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Logistics

BHL Group gets the green light for Copperbelt road upgrade

03 Dec 2024 - by Eugene Goddard
Buks Janse van Rensburg, CEO and founder of Buks Haulage Limited, talking to TV journalists after the concession agreement was signed. 
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It is official – a gravel road that was built seven years ago by a cross-border transport company to improve logistics from the Copperbelt in Zambia through Barotseland due south of the Democratic Republic of the Congo (DRC), will be upgraded at a cost of $337 million.

The road linking mines around the Solwezi area in Zambia and Kolwezi on the other side of the DRC border, is expected to significantly bolster road freight serving an area responsible for roughly 15% of global copper demand.

More importantly, the DRC produces about 70% of the world’s cobalt, used mainly for electric vehicle battery manufacturing, emphasising the need for enhanced logistics, especially to Namibia’s Port of Walvis Bay.

With plans to upgrade the Zambia-DRC border at Kipushi, and the infrastructural development of a road and border crossing north of Lumwama, directly south of Kolwezi, the upgraded road from Mutanda to Kaoma could significantly improve port-to-pit logistics for Walvis Bay.

Currently, hauliers from Namibia head through the Zambezia panhandle (also known as the Caprivi Strip), before looping through Botswana to cross into Zambia at the Kazungula Bridge. From there a fair stretch via Livingstone, Lusaka, Ndola and Kitwe lies ahead before any truck reaches Solwezi.

Those heading to Kolwezi, still have to navigate borders such as Kasumbalesa, one of the most difficult trade-crucial transits in Africa.

Provided that all the pieces fall into place, Walvis Bay will send and receive cargo from Zambia and the DRC’s mines as the crow flies, basically substantially shortening the distance and eliminating the number of border crossings, many of which on any given day tend to become choke points for trade.

According to KPR Consulting, which represents various stakeholders, Barotse Highway Limited (BHL), “a special purpose vehicle (SPV), has signed a concession with the Government of the Republic of Zambia for the construction of a crucial 371-kilometre road connecting Mutanda to Kaoma.

“This strategic development is poised to unlock logistics and trade in Zambia, addressing the significant challenges posed by the current road infrastructure.

“The BHL-SPV, as the concessionaire, will be responsible for the design, financing, construction and operation of the road.”

The statement emphasised that “the existing Mutanda to Kaoma road, which is predominantly gravel and in urgent need of extensive upgrades, has long been a barrier to seamless transportation”.

Although the route from the Caprivi crossing of Katima-Mulilo and Sesheke along Zambia’s south-western border with Angola has appealed to transporters not wanting to loop all the way east, the condition of the Kaoma -Mutanda road is a major impediment for what is known as the North-Western Corridor (NWC).

Buks Janse van Rensburg, CEO and founder of Buks Haulage Limited (BHL) who created the initial link from Zambia’s M9 road going north, and also serves as the project promoter for Buks Haulage Zambia Limited (BHL), described the road as major achievement for cross-border logistics.

Speaking in Kasempa, he said: “The importance and impact of the road cannot be understated.

“It is the fastest route linking Zambia’s mineral-rich Copperbelt and Northwestern Provinces in Zambia to west coast regions of Africa and South Africa. It will further act as a gateway for trade with Angola, Botswana, Namibia, and to the world.”

Stakeholders sign the Kaoma-Mutanda road concession.

When the project still seemed somewhat up in the air, Mbahupu Hippy Tjivikua, CEO of the Walvis Bay Corridor Group, said what Van Rensburg has now confirmed.

“The NWC is going to massively speed up hinterland transport for our port,” he said.

Mike Fitzmaurice, vice-president of the African Union’s Organisation for Transport and Logistics, echoed Tjivikua’s optimism, saying once the road was there it should be an impetus for further improvements to expedite the extraction of minerals.

Van Rensburg added that the road was a key link between Solwezi, Kalumbila, Lumwana, and the entire North-Western region to Walvis Bay in Namibia.

At the signing of the concession agreement, Zambia’s Minister of Finance and National Planning, Dr Situmbeko Musokotwane said: “This road obviously will link Kaoma and the rest of Western Province into the North-Western Copperbelt, making the journey short.

“Apart from that, this is a road beyond North Western and Western Provinces, it is a road that also connects Zambia to South Africa and Namibia.”

Built some time in 2017 to facilitate trade for BHL Group’s fleet of about 700 trucks, over the past seven years, the company had “operated and maintained it free” according to Van Rensburg.

“This has given us rare insight into the potential of the corridor to unlock massive economic activity for Zambia.

“Our understanding of the region, trade and economic potential was the catalyst for our involvement in this project and we’re excited about seeing these possibilities come to life.”

The North-Western Corridor through Barotseland in Zambia, from Katima-Mulilo in the south to Mongo on the M10 and onwards to Kaoma on the M9 before heading north to Mutanda via Kasempa, is expected to transform hinterland logistics favouring the Port of Walvis Bay.

 

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