REGIONAL APPROACH TO RAIL DEVELOPMENT BY KINGSTON MKANDAWIRE

REGIONAL APPROACH TO RAIL DEVELOPMENT BY KINGSTON MKANDAWIRE RAIL CONSULTANT LOAD CENTRE ENGINEERING

1. 0 SYNOPYSIS • CHANGES IN RAILWAY STRUCTURES IN THE REGION SINCE INDEPENDENCE • DEFINITION OF RAIL DEVELOPMENT • WHY REGIONAL APPROACH • FUTURE RAIL DEVELOPMENTS • CONCLUSIONS

2. 0 INTRODUCTION 2. 1 PRE INDEPENDENCE ERA • RAILWAYS OWNED AND OPERATED BY GOVERNMENTS ON REGIONAL BASIS WITH SINGLE OPERATOR • SAME COLONIAL POWER HENCE FEWER POLITICAL PROBLEMS

2. 2 POST INDEPENDENCE ERA RAILWAYS OWNED AND OPERATED BY SEPARATE GOVTS • POLITICAL INTERESTS INCREASED • INVESTMENTS IN RAILWAYS HAD TO COMPETE WITH OTHER NATIONAL PROJECTS

• PROBLEMS OF INTERCHANGE OPERATIONS • MANPOWER LEVELS NOT TIED TO BUSINESS DEMANDS • CUSTOMS CLEARING AT BORDERS

• INVOICING COMPLICATIONS AS MANY NETWORKS BECAME INVOLVED • RAIL CORRIDORS DIFFICULT TO MARKET BECAUSE OF DIFFERENT CONTROL POINTS • NATIONAL INTERESTS GOT PRIORITY • DELAYS IN GETTING RATES FROM DIFFERENT NATIONAL RAILWAYS • LACK OF PRIVATE SECTOR PARTICIPATION • LACK OF ACCESS TO PRIVATE CAPITAL

• CONCESSIONED RAILWAY COMPANIES WITHIN NATIONAL BORDERS • GREATER AUTONOMY AND FREEDOM FROM POLITICAL PRESSURES • ACCESS TO PRIVATE FINANCE • PRIVATE SECTOR MANAGEMENT CULTURE • GOVERNMENT RETAINS OWNERSHIP

• REDUCED OR ELIMINATION OF SUBSIDIES FROM GOVERNMENT • MANPOWER LEVELS RELATE TO BUSINESS DEMANDS • INTERCHANGE PROBLEMS STILL EXIST • GOVERNMENT RETAIN OWNERSHIP

3. 0 REGIONAL RAIL DEVELOPMENTS • UPGRADING OF EXISTING NETWORK AND OPERATING SYSTEMS. • NEW RAILWAY NETWORKS • MANAGEMENT SYSTEMS OF RAIL CORRIDORS

4. 0 REGIONAL APPROACH • REGIONS ARE BEING INTEGRATED eg: - EAC, SADC, COMESA • LEGISLATURE NOW SUPPORTS BUSINESS FROM A REGIONAL PERSPECTIVE • EASIER ACCESS TO PRIVATE CAPITAL AND FUNDING AGENCES

5. 0 BENEFITS OF REGIONAL APPROACH • PRIVATE PARTICIPATION HAS INCREASED • BETTER CONTROL OF TRAFFIC MOVEMENTS [eg: RAILWAY SYSTEMS OF ZAMBIA (ZAMBIA TO BEIT BRIDGE), TAZARA (ZAMBIA TO DAR IN TANZANIA)]. • POLITICAL INTERFERENCE MINIMISED • NATIONAL INTERESTS NOT A PRIORITY AS OPERATIONS MAY BE OVER NATIONAL BOUNDARIES

• REGIONAL INTEGRATION ENHANCED • LESS INTERCHANGE REQUIREMENTS • EASIER MARKETING OF CORRIDORS • ACCESS TO PRIVATE CAPITAL

6. 0 FUTURE RAIL DEVELOPMENTS • EAST AFRICAN RAILWAYS MASTER PLAN • DAR ES SALAAM-ISAKA-KIGALI-BUJUMBURA RAILWAY PROJECT • LINKING OF TAZARA CORRIDOR TO MTWARA CORRIDOR • CONSTRUCTION OF RAIL LINK FROM KASAMA (IN ZAMBIA) ON TAZARA TO MPULUNGU PORT ON LAKE TANGANYIKA

• ANGOLA -NAMBIA RAILWAY CORRIDOR • CONNECTION OF CHIPATA MCHINJI RAILWAY TO TAZARA

CONCLUSIONS • ENHANCED REGIONAL INTEGRATION HAS REINFORCED THE NEED FOR RAILWAYS TO BE MANAGED BY PRIVATE COMPANIES OVER RAIL CORRIDORS. • INCREASED ACCESS TO PRIVATE CAPITAL IN THE RAILWAY SECTOR. • ENHANCED COMPETITION IN THE RAILWAY SECTOR IF CONCESSIONS ARE OFFERED ON CORRIDOR ROUTES. • GOVTS MUST CONCESSIONAIRE INVESTS IN THE INFRASTRUCTURE

• MOST OPPORTUNITIES OCCURRING IN RAIL DEVELOPMENTS ARE OF REGIONAL NATURE • RESTRUCTURING OF EXISTING RAILWAY NETWORKS THROUGH CONCESSIONING OF RAIL CORRIDORS.