http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.10
R/$ = 10.50Change: 0.05
Au 1294.90 $/ozChange: -0.67
Pt 1407.50 $/ozChange: -21.00
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 21, 2012

Rail investments to help lower transportation costs in Africa

Back
Africa|Ghana|Morocco|Nigeria|Tanzania|USD|Freight Transportation|Passenger Transportation|Rail Infrastructure|Transport|James Milne
africa|ghana|morocco|nigeria|tanzania|usd|freight-transportation|passenger-transportation|rail-infrastructure|transport-industry-term|james-milne
More Insight
© 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
 
 
 
 
 
 
 
 
Other Transport & Logistics News
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
TEAMWORK The 65 t container straddle carriers were loaded onto low-bed trailers using two mobile cranes
Machine moving and abnormal load specialist company Lovemore Bros successfully transported two cumbersome container straddle carriers from the Port of Durban to the city’s former major airport, Durban International Airport on February 11 and 12.
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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