Cost comparison SGR Kenya vs SGR Tanzania


Geza Ulole

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Tanzania secures $7.6 billion financing deal from Chinese lender to build new railway

President John Magufuli with China Exim Bank president Liu Liang after holding talks at Chamwino State Lodge in Dodoma this week. PHOTO | COURTESY

In Summary

  • Dar es Salaam is positioning itself as a regional hub, upgrading its port to attract more business from its neighbouring landlocked countries.
  • The EAC railways master plan incorporates the standard gauge railway’s Northern and Central Corridors, which are both commercially viable for landlocked countries in the region as they give them strategic access to the ports of Mombasa and Dar es Salaam.
  • The Northern Corridor Integration Projects championed by Rwanda, Kenya and Uganda spearheaded the establishment of a railway link from Mombasa to Kigali.
  • In June 2013, a Northern Corridor Integration Projects Heads of State Summit held in Kampala put in place mechanisms for fast-tracking the development of the SGR.


Tanzania has secured a $7.6 billion loan from China’s Export-Import Bank (Exim) for the construction of a railway line that will link it with Burundi, Rwanda and Democratic Republic of Congo.

President John Magufuli secured the concessional loan after meeting with the Exim Bank’s president Liu Liang.

President Magufuli, while announcing the funding, alluded to a preferential deal without providing details.

Oil and gas discoveries have turned Tanzania into an exploration hotspot, but the country’s transport infrastructure has suffered from decades of under investment. The country is also positioning itself as a regional hub, upgrading its port to attract more business from its regional landlocked neighbours.

According to Mr Liu, China Exim Bank will offer Tanzania technical support.

READ: China Exim sets terms for financing Uganda’s SGR

ALSO READ: Rwanda looks to Tanzania for rail transport as Uganda falters on SGR

Last year, Tanzania announced that it had awarded rail contracts to a consortium of Chinese firms led by China Railway Materials (CRM), which included the standard gauge rail project.

The Exim Bank is also financing a $1.2 billion, 532km natural gas pipeline in Tanzania.

On Wednesday last week, Finance and Planning Minister Dr Philip Mpango after a meeting with Dr Alberic Kacou, African Development Bank vice-president for human resources and corporate services, announced that Tanzania had secured a further $200 million loan from the AfDB to finance transport infrastructure projects.

“We will use some of this funds towards the construction of the SGR project to transform the country’s infrastructure,” Dr Mpango said.

In an interview with Bloomberg, Gerson Msigwa, a spokesman for Tanzania’s presidency, said the construction will start by July next year. Before then, Tanzania and Exim Bank China will be expected to have finalise technical issues on the contract and sign the financing deal for the 2,190km project.

Tanzania Transport Minister Samuel Sitta said the SGR will have a main line that will connect the port city of Dar es Salaam to Rwanda and Burundi, with additional branch lines running within the country.

“We expect to have two offshoots: One of them to Mwanza, which will open up the lakeside port city and link it with Uganda, while the second one will link to the coal, iron ore and soda ash mining areas in the south. Through this, we expect an increase in cargo on this route,” Mr Sitta said, adding that will be at an additional cost of $6.6 billion.

Already, Tanzania has signed contracts with China Railway No 2 Engineering Group to build a rail link between the southern port of Mtwara, which is rich in coal, iron ore and natural gas. The contract will see China Railway No 2 Engineering Group provide 10 per cent of the funding with the rest provided by the government.

Kenya is also constructing a $3.27 billion 609km new standard gauge railway line between Mombasa and Nairobi to boost the movement of cargo from the port.

However, queries have been raised over the economic viability of SGR, after key landlocked states indicated their intention to connect to the Indian Ocean through Tanzania.


The issue of cost is also bound to arise now that Tanzania’s SGR is four times longer than Kenya’s but only two times as expensive.

In a previous interview with The EastAfrican, Kenya Railways managing director Atanas Maina said that the cost of the Kenyan SGR was high because of the design adopted, which will see the train maintain an average speed of 80 kilometres irrespective of the terrain.

“We have built bridges, and raised the track in areas where we would have had corners to achieve the average speed we expect the wagons to travel at. This has increased the costs immensely as compared with the neighbouring Ethiopia and Tanzania SGER designs that haven’t taken this into account,” Mr Maina said.

Recently, a confidential World Bank report cast doubt on the region’s push for the SGR projects, saying they would only be viable with increases in cargo of between 20 tonnes and 55 million tonnes per year.

The report done by the Africa transport unit at the World Bank titled The Economics of Rail Gauge in the East Africa Community showed that the volumes of the forecasts undertaken for the EAC railway master plan and central line in Tanzania, are unattainable over the medium to longer term.

“Based on these assumptions, there is no economic or financial case for standard gauge in the EAC area at this time. A refurbished meter gauge network would appear to be the most appropriate option in economic and financial terms, and could easily accommodate forecast traffic up to 2030, with lower investment requirements,” the report concludes.

The World Bank team highlighted the rehabilitation of the existing railway network as the best alternative, which would allow a phased approach to the regions development, consistent with current and projected demand and the financing envelope available.

The SGR alternative, which the regional governments chose, involves the construction of a standard gauge railway on a new right of way, an option the World Bank team said required additional investment in land acquisition and structures, and new right-of-way construction.

“This alternative predicates axle loads in the order of 25 tons per axles and a maximum operating speed of up to 120 km per hour. Again, based on these assumptions, the estimated maximum carrying capacity of the current network would exceed 60 million tonnes per year. The estimated investment cost per km will be $ 3.25 million,” the report said.

From the estimates provided, the Tanzanian new railway line will cost an average of $3.4 million per kilometre.

MY TAKE

It is time now to look at the cost of the two rails as we know cost of construction is very important for prospect of any infrastructure! i welcome bright minds to contribute and not some propaganda in here!


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Bantugbro

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Bantugbro

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Where are you quoting from? Last i heard, TZ can handle max 35 tonnes per axle

Eti class 1 kutoka Chinese. Bure kabisa! Even Chinese know it, halafu wewe hapa unakuja na upotoshaji

"The new railway line will have a capacity of transporting 17 million tonnes of cargo each year, with a 35 tonne axle load capacity. It will be used by electric trains moving at a speed of 160 kilometers per hour," added the statement.


Jibu zuri...
 
Bantugbro

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Baada ya hapo ni miundombinu ya umeme ama nn
Mkuu,
Miundombinu ya Umeme wakandarasi walishaanza kazi huu ni mwezi wa tatu (3) sasa, kumbuka miundombinu ya umeme inajengwa na makandarasi aitwae ABB na sio Yapi Merkezi. Sasa vivi wako maporini wanajenga substations na transmission lines kutoka kwenye national grid kuzileta kwenye reli.
 
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tuusan

tuusan

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Mkuu,
Miundombinu ya Umeme wakandarasi walishaanza kazi huu ni mwezi wa tatu (3) sasa, kumbuka miundombinu ya umeme inajengwa na makandarasi aitwae ABB na sio Yapi Merkezi. Sasa vivi wako maporini wanajenga substations na transmission lines kutoka kwenye national grid kuzileta kwenye reli.
Anhaa, so itakuaje umeme ukikata? Kama chombo kiko kwenye motion
 
Bantugbro

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Bantugbro

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Anhaa, so itakuaje umeme ukikata? Kama chombo kiko kwenye motion
Design yake itakua na redundancy circuit in mind kiasi kwamba kutoka Dar hadi Moro kutakua na substation kama nne au zaidi na zitakua zinatap ktk different sources za national grid. Kumbuka ni vigumu sana Umeme kukosekana ktk lines zote (ya kutoka Mtera, Kidatu, Kinyerezi etc) kwa wakati mmoja. Pia nadhani ktk substations wataweka pia emergency generators as well just incase.

Btw, Umeme wenyewe unaohitajika kuendeshea trani wala sio mwingi ni approx. 25 KVA

Ahaa nimeipata:

Power for locomotives and rail facilities
The railway will be electrified. Locomotives will be powered by 25 kV MV. For this purpose 7 Traction Power Substations (TPS) and 28 Auto Transformer Substations (ATS), whose locations are not determined yet, shall be installed along the line. The necessary 220 kV High Voltage Transmission lines supplying power to these substations will be provided by TANESCO.

  • Alternative of selection of other feasible route. The EIA assessors analyzed five potential routes, as following:
    1) Tapping from nearest point of existing 132 kV TL to each of the SGR substations
    2) Tapping from nearest point of existing 220 kV Ubungo- Morogoro TL to each of the SGR substations
    3) Tapping from nearest point of existing 220 kV Kinyerezi-Morogoro TL to each of the SGR substations

    4) Dedicated 132 kV Kinyerezi – SGR- Msamvu transmission line 5) Dedicated 220 kV Kinyerezi – SGR- Msamvu transmission line
Source:
 
tuusan

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tuusan

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Design yake itakua na redundancy circuit in mind kiasi kwamba kutoka Dar hadi Moro kutakua na substation kama nne au zaidi na zitakua zinatap ktk different sources za national grid. Kumbuka ni vigumu sana Umeme kukosekana ktk lines zote (ya kutoka Mtera, Kidatu, Kinyerezi etc) kwa wakati mmoja. Pia nadhani ktk substations wataweka pia emergency generators as well just incase.

Btw, Umeme wenyewe unaohitajika kuendeshea trani wala sio mwingi ni approx. 25 KVA

Ahaa nimeipata:

Power for locomotives and rail facilities
The railway will be electrified. Locomotives will be powered by 25 kV MV. For this purpose 7 Traction Power Substations (TPS) and 28 Auto Transformer Substations (ATS), whose locations are not determined yet, shall be installed along the line. The necessary 220 kV High Voltage Transmission lines supplying power to these substations will be provided by TANESCO.

  • Alternative of selection of other feasible route. The EIA assessors analyzed five potential routes, as following:
    1) Tapping from nearest point of existing 132 kV TL to each of the SGR substations
    2) Tapping from nearest point of existing 220 kV Ubungo- Morogoro TL to each of the SGR substations
    3) Tapping from nearest point of existing 220 kV Kinyerezi-Morogoro TL to each of the SGR substations

    4) Dedicated 132 kV Kinyerezi – SGR- Msamvu transmission line 5) Dedicated 220 kV Kinyerezi – SGR- Msamvu transmission line
Source:
Nashukuru kwa jibu swadakta kabisa,it can be done

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K

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Design yake itakua na redundancy circuit in mind kiasi kwamba kutoka Dar hadi Moro kutakua na substation kama nne au zaidi na zitakua zinatap ktk different sources za national grid. Kumbuka ni vigumu sana Umeme kukosekana ktk lines zote (ya kutoka Mtera, Kidatu, Kinyerezi etc) kwa wakati mmoja. Pia nadhani ktk substations wataweka pia emergency generators as well just incase.

Btw, Umeme wenyewe unaohitajika kuendeshea trani wala sio mwingi ni approx. 25 KVA

Ahaa nimeipata:

Power for locomotives and rail facilities
The railway will be electrified. Locomotives will be powered by 25 kV MV. For this purpose 7 Traction Power Substations (TPS) and 28 Auto Transformer Substations (ATS), whose locations are not determined yet, shall be installed along the line. The necessary 220 kV High Voltage Transmission lines supplying power to these substations will be provided by TANESCO.

  • Alternative of selection of other feasible route. The EIA assessors analyzed five potential routes, as following:
    1) Tapping from nearest point of existing 132 kV TL to each of the SGR substations
    2) Tapping from nearest point of existing 220 kV Ubungo- Morogoro TL to each of the SGR substations
    3) Tapping from nearest point of existing 220 kV Kinyerezi-Morogoro TL to each of the SGR substations

    4) Dedicated 132 kV Kinyerezi – SGR- Msamvu transmission line 5) Dedicated 220 kV Kinyerezi – SGR- Msamvu transmission line
Source:
No. According to report, the only tap from kinyerezi.
 
Geza Ulole

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Geza Ulole

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No. According to report, the only tap from kinyerezi.
There is Mtera n in 3 years time Stieglers Gorge! If u know Tanzania, the location of SGR is in the proximity of numerous power sources along Morogoro Iringa axis!

BTW can u tell us whether electrification of ur SGR is still on the cards following recent developments?

 
Bantugbro

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Bantugbro

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No. According to report, the only tap from kinyerezi.
Nope!

Power will be tapped from multiple sources to allow a high degree of redundancy, if you are an Electrical Engineer or at least an Engineer in any field you should know better!

Below is a verbatim extract from the SGR report which I also attached it for your attention:

  • Alternative of selection of other feasible route. The EIA assessors analyzed five potential routes, as following:
    1) Tapping from nearest point of existing 132 kV TL to each of the SGR substations
    2) Tapping from nearest point of existing 220 kV Ubungo- Morogoro TL to each of the SGR substations
    3) Tapping from nearest point of existing 220 kV Kinyerezi-Morogoro TL to each of the SGR substations
    4) Dedicated 132 kV Kinyerezi – SGR- Msamvu transmission line
  • 5) Dedicated 220 kV Kinyerezi – SGR- Msamvu transmission line
Source:
https://yapimerkezi.com.tr/PdfDosyalari/a6dc104c-d2b1-4c96-9aa2-3b9d5ea15ed5.pdf
 
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Top Story

Kibo Energy’s Mbeya project may form part of Tanzania’s 880MW export quota
By
David McKay
-
April 29, 2019



JOHANNESBURG- and London-listed Kibo Energy would repoint its Mbeya Coal to Power Project (MCPP) to the export market supplying up to 1,000MW of electricity to countries in the East African and Southern African power pool region.

The firm said today that Tanzania’s power utility, TANESCO, had requested Kibo Energy negotiate with regional power pools in Kenya, Zambia as well as Tanzania, with which it was creating “inter-connectors”, regarding exporting electricity from MCPP. Tanzania has set a target of exporting 880MW of power from 2020 to 2040 to the East and Southern African region.

TANESCO’s development of inter-connectors “… brought into play the clear and definite short-term potential for Kibo to actively participate in the growing power export markets,” said Louis Coetzee, CEO of Kibo Energy. The company had also met with private offtake partners for its power.



Kibo Energy has been developing MCPP for more than five years. For most of that time, the project was intended to supply Tanzania which has a deficit of power supply. But the project ran into headwinds, despite having been developed to pre-feasibility stage, when the Tanzanian government asked Kibo to re-submit the project through public tender.

“It is also important to note that the initiative … is not subject to any TANESCO tender process/procedure,” the company said.

Coetzee said last month Kibo the Tanzanian government had rejected the tender without providing any reasons for the rejection. Coetzee said at the time that the outcome of the tender process had been “disappointing”. He added, however, that the project – which has potential revenues of up to $8.5bn over a 25-year life – should not be written off.

Kibo added that financing of MCCP, which was initially scoped for 300MW scaling up to 600MW depending on demand, was being arranged following the appointment of Wimmer Financial. It would structure a corporate credit line totalling $900m which would be used for Kibo’s entire African portfolio which includes coal to power projects in Botswana as well as Mozambique.

 
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