Contents

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Introduction......1
Investment Overview...........................................2
Algeria.................................................................3
Nigeria.................................................................4
Kenya..6
South Sudan & Ethiopia....................................8
DRC.....................................................................9
Mozambique......................................................11
Tanzania.............................................................12
Ghana................................................................13
Namibia.............................................................14
South Africa...................... 15
Angola..18
References.........................................................19
Introduction
With the decline of the global economy, it's easy to assume that there is little in the coffers for the major infrastructure projects
we've seen in the past.
However, in many emerging markets, and certainly in Africa, spending on infrastructure and indeed in passenger and freight rail
development has jumped into the limelight.
The following market report has been compiled using data collected for the upcoming 17
th
Annual Africa Rail Show, to be held in
Johannesburg in July 2014. The report is designed to give detailed country and project specic information for upcoming and
ongoing rail projects in the region.
The selection is not ranked in any particular order.
If you would like to learn more about the upcoming conference please dont hesitate to contact us.
1
Samantha Futcher
Project Director
Samantha.futcher@terrapinn.com
27 (0) 11 516 4033
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Tanja Du Plessis
Conference Manager
Tanja.duplessis@terrapinn.com
27 (0) 11 516 4019
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Current projects shaping the future of the
rail industry in Africa
Country Name: Algeria
Current/ Proposed Investment: $471.36 million
Key Projects: Oran tramway system
Country Name: Nigeria
Current/ Proposed Investment: $874 Million
Key Projects: Lagos Rail Mass Transit System
Country Name: Angola
Current/ Proposed Investment: +- $400-500 million
Key Projects: Benguela Railway project
Country Name: Namibia
Current/ Proposed Investment: $ 11 million
Key Projects: Namibia- Botswana transnational railway project
Country Name: Ethiopia
Current/ Proposed Investment: $20 billion
Key Projects: Lamu Port- South Sudan-
Ethiopia Transport Corridor (LAPSETT)
Country Name: Kenya
Current/ Proposed Investment:: $ 13.5 billion
Key Projects: Mombasa-Kigali rail project
Country Name: Mozambique
Current/ Proposed Investment: $6.4 billion
Key Projects: Vales Moatize Project
Country Name: Ghana
Current/ Proposed Investment: $23 million
Key Projects: The Accra-Tema rail line
Country Name: South Africa
Current/ Proposed Investment: R9.1 billion
Key Projects: Majuba railway corridor project
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Country Name: DRC
Current/ Proposed Investment: $667 million
Key Projects: The multimodal Transport project
Country Name: Tanzania
Current/ Proposed Investment: $100 million
Key Projects: central development Corridor
(CDC) Tanzania
Country Name: South Sudan
Key Projects: Oran tramway system
One of the most anticipated tram systems in the region is being rolled out in three phases, the first of which is now
complete.
The final phase is being targeted by 2020.
Company: SETRAM
Investment: $471.36m for first 10 years has been awarded
Key Stats: 30.1km, 40 additional stations
Tender plans: The next step will be the northerly extension from the Hatab bus station to Benarba. It will be 8.6km and will
add 12 stations.Other extension plans include the Depot Senia to the Oran airport and from USTO to Bir El Djir covering a
length of 16.5km.
Algeria
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Key Projects: Lagos Rail Mass Transit System
Current/ Proposed Investment: $874m estimated
Company/s involved: Nigerian Federal Government, Lagos Metropolitan Area Transport Authority (LAMATA), China Exim Bank,
China Civil and Engineering Construction Company (CCECC)
Key Stats: major track upgrades, potential high speed line
Key Stats for First Phase - Abuja-Kaduna Line: 9 stations, Rolling Stock Procurement for freight and passenger locomotives
Tender plans: Abuja-Kaduna is the first segment to be implemented as part of Lagos-Kano standard gauge project.
The next segment to undergo standard-gauge upgrade is the 312km-long Lagos-Ibadan rail line, which is a double-track
standard-gauge line scheduled for completion in 2016.
The other standard gauge line projects in the pipeline in Nigeria include the Lagos-Benin City (300km), Benin-Abakiliki
(500km), Benin Obudu Cattle Ranch (673km), Lagos-Abuja high speed (615km), Zaria-Birnin Koni (520km), and the Port
Harcourt-Maiduguri line (1,657km).
Nigeria
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Key Projects: Lagos-Ibadan railway
Current/Proposed Investment: $1.49bn (Lagos-Ibadan railway )
Companies involved: China Civil Engineering Construction Company
Investment: Government has allocated $28.61bn for the development of roads, railways, inland waterways, ports and
airports.
Key Stats: In 2012 China Civil Engineering Construction Company was awarded the contract to develop the Lagos-Ibadan
standard gauge railway expected to reach completion in 2014
Tender plans: The construction of Lagos-Ibadan standard gauge double rail track should be completed by the end of 2013.
Minister of Transport, Senator Idris Umar who disclosed in Abuja while inauguration the Board of Directors of the Nigerian
Railway Corporation, NRC, said the government is equally working to ensure that the rehabilitation of the Railway line from
Port Harcourt to Maiduguri is completed this year.
The 25 year vision is going forward in three phases namely System Transition, System Modernization and System Stabilisation.
In the implementation process, a dual approach is taken on and this entails the rehabilitation of the entire existing narrow
gauge line at the same time as the development of the standard gauge line.
In the modernization phase, the construction of Itakpe Ajaokuta Warri and Abuja Kaduna Standard Gauge Line are in
progress and are expected to be completed and commissioned by next year.
Due to this upgrade and modification, NRC is undergoing a review to ensure, private, state and local government involvement
in the sector.
Nigeria
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Key Projects: Mombasa-Kigali rail project
Current/Proposed Investment: First Phase: $260m allocated
Company: Kenya Railways Corporation & Rift Valley Railways
Investment: $13.5bn
Key Stats: feasibility, design & construction, 500km high-speed standard gauge railway line, locomotives and rolling stock
Tender plans: In July 2013 the Kenya Railways Corporation issued a tender for consultancy services to oversee the design and
construction of a 500km high speed standard gauge railway line.
The Ministry of Works and Transport has said the construction of the Mombasa-Kigali railway line will be completed in March
2018.
The feasibility studies for the first phase of the railway from Mombasa to Nairobi covering 500 kms is now complete and is
scheduled for November.
Kenya
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Phase II design of the line covering 511 kms from Nairobi to Malaba is being done by Kenya Railways Cooperation and
will be complete by the end of 2013.
The design for the Kampala- Malaba line covering 250 Km will be complete by October 2013 in which a second phase
of the Tororo-Packwach railway line was completed in 2011.
Phase III of 344 Km will cover Kampala to Kasese en route to Bihanga-Mirana hills (200 Km).
It is then scheduled that the government of Rwanda will develop the 200 kms line from Mirama hills to Kigali.
So whats the news on concession operator?
Rift Valley Railways (the company with a concession to operate the Kenya-Uganda railway line) will remain operational.
The operator recently launched a Shs24 billion technology upgrade on the line to control the movement of trains and
cargo along the railway tracks which was considered a large revamp.
While all of this has been progressing, China Construction Engineering was given a contract to develop the Tanga-
Musoma railway line, which will be the link the Bukasa port.
Kenya continued
Key Projects: Lamu Port South Sudan Ethiopia Transport Corridor (LAPSETT)
Current/Proposed Investment: approximately $20 billion
Company: LAPSSET
Key Stats: Oil Refinery, transport hubs for rail, road and air vehicles, mega port at Port Lamu development
Tender plans: The LAPSSET project was first initiated in 2012 by the presidents of Kenya, Ethiopia and South Sudan.
The World Bank has funded the feasibility study and design of the transport corridor linking Kenya to Southern Sudan. Feasibility
studies for corridor components and the design of three (3) berths and associated facilities in Lamu are complete.
China Communications Construction Company has won a tender to construct the first three berths at the port of Lamu in
Mombasa,Kenya.
The first three berths in the port of Lamu will be completed in three years. The government will be preparing a business plan for
how private investors can involve themselves, PPPs and joint ventures seen as possible models.
The government is however proposing that the Lappset corridor and the Lamu-Ethiopia railway line is built using locally
assembled steel. The project will be completed within 17 years and according to the projects master-plan, Lamu port will
include 32 berths once the Lapsset corridor project is complete.
South Sudan & Ethiopia
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Key Projects: The Multimodal Transport Project
Current/Proposed Investment: First Phase: $667m
Company: SNCC
Investment: Approximately $667m
Key Stats:
The project aims to:
(i)Improve transport connectivity in the DRC to support national economic integration
(ii) Restore SNCCs financial and operational viability
(iii) Implement a sector wide governance plan and strengthen transport SOEs operational performance
Tender plans:
DRC
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SNCCs Network includes 3 641 km of track, out of which 858 km electrified. Their social responsibility includes: 2 river ports,
lakeside & river navigation, 1 shipyard, road transport, schools and medical establishments. Their national coverage spans onto 7
provinces-2 in Kasa, Katanga, Maniema and Province Orientale et Sud Kivu
In order to assist SNCC in its recovery process, the World Bank and the government of the Democratic Republic of Congo are
mobilizing an amount of 617 USD millions in the frame of the Multimodal Transport Project (MTP)The Multimodal Transport
Project came into force the 15th of April 2011 with a World Bank support to the SNCCs running costs. This amounted to around 30
million dollars as of the end of December 2011.
The thought behind the set-up of a stabilisation and recovery plan of the activity were planned in three phases:
Phase 1: Stabilisation of the activity of SNCC
This includes the rehabilitation and upgrade of rail track, rolling stock, workshops, and facilities that are used by SNCC, the next
step is implementing a steady level of operational support (3 years)
Phase 2: Reinforced stabilisation and recovery
This phase would include the gain of needed equipment for selected transport SOEs, an internal indication of the Ministry of
Transport and the development of an international trade strategy and action plan
Phase 3: Concession / leasing (option to be taken by the State (> 20 years)
This phrase provides for the funding of the Project management entity
The Tender was launched for the acquisition of 30 new diesel locomotives
Opening of the bids commenced on the 11th of May 2012
Delivery of the locomotives should be completed by the end of 2014
Partnership arrangements for this project have not changed.
Main partners include: the African Development Bank (AfDB)
The French Development, Cooperation Agency (AFD)
The Belgian Technical Cooperation (BTC)
The European Union (EU)
Main achievements to date are as follows:
Through Public Private Partnership (PPP) SNCCs governance has improved: SNCC is currently one of very few SOEs in DRC with a
private management team fully empowered to manage the company as a commercial entity. Vecturis has already had a major
positive impact on SNCC. The private operator has brought transparency, expertise, and proactive management to the table. This
have been proven by the fact that project disbursement and commitment rates remain among the highest achieved in DRC for a
project at this stage of implementation.
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DRC continued
Key Projects: Vales Moatize project
Current/Proposed Investment: Approximately $6.4 bn
Company: Vale and CFM
Key Stats: The rail link between Tete and Nacala should be completed by the end of 2014.
The project is ongoing, on schedule and on budget. Vale plans to invest US$ 3.4 billion on the railway to refurbish
approximately 682 km of existing railway and 230 km of Greenfield railway.
Vale is expecting to rail their first coal train by the end of 2014 and load the first ships early in 2015.
Vale will also be investing US$ 2 billion to expand the Moatize Mine, which will reach 22 metric tons per year of installed
capacity by 2015.
Mozambique
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Key Projects: Central Development Corridor (CDC) in Tanzania
Company: Tanzania Railway Limited
Investment: US$100 million
Key Stats: achieve economic growth by providing reliable and cost effective enhanced transport facilities
Tender plans:
The corridor is still in the scoping stage and the government is busy with its 2025 Integrated Industrial Strategy which
links spatial development initiatives to promoting growth in the country.
The projects main aims are to renew sections of the track and enhance infrastructure. An agreement was signed with
the World Bank securing investment into the renewing of the track.
This process is estimated to take about 2-3 years and has been said to start before the end of 2013.
Tanzania Railway Limited will keep exclusive rights to the project until 2016. After 2016, the network will be open to
other operators
Tanzania
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Key Projects: The Accra-Tema rail line
Current/Proposed Investment: $23m
Company: Ghana Railway Development Authority
Key Stats: The project is to transform the Regions transportation system by launching new high speed passenger and goods
rail services
After being abandoned for almost two decades, the Ghana railway system recently went through a major transformation
The Accra-Tema rail line project started in December 2004. It consisted of rehabilitation of the existing Tema - Accra Nsawam
suburban railway, and construction of new rail lines. It also included the construction of two big culverts at Baatsona, the
reconstruction of two broken bridges at Nungua and Baatsonaa, and installation of a signalling and telecommunications
system.
Tender plans: In 2007, the government awarded a design, build, operate and transfer contract to Peatrack for expansion,
reconstruction and operation of a rail network between Accra-Tema and Paga. The project has a concessionary period of 35
years.
Since then, a memorandum of understanding has been signed and funding promised by some foreign institutions for the
ECOWAS (Economic Community of West African States) line from Aflao-Tema-Accra, Winneba, Cape Coast and Takoradi, to
Omaape. The first phase of the ECOWAS line including the Accra suburban line broke ground in February 2011.
So what has happened since? Since August this year, a team of consultants has been assembled by Hammcobtb Engineering
International Incorporation-Canada to kick off a design, construction specifications and implement a fast rail route for the West
Coast of Africa
Ghana
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Key Projects: Namibia-Botswana transnational railway project
Company: TransNamib& Botswana Railways
Investment: $11 billion
Key Stats: Known as the Trans-Kalahari Railway, the 1,500-kilometer (932- mile) line will run from landlocked Botswanas
coalfields in the south and east to the Namibian port of Walvis Bay in the west.
The pre-feasibility study for a new rail network to connect Namibia and Botswana has begun.
The move marks a concrete step towards carrying out the project, which has been under planning for more than three
years. The 12-month study is being funded by an N$3.4m grant from the World Bank and N$329,000 each from the two
countries
Tender plans: The tender was withdrawn from Profile-VAE because the company had previously received many similar
contracts and that was not in line with a "fair distribution of work". Therefore bids for potential financing will be
reopened
Namibia
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South Africa
Key Projects: Majuba railway corridor project
Current/Proposed Investment: R9.1bn
Company: Transnet Freight Rail
Key Stats: The corridor is the first large greenfield freight-rail infrastructure project to be carried out in South Africa since
1986.It is estimated that the line will carry its first 100-wagon train on 31 May 2016.
Tender plans: Civil construction and earthworks for the project are being carried out by Grinaker-LTA and is estimated to be
completed by the end of October. Contracting processes for the perway and the electrical and signalling contracts are
currently under way and it is reported that these should be awarded during the first quarter of 2014. The perway package
has been planned to be completed by December 2015 and the electrical and signalling package by February 2016.
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Key Project: Transnets Market Demand Strategy
Current/Proposed Investment: R307 billion
Company: Transnet Freight Rail
Key Stats:In April last year, Transnet launched their audacious Market
Demand Strategy (the MDS) a rolling R307 billion capital investment
programme for the next seven years.
Transnet have delivered a successful first year of the MDS, highlighted by
an investment of over R27 billion in their countrys transport
infrastructure. This is unprecedented in the history of their company.
Transnet are aggressively modernising their assets through the investment
programme. Two thirds of this programme is on rail infrastructure and
rolling stock, which have suffered the most as a result of decades of
underinvestment in the past.
They are buying and building thousands of locomotives and equipment
and expanding their port assets. Transnet have completed the construction
of their state-of-the-art multi-product pipeline for petroleum products
between Johannesburg and Durban.
The MDS is not only about infrastructure investment. One of its main
focuses is the shift cargo from road to rail, which reduces the cost of doing
business and carbon emissions.
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South Africa
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Key Projects: The PRASA fleet renewal programme
Current/Proposed Investment: R51 billion
Companies involved: PRASA, ALSTOM,GIBELA
Investment: R123 Billion over 20 years
Key Stats: This project has been put in place to bring Metro Rail back to life. The goal is to supply 600 passenger trains (3 600
coaches) which is to be delivered between 2015 and 2025. The aim of this project is to revitalise the rail industry, create jobs and
provide efficient, reliable and safe public transport. The programme will replace the ageing suburban trains in service in Pretoria,
Johannesburg, Cape Town and Durban, with 1 200 electric trains over a period of 20 years.
Tender plans: Gibela will build a manufacturing site in Ekurhuleni, to produce the trains in South Africa. The manufacturing facility
will also house an engineering center and a training facility. Construction is scheduled to start in early 2014 and the factory is due to
come on board in 2015. The project is said to create over 1500 direct jobs in the local factory and 33,000 indirect jobs over the first
10 years. The first 20 trains will be manufactured in Lapa, Brazil. Alstoms French sites Ornans, Tarbes, Le Creusot, Villeurbanne and
Saint-Ouen will be involved in the project over the long term.
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South Africa
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Angola
Key Projects: Benguela Railway Project
Current/Proposed Investment: Approximately $400-500 million
Company: CFB- Caminhos de Ferro de Benguela
Key Stats: The Benguela railway has a length of 1,344 kilometres (835 mi) in
Angola and provides access to the inner part of the country, but achieved its
greatest success through linking to the Copperbelts of Katanga province,
Democratic Republic of Congo, and Zambia.
The line is pretty much complete, with a few minor glitches. The bottom line is,
the line is continuous and should be open for commercial use by the end of 2013.
Now that the line is complete, SNCC and CFB will decide on a technical and
operational plan so that the Congo can link to the newly rehabilitated Benguela
railway line in Angola.
The Congo was the worlds eighth-largest producer of copper and mined the most
cobalt last year. The majority of the nations copper is currently transported about
3,500km by road from Katanga to Durban, or east to Dar es Salaam. It can now be
transported along the newly fixed 1344 km line, so you can imagine the benefits
of this.
Tender plans: It has been said that SNCC has already put out tenders to purchase
equipment and materials. Tenders are still unknown
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References:
www.railway-technology.com
http://www.frontiermarketnetwork.com/article/3838-opportunities-in-nigeria-s-infrastructure-development-plan#.UlzfChgaJOw
http://www.vanguardngr.com/2013/05/work-to-commence-on-lagos-ibadan-railway-projects-fg/
http://www.bdlive.co.za/africa/africanbusiness/2013/07/22/kenya-prepares-to-invite-tenders-for-railway-line-project
http://www.trademarkea.com/mombasa-kigali-rail-to-be-finished-by-2018/
http://edition.cnn.com/2013/06/18/business/world-spectacular-infrastructure-projects/index.html
http://www.constructionreviewonline.com/news/latest-news/1328-china-communications-wins-us-488million-lapsset-corridor-project-tender
http://www-wds.worldbank.org
http://informaaustralia.wordpress.com/2013/05/24/vale-mozambique-downey-interview/
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/01/28/000333037_20130128155606/Rendered/PDF/NonAsciiFileName0.pdf
http://www.blog.kpmgafrica.com/resource-corridors-infrastructure-development-private-investment/
http://www.railway-technology.com/projects/accratemarailwayline/
http://www.ghanabusinessnews.com/2013/08/04/experts-discuss-ecowas-rail-project/
http://www.bloomberg.com/news/2013-04-16/botswana-namibia-to-sign-11-billion-railway-deal-on-april-20.html
http://www.railway-technology.com/news/news66425.html
http://allafrica.com/stories/201301240453.html?viewall=1
: http://www.engineeringnews.co.za/article/majuba-railway-corridor-project-south-africa-2013-09-27
http://www.bdlive.co.za/africa/africanbusiness/2013/10/18/railway-firms-to-discuss-ways-to-link-congo-to-angolas-benguela-line
http://www.alstom.com/press-centre/2013/10/prasa-and-gibela-led-by-alstom-sign-historic-agreement-for-the-supply-of-modern-commuter-trains-in-sa/
http://www.frontiermarketnetwork.com/article/3838-opportunities-in-nigeria-s-infrastructure-development-plan#.UlzfChgaJOw
http://www.vanguardngr.com/2013/05/work-to-commence-on-lagos-ibadan-railway-projects-fg/
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