Monday, May 1, 2017

All Aboard for China's African Railroads

A new Chinese built railroad scheduled for next month's trial run from Kenya's busy Mombasa port to the Kenyan capital of Nairobi offers students a good opportunity to study the map of East Africa. At the same time, this infrastructure improvement will benefit, not only the Chinese, but all future marketers who want to get their commodities and products in and out of Africa.

China has seen Africa's need for railroads as a promising use for its excess steel production and a way to avoid charges of dumping, i.e. exporting overcapacity at below fair market prices. Since Africa's population is expected to boom from one to four billion between 2000 and 2100, China also is looking ahead to the need for ports and transportation links capable of handling a growing market for Chinese goods (and Africa's own growing economies).

China has experience building railroads that connect African ports, known to handle 90% of the continent's exports and imports, with the interior. In the 1970s, China financed and built the TAZARA Railway from Zambia's Copperbelt to the port at Dar es Salaam in Tanzania. Other Chinese railroads connect Nigeria's capital at Abuja to Kaduna, and an electrified railway that opened this year gives landlocked Addis Ababa in Ethiopia access to the Gulf of Aden/Red Sea in Djibouti.

By the time the Mombasa-Nairobi line is ready to handle passengers and freight in January, 2018, it will have taken seven years for a process that required: Kenya and the China Road and Bridge to sign a memorandum of understanding, to finalize $3.6 billion in financing from China's Exim Bank and Kenya's government, to lay tracks, to build and deliver locomotives and cars, and to complete trial runs. Kenya's attitude toward the Chinese-built Mombasa to Nairobi railway turned negative as ballooning costs turned four times the original estimate and raised suspicions of corruption.

  Plans call for extending the Mombasa-Nairobi line farther west around the northern coast of Lake Victoria, up to the Uganda border by 2021, and then on to Uganda's capital in Kampala and Kigali, Rwanda, with a branch line to Juba, South Sudan. Extending the Mombasa-Nairobi line into Uganda would facilitate oil shipments from new fields in and around Lake Albert and copper, cadmium, and other mineral shipments from the Democratic Republic of the Congo. It also would improve the supply route to the Dominican nuns mentioned in the earlier post, "Celebrate Uplifting Efforts to Promote Self Reliance in Africa."

Although the Mombasa-Nairobi route is only about 300 miles long, terrain required 98 bridges, embankments, cuttings, and an elevated section through Tsavo National Park that provides six openings for wildlife to pass underneath. Annually, freight trains are expected to carry 22 million tons over the line, 40% of all cargo entering Mombasa. Trips from the freight terminal at Mombasa to container depots at Embakasi/Nairobi are expected to take less than eight hours. New standard gauge trains traveling at 75 mph could reduce a passenger's trip from Mombasa to Nairobi to four hours compared to the current all day trip on the deteriorated, leftover meter gauge railway built before Kenya's independence. The trip will take longer when any stops are made for passengers at the 40 stations expected to be completed along the route.

Africa's Chinese railroads are a work in progress. Funding and loan repayment, as well as stolen materials, have plagued these projects. In some cases, the China Communications Construction Company will operate Africa's railways while local employees are being trained. Over Easter, Nigerians complained about changed schedules and poor communication. The same poor maintenance that left colonial railroads in disrepair after African countries gained independence could be a problem in the future.

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