1.
African railways – Vision 2025 4 March -2009 Railways & Harbours Stanley Mkoko, UIC-Africa

2.
<ul><li>Background </li></ul><ul><li>Problems and Challenges </li></ul><ul><li>SADC Corridors </li></ul><ul><li>Vision proposed solution </li></ul><ul><li>Elements of vision </li></ul><ul><li>What is required for Future </li></ul><ul><li>Benefits of Vision </li></ul><ul><li>Conclusion </li></ul>Presentation Layout

3.
The new UIC regional organization NORTH AMERICA MIDDLE EAST ASIA EUROPE LATIN AMERICA AFRICA

4.
UIC-Africa Head Office <ul><li>Operations and Information Technology </li></ul><ul><li>2. Human Resources </li></ul><ul><li>3. Infrastructure and Equipment </li></ul><ul><li>4. Marketing </li></ul>Focus area: 2009/10

5.
The world and the African market <ul><li>20.4% of the total land area </li></ul><ul><li>14% of the world population </li></ul><ul><li>Half of the worlds landlocked countries </li></ul><ul><li>More than 50 countries and several regional organizations </li></ul><ul><li>Not homogenous </li></ul><ul><li>(development levels, opportunities etc) </li></ul>

6.
African Oil Production ©Transportutvikling AS – May 2007 Above 1 mill. Bbl/day 0,5 to 1 mill bbl/day >0 to 0,5 mill. Bbl/day Oil production No oil production ANGOLA ALGERIA BENIN BOTSWANA BUKINA FASO CAMEROON CENTRAL AF. REPUBL. CHAD R.O. CONGO D.R.CONGO EGYPT ETHIOPIA GABON GAMBIA COTE D’IVOIRE DJIBOUTI EQUATORIAL GUINEA GHANA GUINEA GUINEA-BISSAU KENYA LESHOTO LIBERIA LIBYA NAMIBIA MOZAMBIQUE NIGER MADAGASCAR NIGERIA SIERRA LEONE MOROCCO MALAWI MALI MAURITANIA SOMALIA SOUTH AFRICA SUDAN RWANDA SAO TOME AND PRINCIPE SENEGAL SWAZILAND TANZANIA TOGO TUNISIA UGANDA ZAMBIA ZIMBABWE BURUNDI ERITHREA <ul><li>5 countries counts for 81% of the total African oil production: </li></ul><ul><ul><li>Nigeria (24,7%) </li></ul></ul><ul><ul><li>Algeria (20,9%) </li></ul></ul><ul><ul><li>Libya (16,8%) </li></ul></ul><ul><ul><li>Angola (11,1%) </li></ul></ul><ul><ul><li>Egypt (7,5%) </li></ul></ul>

7.
Problem & Challenges <ul><li>Missing links or connectivity </li></ul><ul><li>Poor trade partnership </li></ul><ul><li>Lack of integration with Ports </li></ul><ul><li>Lack of funds in financing </li></ul><ul><li>Poor infrastructure and Rolling stock </li></ul><ul><li>Lack of human development </li></ul>

8.
<ul><li>Connectivity to the port </li></ul><ul><li>Traffic Congestion </li></ul><ul><li>Infrastructure development </li></ul><ul><li>Investment and funding required </li></ul>Rail / Port Issues

9.
Transportation issues – improve interconnections Simplified illustration: Lack of inter- Connections Source: Transportutvikling AS, 2007

10.
Intraregional trade <ul><li>The African Intra regional trade is growing, but low </li></ul><ul><ul><li>Africa: 10% </li></ul></ul><ul><ul><li>North America: 40% </li></ul></ul><ul><ul><li>Western Europe: 68% </li></ul></ul><ul><li>Intra-African trade is an opportunity, because increased trade between countries creates a demand for better roads and railways and provides the wealth to build and maintain them. </li></ul>

11.
The world and the African market

12.
Growing African trade

13.
Energy <ul><li>Energy prices has a strong impact on transportation costs </li></ul><ul><li>Energy prices does also have a strong impact on the countries economic conditions and their capability to invest and improve the railways </li></ul>

14.
Proposed Solution

15.
Strategic Rail corridors in SADC Madagascar Strategic Corridors East-West Connectivity Malawi Zambia Botswana Namibia South Africa Mozambique United Republic of Tanzania Democratic Republic of Congo Zimbabwe Angola Swaziland SADAC must focuses on integration of strategic corridors through integrated rail operations with Southern African Railways to maximise Infrastructure 60% of Mineral Deposits in Southern Africa

16.
SADC Growth Mauritius GDP Growth 2005 – 4.8; 2006 – 5.10 Corridor Market GDP Growth 2005 – 7.0; 2006 – 7.0 Corridor Market Copper, Sulphur & Diesel GDP Growth 2005 - 6.5; 2006 – 7.0 Corridor Market Containers GDP Growth 2005 – 7.3; 2006 – 6.5 Corridor Market Coal, Sugar & Maize GDP Growth 2005 – 2.0; 2006 – 1.7 Corridor Market Anthracite, Pulpwood GDP Growth 2005 – 5.0; 2006 – 5.0 Corridor Market Sulphuric Acid, Diesel, Copper & Sugar GDP Growth 2005 – 4.2; 2006 – 3.5 Corridor Market Cement, Petrol, Diesel, & Sodium Carbonite GDP Growth 2005 – -1.6; 2006 – 0 Corridor Market Ferrochrome, Coke, granite, Petrol & Diesel GDP Growth 2005 – 13.5;2006 – 24.5 Corridor Market GDP Growth 2005 – 3.6; 2006 – 3.8 Corridor Market Zinc, Cement & Maize GDP Growth 2005 – 4.0; 2006 – 3.5

17.
Rail Logistics Solutions <ul><li>Actions </li></ul><ul><li>Customer focus </li></ul><ul><li>Engagement with parties for load consolidation opportunities </li></ul><ul><li>Joint development of solutions </li></ul><ul><li>Service Level Agreements across modes and logistics services </li></ul><ul><li>Multi-modal and trans-loading solutions for Corridors </li></ul><ul><li>Focused Investment </li></ul><ul><li>Objectives : </li></ul><ul><li>Increased density/volumes on corridors </li></ul><ul><li>Reduced transport costs </li></ul><ul><li>Utilise best-fit modal solution </li></ul><ul><li>Density / consolidation of loads support dedicated scheduled railway operations </li></ul>

18.
Rail Infrastructure In Ports <ul><li>Encourage inland cargo on Rail </li></ul><ul><li>Supports Rail Operating Philosophy </li></ul><ul><li>Rationalise Rail lines on quay side </li></ul><ul><li>Near port staging areas for Rail </li></ul><ul><li>Near port terminals for freight </li></ul>

19.
Initiatives to improve Performance of Rail system into Ports <ul><li>Restore Rail Operational Capacity feeding ports </li></ul><ul><li>Rail Network upgrade and availability </li></ul><ul><li>Locomotive productivity </li></ul><ul><li>Wagon productivity </li></ul><ul><li>Train movement management </li></ul><ul><li>Yard efficiencies </li></ul><ul><li>Crew re-skilling and improvement of road knowledge </li></ul><ul><li>Introduction of New Technology </li></ul>

20.
Metamorphosis of Ports and Rail Public Agencies Independent Competing Businesses Elements in a Logistics System Trade Enablers <ul><li>Central control </li></ul><ul><li>Publicly owned </li></ul><ul><li>Harbour Boards/ Authorities </li></ul><ul><li>Autonomous ports </li></ul><ul><li>Privatised/ </li></ul><ul><li>quasi-privatised </li></ul><ul><li>Internal KPI’s </li></ul><ul><li>Planning focus </li></ul><ul><li>Vertical & horizontal integration </li></ul>Focus on improving internal efficiencies Focus on achieving network efficiencies Shifts in the role of Ports: Mid 80’s Focus on achieving global performance <ul><li>Economic performance </li></ul><ul><li>Global competition </li></ul>Late 90’s Current Shifts in the role of Rail Port Rail is integral to the total ‘supply chain promise’ Rail Maritime

21.
Elements of Vision

22.
<ul><li>A vision document is not a plan. </li></ul><ul><li>There are always different views (how to organize, how to present, methods, understanding of the same issues etc) </li></ul><ul><li>Common structure for all global regions </li></ul><ul><li>The intention is to start up a positive process </li></ul>VISION DOCUMENTS & REGIONAL PLANS

23.
Elements of an Africa 2025 Rail Vision: ‘More Rail for Africa’ Market Adaptation Skills Development Policy Frameworks Private sector participation Modal Co-operation Operational Efficiency Regional Inter- connectivity Investment Vision 2025

24.
Transit corridors can be important, not only for transit Developing the hinterland

25.
What is required for Future

26.
What is expected from African Railways <ul><li>The vision is ours </li></ul><ul><li>Support the UIC-Africa </li></ul><ul><li>Collaboration with other rail partners e.g. </li></ul><ul><li>Suppers, Customers </li></ul><ul><li>Provide information and expertise when </li></ul><ul><li>required </li></ul><ul><li>Alignment with other rail organisation </li></ul>

27.
Execution and Implementation Strategy <ul><li>Vision 2025 has been adopted by UAR </li></ul><ul><li>and will be presented to AU </li></ul><ul><li>Define jointly Terms of Reference: </li></ul><ul><li>Help in Research and Experts UIC-HQ </li></ul><ul><li>Create Regional groups to execute the tasks. </li></ul><ul><li>Communicate with stakeholders </li></ul>

28.
In Africa- Rail is a strategic resource <ul><li>Provides time and place utility </li></ul><ul><li>Lever for competitiveness </li></ul><ul><li>Lever for economic growth & development </li></ul><ul><li>Lever to connect industrial heartlands to global trade </li></ul><ul><li>Rail is the transport </li></ul><ul><li>backbone </li></ul>USE IT WELL <ul><li>Freight cost as a % of total import value : </li></ul><ul><ul><li>8.8% for developing countries, </li></ul></ul><ul><ul><li>5.2% for industrial countries (UNCTAD 2002) </li></ul></ul><ul><li>At a sub-regional level </li></ul><ul><ul><li>West Africa: 14% </li></ul></ul><ul><ul><li>East & Southern Africa: 15.2% </li></ul></ul><ul><ul><li>North Africa: 11% </li></ul></ul>

29.
Global Customer Requirements for Rail <ul><li>Heightened pressure for world-class competitiveness </li></ul><ul><li>Efficient rail is a competitive advantage for customers to get product to market – 5 “R’s” of Rail: </li></ul><ul><ul><li>Right Place </li></ul></ul><ul><ul><li>Right Time </li></ul></ul><ul><ul><li>Right Quantity </li></ul></ul><ul><ul><li>Right Cost </li></ul></ul><ul><ul><li>Right Condition </li></ul></ul>Rail is an integral part of the total supply chain rail operators in Africa must think outside the ‘rail’ box

30.
The future - freight <ul><li>There is a connection between economic growth and transportation </li></ul><ul><li>GDP projections for Africa (2025) are, by most analysts, positive. The projected GDP growth creates opportunities which are possible to capture. There are also positive developments prospects among the railways and many companies projects stable growth in their freight volumes. </li></ul>

31.
Benefits of Vision

32.
SADAC Benefit From Vision 2025 <ul><li>Reliable, Safe, Sustainable Scheduled Railway </li></ul><ul><li>Point to Point Service Delivery </li></ul><ul><li>No frills, Low Cost and Efficient </li></ul><ul><li>Focus on chosen corridors (SA and SADC) </li></ul><ul><li>Enable Multiple Rail Operators </li></ul><ul><ul><li>Enable Feeder Line Concessions </li></ul></ul><ul><ul><li>Relinquish marginal lines </li></ul></ul>Rail Industry Environment Efficiency Performance

33.
Drivers of Rail freight growth <ul><li>Collaboration </li></ul><ul><li>Share real-time data with key customers, </li></ul><ul><li>suppliers and partners </li></ul><ul><li>Align individuals and organizations </li></ul><ul><li>Standardize processes and practices </li></ul><ul><li>Optimization </li></ul><ul><li>Implement new tools and processes </li></ul><ul><li>Eliminate inefficiencies </li></ul><ul><li>Leverage cost savings across communities </li></ul><ul><li>Connectivity </li></ul><ul><li>Standardize applications and platforms </li></ul><ul><li>Foster many-to-many collaboration </li></ul><ul><li>Enable trade exchange </li></ul><ul><li>Execution </li></ul><ul><li>Improve transportation, distribution, </li></ul><ul><li>inventory, and order management </li></ul><ul><li>Expedite financial settlements </li></ul><ul><li>Measure performance results </li></ul><ul><li>Speed </li></ul><ul><li>Increase responsiveness </li></ul><ul><li>Improve adaptability </li></ul><ul><li>Access information in real time </li></ul><ul><li>Visibility </li></ul><ul><li>Track inventory flow </li></ul><ul><li>Update order status in real time </li></ul><ul><li>Manage incidents </li></ul>Rail Freight Growth

34.
Rail has a role in Creating a ‘Seamless’ Supply Chain <ul><li>A system of integrating logistics players and customers through a seamless process supported by a common technology platform </li></ul>Rail Empty Truck Port Loaded Truck Customer Truck Depot Offloads Goods Loaded on Wagons & Departs Train Offloads at port Rail Terminal Cargo on Vessel Seamless process Common Technology Platform Customs

35.
Critical Success factor

36.
Critical Success Factor for Rail/Port Interfaces <ul><li>Modernised, well maintained rail infrastructure </li></ul><ul><li>Joint developmental objectives including spatial development </li></ul><ul><li>Integrated investment cases </li></ul>Infrastructure <ul><li>Quick turnaround of rolling stock </li></ul><ul><li>Joint efficiency targets </li></ul><ul><li>Joint investment planning </li></ul>Assets and Resources <ul><li>Joint Customer/ Industry strategies </li></ul><ul><li>Preferential access for Rail into terminals </li></ul><ul><li>Information sharing and planning </li></ul>Services

37.
<ul><li>African Railways must have a common vision to implement vision 2025 </li></ul><ul><li>Integrated and coordinated development </li></ul><ul><li>Development, Attraction and Retention of Skills </li></ul><ul><li>Infrastructure investment </li></ul><ul><li>Rail resources are strategic – need to be nurtured to be sustainable </li></ul>Conclusion

38.
Thank you