REGIONAL CONFERENCE ON EAST AFRICAN RAILWAYS Revitalizing the Railways for Enhanced Regional Integration and Economic Growth TANZANIA CURRENT PLANS FOR DEVELOPMENT OF EXISTING AND NEW RAILWAYS Presentation by Eng. Benhardard M. Tito: Managing Director: Reli Assets Holding Company Ltd At Mlimani City Conference Hall Dar es Salaam on 11 12 March, 2010 1.0 Historical Back ground 1.1 Construction History The history of the railways in Tanzania dates back to the German colonial era, when in the early 1880s the first ever railway line in East Africa was built by the Germans from Tanga. The line reached Mombo in 1904 and finally reached Moshi and Arusha in 1911 and 1929 respectively. The branch line to connect with Kenya reached Taveta in 1924. The Central Line started to be laid at Dar es Salaam in 1905, reaching Morogoro in 1907 and finally reaching Mwanza in 1926. The branch from Tabora to Kigoma was laid in 1912, reaching Kigoma in 1914. The Central line was connected to Tanga line in 1963. The Chinese built 1860 km Cape Gauge (1067mm) TAZARA was constructed in a record time of 5 years from the port of Dar es Salaam to New Kapiri Mposhi, in Zambia between 1970 and 1975. The newest piece of railway in Tanzania, and indeed, in East Africa, is the 115 km long railway line between Manyoni and Singida which was laid at Manyoni in 1985 and reached Singida in 1997. A map of the railways construction history in Tanzania is shown in Appendix I. 1.2 Rail Transport Needs The need for rail transportation became obvious as commerce and economic growth started in earnest under the German administration. The introduction of sisal (the biggest cash crop then), coffee, rubber trees and cotton; and the abundance of hard wood timber available needed reliable transportation system. 1
The objective of building the railways was largely to transport raw materials and agricultural produce to the coast for onward export for value addition in Europe and bring back finished products. It is not historical accidents therefore that, all the railways in East Africa follow the East to West direction, i.e from coast to hinterland. 2.0 TRC / RAHCO Railway Network RAHCO manages a total of 2,707 kilometers of single track Meter Gauge railway network traversing across 12 out of 21 regions of Tanzania Mainland. The railway system has not evolved much after the last lines were laid by the colonialists. The length has remained largely the same and the signaling and telecommunication system has generally not caught up with modern technology. There are sections on the main line which have 80 years old rails. The Moshi- Arusha section has rails which are over 80 years old. In the link line most of the rails are about 46 years old. RAHCO railway network can be divided into two main categories, ie, Main Lines with a total track length of 2,256 km and Branch Lines totaling 451 km in length. The entire network has 128 railway stations in total, 115 stations on the main lines and the remaining 13 stations are located on the branch lines. The details are provided below. Main Lines: Dar es Salaam Tabora 840km Tabora Kigoma 411km Tabora Mwanza 379km Tanga-Moshi- Arusha 438km Ruvu Junction Mruazi Junction 188km Brach Lines: Kilosa Kidatu 108 km Kaliua - Mpanda 210 km Manyoni Singida 115 km Kahe Taveta (border with Kenya) 18 km The network serves four non-coastal, neighboring countries of Burundi, Rwanda, Uganda and the eastern Democratic Republic of Congo. It joins Kenya Railway network through the 18 km branch line from Kahe to Taveta. A map of the existing and proposed lines is shown in Appendix II. 2
The total railway network has an infrastructure design capacity of carrying 5 million tones of freight per annum. However, due to various reasons the design capacity utilization is currently about 10%. The track is characterized by generally light rails with rails poundage ranging mainly from 45lbs/yard to 60lbs/yard. The track has maximum section of 80lb /yd rails and rests on steel sleepers. Out of the total 2,707 km of the entire railway network, only 452 km has 80lbs/yard rails, which is only 16.7%. In the main lines the smallest section is 55.12lb/yd and on branch and Arusha line rail sections are as small as 45lb/yd. The sharpest curve on main line between Dar es Salaam and Kigoma and Mwanza is 8 degree curves. Maximum gradient on the main line is 2%. The current maximum speed allowed for passenger train is 60kph and for freight trains is 56 kph. Due to increased number of accidents related to the poor condition of infrastructure the allowable speed was reduced to 50kph for both passenger and Freight Trains on track with rail section of 80 lb/yd. For sections with smaller poundage the speed was reduced to 30kph and on branch lines the speed limit is 25kph. The track ballast used on the railway network is mainly granite stones of sizes between 25mm 50mm. In some branch lines no stone ballast is available and earth ballast is used. Stone ballast covers only about 60% of the total track length. Existing bridges (over 2 m.) can carry between 10 to 25 tons per axle with only about 18% of them built to carry 25 tons per axle. In the entire railway network steel sleepers are predominantly used. In some bridges wooden sleepers are used. A Table showing the current track profile is detailed in Appendix III and a Table showing bridges and their axle load rating is provided under Appendix IV. 3.0 Establishment of Reli Assets Holding Company Ltd Reli Assets Holding Company Limited (RAHCO) was established under Railway Act No. 4 of 2002 and became operational on 3rd September, 2007. This was a result of conclusion of a long process of concessioning a state owned Tanzania Railways Corporation (TRC), in which the Government decided to establish RAHCO as a custodian of railway assets and signatory to the Concession Agreement. 3
Vision Adequate, Reliable and State of the Art Railway Infrastructure in the Region by the 2025 Mission To Acquire, Develop and Manage Railway Infrastructure to Satisfy Present and Future Rail Transport Needs Roles and Functions RAHCO was established to undertake the following main roles and functions: To develop, promote and manage the rail infrastructure assets; To secure and provide rail infrastructure; To manage Tanzania Railways Corporation (TRC) residual assets and liabilities; To identify and develop new railway projects; To enter into agreement with other entities in order to secure the provision of rail transport services, whether by means of Concession, Joint Venture, Public-Private Partnerships or other means, and to this end to delegate its own function of providing rail transport services to one or more railway operators.; To monitor the Concession Agreement; To step in the event of a breach of contract by the Concession Operator, To upgrade the railway infrastructure beyond the level to be undertaken by the concessionaire; and To invest in railway assets and infrastructure, among others. As mentioned above the process to commercialize TRC was concluded in September, 2007 when M/s RITES of India was awarded the tender. Following the award, RITES and the Government of Tanzania formed a company known as Tanzania Railways Limited (TRL) on a 51% - 49% shareholding respectively. On 1 st October, 2007, TRL was handed over the activities of TRC with a mandate to operate railway transport services for a period of 25 years following the signing of a Concession Agreement on 3 rd September, 2007 between TRL and RAHCO on behalf of the Government of Tanzania. 4.0 Historical Facts Up to the late seventies and early eighties, rail transport was the predominant and most preferred mode for both freight and passengers, commanding over 70% market share of freight transport. However, over the years, rail infrastructure 4
and rolling stock became victims of inadequate funding, rendering the infrastructure to dilapidation. Slowly customers ran away from the railways to the road which from the mid eighties became beneficiaries of huge budget allocations. Current statistics show that the freight market of the Tanzania Railways Ltd (TRL) stands at less than 5%. The tables and graph below illustrate the dwindling performance of TRC/TRL for the last seven years. Net Tones Moved 2003 2004 2005 2006 2007 2008 2009 Transit 445,146 474,691 363,236 240,510 157,104 136,271 198,576 Domestic 997,567 858,558 765,272 534,771 388,137 368,494 227,465 TOTAL 1,442,713 1,333,249 1,128,508 775,281 545,241 504,765 426,041 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 Transit Domestic TOTAL 400,000 200,000 0 2003 2004 2005 2006 2007 2008 2009 Transit 445,146 474,691 363,236 240,510 157,104 136,271 198,576 Domestic 997,567 858,558 765,272 534,771 388,137 368,494 227,465 TOTAL 1,442,713 1,333,249 1,128,508 775,281 545,241 504,765 426,041 Source: TRC/TRL 5
The same declining trend was also evident in passenger transportation as can be observed from the Table below. 2003 2004 2005 2006 2007 2008 2009 First Class 11,204 11,179 11,373 9,869 12,561 8,278 2,927 Second Class Sleeping 50,531 50,388 50,672 47,505 55,765 34,950 15,811 Second Sitting 10,599 5,867 4,939 3,758 6,985 3 28,091 Third Class 574,532 508,749 525,018 460,229 421,116 321,133 240,852 TTE 36,815 51,786 82,027 72,528 88,892 94,455 51,753 TOTAL 683,681 627,969 674,029 594,089 585,310 458,819 339,434 Source: TRC/TRL 5.0 Current Status of Operations Since its take over in October 2007 the performance of the Concession has been unsatisfactory in almost all aspects as evidenced by the performance trend indicated above. In addition the following is the current status of operations: There has been very little track maintenance, as only 47km of track between Malongwe and Itigi stations has been relayed with 80Ib/yard rails. Rail materials for relaying the remaining 150km out of the 197 km west of Itigi which has very old rails and sleepers, have been received so far. However there is still a shortage of sleepers for relaying 80km to complete relaying the said 197km. The supply of these rails and sleepers was financed by the World Bank. 6
The quarry ballast stock at Tura is exhausted. The concessionaire has not produced any ballast since commencement date and they have no plans to revive production. There are also no ballast hoppers to carry the ballast as almost all of them were involved in accidents beyond economic repair and have been scrapped. Telecommunication and Signaling between Tabora and Kigoma which was completely vandalized has been enabled using VHF radios. Radio systems have their shortcomings and are not recommended for block signaling and issuance of permission to enter a block section. Train services are currently starting from Dodoma (458km from Dar es Salaam) following heavy rains that have washed away railway infrastructure including bridges between Kilosa and Gulwe. Restoration work is going on. Tanga line is dormant. Kahe Taveta branch, linking with KRC network is not operational. Kilosa Kidatu branch line is also not operational. 6.0 Rolling Stock. 6.1 Locomotives In December, 2009 TRL had a fleet size of 83 mainline locomotives of different classes, including, 89xx, 88xx, 73xx, 65xx, 64xx and 73Rxx (hired from India) Out of the total fleet size of 83 locomotives, serviceable locomotives were 63, equivalent to 75.9% The reduction in serviceable fleet is a result of inadequate funds allocated and secured for purchase of spare parts. Apart from the 73Rxx locomotives which are in a fairly good condition but fuel inefficient, the rest of the locomotives are old and almost all of them are beyond 30 years of age. 6.2 Wagons TRL has a holding fleet of 1357 wagons of different types. These types include Covered wagons, Open High wagons and Container wagons. Other types are Tank wagons, Cattle wagons, Phosphate wagons and Open Low (flat wagons). The whole fleet is serviceable and can therefore be utilized for transportation of cargo. 7
7.0 TRC / TRL Revenue and Productivity As for the other performance indicators, revenue earned also registered a declining trend as demonstrated on the Table below. Indicator Unit 2001 2002 2003 2004 2005 2006 2007 2008 2009 Revenue US$ Million 64 67 59 59 63 37 27.5 35.2 Not availabl e The following table indicates the Productivity of TRC/ TRL in relation to Tonne / km per employee for the period 2001 to 2009. The trend shows that productivity slightly improved after the concession, although remaining far below a record high of 205,487 achieved by TRC in 2003. Unit 2001 2002 2003 2004 2005 2006 2007 2008 2009 Tone-km /employee Tonkm 164,530 170,118 205,487 171,004 146,309 94,268 132,647 142,455 145,556 8.0 Railway Transport Policy The Railway Transport Policy is spelt out in the National Transport Policy and Transport (2003) and Sector Investment Programme (2007/08 2011/12). The two Policy and Program Documents recognize the main Goal of the Railway Sub Sector as being to rehabilitate, improve and expand railway network to enable exploitation of transport bulky natural resources and evacuation of products especially where long distance transport is involved. The Policy objective is to improve and expand railway network to enable the railway to play its role in the economic development of the country. The TSIP identify the following Strategic Targets for the Railways Sub Sector: Keeping railway infrastructure in public ownership or oversight, but at the same time bringing in public / private sector partnerships wherever possible. 8
Mobilizing financial resources through the Government and also through Government / Private sector partnerships while at the same time seeking for the support of Development Partners. Undertaking Railway Master-plan Study to determine level of modernization and infrastructure required, additional network needs and funding modalities. 9.0 Future Development Plans 9.1 Investment Plans RAHCO has recently adopted its first Strategic Corporate Plan which will be implemented starting from 2010/2011 Financial Year. The 5 year Plan is in line with the Government National Transport Policy (NTP), the Transport Sector Investment Program (TSIP) and to a larger extent the East African Railway Master Plan. The Strategic plan has identified a number of railway infrastructure development projects which include upgrading of the entire existing net work as well as construction of new railway lines. Plans are under way to implement the following projects, among others: (i) Upgrading of 982 km of railway line from Dar es Salaam to Isaka from the existing meter gauge to standard gauge and Construction of 694 km of new railway line from Isaka Kigali (Rwanda) / Keza / Gitega Musongati (Burundi). It is planned to widen the gauge of the entire RAHCO network from the present meter gauge to the Standard Gauge. This is in line with the East African Railways Master Plan which is due for ratification by Heads of States of Partner States. This may not sound justifiable in some corners but the fact of the matter is that RAHCO railway network is of last 100 plus years design with a lot of limitations requiring re-alignment of the track, curves reduction, bridges strengthening to carry heavier axle loads, there is need for gradient reduction and lastly, the light rails which are also very old and on steel tiers have to be replaced with heavier rails which shall require concrete tiers. The entire fleet of the rolling stock is very near to or has reached and most have passed their designed lifetime. In other words, the railway needs rebuilding and it does not make difference whether it is rebuilt in meter gauge or standard gauge. Upgrading of the gauge will also be done hand in hand with the following: - Use of pre stressed concrete sleepers 9
- Use of heavier rails with poundage of 120Lbs/yard or higher - Strengthen bridges to accommodate 32.5 tons axle load - Realignment to reduce gradient and curvature - Improve the existing stations and yards to accommodate longer trains - Upgrade the existing fiber optic cable system from Dare es salaam to Tabora - Installation of fiber optic telecommunication network between Tabora - Kigoma, Tabora - Mwanza and Isaka Rusumo / Ruvubu River. Upgrading of the railway network will result into running of heavier trains at higher speed and therefore more tonnage. Feasibility study for the construction of a new railway line at standard gauge from Musongati in Burundi and Kigali in Rwanda, to Isaka in Tanzania is complete. This was undertaken by DB Consultants from Germany. A Feasibility study for upgrading of a railway line from Isaka Dar es Salaam to Standard gauge is also complete. This was carried out by BNSF of United States of America. Widening of the track from Isaka to Dar es Salaam will ensure interconnectivity of the railway systems in the region. The next step for the new construction and upgrading is to undertake detailed engineering design. It expected that this project will be operational by 2014. (ii) Conducting Feasibility study for upgrading 1094 km of railway line from Isaka Mwanza and Tabora Kigoma and arterial lines (Kidatu, Singida and Mpanda) from meter gauge to standard gauge. As step towards upgrading of the entire network from the existing meter gauge to standard gauge feasibility studies will be commissioned for 1094 km of railway network as detailed above. (iii) Construction of 12km of a railway line from Kange to proposed port at Mwambani in Tanga and 25 km of a railway line from Kidomole (Link line) to the proposed port at Mbegani in Bagamoyo. These lines will be constructed in line with the Tanzania Port Authority (TPA) implementation schedule as port rail connections from the proposed new ports of Mwambani Tanga and Mbegani in Bagamoyo. Feasibility studies and engineering design will be commissioned once the exact locations and design of the proposed ports are determined by TPA. The 10
two ports are expected to assist in decongesting the port of Dar es Salaam and providing alternative routes for non coastal countries. (iv) Construction of about 664 km of a new railway line from Arusha to Musoma Construction of this line (which is currently in high demand by Uganda) will provide alternative route for transit goods to and from non coastal countries, in particular Uganda, Rwanda and Burundi. The line will include two branch lines to the already operational fertilizer plant at Minjingu and the other to the proposed soda ash plant at Wosiwosi near Lake Natron. 9.2 Cost & Timeline Cost and indicative timeframe of planned projects are in line with RAHCO Corporate Strategic Plan, whose relevant parts are reproduced below. Indicative Budget in Tshs. millions Target Description 2009-10 2010-11 2011-12 2012-13 2013-14 TOTAL 2009-2014 A02: 982 km of railway line from Dar es salaam to Isaka upgraded from meter gauge to standard gauge by 2014 1,684 1,239 367,784 418,032 418,032 1,206,771 A03: Feasibility study for upgrading of 1094 km of Railway Line from Isaka Mwanza and Tabora Kigoma and arterial lines (Kidatu, Singida and Mpanda) from meter gauge to standard gauge conducted by 2014 1,797 1,014 - - - 2,811 A06: 442 km of new Railway Line from Isaka Rusumo / Keza Ruvubu River constructed by 2014 (part of Kigali /Musongati Isaka DSM Railway Project) 4,401 368,28 0 368,280 368,280 419,839 1,529,080 A07: 12km of a Railway Line from Kange to proposed Port at - 94 44,329 - - 44,423 11
Mwambani in Tanga constructed by 2014 A08: 25 km of a Railway Line from Kidomole (Link line) to the proposed Port at Mbegani in Bagamoyo constructed by 2014. - 195 92,338 - - 92,533 A09: 230km of a Railway Line from Arusha Lake Natron constructed by 2014 (part of Arusha Musoma Railway Project) - 2,360 276,210 276,210 294,624 849,404 GRAND TOTAL 7,882 373,182 1,148,941 1,062,522 1,132,495 3,725,022 Source: RAHCO Corporate Strategic Plan: 2009/10 2013/14 9.3 Expected Impact of Investment Plan The National Strategy for Growth and Reduction of Poverty (NSGRP) identifies the transport sector as one of the key sectors that contribute toward poverty reduction. It is expected that Investment in the Railway Projects mentioned above will impact the following areas: Create employment in all categories of skilled, semi skilled and unskilled labour. This will increase household income and standard of living. Provide more effective and efficient rail connections for domestic as well as transit bulky traffic and facilitate effective use of alternative ports along the coast. Open and provide access and transportation to areas wealth with Mineral Deposits. Enhance accessibility / marketability of agricultural crops / products and so improve their competitiveness. Facilitate trade among the communities. Enable households to more easily access health facilities and hence reduce mortality rate. 12
Lowering transport cost and time of delivery of goods. This will enhance macroeconomic growth and stability of the country and region. Relieve roads from persistent damage due to its excessive use, as bulky traffic will be carried by a more efficient and durable railway infrastructure. This will lower roads maintenance and rehabilitation costs. 10.0 Strategy to Finance Additional Plans It is expected that Implementation of the planned Railway Projects will be through a number of financing options. The options include, but are not limited to the following: Government budget allocations, as appropriated by the Parliament; Grants and donations from Development partners and others financiers; Public Private Partnerships (PPP); Commercial Banks and Financial Institutions. 11.0 Conclusion For a decade now the performance of the railway sub sector has continued to drastically decline mainly due to inadequate funding for re-investment in infrastructure and rolling stock. The sub sector is now faced with aged and obsolete equipment and infrastructure, resulting into traditional customers diverting their goods to roads. At present the railway sub sector transports less than 5% of the total seaborne traffic. Thus the need for enhanced re investment in railway projects cannot be overemphasized. To reverse the trend support from the Government, Private Sector and Development Partners and Agencies and other stakeholder is needed now more than ever. Motto: Go Rail, Save the Road 13