Transport Solution 26 /10 /

Transcription

1 Transport Solution 26 /10 /

2 Presentation Layout Global overview Infrastructure & Transport Challenges Elements of Vision 2025 Investment option Strategy Benefit Critical Success factor Conclusion

3 Global Customer Requirements for Rail/Road Heightened pressure for world-class competitiveness Efficient rail is a competitive advantage for customers to get product to market 5 R s of Rail: Right Place Right Time Right Quantity Right Cost Right Condition Rail/Road is an integral part of the total supply chain rail operators in Africa must think outside the box

4 Rail / Road and Port Issues Traffic Congestion around ports Missing links or connectivity Poor trade partnership Lack of Connectivity and integration with Ports Lack of funds in financing Poor infrastructure and Rolling stock Lack of human development

5 AFRICA Km railway lines per country Total: km. (35 countries - September 2007) MALAWI MAURITANIA ETHIOPIA COTE D'IVOIRE GABON MALI BURKINA FASO TOGO BENIN ERITREA SWAZILAND DJIBOUTI GUINEA GHANA SENEGAL R.O.CONGO BOTSWANA MADAGASCAR The railways 35 railway countries 7,5% of the world total railway network 38% of narrow gauge China: Russia: India: SUDAN D.R.CONGO (ZAIRE) EGYPT ALGERIA NIGERIA MOZAMBIQUE TANZANIA ZIMBABWE ANGOLA NAMIBIA TUNISIA KENYA ZAMBIA MOROCCO UGANDA CAMEROON SOUTH AFRICA Km

6 The world and the African market 20.4% of the total land area 14% of the world population Half of the worlds landlocked countries More than 50 countries and several regional organizations Not homogenous (development levels, opportunities etc)

7 Key Drivers Transportable GDP Growth Economic Growth Containerisation Shifts in market flow patterns Market Liberalisation However, road has been the main beneficiaries of this growth

8 Elements of an Africa 2025 Transport Vision: More Rail for Africa Market Adaptation Skills Development Investment Vision 2025 Regional Inter- connectivity Operational Efficiency Policy Frameworks Private sector participation Modal Co-operation operation

9 Focus area: Projects 1. Operations and Information Technology 2. Human Resources 3. Infrastructure and Equipment 4. Marketing

10 Private sector participation Socio-economic Long term ROI not purely financial National / Strategic Development Funding and affordability will always be a challenge Capacity typically lags demand Often lack skills Purely commercial Reliance on anchor commodities Shorter term Integrated rail system sustainability not primary imperative Access to funds Rapid development Attracts skills and talent PPP Strategic Issues to be considered by Vision 2025 Impact of Rail Concessionning future sustainability; corridor management; rail system integration; need to separate infrastructure and operations Pursue Opportunities for PPP s - Wagon investment schemes, Intermodal Terminals, Outsourcing non-core activities, Advanced Train Technology, Major Infrastructure Development

11 Strategic Benefits of PPP s Railways can achieve the following Re-investment in infrastructure and equipment Integration of activities and services Cooperation between railway companies Establishment of multi-modal supply chains and transnational railway corridors

12 Elements of Rail / Road Investment Connectivity Standardize applications and platforms Foster many-to-many collaboration Enable trade exchange Execution Improve transportation, distribution, inventory, and order management Expedite financial settlements Measure performance results Collaboration Share real-time data with key customers, suppliers and partners Align individuals and organizations Standardize processes and practices Freight Growth Optimization Implement new tools and processes Eliminate inefficiencies Leverage cost savings across communities Speed Increase responsiveness Improve adaptability Access information in real time Visibility Track inventory flow Update order status in real tim Manage incidents

13 Rail/Road has a role in Creating a Seamless Supply Chain A system of integrating logistics players and customers through a seamless process supported by a Customer common technology platform Loaded Truck Offloads Empty Truck Rail Terminal Goods Loaded on Wagons & Departs Port Train Offloads at port Truck Depot Rail Cargo on Vessel Customs Seamless process Common Technology Platform

14 SADAC Benefit from Vision 2025 Rail Industry Environment Reliable, Safe, Sustainable Scheduled Railway Point to Point Service Delivery No frills, Low Cost and Efficient Focus on chosen corridors (SA and SADC) Enable Multiple Rail Operators Enable Feeder Line Concessions Relinquish marginal lines Efficiency Performance

15 Malaw i Strategic Rail corridors in SADC 60% of Mineral Deposits in Southern Africa Democratic Republic of Congo United Republic of Tanzania East-West Connectivity Angola Namibia Zambia Botswana Zimbabwe Mozambique SADAC must focuses on integration of strategic corridors through integrated rail operations with Southern African Railways to maximise Infrastructure Madagascar Swaziland South Africa Strategic Corridors

16 Malaw i SADC Growth GDP Growth ; Corridor Market GDP Growth ; Corridor Market Sulphuric Acid, Diesel, Copper & Sugar GDP Growth ; Corridor Market Cement, Petrol, Diesel, & Sodium Carbonite GDP Growth ; Corridor Market Zinc, Cement & Maize GDP Growth ; Angola Namibia Democratic Republic of Congo Zambia Botswana South Africa Zimbabwe United Republic of Tanzania Mocambique Swaziland GDP Growth ; Corridor Market Copper, Sulphur & Diesel GDP Growth ; Corridor Market Containers Mauritius GDP Growth ; Corridor Market GDP Growth ; Corridor Market Coal, Sugar & Maize GDP Growth ; Corridor Market Ferrochrome, Coke, granite, Petrol & Diesel GDP Growth ; Corridor Market Anthracite, Pulpwood

17 Systemic Cost Reduction Model Efficient Rail Trans. System Increased Traffic Improved Market Share Corridor Density Low operating cost

18 Critical Success Factors Relationships with transport partners Readiness to form joint venture Involvement all key stakeholders Communication and sharing of information Joint opportunity identification Dedicated project and team members.

19 Conclusion African Railways must have a common vision to implement vision 2025 Integrated and coordinated development Development, Attraction and Retention of Skills Infrastructure investment Rail resources are strategic need to be nurtured to be sustainable

20 Thank you. Stanley Mkoko Transport Sector Head NEPAD Business Foundation