Railways in Sub-Saharan Africa (SSA)

Transcription

1 Railways in Sub-Saharan Africa (SSA) Railway lines in SSA Average rail transport volume in SSA from in billion ton-kilometers (tkm) Republic of South Africa: 106 billion tkm Is more than 6 times the rest of SSA combined

2 Overview of Sub-Sahara African railways at the end of 2008 there were 47 operating railways in 32 countries in Africa (incl. privately owned mining lines): poor level of network connectivity the total African rail network size is around 69,000 kilometers; 55,000 kilometers of it is currently being operated: low network density in SSA, almost all of the network is single track, almost all of network is Cape or Metric gauge (excl. Gabon). 70% of the network is less than 1000km from the coast. almost all lines originate from a sea port. 2

3 Are Railways the weakest link in the transport chain? Despite large investments, the revival of railways sector in sub-saharan Africa is fragile: Limited capacity Poor reliability Weak financial performance Poor infrastructure density Under-performing concessions

4 A room for improvement? freight passengers Volume of freight transported by rail in 2010 [billion ton-km] Passengers transported by rail in 2010 [billion passkm] Asia and Oceania - 37% America - 33% Europe* - 28% Asia and Oceania - 75% Europe* - 22% Africa - 2% America - 1% Africa - 2%

5 The rail challenges (1) 1. In the African context 2. In the design of railways Low traffic volumes Low productivity of assets Low productivity of labor Strong competition from road Inadequate network connectivity projects Underestimation of investment needs Overestimation of traffic volumes Undercapitalization Inadequate human resources Inadequate marketing approach to transport demand Shortfall in transport integration (logistics) strategy

6 The rail challenges (2) 3. In Governance Inadequate regulation Inadequate concessions contract and fees Unrealistic expectations Shortfall in financial obligations Shortfall in indicators and incentives for the economic sustainability of projects Inconsistencies or weaknesses in transport policies

7 A way out? : Adjust the design of rail projects to market demand Focus on delivering predictable rail services. Create value in the logistics chain, investing in intermodal operations Create sustainability : long term maintenance of infrastructure and reliability of operations. Position rail prices in a competitive environment. Support & strengthen rail regulation to guarantee open-access and competition in transport operations.

8 A way out? Prioritize & Focus Investments 1. Value for money, affordable and sustainable investment levels need to prioritize and target to minimize infrastructure costs and operating cots need to adjust investment to market potential 2. Focus on improving existing operating standards/costs, not on new, expensive or non-proof schemes labor productivity transport productivity maintenance programs

9 A way out? Develop businessoriented models for rail projects Re-assessing transport market High end profitable segments : containerized goods, minerals Low end non solvable segments : non bulk-non container general cargo, passengers Re-assessing rail operations and optimize High efficiency, low cost: containerized goods, minerals Low efficiency, low cost: bulk freight, long distance Low efficiency, low revenues and high costs: non bulk/local freight, passengers Re-assessing the position of the rail in the transport sector: an element of the logistics chain for businesses and industries an element of the intermodal transport system for freight an element of social and human development for passengers services

10 The case for Tanzania: main issues Inadequate marketing approach to transport demand (products & clients) Inadequate logistics connectivity (port & platform) Poor condition of the railways infrastructure Inconsistencies or weaknesses in transport policies in terms of access to the infrastructure and the logistic integration.

11 The case for Tanzania: integrated logistics? Project objective: rehabilitating the infrastructure to create reliable block train operations. Provide intermodal integration tools (port and platform). Develop a rail product that answer market demand for containerized cargo (shippers and freight forwarders). Align the project to BRN objectives to create synergies and harmonize investments and funding.

12 Tanzania Intermodal and Rail Project (TIRP) : key objectives Rehabilitate existing infrastructure and upgrade its capacity to 25 t/axle; Reconstruct the logistic chain and upgrade rail-port and rail-road connections; Set-up performance indicators for rail and logistics operations. Strengthen institutional capacity to increase sector performance and implement competitive framework.

13 World Bank : key strategic path for future rail projects Ensure rail infrastructure is fully integrated to road and maritime modes; Ensure business model is coherent with accessible market segments (incl. mining) and adjust forecasts to realistic level; Link funding and project implementation to performance indicators for the entire logistics chain. Strengthen institutional capacity to increase sector performance and implement competitive framework.