Cost comparison SGR Kenya vs SGR Tanzania

Geza Ulole

Geza Ulole

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Geza Ulole

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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thisdayes

thisdayes

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thisdayes

thisdayes

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Yani hilo eneo ambalo liko green ndo unaliita semii Arid!!! we acha ulevi!!!! Nyinyi Tanzania hamjawahi ona wala kujua ukame na uhaba wa maji ni nini. Hata hapo dodoma ambapo ni semi arid, Mto rufuji hauko mbali na dodoma, kumaanisha water services inaweza kufikisha maji kirahisi....

Hebu linganisha hizi satelite image utofautishe huko northern Kenya Vs Northern Tanzania

View attachment 1204478



View attachment 1204481


Tena mito mmejaza kibao




Sasa linganisha na mito yetu iliobaki







Hio sehemu ya Marsabit hivi ndo inakaa









Maeneo mengine huko marsabit ni full blown desert -- Chalbi









Pitia hapa uangali marsabit town ambayo iko upande wa pili wa mlima (Sehemu ilio kama osasis) inavyoendelea kujengwa tangu tuanze ugatuzi
Kuna mmoja wenu ali sema ata Tz kuna maeneo yamechapa kama huko Kenya kaskazini ndiyo nika anza kumjibu. Too bad hilo eneo lipo pembeni ya Kenya. Ila kuna kitu kina weza fanyika na kuondoa hiyo hali, mfano serikali yenu inge amua huko kujengwe ma vyuo, viwanda, maji yapelekwe, miti na mazao yanayo stahimili ukame ipandwe kwa wingie.t.c. ila i admit Tz sijaona sehemu ina ukame kama huo. Nakusahihisha kaskazini mwa Tz siyo kame ila ni katikati mwa Tz ndiyo kuna ukame e.g Dodoma.
 
Kafrican

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Kafrican

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Kuna mmoja wenu ali sema ata Tz kuna maeneo yamechapa kama huko Kenya kaskazini ndiyo nika anza kumjibu. Too bad hilo eneo lipo pembeni ya Kenya. Ila kuna kitu kina weza fanyika na kuondoa hiyo hali, mfano serikali yenu inge amua huko kujengwe ma vyuo, viwanda, maji yapelekwe, miti na mazao yanayo stahimili ukame ipandwe kwa wingie.t.c. ila i admit Tz sijaona sehemu ina ukame kama huo. Nakusahihisha kaskazini mwa Tz siyo kame ila ni katikati mwa Tz ndiyo kuna ukame e.g Dodoma.
Kupeleka bomba hadi huko itabidi litoke Centrak Kenya hadi huko ...
Jambo ambalo lilikua limefanywa na serekali ni kuchimba visima vingi vya maji huko kaskazini, lakini tangu mwaka jana inasemekana hivyo visima vyote vilikauka!

Lakini kuna eneo ambalo linanishangaza ni hapo Turkana county.... Hao ndo hupata pesa nyingi baada ya Nairobi County. Tangu 2013 hadi 2019, Turkana imepokea jumla ya zaidi ya $500m, lakini hakuna lolote limegeuka hapo Turkana! hizi psa zote sijui huyu gavana aalitumia kufanya nini badala ya kupeleka maji!

 
thisdayes

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thisdayes

thisdayes

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Kupeleka bomba hadi huko itabidi litoke Centrak Kenya hadi huko ...
Jambo ambalo lilikua limefanywa na serekali ni kuchimba visima vingi vya maji huko kaskazini, lakini tangu mwaka jana inasemekana hivyo visima vyote vilikauka!

Lakini kuna eneo ambalo linanishangaza ni hapo Turkana county.... Hao ndo hupata pesa nyingi baada ya Nairobi County. Tangu 2013 hadi 2019, Turkana imepokea jumla ya zaidi ya $500m, lakini hakuna lolote limegeuka hapo Turkana! hizi psa zote sijui huyu gavana aalitumia kufanya nini badala ya kupeleka maji!

Hizo pesa ni nyingi sana kutokuleta utofauti, hapo watu watakua wanapiga pesa. Hivyo visima sitaki kuamini walikosekana wataalamu kuliona hilo la visima kukauka. Kabla kujengwa lazima tathimini hufanyika ata Tz hilo la visima kuchimbwa na kutokutoa maji limetokea sana ila chamoto wamekipata baada ya Magu kuingia. Sasa hivi kila mradi wa maji unatoa maji na ile ambayo haikutoa watu wamerudishwa site na watendaji kuchuliwa hatua za kisheria. Huwa nawashangaa wakenya mnao msema Magu kuhusu sijui u dictator! Africa raisi hapaswi kukenua kenua, adabu hakuna. Kuna mtu aliniambia Uhuru amekulia kwenye pesa kwa hiyo pesa wanazo iba watendaji wake yeye anaona ni ndogo nakuchukulia sawa tu.
 
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nomasana

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N

nomasana

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Kupeleka bomba hadi huko itabidi litoke Centrak Kenya hadi huko ...
Jambo ambalo lilikua limefanywa na serekali ni kuchimba visima vingi vya maji huko kaskazini, lakini tangu mwaka jana inasemekana hivyo visima vyote vilikauka!

Lakini kuna eneo ambalo linanishangaza ni hapo Turkana county.... Hao ndo hupata pesa nyingi baada ya Nairobi County. Tangu 2013 hadi 2019, Turkana imepokea jumla ya zaidi ya $500m, lakini hakuna lolote limegeuka hapo Turkana! hizi psa zote sijui huyu gavana aalitumia kufanya nini badala ya kupeleka maji!

That woman had great points until she went of the rails. It is a rant not a coherent statement.

However I do understand her frustration, how the fvck has the governor and county government not planned for this kind of adversity?! Totally mind boggling

County and national officials need to be held accountable here and solution presented to prevent this kind avoidable crisis
 
E

Edward Wanjala

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E

Edward Wanjala

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Kupeleka bomba hadi huko itabidi litoke Centrak Kenya hadi huko ...
Jambo ambalo lilikua limefanywa na serekali ni kuchimba visima vingi vya maji huko kaskazini, lakini tangu mwaka jana inasemekana hivyo visima vyote vilikauka!

Lakini kuna eneo ambalo linanishangaza ni hapo Turkana county.... Hao ndo hupata pesa nyingi baada ya Nairobi County. Tangu 2013 hadi 2019, Turkana imepokea jumla ya zaidi ya $500m, lakini hakuna lolote limegeuka hapo Turkana! hizi psa zote sijui huyu gavana aalitumia kufanya nini badala ya kupeleka maji!

The media has their points skewed. Things are changing.
A number of irrigation schemes are up and the future looks bright for these fellows in Turkana
img_20190912_111135-jpg.1205202
img_20190912_111124-jpg.1205204
img_20190912_111232-jpg.1205206
img_20190912_111219-jpg.1205207
img_20190912_111148-jpg.1205211
 
Kafrican

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Kafrican

Kafrican

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The media has their points skewed. Things are changing.
A number of irrigation schemes are up and the future looks bright for these fellows in Turkana
View attachment 1205202View attachment 1205204View attachment 1205206View attachment 1205207View attachment 1205211
Kuna sehemu flani flani ndogo za Turkana ziko hivyo, iko one the other side of the desert area beyond the hills, its a geography phenomenon, I think hua inafundishiwa senior primary school. but on the other side of the hill its just bare land with only shrubs.

Like this zoomed in satellite image in Turkana, it shows one side of a hilly area having a small forest, the the other side is desert. the real triumph would be to turn that desert area into a livable place.


1568281927418-png.1205307
 
thisdayes

thisdayes

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thisdayes

thisdayes

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Kuna sehemu flani flani ndogo za Turkana ziko hivyo, iko one the other side of the desert area beyond the hills, its a geography phenomenon, I think hua inafundishiwa senior primary school. but on the other side of the hill its just bare land with only shrubs.

Like this zoomed in satellite image in Turkana, it shows one side of a hilly area having a small forest, the the other side is desert. the real triumph would be to turn that desert area into a livable place.


View attachment 1205307
Ile kauli ya "mficha maladhi kifo humu umbua" wewe umeilewa vizuri, keep it up.
 
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GERALD710

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GERALD710

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From Central Tanzania onwards, the Rift Valley drops less than 400 meters and in most of its length, one may not even be aware one is crossing the Rift Valley
Only in the Northern part around LakeNatron is there visible evidence of the Rift.
On the other hand Kenya's Rift drops by over 1000 meters from Nairobi to Naivasha and rises by over 2000 meters westward(the old Railway reached up to 3000 meters at Timboroa for example)
Can you show any railway in Tanzania that drops by 1000 meters then rises by 2000 meters ANYWHERE???
Please. Revise your Standard 5 Social Studies
 
Geza Ulole

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Geza Ulole

Geza Ulole

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From Central Tanzania onwards, the Rift Valley drops less than 400 meters and in most of its length, one may not even be aware one is crossing the Rift Valley
Only in the Northern part around LakeNatron is there visible evidence of the Rift.
On the other hand Kenya's Rift drops by over 1000 meters from Nairobi to Naivasha and rises by over 2000 meters westward(the old Railway reached up to 3000 meters at Timboroa for example)
Can you show any railway in Tanzania that drops by 1000 meters then rises by 2000 meters ANYWHERE???
Please. Revise your Standard 5 Social Studies
Tazara
 

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