TOP 4 ROAD INFRASTRUCTURE PROJECTS IN AFRICA
The Bitumen Exchange network acts as a catalyst for road project creation, with a bias towards increasing the level of infrastructure investment, and the performance of those companies servicing the sector. As we head towards the Bitumen and Asphalt Leaders Congress in 2017 we asked our membership which existing infrastructure projects (either on the ground or in planning) most excite them? The top 4 results are listed below:
1. Maputo Corridor Logistics Initiative
What they say?
“Working towards a logistics Corridor based on excellence - a cost-effective, continuous, reliable logistics route, creating an enabling environment for further investment and development, with positive returns for all stakeholders”
What others say
“The most successful regional interconnection initiative in sub-Saharan Africa”
“N4 border crossing at Lebombo-Ressano Garcia is the key milestone for its success – opening up haulage opportunities”
Key Facts
A multimodal approach focused on rail and highways linking Maputo and the provinces of Mpumalanga and Gauteng in South Africa, and providing Swaziland with an alternative to the port of Durban in South Africa (the largest port on the East coast of Africa)
Accounts for 42 percent of all the country’s entire export revenue – showing how a coordinated response can drive road development
Bitumen Exchange Opinion
To develop power generation projects, the energy sector relies on anchor tenants – often-large industrial users. In effect their participation underwrites the whole project. Ironically the new gas fields in Mozambique are doing just that right now, and will spur investment in roads and drive the bitumen industry. This project was unique in the use of an aluminum smelter to kick start the whole project. Is there an opportunity (largely being missed) for the road construction industry to learn from this and work more closely with private sector at the initial feasibility stage of mega projects?
2. Wallis Bay Corridor Group
What they say?
“A network of transport corridors principally comprising the Port of Walvis Bay, the Trans-Kalahari Corridor, the Trans-Caprivi Corridor, the Trans-Cunene Corridor, and the Trans-Oranje Corridor”
What others say
“This Corridor has also became the preferred trade route for Namibia and South Africa as it cuts more than 400 kilometres compared to the traditional routes”
“Incorporating the Trans-Kalahari Corridor – it is an example for all other road development projects in Africa to follow”
Key Facts
The TKC is a road network spanning approximately 1900km across the territories of Botswana, Namibia and South Africa
The TKC has grown with more than 150% in cross border trade via neighbouring countries Angola, Botswana, Namibia and South Africa
Bitumen Exchange Opinion
What this project shows is that getting bitumen on the ground is only part and parcel of a successful infrastructure project. Consistently haulers comment on the ease of customs in transit facilitation.
3. North South Corridor
What they say?
“A £100million, 5-year Programme funded by DFID that is supporting deeper economic integration of the southern and eastern Africa region”
What others say”
“The North-South transport corridor from Durban to Dar es Salaam in Tanzania is arguably Africa’s most important trade route”
Key Facts
8599 km in seven countries. The costs of rehabilitating and maintaining the entire North South Corridor road network to a good standard is estimated at US$9.1 billion
Bitumen Exchange Opinion
The Grand Inga Dam in the DRC could produce enough energy to power the whole of Africa. The scale of the project is immense, but also a hindrance. Beset by delays, smaller micro projects could already be producing much needed electricity. While grand plans like the North South Corridor are welcomed, the sheer scale of investment needed makes you wonder if time would not be better spent on a country specific approach. However, the UK DTI is heavily involved, and havea track record in East Africa so watch this space?
4. East Africa ring road project
What they say?
“The key road is also expected to accelerate free flow of goods and services across five counties”
What others say?
“Very little is in the public domain, but World Bank funding is muted as being behind the project that would add great value to Bumula area”
Key Facts
World Bank funding is already confirmed at $410 million
Bitumen Exchange Opinion
Elections in the region have now passed and there may well be a political will to make this happen after years of political posturing between Uganda and Kenya specifically because of the preferred route of an oil pipeline. However, Kenya remains by far Uganda’s biggest trading partner in the region. One Stop Border Posts are facilitating traffic already, and this could be a vital project by KeNHA to connect the region to the wider Kenya road network.
The Bitumen Exchange Team