railway projects africa

8/21/2019 Railway Projects Africa

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Contents w

ww.terrap

inn.com/africarail

Introduction......1

Investment Overview...........................................2

Algeria.................................................................3

Nigeria.................................................................4

Kenya..6

South Sudan & Ethiopia....................................8

DRC.....................................................................9

Mozambique......................................................11

Tanzania.............................................................12

Ghana................................................................13Namibia.............................................................14

South Africa...................... 15

Angola.. 18

References.........................................................19


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IntroductionWith the decline of the global economy, it's easy to assume that there is little in the coffers for the major infrastructure projects

we've seen in the past.

However, in many emerging markets, and certainly in Africa, spending on infrastructure and indeed in passenger and freight rail

development has jumped into the limelight.

The following market report has been compiled using data collected for the upcoming 17th Annual Africa Rail Show, to be held in

Johannesburg in July 2014. The report is designed to give detailed country and project specific information for upcoming and

ongoing rail projects in the region.

The selection is not ranked in any particular order.

If you would like to learn more about the upcoming conference please dont hesitate to contact us.

1

Samantha Futcher

Project Director

[email protected]

27 (0) 11 516 4033

www.terrapinn.com/africarail

Tanja Du Plessis

Conference Manager

[email protected]

27 (0) 11 516 4019
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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2

Current projects shaping the future of the

rail industry in Africa

Country Name: AlgeriaCurrent/ Proposed Investment: $471.36 million

Key Projects: Oran tramway system

Country Name: Nigeria

Current/ Proposed Investment: $874 Million

Key Projects: Lagos Rail Mass Transit System

Country Name: Angola

Current/ Proposed Investment: +- $400-500 million

Key Projects: Benguela Railway project

Country Name: Namibia

Current/ Proposed Investment: $ 11 millionKey Projects: Namibia- Botswana transnational railway project

Country Name: Ethiopia

Current/ Proposed Investment: $20 billion

Key Projects: Lamu Port- South Sudan-

Ethiopia Transport Corridor (LAPSETT)

Country Name: Kenya

Current/ Proposed Investment:: $ 13.5 billion

Key Projects: Mombasa-Kigali rail project

Country Name: Mozambique

Current/ Proposed Investment: $6.4 billion

Key Projects: Vales Moatize Project

Country Name: Ghana

Current/ Proposed Investment: $23 million

Key Projects: The Accra-Tema rail line

Country Name: South Africa

Current/ Proposed Investment: R9.1 billion

Key Projects: Majuba railway corridor project


Country Name: DRC

Current/ Proposed Investment: $667 million

Key Projects: The multimodal Transport project

Country Name: TanzaniaCurrent/ Proposed Investment: $100 million

Key Projects: central development Corridor

(CDC) Tanzania

Country Name: South Sudan


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Key Projects: Oran tramway system

One of the most anticipated tram systems in the region is being rolled out in three phases, the first of which is nowcomplete.

The final phase is being targeted by 2020.

Company: SETRAM

Investment: $471.36m for first 10 years has been awarded

Key Stats: 30.1km, 40 additional stations

Tender plans: The next step will be the northerly extension from the Hatab bus station to Benarba. It will be 8.6km and will

add 12 stations.Other extension plans include the Depot Senia to the Oran airport and from USTO to Bir El Djir covering a

length of 16.5km.

Algeria

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Key Projects: Lagos Rail Mass Transit System

Current/ Proposed Investment: $874m estimated

Company/s involved: Nigerian Federal Government, Lagos Metropolitan Area Transport Authority (LAMATA), China Exim Bank,China Civil and Engineering Construction Company (CCECC)

Key Stats: major track upgrades, potential high speed line

Key Stats for First Phase - Abuja-Kaduna Line: 9 stations, Rolling Stock Procurement for freight and passenger locomotives

Tender plans: Abuja-Kaduna is the first segment to be implemented as part of Lagos-Kano standard gauge project.

The next segment to undergo standard-gauge upgrade is the 312km-long Lagos-Ibadan rail line, which is a double-track

standard-gauge line scheduled for completion in 2016.

The other standard gauge line projects in the pipeline in Nigeria include the Lagos-Benin City (300km), Benin-Abakiliki

(500km), Benin Obudu Cattle Ranch (673km), Lagos-Abuja high speed (615km), Zaria-Birnin Koni (520km), and the Port

Harcourt-Maiduguri line (1,657km).

Nigeria

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Key Projects: Lagos-Ibadan railway

Current/Proposed Investment: $1.49bn (Lagos-Ibadan railway )

Companies involved: China Civil Engineering Construction CompanyInvestment: Government has allocated $28.61bn for the development of roads, railways, inland waterways, ports and

airports.

Key Stats: In 2012 China Civil Engineering Construction Company was awarded the contract to develop the Lagos-Ibadan

standard gauge railway expected to reach completion in 2014

Tender plans: The construction of Lagos-Ibadan standard gauge double rail track should be completed by the end of 2013.

Minister of Transport, Senator Idris Umar who disclosed in Abuja while inauguration the Board of Directors of the Nigerian

Railway Corporation, NRC, said the government is equally working to ensure that the rehabilitation of the Railway line from

Port Harcourt to Maiduguri is completed this year.

The 25 year vision is going forward in three phases namely System Transition, System Modernization and System Stabilisation.

In the implementation process, a dual approach is taken on and this entails the rehabilitation of the entire existing narrow

gauge line at the same time as the development of the standard gauge line.

In the modernization phase, the construction of Itakpe Ajaokuta Warri and Abuja Kaduna Standard Gauge Line are in

progress and are expected to be completed and commissioned by next year.

Due to this upgrade and modification, NRC is undergoing a review to ensure, private, state and local government involvement

in the sector.

Nigeria

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Key Projects: Mombasa-Kigali rail project

Current/Proposed Investment: First Phase: $260m allocatedCompany: Kenya Railways Corporation & Rift Valley Railways

Investment: $13.5bn

Key Stats: feasibility, design & construction, 500km high-speed standard gauge railway line, locomotives and rolling stock

Tender plans: In July 2013 the Kenya Railways Corporation issued a tender for consultancy services to oversee the design and

construction of a 500km high speed standard gauge railway line.

The Ministry of Works and Transport has said the construction of the Mombasa-Kigali railway line will be completed in March

2018.

The feasibility studies for the first phase of the railway from Mombasa to Nairobi covering 500 kms is now complete and is

scheduled for November.

Kenya

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Phase II design of the line covering 511 kms from Nairobi to Malaba is being done by Kenya Railways Cooperation and

will be complete by the end of 2013.

The design for the Kampala- Malaba line covering 250 Km will be complete by October 2013 in which a second phaseof the Tororo-Packwach railway line was completed in 2011.

Phase III of 344 Km will cover Kampala to Kasese en route to Bihanga-Mirana hills (200 Km).

It is then scheduled that the government of Rwanda will develop the 200 kms line from Mirama hills to Kigali.

So whats the news on concession operator?

Rift Valley Railways (the company with a concession to operate the Kenya-Uganda railway line) will remain operational.

The operator recently launched a Shs24 billion technology upgrade on the line to control the movement of trains and

cargo along the railway tracks which was considered a large revamp.

While all of this has been progressing, China Construction Engineering was given a contract to develop the Tanga-

Musoma railway line, which will be the link the Bukasa port.

Kenya continued


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Key Projects: Lamu Port South Sudan Ethiopia Transport Corridor (LAPSETT)

Current/Proposed Investment: approximately $20 billion

Company: LAPSSET

Key Stats: Oil Refinery, transport hubs for rail, road and air vehicles, mega port at Port Lamu development

Tender plans: The LAPSSET project was first initiated in 2012 by the presidents of Kenya, Ethiopia and South Sudan.

The World Bank has funded the feasibility study and design of the transport corridor linking Kenya to Southern Sudan. Feasibility

studies for corridor components and the design of three (3) berths and associated facilities in Lamu are complete.

China Communications Construction Company has won a tender to construct the first three berths at the port of Lamu in

Mombasa,Kenya.

The first three berths in the port of Lamu will be completed in three years. The government will be preparing a business plan for

how private investors can involve themselves, PPPs and joint ventures seen as possible models.

The government is however proposing that the Lappset corridor and the Lamu-Ethiopia railway line is built using locally

assembled steel. The project will be completed within 17 years and according to the projects master-plan, Lamu port will

include 32 berths once the Lapsset corridor project is complete.

South Sudan & Ethiopia

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Key Projects: The Multimodal Transport Project

Current/Proposed Investment: First Phase: $667m

Company: SNCCInvestment: Approximately $667m

Key Stats:

The project aims to:

(i)Improve transport connectivity in the DRC to support national economic integration

(ii) Restore SNCCs financial and operational viability

(iii) Implement a sector wide governance plan and strengthen transport SOEs operational performance

Tender plans:

DRC

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SNCCs Network includes 3 641 km of track, out of which 858 km electrified. Their social responsibility includes: 2 river ports,

lakeside & river navigation, 1 shipyard, road transport, schools and medical establishments. Their national coverage spans onto 7provinces-2 in Kasa, Katanga, Maniema and Province Orientale et Sud Kivu

In order to assist SNCC in its recovery process, the World Bank and the government of the Democratic Republic of Congo are

mobilizing an amount of 617 USD millions in the frame of the Multimodal Transport Project (MTP)The Multimodal Transport

Project came into force the 15th of April 2011 with a World Bank support to the SNCCs running costs. This amounted to around 30

million dollars as of the end of December 2011.


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The thought behind the set-up of a stabilisation and recovery plan of the activity were planned in three phases:

Phase 1: Stabilisation of the activity of SNCC

This includes the rehabilitation and upgrade of rail track, rolling stock, workshops, and facilities that are used by SNCC, the next

step is implementing a steady level of operational support (3 years)

Phase 2: Reinforced stabilisation and recovery

This phase would include the gain of needed equipment for selected transport SOEs, an internal indication of the Ministry of

Transport and the development of an international trade strategy and action plan

Phase 3: Concession / leasing (option to be taken by the State (> 20 years)

This phrase provides for the funding of the Project management entity

The Tender was launched for the acquisition of 30 new diesel locomotives Opening of the bids commenced on the 11th of May 2012

Delivery of the locomotives should be completed by the end of 2014

Partnership arrangements for this project have not changed.

Main partners include: the African Development Bank (AfDB)

The French Development, Cooperation Agency (AFD)

The Belgian Technical Cooperation (BTC)

The European Union (EU)

Main achievements to date are as follows:Through Public Private Partnership (PPP) SNCCs governance has improved: SNCC is currently one of very few SOEs in DRC with a

private management team fully empowered to manage the company as a commercial entity. Vecturis has already had a major

positive impact on SNCC. The private operator has brought transparency, expertise, and proactive management to the table. This

have been proven by the fact that project disbursement and commitment rates remain among the highest achieved in DRC for a

project at this stage of implementation.

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DRC continued


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Key Projects: Vales Moatize projectCurrent/Proposed Investment: Approximately $6.4 bn

Company: Vale and CFM

Key Stats: The rail link between Tete and Nacala should be completed by the end of 2014.

The project is ongoing, on schedule and on budget. Vale plans to invest US$ 3.4 billion on the railway to refurbish

approximately 682 km of existing railway and 230 km of Greenfield railway.

Vale is expecting to rail their first coal train by the end of 2014 and load the first ships early in 2015.

Vale will also be investing US$ 2 billion to expand the Moatize Mine, which will reach 22 metric tons per year of installedcapacity by 2015.

Mozambique

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14/23

Key Projects: Central Development Corridor (CDC) in Tanzania

Company: Tanzania Railway Limited

Investment: US$100 million

Key Stats: achieve economic growth by providing reliable and cost effective enhanced transport facilities

Tender plans:

The corridor is still in the scoping stage and the government is busy with its 2025 Integrated Industrial Strategy which

links spatial development initiatives to promoting growth in the country.

The projects main aims are to renew sections of the track and enhance infrastructure. An agreement was signed with

the World Bank securing investment into the renewing of the track.

This process is estimated to take about 2-3 years and has been said to start before the end of 2013.

Tanzania Railway Limited will keep exclusive rights to the project until 2016. After 2016, the network will be open toother operators

Tanzania

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15/23

Key Projects: The Accra-Tema rail line

Current/Proposed Investment: $23m

Company: Ghana Railway Development AuthorityKey Stats: The project is to transform the Regions transportation system by launching new high speed passenger and goods

rail services

After being abandoned for almost two decades, the Ghana railway system recently went through a major transformation

The Accra-Tema rail line project started in December 2004. It consisted of rehabilitation of the existing Tema - Accra Nsawam

suburban railway, and construction of new rail lines. It also included the construction of two big culverts at Baatsona, the

reconstruction of two broken bridges at Nungua and Baatsonaa, and installation of a signalling and telecommunications

system.

Tender plans: In 2007, the government awarded a design, build, operate and transfer contract to Peatrack for expansion,reconstruction and operation of a rail network between Accra-Tema and Paga. The project has a concessionary period of 35

years.

Since then, a memorandum of understanding has been signed and funding promised by some foreign institutions for the

ECOWAS (Economic Community of West African States) line from Aflao-Tema-Accra, Winneba, Cape Coast and Takoradi, to

Omaape. The first phase of the ECOWAS line including the Accra suburban line broke ground in February 2011.

So what has happened since? Since August this year, a team of consultants has been assembled by Hammcobtb Engineering

International Incorporation-Canada to kick off a design, construction specifications and implement a fast rail route for the West

Coast of Africa

Ghana

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Key Projects: Namibia-Botswana transnational railway project

Company: TransNamib& Botswana RailwaysInvestment: $11 billion

Key Stats: Known as the Trans-Kalahari Railway, the 1,500-kilometer (932- mile) line will run from landlocked Botswanas

coalfields in the south and east to the Namibian port of Walvis Bay in the west.

The pre-feasibility study for a new rail network to connect Namibia and Botswana has begun.

The move marks a concrete step towards carrying out the project, which has been under planning for more than three

years. The 12-month study is being funded by an N$3.4m grant from the World Bank and N$329,000 each from the two

countries

Tender plans: The tender was withdrawn from Profile-VAE because the company had previously received many similarcontracts and that was not in line with a "fair distribution of work". Therefore bids for potential financing will be

reopened

Namibia

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South Africa

Key Projects: Majuba railway corridor project

Current/Proposed Investment: R9.1bnCompany: Transnet Freight Rail

Key Stats: The corridor is the first large greenfield freight-rail infrastructure project to be carried out in South Africa since

1986.It is estimated that the line will carry its first 100-wagon train on 31 May 2016.

Tender plans: Civil construction and earthworks for the project are being carried out by Grinaker-LTA and is estimated to be

completed by the end of October. Contracting processes for the perway and the electrical and signalling contracts are

currently under way and it is reported that these should be awarded during the first quarter of 2014. The perway package

has been planned to be completed by December 2015 and the electrical and signalling package by February 2016.

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18/23

Key Project: Transnets Market Demand Strategy

Current/Proposed Investment: R307 billionCompany: Transnet Freight Rail

Key Stats:In April last year, Transnet launched their audacious Market

Demand Strategy (the MDS) a rolling R307 billion capital investment

programme for the next seven years.

Transnet have delivered a successful first year of the MDS, highlighted by

an investment of over R27 billion in their countrys transport

infrastructure. This is unprecedented in the history of their company.

Transnet are aggressively modernising their assets through the investment

programme. Two thirds of this programme is on rail infrastructure and

rolling stock, which have suffered the most as a result of decades of

underinvestment in the past.

They are buying and building thousands of locomotives and equipment

and expanding their port assets. Transnet have completed the construction

of their state-of-the-art multi-product pipeline for petroleum products

between Johannesburg and Durban.

The MDS is not only about infrastructure investment. One of its main

focuses is the shift cargo from road to rail, which reduces the cost of doing

business and carbon emissions.

www.terrapin

n.com/cargoshow

South Africa

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Key Projects: The PRASA fleet renewal programme

Current/Proposed Investment: R51 billion

Companies involved: PRASA, ALSTOM,GIBELAInvestment: R123 Billion over 20 years

Key Stats: This project has been put in place to bring Metro Rail back to life. The goal is to supply 600 passenger trains (3 600

coaches) which is to be delivered between 2015 and 2025. The aim of this project is to revitalise the rail industry, create jobs and

provide efficient, reliable and safe public transport. The programme will replace the ageing suburban trains in service in Pretoria,

Johannesburg, Cape Town and Durban, with 1 200 electric trains over a period of 20 years.

Tender plans: Gibela will build a manufacturing site in Ekurhuleni, to produce the trains in South Africa. The manufacturing facility

will also house an engineering center and a training facility. Construction is scheduled to start in early 2014 and the factory is due to

come on board in 2015. The project is said to create over 1500 direct jobs in the local factory and 33,000 indirect jobs over the first10 years. The first 20 trains will be manufactured in Lapa, Brazil. Alstoms French sites Ornans, Tarbes, Le Creusot, Villeurbanne and

Saint-Ouen will be involved in the project over the long term.

www.terrapin

n.com/cargoshow

South Africa

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20/23

Angola

Key Projects: Benguela Railway Project

Current/Proposed Investment: Approximately $400-500 million

Company: CFB- Caminhos de Ferro de BenguelaKey Stats: The Benguela railway has a length of 1,344 kilometres (835 mi) in

Angola and provides access to the inner part of the country, but achieved its

greatest success through linking to the Copperbelts of Katanga province,

Democratic Republic of Congo, and Zambia.

The line is pretty much complete, with a few minor glitches. The bottom line is,

the line is continuous and should be open for commercial use by the end of 2013.

Now that the line is complete, SNCC and CFB will decide on a technical and

operational plan so that the Congo can link to the newly rehabilitated Benguela

railway line in Angola.

The Congo was the worlds eighth-largest producer of copper and mined the most

cobalt last year. The majority of the nations copper is currently transported about

3,500km by road from Katanga to Durban, or east to Dar es Salaam. It can now be

transported along the newly fixed 1344 km line, so you can imagine the benefits

of this.

Tender plans: It has been said that SNCC has already put out tenders to purchase

equipment and materials. Tenders are still unknown

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References: www.railway-technology.com

http://www.frontiermarketnetwork.com/article/3838-opportunities-in-nigeria-s-infrastructure-development-plan#.UlzfChgaJOw

http://www.vanguardngr.com/2013/05/work-to-commence-on-lagos-ibadan-railway-projects-fg/

http://www.bdlive.co.za/africa/africanbusiness/2013/07/22/kenya-prepares-to-invite-tenders-for-railway-line-project

http://www.trademarkea.com/mombasa-kigali-rail-to-be-finished-by-2018/

http://edition.cnn.com/2013/06/18/business/world-spectacular-infrastructure-projects/index.html

http://www.constructionreviewonline.com/news/latest-news/1328-china-communications-wins-us-488million-lapsset-corridor-project-tender

http://www-wds.worldbank.org

http://informaaustralia.wordpress.com/2013/05/24/vale-mozambique-downey-interview/

http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/01/28/000333037_20130128155606/Rendered/PDF/NonAsciiFileName0.pdf

http://www.blog.kpmgafrica.com/resource-corridors-infrastructure-development-private-investment/

http://www.railway-technology.com/projects/accratemarailwayline/

http://www.ghanabusinessnews.com/2013/08/04/experts-discuss-ecowas-rail-project/

http://www.bloomberg.com/news/2013-04-16/botswana-namibia-to-sign-11-billion-railway-deal-on-april-20.html

http://www.railway-technology.com/news/news66425.html

http://allafrica.com/stories/201301240453.html?viewall=1

: http://www.engineeringnews.co.za/article/majuba-railway-corridor-project-south-africa-2013-09-27

http://www.bdlive.co.za/africa/africanbusiness/2013/10/18/railway-firms-to-discuss-ways-to-link-congo-to-angolas-benguela-line

http://www.alstom.com/press-centre/2013/10/prasa-and-gibela-led-by-alstom-sign-historic-agreement-for-the-supply-of-modern-commuter-trains-in-sa/

http://www.frontiermarketnetwork.com/article/3838-opportunities-in-nigeria-s-infrastructure-development-plan#.UlzfChgaJOw

http://www.vanguardngr.com/2013/05/work-to-commence-on-lagos-ibadan-railway-projects-fg/

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