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Dramatic changes in southern Africa
There are grandiose new transportation plans in the pipeline for southern Africa. If all these plans come to fruition over the next few years, the transportation network in the region will change dramatically - with significant economic transformation implications as rail- and port networks are upgraded and expanded.
Railroads and ports in the region appear to be destined for a major overhaul and improvement, driven by the expected increase in the transportation of cargo as new mining and related activities in different countries in the region come on stream over the next couple of years.
The expected increase in tonnage of raw material such as coal and iron ore destined for international markets will only further slow down the already congested ports of Durban, Richards Bay and Dar-es-Salaam in Tanzania. Time and money lost is already great, and will only increase. The most viable option is alternative ports and better railroad networks and, by the look of things, that is happening.
Mozambique
The country is blessed with excellent natural ports, but they are presently not operating to full capacity.
The Mozambican government has decided to rehabilitate and improve the current inadequate transportation infrastructure.
The port of Beira - the final link in a chain known as the Beira Corridor - is operating at only 40% capacity and is costing Mozambique in terms of foreign revenue. To turn around the situation, work has already begun to improve facilities, and work to deepen the port and attract bigger vessels will soon get under way. Once completed, it will assist in the export of coal from the inland province of Tete where Brazilian and Australian coal companies are major investors in the estimated 2.4 billion tonnes coal reserves.
To open up the interior and improve access to the coal fields and neighbouring states, a consortium of Brazilian and Portuguese firms was given the green light to build a new bridge over the Zambezi River at a cost of US$132 million. The new bridge, to be completed by January 2014, will replace the Samora Machel Bridge which has become completely inadequate.
The Mozambican government has set its sights on more than just Beira. Also approved is the development of a fourth deep-water port at Techobanine in Mozambique's southernmost district of Matutuine, at a cost of US$207m. It will eventually be bigger and deeper than the three existing ports of Maputo, Beira and Nacala.
Money has also been secured to build a new railway line in northern Mozambique to link the coal-rich Moatize mines to the Nacala deep-water port by 2015.
Over the next 20 years, Mozambique will spend a further US$750m to improve the Maputo/Matola port to make the Maputo Corridor - which includes the Maputo-Witbank motorway (N4), and the Ressano Garcia and Goba railroads - a more sustainable route for importers and exporters on the sub-continent.
Botswana
Landlocked Botswana, with coal fields coming into production with estimated reserves of 212 billion tonnes, recently signed a memorandum of understanding with Mozambique to develop the deep-water port at Techobanine.
A new 1 100-kilometre railway at a projected cost of US$7 billion, linking Techobanine to Botswana and passing through Zimbabwe, forms part of the agreement. The preparatory phase, including the mobilisation of finance, should be completed by the end of 2011; and the first phase of construction will take place between 2012 and 2015.
Botswana believes the Techobanine project will greatly improve imports and exports, significantly reduce dependency on South African ports, as well as cut unnecessary time loss due to port congestion in South Africa.
Namibia
On the Atlantic seaboard, Namibia is planning to invest more than US$1bn over the next decade to upgrade its transport infrastructure and present an improved port at Walvis Bay as alternative to existing ports in the region.
By using the port of Walvis Bay and the Trans-kalahari highway, cargo from Europe and the Americas destined for Gauteng can reach its destination cutting off five days extra sailing to Durban and avoid further possible delays.
Zambia, the Democratic Republic of Congo, Botswana and even South African mining houses will certainly look at an upgraded Walvis Bay port as an alternative to Richards Bay and Dar-es-Salaam for coal and copper exports. Compared to current trends it will, under certain conditions, be cheaper and faster.
The Botswana coal fields stands to benefit from the planned 1 500-kilometre Trans-kalahari railway line project. When completed in five years' time at an estimated cost of US$6bn, Botswana will in addition to existing ports have the choice of Walvis Bay or Techobanine in Mozambique once the latter is operational.
Zambia
When the Tazara or Tanzam railroad was built with Chinese help in the 1970s, it was fondly called the Uhuru railway and symbolised Africa’s hopes and dreams for a better future after colonialism. Sadly, it never lived up to expectations.
Against the background of the expected increase in southern Africa of all kinds of business activities, particularly mining, Zambia is trying yet again to get the ailing Tazara railway properly functional.
Linking the Tazara railway line with other existing and new railroads in southern Africa, and improving its capacity and management, it is believed that Tazara will fulfill the hopes expressed when it was first built.
By all indications, exciting times await southern Africa. The mining sector appears to be on the brink of major developments, but success depends heavily upon sufficient and efficient infrastructure. Plans to rehabilitate and improve the transportation networks in southern Africa and the enthusiasm that is displayed is infectious. The time may just be arriving for southern Africa to develop its true economic potential.
