DEVELOPING SUSTAINABLE TRANSPORT SOLUTIONS IN AFRICA

1. DEVELOPING SUSTAINABLE TRANSPORT SOLUTIONS IN AFRICA REGIONAL APPROACH TO RAIL DEVELOPMENT PROJECTS ENGINEER L.A. MUKWADA L A Mukwada:Windhoek 09/09

2. PRESENTATION OUTLINE • Introduction : SARA • Why A Regional Approach To Development Projects • Way Forward L A Mukwada:Windhoek 09/09

3. INTRODUCTION :SARA • SARA • Formed in April 1996 and provided for in the SADC Protocol on Transport, Communications and Meteorology (Article 13.13) • Mission • Facilitate Railway Industry being a top performer in the transport sector • Key Objectives • Promote safe, integrated, cost effective, predictable, one stop, seamless service • Member countries • Botswana Railways (BR),Beitbridge Bulawayo Railway (PVT) Limited (BBR), Caminho de Ferro de Benguela EP (CFB),CCFB, Portos E Caminhos de Ferro de Mocambique EP (CFM), Central and East Africa Railway Company Limited (CEAR), National Railways of Zimbabwe (NRZ), Societe Nationale des Chemins de Fer du Congo (SNCC), Transnet Freight Rail (TFR), Swaziland Railway (SR), Tanzania Zambia Railway Authority (TAZARA), Railway Systems of Zambia (RSZ), TransNamib Railway Corporation, Zambia Railways Limited (ZRL) • Tanzania Railway Corporation (TRC), Caminho de Ferro de Luanda (CFL), Caminho de Ferro de Mocamedes (CFM), COMAZAR • Eqstra Industrial Equipment (EIE), Manica Africa (MA), Railway Safety Regulator of South Africa (RSR), Morewear Industries (MI), South African Railway Commuter Company (SARCC), InfraDev South Africa L A Mukwada:Windhoek 09/09

4. SARA STRUCTURE SARA BOARD SARA EXCO Secretariat Policy, Investment & Finance Technical Business Management Corridor Management Groups L A Mukwada:Windhoek 09/09

5. WHY REGIONAL APPROACH TO RAIL DEVELOPMENT PROJECTS • Current Scenario In The Region • Challenges With Current Scenario • Two Perspectives To A Regional Approach L A Mukwada:Windhoek 09/09

6. CURRENT SCENERIO ON DEVELOPMENT PROJECTS IN THE REGION • Planning of development projects largely uncoordinated • Designs, specifications and standards uncoordinated, though sometimes similar by virtue of historical origin • Source of equipment sometimes dependent on source of funding • Implementation done individually by the Railway Administrations • Financial structuring done individually by Railway Administrations – usually Government driven • Even Multilateral Agencies historically have largely approached projects on a country by county basis through Governments • Sometimes competitive approach to development projects L A Mukwada:Windhoek 09/09

7. CHALLENGES WITH CURRENT SCENERIO • Diverse types of rolling stock • Cross border movements affected : crews, spares • Duplication of spares and inability to share • Potential for duplication of expensive equipment, e.g. mechanized track maintenance equipment, breakdown cranes • Different standards of permanent way • Unmatched trailing and axle loads • No ICT systems interface • Cargo tracking, wagon interchange accounts affected • Duplication of facilities e.g training schools, repair centers for specialized equipment L A Mukwada:Windhoek 09/09

8. NEED FOR A REGIONAL APPROACH • Two perspectives • Internal Operations • Movement of international traffic L A Mukwada:Windhoek 09/09

9. INTERNAL OPERATIONSCHALLENGES FACED • Lack of resources, i.e. locomotives and wagons • Poor turnaround at terminal stations • Poor telecommunications, trains control and permanent way infrastructure • Underdeveloped ICT systems and infrastructure • Lack of capital investment L A Mukwada:Windhoek 09/09

10. INTERNATIONAL TRAFFIC • Issues Raised By Customers • Current Challenges With Cross Border Traffic • Way Forward : SARA’s Approach L A Mukwada:Windhoek 09/09

11. ISSUES RAISED BY CUSTOMERS • Poor customer interface and failure to provide information on movement of cargo • Railways work in silos • Long transit times resulting in long cash conversion cycles • Need to simplify operations to deliver single value chain • Lack of joint marketing and uncoordinated tariffs • Take too long to give quotations, and have to phone each railways individually for a quotation • Need to improve security of sensitive cargo and arrange insurance • Need to develop multipurpose rolling stock • Need for service level agreements with penalties • Big demand for rail service but failure to perform pushing traffic to road • Railways failing to exploit competitive advantage over road • Customers willing to invest in railways to improve the service L A Mukwada:Windhoek 09/09

12. CURRENT CHALLENGES WITH CROSS BORDER TRAFFIC • Combination of slides 7 and 9 L A Mukwada:Windhoek 09/09

13. RAIL MARKET SHARE • International Traffic • SARA estimates market share for the region has come down from 30% down to 10% compared to road • Local traffic – Zimbabwe: Contribution of Rail To Transport GDP L A Mukwada:Windhoek 09/09

14. SARA’S CORRIDOR APPROACH • SARA Corridors • Corridor Objectives L A Mukwada:Windhoek 09/09

15. Dar es Salaam Beira TRC Central Ressano Garcia Limpopo Richards bay Plumtree Namibia Beitbridge Goba Nacala Maputo SARA CORRIDORS L A Mukwada:Windhoek 09/09

16. CORRIDOR CONCEPT OBJECTIVES • Creation of a cost effective and predictable one stop seamless service • Reducing cost of international haulage through efficient optimisation and sharing of resources • Service design to customer requirements • Improve predictability and safety of railway transport services • Efficient communications between the railways and its customers and amongst the railways themselves • Provision of a cost effective and reliable track • Joint marketing initiatives L A Mukwada:Windhoek 09/09

17. HOW? • Single interchange points and single inspections • Cross-border working of locomotives (through working) and crews • International Trains Time table and joint trains planning • Matching trailing loads and no breaking up of trains • Communication across borders on train movements and wagon tracking • Through billing and revenue collection at a single point • Sharing of expensive specialized equipment e.g. breakdown cranes, track maintenance equipment • Joint marketing and related tariffs • Common technical standards e.g. wagon inspection L A Mukwada:Windhoek 09/09

18. WAY FORWARD • For Railways to regain market share various strategies will need to be applied, but all of which must be underpinned by recapitalization • Irrespective of whether Government or privately owned, participation in a regional approach to investment will be beneficial, for reasons discussed above L A Mukwada:Windhoek 09/09

19. AREAS OF DEVELOPMENT PROJECTS • Infrastructure • Information Technology • Traction Equipment and Rolling Stock • Operations • Human Resources L A Mukwada:Windhoek 09/09

20. INFRASTRUCTURE • Development of new lines/corridors-based on some agreed rational that balances national interests and cost efficiency to the customer. Ultimately develop a Regional Master Plan for adoption by SADC • Permanent Way-set standards to guide development/upgrading for trailing and axle loads, curves, gradients, rail specifications and even gauge in the long term, length of sidings etc • Joint planning and synchronized implementation of projects by corridors to maximize benefits L A Mukwada:Windhoek 09/09

21. SIGNALING AND TELECOMMUNICATIONS • Multiplicity of options for trains control and management systems, and numerous technologies now available. Coordinated approach and harmonized standards required to facilitate running of cross border trains and through working e.g. sharing of radio frequencies, visibility on GPS systems • Integrated Telecoms Infrastructure Development e.g. participation in optic fibre projects on a corridor basis L A Mukwada:Windhoek 09/09

22. Information Technology • Harmonized acquisition/development of software packages • Systems that talk to each other and share information e.g. wagon tracking, hire accounts, tariffs L A Mukwada:Windhoek 09/09

23. Equipment • Standardized specifications for rolling stock and harmonized designs especially on fast wearing components • Harmonized designs and specifications for locomotives to facilitate sharing and use by different crews, sharing of spares/ creation of common pool • Rationalized procurement of expensive specialized equipment that can be shared in the region at agreed rates L A Mukwada:Windhoek 09/09

24. HUMAN RESOURCES • Harmonize standards for training of operational staff, e.g. crews L A Mukwada:Windhoek 09/09

25. IMPLEMENTATION • Top-down approach :Governments via SADC • Bottom-up approach: Technocrats via SARA • Financing strategies L A Mukwada:Windhoek 09/09

26. SARA ACTION PLAN • Technology Committee Action Plan • Developing regional standards • Assess condition of rolling stock and infrastructure and establish data base for rolling stock in the region • Explore cost effective trains control systems and recommend way forward • Evaluate current wagon tracking systems recommend way forward for regional system • Enable electronic flow of documents in the region • Corridor Management Groups L A Mukwada:Windhoek 09/09

27. REGIONAL APPROACH TO PROJECT FINANCING • Customers willing to directly participate in financing railway projects, for immediate benefits • NRZ and RSZ experience • Pool wagons, especially specialized ones, rehabilitate with customer financing and give dedicated service. Similarly for locomotives • Structured finance against revenues from identified major customers with each railway in a particular corridor participating • Multilateral Agencies funding : regional/corridor approach e.g. RSIS L A Mukwada:Windhoek 09/09

28. THE END THANK YOU L A Mukwada:Windhoek 09/09