By KABONA ESIARA

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The Rwandan government is looking for a consultant to carry out a final detailed economic and financial viability study on the navigability of Akagera River according to the State Minister for Transport Jean de Dieu Uwihanganye.

Mr Uwihanganye told Rwanda Today that the economic and financial viability study would be a follow up on an earlier one that confirmed that Akagera River Water navigability was viable. The project would provide the country with a waterway linking it to Lake Victoria.

“The lower energy consumption and less maintenance of the water transport infrastructure makes it the cheapest mode of transport compared with rail, air and road,” said Mr Uwihanganye.

Impact of new infrastructure

He said the main purpose of the new study is to help the government determine the impact of new infrastructure developments along the central and northern corridors.

The river is Rwanda’s shortest water transport link to Lake Victoria and is where some of its imports and exports are expected to be landing. This link is important to Rwanda as the country seeks to reduce freight costs, which make its goods uncompetitive.

The water vessels on the river will be departing from Kagitumba — a planned port facility in Eastern Rwanda — before sailing on to Lake Victoria ports.

Kagitumba was proposed as the main port because of the flat areas adjacent to the banks on River Akagera. The area is also easily accessible through a major road connecting to Kigali. 

The area is also serviced by power and water lines. The concave bend in the river forms a natural deep channel, which makes the area ideal for a port. 

The study also recommends a minor vessel repair yard at Kagitumba with major vessel repairs undertaken at larger centres such as Mwanza in Tanzania or Port Bell in Uganda, which have dry docks.

Developing a water transport

Experts say the ongoing infrastructure development along the central and northern corridors has increased the prospect of developing a water transport system on River Akagera. 

“Rwanda will increase the cargo required to make the project viable as Uganda, Kenya and Tanzania want to fully exploit Lake Victoria to move goods,” a transport analyst said. 

Reports show Tanzania and Uganda committed $30 million to improve their respective port infrastructure, raising hope among experts who believe transport costs will drop when the projects are implemented.

Analyst are betting on an efficient multi-model transport system to cut transport costs in Rwanda.

Reduced transport costs

Currently, the cost of transporting a 20ft container from the port in Dar es Salaam to Kigali is currently around $4,990, which is higher than the sub-Sahaharan average of $2,504.

Transporters expect that when the containers on the central and northern corridors are diverted to vessels on Lake Victoria, the transport costs could reduce by 30 per cent.

The economic and financial viability study was done without factoring the construction of the standard gauge railway, which means its impact was not captured.

Uganda plans to develop the new Port Bell port in order to open up the southern route to Tanzania. Rwanda sees this as a boost to the freight traffic as it will be picking and dropping goods at either Bukoba, Mwanza and Musoma.

Along the northern corridor, Kenya is constructing a modern port near Kisumu Port on Lake Victoria, which will include two multi-purpose berths of 3,000 tonnes and one work boar berth. The port will be constructed when the standard railway project reaches Kisumu.

President Paul Kagame and his Tanzania President John Magufuli signed an agreement in Dar es Salaam on January 14 pledging to press ahead with the construction of a standard-gauge line. The foundation stone for the $2.5bn Kigali- Isaka line is expected to be laid later this year.