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SOME  OBSERVATIONS  ON  RAIL  AND 
ROAD  TRANSPORT  III  COMMONWEALTH 
TROPICAL  AFRICA 

John  F.  Due 

Transportation  Research  Paper  #14 

#392 


College  of  Commerce  and  Business  Administration 

University  of  Illinois  at  Urbana-Champaign 


FACULTY  WORKING  PAPERS 
College  of  Commerce  and  Business  Administration 
University  of  Illinois  at  Urb ana-Champaign 

April  6,  1977 


SOME  OBSERVATIONS  ON  RAIL  AND 
ROAD  TRANSPORT  III  COMMONWEALTH 
TROPICAL  AFRICA 

John  F.  Due 

Transportation  Research  Paper  #14 

#392 


SOME  OBSERVATIONS  ON  RAIL  AND  ROAD  TRANSPORT  IN 
COMMONWEALTH  TROPICAL  AFRICA 


The  railway  systems  of  tropical  Africa  were  products  ini- 
tially of  the  colonial  period,  with  minor  exceptions,  being  inaugurated 
around  the  turn  of  the  century  and  progressing  slowly,  primarily  built 
inward  from  the  ports,  without  connections  to  adjacent  countries. 
They  were  built  partly  for  noneconomic  reasons,  partly  to  facilitate 
export  of  minerals  and  agricultural  products.   They  were  built 
cheaply,  with  light  rails  —  some  no  more  than  35  pound  —  and 
universally  with  a  gauge  less  than  the  4'8%"  standard  of  western 
Europe  and  North  Ameiica.  Primarily  they  are  either  metre  or  the 
1.067  metre  gauge  that  began  in  the  Cape  Colony  in  South  Africa. 
Inadequate  as  the  rail  lines  were  —  they  never  constituted  a  "system" 
except  in  the  southern  third  of  the  continent  —  they  were  playing  a 
significant  role  in  the  economies  of  the  countries  at  the  time  of 
independence.  Road  systems,  while  greater  in  mileage  at  independence, 
were  largely  unsurfaced  and  unsuitable  for  heavy  traffic. 

The  purpose:  of  this  paper  is  to  survey  the  development  of  the 
lines,  with  primary  emphasis  on  post-independence  policies,  to  consider 


The  author  is  greatly  indebted  to  the  officials  of  the  Ministries 
of  Transport  and  the  railways  in  the  various  countries.  Any  views 
expressed  are  solely  those  of>  the  author  unless  otherwise  indicated. 

^e  first  railway  in  tropical  Africa  was  built  in  1885  between  Dakar 
and  St.  Louis  in  Senegal. 


the  relationships  between  rail  and  road  transport  and  economic  viability 
of  the  rail  lines,  and  to  review  the  studies  of  the  effects  of 
the  railways  upon  economic  development. 

Emphasis  is  placed  upon  the  Commonwealth  countries  of  East  and  Centra]. 
Africa  and  the  neighboring  areas,  with  brief  reference  to  Commonwealth 
West  Africa.   No  claim  is  advanced  that  the  paper  reflects  original 
research;  it  is  based  upon  existing  puMished  material,  some  not  widely 
known,  and  interviews  in  the  respective  countries  in  the  early  months 
of  1976. 

EAST  AFRICAN  RAILWAYS 

In  the  late  1950s,  the  East  African  Railways  (EAR)  was  the 
»jodel  railroad  of  tropical  Africa  and  the  d2veloping  world,  with  3300 
miles  of  line,  most  of  it  in  first  class  shape,  modern  equipment,  plans 
for  complete  dieselization,  and  a  heavy  volume  of  traffic  relative  to 
most  African  lines.  A  decaie  later,  EAR,  as  an  entr'ty,  had  disinte- 
grated; the  railroad  is  essentially  operated  in  three  portions  and  is 
in  the  process  of  bocoaing  virtually  chree  separate  roads.   It  has  lost 
substantial  traffic  and  is  desperately  she rt  of  equipment  to  handle 
the  traffic  ±c   n-s  retaicad.   Bat  it  still  remains  an  important  artery 
of  commerce  in  East  Africa  and  there  ire  hopes  for  major  improvements 
in  the  constituent  parts. 


A  summary  of  regional  studies  of  transportation  in  tropical  Africa 
prior  to  136t  is  provided  in  African  Development  Bank,  Survey  of 
African  Regional  Transport  Studies,  1968:   2  vol. 


-  3  - 


The  Origins 

EAR  was  developed  from  three  separate  and  originally  discon- 
nected systems.1  The  major  route,  the  Uganda  Railway,  was  built  by  the 
British,  in  part  for  political  reasons,  from  the  port  of  Mombasa, 
beginning  in  1896,  to  link  Uganda  with  the  outside  world.   Track 
reached  the  site  of  Nairobi  in  1899;  Kisumu,  the  lake  port,  with 
connecting  steamer  service  to  Uganda,  in  1902;  and  directly  to  Kampala 
in  1931.  Major  extensions  were  completed  to  Kasese,  in  the  west  of 
Uganda,  in  1956,  and  to  Pachwach,  on  the  Nile  in  Northern  Uganda,  in 
1964.   The  main  line,  Mombasa  to  Kampala,  is  844  miles  in  length; 
the  total  from  Mombasa  to  Kasese,  1052. 

The  second  element  was  the  Tanganyika  Railway,  started  by 
the  Germans  westward  from  Bar  es  Salaam  in  1905;  it  reached  Morogoro 
in  1907,  Tabora  in  1912,  Kigoma  in  1914  to  play  a  role  in  World  War 
I,   and  from  Tabora  to  Mwanza  in  1928.  This  is     known  as  the 
Tanganyika  (now  Tanzania)  Central  line.   The  third  element,  the  first 
to  be  started,  was  built  west  from  the  port  of  Tanga  in  1896  but  did 
not  reach  Moshi  until  1911  and  Arusha  in  1929.   This  line  was 
connected  to  the  Mombasa-Nairobi  main  line  in  1916,  and  the  Tanzania 

Central  line  in  1960. 

The  lines  were  merged  in  1945  to  become  the  East  African 
Railways,  an  element  of  the  East  African  Common  Services  Organization, 
later  the  East  African  Community,  and  thus  jointly  owned  by  the 

Hi.  Hill,  Permanent  Way  (Nairobi:  East  African  Railways  and  Harbors, 
2  vol.,  1949  and  1957),  provides  a  detailed  history  of  the  lines;  a 
semi-popular  but  excellent  volume,  relating  the  railroad  to  overall 
development,  is  that  by  Charles  Miller,  The  Lunatic  Express  (New 
York:   Ballentine,  1971) . 


Figure  1: 

Railways  in  East  Africa 


.1  ill.— ■ . '.  n~«   East  African  Railways 
«._•«»_   TA2ARA  Railway 
o    »   •  »  » •  Abandoned  lines 
50   0       100 


-  4  - 

governments  of  Kenya,  Uganda,  and  Tanzania.   The  administrative  head- 
quarters, main  repair  shops,  and  training  school  were  located  in 
Nairobi. 

Traffic 

The  total  freight  traffic  increased  steadily  up  to  a  high  in 
the  year  of  1970,  as  shown  in  Table  I. 

Table  I 

Total  Freight  Ton  Mies 
East  African  Railways,  Selected  Years 

millions  of 
year  gross  ton  miles 

1948  769 

1957  1,454 

1964  1,986 

1968  2,545 

1970  2,768   (peak  year) 

1973  2,676 

1974  2,500   (approx.) 
1575  2,250   (approx.) 

Source:   Annual  reports,  EAR,  and  information  supplied 
by  railway  sources 

Passenger  traffic  rose  through  1973  and  then  dropped  slightly. 

The  total  mileage  in  1975  was  3,663;  the  gross  ton  miles  per 
mile  of  line  in  1970  therefore  was  730,543.   The  net  figure  would  be 
slightly  less  than  half  this  figure.   This'  is  light  by  comparison  with 
the  United  States,  but  high  relative  to  the  railways  in  most  developing 
countries.   The  average  figure  is  misleading  because  of  the  great 
variation  by  line.   For  1968  (in  subsequent  years  the  relative  figures 
for  most  lines  would  not  differ  greatly)  the  figures  were  as  follows: 


Source:  Annual  Reports,  East  African  Railways, 


-  5  - 


Main  Kenya-Uganda  Line 

Mombasa-Voi 

Voi-Nairobi 

Nairobi-Nakuru 

Nakuru-Eldoret 

Nakuru-Kisumu 

Tanzania  Central  Line 

Dar  es  Salaam-Morogoro 

Morogoro-Dodoma 

Dodoma-Tabora 

Tabora-Mwanza 

Tabora-Kigoma 

Tanga  Line 

Tanga-Moshi 

Connecting  links 

Voi-Moshi 
Karogu-Ruvi 

Selected  branches 

Nanyuki 
Kasese 
Pachwach 
Mpanda 


Gross 

lies 

Ton 

miles  per  mile 
(000s) 

104 

8,750 

226 

8,471 

112 

6,652 

125 

4,358 

136 

2,631 

126 
164 
240 
236 
251 


218 


107 
129 


100 
208 
313 
207 


3,216 
2,594 
2,308 
1,215 

1,027 


937 


1,075 
502 


1,222 
410 
240 
123 


Thus  the  main  line  Mombasa-Nairobi  carries  .nearly  three  times 
the  traffic  of  the  Tanzania  Central  line;  the  Tanga  line  has  relatively 
light  traffic,  as  do  most  of  the  branches. 

The  principal  traffic  categories  were  petroleum  products 
(which  have  yielded  about  25%  of  the  total  revenue),  grain,  cement, 
sugar,  coffee,  and  cotton. 

Passenger  traffic  is  substantial  but  a  minor  source  of  total 
revenue.  As  of  1973  daily  service  was  operated  Mombasa-Kampala,  requir- 
ing about  38  hours;  daily  service  Dar  es  Salaam  to  Mwanza  (and  four 


-  6  - 

times  a  week  to  Kigoma) ,  twice  a  week  Dar  es  Salaam  to  Arusha  and  to 
Nairobi;  and  service  on  the  branches  varying  from  three  trains  a  day  to 
a  train  twice  a  week. 

Tariffs  and  Rates 

In  1969,  the  average  revenue  was  18  Kenya  cents  per  ton  mile, 
or  roughly  2h   U.S.  cents,  compared  to  a  figure  of  1.3  cents  in  the 
United  States  in  that  year,  but  low  by  comparison  with  the  light 
traffic  railways  of  most  LDCs.   But  this  figure  is  misleading,  in  view 
of  the  wide  range  of  rates  under  the  differential  tariff.   The  develop- 
ment and  nature  of  East  African  tariffs  has  been  analyzed  in  detail  by 
Arthur  Hazlewood.   The  tariff  originally  was  built  entirely  on  a  value 
of  service  basis,  with  the  deliberate  objective  of  aiding  exports  and 
placing  high  rates  on  imported  goods,  with  rates  ranging  at  one  time 
as  high  as  a  shilling  per  ton  mile.  As  early  as  the  1930s  the  develop- 
ment of  road  transport  led  to  some  squeezing  together  of  the  rates,  but 
as  of  1960  the  rates  charged  ranged  from  13.2  EA  cents  on  export 
traffic  to  36.5  EA  cents  for  top  rated  commodities,  per  ton  mile  on 
medium  distances.   The  range  in  1969  was  10.9  EA  (Kenya)  cents  to  38.5  EA  cents. 
While  the  intent  was  to  aid  exports  —  as  a  form  of  export  subsidy  — 
Hazlewood  concluded  that,  given  cost  differences  (the  relatively  low 
cost  of  handling  the  bulk  commodity  exports) ,  there  was  in  fact  no 
"subsidization"  of  most  export  crops. 

By  the  late  sixties  it  was  recognized  that  the  rate  structure 
was  obsolete  in  light  of  conditions,  and  lengthy  studies  were 


^Lail  and  Road  in  East  Africa  (Oxford:   Basil  Blackwell,  1964). 

The  monetary  units  of  the  three  countries,  which  are  kept  at  par,  are 
the  successors  to  the  East  African  currency  unit. 


-  7  - 

undertaken  to  revise  the  structure  in  line  with  costs,  to  which  little 
attention  had  been  paid  in  earlier  years.   But  progress  was  slow;  the 
governments,  particularly  that  of  Tanzania,  wanted  retention  of  low 
rates  on  fertilizer,  maize,  and  livestock,  and  Tanzania  was  unwilling 
to  approve  changes  until  it  received  concessions  on  greater  regionaliza- 
tion  of  the  system.   One  consequence  of  the  delay  was  that  rates  were 
virtually  frozen  from  1969  to  1974  despite  sharp  increases  in  costs, 
particularly  of  fuel. 

Ultimately,  basic  changes  were  agreed  upon.   First,  the  taper 
for  distance  was  revised  drastically.   The  Hazlewood  studies  showed 
that  the  taper  was  not  nearly  steep  enough  initially  (with  the  short 
distance  rates  too  low),  but  continued  much  too  far,  on  the  basis  of 
costs.   Thus  the  rates  on  short  hauls  were  raised  sharply.   Secondly, 
the  differencial  between  the  high  rates  and  low  rates  was  reduced, 
with  the  attempt  to  raise  on  commodities  with  figures  below  out  of 
pocket  cost  and  reduce  the  top  rated  goods  to  lessen  road  transport 
competition.   Finally,  lower  rates  were  provided  for  large  volume  ship- 
ments to  provide  incentive  to  ship  in  larger  amounts.   The  general 
effect  was  to  shift  substantially  from  a  value  of  service  oriented 
tariff  structure  to  one  more  closely  related  to  costs,  and  to  raise  the 
overall  level  in  view  of  higher  fuel  costs.   The  net  effect  of  the  change 
was  to  cause  some  loss  in  traffic  but  to  raise  revenues.   There  still 
remains  considerable  differential  among  commodities,  some  based  upon 
value  of  service. 


Rail  and  Road,  op.  cijC.,  Chapter  7. 


-  8  - 


After  deficits  in  early  years  of  the  constituent  parts,  East 
African  Railways  earned  a  profit  continuously  up  until  1967,  when 
small  deficits  began  to  occur.   But  basically  the  system  was  much 
more  successful  financially  than  that  of  many  developed  countries,  as 
well  as  LDCs.   But  it  was  generally  believed  that  the  high  density 
profitable    Mombasa-Nairobi-Kampala  line  subsidized  the  lighter 
traffic  Tanzania  Central  and  Tanga  lines. 

Rail  Operations 

The  system  was  operating  as  of  1960  with  a  wide  variety  of 
steam  locomotives,  from  ones  dating  back  to  the  German  days  in 
Tanganyika  to  a  group  of  Beyer-Garretts,  built  by  Manchester  in  England, 

in  the  mid-1950s,  among  the  most  powerful  steam  locomotives  in  the 

2 
world,  used  on  the  high  traffic,  lines. 

Some  diesels  were  introduced  in  the  early  1950s,  and  in  the 

3 
early  sixties  plans  were  made  for  complete  dieselization.   But  this 

was  never  completed,  for  reasons  noted  below.   As  of  1976,  for  example, 

on  the  Tanzania  lines  there  were  50  line  and  16  switching  diesels,  and 

98  steam  locomotives,  of  which  50  were  Beyer-Garretts.   Some  of  the 

others  were  as  much  as  60  years  old.  As  the  steam  locomotives  become 


In  1970,  for  example,  K  sh.  36  million;  or  about  4.3  million  dollars. 

%  ,, 
The  Beyer-Garrett  is  essentially  two  locomotives  in  one,  designed  to 

distribute  the  weight  of  the  engine  on  the  light-rail  lines  of  the 

developing  countries. 

3 

As  of  1957,  there  were  129  Beyer-Garretts,  222  standard  steam  loco- 
motives, 56  tank  locomotives  (used  for  switching)  and  46  diesels. 
(John  R.  Day,  Railroads  of  Northern  Africa.   London:   Arthur 
Barker,  1964,  p.  39.) 


_  9  - 

older,  repair  costs  increase,  and  the  advantages  of  dieselization  are 
being  lost.   East  Africa  has  no  coal;  if  it  did,  and  the  steam  locomo- 
tives were  coal  burning,  there  would  be  some  incidental  benefit  in 
retaining  them.   There  are  still,  of  course,  plans  to  dieselize  in 
both  countries;  Kenya  plans  complete  dieselization  by  1980-81. 

Passenger  equipment  is  relatively  modern  on  the  Nairobi  line, 
but  in  Tanzania,  most  of  the  coaches  date  back  to  the  mid  1920s. 

The  mainline  Mombasa -Kampala  track  remains  in  good  condition, 
the  other  Kenya  lines  in  satisfactory  condition  but  many  needing  heavier 
rail.   The  main  Tanzania  lines  are  in  fair  condition,  but  the  Central 
line  was  built  cheaply,  and  the  management  believes  that  complete 
rebuilding  is  essential .   Some  of  the  branch  lines  in  Uganda  are  reported 
to  be  virtually  inoperable. 

The  gauge  is  one  metre,  and  thus  differs  from  the  track  in 
all  of  Southern  and  Central  Africa,  which  is  1.067  metres.   The 
problem  will  be  discussed  below. 

1 
The  Deterioration 

In  the  late  sixties  a  major  development  plan  for  the  railway 
was  prepared,  involving  change  in  the  tariff  structure,  and  new  equip- 
ment and  other  features.   But  this  was  not  to  be  implemented,  except 
for  the  tariff  changes  noted;  the  system  began  to  deteriorate  in  1973 
and  the  process  culminated  in  1975  in  the  breaking  up  of  the  system 
into  two  and  to  some  extent  three  parts.   The  source  of  the  difficulty 


A  detailed  description  of  the  disintegration  of  the  East  African 
Community  is  provided  by  Arthur  Hazlewood,  Economic  Integration:   the 
East  African  Experience   (New  York:   St.  Martins,  1975). 


10  - 


was  political,  not  to  any  extent  economic  or  technical.  Relations 
among  the  three  member  states  of  the  East  African  Community  became 
increasingly  strained.   Under  military  dictatorship  Uganda  became 
increasingly  disorganized  economically  for  essentially  political 
reasons,  beginning  with  the  expulsion  of  the  Asians,  and  increasingly 
hostile  to  Kenya,  culminating  in  claims  to  a  portion  of  Kenyan 
territory  early  in  1976.  At  times  Kenya  railroad  employees  were 
reportedly  mistreated  in  Uganda;  Kenya  at  times  stopped  rail  (and  road) 
service  to  Uganda;  and,  after  Uganda  had  built  up  large  debts, 
restricted  exports  to  Uganda.   The  issues  became  very  complicated,  in 
part  a  result  of  Uganda's  volatile  behavior.   But  one  net  effect  was  a 
decline  in  both  import  and  e xport  rail  traffic  to  Uganda  and  passenger 
travel . 

The  difficulties  between  Kenya  and  Tanzania  involved  less  in 
the  way  of  personalities  than  differences  in  political-economic 
philosophy,  and  the  long  standing  belief  that  Kenya  benefitted  at 
Tanzania's  expense  as  a  result  of  the  common  market.   Socialist 
Tanzania  became  more  and  more  unhappy  with  essentially  free-enterprise 
Kenya  and  more  and  more  determined  to  make  its  economy  self  sufficient. 
There  was  now  a  belief  in  Tanzania  that  the  Tanzania  lines  were  subsi- 
dizing the  main  Nairobi  line,  partly  because  Kenya  was  favoring  road 
transport. 

There  were  several  consequences  of  these  political  differ- 
ences (which  affected  other  issues  as  well  and  culminated  in  1977  in 
the  liquidation  of  East  African  Airways). 

1.   The  countries  could  not  agree  on  the  provision  of  funds 
to  EAR  for  major  capital  improvements,  and  foreign  lenders  were  inclined 


-  11  - 

to  provide  funds  to  the  countries  rather  than  the  Community. 

2.  Tanzania  and  Uganda  failed  to  remit  to  headquarters  in 
Nairobi  funds  collected  from  shippers  in  their  countries.   Partly  this 
reflected  the  desperate  foreign  exchange  positions  in  which  both  coun- 
tries found  themselves. 

3.  Tanzania  began  to  divert  the  Moshi-Arusha  traffic  to 
Tanga  and  Dar  es  Salaam  rather  than  to  Mombasa,  the  more  logical  outlet 
and  the  dominant  one  even  as  late  as  1970  for  this  area. 

4.  Following  Tanzania's  action  in  barring  Kenya  road  trans- 
port from  hauling  goods  from  Mombasa  to  Zambia  (by  setting  uneconomically 
low  weight  limits) ,  and  belief  that  Tanzania  was  not  returning  freight 
cars,  in  1975  Kenya  cut  the  Voi-Moshi  line  at  the  border  by  removing 

two  sections  of  rail,  and  the  rail  connection  between  the  two  parts  of 
the  system  ended. 

5.  Disputes  among  the  three  countries  resulted  in  the 
ending  of  all  ship  service  on  Lake  Victoria,  thus  bringing  to  an  end 
the  operation  of  the  two  car  ferries  and  rail  service  to  Musoma,  which 
has  rail  lines  for  loading  cars  to  go  on  the  ships,  but  no  overland 
rail  connections. 

Thus  by  1975  management  control  over  the  system  came  to  an 
end.   The  Tanzania  portion  operated  on  its  own,  managed  by  regional 
personnel  in  Dar  es  Salaam,  but  cut  off  from  the  training  school  and 
the  main  repair  shops.   The  portion  is  doing  the  best  that  it  can  in 
its  own  shops  in  Morogoro  (steam)  and  Dar  es  Salaam  (diesel) .   The 
main  line  is  managed  from  the  old  headquarters  in  Nairobi,  but  the 
control  over  the  Uganda  portion  is  tenuous  at  best.   There  are  other 
problems  as  well.   There  is  a  serious  shortage  of  motive  power  and 


-  12  - 

cars,  the  major  elements  of  the  system  unable  to  handle  the  traffic 
available.   The  steam  locomotives  are  becoming  increasingly  obsolete; 
the  sight  of  a  great  Beyer-Garrett  taking  the  Moshi  passenger  train 
out  of  the  old  Dar  station  in  March  of  1976  was  impressive  —  but  not  a 
mark  of  efficiency.   Several  have,  however,  been  completely  rebuilt. 
There  is  a  serious  lack  of  parts,  aggravated  in  Tanzania  by  the 
extreme  shortage  of  foreign  exchange,  which  makes  it  difficult  for  the 
railway  to  acquire  needed  items.   Failure  to  modernize  as  planned, 
acute  shortages,  and  obsolete  equipment  constitute  an  increasingly 
serious  problem.  Morale  of  employees  declined  sharply  as  the  system 
disintegrated.   The  decline  should  not  be  exaggerated;  the  trains 
do  run,  and  substantial  volumes  of  freight  and  passengers  are  carried. 
But  the  deterioration  is  serious. 

The  system  has  suffered  as  well  from  increased  road  trans- 
port competition.   Part,  as  noted,  has  resulted  from  inadequate  capacity 
of  the  railroad,  deterioration  in  service,  and    the  value-of-service 
tariff.  Road  transport  could  easily  take  the  high  rate  merchandise 
traffic  even  though   its  costs  v?ere  higher  than  overall  rail  costs. 
Kenya  and  Tanzania,  and  particularly  the  latter,  had  followed,  in 
colonial  and  early  post-colonial  periods,  a  very  strict  road  transport 
licensing  policy  to  protect  rail  traffic.  But  a  few  years  after 
independence  this  policy  was  abandoned.  Kenya  encouraged  African 
entrepreneurship  in  the  road  transport  field,  stressed  the  building  of 
trunk  roads  competitive  with  the  railroad  lines,  and  let  weight  limits 
go  unenforced.   The  result  was  a  shift  of  much  of  the  high  rate  traffic, 
including  petroleum.,  from  rail  to  road.   Tanzania,  with  its  stress  on 
cooperatives,  encouraged  cooperative  trucking  ventures.   Uganda  had 


-  13  - 

never  employed  restrictive  licensing  of  road  transport.  Furthermore, 
in  both  Kenya  and  Tanzania,  the  road  licensing  control  was  tending  to 
break  down  with  the  development  of  more  and  more  private  carrier 
operations,  with  goods  often  handled  illegally  for  other  firms  on  the 
back  haul. 

As  noted,  these  shifts  should  not  be  exaggerated.  A  1976 
estimate  of  the  Tanzania  government  is  that  42%  of  all  traffic  moves 
by  rail,  54%  by  road,  and  3%  by  water,  although  much  of  the  country  is 
not  served  by  the  railway.   The  volume  of  traffic  on  the  Kenya  line 
remains  heavy  —  but  now  is  substantially  less  than  in  1970. 

The  Immediate  Solutions 

With  the  collapse  of  FAR  as  an  operating  entity,  the  railroads 
have  essentially,  in  fact,  become  direct  agencies  of  the  three  govern- 
ments (little  is  known  of  what  has  actually  happened  in  Uganda).   Both 
Kenya  and  Tanzania  have  provided  funds  to  cover  operating 
deficits  and  limited  funds  for  improvements.   (Tanzania  provided  sh.  37 
million  in  1976.)   This  trend  will  undoubtedly  continue.  A  World  Bank 
sponsored  study  by  a  Canadian  firm,  completed  in  1976,  concluded  that 
regionalization  of  the  system  was  essential,  given  political  realities. 
Separation  into  three  elements  does  not  necessarily  mean  great  loss  in 
operating  efficiency,  especially  if  cooperation  is  resumed  among  them, 
and  the  separation  offers  one  great  advantage.   In  the  past,  while 
roads  and  road  transport  were  regarded  as  a  national  activity,  EAR  was 
not  —  to  the  inevitable  neglect  by  each  government  of  rail  transport 
and  overstress  on  road  transport.  With  both  rail  and  road  instruments 
of  each  government,  it  should  be  much  easier  to  attain  an  appropriate 
balance. 


-  14  - 

Separation,  of  course,  will  not  solve  the  problem  of  loss  of 
traffic  arising  out  of  political  difficulties  —  the  ending  of  the 
ship  service  on  Lake  Victoria,  the.  Tanzania-Kenya  service,  the  collapse 
of  the  Uganda  economy.   It  is  unlikely  that  the  Moshi  traffic  will 
ever  flow  through  Mombasa  again  to  any  extent.   But  some  intercountry  traf- 
fic may  be  restored  in  time  if  the  three  countries  again  begin  to  cooperate. 

Road  Transport 

Road  transport  in  East  Africa  began  at  an  early  date, 
certainly  by  the  1930s,  but  it  developed  slowly,  partly  because  of 
very  inadequate  roads,  partly  because  of  general  shortage  of  capital, 
partly  because  of  highly  restrictive  road  licensing  policy  on  the  part 
of  Kenya  and  Tanganyika.   The  relatively  long  distances  likewise  deterred 
the  growth.   Only  in  Uganda,  with  its  early  development  of  good  roads, 

no  restrictive  licensing,  and  relatively  short  hauls  did  road  trans- 

2 
port  develop  to  any  extent  prior  to  independence.   Since  the  early 

'sixties,  there  has  been  a  very  rapid  increase  in  road  transport 
throughout  Ease  Africa,  both  in  non-rail  areas  and  in  competition  with 
the  railroad,  particularly  in  Kenya,     on  the  important  Mombasa- 
Nairobi  segment.   General  economic  development,     rapid  construction 
of  trunk  roads,  to  which  Kenya  gave  particular  attention  until  1975 
(surfacing  of  the  Nairobi-Mombasa  road  was  completed  in  1968)»  ending 


The  volume  by  Rolf  Uofmeier,  Transport  and  Economic  Development  in 
Tanzania  (Munich:  Weltforum  Verlag,  1973)  stresses  road  transport 
in  Tanzania. 

2 

E.  Hawkins, ,  Roads  and  Road  Transport  in  an  Underdeveloped  Country: 

A  Case  Stud3>T  of  Uganda  '.London:   Colonial  Research  Study  #32),  1962, 


-  15  - 

of  the  restrictive  road  licensing  policy,  failure  to  enforce  weight 
limits  in  Kenya,  deliberate  governmental  encouragement  of  cooperatives 
in  Tanzania  and  of  African  entrepreneurship  in  Kenya,  lack  of  adequate 
rail  capacity  and  deteriorating  rail  service  all  contributed  to  the 
rapid  growth. 

The  structure  of  the  road  transport  industry  differs  among 
the  countries.   The  dominant  firm  in  Kenya  is  KENATCO,  owned  by  the 
government  of  Kenya,  but  with  much  of  its  hauling  done  by  independent 
private  contractors.  There  are  a  number  of  inde- 

pendent firms.   In  Tanzania  there  have  been  several  attempts  to  develop 
cooperative  trucking  enterprises;  and  considerable  trucking  is  carried 
on  by  the  various  cooperatives  and  parastatals.   There  are  some  private 
firms,  but  many  of  these,  it  is  reported,  have  been  squeezed  out  in 
recent  years  by  rising  costs  and  fixed  rates.   Uganda  has  had  much 
more  of  a  private  enterprise  regime  in  trucking. 

There  has  been  little  rail-road  coordination.   East  African 
Railways  developed  an  extensive  road  transport  network  (freight  and 
bus)  only  in  the  Southern  Highlands  of  Tanzania,  particularly  in  the 
Mbeya-Iringa  area,  not  reached  by  a  rail  line,   There  has  been  no 
piggy  back  development   and  little  use  of  containers.   It  is  argued 
that,  given  the  cheapness  of  labor,  there  is  little  gain  in  containeriza- 
tion;  in  addition,  there  is  a  serious  directional  unbalance  of  traffic. 
But  the  trend  to  containerization  in  ocean  freight  is  strong,  and  there 
is  obvious  potential  gain  for  the  railway  from  increased  container  use. 

The  road  transport  sector  was  the  setting  for  one  of  the  most 
bitter  disputes  in  the  East  African  Community.   In  1974,  because  of 
the  congestion  in  the  harbor  in  Dar  es  Salaam,  Kenya  and  Zambia  arranged 


-  16  - 


for  road  transport  of  substantial  Zambia  traffic  from  Mombasa.   In 
1975  Tanzania  brought  this  traffic  to  a  halt  by  limiting  road  trans- 
port vehicles  to  19.4  tons,  without  a  trailer,  making  the  traffic 
uneconomic.   There  were  several  motives.   The  announced  reason,  which 
was  probably  at  least  a  partial  one,  was  the  damage  being  done  by  these 
trucks  to  the  Tanzania  roads.   But  a  more  significant  one  was  the 
desire  by  Tanzania  to  ensure  that  the  traffic  to  Zambia  passed  through 
Dar  es  Salaam  or  Tanga.   In  addition,  there  was  a  good  bit  of  criticism 
of  Kenya  capitalism;  while  KENATCO  had  the  contract,  much  of  the 
trucking  was  done  by  private  firms  as  subcontractors.   One  consequence 
of  the  action  was  Kenya's  action  in  severing  the  rail  link  west  of  Vol. 

Relative  Rail  and  Truck  Costs 

Good  general  data  on  relative  costs  of  rail  and  road  trans- 
port are  difficult  to  obtain.   The  most  exhaustive  study  was  that 
undertaken  by  the  Economist  Intelligence  Unit  for  the  East  African 
Community,  under  World  Bank  sponsorship,  in  1969. 1     The  basic  rail 
cost  figure  is  well  known  -  in  the  early  seventies,  about  20  K  cents 
per  ton  mile.   Revenues  are  as  low  as  11  cents  on  median  hauls  and  8 
cents  on  long  ones.   This  suggests  that  the  direct  costs  are  at  least 
this  low,  under  the  assumption  (not  necessarily  correct)  that  the 
railway  has  not  set  rates  below  out  of  pocket  cost.   An  estimate  by 
Hazlewood  for  road  transport  in  Kenya  was  K40  cents  per  ton  mile; 

c       tt   j„  TT^rs  „Drt<-a  if  t-hpr°  ^s  traffic  only  oneway, 
O'Connor  estimates,  for  Uganda,  hbO  cents  it  enere 


1Kast_  African  Transport  Study  (London:  1969) 
2Rail  and  Road,  op.  cit.,  p.  66, 


-  17  - 

30  cents  if  there  is  traffic  both  ways.   Some  estimates,  however, 
indicated  costs  for  road  transport  as  low  as  8  cents  —  a  figure  not 
generally  believed  to  be  accurate,   While  these  figures  are  somewhat 
obsolete  in  an  absolute  sense,  the  relationships  between  road  and  rail 
have  probably  not  changed  much. 

Other  studies  suggest  similar  figures.   East  African  Railways 
road  services  in  Tanzania  charge  from  30  to  35  Tanzanian  cents  a  ton 
mile  for  larger  shipments.   Costs  of  moving  rice  from  Mbeya  to  Dar  es 
Salaam  were  shown  by  Hofmeier  to  be  25  cents  a  ton  mile,''  of  shipments 
from  Dar  to  Arusha,  28  cents,  whereas  rail  charges  were  as  low  as  7.6 
cents  on  long  haul  bulk  movements.   Other  figures  for  Tanzania  show 
read  costs  as  low  as  15  cents  per  ton  mile  with  a  full  load  in  both 
directions,  28  cents  with  an  empty  return. 

The  net  conclusions  of  these  and  other  studies  are  that 
average  rail  costs  are  lower  than  truck  costs,  but  the  differences  are 
not  tremendous.   The  great  difference  is  between  road  transport  costs 
and  long  distance  bulk  rail  commodity  rates,  some  of  which,  of  course, 
may  be  below  marginal  cost.   The  very  rapid  growth  in  road  transport  in 
East  Africa,  therefore  can  be  explained  only  partly  in  terms  of  lower 
rates;  the  other  major  factors  have  been  inadequate  rail  capacity  to 
handle  the  traffic  (this  was  particularly  important  in  shifting 
petroleum  from  rail  to  road  between  Mombasa  and  Nairobi),  deteriorating  rail 
service  with  delivery  time  cf  from  two  to  three  weeks;  the  greater 
flexibility  of  trucking,  the  emphasis  of  the  Kenya  government  upon  the 


Railways  and  Development,  op_.  cit. ,  p.  128, 


'Transport,  op .  cit. ,  pp.  193,  196. 


-  18  - 

need  for  African  entrepreneurship  in  the  road  transport  industry',  and 
the  advantages  of  private  carrier  operation  to  many  business  firms. 

The  Kenya  line  is  faced  with  drastic  loss  in  traffic  —  as 
much  as  20%  — ■  with  the  completion  of  the  pipe  line  from  Mombasa  to 
Nairobi  by  the  end  of  1977.   Originally  all  of  this  traffic  moved  by 
rail;  in  recent  years  a  substantial  amount  shifted  to  road,  partly 
because  of  shortage  of  rail  tank  cars,  the  available  supply  being 
reserved  for  the  longer  haul  to  Uganda.   The  pipe  line  will  bring  an 
end  to  all  rail,  as  well  as  truck,  movement;  the  cost  reduction  is 
estimated  to  be  between  64  and  74  percent  of  present  rail  and  road 
costs.   The  line  will  carry  initially  1.44  million  tons  of  petroleum 
a  year,  ultimately  5.12  million  tons.   There  has  been  some  controversy 
in  Kenya  over  this  project,  but  the  general  attitude  of  the  government 
has  been  that  the  pipeline  will  free  rail  capacity  for  other  purposes 
and  the  cost  reduction  will  more  than  offset  any  loss  to  the  railway. 
But  the  immediate  effect  is  certain  to  be  adverse  to  EAR. 

Some  Policy  Issues 

Some  major  issues  relating  to  transport  remain  to  be  resolved 
in  East  Africa,  and  the  future  is  by  no  means  clear,  partly  because  it 
depends  to  such  a  great   extent  on  political  relationships  among  the 
three  countries. 

1.   Future  rail  vs.  road  relationships.   This  issue  is  common 
to  all  African  countries   and  will  be  analyzed  in  the  overall  summary 
section.   The  particular  problem  of  the  past  in  East  Africa  was  that 
there  was  no  coordination  of  road  investment  and  road  hauling  control 
policy,  whereas  the  railroads  were  unified.   If  there  are  to  be  three 


-  19  - 

separate  railroads  in  the  future,  this  problem  will  be  avoided,  but 
overall  coordination  of  transport  in  East  Africa  will  be  much  more 
difficult. 

2.  Possible  extension  of  rail  lines.   In  the  last  decade, 
Tanzania  has  been  much  more  enthusiastic  about  construction  of  new 
rail  lines  than  Kenya  (most  of  the  new  mileage  since  1960,  other  than 
the  TAZARA,  has  actually  been  in  Uganda) .   But  currently  the  one  project 
that  is  under  serious  consideration  (bids  have  been  requested)  is  for 

a  line  in  the  Kerio  Valley  in  Kenya,  extending  from  Kampi  ya  Moto  to 
Tenges  (10  miles),  Kimwarer,  and  Koloa,  a  total  of  62  miles,  designed 
to  serve  fluorspar  and  other  mineral  deposits.  A  cut  off  from  the  main 
Kenya  line  to  the  Arusha  line  to  shorten  the  distance  to  Nairobi  has 
long  been  considered  but  is  unlikely  to  be  built,  given  present  condi- 
tions. A  much  more  serious  project  is  one  from  the  Moshi  line  to 
Musoma,  on  Lake  Victoria,  to  enable  the  traffic  from  Musoma  to  move 
directly  by  rail  through  Tanzania,  and  give  Uganda  a  route  to  the  sea 
independent  of  Kenya  (no  great  advantage  at  the  moment,  since  relations 
between  Uganda  and  Tanzania  have  been  worse  than  those  between  Uganda 
and  Kenya) . 

3.  Improvement  of  the  rail  lines.  While  the  main  Kenya  line 
remains  in  good  physical  shape,  the  branches  are  in  need  of  heavier 
rail,  and  the  entire  Tanzania  Central  line  requires  substantial  rebuild- 
ing, it  is  reported  by  the  Tanzanian  authorities. 

4.  The  problem  of  the  light  traffic  branch  lines.   There  are 
a  number  of  lines  with  relatively  light  traffic  —  under  300,000  net 
ton  miles  per  mile  per  year.   The  Mpanda  branch  in  Tanzania  is  the 
worst,  with  less  than  50,000  net  ton  miles  per  mile;  built  to  serve 


There  has  also  been  discussion  of  a  line  to  connect  Kenya  with  the 
Sudan  railways. 


-  20  - 

lead  mines  that  have  ceased  operating,  it  has  been  kept  in  service  by 
direct  subsidy  of  the  Tanzania  government  because  of  limited  road 
facilities  in  the  area .   But  the  long  Kasese  and  Packwach  branches  in 
Uganda  have  traffic  under  300,000  net  ton  miles.   Studies  elsewhere 
indicate  that  such  services  are  particularly  likely  to  be  sources  of 
deficits  —  yet  they  may  be  important  for  regional  development  purposes. 

5.   Gauge.  As  discussed  in  the  following  section  EAR  and 
TAZARA  gauges  are  different  and  no  interchange  of  traffic  is  possible. 

The  Effects  of  the  Railways  upon  Economic  Development  in  East  Africa 

Two  studies  in  the  last  decade  have  considered  the  question 
of  the  effects  that  the  building  of  railway  lines  have  had  in  East 

Africa,  that  by  A.  M.  O'Connor  on  Uganda,   and  of  Rolf  Hofmeier  in 

2 
Tanzania.   The  studies  suggest  that  the  building  of  the  Kenya-Uganda 

line  from  Mombasa  to  Kisumu,  with  the  steamer  connection  to  Uganda, 

the  Tanga-Moshi,  and  the  Tanzania  Central  lines  all  significantly  aided 

economic  development,  by  allowing  the  development  of  export-oriented 

agriculture  and  other  activities  and  importation  of  manufactured  goods. 

In  doing  so  they  perpetuated  the  export-of-materials,  import-of- 

manufactured-goods  approach  to  development,  from  which  a  break  has  been 

made  only  in  recent  years.  The  whole  pattern  of  economic  activity  of 

Tanzania  centered  around  the  two  rail  lines,"  whereas  the  Southern 

Highlands,  with  many  economic  advantages,  lagged  badly.   The 

Kenya-Uganda  railway  was  almost  solely  responsible  for  the  existence 


Railways  and  Development,  op.  cit. 

2 

Transport  and  Economic  Development,  op.  cit. 


-  21  - 

and  dominance  of  Nairobi. 

But  there  is  strong  evidence  that  later  rail  building  had 
much  less  economic  effect,  even  the  rail  line  from  Kisumu  to  Kampala. 
Economic  activity  in  Uganda  never  has  clustered  around  the  railway  as 
in  many  other  African  countries.   The  Kasese  line  in  Uganda,  while 
allowing  the  development  of  copper  mining,  contributed  little  to 
overall  economic  development  of  western  Uganda,  given  the  availability 
of  road  transport.   The  Mpanda  line  in  Tanzania  did  little  to  create 
activity,  and  the  Manyoni-Kinyangari  line  built  in  the  'thirties  in 
central  Tanzania  into  the  Singidi  region  had  so  little  effect  that  it 
was  abandoned  in  1947.     The  extreme  case  was  the  line  from  Mtwara 
to  Nachingwea  and  Masasi  in  southern  Tanzania.   Built  as  an  element 
in  the  groundnut  scheme,  it  had  so  little  effect  on  development  that  it 
was  abandoned  in  1962,  eight  years  after  building  (and  4  years  in  the 
case  of  Masasi  branch),  following  the  end  of  the  scheme.  Abandonment 
may  have  been  premature  but  certainly  there  was  no  evidence  of  stimulus 
to  economic  activity. 

ZAMBIA  AND  OUTLETS  TO  THE  SEA 

The  development  of  few  if  any  African  countries  has  been 
influenced  as  much  by  the  railroad  as  Zambia.  Virtually  all  commercial 
activity  has  developed  in  the  narrow  belt  up  through  the  center  of  the 
country  known  as  "line  of  rail".   Furthermore,  no  other  country  has  had 
its  pattern  of  rail  traffic  so  d,isruPted  in  recent  years  as  Zambia,  and 
it  has  shared  with  Tanzania  the  most  important  rail  construction  project 
in  the  developing  world  in  the  last  several  decades . 


. 


' 


99 


Development  of  Railways  to  Zambia 

Unlike  other  tropical  African  railways,  the  line  reaching 
Zambia  was  not  built  directly  in  from  the  nearest  port,  but  came  north 
out  of  southern  Africa.   In  the  early  1890s,  the  South  African  railway 
system  reached  Maf eking  (famous  for  the  great  siege  in  the  Boer  War) 
and  the  Rhodes  interests  (British  South  Africa  Co.)  pushed  a  line 
across  the  deserts  of  Bechuanaland  (now  Botswana)  to  reach  Bulawayo  in  1897. 
Already  there  were  European  settlers  in  Southern  Rhodesia.   The  line,  later 
called  Rhodesia  Railways  (RR) »  was  designed  in  part  to  provide  access  to  the 
settlers  and  the  farm  land,  but  Rhodes  was  also  lured  by  the  known  but 
as  yet  undeveloped  mineral  resources  in  what  are  now  Zambia  and  Zaire, 
and  by  his  dream  of  a  Cape  to  Cairo  railway.  The  line  reached  the  coal 
mines  of  Wankie  in  1903,  crossed  the  Zambesi  into  Northern  Rhodesia  at  one 
of  the  few  feasible  spots,  just  below  Victoria  Falls  in  1903,  and  reached 
the  lead-zinc  mining  area  of  Broken  Hill  (now  Kabwe)   in  1906.  A 
siding  about  half  way  up  through  Northern  Rhodesia  was  labeled  Lusaka;  three 
decades  later  (1935)  the  site  was  designated  to  become  the  capital  of  the 
colony.  A  line  also  was  extended  north  from  Bulawayo  to  Salisbury,  (1902)  and 
in  1899  another  BSA  railroad  had  reached  Salisbury  from  the  port  of 
Beira  in  Mozambique.   In  1909  in  an  effort  to  obtain  an  outlet  for 
copper  mines  they  were  developing  in  Katanga  in  the  southern  Congo, 
British  interests  headed  by  Sir  Robert  Williams  built  south  from  the 
Congo  to  join  Rhodesia  Railways  at  Broken  Hill.   This  line,  as  far  as 
the  Congo  border,  was  taken  over  by  RR  in  1928.  Rhodesia  Railways  was 
an  element  in  the  great  BSA  complex  in  Central  Africa;  BSA  ruled 
Northern  Rhodesia  politically  as  well  as  economically  until  1924,  when 
the  area  became  a  crown  colony. 


A  survey  of  the  development  of  the  rail  lines  to  Zambia  is  provided  In 
the  chapter  by  R.  M.  Bostock,  "The  Transport  Sector",  in  C.  Elliott,  ed., 
.Constraints  on  the  Economic  Development  of  Zambia  (Nairobi,  Oxford  Univ. 

Prpss.  10711   rm   T77-Qfi 


Tanganyika  Concessions,  Ltd.,  the  Williams  enterprise,   also 
built  the  Benguela  Railway,  extending  from  the  port  of  Lobito  in 
Angola  to  the  Congo  border,  reached  in  1931,  connecting  with  the 
Congo  lines,  thus  providing  the  Katanga  mines  and  those  of  , 

Zambia  with  another  outlet  to  the  sea.   Likewise  in  1928,  Belgian 
interests  completed  a  line  from  the  Katanga  area  to  Port  Francqui  (now 
Ilebo)  on  the  Kasai  River,  from  which  water  transport  was  available.  In  1947 
Rhodesia  Railways  was  nationalized;  after  1949,  under  a  statutory  authority 
of  the  countries  involved,  and  following  the  formation  of  the  Federation 
of  Rhodesia  and  Nyasaland  in  1954,  the  system  was  transferred  to  the 
Federation.  The  center  of  operations  and  the  main  shops  were  in 
Bulawayo.  Another  route  to  the  sea  from  the  Bulawayo-Salisbury  line 
to  Lourenco  Marques  in  Mozambique  —  providing  a  less  congested  route 
for  Zambia  traffic  than  the  Beira  line  —  was  completed  in  1955. 

Thus  at  the'  time  of  independence  of  Zambia  in  1964, 
virtually  all  import  traffic  (including  petroJeum)  and  export  traffic 
to  Zambia  was  handled  by  Rhodesia  Railways;   few  countries  in  the 
world  were  so  completely  dependent  en  rail  transport  for  their  access 
to  the  outside  world.  Most  Zambia  traffic  moved  via  Beira  and  Lourenco 
Marques;  there  was  likewise  substantial  through  rail  traffic  between 
Zambia  and  South  Africa,  traditionally  the  supplier  of  processed  foods 
and  many  other  commodities  for  the  country .   There  was  only  a  limited 


Even  the  heaaquarters  of  Zambia  Customs  and  "xcise  was  (and  still  is) 
located  in  Livingstone. 


Lake 
.Victoria 


\ 


ZAIRE  \  WKigoma 

^  ^      Kaleraie  T  „,  . 

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*  -  * 


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to   South  Africa 


to  Maputo 


Fig.  2 

Railways  of  Central  Africa 


0  50  100    250 

t  ,.  8  —I t i t 

Miles 


-  24  - 

amount  of  road  transport,  primarily  with  Rhodesia,   Initially  after 
independence  Rhodesia  Railways  was  owned  and  controlled  jointly  by 

Zambia  and  Southern  Rhodesia,  still  a  Crown  colony.   The  Lobito  route 

2  - 
via  the  Benguela  handled  little  Zambia  traffic.    Zaire  copper  moved 

partly  via  the  Benguela,  partly  via  the  Port  Francqui  route,  under 

pressure  from  the  Zaire  government.  Most  of  the  Benguela* s  traffic 

came  from  within  Angola. 

Disruption  of  Traffic  Patterns 

The  twelve  year  period  from  1965  through  1976,  and  particularly 
1973-1976  saw  several  major  disruptions  in  access  routes  to  the  sea 
and  in  traffic  patterns  within  the  country.  These  disruptions  resulted 
entirely  from  political  events,  which  can  be  noted  briefly: 

1.   In  1965  Rhodesia  declared  itself  independent  from  Great 
Britain.   UDI  —  Unilateral  Declaration  of  Independence,  as  it  was 
called  —  under  a  white  regime  was  viewed  with  great  disfavor  in  Zambia. 
Zambia  forced  the  dissolution  of  Rhodesia  Railways  as  a  joint  venture 
as  of  July  1,  1967,  and  took  over  operation  of  the  portion  north  of 
the  Victoria  Falls  bridge,  but  with  loss  of  most  of  the  employees  (the 

great  majority  were  white  and  most  preferred  to  stay  in  Rhodesia),  and 

3 

wfth  an  inadequate  share  of  rolling  stock  and  engines.   For  a  time 


The  rail  distance  from  Lusaka  to  Salisbury  was  almost  three  times  the 
road  distance.  A  direct  rail  link,  crossing  the  Zambesi  at  Chirundu, 
was  long  planned. 

2 

This  was  a  product  of  agreements  between  the  railways  and  the  copper 

companies.   In  1936  the  copper  companies  agreed  to  ship  entirely  via 
RR  in  exchange  for  low  rates.   In  1957  under  pressure  of  the  companies, 
RR  agreed  to  let  a  specified  amount  of  copper  move  out  via  Lobito,  but 
then  quoted  such  a  low  rate  on  this  segment  that  it  also  moved  via  Rhodesia. 

3 
The  first  year  of  Zambia  Railways  operation  was  one  of  chaos,  derail- 
ments, and  inability  to  keep  coal  moving  to  the  mining  complex.   Toronto 
Globe  and  Mail,  October  11,  1968,  p.  2. 


-  25  - 

all  engines  had  to  be  sent  to  Bulawayo  for  repair,  until  Zambia 
completed  its  own  repair  shops  at  Kabwe  (formerly  Broken  Hill) .   Even 
the  billing  was  done  from  Bulawayo  for  a  time.   Zambia  was  committed  to  use 
RR  for  all  rail  traffic  or  pay  a  penalty  on  any  traffic  diverted,  under 
the  terms  of  the  breakup. 

Secondly,  the  government  began  to  divert  a  substantial  amount 
of  traffic  via  truck  transport  to  Dar  es  Salaam,  under  great  difficul- 
ties because  of  the  bad  condition  of  the  Great  North  Road,  and  via  the 
Benguela.  After  Rhodesia  cut  off  petroleum  supplies,  the  country  was 
drastically  short  of  petroleum  products,  which  had  to  be  trucked  from 
Dar  es  Salaam  until  a  pipe  line  was  completed  from  Dar  es  Salaam  to 
Ndola  in  1968.  Despite  these  changes,  however,  a  substantial  portion 
of  the  copper  exports  and  imports  of  necessity  still  came  via  Rhodesia 
Railways  (Table  2) .  There  were  endless  feuds  with  Rhodesia  over  car 
supply  —  in  general  Rhodesia  would  permit  only  the  same  number  of  cars 
to  go  into  Zambia  as  returned  from  Zambia. 

2.  In  1973,  Zambia  closed  the  border  completely  with 
Rhodesia,  following  temporary  closing  by  Rhodesia,  as  a  result  of 
political  disputes.   This  resulted  in  immediate  and  drastic  changes  in 
traffic  patterns,  as  two  thirds  of  the  imports  and  over  half  the 
exports  were  still  moving  via  Rhodesia.  Most  of  the  exports  and  a 
large  portion  of  the  imports  formerly  going- via  Rhodesia  were  shifted 

to  the  Benguela  route,  causing  serious  congestion  at  the  port  of  Lobito.  This 
pattern  continued  through  the  first  half  of  1975.  Road  transport  to 
Dar  es  Salaam,  Malawi,  and  Mombasa  in  Kenya  rose  sharply  in  1973. 

3.  In  1975,  the  Benguela  route  was  disrupted  and  finally 
closed  in  August  by  hostilities  in  Angola. 


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-  27  - 

At  the  same  time,  in  October  of  1975,  the  new  TAZARA  rail  was 
opened  for  limited  service,  as  explained  in  detail  below.  But  initially 
TAZARA  had  only  limited  carrying  capacity,  and  Zambia  was  forced  to 
increase  reliance  on  the  Dar  es  Salaam  and  Malawi  truck  routes  substan- 
tially —  in  a  period  when  equipment  had  been  declining  in  anticipation 
of  opening  of  TAZARA..  To  complicate  matters  still  further,  late  in 
1974  Tanzania  effectively  halted  road  transport  from  Mombasa  —  the 
most  efficient  port  in  the  entire  region. 

The  rerouting  following  the  border  closing  in  1973  had  increased 
transport  costs  by  an  estimated  Kwacha  20  million  (about  $30  million 
U.S.  dollars)  in  that  year,  and  K  30  million  in  1975  —  adding  to 
inflationary  pressures  in  Zambia. 

Zambia  Railways 

The  internal  rail  system  of  the  country  is  now  entirely 
operated  by  Zaabia  Railways  (ZR) ,  wholly  owned  by  the  government,  but 
operated  as  a  saperate  gcvernn^it  corporation,  in  the  same  "fashion  as 
Zambia  Airways.  Its  own  line  is  650  mil?s  in  length,  and  it  alco  operates 
abcut  75  miles  of  the  fcri^r  Zambesi  Sawnf 11?*  Railway,  as  an  sgent  for 
the  government.  The  main  Z5  line  extends  in  a  general  north -south 
direction  from  the  connection  on  the  Victoria  Falls  bridge  with  Rhodesia 
Railways  via  Lusaka  to  the  Copper  Belt,  specifically,  via  Ndola  and 
Kitwe  and  Chililabomwe  to  Konkola,  on  the  Zaire  border,  with  branches, 


In  the  period  1973  until  May  of  1976  K  =  U.S.  $1.55;  after  devaluation 
that  month  K  =  U.S.  $1.25.   For  some  years  piior  to  1973  K  -  U.S.  $1.40. 


■■.-.-.       .• 


-  . 


-  28  - 

all  In  the  Copper  Belt,  to  Mufilira,  to  Luanshya,  and  from  Ndola  to  Sakaraia  to 
connect  with  the  Zaire  lines.   There  are  no  other  branches  except  a  short 
one  serving  the  Maamba  coal  mines.  The  former  Zambezi  Sawmills  Railway, 
built  to  serve  the  timber  industry  in  the  Southern  province,  extends 
northwestward  from  Livingstone  to  Mulobezi.  The  line  once  extended 
another  50  miles  to  Kataba  for  the  handling  of  logs,  but  this  portion 
is  not  now  operated  (though  shown  on  most  maps). 

ZR  was  built  to  the  1.067  metre  gauge  —  known  as  Cape  Gauge  — 
used  by  all  main  lines  from  Zambia  and  Zaire  south.  Track  is  in  good 
condition;  the  sawmills  line,  which  had  deteriorated,  has  been  rebuilt 
in  the  last  two  years.  ZR  is  entirely  dieselized,  with  80  diesels;  10 
were  received  in  1975  and  8  more  are  on  order.  These  are  U.S.  General 
Electric  built  engines,  with  which  the  system  is  well  satisfied.  A 
number  of  the  Beyer-Garretts  inherited  from  Rhodesia  Railways  are  still 
in  the  yards  in  Livingstone  awaiting  ultimate  scrapping.  A  number  of 
new  freight  cars  (wagons)  have  been  acquired,  typically  with  40  ton  capac- 
ity, and  another  1000  are  on  order.  Cars  are  freely  interchanged  —  in 
normal  times  —  with  the  Benguela  and  Zaire,  Rhodesian,  South  African, 
and  Mozambique  lines. 

Gross  revenue  of  the  railway  in  1975  was  K  27.9  million;  in 
1976  an  estimated  K  35  million.  Despite  the  complete  disruption  of 
traffic  patterns  in  recent  years  (when  copper  moves  out  via  the 
Benguela,  ZR  receives  little  revenue,  and  not  much  more  with  TAZARA) , 
the  great  increase  in  road  transport  on  the  import-export  routes,  the 
petroleum  pipe  line,  and  the  shift  to  petroleum  from  coal  by  the 
mining  complex  for  many  purposes,  the  road  has  avoided  large  deficits 
(the  figure  in  1975  was  only  K  600,000)  and  hopes  to  be  covering  all 


n  *  3  ■■-  --.  r 


■    ■  ■ 


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..,.. 


•*■( 


-  29  - 

costs  in  the  immediate  future. 

Since  independence  the  road  has  been  assisted  in  many  ways  by 
Canadian  National  Railways.  A  formal  management  contract  expired  in 
November  1975,  with  management  entirely  Zambianized,  but  CNR  still 
provides  technical  assistance.  Almost  the  entire  staff  of  employees 
has  been  new  since  1967.  Headquarters  and  main  shops  are  in  Kabwe. 

The  traffic  patterns,  as  noted,  have  shifted  dramatically. 
Prior  to  1967  virtually  all  imports  came  in  via  Livingstone  and  were 
taken  north  almost  the  entire  distance  of  the  line  to  the  Copper  Belt 
and  over  half  of  the  entire  line  to  Lusaka.  This  traffic  included  very 
heavy  volumes  of  petroleum  products  coming  from  Beira,  coal  from  the 
Wankie  mines  in  Rhodesia,  and  products  from  South  Africa,  including       t 
fertilizer,  coke,  farm  and  mining  equipment,  processed  foods,  etc.  The 
copper  and  other  exports  (copper  constitutes  about  95%  of  the  total) 
came  down  the  entire  distance  from  the  Copper  Belt  to  the  Victoria 
Bridge.  Currently  nothing  for  Zambia  comes  in  at  Victoria  Falls, 
although  in  the  last  two  years  the  road  has  handled  substantial  transit 
traffic  for  Zaire  from  Rhodesia  (copper  going  out,  particularly  after 
the  closing  of  the  Benguela ,  coal  and  maize  coming  in).   By  agreement 
with  Zaire,  Zambia  handles  this  traffic,  although  it  will  not  handle 
any  Zambia  traffic  from  Rhodesia. 

The  principal  ZR  traffic  items  in  recent  years  have  been 
copper,  hauled  the  relatively  short  distance  to  the  Zaire  border  and 
now  to  the  junction  with  TAZARA  at  Kapiri  Mposhi;  some  lead  and  zinc 
from  Kabwe  to  Kapiri;  substantial  movements  of  maize,  mostly  from 
southern  Zambia  points  to  the  Copper  Belt  and  for  export  to  Zaire  and  Tanza- 
nia; and  coal,  from  the  Maamba  mines  to  the  Copper  Belt.   The  government  has 


-  30  - 

been  moving  all  petroleum  products  within  the  country  by  road,  but  some 
of  this  is  likely  to  be  returned  to  rail.   In  1975,  59  percent  of  ZR 
traffic  was  domestic,  the  rest,  export  traffic. 

Traffic  volume  was  1,323  million  ton  miles  in  1973,  1,105 
million  in  1974,  and  about  1,300  million  in  1975,  or  2.2  million  ton 
miles  per  mile  of  line.  The  revenue  is  about  2.6  ngwee  per  ton  kilo- 
meter, compared  to  an  estimated  average  of  5  to  6  ngwee  for  heavy 
volume  trucking.   The  2.6  figure  is  roughly  equal  to  4.6  U.S.  cents 
per  ton  mile  at  current  exchange  rates.   The  traffic  volume  is  not  as 
heavy  as  on  the  main  Mombasa-Nairobi  line  of  EAR,  nor  the  expected 
volume  on  TAZARA  when  it  is  in  full  scale  operation;  it  is  somewhat 
comparable  to  that  of  the  Tanzania  Central  line  and  adequate  to  allow 
reasonably  low  cost. 

The  tariff  is  basically  a  class  tariff  comparable  to  that  of 
East  African  Railways  in  many  respects, '  with  14  classes,  classification 
based  on  cost,  value  of  service,  and  essentiality  considerations,  plus 
separate  rates  for  tank  cars  and  mineral  products  (the  lowest  figures) 
and  special  rates  on  copper.  There  has  been  less  concern  thus  far 
about  the  loss  of  high  rate  commodities  to  road  transport  than  in  some 
countries  because  transport  is  so  completely  controlled  by  the  govern- 
ment, given  the  scarcity  of  facilities. 

For  many  years,  daily  passenger  service  was  operated 
Lusaka -Livings tone,  and  overnight  3  times  a  week  Lusaka  to  the  Copper 
Belt.   The  initial  equipment  after  independence  consisted  of  ancient 
wooden  open  vestibule  cars  of  Rhodesia  Railways.   These  were  replaced 
by  diesel  motor  trains,  and  in  1975  by  new  equipment  manufactured  in 


■  . 


■•  ■ 


-  31  - 

Japan.   Since  that  time  two  trains  a  day  are  operated  each  day,  the 
relatively  fast  Kafue  and  the  slower  Luangwa.   The  former  provides 
three  classes  —  sleeper,  standard,  and  economy,  the  latter  standard 
and  economy.   In  1976,  the  sleeper  fare  Livingstone-Lusaka  was  K  16.60; 
standard  K  8.30;  economy  K  5.50.   These  are  roughly  6,  4,  and  2  U.S. 
cents  a  mile  fares.   About  1,200,000  passengers  are  carried  per  year. 

Internal  Road  Transport 

Road  transport  in  Zambia  is  dominated  by  Contract  Haulage, 
formerly  Central  African  Road  Services,  a  parastatal  organization.   CH 
maintains  a  fleet  of  its  own  trucks  and  contracts  with  private  trucking 
firms.   It  also  handles  the  Malawi  export- import  road  service  as  a  part  of 
the  Dar  es  Salaam  traffic  as  a  subcontractor.  Rates  range  (1974)  from 
1.2  to  4.6  ngwee.per  ton  kilometer.   Both  CH  and  private  firms  contract 
with  NAMBORD,  which  controls  all  farm  product  marketing,  for  transport 
of  farm  products,  on  a  set  rate  schedule,  which  in  1974  was  as  follows: 
fertilizer  and  maize:   ng  per  t/KM  7.50  up  to  80  km,  6.75,  81-160  km; 
6  over  160;  cotton,  ng  per  t/m  9.   NAMBORD' s  policy  is  to  use  rail 
wherever  feasible,  partly  because  it  is  cheaper,  partly  because  of 
general  government  policy. 

In  the  days  before  independence,  the  Federation  restricted 
road  competition  with  the  rail  system  drastically,  and  while  present 
policy  is  less  restrictive,  there  is  no  free  competition,  and  so  much 
of  the  total  traffic  is  by  or  for  parastatal  organizations  that  the 


-  32  - 

picture  differs  markedly  from  that  of  Kenya. 
The  Export  Routes 

The  major  export  routes  noted  above  can  be  described  briefly. 

1.   Rhodesia  Railways  to  Beira  and  Lourenco  Marques  (Maputo) 

As  noted,  this  route  carried  virtually  all  traffic,  import 
and  export,  prior  to  1967.  The  line  was  well  built 

and  the  equipment  modern.   The  revenues  rose  steadily  up  until  1966,  but 
the  operating  ratio  was  relatively  high,  averaging  84  in  this  period. 
Rate  policies  were  influenced  by  the  desire  to  hold  the  copper  traffic 
from  the  Benguela,  but  the  usual  pattern  was  to  keep  copper  rates  at 
relatively  high  figures,  except  on  the  marginal  traffic  that  could,  by 
agreement,  go  via  the  Benguela.   This  amounted  to  a  type  of  profits 
tax  on  the  railway,  benefitting  the  Federation  and  reducing  the  amount 
that  Northern  Rhodesia  and  then  Zambia  could  raise  by  an  income  tax 
on  the  copper  companies'  profits.   Particularly  high  rates  were  charged 
at  times  on  Zaire  copper,  but  the  Zaire  firms  could  not  effectively 
avoid  it  because  they  had  to  rely  on  RR  for  their  coal  from  Wankie. 

After  years  of  profit,  except  in  the  1962-63  period,  the  loss 
of  traffic  and  rising  costs  resulted  in  small  deficits  in  the  early 
1970s;  in  1974,  the  first  full  year  after  closure  of  the  border,  the 
system  incurred  a  net  loss  of  K  10  million  (about  $15.5  million),  and 
in  1975  K  21  millions  ($31  million) .   Guerilla  warfare  has  resulted  in 


A.  R.  Prest,  Transport  Economics  in  Developing  Countries  (New  York: 
Praeger,  1969),  p.  95. 


-  33  - 

some  damage  to  the  lines . 

From  a  longer  range  standpoint,  African  rule  of  Zimbabwe  (Rhodesia) 
will  undoubtedly  result  in  some  resumption  of  traffic  from  Zambia  via 
Victoria  Falls  and  Mozambique  ports,  and  trade  between  Zambia  and 
Zimbabwe,  although  the  Salisbury-Lusaka-Copper  Belt  traffic  except  in 
bulk  commodities  is  almost  certain  to  go  by  road.   Opening  of  the  border 
at  Victoria  Falls  would  also  result,  in  all  likelihood,  in  resumption 
of  rail  traffic  in  fertilizer  from  South  Africa,  and  in  beef  and  other 
products  from  Botswana.   But  never  again  is  this   likely  to  be  a  major 
route  for  exports  and  imports  for  Zambia 

2.   The  Benguela  Railroad,  via  Zaire  and  the  port  of  Lobito 

• 

This  route  involves,  in  traffic  from  the  Copper  Belt,  a 
relatively  short  haul  on  Zambia  Railways,  thence  via  the  Zaire  system 
(SNCZ)  through  Lubumbashi  to  Tenke,  on  the  main  line  to  Port  Francqui, 
and  westward  to  Dilolo,  and  thence  westward  on  the  Benguela  to  the  port  of 
Lobito.   The  Benguela  has  been  a  subsidiary  of  Tanganyika  Concessions, 
Ltd.,  a  British  firm,  and  unique  in  its  reliance  on  wood  burning  steam 
locomotives.   The  line  was  to  revert  to  Portugal  in  the  1980s;  its 
present  status  is  not  clear,  but  undoubtedly  it  has  been 
or  will  be  nationalized.   This  route  offers  one  very  significant 
advantage:   since  Lobito  is  on  the  Atlantic,  the  total  haul  is  substan- 
tially less  than  via  Indian  Ocean  ports,  and  substantial  time  —  as 
much  as  two  weeks  —  is  saved.   This  is  particularly  important  on 
imports.   But  use  of  the  route  was  long  restricted  by  the  agreements 
between  the  mining  companies  and  Rhodesia  Railways  and  by  rate  policies 
of  the  latter;  by  the  fact  that  the  port  of  Lobito  was  less  satisfactory 


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-  34  - 

in  handling  cargo  than  Beira;  by  limitations  on  capacity  on  outbound 
traffic  because  of  the  handling  of  large  quantities  of  Angolan 
manganese  and  iron  ore;  and,  in  the  period  between  Zambian  and  Angolan 
independence,  the  reluctance  of  the  Zambian  government,  for  political 
reasons,  to  make  use  of  this  route. 

Once  Zambia  closed  the  Rhodesia  route  completely,  it  was 
forced  as  a  practical  matter  to  make  greater  use  of  the  Benguela,  in 
part  because  Lobito  alone  could  handle  some  types  of  heavy  cargo. 
Furthermore,  Angolan  independence  was  by  then  assured.   In  1972  this 
route  handled  only  14%  of  Zambia's  imports  and  exports;  in  1974,  about 
50%.   In  that  year,  for  example,  the  port  handled  some  104,000  tons  of 
wheat  for  Zambia;  51,000  tons  of  coke;  259,000  tons  of  general  import 
cargo.   But  this  sudden  shifting  of  traffic  onto  the  Benguela  coincided 
with  substantial  unrest  in  Angola  as  independence  approached  and  loss 
of  Portuguese  technicians,  which  led  to  congestion  in  the  port, 
surcharges  by  the  shipping  firms,  and  delay  in  handling  cargo.   Then 
came  the  final  breakdown  in  late  1975  as  military  action  resulted  in 
severe  damage  to  the  line,  and  destruction  of  two  major  bridges,  at 
Lumeje,  west  of  Luso,  and  at  Luau,  close  to  the  Zaire-Angola  border. 
Continued  unstable  conditions  resulted  in  delays  in  rebuilding  the  line 
and  bridges.   About  800  Zambia  Railway  freight  cars  were  stranded  in 
Angola,  new  diesels   for  the  railway,  and  substantial  quantities  of 
copper . 

Up  until  recent  disorders,  the  Benguela  has  been  a  consis- 
tently profitable  venture,  with  an  average  operating  ratio  for  1955-60 
of  60,   and  consistent  dividend  payments.   Partly,  of  course  this  was  a 


Prest,  op_.  cit. ,  p.  96. 


-  35  - 

product  of  the  absence  of  road  transport  competition;  there  are  no 
roads  of  any  kind  between  Zambia  and  Katanga  (now  Shaba)  and  the  Atlantic. 
Secondly,  it  handles  a  substantial  volume  of  traffic,  although  much  of 
it  is  of  low  value  and  rates. 

Over  time,  the  Benguela  should  again  become  a  significant 
outlet  to  the  sea  for  Zambia,  particularly  for  import  traffic,  given 
the  importance  of  speed.  While  Zambia  is  committed  in  principle  to 
concentrate  traffic  on  the  Dar  es  Salaam  route,  there  is  substantial 
feeling  that  the  country  should  never  allow  itself  to  be  dependent 
solely  on  one  route.   Possible  completion  of  an  all-Zaire  route  would 
hurt  the  Benguela  to  some  extent,  but  renewed  development  in  Angola 
should  in  time  more  than  offset  this. 

The  capacity  of  the  Benguela  was  greatly  increased  by  the 
completion,  in  1974,  of  the  Cubal  variant,   128  km  of  relocated  line 
beginning  about  350  km  east  of  Lobito,  built  to  eliminate  severe  grades 
that  reduced  train  speed  and  length  drastically. 

The  lines  in  Zaire  were  built  by  several  private  firms,  allied 
with  the  mining  complex  in  Katanga  and  to  some  extent  with  the  Benguela. 
The  most  important  was  BCK  (Bas-Congo  au  Katanga),  later  KDL  (Kinshasa- 
Dilolo-Lubumbashi) ,  the  main  route  from  the  Zambia  border  to  Port 
Francqui  (now  Ilebo) .   A  second  major  route  extends  northeastward  from 
Kamina,  on  the  Ilebo  line,  to  Kindu  as  a  part  of  rail-water-rail  route  to 
Kisangani  and  of  the  original  all-Congo  route  to  the  ocean.   From  Kabalo 
a  branch  (built  in  1915)  extends  eastward  to  Kalemi   (Albertville)  on 


The  portions  from  Lubumbashi  to  Kamina  and  the  junction  at  Tenke  to 
Mutshatsha  are  electrified  —  the  only  electified  system  in  all 
Tropical  Africa. 


-  36  - 

Lake  Tanganyika.    This  system  was  not  connected  with  BCK  between 
Kabalo  and  Kamina  until  1957.   These  lines  have  been  nationa- 

lized in  recent  years,  consolidated  as  the  Societe  Nationale  de  Chemins  de 
Fer  Zairois  (SNCZ) .   The  all  Congo  route  to  the  sea  requires  transfer 
to  steamer  at  Ilebo  on  the  Kasai  River,  transfer  back  to  rail  at 
Kinshasa,  and  to  ocean  going  vessels  at  Matadi,  Zaire's  only  ocean  port. 
There  have  been  extensive  discussions  about  the  building  of  a  connecting 
link  from  Kinshasa  to  Ilebo,  through  difficult  terrain.   Completion  of  this 
link  would  result  in  substantial  diversion  of  Zaire  traffic  from  the  Benguela. 
Thus  far  Zaire  has  been  unable  to  obtain  financing  for  this  project. 

Apart  from  the  export  traffic  to  Lobito,  there  is  a  consider- 
able volume  of  traffic  between  Zambia  and  Zaire,  consisting  largely  of 
maize  exported  to  Zaire.   Some  41,000  tons  were  reported  in  1975.   As 
of  1977,  some  Zaire  copper  traffic  is  moving  to  the  ocean  via  Zambia 
and  TAZARA,  as  noted  below.   From  a  longer  range  standpoint,  there  is 
substantial  traffic  potential  between  the  two  countries.   The  road 
system  of  Zaire  is  very  limited. 

3 .   The  Kenya  Route 

The  port  of  Mombasa  is  one  of  the  most  modern  in  the  world, 
one  of  the  few  good  natural  harbors  in  all  Africa.   It  has  not  been 
congested  in  recent  years,  in  part  because  of  the  diversion  of  the 
Arusha-Moshi  traffic  to  Tanzanian  ports.   In  1973  KENATCO,  the  Kenya- 
government-owned  road  transport  firm,  commenced  to  haul  Zambian 
copper  out,  primarily  sulphur  and  lubricants  in,  to  the  point  at  which 


This  line  was  operated  by  the  Compagnie  de  Chemins  des  Fer  du  Congo 
Superior  aux  Grands  Lacs  Africains. 


-  37  - 

it  was  handling  about  9  percent  of  the  Zambia  traffic.   Much  of  the 
hauling  was  done  by  private  Kenya  firms  under  contract  to  KENATCO.   As 
noted,  in  late  1974  Tanzania  put  an  abrupt  end  to  this  traffic  by 
setting  a  19.4  ton  maximum  load  and  banning  trailers,  thus  making  road 
haulage  uneconomic. 

4  .   The  Malawi  Route 

The  original  rail  line  to  Malawi  (then  Nyasaiand)  was  built 
north  from  Beira  via  Blantyre  to  Salima,  on  Lake  Nyasa ,   In  1970  a 
line  was  completed  east  and  west  from  Nova  Freixo  on  the  rail  line  from 
the  port  of  Nacala  and  Mozambique  (city)  to  Vila  Cabral,  in  Mozambique 
east  of  Lake  Nyasa  to  connect  with  this  line  north  of  Blantyre,  at  Nayuci. 
The  Malawi  route  with  road  transport  to  Salima  was  used  for  Zambia  traffic 
to  some  extent  from  1967  on.  After  the  closure  of  the  border  with  Rhodesia  and 
the  serious  port  congestion  at  Dar  es  Salaam,  greater  use  of  this  route  was 
undertaken,  primarily  for  the  handling  of  fertilizer,  which  comes  from 
South  Africa  —  and  Tanzania  will  not  handle  any  traffic  originating  in 
South  Africa.   By  1975,  75%  of  all  fertilizer  was  coming  by  this  route, 
and  considerable  general  cargo,  and  about  10%  of  the  export  of  copper. 
Several  problems  arose  very  quickly:   lack  of  freight  cars  by  Malawi 
Railways  and  congestion  in  the  ports  of  Nacala  and  Beira,  due  in  part 
to  loss  of  Portuguese  technicians  after  independence.   The  hauling  to 
the  railhead  has  been  done  by  Contract  Haulers,  owned  by  the  Zambia 
government,  but  it  has  been  possible  to  handle  only  12.5  ton  loads, 
given  the  roads.   Extension  of  Malawi  Railways  to  Lilongwe  has 
shortened  the  road  haul  somewhat.   There  has  also  been  some  road  hauling 
from  Zambia  to  Moatize,  near  Tete,  the  rail  head  in  Mozambique,  but  the 


-  38  - 

road  conditions  are  particularly  unsatisfactory. 

From  a  longer  range  standpoint,  this  route,  with  improved 
roads  and/or  a  rail  connection,  as  noted  below,  may  have  some  potential, 
but  for  the  Copper  Belt  traffic  it  can  scarcely  be  competitive  with 
TAZARA.1 

5.  Kazengula  Route 

With  the  Rhodesian  border  closed,  Zambia  was  cut  off  from 
direct  contact  with  both  Botswana  and  South  Africa  except  by  the  Zambezi 
River  crossing  at  Kazangula.   The  state  of  roads  in  Botswana  prevented 
this  road  route  from  being  a  significant  avenue  of  commerce,  but  it  has 
been  used  for  the  handling  of  some  mining  equipment  and  supplies  from 
South  Africa,  which,  together  with  fertilizer,  have  been  the  only  items 
Zambia  has  been  purchasing  from  that  country.   This  traffic  in  general 
moved  through  by  road  to  the  Copper  Belt  destinations. 

6.  The  Lake  Tanganyika  Routes 

A  route  which  traditionally  was  used  for  some  traffic  to 
Zambia  involved  rail  movement  on  EAR's  Tanzania  Central  line  to  Kigoma, 
transfer  to  steamer  for  the  trip  down  Lake  Tanganyika,  and  road 
transport  from  Mpulungu  at  the  south  end  of  the  lake.   In  the  late 
sixties,  for  example,  considerable  copper  moved  out  this  way,  and 
gasoline  for  northern  Zambia  came  by  this  route.   But  it  was  a  slow 
route  at  best,  requiring  twice  the  time  of  the  road  haul  to  Dar  es 


Malawi  Railways,  with  relatively  short  hauls,  has  not  been  highly 
profitable;  the  operating  ratio  1960-65  averaged  80,  with  an  upward 
trend.   Prest,  op_.  cit. ,  p.  95. 


-  39  - 

Salaam,  and  two  transfers.   Use  came  to  an  end  when  the  engines  of  the  sixty- 
year  old  EAR  steamer  Liemba,  the  only  vessel  in  the  service,  gave  out  in 
the  early  'seventies.   An  alternative  route,  involving  rail  movement 
through  Zaire  to  Kalemie,  crosslake  transfer,  and  EAR  from  Kigoma,  has 
not  been  a  viable  one. 

7 .  Air  Freight 

For  a  time,  following  the  initial  attempt  to  restrict  traffic 
via  Rhodesia  and  the  petroleum  shortage,  air  transport  between  the 
Copper  Belt  and  Dar  es  Salaam  was  used  to  haul  copper  out  and  supplies 
in.   But  this  proved  to  be  very  costly,  and  improvements  in  the  Great 
North  Road  allowed  the  cessation  of  this  traffic.  Air  freight,  however, 
continues  to  be  important  for  importation  of  some  goods  from  Europe 
and  Kenya,  and  meat  from  Botswana.   It  amounted  to  only  2.8%  of  the  Zambia 
imports  in  1975  and  yet  required  17  percent  of  the  country's  payments 
for  external  freight  traffic. 

8.  The  Dar  es  Salaam  Route  —  Road  Transport 

At  the  time  of  independence  in  Zambia,  the  Great  North  Road 
to  Dar  es  Salaam  was  a  bare  trek  through  the  semi-desert,  impossible  in 
bad  weather.   Following  UDI  in  Rhodesia,  the  government  of  Zambia  began 
an  organized  effort  to  haul  copper  out  and  imported  goods  in  by  road 
transport  over  this  road.  The  result  was  a  sharp  increase  in  cost  and 
very  substantial  damage  to  imported  goods  —  but  a  substantial  volume 
of  goods  flowed  both  ways.   Gradually,  with  U.S.  aid,  the  road  was 
surfaced  and  the  flow  became  much  more  regular.   But  it  never  handled 
mere  than  half  of  the  total  flow  of  traffic.   In  the  year  1974,  70,000 


-  40  - 

tons  of  steel,  40,000  of  chemicals  and  fertilizer,  16,300  tons  of 
timber,  145,000  tons  of  general  merchandise  were  hauled  in.   In  that 
year  there  were  11,625  trips  out,  12,613  in,  or  about  30  a  day  each 
way.   Some  245,000  tons  of  copper  were  carried  out,  and  73,000  tons  of 
maize  to  Tanzania.   Zambia-Tanzania  Road  Services  (ZTRS),  owned  by  the 
two  governments  and  an  Italian  firm,  had  the  basic  contract  and  carried 
about  half  the  traffic  in  its  own  trucks;  Contract  Haulage  (CH),  owned 
by  the  government  of  Zambia,  a  portion;  and  private  subcontractors  the 
remainder.   ZTRS  used  trucks  in  the  25  to  30  ton  range,  averaging  23.1, 
Contract  Haulage,  21.5  (net  cargo).   ZTRS  was  using  442  trucks;  CH, 
105;  and  the  other  subcontractors,  419.   The  vehicles  averaged  from  1.3 
to  1.7  round  trips  per  month.   As  of  1974,  the  rate  on  copper  was  K  54 
per  ton,  on  general  cargo,  K  49.   The  latter  rate  was  2.45  ngwee  per 
ton  kilometer,  the  equivalent  of  about  6.7  cents  per  U.S.  ton  mile  at 
1975  exchange  rates  or  5.3  cents  at  the  more  realistic  1977  exchange 
rate.  All  in  all,  this  was  a  very  impressive  performance,  particularly 
considering  the  fact  that  it  was  started  from  almost  nothing,  on  the 
one  hand,  and  phasing  out,  or  at'  least  great  reduction,  was  ultimately 
p lanned . 

9.   TAZARA  —  The  Dar  es  Salaam  Rail  Route 

The  idea  of  a  railroad  from  the  Copper  Belt  directly  to  the 
Ocean  had  been  considered  long  before  Zambian  independence.   The  first 
serious  study  was  made  by  a  consultant  for  the  British  Colonial  office, 
published  in  1952;   after  independence,  studies  were  made  by  the  World 


United  Kingdom  Colonial  Office,  Report  on  Central  African  Rail  Link 
Development  Survey,  2  vol.  (London:   KMSO,  1952). 


41  - 


Bank  (1964)  and  the  Economic  Commission  for  Africa,  which  found  such  a 

1 
railroad  to  be  uneconomic.    But  the  government  of  Zambia  was  extremely 

anxious  to  end  reliance  on  the  Rhodesian  outlet,  and  Tanzania  was 

highly  sympathetic  to  a  rail  line  across  the  southern  part  of  the 

country.   The  presidents  of  the  two  countries  agreed  on  the  desirability 

of  the  line  in  1964.  While  the  World  Bank,  the  United  Kingdom,  and  the 

Soviet  Union  all  rejected  requests  to  assist,   a  Canadian  study  (1966) 

indicated  the  economic  feasibility  of  the  line,  even  if  the  other 

2 
routes  could  be  used.    In  1967  Zambia  and  Tanzania  reached  an  agreement 

3 
with  mainland  China  to  build  the  line.    The  original  plan  to  build  to 

a  connection  to  EAR  was  abandoned  because  of  the  gauge  difference,  and 
the  final  plans  called  for  a  line  all  the  way  to  the  Dar  harbor.  Con- 
struction began  in  1970,  the  Zambia  border  was  reached  in  1973,  and  a 

connection  with  Zambia  Railways  at  Kapiri  Mposhi  was  completed  in 

4* 
October  of  1975.  The  railroad  is  known  as  TAZARA. 

The  route  passed  through  Mbeya  (but  not  Iringa,  the  other  major  city  in 

southern  Tanzania),  and  Kasama  and  Mpika  in  Zambia.   The  final  length 

was  1852  kilometres,  or  1158  miles,  to  the  junction;  thus  the  distance 

to  Lusaka  is  about  1275  miles.   Many  observers  were  skeptical  for 

several  years  that  the  line  would  be  built,  and  there  were  rumors  that 


A  Brookings  Institution  study  was  also  very  critical  on  the  grounds  of 
unnecessary  duplication.   See  E.  T.  Haefele  and  E.  B.  Steinberg. 
Government  Controls  of  Transport  _ —  An  African  Case  (Washington: 
Brookings,  1965). 

^British-Canadian  Report  on  an  Engineering  and  Economic  Feasibility 
Study  for  a   Proposed  Zambia-East  Africa  Rail  Line  (London:   1966) . 

3 
A  good  survey  of  this  development  is  to  be  found  in  Richard  Hall,  The 

High  Price  of  Principles  (London:   Hodder  &  Stoughton,  1969),  Chapter  14, 

and  George  T.  Yu,  "Working  on  the  Railroad:   China  and  the  Tanzania 

Zambia  Railway,"  Asian  Survey,  Vol.  11  (Nov.  1971),  pp.  1101-15. 

For  Tanzania  Zambia  Railway  Authority.   It  is  owned  jointly  by  the  two 
governments. 


-  42  - 

the  U.S.  aid  for  surfacing  the  Great  North  Road  was  designed  to  head 
off  construction  of  the  railroad. 

TAZARA  operates  to  a  separate  set  of  docks  in  the  Dar. es 
Salaam  harbor  used  exclusively  for  Zambia  cargo. 

Operations  began  on  a  limited  scale  in  October  of  1975,  as  a 
trainload  of  wheat  for  NAMBORD  reached  Kapiri  Mposhi  as  the  first  cargo. 
Initially  operations  were  confined  to  one  freight  train  a  day,  with  30 
cars,  and  operations  were  gradually  stepped  up.   In  December  1975 
20,000  tons  of  copper  were  carried,  and  in  June  1976,  58,000  tons.   By 
late  1976,  the  typical  copper  traffic  was  42,000  tons  a  month.   In  the 
first  12  months  of  operation,  350,000  tons  of  freight  were  carried  and 
293,000  passengers;  in  the  first  eleven  months  of  1976,  610,000  tons.   The 
initial  capacity,  once  full  scale  operations  are  under  way,  will  be  2 
million  tons  in  each  direction  per  year  —  about  twice  the  present  needs 
of  Zambia,   In  recent  years  slightly  under  1  million  tons  have  moved  each 
way,  exclusive  of  the  pipeline  traffic,  which  is  almost  as  great  as  the 
surface  imports  in  tonnage.   Ultimately  capacity  is  planned  to  reach  4.3 
million  tons  each  way,  and  finally,  7  million.   This  would  require  17 
freight  trains  a  day  each  way.   At  present  5  trains  each  way  per  day  are 
operated.   The  entire  emphasis  in  this  early  period  has  been  upon  outbound 
movements  of  copper,  inbound  of  bulk  shipments,  leaving  much  of  the  manu- 
factured goods  traffic  to  road  transport  for  the  moment.   This  will  be 
phased  down,  but  some  may  be  retained.   Much  of  the  road  transport  fleet 
is  near  the  end  of  its  useful  life. 


Two  books  have  already  appeared  on  TAZARA;   by  R.  Hall  and  H.  Peyman, 
The  Great  Uhuru  Railway  (London,  Callanz,  1976)  and  M.  Bailey,  Freedom 
Rai Iway  (London:   Collings,  1976). 


-  43  - 

Currently  the  line  is  also  handling  a  substantial  amount  of 
Zaire  copper  traffic,  because  of  the  problems  with  the  Benguela.   It  is 
expected  that  some  Zaire  products  will  continue  to  move  over  TAZARA* 
There  is  also  substantial  traffic  within  Tanzania,  particularly  to  the 
Mbeya  area-   On  July  14,  1976,  the  road  was  turned  over  by  the  Chinese 
contractors  to  the  TAZARA  authority,  but  about  1,000  Chinese  will 
remain  to  aid  in  instruction,  gradually  being  phased  out  over  the  next 
two  years. 

While  TAZARA  connects  with  Zambia  Railways  at  Kapiri  Mposhi, 
and  the  gauges  are  the  same,  immediate  free  interchange  of  equipment  was 
impossible.   Zambia  Railways,  like  the  entire  network  of  rail  lines  of 
central  and  southern  Africa,  uses  vacuum  brakes- rather  than  air  brakes, 
whereas  TAZARA  equipment  was  designed  with  air  brakes  —  as  is  East 
African  Railways  and  most  of  the  rest  of  the  world.  ZR  converted  several 
of  its  diesels  to  air  brakes,  and  thus  has  been  able  to  bring  TAZARA 
trains  to  the  Copper  Belt  and  to  Lusaka.   But  the  cars  cannot  be  mixed 
in  trains  and  substantial  traffic  has  been  off  loaded  on  to  road  trans- 
port at  Kapiri  Mposhi.   The  intent  is  ultimately  to  change  entirely  to 
air  brake  operation  —  but  this  requires  change  by  the  other  countries 
in  southern  Africa  as  well. 

TAZARA  headquarters  are  in  Dar  es  Salaam,  shops  are  in  Dar 
es  Salaam  and  Mpika. 

Tariff 

The  preliminary  tariff,  to  be  replaced  in  1977  by  a  permanent 
tariff,  was  based  upon  that  of  Zambia  Railways.  Goods  are  grouped  into 
14  classes  plus  separate  mineral  and  tank  car  rates.   A  negotiated  rate 


-  44  - 

on  copper  is  not  included  in  the  tariff.   Sample  figures  are  shown  in 
the  table  below: 

Dar  es  Salaam  to 

Kapiri  Mposhi  Mbeya 

(1852  KM)  (850  KM) 

Rates  per  1000  Kilograms, 
Kwacha 

First  class                 65.40  42.10 

Fourteenth  class             9.58  4.74 

Minerals                    8.58  4.25 

Tank  car                    30.06  19.32 
Copper                    42.04 

1  Kwacha  =  U.S.  $1.25  (1977) 

The  minerals  rate  is  about  8  mills  per  U.S.  ton  mile,  and  this 
is  comparable  to  U.S.  rail  rates  on  similar  movements.   The  first  class 
rate  is  about  7  U.S.  cents  per  ton  mile.   A  tapering  rate  structure 
is  used  though  the  degree  of  taper  varies  with  the  classes.   The  degree 
of  tapering  is  much  less  than  is  typical  in  the  U.S. 

Rates  are  established  for  carload  minimum  weights  only,  plus 
a  separate  tariff  for  parcels.   The  first  class  rate  is  above  the  ZTRS 
rate,  but  most  of  the  class  rates  and  the  special  rates  are  lower. 
There  are  as  yet  no  joint  rates  with  Zambia  Railways,  although  these 
are  expected  in  time. 

Passenger  Service  and  Fares.   Passenger  service  was  commenced 
almost  immediately  upon  the  opening  of  the  line,  the  train  leaving  Dar 
es  Salaam  at  10  in  the  morning,  arriving  in  Mbeya  at  9:05  the  next 
morning,  Mpika  at  11  o'clock  that  night,  and  Kapiri   at  7  the  next 
morning  —  about  40  hours,  averaging  little  better  than  20  miles  an 
hour,  but  with  a  total  of  55  stops.   By  the  end  of  1976,  two  trains 
were  being  operated,  one  in  36  hours  and  one  in  42  hours.   The  third 


-  45   - 

class  fare  is  K6.65  --  about  $8.30  for  a  1100  mile  trip.   The  first 
class  fare  is  K28.36  —  about     .!";  —  extremely  cheap  by  comparison 
with  air  fares,  and  a  much  lower  basis  than  Zambia  Railways. 

Change 
is  necessary  at  Kapiri;  ultimately  cars  may  be  run  through  to  Lusaka, 
but  the  brake  problem  arises  here  as  well.   Zambia  Railways  has  been 
reluctant  to  run  the  trains  through,  partly  because  of  shortages  of 
diesels,  partly  because  of  questions  about  crews. 

Additional  Traffic  Potential.   In  addition  to  the  through 
traffic  destined  to  and  from  the  Copper  Belt  and  Lusaka,  there  is  other 
traffic  potential.   A  truck  assembly  plant  is  being  established  at 
Kasama  in  northeast  Zambia.   Considerable  agricultural  product  traffic 
to  and  from  the  northeast  province  is  almost  certain  to  develop.   To 
Zambia  Railways,  traffic  coming  from  TAZARA  bound  for  southern  Zambia, 
and  maize  traffic  coming  from  the  south  bound  for  Tanzania  are  particu- 
larly attractive. 

Within  Tanzania  there  are  potentials  as  well.   Already  the 
railway  has  taken  over  traffic  from  road  transport  in  the  Mbeya  area. 
While  some  claims  about  future  effects  of  the  railway  upon  the  Kilombero 
Valley  are  exaggerated,  there  is  bound  to  be  considerable  influence. 
One  of  the  greatest  potentials  is  provided  by  the  coal  and  iron  deposits 
in  the  Njombe  district,  if  a  branch  line  were  built  from  Makumbako  via 
Njome  to  Liganga .   The  Njombe  area  is  also  an  important  agricultural 
area,  particularly  in  the  production  of  tea.   On  the  other  hand,  the 
line  may  spell  the  doom  of  EAR's  Kidatu  branch,  the  previous  railhead 
into  the  Kilombero  Valley. 


-  46  - 

The  possibility  of  interchange  of  traffic  with  East  African 
Railways  is  restricted  by  two  factors,  technical  and  political.   TAZARA 
uses  the  1.067  metre  gauge  of  the  southern  lines;  EAR,  metre.   It  is 
impossible  to  lay  a  third  rail,  as  could  be  done  with  the  standard  and 
3  foot  gauge  lines  in  the  United  States, as  there  is  insufficient 
clearance.   There  has  long  been  discussion  of  changing  EAR  to  the  broader 
gauge;  currently  there  is  considerable  discussion  of  this  question  in 
Dar  es  Salaam,  but  none  at  ail  in  Nairobi.   It  is  not  impossible  that 
the  Tanzanian  lines  might  be  changed  while  the  Kenya  lines  were  not. 
The  task  of  changing  is  not  an  impossible  one  although  some  disruption 
of  service  would  result.   Much  EAR  equipment  acquired  in  recent  years 
has  been  so  designed  that  an  equipment  change  can  easily  be  made.   The 
main  task  Is  to  move  one  rail  out  three  inches. 

The  main  obstacle  to  through  traffic,  however,  is  political. 
The  greatest  potential  for  trade,  in  the  next  decade  or  so,  is  between 
Kenya  and  Zambia,  in  view  of  the  former's  progress  in  manufacturing  in 
many  fields.   Even  now,  Kenya  has  to  some  extent  replaced  South  Africa 
as  the  supplier  of  processed  foods,  butter,  tin  cans,  and  other  products 
in  the  Zambia  market.   But  given  the  unfriendly  relations  between  Kenya 
and  Tanzania,  there  is  little  hope  of  Tanzania's  encouraging  rail 
interchange.   From  a  longer  range  standpoint,  however,  there  is  poten- 
tial for  free  movement  of  commodities  among  all  three  countries  (and 
possibly  Uganda  as  well) . 

Other  Potential  Rail  Lines 

Given  the  emphasis  placed  on  rail  transport  in  Central  Africa, 
there  has  been  substantial  discussion  of  the  building  of  additional 


-  47  - 

lines,  although  in  all  likelihood      f  these  will  come  to  fruition: 

1.  A  line  to  connect       i  with  Malawi  Railways  at 
Lilongwe.   This  would  facilitate  trade  between  the  two  countries  and 
give  Zambia  another  rail  outlet  to  the  sea,  although  one  not  as  good 
as  TAZARA. 

2.  In  conjunction  with  a  line  to  Malawi  or  as  a  separate 
one  built  independently,  a  line  from  Lusaka  to  the  railhead  of  the 
Mozambique  system  near  Tete,   crossing  into  Mozambique  at  Feira-Zumbo. 
This  would  provide  a  much  more  direct  outlet  to  Beira  than  the  route 
via  Rhodesia. 

3.  The  so-called  Luso  variant,  a  line  extending  from  the 
Copper  Belt  through  northwestern  Zambia,  to  connect  with  the  Benguela 
at  or  near  Luso,  thus  reducing  the   distance  and  avoiding  the  haul  via 
Zaire.   This  would  also  facilitate  the  development  of  mineral  resources 
in  the  northwest  province  of  Zambia. 

4.  As  noted  above,  with  an  independent  Zimbabwe,  a  direct, 
route  from  Lusaka  to  Salisbury,  crossing  the  Zambesi  at  Chirundu,  where 
the  highway  crosses . 

5.  As  noted,  an  all  rail  outlet  to  the  sea  in  Zaire. 

Conclusion 

Zambia  now  has  a  good  rail  route  to  the  coast,  with  rates  less 
than  those  available  for  many  years  (in  real  terms,  the  lowest  rates 
ever  available).   TAZARA  is  capable  of  handling  all  import  and  export 
traffic  once  full  operations  are  underway,  although  some  traffic  will 
likely  continue  to  move  by  road,   and  other  routes  once  opened  will 
undoubtedly  be  used  to  some  extent .   Since  the  government  of  Zambia 


-  48  - 

controls  the  routing  of  all  freight,  it  is  in  a  position  to  determine 
routes  and  methods  of  transport.   The  volume  of  traffic  on  TAZARA  will 
be  sufficient,  on  the  basis  of  studies  elsewhere  of  the  relationship  of 
volume  of  traffic  and  cost  per  ton  mile  and  the  ch" rectionally  balanced 
traffic,  to  be  economically  viable  and  more  economical  than  road  trans- 
port, although  the  importance  of  speed  and  handling  may  dictate  the 
routing  of  some  traffic  via  road. 

No  studies  have  been  made  of  the  effects  of  railways  upon 
economic  development  in  Zambia,  so  far  as  is  known,  partly  because  the 
results  have  been  so  obvious.  Without  the  railway  outlet  to  the  sea, 
the  copper  complex  in  Zambia  could  not  possibly  have  developed  when  it 
did.   Given  high  world  copper  prices,  it  could  operate  without  railroad 
access  today,  given  a  good  road  to  Dar  es  Salaam  and  present 
road  transport  operation  and  costs.  But  the  development  of  the  industry 
would  have  been  delayed  for  several  decades  at  least.   The  significance 
of  the  railway  for  the  economy,  however,  extended  far  beyond  the  copper 
industry.   Along  the  "line  of  rail".,  the  narrow  belt  on  each  side  of  the 
railroad,  developed  commercial  agriculture,  trade,  and  limited  manu- 
facturing, while  the  rest  of  the  country  for  the  most  part  remained  in 
subsistence  agricultre.   The  line  of  rail  became  the  dominant  segment  in 
the  economy  of  the  country,    although  it  had  no  other  particular 
advantages;    it  just  happened  to  lie  in  the  path  of  a  rail  line  from 
Victoria  Falls  to  the  Copper  Belt.   An  estimated  85%  of  all  economic 
activity  in  the  country  is  in  this  narrow  belt.   Over  time  this  small 
area  may  lose  ground  relatively,  but  it  is  likely  to  dominate  the 
economy  for  a  long  time  to  come. 


-  49  - 


Supplementary  Tables 


Table  3  shows  the  distances  to  the  various  ports  from  Lusaka % 


Table  3 


Distance  to  the  Ports  from  Lusaka 


Ki 

lometers 

Mile 

via 

3enguela 

2683 

1678 

.Rhodesia  Railway  and  Beira 

2040 

1275 

Malawi  and  Beira 

1653 

1033 

Malawi  and  Nacala 

1750 

1093 

Dar  es  Salaam  Road 

2090 

1306 

TAZARA 

2040 

1275 

Mombasa 

2350 

1469 

The  distance  from  Ndola  is  about  200  miles  less  via  Lobito,  150  miles 
less  via  Dar  es  Salaam,  and  200  miles  greater  via  Beira. 

Table  4  provides  samples  of  rates  on  copper  for  export  at 
various  times . 


Table  4 

Transport  Rates  on  Copper  to  Ports, 
Selected  Years 


1957 

All  three  ports 

K  29.70 

1960 

via  "Rhodesia  oa  portion  allowed 
to  go  via  Benguela 

19.00 

1962 

Rail  via  Rhodesia 

30.67 

1965 

Rail  via  Rhodesia 

30.67 

1967  (Oct.) 

Kail  via  Rnodesia 

40 

1967 

Lobito 

42.20 

1967 

Beira  via  Malawi 

54.20 

1967 

Dar  es  Salaam  Road 

43.16 

1967 

Dar  es  Salaam,  Air 

113. CO 

1968 

Road  via  Dar  es  Salaam 

44.80 

1968 

via  Lobito 

45.81 

1968 

via  Rhodesia 

45.98 

1976 

Road  via  Dar  es  Salaam 

54. 

1977 

via  TAZARA 

42.04 

COMMONWEALTH  WEST  AFRICA  —  NEGLECT  AND  DETE1  C  >RA  1    ! 

Of  the  four  Commonwealth  West  African  countries,  one.  Gambia, 
has  never  had  a  railroad;  the  Sierre  Leone  system  has  now  been  abandoned; 
the  Ghanaian  and  Nigerian  systems  have,  from  all  indications,  declined 
substantially  in  their  importance  in  the  economies  —  to  a  much  greater 
extent  than  in  East  Africa,  and        k  contrast  to  the  picture  in 
Central  Africa. 

Nigeria 

As  the  largest  country  in  population  in  Africa,  Nigeria  experi- 
enced the  development  of  a  relatively  substantial  rail  system,  a  total  of 
2178  miles  (3505  kilometres),  but  the  system's  present  role  in  the  economy, 
compared  to  road  transport,  is  not  nearly  as  great  as  might  be  expected. 

The  system  was  an  outgrowth  of  two  separate  lines,  one  from 
Lagos,  one  from  Port  Harcourt,  joining  at  Kaduna,  the  British-created 
capital  of  the  former  Northern  Region.   The  line  was  started  north  from 
Lagos  in  1896,  reached  Ibadan  in  190  ar   the  crossing  of  the  Nigei  at 
Jebba  in  1909,  anc  in  1912  »as  conn*  :  >ci       i  ta  to  the  line  from  Baro, 
on  the  Niger,  via       to  no  in  1912.   The  Port 

Harcourt  line  was  start      tbward  frc       cj  y    Li  L913,  reached  the 
coal  mines  of  Enugu  ir,  1916.,  the  Be     tver  in  1924.       iuna  in  1926, 
with  a  branch  to  ^os  in  1927."   Branches  -.vert  extended  to  Kauru  STamoda 
from  Zaria  in  1929,  to  Nguru  from  FCano  in  1930,  and  in  a  major  construc- 
tion project,  from  Jos  to   Maiduguri  in  B  ' .   One  of  the  major 
deficiencies  is  the  lack  of  an  east-west  line  —  while   passenger  trains 


""A  2 '6"  gauge  line  was  built  from  Zaria  to  Jos  in  1914  to  serve  the  tin 
mines.  This  was  abandonee;  in  1957,  since  the  Jos  area  was  served  mere 
effectively  by  the  main  line. 


y 


N 


./•> 


•  Kaura   Namoda^" 


PORT 
HARCl  ■ 


Fig.    3 


0     50   100   150 
1 « j j 

les 


NIGERIAN   RAILWAYS 


-  51  - 

ran  through  from  Lagos  to  Port  Harcourt,  for  example,  ov    ce   lin  da;   or 
the  week,  the  time  was  much  greater  than  in  a  din^ct  route.   The  pri- 
mary traffic  item  has  beer;,  ground  nui      Lng  from  the  north  for  export, 
and  cola  nuts,  cotton,  timber,  and  cattle  have  been  among  the  othc 
major  items  moved,  plus  petroleun     nets  and  manufactured  goods  bound 
tor  the  north.  The  system  used  a  ::      •anber  of  Beyer-Garretts,  but 
primarily  it  relied  on  2-8-2  steam  locomotives,  many  built  in  the  194 
and  1950s.   Tn  1S55  all  motiv      -  was   :-    earn  (218  line,  55  shunting): 
by  197''-.  there  were  133  stearr.  and  133  diesel  line  engines,  43  steam  and 
3S  diesel  shunting. 

While  in  earlier  years  th     sten   is  relatively  profitable, 
the  eai      ..  i  -  -  ratic. 

•  tic  L955-6)  to  113  [1965-66)      aging  96. 

Ei|   s  wis  107  in  1970,  1    n  197  }  en,  a  io;   t 

ir  i'ttt    r       ■   '.  ••.  -"        ;  96° -64, 

.   _/  '        [10,3  mills  >n  ,  ■ 

$.] 

:  ■- 

m        peal    if  an  »n 

tons   in   cht  -         '  raor  i    than   h«     I 

7  ■  ,  ,:■'■-. 

-."»  in 


Prt  .-   .    v 


: 


l  Nige  i      a!        ivj  I    [  ment  Pla    ._ 

:  der  a 1  M:  ■     ■ 

p.    214        1  Nai    i  = 


-  52  - 

1961-62.  The  declines  in  tonnage  and  ton  miles  have  been  comparable. 
Passenger  traffic  has  fallen  sharply,  from  11  million  in  1961-62  to  4 . 7 
million  in  1973-74,  »s  agef  miles  --hila 

falling  after  1970,  were  greater  in  1974  than  in  the  early  sixties.   The 
freight  traffic  in  1973-74  was  439,853  net  ton  miles  per  mile,  a  rela- 
tively low  figure.   The  average  length  of  haul  is  about  600  miles.   The 
freight  revenue  is  about   3  U.S.  cents  per  ton  mile  (1972). 

The  Third  National  Development  Plan,  issued  in  1975,  provides 

a  detailed  analysis  of  the  decline  in  traffic  and  operating  deficits 

2 
(apart  from  the  effects  of  the  Biafran  war): 

1.  Decline  in  agricultural  production,  particularly  for 
export,  a  major  source  of  traffic. 

2.  Sharp  decline  in  coal  production. 

3.  Deterioi-ation  in  rail  transport  services.   As  stated  in 
the  Development  Plan: 


Year  Ended  31st  March  Net  Ton  Miles 

(thousands) 

1960  1,249,840 

1961  1,181,101 

1962  1,412,165 

1963  1,410,950 

1964  1,554,793 

1965  1,221,025 

1966  '  1,215,058 

1967  1,004,000 

1968  986,000 

1969  1,094,000 

1970  950,147 

1971  981,793 

1972  750,129 

1973  '  844.000 

1974  958,000 

Source:   Federal  Republic  of  Nigeria:   Annual  Abstract  of  Statistics 
1972;  Federal  Office  of  Statistics,  Lagos,  1975. 

2 
Third  National  Development  Plan,  1975-1980,  op.  cit. 


53 


In  fact,  for  the  past  ten  years  the  volume  of  traffic  moved 
by  rail  has  been  limited  by  the  Railways'  capacity  to  carry 
it.   The  Railways  have  even  lost  considerable  long  distance 
bulk  traffic  to  the  roads  in  spite  of  the  fact  that  they 
would  carry  this  for  a  lower  charge  and  at  a  lower  cost  to 
the  country's  economy.   This  situation  is  largely  attributable 
to  the  unreliability,  slowness  and  inadequacy  of  Railway 
goods  transport  services . 

There  were  several  elements  responsible  for  this: 

a.  Unbalanced  traffic,  with  greater  up  than  down  traffic. 

b.  Rapid  decline  in  wagon  (freight  car)  utilization  due 
to  inadequate  coordinated  scheduling  of  car  use. 

c.  High  downtime  of  both  steam  and  diesel  locomotives.   In 
1974,  availability  times  were  only  17%  for  the  former, 
54%  for  the  latter.   In  general,  usable  motive  power  is 
entirely  inadequate. 

d.  Slow  train  speeds,  due  to  the  excessive  curvature  and 
inadequate  track  maintenance.   The  maximum  speed  allowed 
anywhere  on  the  system  is  40  miles  per  hour,  and 
restrictions  as  low  as  10  miles  an  hour  are  common. 

e.  Inadequate  communications,  due  in  part  to  constant 
thievery  of  the  copper  x^Ire  of  the  communications  lines. 

4.   Substantial  increase  in  road  transport  at  the  expense  of  the 
railroad,  including  long  distance  transport  from  the  north.   There  was 
little  restriction  on  road  transport  and  weight  limits  were  not 
enforced.   The  increased  road  transport  added  seriously  to  congestion 
(the  two  roads  from  Ibadan  to  Lagos  are  regarded  as  death  traps  by 
many  drivers) .   The  government  pushed  its  investment  in  roads  and  rail 
was  relatively  neglected. 


-  54  - 

In  the  third  development  plan,  issued  in  1975,  a  major  over- 
haul of  the  railway  system  was  proposed,  involving,  essentially,  the 
building  of  a  completely  new  system,  to  standard  (4 '8. 5"  gauge),  serving 
the  same  points  as  the  present  system,  built  parallel  to  it,  and  being 
phased  in  gradually.   The  plan  calls  for  building  about  320  kilometres 
per  year,  and  thus  the  plan  will  not  be  completed  until  well  into  the 
1980s.   Some  N  885  million  was  allocated  to  the  rail  system  1975-80,  out 
of  a  total  of  N  4  billion  for  transport,  of  which  N  714  million  will  be 
allocated  to  the  first  stage  of  the  new  system.  Meanwhile,  some  basic 
improvements  will  be  made  to  the  present  system,  and  new  rail  commuter 
service  in  the  Lagos  area  will  be  established. 

The  plans  are  based  upon  a  study  by  consultants  completed  in 
1973;  the  government  is  convinced  that,  given  potential  growth  in  the 
economy,  improved  rail  service  will  allow  lower  cost  transport  than 
primary  reliance  on  road  transport.  Whether  the  proposed  system  will  in 
fact  be  carried  to  completion  remains  to  be  seen. 

Ghana 

The  Ghana  Railways  has  suffered  much  the  same  fate  as 

Nigerian  Railways.   The  system  is  essentially  A  shaped,  lines  extending 

from  the  ports  of  Sekondi-Takoradi  and  Accra  northward  and  nortwestward, 

respectively,  joining  at  Kumasi.   These  two  lines  in  turn  are  linked 

by  an  east-west  line  paralleling  the  coast,  permitting  relatively 

direct  service  between  Accra  and  Second!.   The  western  line  was  started 

northward  from  Sekondi  in  1898,  primarily  to  facilitate  gold  mining  in 

the  area  around  Tarkwa ,   reaching  that  city  in  1901  and  Kumasi  in  1903, 

168  miles  from  the  ocean.   In  1909  a  line  was  started  north  from  Accra 

to  Kumasi,  but  did  not  reach  the  latter  until  1923.   The  total  distance 

Accra-Sekondi  was  363  miles.   A  long  branch  was  built  from  the  Tarkwa 


/»-  —  ■ 


I 
\ 


/ 


(■  Tamale 


GHANA 


i 


) 

/ 

i 

i 
i 

) 
/ 
f 

i 


/ 


KUMASI 


/ 


Awaso 


SEKONBI 
TAKORADI 


Fig.  4 
GHANA  RAILWAYS 


0  .  5.  10  20      ?0 
Miles 


-  55 


area  to  Kade,  completed  in  1927,  and  this  was  connected  to  the 
Accra-Kumasi  line  in  1956.   Like  Nigerian  Railways,  3'6"  gauge  is 
used.   Dieselization  began  in  1954  and  continued  slowly. 

The  main  line  of  the  system  is  the  Western  line,  Takoradi  to 
Kumasi,  171  miles,  which  handles  about  90  percent  of  all  the  traffic. 
The  Eastern  line,  from  Accra  and  the  port  of  Tenia  to  Kumasi,  is  214 
miles  in  length.   The  Central  line,  which  connects  the  other  two  is 
120  miles.   There  are  three  branches,  to  Prestea  in  the  west,  to  Awaso 
in  the  northwest,  which  handles  the  bauxite  traffic,  and  to  Kade,  in 
central  Ghana;  total  mileage  is  592  (953  kilometers) . 

Total  traffic  in  the  early  seventies  was  about  1.7  million 
tons,  and  190  million  ton  miles  (1970)  —  but,  as  noted,  90%  of  this 
is  concentrated  on  the  Western  line,  to  give  this  line  a  reasonably 
high  ton  mi/m  figure  of  about  1  million.   But  the  rest  of  the  system 
handles  only  200,000  tons,  with  a  ton  mi/mi  figure  of  45,000  —  low  by 
any  standards.   Over  90  percent  of  the  traffic  is  southbound,  and 
about  90  percent  of  the  revenue  comes  from  four  commodities  —  cocoa, 
timber,  manganese,  and  bauxite.   Most  of  the  imports  and  manufactured 
goods  traffic  is  by  road.   The  operating  ratio  averaged  89  from  1958  to 
1964,  but  was  increasing. 

Marginal  cost  per  ton  mileage  is  estimated  to  be  .86  np 
(for  direct  train  operating  costs),  2.36  np.  overall.   These  figures 
with  exchange  rates  of  the  period  were  equal  to  about  .8  U.S.  cents 
and  2  U.S.  cents  respectively. 

The  rate  structure  has  been  such  as  to  provide  relatively 
high  rates  on  manufactured  goods  traffic  and  on  cocoa,  the  principal 
export  crop,  and  very  low  rates  on  bauxite,  designed  to  make  the 


-  56  - 

Ghanaian  bauxite  competitive  in  world  markets. 

About  7  million  passengers  were  being  carried  per  year  in 
the  early  70s,  for  an  average  trip  of  40  miles.  98%  of  the  traffic 
was  third  class. 

The  general  picture  of  the  system  since  independence  has  been 
one  of  deterioration,  despite  some  improvements.   There  has  been  very 
substantial  loss  of  traffic  to  road  transport.   For  example,  once  all 
cocoa  was  hauled  by  rail;  by  1966,  30%  was  moving  by  road;  by  the 

early  seventies,  nearly  half.   The  high  rate,  —  NC  12.51  per  ton  — 

2 

was  50%  greater  than  the  cost  of  hauling  by  road,  NC  8."   The  shift  to 

road  was  also  encouraged  by  substantial  ownership  of  lorries  (trucks) 
by  the  cocoa  buying  agents,  and  by  the  inability  of  the  railroad  to 
handle  all  of  the  traffic  offered.   This  limited  capacity  was  also  an 
important  factor  leading  to  the  loss  of  other  export  traffic  as  well, 
particularly  of  logs.   Inadequate  funds  were  provided  for  new  equip- 
ment, and  equipment  maintenance  was  often  neglected.   The  result  has 
been  continuing  deficits  and  continuing  loss  of  traffic.   An  inherent 
source  of  difficulty  is  the  relatively  short  haul  —  the  maximum  about 
200  miles.   Thus  road  transport  has  important  advantages. 

The  problem  of  transport  in  Ghana  has  not  gone  unnoticed  by 
the  government.   Around  1970,  funds  were  provided  for  new  equipment 
and  improved  signalling,  particularly  to  increase  capacity.   In 
1969-70,  a  major  study  was  undertaken  of  the  entire  transport  sector 


Edward  Vickrey,  "Pricing  Rail  Transport  Services  in  Ghana  for  Increased 
Efficiency,"  Economic  Bulletin  of  Ghana,  Vol.  1  (No.  4),  1971,  pp. 
28-46. 

2 

Ibid . ,  p.  46. 


-  57  - 

by  Robert  Nathan  Associates. 

A  detailed  study  of  the  rate  structure  by  Edward  Vickrey, 
using  Nathan  data,  concluded  that  much  of  the  difficulty  lay  in  the 
use  of  rates  that  were  far  in  excess  of  cost  for  cocoa,  somewhat  exces- 
sive for  logs  and  manganese,  and  far  too  low  for  bauxite  (and 
passenger  traffic).   At  the  same  time,  rates  for  northbound  manufactured 
goods  and  other  imported  goods  were  greatly  in  excess  of  the  appropriate 
cost  figures  on  this  backhaul  traffic,  for  which  only  short  run 
marginal  cost  is  relevant.   Thus  substantial  rate  reductions  were 
proposed;  much  of  the  traffic  loss,  in  Vickrey' s  view,  was  attributable 

to  rates  that  were  far  too  high  relative  to  road  transport  costs  and 

2 
rail  costs . 

What  is  the  long  range  potential?   The  evidence  suggests 
that  on  the  heavy  traffic  Western  line,  rail  costs  (not  existing  rail 
rates)  are  less  than  road  costs;  the  rail  line  should  be  maintained 
and  improved  to  be  able  to  handle  the  available  traffic.   But  the 
Eastern  line  has  so  little  traffic  as  to  be  uneconomic;  all  Kumasi 
traffic  can  easily  be  handled  on  the  Western  line.   The  Central  line, 
despite  low  traffic,  has  greater  future  potential,  in  the  handling  of 
bauxite  to  the  refinery  at  Tema.   The  refinery  has  thus  far  operated 
primarily  with  Jamaican  bauxite,  but  under  the  terms  of  the  agreement 
with  Ghana,  the  company  is  committed  to  phase  in  use  of  Ghanaian 
bauxite. 

There  are  several  related  issues.   Unlike  in  many  developing 
countries,  road  users  as  a  whole  are  apparently  more  than  covering 


"Ttfathan  Consortium  for  Sector  Studies,  Ghana  Railways,  2  vols.  (Accra, 
1970). 

Pricing  Rail  Transport,  op.  cit. 


-  58  - 

road  costs.   But  there  is  little  good  information  on  the  relative 
burdens  on  large  vehicles,  and  there  is  considerable  evidence  that  the 
heavy  lorries  are  causing  substantial  destruction  of  the  roads,  particu- 
larly in  the  handling  of  logs.   Vickery  has  noted,  incidentally  that 
rail  costs  are  artificially  inflated  by  the  success  of  a  strong  union 
in  pushing  up  wages,  although  reduced  somewhat  below  opportunity  costs 
by  exchange  control  regulations.   One  other  problem  of  the  system  is 
the  seasonal  nature  of  the  cocoa  traffic,  resulting  in  need  for  more 
equipment  than  otherwise  would  be  required. 

In  1976  the  Government  of  Ghana  began  to  take  action  to 
improve  the  situation.   The  1976  budget  provided  NC  20  million  (about 
the  same  number  of  dollars  at  current  fixed  exchange  rates)  for  new 
freight  cars  and  engines,  and  the  government  obtained  World  Bank 
assistance  for  a  study  of  transport  requirements.   The  general  philo- 
sophy of  the  government  is  to  retain  the  rail  system,  or  at  least  much 
of  it,  for  the  handling  of  bulk  commodities.   There  is  little  thought, 
apparently,  that  much  of  the  manufactured  goods  traffic  can  appro- 
priately be  returned  to  rail.   The  severe  shortages  of  foreign 
exchange,  however,  restrict  improvements  in  the  system. 

There  has  long  bean  discussion  of  extension  of  the  railway 
about  250  miles  north  from  Kumasi  to  Tamale,  the  major  city  in 
northern  Ghana  and  the  center  of  an  important  agricultural  area. 

Sierra  Leone 

While  other  West  African  commonwealth  countries  have  witnessed 
the  decline  of  their  rail  systems,  Sierra  Leone  has,  under  pressure 
from  the  World  Bank,  phased  out  its  system,  which  consisted  of  311 


SIERRA  LEONE 


Makeni 


FREETOWN 


Fig.  5 

RAILWAYS  IN 
SIERRA  LEONE 


Sierra  Leone  Government  Railway 
2  ' . 6  "  guage  (abandoned) 

Mineral  Railway 
3 '  06"  guage 


0  10  30  40  50 
*-i-j — i a i  .  s 

Miles 


-  59  - 


miles  of  line. 

Construction  started  from  the  Freetown  area  in  1896,  reached 
Bo,  the  second  largest  city,  in  1903,  and  pushed  rapidly  on  to  Baiima 
in  1905  and  Pendembu  in  1908  —  225  miles  from  Freetown.  At  the  time 
this  was  one  of  the  longest  railways  in  Tropical  Africa.   A  branch 
was  completed  to  Makemi  in  1914 . 

The  line  was,  for  economy  reasons,  built  with  35  pound  rail 
to  a  2 '6"  gauge,  miniature  by  any  standards.  Much  of  the  line  traversed 
mountainous  country,  with  numerous  bridges  and  grades.   A  number  of 
Beyer-Garretts  were  used,  the  later  ones  of  66  ton  weight.  Palm 
kernels  and  chrome  ore  provided  most  of  the  traffic.   The  road  was  a 
source  of  operating  losses  over  most  of  its  history.   In  the  period 
1959-1964,  for  example,  the  operating  ratio  averaged  145  —  expenses 
of  operation  were  nearly  50%  greater  than  revenues.   Finally,  under 
strong  World  Bank  pressure  tied  to  grants  for  highway  improvement,  the 
government,  despite  considerable  opposition,  agreed  to  phase  out  the 
system.   This  began  in  1968,  the  main  portion  from  Kenema  via  Bo  to 
Freetown  being  retained  until  late  in  1974. 

Distinct  from  this  line  was  the  52  mile  line  from  a  point  on 
the  river  above  Freetown  to  the  iron  mines  at  Marampa.   The  line  was 
completed  in  1933.     The  closing  of  the  mines,  in  1976  leaves  the 
future  of  this  road  in  doubt. 

A  Note  on  Cameroon  and  Gabon 

Two  ex-French   African   countries  have  major  rail  construc- 
tion projects  underway.   One  is  Cameroon.   The  coastal  portion  of  this 
country  is  highly  mountainous  and  heavily  wooded,  and  construction  is 


-  60  - 

difficult.   The  first  line,  built  by  the  Germans  between  1902  and 
1908,  was  in  the  far  north,  extending  from  the  river  across  from 
Douala  on  the  coast  to  Nkcng^amba,  100  miles.   The  central  line  was 
started  eastward  from  Douala  in  1908,  but  construction  was  stopped  by 
the  war,  and  did  not  reach  Yaounde,  the  capital,  until  1927.   The  two 
lines  were  joined  by  a  bridge  at  Douala  in  1955.   There  had  been  plans 
for  decades  to  build  northward  from  Yaounde,  and  finally,  construction 
began  in  the  mid-sixties.   The  line  is  intended  to  aid  in  opening  up 
the  northern  part  of  the  country,  which  contains  important  mineral 
deposits. 

The  other  major  project  is  in  Gabon,  which  adjoins 
Cameroon  on  the  south.  Work  was  commenced  in  1975,  linking  the  ports 
of  Owendo  and  Santa  Clara  via  Booue'  with  Franceville,  the  location  of 
manganese  deposits.  It  will  also  be  extended  to  Belinga,  location  of 
iron  ore  deposits.  The  line,  ultimately  930  kilometers,  will  cross 
virtually  the  entire  country.  The  portion  to  Franceville  is  expected 
to  be  completed  by  1980,  the  entire  system  by  1985. 

Major  reconstruction  of  the  Congo-Brazzaville  line, 
connecting  Brazzaville  with  the  port  of  Peinte  Noire,  through  moun- 
tainous country,  is  underway  by  an  Italian  firm. 

CONCLUSIONS  AND  POLICY  ISSUES 

Table  5  summarizes  the  traffic  data  of  the  systems. 

The  costs,  converted  to  cents  per  ton  mile,  should  be  regarded 
as  only  very  rough  figures,  because  of  the  artificiality  of  the  rates 
of  exchange  in  many  instances. 


-  61  - 

Table  5 
Summary  of  Traffic  and  Costs 


Ap 

proximate 

Net 

Ton  Miles 

Cost 

per  Net 

Railroad 

Mileage 

Year 

per 

Mile  of  Line 

Ton  Mile, 

000s 

US 

cents 

East  African 

system 

3663 

1975 

731  gross 

2.5 

Nairobi-Mombasa 

330 
530 

8500  gross 

Tanzania  Central 

2700  gross 

Zambia 

650 

1975 

2190 

4.6 

TAZARA  " 

1158 

1977 

20002 

3 
n.a. 

Nigerian 

2178 

1974 

440 

3 

Ghana 

system 

592 

1970 

170 

2 

Western  line 

171 

1000 

other  lines 

421 

45 

Dar  es  Salaam  —  Tabora  portion 

2 
Estimated.   Capacity  is  about  twice  this  great. 

3 
Likely  around  2c.   Existing  road  transport  Zambia  to  Dar 

es  Salaam,  5.3c. 


Conclusions 


Out  of  this  brief  survey,  some  general  conclusions  can  be 
drawn: 

1.   The  volume  of  traffic  on  the  main  lines  —  Mombasa-Kampala; 
Tanzania  Central;  Zambia;  TAZARA,  the  Western  line  of  Ghana  Railways, 
and  portions  of  the  Nigerian  system  —  are  adequate  to  allow  reasonable 
attainment  of  the  economies  from  density  of  traffic.   Studies  in  the 
United  States  indicate  that  much  of  the  economies  are  attained  at 
1  million  net  ton  miles  per  mile  (roughly  2  million  gross),  and  most 
by  2  million,  even  though  the  full  economies  are  not  attained  until 


-  62  - 

traffic  reaches  about  10  million  (20  million  gross) . 

2.  The  cost  per  ton  mile  would  appear  to  be  lower  on  the 
main  lines  than  the  cost  of  heavy  volume  road  transport,  but  the 
latter  has  obtained  substantial  traffic,  partly  because  of  inadequate 
railway  equipment,  partly  because,  of  the  value-of-service  rate  struc- 
tures of  the  railways. 

3.  A  much  better  picture  of  relative  rail  and  road  costs 
will  be  available  after  a  few  years  of  experience  with  TAZARA,  which 
is  replacing  heavy  volume  road  transport. 

4.  There  is  a  substantial  mileage,  in  East  Africa  and  Ghana, 
of  relatively  light  traffic  lines  —  with  traffic  under  100,000  net 
ton  miles  per  mile.   Experience  in  the  United  States  shows  that  such 
lines  have  substantially  higher  cost  than  main  lines  and  that  road 
transport  is  cheaper. 

5.  While  all  of  the  systems  have  survived  dramatic  readjust- 
ments in  recent  decades,  they  have  all  (except  Zambia  Railways) 
suffered  from  general  deterioration  in  the  last  few  years,  for  a 
number  of  reasons:   governmental  emphasis  on  road  development; 
shortages  of  equipment  due  to  lack  of  foreign  exchange  and  governmental 
neglect;  loss  of  traffic  to  road  transport  because  of  obsolete  tariff 
structures  and  other  reasons;  lack  of  trained  personnel  in  some 
instances. 

6.  General  attitudes  toward  the  railways  differ  widely  among 
the  countries,  from  particular  neglect  in  West  Africa  to  strong  emphasis 
in  Zambia.   In  Central  Africa  broadly  defined,  including  Zambia,  Zaire, 
Angola  and  Mozambique,  the  railway  remains  the  dominant  transport 

form,  in  part,  in  some  areas,  because  of  the  lack  of  intercity  roads. 


R.  G.  Harris,  "An  Empirical  and  Institutional  Analysis  of  Excess  Capacity 
in  the  Rail  Freight  Industry",  University  of  California,  Department  of 
Economics  Working  Paper  No.  SL-7602,  Berkeley  1976. 


-  63  - 

7.  The  initial  railway  tariffs  were  designed  to  obtain  as 
much  as  possible  from  "luxury"  imports  and  from  exports  of  primary 
items,  allowing  low  rates  on  exports  of  low-value  commodities  and 
imports  of  items  regarded  as  necessary  for  development.   The  structures 
did  not  universally  favor  exports,  as  is  commonly  argued  —  as  witness 
the  high  rates  on  copper  from  Zambia,  on  cocoa  in  Ghana.   Of  the 
imports,  in  some  instances  particularly  heavy  rates  were  placed  on 
petroleum  products.   One  consequence  of  this  value  of  service  type  of 
tariff  was  to  encourage  loss  of  traffic  to  road  transport  as  roads 
were  built.   Readjustment  of  the  tariffs  in  light  of  changing  condi- 
tions has  been  slow. 

8.  Political  considerations  have  played  a  major  role  in 
railway  development.   As  is  well  known,  the  political  problems  of 
southern  Africa  resulted  in  dramatic  shifts  in  traffic  patterns;  the 
political  difficulties  among  the  three  East  African  countries  have 
seriously  injured  East  African  Railways. 

9.  From  the  various  studies  that  have  been  made,  it  is 
clear  that  the  early  railway  lines  had  major  impact  upon  economic 
development  in  the  countries  and  the  shaping  of  modern  present  day 
locational  patterns:  Nairobi,  in  mary  respects  the  most  important  city 
in  all  tropical  Africa,  owes  its  existence  to  the  railway.   But  there 
is  now  clear  evidence  that  under  present  conditions,  the  building  of 
railway  lines  may  have   little  impact  upon  development,  particularly 

of  agriculture,  since,  on  relatively  light  traffic  lines,  rail  costs 
are  no  lower,  and  may  be  higher,  than  road  transport  costs,  and  road 
transport  is  adequate. 


-  64  - 

10.  The  importance  of  petroleum  products  in  total  transport 
is  phenomenally  high.   The  tonnage  of  petroleum  products  imported  into 
Zambia  by  pipe  line  is  about  the  same  as  all  surface  transport  import 
tonnage.   For  years  East  African  Railways  has  received  about  25%  of  its 
revenue  from  petroleum  traffic. 

11.  Air  transport  of  freight  has  proven  to  be  very  costly, 
and  while  important  in  some  instances  has  not  expanded  rapidly. 

12.  Passenger  traffic  on  the  railways  has  changed  little  in 
recent  years;  loss  of  higher-income  and  tourist  traffic  to  air  and 
road  transport  has  been  offset  by  increased  total  passenger  travel. 
Third  class  dominates  the  traffic  completely  today,  at  fares  that  are 
extremely  low  by  comparison  with  other  countries. 

Major  Policy  Issues 

The  African  countries  face  several  policy  issues  in  the 
transport  field: 

1.  Should  new  rail  lines  be  built?  As  suggested  above,  rail 
lines  are  not  a       magic  solution  to  economic  development;  there 
are  probably  relatively  few  instances  in  which  new  lines  are  warranted. 
One  is  to  allow  development  of  mineral  products  providing  substantial 
volume  of  traffic.   The  other  is  to  allow  better  routes  where  existing 
traffic  is  high  —  as  in  the  case  of  TAZARA  and  possible  connection  of 
Zambia  Railways  with  those  of  Malawi  and  Mozambique. 

2.  Should  existing  rail  lines  be  preserved?   The  answer 
appears  to  be  clearly  in  the  affirmative  so  far  as  the  main  lines  are 
concerned  —  partly  because  costs  are  lower  than  those  of  road  trans- 
port at  existing  levels,  partly  because  failure  to  do  so  would  result 


-  65  - 

in  rapid  destruction  of  the  typical  African  road.   In  other  words, 
there  is  reason  to  believe  that  heavy  road  transport  does  not  pay 
adequately  for  the  damage  it  does  to  roads.   Taxes  on  diesel  fuel  are 
typically  low  under  the  argument  that  low  rates  aid  economic  develop- 
ment.  To  build  roads  adequate  to  allow  heavy  volume  road  transport 
without  prohibitive  maintenance  costs  would  add  tremendously  to 
highway  costs.   From  all  indications,  preservation  and  improvement  of 
the  heavy-density  rail  lines  will  be  much  more  economical. 

Doubt  can  be  raised,  however,  about  some  of  the  longer  light 
traffic  lines,  whose  high  costs  per  ton  mile  raise  overall  costs  and 
drain  the  resources  of  the  railway  system.  But  premature  abandonment 
of  a  line  before  roads  have  been  developed  and  before  opportunities  for 
economic  development  have  been  fully  explored  may  be  even  more  unwise. 

4 

A   substantial  portion  of  the  mileage  may  be  more  or  less 
marginal.   In  comparison  of  rail  and  road  costs  for  purposes  of  deter- 
mining economic  viability  of  these  lines,  it  is  important  that 
true  opportunity  costs,  not  simply  monetary  costs  be  used.   On  the 
one  hand,  costs  for  which  road  transport  is  responsible  but  for  which 
it  does  not  pay  (additional  road  costs  above  those  covered  by  user 
charges),  for  example,  must  be  included.   Relative  drain  on  foreign 
exchange  at  artificially  maintained  exchange  rates  should  be  considered, 
as  well  as  future  relative  energy  costs,  particularly  in  countries 
lacking  petroleum.   The  railway  is  a  more  efficient  user  of  fuel  if 
traffic  is  above  a  relatively  low  level;  if  total  traffic  is  no  more 
than  a  few  cars  per  train,  rcaa  transport  is  more  efficient. 

Another  element  to  consider  is  the  artificial  inflation  of 
railway  wages  in  seme  countries  due  to  strong  unions  and  previous 
holding  of  the  jobs  by  non-Africans.   Road  transport,  especially 


-  66  - 

with  owner-operators,  is  not  subject  to  this  effect.  The  economic 
cost  of  railway  labor  is  not  the  actual  wages  paid  but  the  oppor- 
tunity cost  —  what  these  workers  could  earn  in  another  occupation  — 
and  this  is  often  much  lower. 

3.  When  railroads  are  retained,  how  can  an  optimal  balance 
between  road  and  rail  transport  be  attained?  First,  as  noted,  tariff 
structures  have  resulted  in  uneconomic  diversion  of  traffic  from 
rail  to  road  in  many  instances;  shift  away  from  value  of  service  to 
cost  related  tariffs  is  obviously  required,  as  noted  and  as  is 
recognized  in  most  of  these  countries. 

Secondly,  experience  in  other  countries  suggests  that,  for 
a  substantial  volume  of  traffic,  costs  of  shipping  by  rail  and  road, 
considering  not  only  transport  costs  but  speed,  handling,  and  loss  and 
damage  elements,  are  much  the  same.   Should  governments  seek  to  ensure  that 
this  traffic  moves  by  rail  rather  than  road,  by  restrictive  licensing  or 
other  means,  to  lower  rail  costs  per  ton  mile  and  avoid  deficits? 
There  is  obviously  some  merit  in  doing  so.  But  the  policy  is  difficult  to 
implement  and  can  easily  be  overdone,  forcing  traffic  to  move  by  rail 
when  road  is  far  more  efficient.   In  some  African  countries,  in  which 
much  of  the  traffic  is  controlled  by  marketing  boards  ancl  parastatal 
enterprises,  it  is  relatively  easy  to  ensu      t  this  marginal  traffic 
is  moved  by  rail.   But  in  more  strictly  free  enterprise  economies, 
attempts  to  restrict  road  transport  by  licensing  are  not  likely  to  be 
successful;  the  rules  are  difficult  to  enforce,  and  firms  will  develop 
their  own  road  transport  fleets  —  a  practice  few  countries  seek  to 
curtail. 


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In  general  the  best  solutions  to  reasonably  optimal  division 
of  traffic  appear  to  be  the  following: 

1.  Revision  of  tariffs  to  reflect  cost  rather  than  *alu   oi 

s  i vice 

2.  k   policy  that  all  government  enterprises  use  rail 
rather  than  ro?d  when  costs  ate  comparable 

3.  Establishment  of  reas       weight  limits  on  road  trans- 
port and  enforcement  of  them 

A.  Adequate  charges  on  road  transport  for  road  use 
5.  Outright  subsidy  by  government  of  rail  transport 

in  certain  instances  (to  cover  costs  of  a  line  retained, 
for  example,  Tor  regional  development  purposes,  or  of 
p   .      service  if  the  government  seeks  to  make  cheap 
p;    s    t  sport  aval  lab         C  than  requicing  the 

rail  systems  to  cove      costs  iron  revenue.