East African Community: Regional Logistics & Infrastructure 2018 Convention

1. GLOBAL LOGISTICS CONVENTION, 2018 FREIGHT LOGISTICS: THE EDGE TO COMPETITIVENESS Updates on Regional Transport Infrastructure Initiatives and Projects: Opportunities for the Private Sector Jovin J. Mwemezi Corridor Development Expert East African Community Secretariat jmwemezi@eachq.org 17th – 18th Sept. 2018 Kampala, UGANDA One People, One Destiny

2. Outline • Introduction • EAC Heads of State Retreat on Infrastructure • Implementation of Multinational Road Projects and OSBPs • Harmonization of Frameworks and Standards • Corridor Development Initiatives in EAC • Railway Sector Development • The Tripartite Transit and Transport Facilitation Project • Strategic Approach for Infrastructure Delivery • Opportunities for the Private Sector One People, One Destiny

3. Introduction Overview of the East African Community (EAC) • EAC is Regional Intergovernmental organization of the Republics of Burundi, Kenya, Rwanda, Uganda, South Sudan and the United Republic of Tanzania with its Head Quarters in Arusha, Tanzania. • Region has a population 146m people; covers 1.82m sq. km; has a GDP USD 147.5 billion and Av. GDP per capita USD 1,014 • Mission: To widen and deepen economic, political, social and cultural integration in order to improve the quality of life of the people of East Africa. RSS Uganda Kenya Rwanda Burundi Tanzania One People, One Destiny

4. Introduction cont. EAC State of Transport Infrastructure • Infrastructure and logistics sub-sectors remain the prime movers of the socio-economic development and enabler of regional integration • Africa Infrastructure Country Diagnostic results show that investment in infrastructure accounts for more than 50% of recent economic growth in Africa. • Spatial distribution and diverse endowments in the region makes it prudent for EAC Partner States to develop multi-country infrastructure to facilitate cross border movement of people, goods and services • Notable progress in EAC with respect to realizing priority regional infrastructure projects to integrate and interconnect the EAC region include: • Most of roads along the EAC major corridors are paved • Revitalization of railway infrastructure and services is ongoing • Port capacity expansion and service improvement is ongoing • Most borders are equipped with OSBP facilities • Ongoing harmonization of regulatory frameworks, standards and specifications One People, One Destiny

5. Introduction cont. Road transport Infrastructure in Africa EAC is part of a big African Dream • Isiolo – Mayole is completed • Dodoma – Babati is paved

6. EAC Heads of State Retreat on Infrastructure Development Background: • Development of Transport Infrastructure is championed at highest political level by the EAC Heads of State • EAC Heads of State have institutionalised their retreat on infrastructure development and financing • Four retreats have been held; 2008, 2012, 2014 and 2018. • Heads of State priority infrastructure projects have been identified in railways, roads, ports, energy, inland waterways, civil aviation and soon ICT to be included One People, One Destiny

7. Investment Requirement for HoS Projects • Implementation of the 286 identified priority infrastructure projects and programs requires an investment amounting to USD 78.730 billion over the next 10 years and beyond One People, One Destiny

8. Flagship Projects cont’

9. Flagship Projects cont’

10. Flagship Projects cont’

11. Multinational Roads and OSBPs Projects in EAC EAC has mobilized resources for the following multinational projects • Athi River – Namanga – Arusha (TZ/KE) – 240 km construction completed in 2012 • Arusha – Holili – Voi Road (TZ/KE) – 260 km studies completed and construction ongoing • Malindi – LungaLunga & Tanga – Bagamoyo Roads (TZ/KE ) – 400 km Feasibility Studies and Detailed Designs completed, fund mobilization for construction ongoing • Lusahanga – Rusumo(92 km) / Kayonza – Kigali (70 km) (TZ/RW) Feasibility Studies in progress • Nyakanazi – Kasulu – Manyovu(250 km) / Rumonge – Rutunga – Bujumbura (78km), (TZ/BDI) studies in progress • Masaka –Mutukula/Mutukula-Kyaka & Bugene – Kasulo- Kumunazi • 11 OSBPs are fully operational and 4 others are at different phases of development Partners in development of these frameworks include WB, AfDB DFID, NEPAD-IPPF, JICA & TMEA

12. Harmonization of Frameworks and Standards EAC has harmonized several transport and trade related policy frameworks and standards including: • EAC Vehicle Load Control Act, 2016 • EAC One Stop Border Posts Act, 2016 • Lake Victoria Transport Act, 2007 • EAC Customs Management Act, 2004 • EAC Vehicle Load Control (Enforcement Measures) Regulations, 2017 • EAC Vehicle Load Control (Vehicle Dimensions and Axle Configurations) Regulations, 2017 • EAC OSBP Regulation, 2017 • Harmonized Standards and Specifications for Road Designs • EAC Cross-Border Electrification Policy has been adopted by the Council and is under implementation • Harmonization of Driver Training and Testing – Curriculum for Drivers of Large Commercial Vehicles (Passenger and Freight) developed and implementation has commenced • Implementation of SOLAS Convention on Weight Verification Partners in development of these frameworks include JICA & TMEA One People, One Destiny

13. Corridor Development Initiatives • EAC has prioritized development of regional corridors and corridor links as paths of development through trade and transport facilitation • Four Corridor Management Institutions are domiciled in EAC namely • Central Corridor Transit Transport Facilitation Agency (CCTTFA) • Norther Corridor Transit and Transport Coordination Authority (NCTTCA) • Dar Corridor Committee (DCC) and • LAPSSET Corridor Development Authority • Corridors are multimodal transport routes comprising ports, rail, road, inland waterways, OSISs/RSSs and OSBPs • The first three berths out of planned 32 berths at Lamu Port are near completion, the first berth to be delivered in June 2018 • PPP arrangement envisaged in implementation of the LAPSSET corridor where feasible • Regional Electronic Cargo Tracking System implemented on the Northern Corridor to enhance trade and transport facilitation One People, One Destiny

14. Integrated Corridor Development in EAC • EAC has partnered with the World Bank to develop and implement an Integrated Corridor Development Program aimed at facilitating intermodal interconnectivity which was endorsed for implementation by EAC Heads of State in 2014 • The program is packaged into series of projects covering Lake Victoria Transport Project (LVTP), Lake Tanganyika Transport Project (LTTP), Improvement of the Surface Transport System and Institutional Capacity Building Interventions • The Program has attracted interest of several collaborating partners including WB, TMEA, JICA, EU, AfDB, DFID, CCTTFA, LTA etc. • More than USD 1 billion has been committed for supporting the Integrated corridor development initiative One People, One Destiny

15. Railway Sector Development Standard Gauge Railway • In 2012 EAC Heads of State agreed that all new railway projects should be standard gauge • Construction of the Standard Gauge Railway is at different phases of development both the Northern and Central Corridors • The Northern Corridor SGR Section between Mombasa and Nairobi has been completed and became operational in June 2017 • Constructions of the Central Corridor SGR between Dar es Salaam and Dodoma is in progress One People, One Destiny

16. The Tripartite (COMESA-EAC-SADC) Collaboration in Transport • The COMESA, EAC and SADC are collaborating in implementing the Tripartite Transport and Transit Facilitation Program (TTTFP) with EU Funding under EDF 11 expected to commence in August, 2017 • Overall Strategic Objective for TTTFP is to facilitate a more competitive, integrated and liberalized transport market in the Tripartite region with four result areas namely: • Vehicle Load Management Strategy implemented • Transport registers and Information platforms (TRIPS) operational • Harmonized vehicle regulations and standards implemented • Efficiency of regional corridors improved

17. Strategic Approach for Infrastructure Delivery Successful delivery of the EAC Infrastructure Plan will depend on two pillars Regional coordination and Capacities Resource mobilization /Enabling environment Coordinated & Accelerated Project Implementation One People, One Destiny

18. Opportunities for the Private Sector • The Regional Infrastructure and Logistics Sectors provide diverse opportunities for the private sector in both hard and soft infrastructure including: • Providing preparatory studies for regional infrastructure projects and OSBPs – local content still very low • Infrastructure Development – HoS Priority Projects, Intermodal Projects, Toll Roads/bridges, Road Side Stations/Truck Packing areas/Rest Areas etc • Operationalization of the Vehicle Load Control Act and the SOLAS Amendment • Transport and Logistics facilitation beyond freight forwarding e.g. 3rd, 4thLogistics Service Providers and Multimodal Transport Operators, driver training etc. • Tapping into the blue economy value chain given the regional natural endowments i.e. LNG Shipping and Crude oil Shipping, MET and Crew Supply EAC welcomes the opportunity for partnership the Private Sector in Widening and Deepening the Regional Integration for the wellbeing of East Africans

19. Thank you For Your Attention “Asanteni Sana” One People, One Destiny Web: www.eac.int Twitter: @Jumuiya