This report is the product of a six month long project by Push54, LLC, working with analysts located both in the United States as well as Senegal and West Africa. We sought to shed light on what in our view is the best positioning of Senegal’s economy and status in West Africa. The release of this report is part of Push54’s launch of our Africa Analytics service aimed at bridging U.S. investment interests in Africa as well as helping create market-based measures that allow investors and academia anywhere in the world understand the economic impacts, positive or negative, a country’s performance has on their internal markets and the effects on other countries nearby.

1. PUSH54, LLC:
FOCUS ON SENEGAL
AN OVERVIEW OF THE CURRENT
ECONOMIC TRENDS OF SENEGAL
Accelerating
Economic Growth
Through Integrated
Transport
Infrastructure.

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FOCUS ON SENEGAL:
AN OVERVIEW OF THE CURRENT ECONOMIC AND INFRASTURCTURE
TRENDS IN SENEGAL
PUSH54, LLC
Chicago, USA
July 2013
This report is copywrited by Push54, LLC; no part of it may be circulated, quoted or
reproduced for distribution without prior written approval from Push54, LLC

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Push54, LLC is an Africa focused U.S firm providing business and management consulting services,
African Diaspora executive search, and Africa analytics & research services.
1. Advisory services (Corporate, Institutional, and Government)
 Economic Branding
 Foreign Currency Exchange Risk Management
 International Business Development
 International Treasury System Procurement & Implementation
 Operational Risk
 Organizational Design
 Public Private Partnerships
 Regulatory Risk
 Trade Mission Organization
2. Executive Search
 A deep database of African Diaspora senior managers and consultants in corporate America with
a desire to work on the continent on short term(6 months to 2 years) or long term basis(3 years
plus).
 Strong focus on Psychometrics in building our database and match making with the role.
3. Africa Analytics
 Subscription based service
 Daily, Weekly, or Monthly notes.
 Heavy focus on private sector and macro-economic data drivers.
 Our core target audiences are African Diaspora in the U.S, Academia, Financial Institutions, and
Corporations with an interest in the African markets, and the African continent itself.

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PREFACE
This report is the product of a six month long project by Push54, LLC, working with analysts located both
in the United States as well as Senegal and West Africa. We sought to shed light on what in our view is
the best positioning of Senegal’s economy and status in West Africa.
The release of this report is part of Push54’s launch of our Africa Analytics service aimed at bridging
U.S. investment interests in Africa as well as helping create market-based measures that allow investors
and academia anywhere in the world understand the economic impacts, positive or negative, a country’s
performance has on their internal markets and the effects on other countries nearby.
The goals of the Focus report series and Push54’s Africa Analytics service is to not only provide our
membership with an understanding of what is currently taking place in a particular country or region in
Africa, but also provide a forecast of what decisions leaders will have to make and where those decisions
may land given the geopolitical economic map and the particular country’s demographic trends.
Here at Push54, we are dedicated to the Africa we grew up knowing and the Africa others are starting to
get a glimpse of. Through all the negative portrayals in the media; we see an economic story that is being
executed on wonderfully by today’s young African population and their more and more market oriented
leaders.
Where others see potential, we peer and see actions already being taken by some of the most innovative
business leaders coupled with much better central bankers. These business stories together show an
economic growth trend that has already gotten started and that many market participants outside the
continent are not aware of.
It is our goal to bring these stories to our membership and our ambition to build innovative benchmarks
and indexes that allow members to better follow what is happening in Africa and understand how events
like the recent news in Egypt affect the whole economy of the continent for better or for worst. Such
questions as: Which country in Africa is poised to gain economically from Egypt’s economic headwinds,
why and how can a firm participate in those investment gains?
Before concluding, I would like to emphasize that this work is independent and has not been
commissioned or sponsored in any way by any business, government, or other institution.
Justin Mahwikizi
Managing Principal of Push54, LLC
July 2013

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TABLE OF CONTENTS
PREFACE...................................................................................................................................................... 3
INTRODUCTION .......................................................................................................................................5
MACROECONOMIC OVERVIEW............................................................................................................6
Export performance................................................................................................................................6
Senegal’s Producer Price Index (PPI)....................................................................................................7
Rail Volume indicators...........................................................................................................................7
Air transport volume indicators............................................................................................................7
CHALLENGES & OPPORTUNITY ............................................................................................................8
Biggest challenge is biggest opportunity..............................................................................................8
Mali – Opportunity for better trade with Senegal...............................................................................11
SOLUTIONS PROPOSED.........................................................................................................................13
LONG-TERM BENEFITS...........................................................................................................................14
CONCLUSION ...........................................................................................................................................15
CONTACTS ................................................................................................................................................16

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INTRODUCTION
Among other West African countries, Senegal is fast becoming an economic powerhouse; developing
strong institutions and trade-minded policies. Among internal political stability, a positive international
rapport, and a vibrant cultural identity; Senegal also boasts an opportune geographical location, as the
western most position on the continent. Respective to other countries in the region, Senegal has already
begun to assert itself as a trade hub; due largely to its Atlantic port access, fishery industry, and having
established a marine transport presence in West Africa.
The foundation of Senegal’s continued, and accelerated, economic growth will heavily depend on its
commitment to improving and building on these advantages. Though the potential is high for further
export activity, there exist several barriers to taking full advantage of export possibilities; a major
challenge being the lack of reliable, robust, and long-lasting freight forwarding transportation
mechanisms. Instead, West Africa as a whole relies on outdated, poorly maintained, and sometimes
dangerous means of transporting goods within the continent. This is the problem at hand that several
people and organizations are focusing on solving as it is the underlying intrinsic challenge to unlocking
untold amounts of economic growth in Senegal and West Africa.
A robust, integrated transportation network designed to take full advantage of Senegal’s favorable
location, would not only serve as a beacon of economic foresight and innovation; but its workforce would
enjoy an abundance of employment opportunities in new industries and commercial enterprises. The
recommendation to which PUSH54 adheres is that Senegal would generate these opportunities through an
investment in construction reinforcement and maintenance planning in the following sectors: port, rail,
short haul trailer truckloads, and air freight logistics. The Senegalese people, with their entrepreneurial
skills already demonstrated at home and among its Diaspora, have demonstrated a willing capacity to
adapt quickly and take actionable steps toward economic gains.
As Senegal's population grows, it will present a great opportunity to continue to grow domestic markets.
This same workforce, given the right entrepreneurial environment and support from local policies, will be
able to contribute to exports through their manufacturing capacity.
In the following sections, we look at the current macroeconomic indicators, the challenges being faced,
what opportunities exist, and finally what solutions we propose and what the long term benefits would be
for Senegal and the Senegalese private sector.
In this inaugural “Focus” series, PUSH54 aims to look at the West African nation of Senegal through an
investment lens, which will allow readers to focus in on key economic perspectives and opportunities
related to freight forwarding and transportation. Based on our analysis, PUSH54 will share its own
recommendations on how Senegal will be able to position itself for long-term dominance as both a
domestic economic powerhouse, and as an international trade hub; with a key role in geopolitical and
economic relations during Africa’s rebranding and continued economic growth in this century.

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MACROECONOMIC OVERVIEW
In telling the Senegal story, we focus on three main indicators: Export statistics, the Producer
Price Index, Senegal’s rail volumes, and air transport indicators.
Export performance
Senegalese exports increased by 21% in February, 2013, as compared to February, 2012.
According to Senegal’s equivalent of the U.S. Bureau of Labor Statistics, the ANSD (Agence Nationale de
Statistique et Démographie) The chart above shows that, as of February 2013, India had assumed a lead
in its economic relationship with Senegal; Mali was a close second, maintaining a stable appetite for
Senegalese exports.
The key change in Senegal’s exports, however, was with Switzerland. Switzerland showed a major decline
in imports from Senegal between December 2012 and January 2013; or about 16% of market share. The
relationship has leveled off at around 13% of market share as of February, 2013.

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Senegal’s Producer Price Index (PPI)
We have observed a
0.3% appreciation in
prices in Senegalese
industrial production
for March, 2013; with
increases located in
industries such as:
chemical, mechanical,
paper, energy, and
food.
We have also registered lower prices in the construction industry; however, production prices in the
extractive, textile, and other manufacturing industries have remained stable. Compared to March, 2013,
industry production prices are decreasing 4.2% per year. Average prices over the course of the first three
months of 2013 have been 3.0% lower, when compared to the same period in 2012.
A PPI is a direct indicator of the near-term level of a consumer price index. This is because changes in
prices at the retail level (finished goods) are directly transferred to consumers at the point of sale. Since a
consumer price index is the primary indicator used to measure inflation in an economy, the PPI is a
preview of changes in the rate of inflation.
From the chart above, the PPI shows a modest increase but we see a trend of Senegal’s economy looking
to contain input prices of producers. Continued improvement in PPI helps with managing inflation
resulting from producers passing on increased input prices to the next buyer in the distribution chain. A
large part of these costs of input looms on transportation costs associated with a lack of an integrated
distribution channel across Senegal. Addressing this issue will help manage the PPI as well as inflation
long term.
Rail Volume indicators
As of February 2013, per Senegal’s statistics bureau ANSD and Senegal’s TransRail, railway
transportation has seen year over year (February 2012 versus February 2013) growth in transport of
population and international merchandise to the amounts of 9.2% and 4.1% respectively. This shows an
existing demand that could increase as capacity grows and prices fall.
Air transport volume indicators
Air transport statistics show that year over year between February 2012 and February 2013; Air transport
of people and cargo increased in the interior locations (6.3%) and African locations (19.1%) but was
lower for airline routes towards Europe (-3.1%). This demonstrates a continued interest for intra-African
trade and tourism, which a continued investment in integrated transportation networks can only help grow
in the future.

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CHALLENGES & OPPORTUNITY
With its geographically ideal location; Senegal has developed well established industries such as fisheries,
Dakar to Bamako rail line, interior bus companies as well as a trucking sector to name a few. The trouble
the country has to deal with is a limited continued growth potential for the current industries given the
state of the infrastructure network.
Biggest challenge is biggest opportunity
The Dakar to Bamako line should be the main focus of an economic renaissance in Senegal and the
nucleus of a renewed integrated infrastructure focus in Senegal. The rail line could handle more cargo,
and an increase in capacity would drive more outreach to Mali and other neighboring countries such as
Ivory Coast to increase local demand of imported items from the West and international demand for the
commodities being mined in Senegal and Mali such as Iron ore. A recent feasibility study executed by
Harsco Rail Zeta Tech for the UEMOA and financed by the USTDA argues this same point.
The Senegal – Mali – Northern Ivory Coast Rail Map
Green Line is the existing Dakar to Bamako rail line.
Yellow represents the proposed new southern Mali rail link

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Increased Railway capacity and volumes would make a great business case. In the just completed
feasibility study, a pro forma statement was published on what the increase in volume for the Dakar
Bamako rail line coupled with upgrading to a standard Gauge rail distance that is able to handle double
stack train cars could do to help yield a profitable rail line.
ZETA-TECH calculated possible 5 to 8 Year initial rail freight growth as a Business Case and used
this to project financial Pro Forma results for the Dakar-Bamako Corridor.
These are the highlights of the high volume case study.
1) A Market Cargo Assessment of up to 10,000,000 tons of captured rail freight is possible.
2) This annual freight train volume was then converted into trains operated, loaded train kilometers and
empty train kilometers, fuel costs, crew costs and equipment train sets requirements.
3) Annual revenues for the Bamako to Dakar railway organization were then calculated using a best fit
“low cost rate for shippers” that would attract business away from trucks.
4) Zeta Tech used internal and proprietary models to estimate the annual costs of running trains, paying
train crews, purchasing and using train diesel fuel, paying for operating leases of wagons and
locomotives, and then maintaining the locomotives and wagons.
5) Zeta Tech included as continuing steady state maintenance the expenses of maintaining track, bridges,
culverts, signals, and similar “infrastructure” assets required to run the railway trains. This maintenance is
calculated using a steady state maintenance business model.
6) Track Rehabilitations (Modernization & Repairs) capital costs were also estimated by using Zeta Tech
data files from the field inspections in May of 2011. The revenue rates were adjusted to make sure that
these costs could also be captured in the Income Statement as a continuing financial requirement for the
enterprise.
7) Locomotive and Wagon train set capital costs were included in the Income Statement as if they were
annualized financial equipment leases (expenses).
The completed financial projections that are shown in the following page use the Zeta Tech Team
proposed practical business VOLUME and REVENUE projection for the Dakar to Bamako railway
freight corridor.

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With the country’s access to the Atlantic Ocean; Senegal can position itself with an integrated logistics
infrastructure model that is designed to allow the country to significantly up-scale economic activity.
With this capacity, Senegal would become the major product distribution center for West Africa,
amplifying import-export capacity for the region, even more so than today. There exists a latent but
realistic market demand for import cargo; mainly consisting of high-value goods in bulk, as well as fuels
and chemicals, destined for the growing consumer sector and inland industries.
These high-value commodities would provide the Dakar to Bamako rail lines with additional prospects
for becoming self-sufficient. There are expected increases in commodity export demand reported from the
Faleme iron ore deposit, being operated by ArcelorMittal Ltd; as well as the Massawa gold mine,
currently under construction by Randgold resources.
Mali – Opportunity for better trade with Senegal
Given Senegal’s close proximity to Mali; Mali’s coal, manganese, and petroleum-based commodities also
have a high demand for export through Senegal to reach the Ocean,
Discussions with port planners would be encouraged to ensure full integration of the distribution of goods
in and out of Senegal; whether it be inland toward the East or outbound to the Atlantic Ocean.
Pro-formas based upon a plan that integrates rail, and ocean freight projects can show the profitability that
can be realistically attained. Put simply, both a meter gauge rail upgrade and a standard gauge rail
upgrade can become highly profitable rail companies.
Railways, if built correctly and durably, can be significantly profitable. U.S. railway operating ratios, for
example are typically in the 70% range; which has been targeted for the West African modernization in
the recent feasibility study by UEMOA. By Railways, we mean Freight transportation. This level of
export activity will require the integration with rail, and port according to the same study.
The local African shippers will benefit from lower rail rates and service performance versus what they
receive today. For example, it cost about $5,000 to ship a car from Dakar to Bamako. An integrated
infrastructure management would lower that shipping cost via rail to around $500 resulting in a 90% cost
saving for the shippers and point of sale client.
Please see below a map of the U.S. west coast where California serves the same role that Senegal has the
best chance of serving for West Africa. Notice how California links to the rest of the nation and is where
most Asian products including cars pass through to enter the U.S. market. Railways serve a very
important and cost saving role in California’s economy.

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SOLUTIONS PROPOSED
Based on the aforementioned state of the economy and current challenges and opportunities;
Push54, LLC recommends a 4 pronged integrated infrastructure model that assures that
merchandise and the population are able to move about Senegal at the most minima cost per unit
to encourage higher volumes.
To this end, several infrastructure investments are needed however most of these investments are
in assets that are set to be productive for at least 30 years. The following compose the integration
of the transportation infrastructure:
 A new bulk cargo deep-water port able to handle very large shipments into and out of
Senegal
 A streamlined Air Cargo Distribution network for faster product and population transport
in and outside of Senegal
 A Standard Gauge Railway upgrade for the Dakar-Bamako line
 A focus on better road management including tolls and encouraging the car maintenance
industry to develop better stocks of new tires, and car part for Trucks, Buses and normal
commuter cars that are important in short distance distribution of people and
merchandize.
New Senegal
Bulk Cargo
Port Facility
Standard Gauge Railway
(including Double
Stacking): Dakar – Bamako
Trucking, Car, Buses
for Short Distance
Distribution
Airline Cargo Distribution

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LONG-TERM BENEFITS
A keen focus on the above mentioned 4 interrelated topics will yield several benefits for Senegal
for many decades to come. A space for private sector participation should also be given in such
projects; the more the better.
The following key benefits will be gained:
 Increase in jobs in Senegal
o Talent will be needed during the construction and upgrades of the current assets
o With a requirement to create an ecosystem of knowledge transfer in Senegal,
education in math, science, and engineering will be supported throughout the
country to make sure the next generation of maintenance engineers are trained
properly
o For example, it is estimated that for every 1 railroad job in the U.S.; 4 additional
jobs are created in the U.S. private sector. Such ration should be a worthy goal for
Senegal to aim for.
 Increased economic activity through volume and revenue will yield increased tax receipts
to the Senegalese government which will in turn help fund services to Senegal’s citizen
and servicing of existing debt.
 The local African shippers will benefit from lower rail rates and service performance versus what
they receive today. This will be the impetus for Senegalese manufacturing innovation. For
example, it cost about $5,000 to ship a car from Dakar to Bamako. An integrated infrastructure
management would lower that shipping cost via rail to around $500 resulting in a 90% cost
saving for the shippers and point of sale client.
 An increase in security budgets will be funded partially by some of the tax revenues from the
assets to help make them secure for the traveling population as well as for the people that live by
these structures.
 An integrated infrastructure system will allow Senegal to become THE transportation hub of
West Africa, thereby winning a lot more business from smaller neighboring countries.

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CONCLUSION
Senegal is at a critical juncture in its economic development. The right focus on the foundation of any
successful economy lies in its integrated infrastructure system adapted for bulk cargo freight
transportation. This initiative can spawn many interwoven industries and companies, and further spur
economic growth in Senegal by lowering the cost of transporting products; and eventually lowering the
price of the end product or export.
Senegal finds itself at the pinnacle of economic opportunity, only to declare its place as the Gateway to
Africa; in such a way that California exists for the United States. Senegal has a vast potential that far
exceeds the limits of its current industries, such as tourism and fisheries, and agriculture.
Push54, LLC is happy to provide more detailed information to anyone who would be interested in
learning more about this report. We look forward to producing monthly reports on specific countries and
sectors that have the highest probability of yielding the best long- term results; financially, and socially.
The time for Senegal has arrived and transportation investors throughout the world have been speaking
about the country. We look forward to hear more about what Senegal, UEMOA and other political bodies
say about the infrastructure strategy and we hope they come to the same conclusion as our analysis. An
integrated infrastructure strategy is the best bet to yield better profits that do not require donors to finance
it. We hope to see more investors engaged in such projects in the future and we will monitor and let our
members know of any future development in Senegal.

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CONTACTS
PUSH54, LLC
Justin Mahwikizi
Managing Principal
Justin.mahwikizi@push54.com
General inquiries
Push54, LLC
One South Dearborn
Suite 2100
Chicago, IL 60603
(800) 267-7167
info@push54.com
In line with Push54, LLC’s commitment to minimize its impact on the
environment, this document has been printed on paper with a high
recycled content.
This publication contains information in summary form and is therefore intended for general
guidance only. It is not intended to be a substitute for detailed research or the exercise of
professional judgment. Push54, LLC cannot accept any responsibility for loss occasioned to any
person acting or refraining from action as a result of any material in this publication. On any
specific matter, reference should be made to the appropriate advisor. The opinions of third parties
set out in this publication are not necessarily the opinions of the global Push54, LLC organization.
Moreover, they should be viewed in the context of the time they were expressed.
www.push54.com