http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.05Change: -0.16
R/$ = 11.99Change: -0.17
Au 1203.45 $/ozChange: 6.21
Pt 1154.00 $/ozChange: 5.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 21, 2012

Rail investments to help lower transportation costs in Africa

Back
Construction|Africa|Building|Environment|Ghana|Projects|Road|Africa|Ghana|Morocco|Nigeria|Tanzania|USD|Freight Transportation|Passenger Transportation|Rail Infrastructure|Infrastructure|James Milne|Rail
Construction|Africa|Building|Environment|Ghana|Projects|Road|Africa|Ghana|Tanzania|||Infrastructure|Rail
construction|africa-company|building|environment|ghana-company|projects|road|africa|ghana|morocco|nigeria|tanzania|usd|freight-transportation|passenger-transportation|rail-infrastructure|infrastructure|james-milne|rail
© Reuse this



Rail infrastructure development in Africa can play a crucial role in the formation of trade corridors, as rail routes are developed to link major cities, providing companies with access to large markets.

Frost & Sullivan environment and building technology group analyst James Milne said that such links would provide for cheaper passenger and freight transportation.

He added that urbanisation and the development of megacities would also drive the need for light urban railways.

“Road transport is heavily burdened in almost all countries in Africa, and the development of rail infrastructure is a viable option for reducing freight and passenger transportation costs going forward,” he said.

There were a number of key high profile rail infrastructure projects in Africa, both ongoing and planned, to the value of $48.12-billion. Countries of particular interest in terms of infrastructure expenditure included Morocco, Nigeria, Ghana and Tanzania.

Milne said that the development of rail infrastructure would also promote intraregional trade on the continent, which would boost economic growth. “In Africa, [intraregional trade] is currently very low. Only 7.6% of trade recorded by large trade zones in Africa in 2010 was intraregional.

“The implication is that, with the development of rail infrastructure linking a number of regions, intraregional trade would be vastly improved, particularly once policy suggestions, such as a unified African free trade zone, are put into action,” he added.

“The development of quality regional rail networks would also allow various forms of processing to take place in beneficiation hubs across the continent,” he said.

Milne also highlighted the number of challenges facing the continent in the development of infrastructure, including funding, skills shortage and poorly developed infrastructure, driving up the costs of projects.

“Cash-strapped governments are often reliant on multinational development partners and banks to provide a majority of the funds. This problem is compounded by the fact that significant funding shortages already exist for the rehabilitation of almost all rail networks in Africa.”

Further, he noted that, because multinational construction companies often carried out some of the largest infrastructure projects, a skills and knowledge transfer gap emerged upon completion of the work. Skills shortages were a widespread problem. Skilled workers often leave Africa for better wages abroad.

Milne said that future challenges included the political unrests that the continent is facing. “Africa is notorious for volatile political conditions. Although the political climate has been relatively stable in recent years, there is still significant risk of unexpected changes in countries’ political climate.”

 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Updated 3 hours ago Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
SERVODRIVE PRESS There is an opportunity in South Africa to create a competitive advantage over conventional metal-pressing operations
Updated 3 hours ago Local automotive products manufacturer GUD Holdings will increase its product offering to the automotive sector following its R100-millon investment in a 630 t servo drive transfer press and a new manufacturing site in Port Elizabeth, in the Eastern Cape.
Updated 3 hours ago The South African automotive industry is unlikely to see a future wage settlement at a level lower than the 8% to 10% increases a year agreed to in a range of three-year wage deals signed in the retail, component and assembly sectors in 2013, says Nissan South Africa...
More
 
 
Latest News
The presidency on Thursday said it would not entertain what it called rumours and gossip about operations at Eskom. "President Jacob Zuma has been kept fully briefed about the developments at Eskom and the attempts being made by the Minister of Public Enterprises, Ms...
A senior US embassy official has urged the South African government to address a number of mixed messages on the openness of the country to foreign investment so as to take advantage of a growing appetite among American companies for investments into the country and...
More
 
 
Recent Research Reports
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
 
 
 
 
 
This Week's Magazine
Updated 3 hours ago Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
Updated 3 hours ago After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
Updated 3 hours ago South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
Updated 3 hours ago The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Updated 3 hours ago Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96