PROJECT CARGOSOUTHERN & EAST AFRICA
Namibia offers the project cargo market uncongested roads, the absence of bridges, and very few height and weight restrictions, according to Namport.
rail links between Kenyan ports and the markets they serve in the regional landlocked economies of Uganda, South Sudan, Rwanda and Burundi. Tanzania has also signed a
USD7.6 billion loan agreement with the Export-Import Bank of China (China EXIM Bank) to build a standard gauge rail corridor linking Tanzania with regional neighbours Uganda, Rwanda, Burundi and Congo. China also signed a memorandum of
understanding (MoU) with the African Union in January 2016 to help build railways, roads and airports. Projects include a coastal road in Nigeria (USD13 billion), the building of a new standard gauge rail line between Nairobi and Mombasa (USD3.8 billion), and a rail link between Addis Ababa in Ethiopia to the Red Sea port of Djibouti (USD4 billion). Greiner believes: “East Africa is where it
is happening right now from a project cargo growth point of view; it is showing far more potential than West Africa.”
Beyond the port The battle against red tape, crime, harassment and border inefficiencies has yet to be won in the regions. Inland transport remains expensive, border crossing procedures inefficient and these, combined with roadblocks, make it difficult to expand the hinterland. Hijackings are also a challenge in South Africa. According to the World Bank’s ‘Doing
Business’ 2017 report, completing border compliance procedures takes an African exporter 108 hours and costs USD542 on average, compared with a global average of 64 hours and USD389. A speaker at an October 2016 export
workshop held in Johannesburg alleged that some companies “had to fill out around 640
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forms just to transport goods from South Africa to the Democratic Republic of Congo, with a six-week lead-time for one shipment.” But doing business in the sub-Sahara
African countries of Uganda, Kenya, Mauritania, Senegal and Benin is getting better, and is best in Mauritius, Rwanda, Botswana and South Africa, according to the report. Kenya, Nigeria and Uganda still have
some way to go to improve their rankings, as do the lowest ranked countries – Eritrea, South Sudan and the Central African Republic. A lack of power continues to hamper
Africa’s overall economic development. However, according to Africa House director Duncan Bonnett: “There is much regional, national and subnational opportunity unfolding from Southern to East Africa, which is becoming an energy corridor.” South Africa is still considering nuclear
power as a viable energy source and in December 2016, South African power utility Eskom invited bids for the building of six nuclear reactors as part of the government’s push to increase nuclear capacity, despite the concerns of campaign groups, economists and the Council for Scientific and Industrial Research (CSIR).
East Africa is where it is happening right now from a project cargo growth point of view; it is showing far more potential than West Africa.
– Lars Greiner, Greiner Mendi & Associates
The CSIR found that 70 percent solar
photovoltaic (PV) and wind power, backed up by natural gas, would be the cheapest for the South African power system and would meet its needs up to 2040 – without investment in additional coal or nuclear power stations. It argued this ‘re-optimised’ mix would be significantly cheaper by 2040 than the business-as-usual scenario, which relies more on coal and nuclear.
Nuclear logistics The massive amount of project cargo required to build the proposed chain of nuclear power stations is, however, unlikely to start moving any time soon as the South African Department of Energy’s draft integrated resource plan (IRP) has indicated that South Africa will not need nuclear power on stream until 2037. The IRP also paves the way for gas and renewables to provide the biggest chunk of new installed capacity by 2050. Kenya is looking towards geothermal
energy sources to meet its power requirements. Historically, it has relied on hydroelectric power but Kenya’s susceptibility to drought has stimulated interest in looking underground for a more reliable alternative. Over the past 15 years, Kenya’s geothermal output has rapidly increased from 45 MW to 533 MW, according to KenGen figures. This accounts for around half of the
power on the national grid, and the proportion continues to increase. The Olkaria field, just outside Nairobi, is the nation’s largest geothermal operation; a fifth major power plant is being added to the Olkaria field, at a cost of USD408 million through a loan from Japan, which will be fully operational by 2018.
January/February 2017
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