Corridor development key to future growth

Increased investment in ports and

rail infrastructure is vital if Africa

wants to move resources successfully.

“Stranded resources remain a

challenge,” Paul Runge, managing

director of Africa Project Access, told

FTW recently.

“There has to be significant

investment in bulk handling facilities

– and it will

become a strong

theme in countries

that are serious

about moving

their resources

and growing their

economies.”

He said whilst

there had been

a strong focus

on port and rail

infrastructure in the past few years

it was mostly still in the planning

stages. “Although we are seeing some

progress in certain countries. The low

commodity prices have not helped

the situation, although they have

allowed companies to look at their

operational costs and trim down

where necessary to run more efficient

operations.”

According to Runge, another area

that needs focused attention for longterm

growth in Africa is corridor

development.

“We are seeing work happen

in certain areas such as the

Lamu corridor, a transport and

infrastructure project in Kenya.

Whilst commercial operators have

favoured the

Mombasa corridor

they have opened

Lamu and are

working on it – but

much more has to

happen to make it

feasible.”

Runge

said major

infrastructure was

required, including

road, rail, transmission lines and

power stations.

“Commercial operators don’t

always see the sense of the corridors

that are being invested in. The

Maputo corridor for example is a

success story as there was a meeting

of minds from all the role-players

involved.”

INSERT & CAPTION

Business in Africa still

very much depends on

political will.

– Paul Runge