall, Uganda traffic grew from 4.9million tonnes in 2013 to 5.5million tonnes in 2014. In 2014, the port handled a total of 1-million containers against 894,000 handled in 2013. This was as a result of handling Ugandan cargo which increased by 609,000 or by 12%.

[Monitor 04/01/16]

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EASTERN & SOUTHERN AFRICACORRIDOR & TRADE NEWS

Page 11: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

Customs Clearance Automation Ranks Uganda Best In TradeThe automation of Uganda’s customs clearance system has eased cross-border trading in the region and improved the country’s global ranking. The Uganda Revenue Authority [URA] and TradeMark East Africa [TMEA] of Uganda have been rolling out a ‘Managing Compliance Programme’ which has led to increased efficiency in revenue collection. The reforms include the Authorised Economic Operator [AEO] Initiative, the Customs Management System of Automated System for Customs Data and the Electronic Cargo Tracking System [ECTS].

These reforms have led to a reduction in customs clearance time from 41 hours in 2011 to less than 24 hours in 2015. More than 20 companies that account for more than 80% of customs revenues were cleared as AEO over the course of the programme. The ECTS has led to a reduction in transit time within Ugandan borders from 8-days in 2011 to less than 2-days in 2015. This has resulted in 48% increase in customs revenues.

The electronic cargo tracking system has also led to a reduction in cost of doing business for the private sector; once an electronic seal is attached to a consignment the importer does not have to pay US$50 for a physical police escort. Over 10,000 consignment were tracked using ECTS between May 2014 and June 2015, translating into savings on physical escort fees amounting to over US$520,000 p.a. In addition, the ECTS has foiled theft of goods in transit and improved accessibility to the system by the private sector.

[East African 23/12/15]

ZambiaZambia Ratifies WTO Trade Facilitation AgreementDuring the World Trade Organisation’s [WTO] Tenth Ministerial Conference in Nairobi, Zambia ratified the Trade Facilitation Agreement [TFA]. The move brings number of WTO members that have formally accepted the TFA to 63.

Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.

The TFA will enter into force once 66% of the WTO membership has formally accepted the Agreement. The following African WTO members have also accepted the TFA: Botswana, Niger, Togo, Côte d’Ivoire, and Kenya.

[WTO 17/12/15]

More information on trade facilitation and the TFA can be found at www.wto.org/tradefacilitation. The World Trade Report 2015 is available at https://www.wto.org/english/res_e/publications_e/wtr15_e.htm

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Page 12: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

EthiopiaModjo-Hawassa Expressway ConstructionEthiopian Roads Authority [ERA] has begun the construction of the Modjo-Hawassa Expressway. Upon completion in 5-years it will ease traffic that has forecasted to rise over the next 21 years. Construction will be in 4- phases, the first from Modjo to Meki, The entire project is estimated to cost US$700 million. China Railway Engineering Corporation was awarded the contract to construct the expressway. Techniplan International Consulting, an Italian Engineering firm, designed the Expressway and reviewed by Ethio-Infra Engineering Plc. The Expressway, which is connected with the Addis-Adama Expressway, is also part of the 10,000km highway traversing the length of the continent from Cairo in the north, to Gaborone and Cape Town in southern Africa.

[CR 16/12/15]11

EASTERN & SOUTHERN AFRICAROAD

Page 13: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

Kenya/UgandaKapchorwa-Suam Road To Boost Regional TradeKenya and Uganda plan to build another corridor to boost trade between the 2-countries. The proposed road on the Ugandan side will start in Kapchorwa Town through to Bukwo and Suam before joining the Endebess - Kitale - Eldoret bypass roads project in Kenya. The Suam Bridge forms the boundary of Kenya and Uganda in Bukwo District.

Uganda National Roads Authority and the Kenya National Highways Authority are seeking funds from the African Development Bank [AfDB] for the project. The Ugandan section of the road will cost US$80 million [Shs270b] with funding expected to come from the Government of Uganda and African Development Bank [AfDB].

The Ugandan section, according to Uganda National Roads Authority [UNRA], will be about 73 km and will be upgraded from the current gravel to tarmac, which will be a relief to various farmers around the Sebei Sub-region known for the production of maize, barley, sorghum and coffee.

[Monitor 01/01/16]

KenyaSouth Sudan Road To Be UpgradedKenya National Highways Authority has invited contractors to bid for the upgrade of the road to South Sudan. The move is part of the East Africa Regional Transport, Trade and Development Facilitation Project set to start soon with the construction of the 338 km Loichangamatak-Lodwar section. The government has secured a Sh50 billion loan from the World Bank mid-2015 to facilitate construction of the road described as the missing link between Kenya and South Sudan.

The project is expected to be completed in 2.5 years once awarded to a contractor. The project consists of 3-lots: the Lodwar-Lokitung junction road, Lokitung junction-Kalobeyei river, and the Kalobeyei River-Nadapal road. The road which is part of the international trunk road A1 is expected to contribute to economic growth through increased trade and better access for landlocked countries to the port of Mombasa.

[Star 31/12/15]

Probase To Tarmac Embu Roads For US$38.5 MillionThe County government of Embu has signed a contract with Probase Kenya a Malaysian construction firm to construct and tarmac roads across the county at a cost of US$38.8 million. Tarmacking will start with 12.5 km of the 100 km Ring Road, which connects Embu town to Kibugu market.

[CR 17/12/15]

US$31m For Coastal Road LinkRoad improvements jointly financed by the UK’s Department of International Development, through TradeMark East Africa, and the Kenyan government will link Moi International Airport and Mombasa port to the Northern Corridor. Once completed, the US$31 million the 6.4 kilometer Port Reitz road will be a dual carriageway, which is expected reduce traffic congestion in the Port Reitz area, a major artery for movement of cargo to and from Mombasa. Traffic congestion in this area has been identified as a key non-tariff trade barrier affecting business in the East Africa region.

An improved Port Reitz Road should reduce truck operating costs along the transport route to and from Kipevu West Container Terminal at Mombasa port. New port access gates from the road will accommodate approximately 30% of the traffic from the existing terminal, reducing gate turnaround times from an average of four hours to just two hours.

[Business Week 11/01/16]

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RwandaKFAED Signs US$15 Million Agreement For Road DevelopmentThe Rwandan government and the Kuwait Fund for Arab Economic Development [KFAED] have signed a US$15 million concessional loan to support the construction of the Nyagatare-Rukomo road project in Rwanda. The project entails a 7m-wide and 73 km-long 2-lane tarmac road between Nyagatare and Rukomo in eastern Rwanda. The road extension and development is part of a larger project – the 124.8 km-long Base-Nyagatare road project, expected to cost US$88.5 million.

[Africa Review 15/12/15]

TanzaniaRuhuhu Bridge ConstructionTanzania is to tender for construction of Ruhuhu Bridge substructure and its approach roads. The works also include construction of box culvert s bridge relief. The river is a main tributary of Lake Malawi and the new bridge will connect Njombe and Ruvuma regions.

[UKDTI 18/01/16]

UgandaWorld Bank Cancels Funding For Road Construction Projects The World Bank is suspending its support for all road construction projects in Uganda after its report found that the Uganda National Roads Authority had failed to meet certain social and environmental standards that the bank wanted upheld as conditions of receiving the funding. This is not the first time it is suspending funding for construction projects in Uganda. Last year, the bank cancelled funding to the Transport Sector Development Project when contractual disputes arose between Uganda and its workers.

[Construction Review 15/01/16]

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ZambiaRoad Sector Funding Soars In 2015-2016 Toll IntroductionThe National Road Fund Agency [NRFA] made significant achievements in 2015. The resources mobilised were ploughed into road maintenance, construction and rehabilitation in the 10 provinces of Zambia totalling K4.26 billion in 2015 up 32% on K3.23 billion disbursed in 2015.

At the centre of this development is the Link Zambia 8,000 program run under the Accelerated National Road Construction Programme. The project involves upgrading to bituminous standard 8,000 km of the core road network linking districts and provinces throughout Zambia. Another programme, Pave Zambia 2000, an alternative and cheaper fix, is being executed using concrete block paving and cobblestone technology to repair 2,000 km of existing roads. And programmes dubbed Lusaka 400 [L400] and Copperbelt [CB400] have been dedicated to urban roads in Lusaka and the Copperbelt Provinces. During 2015, NRFA processed contracts covering a total of 33,241 km.

A key milestone has been NRFA’s appointment as a tolls agent to implement phase II of the National Road Tolling Programme. Based on ‘user pay principle’ as a sustainable and self-financing option for routine road maintenance tolls will start from January 15th. The 2-initial sites are Manyumbi, between Kapiri Mposhi and Kabwe, and Kafulafuta, between Kapiri Mposhi and Ndola. NRFA hopes to raise K816 million in 2016 by commissioning additional toll sites across the country.

[Daily Mail 22/12/15]

ZimbabweZimbabwe To Construct Roads And Bridges In CaledoniaZimbabwe is set to construct 8-roads and bridges in Caledonia. The 4.2km road, set to be complete by August, will link Caledonia with Tafara, Damafalls and Ruwa. At least 4-bridges are likely to be constructed in the next 2-months. The project is self-financed by Caledonia residents.

[Construction Review 13/01/16]

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KenyaStandard Gauge Railway Construction Project To Receive LocomotivesThe Standard Gauge Railway construction project will receive fifty more locomotives, expected to arrive this year, bringing the total number of locomotives to fifty-six. At least 1,620 wagons and forty coaches are also expected to be purchased for use on the railway line. The Standard Gauge Railway project is expected to cost upwards of US$3.1 billion, with US$1 billion allocated for the purchase of locomotives. Freight trains using the new lines will have a capacity of 216 TEU and an average speed of 80km/h, while passenger trains will have a capacity of 960 passengers and at an average speed of 120km/h. Forty stations are planned along the line, thirty-three of which will be ready when the railway becomes fully operational in July 2017.

[Construction Review 12/01/16]

MozambiqueSena Railroad Capacity To Increase To 20 Million TonsWork to increase the capacity of the Sena railway line from 6.5 million to 20 million tons per year should be completed in the first half of 2016. The improvements, undertaken by a consortium of Portuguese companies Mota-Engil and Edvisa, began in 2013 with an estimated cost of 163-million euros. Work to be completed includes the improvement of railway bridges for higher capacity loads, the elimination of bends with a radius less than 300 metres to provide greater security, and the extension of the intersections from 750 to 1,500 metres to allow the movement of trains with 100 cars pulled by six locomotives each, compared to just 42 cars hauled by two locomotives as is currently used for coal transportation. The Sena line links the port of Beira to the coal town of Moatize, between the provinces of Sofala and Tete, over a total distance of 575 kilometres, including the Inhamitanga/Marromeu branch line.

[Macauhub/MZ 11/01/16]

Mozambique/MalawiAfDB Invests In Transformative Regional Railway & Port Infrastructure The African Development Bank [AfDB], through its private sector window, has approved a US$300 million loan to support the construction of a 912 km of railway and associated port infrastructure from Tete Province in Mozambique to the Mozambican port of Nacala e-Velha running through landlocked Malawi, along the Nacala Corridor. The project sponsors are Vale SA of Brazil and Mitsui of Japan.

The Nacala Rail and Port Project will enable the transport of mineral resources, general freight and passengers through 2-of Africa’s fastest-growing economies. Rail extension lines into neighboring countries are currently under feasibility discussion. The move will bring about global competitiveness to Mozambique’s mineral exports, including the country’s important coal reserves. While the rail infrastructure is anchored on the viability brought about by mineral exports in Mozambique, the project will also build competitiveness around the region’s agricultural and manufacturing trade.

[AfDB 21/12/15]

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TanzaniaTAZARA Suffers 57% Fall In Freight TrafficThe Tanzania Zambia Railway Authority [TAZARA], which operates the 1,860km 1,067mm-gauge railway linking Dar es Salaam, Tanzania, with New Kapiri-Mposhi, Zambia, has revealed that freight traffic dropped by 57% from 208,538 tonnes in 2013-14 to less than 90,000 tonnes in 2014-15. As a result the Tazara board will cut planned expenditure by 50%, and now intends to spend $US45.8 million during the 2015-16 financial year.

TAZARA expects freight traffic to recover during the current financial year to reach 200,000 tonnes and forecasts passenger traffic at 1.98 million journeys in 2015-16. The board has instructed the TAZARA management to achieve these numbers by preparing a bankable business plan, re-training staff to improve performance, launching a new marketing campaign, and to consider the possibility of inviting the private sector to invest and manage the Dar es Salaam commuter train service, which is currently very popular but makes a loss.

The governments of Tanzania and Zambia have issued TAZARA with an edict to become financially self-sufficient. [IRJ 23/12/15]

New Minister Aims At More Cargo By RailThe new Minister for Works, Transport and Communications has vowed to ensure the bulk of cargo is transported by railways instead of roads after he was sworn in at State House. Statistics currently show that over 75% of transit goods from Dar es Salaam Port to neighbouring countries and to various regions are transported by roads.

[Citizen 29/12/15]

We transport most of our cargo by roads. This has to change if we are to make our roads durable. We believe that after constructing standard gauge railways all cargo will no longer be transported on roads.

Prof Makame Mbarawa, Minister for Works, Transport and Communications

President Suspends Rail Chief Pending ProbePresident Magufuli has suspended a senior rail official and ordered an investigation into possible irregularities in the awarding of a tender to build a standard gauge railway line.

Tanzania said in March it plans to spend US$14.2 billion to construct a new standard gauge rail network in the next 5-years, to be financed with commercial loans as the country aims to become a regional transport hub. The suspension of Benhadard Tito, the director general of the Reli Assets Holding Company [RAHCO], the state railway assets holding firm, will pave way for a thorough investigation into gross violations of procurement procedures [no details given on irregularities]. Magufuli, who took office last month, has pledged to root out corruption and inefficiency in Tanzania and has already sacked several senior officials.

The railway projects planned include construction of a 2,561 km standard gauge railway connecting Dar es Salaam port to Tanzania’s land-locked neighbours, Rwanda and Burundi, at a cost of US$7.6 billion. Two additional lines, to cost US$6.6 billion, would connect Dar es Salaam to the coal, iron ore and soda ash mining areas in the south and northern parts of the country.

[Reuters 22/12/15]

“”

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ZimbabweUS$2 Billion Needed To Revive NRZAccording to the parastatal National Railways of Zimbabwe [NRZ] requires US$2 billion to be fully revitalised and transformed. In the medium term NRZ needs US$500 million to restore its infrastructure to acceptable levels. NRZ is currently implementing a number of strategies to enhance capacity in the short term using a combination of its own resources and funds received from government through the Public Sector Investment Programme.

So far, NRZ has restored communication systems for trains to communicate with control centres on the Bulawayo-Victoria Falls, Bulawayo-Harare and Gweru-Chicualacuala corridors. It has installed a GPS satellite tracking system on mainline locomotives to keep track and manage trains, in the absence of a signaling system. It has also reduced the length of track infrastructure under speed restrictions to 284km from 422km and engaged some customers to finance the repair of wagons in return for a dedicated service. The NRZ has 3,516 wagons available for moving cargo, out of a fleet size of 7,354 wagons. It is facing challenges such as ageing infrastructure and equipment with locomotives and wagons needing replacement.

NRZ moved 3-million tonnes of goods in 2015, down from 3.8 million in 2014 as the parastatal’s fortunes continue to dip. The decline in volumes was attributed to the prevailing economic challenges in the country where many companies have shut down or scaled down on production. At the beginning of 2015, there was optimism that the energy and mining sectors, accounting for 50% of the budget, would perform well and provide the impetus for sustaining growth from the 2014 performance. However, the downturn in the business environment, particularly starting from Q2, saw exporting prospects in excess of half a million tonnes of coal and iron ore fading away, as international commodity prices continued to tumble. Many top customers operated at below 50% capacity, having been forced to scale down operations by the poor international commodity prices, power challenges, antiquated equipment, frequent plant breakdowns and lack of working capital due to the tight liquidity conditions.

[Standard 17/01/16]17

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ZimbabweZimra To Automate Q1 2016Automation of Zimbabwe Revenue Authority [Zimra] is expected to go live by Q1 2016 as the government targets transparent revenue collection and efficiency at border posts to improve the ease of doing business. A One Stop Border Post [OSBP] will be achieved by the end of 2016 and the government is confident of achieving the milestone. There have been multiple improvements in terms of operations at the Beitbridge border post during this Christmas period while new machinery is also in the process of being set up to improve efficiency at the border post. The government is taking a multi-faceted approach in order to come up with an e-enabled system.

[Chronicle 24/12/15]

Zimbabwe To Install CCTV And Scanning Devices At BorderZimbabwe is clamping down on corruption and smuggling at its border posts and is soon to install CCTV and scanning devices. The Beitbridge border post is particularly under the spotlight. The border initiative is being seen as part of the Zimbabwean government’s drive to improve revenue collection. The authorities have already reduced the value of goods allowed in duty-free to US$200 from US$300. The Beitbridge border post generates around US$2 million worth of revenue each month for the country.

[Herald 15/01/16]

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Page 20: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

Cote d’Ivoire/Mali CorridorImplementation Of Inter State Road Transport [ISRT]The Borderless Alliance facilitated the 3rd follow up meeting on the roadmap to implement the unique Inter State Road Transport [ISRT] between Cote d’Ivoire and Mali from 2-3 of December in Bamako, Mali. The workshop gathered 30 people including officials from the Malian government, customs, chamber of commerce and industry, transporters and shippers from the 2-countries. Stakeholders finalized and adopted the common sticker that will be used in the implementation of the unique ISRT.

[Borderless Alliance 24/12/15]

Ghana/Burkina Faso CorridorNon-Tariff Barriers [NTBs] Reporting Tool Available OnlineFollowing the establishment of an Eplatform tool for reporting and monitoring Non-Tariff Barriers [NTBs] with support from DFID and the Borderless Alliance, training workshops for target focal group institutions in Burkina Faso and Ghana have been held in Ouagadougou and Accra respectively with support from the USAID West Africa Trade and Investment Hub. This is to enable the launch of the operations on the platform for the Tema-Ouagadougou Corridor. Working in collaboration with the Burkina Shippers Council and the Ghana Shippers Authority a number of public and private sector institutions were identified as potential focal points to support the platform operations.

Workshops in Burkina Faso and Ghana on the 24th November and 8th December respectively, introduced target institutions to the platform’s objectives and functionalities to process resolution of NTBs via the platform. As a follow-up to these workshops, a number of sensitization activities will be carried out in the 2-countries to publicize the platform and to explain the key functionalities to targeted users.

The key objective of the platform is to facilitate the identification, reporting and resolution of non-tariff barriers in order to promote a better business environment in the West African region.

[Borderless Alliance 24/12/15]

The platform is available online for you to register your NTB complaint at www.tradebarrierswa.com

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Page 21: CTBL-Watch - Issue 25 - January 2016 · 2016 Over New Cargo System Burundi: Kenyan Union Warning Over Burundi Unrest Ethiopia: Modjo-Hawassa Expressway Construction Kenya: South Sudan

GhanaTransit Trade Dips Over Axle Load RegulationsThe Ghana Ports and Harbours Authority [GPHA] noted Ghana is losing significant revenue due to continued drop in transit trade between the country and her West African neighbours. Officials attribute the trend, among others, to the introduction of axle load regulation which has seen shippers from the Sahel Region boycott Ghana’s ports over high cost.

Figures from the authority indicate Ghana lost about 50% of cargo trade with Burkina Faso, Mali and Niger from 1-million tons annually since 2009 to 500,000 tons in 2014. Specifically trade between Ghana and Mali fell from 416,000 tons in 2003 to 27,000 tons in 2014. In all shippers from the Sahel Region have 7-port alternatives to the Ghana option including Abidjan, Dakar, Conakry, Cotonou, Lagos, Lome and Nouakchott.

When the axle load policy was implemented in 2009, it translated into higher cost of doing business on the corridor. Once that competitive edge was no longer there traders decided to shift the cargo to the other corridors. Some recent intervention by Ghana Highways Authority [GHA] and other stakeholders have led to talks with Burkinabe authorities which seem to be yielding some positive results, as the trend begins to pick up slowly.

[Ghanaweb 17/12/15]

Togo/Burkina Faso CorridorBorderless Alliance Road Governance TripThe Borderless Alliance secretariat, with the financial support of Japan International Corporation Agency [JICA] conducted a verification trip on the Lomé-Ouagadougou corridor [1020 km] from 17-23rd November as part of road governance activities. The objective was to ascertain the latest corridor new specifically the number of checkpoints on the corridor, the illicit payment, and the delays. At the end of the exercise, it was observed that the number of checkpoints has more than double from 14 to 29 as compared to the last report of Observatoire des Pratiques Anormales [OPA] published in Q2-2013. A loaded cargo truck in which the officer was embedded spent averagely 75 minutes of lost time due to stops and paid 21,000 CFA [US$35] as illicit payment to uniformed services. Despite these harassments, the Lomé-Ouagadougou corridor appears to be the best corridor in the region. The Borderless Alliance is planning more advocacy work in Togo and Burkina Faso.

[Borderless Alliance 24/12/15]

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GhanaIntroducing Strategies To Reduce Road BarriersThe acting Inspector General of Police [IGP], John Kudalor, has asked Police Commanders to adopt effective strategies to reduce road blocks and barriers along the transit corridors without compromising security. This comes amid concerns about the decline in volumes of transit cargo through the nation’s seaports due mainly to harassment, extortion and delays on the roads.

A 1-day forum on road governance was held in Kumasi for police commanders to deliberate on ways to improve competitiveness on the ECOWAS transit corridors – specifically to find ways to address challenges on the Tema-Paga corridor where many check points hamper free trade. The forum was jointly organized by Ghana Shippers Association [GSA], the Tema Port and Borderless Alliance, a private sector-led advocacy platform.

Since 2009, transit volumes through Ghanaian ports have fallen 50%. Road trips conducted by the Ghana Ports and Harbours Authority [GPHA] and the Borderless Alliance at the beginning of 2015 highlighted there were as many as 45 checkpoints manned by the police and the Customs Division of the Ghana Revenue Authority [GRA].

[GNA 17/12/15]

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NigerKFAED Signs KD6 Million Road Loan The Kuwait Fund for Arab Economic Development [KFAED] signed a KD 6-million loan agreement with Niger to fund a 92 km-long road in the northeast.

[KUNA 16/12/15]

NigeriaLagos State To Construct Roads Worth US$87 Million Lagos State plans to construct several roads after it approved the construction of 114 inner roads. The US$87.74 million project will be executed across 20 Local Governments and 37 Local Council Development Areas (LCDAs) in the State. Phase I will involve Adeniji Kemi street, Ikorodu, Bolaji Benson, Alimosho, Jolaosho, Alhaji Idowu street, Orile Agege, Amuwo Odofin, Ogundele and Fashola street, Adebola Olojobi and Eko Akete and Mathew and Famuyiwa Olayiwola street in Agege Local Govt. however, the full list of the 114 roads is available on the state’s website.

[Construction Review 19/01/16]

Delta State To Construct And Rehabilitate RoadsNigeria’s Delta State has approved the construction and rehabilitation of 4-roads. The Ughelli-Afisere-Ufoma road will undergo reconstruction, the Owa-Eki/Owa-Alero road will be dualized, the Kefas road in Oleh will be extended to the Emede-Olomoro road junction, and the Okpare-Umolu-Kiagbodo road will undergo rehabilitation. These projects will boost the State’s economic development and open up growth.

[Construction Review 15/01/16]

SenegalRN2 Rehabilitation & Opening Up Access To Morphil IslandMinistry of Land Transport Infrastructure and Access [MITTD] and the Road Works and Management Agency [AGEROUTE] are to rehabilitate the National Road 2 [RN2]. By its strategic location RN2, allows for interconnection between the Dakar-Bamako corridor from the North and the Euro-Africa Road [Dakar – Nouakchott - Tangier - Madrid]. The road project forms part of the Regional Economic Programme [PER II] coordinated by WAEMU.

The road is an important interconnection backbone which, at the same time, serves the entire North and the East regions of Senegal. Today, it is in an advanced state of disrepair with negative impacts on the development of the North - a zone with high agriculture, tourism and mining potential. The project covers 3-administrative regions [St. Louis, Matam and Tambacounda] with a total population of 2,152,000 inhabitants 16% of Senegal’s population. The African Development Bank [AfDB] are to fund €120 million whilst the Islamic Development Bank [IsDB] will fund €$63 million and the Senegal Government €361 million.

[AfDB 23/12/15]

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Burkina FasoKaya-Dori-Gorom-Gorom-Tambao Rail DevelopmentThe Burkina transitional government has lifted a suspension of Pan African Minerals’ export licence, which was imposed in March. Pan African Minerals is allowed to restart the Tambao mine & reaffirmed commitment to build a railway and rehire workers. Agreement provisions envisage the rehabilitation of Ouagadougou-Kaya railway line and the construction of the Kaya-Dori-Gorom-Gorom-Tambao [210 km] railway line, the asphalting of the Dori-Gorom-Gorom-Tambao [165 km] road and the exploitation of new Tambao deposits. The mine is operated by Pan African Burkina, a subsidiary of Pan African Minerals, a mining company owned by the Australian-Romanian businessman, Frank Timis.

[APA 23/12/15]

GhanaFeasibility Tests For Boankra Port & Eastern Rail Project Completed The Public Private Partnership [PPP] process in order for the Boankra port and Eastern rail line project to take off is close to completion.

Once complete both projects will help to decongest the Tema and Takoradi Harbors. The port is also expected to bring import and export services closer to shippers in the northern part of the country as well as those from Burkina Faso, Mali and Niger.

Government officials are confident the project should take off by the middle of 2016. A full feasibility test for both projects has been completed and submitted to players involved on 18th December, 2015. It will now be subjected to market testing where the project will be sold to private sector investors after which there will be an evaluation which will be approved by the Finance ministry and then the Cabinet and Parliament.

The government will begin negotiating with investors by June 2016 and most likely sign a deal by July 2016.

The Boankra Inland Port and Eastern Line Railway Line project, is an inland extension to the Tema Port, to make railway efficient, decongest the eastern port, enhance Ghana’s role as a transit corridor, feed traffic from other modes of transportation, improve service to customers and reduce cost.

Meanwhile, the Eastern rail line track will be provided with rolling stock station upgrades, signaling and communication equipment, while the inland port will have shippers and freight forwarders office, warehouse, commercial buildings, customs co-ordination protocols, customs clearance and procedures and controls.

The Eastern rail project is expected to cost US$1.2 billion while the port project will cost US$300 million.

[Citi 97.3 16/12/15]

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Mali/SenegalMali/Senegal Sign US$1.5b Deal With China Railway ConstructionMali has signed an agreement with China Railway Construction Corp [CRCC] to renovate a rail line linking its capital Bamako to the border with neighbouring Senegal at a cost of US$1.486 billion. The announcement was made by the nation’s transport minister on 26th December. The project is part of a plan to upgrade the ageing, 1,200-km line between Senegal’s coastal capital Dakar and landlocked Mali. CRCC penned a similar agreement worth US$1.26 billion with Senegal on 24th December.

The Malian section of the project will include upgrading 644 km of rail lines and renovating 22 railway stations. The move allows for 100 km/hr passenger trains and freight trains of 80 km/hr. Once started, work on the project is expected to last 4-years.

[Reuters/Ghanaweb 27/12/15]24