Railways Africa NewsXpress: Week 46:2024
Railways Africa Magazine
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How to Transform Rail in South Africa with Open Access and Railway Signalling
Now that October Transport Month in South Africa has concluded, the local railway industry finds itself on the brink of a rail renaissance, echoing the theme of the recent RAILWAY SAFETY REGULATOR conference.
The restructuring of Transnet, known as the vertical separation of Transnet, with the establishment of the Transnet Interim Infrastructure Manager (TRIM) and the Transnet Freight Rail Operating Company (TFROC), sets the stage for a new era in competitive rail transportation.
This shift aims to open the national rail infrastructure to multiple operators, fostering competition, enhancing service quality, and, most importantly, driving efficiency in South Africa’s rail transport sector. These changes are expected to benefit the country’s economy.
Zambia Railways is Shaping Southern Africa’s Rail Network – Funding, Expansion & Key Corridor Updates with ZRL Chairperson
In this episode of?Coffee with the Editor, Phillippa Dean of Railways Africa Magazine speaks with Zambia Railways Limited (ZRL) Board Chairperson, Mr. Emmanuel Hachipuka, covering Zambia’s pivotal role as a rail hub in Southern Africa. The discussion covers Zambia’s ambitious plans for regional rail connectivity, including the strategic role of TAZARA, recent progress on the Lobito Corridor, and partnerships shaping ZRL’s future.
Mr. Hachipuka provides updates on ZRL’s plans to secure funding for comprehensive track upgrades, acquisition of new rolling stock, and enhancing efficiency through critical rail corridors, including the Nacala and Kazungula Bridge projects. The conversation also touches on government-led efforts to streamline legislative frameworks for open-access operations.
Whether you’re interested in infrastructure and rolling stock opportunities, investment, or policy developments in African railways, this conversation offers an in-depth look at Zambia’s journey towards becoming a major player in regional and continental rail transport.
Malawi and Mozambique Sign Simplified Trade Regime Framework
On 18 October 2024, Malawi and Mozambique signed the Simplified Trade Regime (STR) Framework in Lilongwe, setting a precedent within the SADC region as the first bilateral framework under the SADC Protocol on Trade. Malawi’s Minister of Trade and Industry, Hon. Sosten Gwengwe, expressed optimism that the agreement would boost bilateral trade, create jobs, and empower small-scale traders to compete regionally and globally by simplifying customs procedures and harmonising trade processes.
Mozambique’s Minister of Industry and Commerce, Silvino Augusto José Moreno, highlighted the importance of fostering inclusive economic infrastructure and policies to enhance cross-border trade and drive economic transformation.
The STR Framework simplifies goods clearance for small-scale traders at key border points, including Mandimba-Chiponde, Zobue-Muanza, Calomue-Dedza, and Melosa-Muloza. The initiative was supported by the World Bank-funded Southern Africa Trade and Connectivity Project, underscoring the role of regional collaboration in promoting trade facilitation and economic growth.
Tanzanian Parliamentary Committee Reviews Progress of SGR Project
The Parliamentary Committee on Public Investment (PIC) held a seminar with the Tanzania Railways Corporation (TRC) on 14 November 2024 to review the progress of the Standard Gauge Railway (SGR) project. Since its launch, the SGR has generated TZS 20 billion in passenger revenue between Dar es Salaam, Morogoro, and Dodoma. By 2025, cargo transportation will commence, which is expected to bring even more benefits.
PIC Chairman Hon. Augustine Vuma praised the government’s $10 billion investment in the SGR project, which will benefit Tanzania and East Africa. However, Deputy Minister of Transport Hon. David Kihenzile raised concerns about ongoing vandalism, including damage to electric cables and fences, which hampers project progress and incurs financial losses. The government reaffirmed its support for TRC to ensure the successful completion of the SGR project, aiming to enhance Tanzania’s economy and national revenue.
Lobito Atlantic Railway Reinforces Transport Capacity with New Wagons
The Lobito Atlantic Railway (LAR) has taken an important step this week towards strengthening its transport capacity with the arrival in Lobito, Angola, of the first batch of 275 new container wagons purchased from Galison Group Manufacturing in South Africa.
The Eastern Mining Line: A Strategic Pillar for Algeria’s Economic Future
The Eastern Mining Line stretches 422km from Annaba in the north to Djebel Onk in the south of the Tébessa province. This ambitious infrastructure project is designed to transport over 23 million tonnes of raw and processed phosphatic materials annually between the various units of the integrated phosphate project, as well as iron ore extracted from the mines of Djebel Onk, Bled El Hadba, Ouenza, and Boukhadra. This major corridor will also enhance the capacity and efficiency of passenger and freight transport along the Annaba–Tébessa axis.
As part of the modernisation and expansion project of the Eastern Mining Line from Annaba to Tébessa and Djebel Onk, covering a distance of 422km, the National Agency for the Study and Monitoring of Railway Investment ( ANESRIF ) has shared exclusive images showcasing the progress of work on the 54km section linking Annaba to Bouchegouf.
Railway Safety Regulator Provides Insights into South Africa’s Railway Safety Landscape
The RAILWAY SAFETY REGULATOR (RSR) has released its?Annual State of Safety Report (ASoSR)?for the 2023/24 reporting period (1 April 2023 to 31 March 2024), fulfilling its legislative mandate under the National Railway Safety Act (Act 16 of 2002, as amended). This report provides a detailed analysis of safety performance across South Africa’s rail sector, evaluating operational occurrences and security-related incidents. It serves not only as a record of past events but as a strategic guide for enhancing safety across the rail network.
Zambian Government Kick-Starts Phase One of the Long-Awaited Nakonde One-Stop Border Post Improvement & Upgrading Project
The Nakonde One-Stop Border Post (OSBP) Improvement and Upgrading Project – Phase 1 has officially commenced, funded by the UK government through Trade Mark Africa with an investment of US$10 million. China Rail Construction and Engineering Group has been appointed as the contractor for this project at one of Zambia's busiest borders, which facilitates 22% of the country’s trade and processes over 800 trucks daily.
Agriculture and Transport: Togo and Egypt Explore New Partnership Opportunities
In a recent diplomatic meeting on 6 November, José Kwassi Symenouh, President of the Chamber of Commerce and Industry of Togo (CCI-Togo), and Ahmed Mohamed Eid Moustapha Ahmed, the Egyptian Ambassador to Togo, discussed the potential for collaboration in vital sectors, particularly agriculture and transport. This meeting marked a step forward in strengthening economic relations and creating mutually beneficial partnerships for businesses in both Togo and Egypt.
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Summary: DFC Announces Nearly $4 Billion in Climate Finance at COP29
The U.S. International Development Finance Corporation (DFC) has committed over $3.7 billion in climate finance for FY 2024, focusing on energy security, food and water security, and climate resiliency. DFC’s climate commitments have grown from under $500 million to nearly $4 billion over the past four years, enhancing U.S. foreign policy and development goals.
Key initiatives include:
Food and Water Security: Investments in El Salvador, Kenya, and India aim to strengthen food and water resources, such as sustainable fish farming and climate-smart agricultural technology.
Energy Security: Significant projects in Indonesia, Mozambique, and Türkiye focus on geothermal and wind energy, including Türkiye’s largest wind energy investment at $350 million.
Supply Chain Diversification: A $553 million loan to Angola’s Lobito Atlantic Railway and investments in rare earth projects support the clean energy supply chain. In Mexico, $25 million is allocated for infrastructure projects aiding energy transition.
The Port Autonome de Lomé is Strengthening Ties With Economic Operators
The Port Autonome de Lomé (PAL) is strengthening ties with economic operators in Sahelian countries to boost trade. Following a visit to Niger, a Togolese delegation travelled to Bamako, Mali, on 6 November to promote the Port of Lomé’s services. In meetings with Malian transporters, importers, exporters, and the textile sector, PAL representatives highlighted new initiatives to streamline trade for Alliance of Sahel States (AES) members. They presented recent reforms aimed at enhancing the port’s efficiency as a transit hub for landlocked countries and listened to Malian operators’ concerns. To further support Sahelian partners, PAL is planning additional measures to ease transit, aiming to position itself as a vital access point for the Sahel region to international markets.
Kenya Railways Erroneous Reporting On SGR Loan Repayment
Kenya Railways has issued a press statement following an article published on the front page of The Business Daily newspaper on Tuesday, November 12, 2024. In the story, the writer states that the Corporation has defaulted on Sh167.5 Billion loan borrowed from China through The National Treasury (TNT).
The Corporation wishes to state that there is no default on the SGR loan repayments and that the information presented in the story is misleading in its entirety. Kenya Railways has an On-lent loan with TNT and not with China Exim Bank, based on the signed financing agreements. The China Exim loan and the On-lent loans are two different financing agreements with different terms and conditions. KR is only privy to the On-lent loan terms and agreements.
It is important to note that the Corporation’s performance has witnessed a significant growth trajectory over the past 6 years from 2017, and in the last two financial years freight tonnage has exceeded the 6 million tonnes target, to over 6.39 million tonnes by the end of the 2023/24 financial year.
Kenya Railways remains committed to meeting its financial obligations and sustaining its operations.
Urgent Call for Rail Investment to Meet Global Climate Targets as Global Railway Networks and Investments Shrink
How can COP29 boost rail investment to support decarbonisation efforts?
As the world prepares for the 29th Conference of the Parties (COP29) in Baku, Azerbaijan, from 11-22 November 2024, the global community faces a pivotal moment in the fight against climate change.
The UIC - International union of railways #UICrail , a longstanding advocate for sustainable rail transport at COP events, will also return this year to highlight the essential role of rail in decarbonisation. Having participated actively in COP events for many years, including COP26, COP27, and COP28, UIC has consistently promoted rail as a key contributor to reducing emissions, increasing energy efficiency, and enhancing resilience to the effects of climate change.
Good and Bad Rail Concessions
TRANSNOMICS in effect is a philosophy to anchor transport sector policy development for comprehensive contextualization of the desired enabling environment for operational excellence, quality service provision and competitive market practices and industry development. TRANSNOMICS facilitates for a rail ecosystem of backward and forward linkages in support of rail development in terms of capacity, operational efficiency and its effective contribution to social and economic development. Good and Bad Rail Concessions can therefore be determined through the TRANSNOMICS lens.
Dr. Lubinda Sakanga is a transport economist specialised in economic regulation, project and operations management.?
TNPA Appoints Transaction Advisor to Validate Island View Strategy
Transnet National Ports Authority (TNPA) has appointed Zutari , a leading infrastructure and advisory firm, as the Transaction Advisor to validate the Island View Precinct Strategy and implementation plan for the Port of Durban. This appointment is a pivotal move aimed at transforming the liquid bulk sector in South Africa while ensuring security of supply.
Over $370 Million Secured in Engineering, Procurement, and Construction Deals at Afreximbank’s Lagos Workshop
During the recently held African Export-Import Bank (Afreximbank) Intra-African Engineering, Procurement and Construction (EPC) workshop in Lagos participants formalised business deals totalling over US$370 million, a significant step towards empowering African contractors.
Opinion Piece: Public-Private Partnerships Can Help Revive South Africa’s Infrastructure, Unlocking Growth and Prosperity
South Africa is currently grappling with several major challenges such as unreliable water and electricity supply and ageing transportation infrastructure, resulting in some municipalities falling short on service delivery and being placed under administration.
One of the most crucial issues facing water boards and utilities across South Africa is ageing infrastructure, which needs to be replaced urgently as it is beginning to impact water supply. Despite a reduction in load shedding, the country still faces challenges with its distribution network, which has seen the introduction of load reduction in some areas that experience overload to protect outdated equipment and infrastructure.
By Mamiki Matlawa, Group Business Development Executive at ACTOM (Pty) Ltd
Investing in Tomorrow: SAICE's Insights on SA's Transportation Infrastructure Overhaul
As South Africa grapples with significant infrastructure challenges, Sekadi Phayane-Shakhane, the CEO of the The Geotechnical Division of SAICE (South African Institution of Civil Engineering) (SAICE), highlights the critical role of sustained investment in driving economic growth and improving the quality of life for citizens.
Sustained investment in South Africa’s transport infrastructure is critical for several reasons. While providing for the basic needs of communities to access work, education and healthcare, robust transportation networks enhance the movement of goods and services, making it possible for businesses to operate efficiently and access markets, ultimately facilitating trade and commerce as well as driving economic growth, essential for local and international trade.