(DTIS) Update, Volume 1 – Main report - Enhanced Integrated ...

The Central Corridor is potentially very attractive for transit traffic. The main reasons for this arethat: (i) customs arrangements are less costly, simpler and less restrictive; (ii) the number of transitcountries is kept to a minimum; (iii) management and labor are more flexible at Dar; and (iv) directtransport costs are significantly lower for Burundi. However there are capacity constraints imposed bythe Tanzanian railway company TRL. The Kigoma and Isaka routes are potentially the lowest costtransit alternatives for Burundi and Rwanda, but they are crucially dependent on an adequate level of railservice through Tanzania.6.2 Northern CorridorThe Northern Corridor comprises the transport facilities and infrastructure linking landlockedcountries of East and Central Africa, namely Burundi, D.R. Congo, Rwanda and Uganda, to thesea port of Mombasa in Kenya. The corridor also serves Northern Tanzania, Southern Sudan andEthiopia. The main route available for Burundi traffic is the road passing through Rwanda, Uganda andKenya, over a distance of about 1,990 km between Bujumbura and Mombasa. The corridor thereforeconnects most of the East African Community, and also links the EAC to states on its periphery (Sudan,DRC and Ethiopia). Beside roads, it has lake and railway combinations that form its constituent parts. Itsstrategic role derives from the importance of the Port of Mombasa to the region.A number of road rehabilitation projects along the corridor are in various stages of development.There are also plans to improve the road network further from Uganda to South Sudan, as well as toextend the pipeline from Eldoret in Kenya, where it currently ends, to Kampala and further to Kigali.Uganda is expected to start exporting oil soon, which could lead to these extensions moving Ugandafrom the periphery of the pipeline network to its hub. Also planned is an expansion of the Port ofMombasa and an upgrade to the railway network. In fact, the approach to the railway that forms part ofthe Northern Corridor is probably the most illustrative example of a regional approach to infrastructuredevelopment and management.Uganda is connected to Kenya in general, and to Mombasa in particular, by a railway line, whichcould be accessed by Burundi. The whole network is narrow gauge (1000mm) system, similar to theTRL system on the Central Corridor. In the mid-2000s the governments of Kenya and Uganda jointlyconcessioned the system to a private operator. The objective of the concession was to improve themanagement, operational and financial performances of the two railway systems by granting exclusiverights to the concession companies for the provision of freight services in both Kenya and Uganda forthe duration of the concession term. However, the process has been difficult and has not yielded thedesired results, in terms of traffic growth of the railway system and increased investment in track androlling stock. As a result, the Northern Corridor carries only about 1.5 mpta, down from 2 mtpa in2005/6, or less than 5% of the container volumes handled through the Port of Mombasa. The servicefrom Mombasa to Nairobi takes 19 to 24 hours, while the service from Nairobi to Kampala takes 6 days.Relative rail prices are $590/TEU to Nairobi and $2,500/TEU to Kampala, reflecting the long transittimes. Bulk tariffs from Mombasa to Kampala are $120/ton by road and $80/ton by rail.Based on the above, the Northern Corridor therefore hardly serves as a low cost or more reliablealternative for Burundi traffic. The Central Corridor has a distinct comparative advantage over allmode combinations on the Northern Corridor.6.3 Southern CorridorThe Southern corridor has gained in importance in recent years. The route Mpulungu-Bujumbura onLake Tanganyika, was developed mainly for cement and sugar shipments from Southern Africa toBurundi and, to a much lesser extent, Rwanda. The route carries little or no overseas trade. The potentialof the route is reflected by looking at the trade volumes for 2011. A total of 681,790 tons was imported,including 134,046 tons from Tanzania, 92,291 tons from Zambia and 12,566 tons from South Africa.101 / 153