SADC/COMI/2013………

MEETING OF THE COMMITTEE OF MINISTERS RESPONSIBLE FOR TRANSPORT AND METEOROLOGY

SADC Regional Transport and Development Corridors: Progress and Status Report

16th October 2013

Elephant Hills Hotel, Victoria Falls

Zimbabwe

1.Progress Report on SADC Corridor Development and Transport and Trade Facilitation Programme

1.1Introduction

This report reflects activities and projects conducted by corridor states and respective stakeholders through individual, bilateral, corridor and regional initiatives or through different permutations of such initiatives.

The report highlights progress in the attainment of the following key outcomes:

(i)Legal Instruments for joint governance of corridors’

(ii)Institutional Frameworks for joint and coordinated management of transport corridors; and

(iii)The Development of critical corridor transport and logistics infrastructure

(iv)Implementation of simplified and harmonised trade and transport facilitation laws, policies, regulations, standards and systems.

1.2Corridors Cluster Concept

In order to facilitate joint planning, implementation, coordination, monitoring and reporting of regional trade, transport facilitation and implementation of infrastructure projects, SADC has configured corridors into“clusters”, that is, grouping of countries served by a set of corridors which share ports and or other transport and logistics infrastructure.

The "Corridor Cluster" is used as an organisational vehicle for consultations and convening technical and ministerial meetings that address the common issues across a set of corridors shared by countries. This approach has been motivated by the absence of formal and functional joint corridor management committees in the majority of corridors and the need to rationalise corridor institutions and meetings. The cluster approach will still allow Member States where justified to meet at specific corridor level or bilaterally as when necessary. The corridor clusters established in SADC are as presented in Tables 1-4 below.

Table 1: Western Corridors Cluster

Corridor / Port / Member States
Lobito/Benguela / Lobito / Angola, DR Congo, Zambia
Bas Congo / Matadi/Banana / DR Congo, Angola
Malange / Luanda / Angola, DR Congo
Namibe / Namibe / Angola, Namibia
Trans Cunene / Walvis Bay / Namibia, Angola, South Africa
Walvis Bay-Ndola-Lubumbashi (Trans Caprivi) / Walvis Bay / Namibia, Zambia, DR Congo
Trans Kalahari / Walvis Bay / Botswana, Namibia, South Africa
Trans Orange / Cape Town / Namibia, South Africa

Table 2: Eastern Corridors Cluster

Corridor / Port / Member States
Dar es Salaam Corridor / Dar es Salaam / DR Congo, Malawi, Tanzania, Zambia
Mtwara Development Corridor / Mtwara / Malawi, Mozambique, Tanzania, Zambia
Nacala Development Corridor / Nacala / Malawi, Mozambique, Zambia
Beira Development Corridor / Beira / , Mozambique, , Zimbabwe
Limpopo Development Corridor / Maputo / Mozambique, Zimbabwe

Table 3.Southern Corridors Cluster

Corridor / Port / Member States
Maputo Development Corridor / Maputo / Mozambique, Swaziland, South Africa
Manzini-Durban / Durban / Swaziland, South Africa
Maseru-Durban / Durban / Lesotho and South Africa
Phalaborwa-RichardsBay / RichardsBay / South Africa, Swaziland

Table 4:North South Corridor

Corridor / Port / Member States
North South Corridor / Durban / DRC, Botswana, Malawi, Mozambique, South Africa, Zambia, Zimbabwe

SADC/COMI/2013………

1.3Implementation matrix on Corridor Infrastructure Development and Transport and Trade Facilitation Programme

Cluster / Name ofCorridor / Legal Instruments and corridor Institutions / Infrastructure / Trade and Transport Facilitation Activities
Eastern Corridors Cluster
Draft Action Plan adopted at Officials levels / Dar es Salaam Corridor / i)Dar Es Salaam Corridor Constitution signed by corridor stakeholders-from Tanzania, Malawi and Zambia. DR Congo stakeholders not yet signed pending conclusion of MoU amongst corridor state parties.
ii)MoU amongst the state parties under discussion.
iii) Corridor institutions and Secretariat established, fully operational and meeting twice a year.
iv) DCC exploring alternative funding models, including user pay system, as current system of stakeholder contributions are not sustainable. / Port of Dar es Salaam
Port Master Plan adopted and under implementation includes new Single Point Mooring, expansion and modernisation of berths and construction of access roads.
Roads
Malawi:
A survey carried out in 2009 indicated that of the 606.7 kilometers on the Dar Corridor, 5.9% of the road network was in poor condition, 59.7% was in fair condition and 34.4% was in good condition.
Construction of the South Rukuru Bridge had been awarded under Japanese Grant Aid.
Zambia:
A survey of the road network indicated that of the 1107 kilometers from Nakonde to Kasumbalesa, 56% was in poor condition (between Nakonde and Serenje), 16% was in fair condition and 28% was in good condition.
Railways:
TAZARA
  1. Funding for infrastructure secured from China.
  2. Strategic plan under development with support from TMSA.
Border Crossings:
  1. Tunduma/Nakonde (Tanzania/Zambia) OSBP under development with support from TMEA and JICA. MoU signed between Tanzania and Zambia. Feasibility Study completed and design under consideration. Zambia sideborder infrastructure management […] previously outsourced to a private company has now revertedto government. […….]. Tanzania OSBP enabling law to come through EAC OSBP law. Zambia enabling law already enacted.
  2. Kasumulo/Songwe. (Tanzania/Malawi) Negotiations on-going with WB[…] for OSBP feasibility, design and construction.
  3. Kasumbalesa (Zambia/DRC) Zambia side infrastructure upgrade completed and operational through a concession. DRC infrastructure upgrades on-going through a concession. Border not designed as OSBP.Both governments are now considering development the border as an OSBP.
/
  1. DRC introducing single window processing at Kasumbalesa.
  2. Corridor Client Service charter under development.
  3. Corridor Authorised Economic Operator schemes under development.
  4. Corridor Performance monitoring system under development.
  5. Reduction, rationalisation and co-location of security and regulatory checkpoints under implementation in Tanzania road section.
  6. IBM under implementation with support from the USAID SATH at Songwe/Kasumulo
  7. Electronic data interchange project on-going using RADDEX and implemented with support from USAID COMPETE and SATH.
  8. Funding secured from […………..] WB for funding corridortrade facilitation activities.
  9. [……].

Mtwara Development Corridor /
  1. MoU signed by Mozambique, Tanzania, Malawi and Zambia
  2. Institutions provided under MoU but not operational.
  3. Meetings at Eastern Corridors Cluster level.
/ Ports: Mtwara and Mbamba Bay ports
Port Master Plan for the ports was completed in April 2009.
  1. The Tanzania Ports Authority is currently mobilizing funding for the implementation of the portmaster plan.
  2. 2742 hectares of additional land have been acquired for expansion of economic processing zones has been completed n 2008.
  3. AfDB has expressed interest to finance feasibility study and land use plans
  4. Currently the port is being used by oil and gas exploration companies as a supply base and the port is being modernized and expanded to accommodate the oil and gas requirements.
  5. Several investors are leasing land from the government for development of facilities. These investors are as follows
  6. Fertilizer plants which use gas as raw material;
  7. Cement producers who get raw materials within Mtwara Corridor;
  8. Agro-processing industries; and
  9. Energy companies to feed in the national grid.
Roads.
  1. Mtwara – Mbamba bay road
Feasibility study for the 824 km Mtwara – Mbamba bay Road Completed in 2004. Detailed Engineering Design Completed
  • Road has secured funding except from the Mbinga to Mbamba-bay Road Section 66 KM Funding Source are as follows:
  • Masasi – Mangata (56km) government of Japan
  • Mangata to Tunduru (137KM)-JBIC/Govt of Tanzania
  • Mangaka – unity bridge 70km Govt of Tanzania
  • Tunduru – Namtumbo 200 km JBIC/AFDB
  • Namtumbo –Songea 67km MCAT
  • Peramiho – Mbinga 78 km MCAT
  1. Heavy Capacity Ferry Will provide transport services connecting Mbamba-bay in Tanzania with Nkhata bay Malawi across Lake Nyasa and provide the continuation of Mbamba-bay - Nkhata bay Road.MOU between Tanzania and Malawi was signed in 2003 to define framework for development and implementation funding to carryout detailed design is being mobilized.
  1. Unity bridge 1&2
Unity Bridge 1. Location-across the Ruvuma river at Negumano near the border between Cabo Delgado and Niassa provinces in Mozambique with Mtambaswala on the Tanzania’s side. Construction of 720 m long bridge was financed by Govt. of Tanzania and Mozambique at total cost of $24.6million. Construction works commenced in November 2005 and completed in January 2010 and inauguration of bridge by Heads of State of Tanzania and Mozambique on May 2010.
Unity Bridge 2 -Mitomoni was commissioned in 2008 at total cost of Tanzanian shs. 1billion.
  1. Mtwara Gas Industry Project
To be established under EPZ/SEZ project near Mtwara port (industrial infrastructure for accommodating several industries based on natural gas mineral beneficiation agro processing, forest fisheries and tourism)
  1. Tanzania -Malawi interconnector
MOU is yet to be signed.
Lake
Integration of Lake Nyasa/Niassa/Malawi Ports
Feasibility study has not been done due to unavailability of funds
Nacala Development Corridor / i. MoU signed by Mozambique, Malawi and Zambia
ii. Institutions –[…………..] Project Steering Committees for Roads and OSBP established and operational.
iii. Meetings at Eastern Corridors Cluster level. / Port of Nacala
Nacala Port Master Plan which is being funded by JICA is in two phases:
Phase 1 (2009-2014):
  1. Rehabilitation of the fuel and general cargo terminal;
  2. Construction of a bypass road; and
  3. Procurement of equipment e.g. rubber tyre gantry cranes (RTGs), Stackers, etc.
Phase 2 (2014-2017): includes
  1. Dredging of the channel;
  2. Expanding storage space to 600, 000 TEU[1]s;
  3. Construction of new container terminal; and
  4. Construction of a coal terminal.
Projected funding requirements for the above is U$ 260 million. The Final report was submitted in [..] 2011.
Construction will be subject to the conclusion of an Environment Impact Assessment (EIA).
ICD
Zambia received funding from the European Development Fund, and undertook a feasibility and detailed design study for the development of the Chipata Inland Inter Modal Dry Port. The Final Formulation report was submitted to the Zambian Government for its consideration in March 2013.
.
Border Posts
i)Otieno Odongo and Partners Consulting Engineers Limited of Kenya appointed as Consultants for the Feasibility study, detailed engineering design, preparation of bidding documents and development of legal framework for OSBP at Mwami/ Mchinji (Zambia/Malawi) and Chiponde / Mandimba (Malawi/Mozambique)
ii)Project funded by ADB. SADC Secretariat as executing agency is coordinating project management.
iii)Inception Report reviewed and approved by the PSC.
iv)Study on-going and Final Report due March 2014.
[……..]
Railways
i. Malawi government and Vale, a coal developer in the Moatize Coalfields in Mozambique signed a feasibility study for the construction and operation of railway line linking the coalfields to the port of Nacala through the existing railway network in Malawi and Mozambique.The railway line from Moatize coalfields to Nkaya on the CEAR network is under construction and is expected to be completed and operational in 2015.
ii. Zambia -Financial support from China for the feasibility study for the Chipata to Tazara railway link secured. Preliminary report completed.
iii. A feasibility study for the construction of a railway line from Mpulungu port to Nseluka (Tazara) has been completed.[…]
Roads
Malawi
Corridor Description: Start from Mozambique at Chiponde and traverses down the escarpment on M3 road to Liwonde through Mangochi Town. From Liwonde it connects to the M1 at Chingeni via the M8. The corridor then connects to Lilongwe City on M1 before ending at the border with Zambia at Mchinji on M12. In total the corridor road length is approximately 466km.
Progress by Corridor Road Sections
  1. Sectional rehabilitation and resealing of 162 km stretch between Lilongwe to Nsipe has been completed. Lilongwe –Dedza section (77.5km) was funded by European Union and was substantially completed in May 2012 and Dedza -Nsipe (83.5km) section was funded by the Government of Malawi and it was substantially completed in March 2013
  1. The construction of 13km Lilongwe City West bypass road, funded by AfDB, was currently underway and progress was reported to be at 11%. The rehabilitation of 75km from Liwonde to Mangochi road was in the pipeline and that the project was at preparation stage
Mozambique
In Mozambican, the Corridor covers the Nacala – Cuamba – Mandimba – Lichinga connections passing through the N1, N12 and N13.
Progress along this part of the corridor is as follows:
Phase 1: Nampula – Cuamba section (348 km)
(i)Funding agreements have been signed with the funding partners involved in the Phase 1, which aims to asphalt the Nampula - Cuamba section (ADB 57%, JICA 23%, Mozambican Government 12%, and EXIM Bank of Korea 8% for the total amount of USD 264 million ); and
(ii)The tender process for asphalting the Nampula - Cuamba section was carried out. Proposals were assessed and negotiation with selected contractors has been concluded. Currently agreements are being prepared for signature. (The road has been divided into 3 sections, and each section awarded to a different contractor. It is hoped that work will be concluded in 30 months.)
(iii)Phase 2: Cuamba – Mandimba – Lichinga section (350km)
The feasibility study on the asphalting of the road has been concluded; and in February 2011 the development of the detailed engineering plan began.
Zambia
The Nacala Corridor Road Project in Zambia comprises 360 km of road rehabilitation from Luangwa Bridge (234 km from Lusaka) to Mwami at the border with Malawi. For the purpose of implementation the project has been subdivided into 8 sections.
Progress on Sections 1, 4, 7 and 8
The above sections comprise Section 1 Luangwa bridge-Nyimba (99km, section 4 Sinda-Katete (40km) Section 7 Chipata Town (4.7km) + Section 8 Chipata-Mwami border (19.1km).
Financing
The European Union and the European Investment Bank (EIB) have committed to finance the rehabilitation of a total 162.8km comprising above sections. The European Union will provide EDF grant amounting to € 38Million. The European Investment Bank in November 2010 approved financing for the project amounting to € 73Million.
Progress on Sections 5 and 6
The above sections comprise Section 5 Katete-Mtenguleni (55.5km) and Section 6 Mtenguleni-Chipata (26.5km).
Financing
French Development Alliance (AFD) in December 2010 approved financing for the project amounting to €53, 13 Million for the above two sections. This closed the gaping in financing for the entire road project.
Progress on Sections 2 and 3
The above two sections comprise section 2 Nyimba-Petauke (67.7km) + section 3 Petauke-Sinda (47km).
Financing:
The loan agreement with the African Development Bank (AfDB) was signed on 20th January, 2011. The will provide financing for the project amounting to UA 69.471 million. /
  1. The immigration system at Mchinji /Mwami and Chiponde/ Mandimba were still manual, resulting in delays to traffic.
  2. The Mchinji / Mwami border post is the only border post which opens 24hours to facilitate trade.
  3. The customs procedures were computerized and Malawi Revenue Authority uses Automated System for Customs Data (ASYCUDA).
  4. Mozambique- A Ministerial Diploma (regulations) 116 of 8 August 2013 on the transit regime of goods was approved. Amongst other changes, it reviewed the bond of sealed cargo from 100% to 20% and pegged the rest at 35%. The exemption list of products was improved and also approved. The reviewed regulations incorporated all the concerns raised by the stakeholders.
  5. The three countries need to urgently consider or facilitate the commencement of the commercial operations of the Chipata-Nchinji-Nacala Port Railway line

Beira Development Corridor /
  1. MoU signed between Mozambique and Zimbabwe.
  2. MoU under revision to include Zambia, Malawi and DRC
iii. Institutions provided under MoU need to be operationalised.
iv. Meetings taking place at Eastern Corridors Cluster level. / Port of Beira
  1. […]Feasibility Study for the Inland Cargo Terminal on the Beira Corridor.The consultants have completed the study. Final report was submitted on the 6th September 2013.
  1. Development of the Port of Beira Master Plan
11 companies were shortlisted for this RFP. The preferred bidder was selected on the 5th September 2013. It is anticipated that the study will be completed by the 31st January 2014.
Railways.
Zimbabwe
The rail track infrastructure, signalling and telecommunication system has deteriorated. There are national programmes and projects which are lined up to increase the availability of locomotives, coaches and wagons; rehabilitation of NRZ through PPP programmes, and rail infrastructure expansion programme including construction of new/missing links e.g Kafue Lions Den Railway line
Malawi / Mozambique
Scoping Study of the Sena / Machipanda Railway line; The study was completed for both railway lines. Report was finalised by 16th September 2013.[MRGP/DFID]
Mozambique
  1. Feasibility and Design study for the Rehabilitation of the Machipanda Railway- The EOI for the Feasibility and detail design study for the rehabilitation of the Machipanda Railway line was finalised on the 4th September. The EOI will now be advertised with a deadline of the 25th September 2013.
  1. Technical study on the Railway Gauge options in Mozambique - The draft TOR was completed on the 2nd September 2013 and is currently with the relevant stakeholders for comments. The TOR will be finalised by the 12th September 2013.
Pipeline
Zimbabwe is intending to construct a new oil pipeline from Savanna, in Mozambique to augment the capacity of the existing pipeline. At present, in addition to road transport, Zimbabwe imports fuel through the 287 km long Feruka pipeline which stretches from Beira in Mozambique to Feruka oil refinery outside Mutare in Zimbabwe. Zimbabwe controls 21 km of the Feruka pipeline, while Mozambique through its company Companhiado Pipeline Mozambique-Zimbabwe, controls the rest. The new pipeline will be carrying 10 million liters of fuel per day. The existing oil pipeline has a carrying capacity of 130 million litres per month
Roads:
Mozambique
i)Vanduzi-Changala: The road has been rehabilitated with funding from AfDB
ii)Beira-Machipanda: Feasibility study has been completed. Procurement of contractors for the concession of Beira-Machipanda and Vanduzi-Changala roads is underway.
iii)Second Bridge at Tete. A concession agreement has been signed for the construction of a second bridge across the Zambezi downstream of the current Samora Machel Bridge at Tete. The concession agreement includes the construction of access roads.