Zambia establishes itself as central transport hub

Zambia is putting the building blocks in place to leverage its geographic position to become a transport and logistics hub for southern and central Africa. Government is allocating millions to the refurbishment and building of road and rail links both within the country and to its borders. It is also working with neighbouring governments, road and rail agencies to synchronise the investments. “Zambia, being a landlocked country, lies in the centre of the southern African region and therefore relies heavily on her neighbours for vital routes to various import and export destinations,” says the Zambia Development Agency in a sector profile published in 2013. It says transport infrastructure covers roads and bridges, railways, airports and aerodromes and maritime and inland waterways. The agency is forthright about the challenges facing the shipping industry: “The state of transport infrastructure remains inadequate to sustain and match the desired levels of growth due to weak structural and management capacity resulting in over-commitment, high cost of construction and low investment”. Action is however being taken. Government is seeking to strongly address these challenges and is focusing on construction, rehabilitation and maintenance of physical infrastructure. The logistics industry is taking note. Managers interviewed by FTW are now talking about an “east-west” trade axis, which is replacing the dependence on South African ports – and Durban in particular. A number of freight forwarding and transport companies are opening up offices or appointing agents in ports like Walvis Bay and Nacala – and beefing up their presence in Beira and Dar es Salaam. Although it has raised US$1.75 billion in two successful Eurobond issues, the government has recognised that it needs to partner with the private sector to support infrastructure development. “Key projects to be procured under the PPP (public private partnership) arrangement will transcend sectors and include roads, railways, border support infrastructure, energy, estate and housing, agriculture services, health and airports,” says the Development Agency. Returns on the road infrastructure will come from tolling – which hauliers fear will increase the cost of using road freight and drive volumes back onto rail. Priority toll routes identified by the government include Solwezi to Kazungula (with a spur to Kasumbalesa); Kapiri Mposhi to Nakonde; and Lusaka to Mchinji via Chipata. “Developed and managed properly, this project could make Zambia a transportation hub for southern Africa,” says the agency. Road rehabilitation and building falls under the Link Zambia 8000 Project, which is expected to see at least five years of construction at a cost of between $5 and $6 billion. Private sector investors are also invited to participate in the rail revival. These plans, if implemented, will connect Zambia to the ports of Lobito, Beira, Nacala and Walvis Bay by rail. Inland links include providing rail access to the Great Lakes region through Zambia. Work has already started on improving air access to the country. “The developments include the runways, terminals and auxiliary facilities in and around the airports such as hotels, shopping malls, conference facilities etc. “Scope for private sector participation in development of airports also exists in airfields at Chipata, Kitwe, Kasama, Mongu, Solwezi and Mansa,” says the Development Agency. CAPTION Road rehabilitation extends to the cities – the main street through central Ndola is given a makeover.