The East African community needs nearly $29 billion to revamp and expand the region’s dilapidated rail network.
Analysts say the existing East African railways, built at the dawn of the last century, has fallen into near total neglect and need overhaul. The total length of the rail network in East Africa is 7,363km; of which 6,334 km is currently active.
The systems are metre gauge for Kenya, Uganda and Tanzania railways, — the former East African Railways (EAR) network — and cape gauge for the Tanzania and Zambia railway (Tazara).
The EAR network was built between the 1890s and 1950s, while the Tazara network was built in the 1970s.
EAC Secretary General, Dr Richard Sezibera says that the money will facilitate the feasibility study, designing and transformation of the railway system.
“The estimates for the realisation of the projects range from $5 to $29 billion depending on the gauge choice and the right of way,” Dr Sezibera said in Arusha.
He was speaking during the signing of a grant agreement with the the African Development Bank (AfDB) for the first disbursement of $428,000 out of a total package of $1.8 million.
The idea is to see railways serving Tanzania, Kenya and Uganda extended to Rwanda and Burundi by 2014 and eventually South Sudan, Ethiopia and beyond.
Dr Sezibera explained that railways currently contribute hardly 10 per cent of the required transportation capacity for heavy and bulky freight despite attempts at giving the network concessions.
“This situation is causing stress and shortened lifespan for the EAC roads with implications for maintenance and faster reconstructions,” he said.
The final report of the EA railway master plan shows that currently much of the efficiency in operating the EAR system is lost due to speed restrictions and unavailability of rolling stock.
For instance, the Northern Corridor railway (RVR system) is performing at about 75 per cent of its original design capacity.
The major under-performing links are Jinja to Kampala and Tororo to Pakwach. The rolling stock capacity is only 40 per cent of the track capacity.
The Central Corridor railway — Tanzania Railway Ltd — is performing at 51 per cent of its design capacity.
Yet another under-performing link is Kaliua to Mpanda. The Tazara line is at 41 per cent of its design capacity.
“An efficient rail service has the potential to carry greater freight traffic compared to current traffic levels,” the report reads. The document indicates that the traffic on the existing network — RVR, TRL and Tazara — has the potential to increase from the current 3.7 million tonnes to over 16 million tonnes by 2030, at an annual rate of growth of 6.7 per cent.
The growth of rail traffic from a a low forecast of 13 million tonnes to a high of 21 million tonnes in 2030 will be driven partly by projected growth in GDP of the EAC partner states and also by winning new traffic from mining developments, recapture of container and fuel traffic from trucks, and increased cement production.
“If this potential is realised, it will represent a major turnaround from historic performance of decline and atrophy,” said Jacqueline Mkindi, executive director of Tanzania Horticultural Association.
Ms Mkindi said that the EAC should embrace the public-private partnerships concept which is often seen as an appropriate form for financing big infrastructure projects.
England based Oxford University Economics guru; Prof Paul Collier says the EAC needs to consolidate customs union and common market regimes by putting up railways, ports and roads to facilitate trade.
“There is a need to put up railways, ports and roads to facilitate trade” Prof Collier said.