Tanzania Transport Master Plan (Vol. 1)

Ministry of Transport
Tanzania
Japan International
Cooperation Agency
Comprehensive Transport and Trade

System Development Master Plan
in the United Republic of Tanzania
-Building an Integrated Freight Transport System-
Draft Final Report

Volume 1
Summary
October 2012
PADECO Co. Ltd.
Nippon Koei Co. Ltd.
International Development Center of Japan Incorporated
Comprehensive Transport and Trade System Development

Master Plan in the United Republic of Tanzania
Draft Final Report

Volume 1
Contents
Volume 2
Current Issues .................................................................................................. 1
1. Introduction ............................................................................................................... 1
2. Economic Development ............................................................................................. 1
3. Ports .......................................................................................................................... 2
4. Roads ........................................................................................................................ 3
5. Railways.................................................................................................................... 3
6. Other Modes and Facilities ........................................................................................ 4
7. Institutional Matters ................................................................................................... 4
8. Transport Demand Forecasting .................................................................................. 5
Volume 3
Master Plan ...................................................................................................... 7
1. Transport Network and Demand ................................................................................ 7
2. Strategy for Freight Transport Development............................................................... 9
3. Port Sector Development Strategy............................................................................ 15
4. Road Sector Development Strategy .......................................................................... 16
5. Rail Sector Development Strategy............................................................................ 17
6. Other Modes and Facilities Development Strategy ................................................... 18
7. Institutional Development Strategy .......................................................................... 20
8. Intermodality of Cargo Transport ............................................................................. 20
9. Master Plan Projects and Priorities ........................................................................... 21
Volume 4
Pre-Feasibility Study ...................................................................................... 25
1. Introduction ............................................................................................................. 25
2. Railway Rehabilitation ............................................................................................ 25
3. Refurbishment of Kigoma Port ................................................................................ 28

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Volume 1
Figures
Volume 2
Figure 2.1
Regional Distribution of Population, 19882002 .................................................. 2
Volume 3
Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5
Figure 2.6
Figure 3.1
Figure 3.2
Figure 5.1
Figure 6.1
Existing Network ................................................................................................. 7

Future Network (Year 2030) ............................................................................. 7
Freight Movement between Regions in 2010 ........................................................ 8
Freight Movement between Regions in 2030 ........................................................ 8
EAC Development Corridors and Tanzania ........................................................ 10
Unit Cost vs Hauling Distance, Comparison between Rail and Road
Excluding Transfer Cost (In the case of Rail Haulage 345,000 tonnes Over
Varying Distances) ............................................................................................. 12
Unit Cost vs Total Haulage, Road and Rail Excluding Transfer Cost................... 12
Growth of Domestic, Import/Export, and Transit Freight .................................... 13
Bagamoyo Development Vision ......................................................................... 14
Four Strategies in Relation to the Measures for OvercomingCurrent Issues ........ 15
Location of Berths 13 and 14 ............................................................................. 15
Location of Proposed New Port at MbeganiBagamoyo ..................................... 16
Track Layout within Kigoma Port ...................................................................... 18
Location Map for Priority Airports ..................................................................... 19
Tables
Volume 3
Table 1.1
Table 2.1
Table 2.2
Table 6.1
Table 9.1
Table 9.2
Table 9.3
Table 9.4
Estimated Modal Share by Corridor, 2010 and 2030 ............................................. 9

Increase in the Share of Central Corridor in Transporting Transit Cargo
to/from Land-locked Countries........................................................................... 10
Inherent Characteristics by Mode as Seen by Shippers ....................................... 11
Summary of OSBP Development in Tanzania ..................................................... 20
Development Expenditure by Sector and Timeframe (2012/132029/30) ............ 21
Summary List of the Projects for the Master Plan ............................................... 22
Development Expenditures under Five Strategies ............................................... 23
Summary of Economic Benefits of Central Corridor for Tanzania....................... 24
ii

Volume 2
Draft Final Report

Volume 1
Current Issues
1.
Introduction
1.1
It is expected that transport demand in Tanzania will more than quadruple over the
next 20 years. How to accommodate such an increase in transport demand is a pressing
issue. It is also important to note that Tanzania has several international corridors
connecting its east coast with neighbouring inland countries, and therefore development
of transport infrastructure has a great impact not only on the Tanzanian economy
but also on economies in the rest of the East African region.
1.2
Thus, Tanzanias Ministry of Transport (formerly the Ministry of Infrastructure

Development) has requested the Government of Japan for support in (i) preparing a
comprehensive transport plan from the viewpoint of streamlining the countrywide freight
transport system, and (ii) conducting feasibility studies to develop necessary transport and
trade systems.
1.3
This study was officially launched by JICA on 12 August 2011 and the first study team
members arrived in Tanzania on 16 August 2011. It is expected that the whole study
effort will be complete by December 2012 except for the Strategic Environmental
Assessment.
2.
Economic Development
2.1
Tanzania is now on a path towards growth, based on continuous policy efforts, such as
those for self-reliance, structural adjustment, and poverty reduction. The national
economy is growing especially through the export of mineral resources overseas and
products to the neighbouring landlocked countries. Taking this opportunity, the
government has embarked on the Tanzania Five-Year Development Plan
2011/122015/16 (FYDP I) to make the countrys growth more sustainable through
improved infrastructure, human resources, and business climate. This plan will be
followed by second and third five-year plans under the Tanzania Vision 2025. This study
will thus be a timely and important input into these five-year development plans.
2.2
A strengthened transport network will contribute to integrating economic activities

that have been dispersed over different parts of the country. It will also contribute to
tapping the vast cultivable lands and mineral resources. This process will result in the
reduction of economic disparities especially between lagging inland areas and the
advanced coastal areas, as well with neighbouring countries.
2.3
Major projects under FYDP I would considerably change the spatial structure of
the national economy if they are realized as planned. Important elements include:
Emergence of the Dar es Salaam metropolitan region as the hub of the national
economy and the gateway to overseas;
Intensive resource-based development, particularly in the Southern Agricultural
Corridor and energy/mineral development in the Mtwara region;
Development of the Central Corridor between Dar es Salaam and Kigoma, not only
for international access but also as a major chain of domestic distribution and
processing; and
Cross-border economic development in specific areas such as Mbeya, Kigoma,
Mwanza, Arusha, and Tanga.

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Mara
Kagera
Mwanza
Arusha
Shinyanga
Kilimanjaro
Kigoma
Manyara
Tanga
Tabora
Singida
Dodoma
Dar es Salaam
Rukwa
Morogoro
Increase of Population
2,500,000
1,250,000
Pwani
Iringa
Mbeya
250,000
1988
Lindi
2,500,000
1,250,000
250,000
2002
Road Classif ication

Ruvuma
Mtwara
Regional Road
Trunk Road
Unit: Person
Source: National Bureau of Statistics
Figure 2.1: Regional Distribution of Population, 19882002
3.
Ports
3.1
Dar es Salaam Port plays an important role as a gateway that handles cargo not only for
Tanzania but also transit cargo for neighbouring landlocked countries. The proportion of
transit cargo within the total cargo amount has been about 35%. The volume of
containerized traffic handled at Dar es Salaam Port increased from 125,000 TEUs in 2000
to 410,000 in 2010, an increase of 3.3 times over the last decade. If the volume of
container cargo continues to increase at a comparable rate, Dar es Salaam Port will reach
its capacity over the next decade, even taking into account the construction of (new)
Berths 13 and 14.
3.2
A new inland container/clearance depot (ICD) is to be constructed at Kisarawe in order to

supplement the storage capacity for containers outside the port due to space limitations.
The new ICD is expected to be linked with the existing lines of Tanzania Railway
Limited (TRL) and the Tanzania Zambia Railway (TAZARA).
3.3
To cope with growing cargo traffic as manifested by the growth of containerised cargo at
Dar es Salaam Port, a new port at MbeganiBagamoyo has been proposed under a public
private partnership scheme.

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3.4
Marine transport on Lake Victoria is important for Ugandan trade, which seeks to secure
access to the Indian Ocean through Tanzania. Mwanza South Port had been providing a
railway connection between Uganda and Tanzania with MV Umoja, a railway wagon
ferry operated by Marine Services Co., Ltd. (MSCL) to Port Bell Port. Similarly, for
Burundi and the DRC, marine transport on Lake Tanganyika was an important trading
route. Kigoma Port used to load and unload significant volumes of cargo to and from the
TRL railway. At present, however, because of the poor performance of TRL, both
Mwanza South Port and Kigoma Port have lost their important role in international trade
with the neighbouring countries. Unless the TRL railway is revitalized, it will be
highly unlikely that Mwanza Port and Kigoma Port will be able to attract transit
cargo.
3.5
Regarding domestic marine transport on the lakes of Tanzania, MSCL monopolizes the
scheduled services on Lake Tanganyika and Lake Nyasa. This is due to the relatively
small demand for cargo and passenger transport on these lakes, which prevents the
private sector from competing with MSCL. Unlike Lake Tanganyika and Lake Nyasa, on
Lake Victoria the private sector actively competes with the MSCL fleet for the
transport of cargo and passengers. This is due to the relatively large traffic demand
on Lake Victoria. As almost all the ships owned by MSCL are of the outdated
cargo-passenger type, MSCL has been losing market share to the private sector,
which is deploying roll-on/roll-off (RoRo) ships for speedy cargo loading/unloading.
4.
Roads
4.1
The team found that road transport is the major mode of transport carrying over 90% of
passengers and over 75% of the freight traffic in Tanzania. Many stakeholders
understand the importance of better roads for improving the national economy.
4.2
However, current data indicate that only 45% of trunk roads and 4% of regional roads are
paved. Although the proportion of paved roads has increased over the years, only 77% of
paved roads and only 45% of regional roads are in good condition, while 17% of
unpaved (trunk and regional) roads are in poor condition. To make road transport more
efficient, the upgrading of existing unpaved roads to bituminous standard is of utmost
importance.
4.3
The Government of Tanzania is well aware of the above facts and has started paving earth
and/or gravel roads and rehabilitating existing surface treated roads in various locations.
The sections that are mostly paved are along the east-west corridors; trunk roads in the
north-south direction are not paved and are under active construction. Pavement work
should be accelerated not only for trunk roads but also for regional roads.
5.
Railways
5.1
The TRL network has a track gauge of 1,000 mm (metre gauge) and comprises of 7 lines
with a total length of 2,724 km. Of this network, three lines are not in operation due to
damage to the track structure caused by flooding. Operating conditions on four of the
lines are generally poor due to a lack of proper maintenance work except the section
where 80 lb/yd rail has been placed. The volume of freight and passengers carried by
TRL has been decreasing sharply. While TRL carried its peak of 1.56 million tonnes in
2003, its freight traffic decreased to 0.25 million tonnes in 2010.

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5.2
The sharp decline in TRLs traffic since 2003 is almost wholly attributable to the severe
shortage of locomotives that has arisen as a result of TRL being deprived of adequate
funds to purchase the spare parts needed to carry out major overhauls of the majority of
its mainline and shunting locomotive fleets. The total number of mainline locomotives
owned by TRL is 44 but the average number of working locomotives is only 12 (an
availability ratio of only 27.3%).
5.3
The Tanzania Zambia Railway Authority (TAZARA) operates a line with a track gauge
of 1,067 mm (Cape gauge) running from Dar es Salaam in Tanzania to New Kapiri Moshi
in Zambia, a distance of 1,860 km, 975 km of which is in Tanzania. Over the last three
years, the total freight tonnage on the TAZARA Line increased from 0.38 million tonnes
in 2008/09 to 0.53 million tonnes in 2010/11 which is only 45% of its peak. However,
there was a substantial decrease in the number of passengers originating at both
Tanzanian and Zambian stations. This is attributable to the shortage of locomotives as
well as to the poor state of the passenger rolling stock.
6.
Other Modes and Facilities
6.1
Air transport traffic at airports of the Tanzania Airports Authority has continuously
increased from 2003 to 2010, both in terms of passengers and aircraft movements, while
the cargo volume decreased over this period. Air cargo tonnage decreased by 3%
between 2009 and 2010. On the other hand, passenger volume increased by 108%
between 2009 and 2010, with increases in international and domestic flights by 112%
and 106%, respectively. The major airports in Tanzania with the highest cargo tonnage
and passenger volume in 2010 were Julius Nyerere International Airport (JNIA),
Kilimanjaro International Airport (KIA), Mwanza, Arusha, and Kigoma.
6.2
Tanzania has three long-distance pipelines as of 2011: (i) the 1,710 km Tanzania
Zambia Mafuta (TAZAMA) Pipeline transports crude oil from Dar es Salaam to the
Ndola refinery terminal in Zambia; (ii) a 232 km pipeline with a submarine part
transports gas from Songo-Songo Island to Dar es Salaam; and (iii) a 28 km pipeline
transports gas from Minasi Bay Field to the power generation facility in the Mtwara
region. In addition, there are 19 short-distance pipelines belonging to oil marketing
companies solely around Dar es Salaam and two more are under construction.
6.3
The Tanzania Revenue Authority is making efforts to improve the efficiency and
effectiveness of cross-border operations under its modernization programme. The
improvement programme consists of several independent projects including one-stop
border posts, improvement of the declaration system, a cargo tracking system, and
capacity development of clearing agents. The targeted efficiency improvements will
reduce the dwell time by half at both airports and seaports by 2013. In addition,
coordinated efforts are proving successful, including improvements in port operations,
telecommunications, bilateral negotiations with neighbouring countries, and data
exchange.
7.
Institutional Matters
7.1
The Public Private Partnership (PPP) Act came into effect in 2009. Should another
railway PPP project be implemented, the guidelines of the Act will be applied, through
clearing many checkpoints, which may be more time consuming. The function of the PPP
experts group with sufficient knowledge and experience will be to respond to various
problems that future projects in Tanzania are likely to face.

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Volume 1
7.2
Different planning frameworks with varying timeframes and sector coverage tend to
result in overly optimistic long-term investment plans that are well beyond the fiscal
capacity. While there have been attempts to bridge such financing gaps such as the
Short-Term Transport Sector Investment Program or STSIP, the overall fiscal planning
framework needs to be further refined, with a view to clearly identifying the necessary
funding for prioritized projects. The funding capability of each subsector also needs to be
scrutinized, taking into account revenue generating capacities. The financial situation
varies by subsector, ranging from the relatively self-sustaining port/aviation subsectors to
the almost moribund railway subsector. While the general direction over the longer term
should be characterized by a greater role for the private sector as sought by the
Government of Tanzania, it is also important to improve the efficiency of budget
execution, as well as to expand both revenue sources (through further efforts for cost
recovery) and funding sources (through new financing schemes).
7.3
The Strategic Environmental Assessment (SEA) Law (CAP.191, 2008) requires that all
master plan development studies conducted in Tanzania obtain approval from the
Vice Presidents Office through the appropriate SEA study and its examination
process.
8.
Transport Demand Forecasting
8.1
In the first step of the transport demand forecasting process, an existing origin-destination
(OD) matrix consisting of 34 zones21 regions in Tanzania, 8 for neighbouring
countries, and 5 areas integrating the rest of the worldwill be formulated based on
bilateral trade statistics. Tanzanias imports and exports will be distributed into regions by
considering regional ratios of socio-economic variables. Furthermore, domestic freight
movement will be estimated referring to the surplus of production and consumption in
each region, and then added to the interregional part of the OD matrix. The result of the
above procedure will be calibrated using the results of an OD interview survey and traffic
count survey. In order to forecast transport demand, the future OD matrix will be
estimated applying the above-mentioned procedure by inputting the future
socio-economic framework. This OD matrix will be distributed to corridors
considering the service level of each corridor.
8.2
A roadside OD interview survey and a traffic count survey were conducted from
mid-September until the end of October 2011. The data entry was completed in
November 2011 and submitted to the JICA study team on 1 December 2011. Since then,
it has been checked by the team. The total number of interviewees was 3,032 or about
22% of the total number of vehicles counted by the traffic count survey conducted in the
same locations. In addition, 68 cargo owners and transport business industries in
Tanzania and 68 in neighbouring countries were interviewed starting in mid-October
2011, and the results were submitted to the JICA Study Team.
8.3
Preliminary analysis of freight movement in the past shows that Tanzanias imports
increased to USD 8 billion in 2010, which was 4.6 times the total in 2001, implying an
equivalent average annual growth rate of 18%. Exports increased to USD 4 billion in
2010, which was 5.3 times higher than in 2001. The annual average growth rate of freight
in terms of volume between 2001 and 2010 for both imports and exports was 13%; the
total volume of imports and exports in 2010 was 7.7 million tons and 2.1 million tons,
respectively. The volume of transit freight was 2.8 million tons in 2010, registering a
share of more than 20% of the total amount of freight crossing Tanzanias borders. About
90% of import freight enters at Dar es Salaam, while the share of Dar es Salaam for

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export freight is only 43%. The share of Namanga and Rusumo is relatively higher for
imports. More than 90% of transit freight passes through Dar es Salaam and Tunduma.

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Draft Final Report

Volume 1
Master Plan
1.
Transport Network and Demand
1.1
The existing network is illustrated in Figure 1.1. The network in the year 2030
showing all network components subject to this Study is presented in Figure 1.2.
Lake Albert
Congo, DRC
Uganda
!
Port Bell
Port Kisumu
Lake Victoria
BukobaKagera
!!
Kenya
MusomaMara
!
Rwanda
Nansio
Mwanza
Bujumbura
Burundi
Shinyanga
^_
Isaka
Kikoma Port
Kigoma
Manyara
Singida
Tabora
Arusha Kilimanjaro
Tanga
Kalemie
Dodoma
!
Lake Tanganyika
!
!
!
Rukwa
Morogoro
Pwani
^_!
Dar Es Salaam
!
Iringa
Transfer facility
Kasanga
Mpulungu
^_!
Mbeya
Itungi
!
!
_
^
Mtwara
Mbamba Bay
Zambia
Legend
Paved Trunk Road
Unpaved Trunk Road
Railway
Waterway
Pipeline
Lindi
Ruvuma
Malawi
Lake Nyasa
Mozambique
Major Airport
ICD/Dryport
!
Monkey Bay
Sea Port
Figure 1.1: Existing Network
1.2
Figure 1.2: Future Network

(Year 2030)
Transport demand pattern was analysed by means of 21 zones corresponding to 21

regions of Tanzania, 8 neighbouring countries, and 5 areas of the rest of the world.
Combining the results of the extensive Origin and Destination survey along with other
surveys and related information obtained from databases such as UN Comtrade database,
movements of freight in 2010 were determined. Future demand was estimated by
assuming GDP growth rates of 5% for all countries (conservative growth case) and 8%
for Tanzania and IMF estimates for other countries (target growth case). Figures 1.3 and
1.4 show projected movements in 2010 and the estimated prospective demands in 2030
under the two cases. By 2030, international transit traffic will grow 3.07 times in the
case of conservative growth and 5.40 times in the case of target growth. Domestic traffic
will grow 4.40 times in the case of conservative growth and 8.00 times in the case of
target growth.

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Source: JICA Study Team
Figure 1.3: Freight Movement between Regions in 2010
Figure 1.4: Freight Movement between Regions in 2030

1.3
A computer model for choice of international corridor and another model for modal
choice were developed for this study taking into account factors that affect the choice,
such as time and cost. Transport demand volumes were estimated by corridor and by
mode. The results were projected traffic volumes on each part of the transport network in
Tanzania.
1.4
As a result of implementing all the projects proposed in the Master Plan (i.e. in the case
of achieving the target growth rate of 8% p.a.), it is expected that the modal share should
be altered as shown in the table below, implying that the railway will be playing a greater
role compared to roads.

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Volume 1
Table 1.1: Estimated Modal Share by Corridor, 2010 and 2030

2010: Estimation
Corridor
Origin Destination
Dar es
Salaam
Corridor
DAR - Mbeya,
Zambia, DRC,
Malawi
Kigoma
Line
DAR - Kigoma,
Burundi, DRC
Central
Corridor
DAR Shinyanga,
Rwanda
DAR - Mwanza,
Uganda
Domestic
Road
Railway
Rail Share
Road
Railway
Rail Share
Road
Railway
Rail Share
Road
Railway
Rail Share
to
DAR
1,705
0
0.0%
473
0
0.0%
575
0
0.0%
1,427
0
0.0%
from
DAR
946
46
4.6%
261
15
5.4%
1,302
62
4.5%
2,146
96
4.3%
Transit
Import
1,324
212
13.8%
512
91
15.0%
199
62
23.9%
19
14
43.2%
Export
89
215
70.7%
69
14
16.6%
11
0
0.0%
0
0
0.0%
Total
4,064
473
10.4%
1,315
119
8.3%
2,088
124
5.6%
3,592
110
3.0%
2030: 'Without' Case (5% Growth)

Corridor
Dar es
Salaam
Corridor
DAR - Mbeya,
Zambia, DRC,
Malawi
Kigoma
Line
DAR - Kigoma,
Burundi, DRC
Central
Corridor
Domestic
Origin Destination
DAR Shinyanga,
Rwanda
DAR - Mwanza,
Uganda
Road
Railway
Rail Share
Road
Railway
Rail Share
Road
Railway
Rail Share
Road
Railway
Rail Share
to
DAR
4,702
0
0.0%
1,596
0
0.0%
3,490
0
0.0%
5,125
0
0.0%
from
DAR
4,398
488
10.0%
1,545
102
6.2%
3,868
424
9.9%
6,368
650
9.3%
Case-1
Transit
Import
Export
3,717
424
10.2%
1,811
389
17.7%
720
269
27.2%
465
413
47.0%
740
709
49.0%
416
86
17.2%
53
2
3.0%
253
25
9.0%
Domestic
Total
13,556
1,622
10.7%
5,368
577
9.7%
8,131
695
7.9%
12,211
1,088
8.2%
to
DAR
4,702
0
0.0%
1,596
0
0.0%
3,490
0
0.0%
5,125
0
0.0%
from
DAR
4,143
743
15.2%
1,459
188
11.4%
3,593
699
16.3%
5,866
1,152
16.4%
Case-2
Transit
Import
Export
3,696
445
10.8%
1,774
426
19.3%
703
286
28.9%
396
482
54.9%
730
719
49.6%
407
95
18.9%
53
2
3.2%
249
29
10.4%
Total
13,271
1,907
12.6%
5,236
708
11.9%
7,839
987
11.2%
11,635
1,663
12.5%
2030: 'With' Case (8% Growth)

Corridor
Origin Destination
Dar es
Salaam
Corridor
DAR - Mbeya,
Zambia, DRC,
Malawi
Kigoma
Line
DAR - Kigoma,
Burundi, DRC
Central
Corridor
DAR Shinyanga,
Rwanda
DAR - Mwanza,
Uganda
Road
Railway
Rail Share
Road
Railway
Rail Share
Road
Railway
Rail Share
Road
Railway
Rail Share
Domestic
to
from
DAR
DAR
7,667
8,162
0
906
0.0%
10.0%
2,727
2,899
0
191
0.0%
6.2%
6,483
6,484
0
710
0.0%
9.9%
8,718 10,697
0
1,092
0.0%
9.3%
Case-1
Transit
Import
6,098
727
10.7%
2,173
417
16.1%
896
335
27.2%
671
596
47.0%
Export
998
1147
53.5%
532
112
17.3%
72
2
3.0%
398
39
9.0%
Total
22,926
2,780
10.8%
8,332
719
7.9%
13,934
1,048
7.0%
20,484
1,727
7.8%
Domestic
to
from
DAR
DAR
7,667
7,689
0
1379
0.0%
15.2%
2,727
2,737
0
353
0.0%
11.4%
6,483
6,022
0
1,172
0.0%
16.3%
8,718
9,854
0
1,936
0.0%
16.4%
Case-2
Transit
Import
6,070
755
11.1%
2,128
462
17.8%
875
356
28.9%
571
696
54.9%
Export
986
1159
54.0%
522
122
19.0%
72
2
3.2%
392
45
10.4%
Total
22,412
3,293
12.8%
8,114
937
10.4%
13,452
1,531
10.2%
19,534
2,677
12.1%
Note:
Case-1: Transport time is shortened with the improvement of the railway operation system and transport cost
is the same as the existing one.
Case-2: Transport time is shortened with the improvement of the railway operation system as in Case-1, and
transport cost is halved from the existing one.
2.
Strategy for Freight Transport Development
2.1
The goal is to establish a network that 1) stimulates the growth of various parts of
Tanzania, and at the same time 2) supports the growth of neighbouring countries as
a regional hub. This goal follows the directions of Vision 2025 for economic growth and
MKUKUTA for social justice. As shown in Figure 2.1, Tanzanias geographical position
in the region and widely spread population and economic activities, which is uncommon
in Africa, makes Tanzania a perfect regional hub.

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Tanga
Dar es Salaam
Nacala
Figure 2.1: EAC Development Corridors and Tanzania

2.2
Strategy 1: Strengthening international corridors and its connection to domestic

transport network
It is important for establishing Tanzanias position in the worlds economy. If all of the
measures included in the Master Plan are implemented, a shift from competing corridors
to the Central Corridor would take place as shown below.
Table 2.1: Increase in the Share of Central Corridor
in Transporting Transit Cargo to/from Land-locked Countries
Country
Uganda
Rwanda
Burundi
Import
Export
Import
Export
Import
Export
Northern
Corridor
(Kenya)
99.3%
100.0%
42.8%
81.4%
9.9%
62.5%
Base Network
Central
Corridor
(Tanzania)
0.7%
0.0%
57.2%
18.6%
90.1%
37.5%
Master Plan Network

Northern
Central
Corridor
Corridor
(Kenya)
(Tanzania)
95.2%
4.8%
86.6%
13.4%
40.8%
59.2%
69.4%
30.6%
9.3%
90.7%
50.7%
49.3%
Note: It is expected that increasing amount of transit cargo to and from Zambia will divert from Dar Corridor to
North-South Corridor, without passing through Tanzania.
2.3
Strategy 2: Developing Infrastructure of Different Modes to Achieve the Optimal

Modal Shares.
Table 2.2 below highlights that the choices of route (corridor) and mode are made by
users (shippers) according to the inherent characteristics of each mode. Figure 2.2 shows
unit transport cost per tonne-km of hauling 345,000 tonnes by railway or by road for
varying distances. As distance gets longer unit cost becomes lower both for railway and
10

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road, but rail transport cost is much lower than road transport for any distance in
Tanzania. Similarly, Figure 2.3 shows unit transport cost per tonne-km by railway or by
road for varying total haulage amounts. Again, rail cost is much lower for any total
haulage amount. To accommodate the range of tonnage in Tanzania as shown in the
figures, the railway needs only the rehabilitation of rail track and rolling stock
strengthening and does not require any new construction. The cost of the existing rail
track is a sunk cost and does not come into the calculation of rail transport cost in the
future, hence the unit transport cost of rail is lower than that of roads even for short
distances or small haulage amounts. For rail transport, however, the cost of transfer of
cargo to and from the rail to trucks or transfer facility that carry it to the final destination
or from the origin such as ports, must be added. Such transfer costs per tonnne-km gets
smaller as distance grows since transfer takes place at both ends only. Including transfer
cost the curves for rail shift upward in Figures 2.2 and 2.3. It is said that railways in
Tanzania can provide transport to shippers at a lower cost than trucks for distances longer
than 400 km. General implications of the comparison below can be summarized as
railways for long distance traffic, roads for shorter and/or higher-value traffic, ports as a
gateway and a transport hub, air transport for very high-value traffic, and pipelines for
seeking economies of scale.
Table 2.2: Inherent Characteristics by Mode as Seen by Shippers
Trip
ConsignTransDamage
Theft
Cost
Time
ment Size
Frequency Punctuality shipment
Risk
Risk
High
Fast
Small
High
Low
No
High
High
Low
Slow
Large
Low
High
Yes
Low
Med
Very
Very
Small
Low
Med
Yes
Low
Low
high
Fast
Pipeline
High
Fast
Large
High
High
Yes
Nil
Nil
Lake
Very
Very
Large
Low
Low
Yes
Low
Med
Shipping
Low
Slow
Note: The above table indicates inherent characteristics of each mode as compared to other modes. In present day
Tanzania, however, some modes are not being operated to provide services with the characteristics shown above. For
example, punctuality and the risk of theft for the railway cannot be said to be superior compared to roads at the
moment.
Mode
Road
Rail
Air
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0.16
0.16
Road Unit Cost
0.14
0.13
0.12
0.12
0.11
US$ per tonne-km
Operating Cost per tonne-km (US$)
0.15
0.14
0.1
Road Transport
0.08
0.06
0.07
0.06
Rail Unit Cost
0.04
0.04
500
1000
Distance (km)
0.08
0.05
Railway Transport
0
0.1
0.09
0.03
1500
500
1000
1500
2000
2500
3000
3500
Forecast tonne-km (million)
(Note: Rail haulage is expected to reach 3.2 billion
Figure 2.2: Unit Cost vs Hauling

tonne-kms by 2030)
Distance, Comparison between Rail and
Figure 2.3: Unit Cost vs Total Haulage,
Road Excluding Transfer Cost
Road and Rail Excluding Transfer
(In the case of Rail Haulage 345,000
Cost
tonnes Over Varying Distances)
Projected increase in railway share will result in the reduction in the total cost (monetary
and time) of transport and the reduction in total emission of CO2 and other harmful gases.
The Julius Nyerere International Airport is indeed a national gateway for both passengers
and freight. No immediate expansion is necessary but a major expansion will be
necessary as the economy grows.
Pipelines should be constructed whenever the hauling volume justifies the shift from
other modes. The TAZAMA pipeline used primarily for transporting crude oil to a
refinery in Zambia would reach its capacity by 2018. Its future will have to be determined
between the governments of Tanzania and Zambia.
2.4
Strategy 3: Meeting Domestic Transport Demand

Planning for domestic transport movements in Tanzania is important for two reasons.
First, Tanzanias population is widely spread out throughout the country, unlike many
countries where the capital city takes a lions share of the national total in population. The
population of Dar es Salaam is only 7.4% of the national total and is likely to remain
around that level. Mwanza region, which is located at more than 1,000 km from Dar es
Salaam, has a larger population than Dar es Salaam. Out of 21 regions in Tanzania, 13
regions have populations more than one half of Dar es Salaam. Such geographic
distribution requires transport far more than a country where the majority of people reside
in primal city. Second, regions which have largely been self-contained including
subsistent agriculture will certainly require more exchanges with other parts of the
country as their economy grow. Conversely, if Tanzanias transport system does not
provide adequate means of exchange between its regions, economic growth of regions
will be suppressed. It has been estimated that domestic transport demand would grow
faster than the international transport demand.
Figure 2.4 illustrates growth of freight volumes for domestic, import/export, and domestic
demand for the case of the target GDP growth rate of 8% per annum. Domestic demand is
and will be much larger than the other two and is expected to grow faster than transit.
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5.000
4.500
4.000
Dar es Salaam Port Container

Cargo Demand Forecast
3.500
1,000 TEU
3.000
2.500
2.000
Capacity
2018
1.500
Scenario
TPMP
High
Low
HPC
Medium
Base
(TPMP Low)
Pessimistic
1.000
500
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
est.
High Forecast
Forecast
Low
TPMP High
TPMP Low
DSM Capacity
Figure
2.4: Base
Growth
ofForecast
Domestic,
Import/Export,
and Transit Freight
2.5
Strategy 4: Alleviation of bottlenecks in Dar es Salaam area

It is also an urgent issue. As the role of Dar es Salaam as a window for the rapidly
expanding Tanzanian economy and land-locked neighbouring economies, the current
capacity of the relevant infrastructure is likely to hit its limitation in the not-so-distant
future. Typical cases are the port of Dar es Salaam and the urban road network
surrounding it. For the port sector, planned expansion of the existing Dar es Salaam port
will not be sufficient by a large margin. Construction of alternative ports must be given a
serious consideration. Selection of a suitable site for the alternative port and detailed
planning of such a port including port infrastructure and supporting facilities are an
urgent task. The idea of developing MbeganiBagamoyo Port City, which has been
promoted by several governmental agencies, is certainly a good candidate for such an
alternative port. For the road sector, congestions within and around Dar es Salaam area
are already beginning to be a bottleneck for the freights going out of Dar es Salaam. To
address this issue, the Master Plan addresses the alleviation of the congestions through
such measures as widening of the existing roads, developing outer ring roads and
bypasses.
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Bagamoyo Development Vision

Large Scale Infrastructure Upgrade Necessary for Mixed-Use Development
Bagamoyo
Mbegani
Railway TRL
Proposed
Rehabilitation
Proposed
Power transmission
Proposed
Gas Pipeline
Proposed New
Railway TRL to
Bagamoyo Road
Bagamoyo (The
route should be Proposed Upgrade
reviewed)
33KVA Power
transmission
Tegete 45MW
IPTL 100MW
132KVA Power
transmission
TENESCO Power
Station 100MW
UTG-6 42MW
Development Diversity
and Industrial Platform
SEZ/EPZ Development must be
Integrated with Mixed Use
Development combining Industry,
Residential, Commercial, Retail,
Entertainment, Tourism,
Institutional components with
essential large scale
infrastructure upgrades.
A7
Railway TRL
Proposed Rehabilitation
Railway TRL Proposed Connecting

Line to TAZARA Railway
& Transit station
16 Gas Pipeline
From Songo Songo
Power
station
Kinyerezi
250MW
Under
Discussion
Proposed Gas
Pipeline From Mtwara
Figure 2.5: Bagamoyo Development Vision

2.6
Strategy 5: A clear regulatory/financing framework should be established. There are

three main components of the framework. First, trade facilitation must be pursued
through streamlining clearance procedures including One Stop Border Post (OSBP), to
overcome existing inefficiencies in cargo inspections/declarations, data tracking/sharing
and payment/settlement of charges. Second, facilitation of private sector participation
should be made in a clear and fair regulatory regime, in order to avoid another failure in
PPP as seen in the case of TRL. Third, the fiscal framework for financing the projects
should be further strengthened, through streamlining the existing multiple planning
frameworks, as well as clearly identifying the financing sources.
2.7
These strategies, in relation to the current sectoral issues (detailed in Chapter 5

through 9) along with the suggested measures to address them (primarily in Chapter 10),
are summarized in Figure 2.6. While the Strategies 2 through 4 are more
solution-oriented which closely relate to the outstanding issues such as the existing
opportunity losses, capacity limitation and institutional inefficiencies, Strategy 1 is
vision-oriented to further strengthen the role of Tanzania as a regional transport hub. In
the following chapters, the relevant issues and solutions are examined towards the Master
Plan.
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Geographical advantage as a regional transport hub
Goals
Strategies
Stimulating
the growth
of Tanzania
Supporting
the growth
of
neighbourin
g countries
Measures
Issues
1. Strengthening
International
Corridors
Strengthening the
road network
Missing connection between

population centers
2. Comprehensive
Transport Network
Revitalizing railway network
Opportunity cost due

to under utilization of railway
network
3. Meeting Domestic
Transport Demand
Increasing port/
road capacity
Capacity limitation
(port & road)
in DSM area
4. Alleviation
of Bottlenecks
in DSM Area
Ensuring clearer regulatory

framework
Regulatory
environment not fully
supportive for investors
5. Clear
Regulatory/Financing
Framework
Streamlining planning
framework
Fiscal inefficiencies raising

financial costs
Figure 2.6: Four Strategies in Relation to the Measures

for Overcoming Current Issues
3.
Port Sector Development Strategy
3.1
Construction of new container berths 13 and 14 will start in 2012 and completed in three
years. Dar es Salaam port will expand its capacity to 1.2 million TEU per year; it is
expected that demand will exceed this capacity as early as 2018. An Inland Container
Depot at Kisarawe should be built to support Dar es Salaam port under the expanded
capacity.
Source: TPMP
Figure 3.1: Location of Berths 13 and 14

3.2
A new major port must be built to accommodate the rapidly growing container traffic that
cannot be handled by Dar es Salaam port alone. The new port should be able to
accommodate larger ships, resulting in lower shipping rates. The site for the new port
currently chosen is MbeganiBagamoyo, an environmentally sensitive area. The process
of Environmental Impact Assessment should be initiated as soon as possible.
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Source: Final Report of the Feasibility Study for the Proposed Port at MbeganiBagamoyo
Figure 3.2: Location of Proposed New Port at MbeganiBagamoyo

3.3
A new port at Mwambani, to replace congested and limited Tanga Port, is being proposed.
Major expansion of Mtwara Port, in the area of major agricultural and natural resource
potential, is being proposed. Both projects are worth implementing when demand justifies
its construction. For the latter, however, off-shore gas exploration and production may
force its development sooner than expected.
3.4
For Lake Victoria the following are the recommended strategies: 1) TPA to meet the
transit cargo demand to Uganda on Dar es SalaamKampala International Corridor
by refurbishing Mwanza South Port, 2) TPA to encourage the private sector to provide
more services to towns and villages which are not accessible by road, 3) SUMATRA to
continue regulating lake transport to ensure navigation safety, as private sector may
compete each other to the extent of neglecting safety, and 4) MSCL to provide services
on the route for which private sector cannot compete.
3.5
For Lake Tanganyika the following are the recommended strategies: 1) TPA to develop
Kigoma and Kasanga as international trade ports, 2) TPA to ensure lake transport as a
lifeline to supply a necessary amount of consumers goods and food stuff for the
people who are living on the eastern shore of the lake, and 3) MSCL to improve lake
transport for convenience of the people living on eastern shore of the lake.
3.6
For Lake Nyasa the following are the recommended strategies: 1) TPA to ensure lake
transport as a lifeline to supply a necessary amount of consumers goods and food
stuff for the people who are living on the eastern shore of the lake and 2) MSCL to
improve lake transport for convenience of the people who are living on the eastern
shore of the lake.
4.
Road Sector Development Strategy
4.1
Strengthening of road network should be done so that by 2030, the paved portion of the
trunk road will increase from 45% to 100% and that of the regional road from 4%
to 45%. Some shortcut links for the trunk road network should also be constructed so that
all regional centers are connected by paved roads.
4.2
Capacity and service level of the road network should be improved by: 1) widening
existing trunk roads to absorb increased traffic in the future; 2) congestion relief in the
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urban road network such as in Dar es Salaam; 3) congestion relief near major cities; and
4) providing road service facilities along trunk roads for convenience and comfort of
drivers and safety of traffic.
4.3
Road network development should be coordinated with other modes of transport by

means of: 1) coordinated development with ports and railways; 2) access roads for a new
development area; and 3) improvement of vulnerable road sections.
4.4
In addition, access controlled expressway network can be introduced within the time
frame of this Master Plan. A nation-wide expressway network plan, as well as an urban
expressway network in Dar es Salaam area can be sought in line with the existing plans.
5.
Rail Sector Development Strategy
5.1
Railway strategy in the short term must focus on the repair and rehabilitation of the
rail systems, in order to restore services to their previous level and to re-capture traffic
lost to roads. Once the railway systems have restored their former service levels and have
resumed traffic growth, they can begin during the medium term (20182022), to optimize
their use of track capacity and reduce their unit operating costs by increasing train lengths
and locomotive haulage capacities. For the long term, such as the construction of new
railway links like one from Isaka to Rwanda and Burundi, is affected by: 1) the prospect
of sufficient freight tonnages to generate enough net revenue to offset the large scale
associated investment; 2) the engineering problems and cost associated with construction
of new railway lines through mountainous terrain (possibly involving construction of
numerous tunnels and bridges in order to maintain a ruling gradient of 1%); and 3)
consideration of a policy to construct all new lines in standard (1,435 mm) gauge.
5.2
Construction of standard gauge track in Tanzania will require replacement of

structures at 1600 locations for TRL alone. It would cost USD 3 million per km in flat
terrain and much more in mountainous terrain, such as in the area between Isaka and
Rwanda/Burundi. A rehabilitated TRL system can transport 10 million tonnes or more. In
South Africa a Cape gauge line transports 88 million tones. Freight trains in Japan on
Cape gauge run at 110120 km/h. There is a lot of potential in existing railway systems in
Tanzania even without converting to standard gauge. It makes much more sense to
rehabilitate the existing rail systems in Tanzania and realize its potential instead of
introducing the standard gauge system at high cost for some time to come.
5.3
For the short term for TRL are: 1) improvement of existing locomotive availability
and supply; 2) improvement of existing wagon availability and supply; 3) Central Line
track renewal and realignment to increase service speeds; 4) Central Line bridge and
structure rehabilitation (Phase 1); 5) reform and improvement of track maintenance
practices and standards (incl. rehabilitation of track maintenance equipment); 6) skills
improvement and training; and 7) conduct study of Arusha Line rehabilitation
(considering possibility of standard gauge).
It was reported recently that Stanbic Bank (Tanzania) and International Commercial Bank
of China (ICBC) secured syndicated financing worth USD 3 billion for Mchuchuma Iron
Ore and Liganga Coal mining project in Ludewa District. Since those mining reserves are
located along the planned Mtwara line, thus construction of the new line may be
accelerated.
5.4
For the medium term for TRL are: 1) increase siding and train lengths on existing
network; 2) transportation nodes: railway-highway and railway port (track layout within
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Kigoma Port is shown in Figure 5.1); 3) completion of track renewal and realignment
(sections other than Central Line); 4) completion of bridge and structure rehabilitation
(sections other than Central Line); 5) rehabilitation of Arusha Line; 6) improvement of
signaling and telecommunications system (installation of GPS based system); 7)
procurement of new locomotives (1618 tonne axle load) to sustain traffic growth; 8)
procurement of new design freight rolling stock; and 9) new line construction to
Bagamoyo New Port in parallel with new port construction.
5.5
For the long term for TRL are: 1) procurement of new locomotives (1618 tonne axle
load); 2) procurement of new design freight rolling stock; 3) New Line construction to
Rwanda and Burundi; and 4) rehabilitation of Arusha Line and Extension Plan to
Musoma.
5.6
TAZARAs short-term business plan between 2011 and 2014 involves a doubling of
freight tonnage and tonne-km and a tripling of passenger numbers and passenger-km.
While rolling stock acquisition plans are essentially fully funded from own resources and
the 14th Protocol with China, planned line improvement shows a funding gap of more
than USD 67 million., as well as a gap of nearly USD 48 million for signaling and
telecommunications. Given nominal line capacity of at least 5 million tonnes, the
short-term traffic targets are not unrealistic.
5.7
The most likely long-term development (possibly after 2030) would be to extend the
TAZARA network to connect with agricultural zones between Mbeya and Lake
Tanganyika. This would require a decision of the two owners to shift TAZARA from its
historical and current emphasis on transit traffic to an expanded role in the movement of
traffic within Tanzania.
Figure 5.1: Track Layout within Kigoma Port
6.
Other Modes and Facilities Development Strategy
6.1
Tanzania Airports Authority has prepared a development plan for airports in

Tanzania for the period from 2011/2012 to 2029/2030. Although cargo terminal does not
command high priority, the plan nevertheless lists projects for cargo handling facilities at
each of the major airports under its responsibility. First priority is given to airports of Dar
es Salaam, Kilimanjaro, and Mwanza and the second priority airports are Kigoma,
Songwe, Mtwara and Bagamoyo. Mwanza airport is located in the area with the second
largest population in Tanzania but has no cargo terminal facility. The study team prepared
preliminary requirements for a cargo terminal at Mwanza airport. Locations of
priority airports are shown below.
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Mwanza
Kilimanjaro
Kigoma
Bagamoyo
Dar es Salaam
Songwe
Mtwara
- First priority airports

Source: JICA study team
- Second priority airports
Figure 6.1: Location Map for Priority Airports

6.2
An energy master plan of Tanzania will soon be issued by the government. Future
pipeline projects will have to be in line with the master plan. Except for the 1,710 km
Tanzania Zambia Mafuta (TAZAMA) Pipeline, jointly owned by the Government of
Tanzania and the government of Zambia, other pipelines have been constructed and
owned by the private sector. This government policy is not likely to change. TAZAMA
Pipeline will reach its capacity in around 2018. A decision will have to be made on the
future of TAZAMA pipeline in the near future. A project to construct an oil refinery
near Dar es Salaam and transport its products to inland population centres for long
distances by pipelines is being proposed by a private concern. New gas pipeline projects
are also being floated in relation to the recently discovered off-shore gas fields. All such
projects should be assessed against the energy master plan and policies towards them
should be determined.
6.3
Projects to dramatically reduce non-tariff barriers at international borders by means of

implementing One Stop Border Post (OSBP) are underway at many border points of
Tanzania. Most of them are funded by donors as shown in Table 6.1. It is not unrealistic
to expect that the border crossing time would be less than half of current levels in a few
years time. Continuous effort should be made to achieve the goal in actual operation and
the Strategy 1: Strengthening international corridors.
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Table 6.1: Summary of OSBP Development in Tanzania
Name
Sirari
Neighbour
Kenya
Namanga
Kenya
Holili
Kenya
Horohoro
Kenya
Tunduma
Zambia
Kabanga
Burundi
Rusmo
Rwanda
Mutukula
Uganda
Status
Now under construction and hand-over
of facility will be in October 2012.
Complete 2013/3
Approx. USD 10 mil for OSBP
Part of Road Improvement Program
Site survey & selecting consulting
engineer.
Temporary OSBP at Kobero
Scheduled to complete in 2014
3 components 1) OSBP, 2)Bridge,
3)Hydro Power station
Bilateral
Agreement
Now in
prepared and
effective by EA
Act of OSBP
expected soon
in 2012
Yes
June, 2012
Yes in Oct.
2011
Yes
EA Act of
OSBP
Fund
WB
(USD 4 mil)
JICA
AfDB
(USD 10 mil)
TMEA
(USD 4 mil)
WB
(USD 4 mil)
TMEA
(USD 6.5 mil)
TMEA
JICA
TMEA
(USD 4 mil)
7.
Institutional Development Strategy
7.1
Trade facilitation measures are being pursued in Tanzania, particularly by Tanzania

Revenue Authority (TRA). Work is underway to replace ASYCUDA (a software for
international trade duty taxation, approval, and recording) with a New Customs
Automated System. Tanzania Port Authority is organizing the Port Community system
(PCS) and establishing National Single Window (NSW) system. When implemented,
these systems will greatly reduce the time required for shippers to go through ports and
border points. Capacity development of institutions and their officials should be done at
the same time.
7.2
To further encourage private sector participation, the regulatory structure and incentive
mechanisms need to be further refined to clearly identify the private sectors role, under
the public support for the parts which are not commercially viable. In identifying such
areas, it is important to consider infrastructure development within the bigger picture of
the national/regional economic development through close cooperation across ministries.
For attracting more investment from outside, it is also recommended that the remaining
regulatory/administrative ambiguities be removed for EPZ/SEZ operations (e.g. foreign
ownership, profit repatriation).
7.3
To ensure the financial viability of this master plan through minimizing existing
inefficiencies, four measures are proposed: 1) Further aligning the different fiscal
planning frameworks with overlaps and inconsistencies, 2) Additional efforts toward cost
recovery in each subsector, 3) Diversifying/expanding the revenue source of GOT (e.g.
better capturing tax revenues, revenues from natural resource development), and 4)
Further expanding the financing sources (e.g. developing investable products, greater role
of the private sector).
8.
Intermodality of Cargo Transport
8.1
Each international corridor passing through Tanzania is composed of several transport

modes, namely road, railway, waterway and by pipeline. Each connection points need the
facilities for the transfer the cargos. This is the main reason why the transport cost will
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8.2
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possibly increase for poor transport intermodality or possibly be reduced with effective
transport intermodality.
In case of liquid bulk (fuel) transport, railway transport should be promoted between two
fuel storage tank yards which are distant from each other and connected by railway. The
promotion should particularly be implemented between Dar es Salaam and Kigoma, from
where fuel can be re-exported to Burundi, Rwanda, North-eastern part of DRC by a
tanker boat via Bujumbura Port or Kalundu Port. Consequently, the growth of their
economies can be promoted. The facilities needed for transport intermodality of fuel at
the railway shunting yard and loading facilities at the oil jetties on Lake Tanganyika can
be rehabilitated by the private sector or their own money once the reliability of the
railway performance is recovered.
8.3
In the case of container transport, the public sector should be responsible for
implementing several projects to facilitate the intermodality. Institutional deregulation is
indispensable to encourage the multimodal transport operators to effectively use inland
container depots and dry ports. Provision of cargo clearance and customs clearance at
Isaka Inland Container Depot and Mbeya Dry Port and upgrading of their cargo handling
facilities are considered very effective to reduce the container transport cost not only for
domestic transport but also for international corridor transport. Container terminals at
both Mwanza South Port and Kigoma Port should be developed and equipped with proper
container STS cranes and other handling equipment. The container terminal at Mwanza
South Port can make the Central Corridor compete in cost with the North Corridor and
that at Kigoma Port can promote economies of Burundi, Rwanda and North-eastern part
of DRC by reducing the price of their import and export goods.
9.
Master Plan Projects and Priorities
9.1
A summary of the budget needed to implement all the projects proposed in this freight
transport development master plan is shown in the table below. Short term refers to
20132017, medium term refers to 20182022, and long term refers to 20232030.
Table 9.1: Development Expenditure by Sector and Timeframe (2012/132029/30)
18,025
51
100 (%)
11,408
1,430
100
30,024
(Total)
3,318
22,354
100
11,092
6,190
100
7,020
376
(Tsh bill.)
3,918
20.6
14,148
74.5
905
4.8
32
0.2
19,003
100.0
2,100
100
14,324
(Long)
3,318
12,682
US$ mil.)
100
6,932
1,266
26.3 56.7 20.5 (%)
4,388
16
(Tsh bill.)
801
8.8
8,027
88.5
238
2.6
0
0.0
9,066
100.0
2,100
0.0
463
31.5 31.3 32.4 24.1 57.8 (%)
9,443
(Mid)
0
5,389
US$ mil.)
100
Pipeline
35
3,575
61.5 100 47.7
Rail(*)
6,257
(Short)
0
591
(Tsh bill.)
2,263
37.9
3,411
57.1
293
4.9
10
0.2
5,976
100.0
0
0.0
Airport/ Air
Transport
(Sub Total)
(%)
4,283
US$ mil.)
(1US$ = 1,580Tsh)
Total
Long Term
38.5
Rail
1,349
20.8 68.8 41.3 19.2 21.8 (%)
Road
(Tsh bill.)
854
21.6
2,711
68.4
374
9.4
22
0.6
3,960
100.0
0
0.0
Port
US$ mil.)
Mid Term
0.0
Sector
Short Term
Notes: 1. (*) Includes a new railway construction between Isaka and Kigali with a branch line from Keza to
Musongati.
2. Construction of a new railway line between Arusha and Musoma is not included.
9.2
Projects included in this master plan are listed in the table below, grouped by the three
planning periods of short, medium, and long term. Each project has been evaluated
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with its economic and social/environmental impacts, as well as with the evaluation of
the corridor it belongs to. The corridors are listed in accordance to the scores obtained
through separate evaluation for the nine corridors identified by EAC. (i.e. A corridor with
higher evaluation comes to the left.)
Table 9.2: Summary List of the Projects for the Master Plan
Air
Inland
Port
Sea
Port
S17
S18
M4
S1
S3
S4
M1
L1
L2
S5
S6
M2
L3
M3
M4
S8
S9
S10
S11
S12
S13
S14
S15
M5
M6
M7
M8
M9
M10
Road
M11
JNIA Cargo Tmnl

Mwanza AirPt Cargo Tmnl
KIA Cargo Tmnl
Refuebish Kigoma Tmnl
Community Service P/J
Kasanga Pt (1)
Kasanga Pt (2)
Musoma Pt Container Tmnl
Kasanga Pt (3)
Container tmnl berths @DSM
ICD @Kisarawe
Mbegani Bagamoyo Pt
Mwambani Tanga Pt
Expansion of Mtwara Pt
Kimara-Chalinze
Widening of Bagamoyo Rd
KibaoniMpanda
Kidahwe-Kanyani-Kasulu
Mbinga-Mbamba Bay
Bagamoyo-Mlandizi
Outer Ring Rd (1)
B+
AA
B
AAA
C
A
C+
C
B
C
B+
B+
B+
C
C
C
B+
C
C
B
B
B
B
B
B
C-
B+
B-
B+
B+
C
C
AB+
B+
B+
B+
B+
B+
B
C
C
C
C
C+
B-
B-
Rehabil/improvement of track & bridges
Rehabil/improvement of track & wagons
Procurement/rehabil of locos & wagons
C+
B-
L14
Bagamoyo Pt connection
B
B
B
L8
L9
L10
L11
L12
L13
Mtwara
A
C
C
L7
Tan-Moz
Kasulo-Rusumo & BugeneMurongo Bugene-Kikagati Rd

Tabora-Koga-Mpanda Rd
Chunya-Rungwa-Itigi-Mkiwa Rd
Hendeki-Kiberashi-KwamtoroSingida Rd
Bagamoyo Expwy
Outer Ring Rd (2)
Urban Expwy
Expwy DSM-Chalinze
Expwy Chalinze-Morogoro
Expwy MorogoroDodoma
Arusha-Moshi-Himo Junction
Dual Carriageway
Sirari
Chalinze-Morogoro
Kibaoni-Mpanda-Kanyani
Kigoma-Nyakanazi
Kidahwe-Ilunde-MalagarasiKaliua
Manyoni-Itigi-Tabora Rd
Makutano-Mugumu-Loliondo-Mto
wa Mbu
Namanga
Coastal
Sumbawanga
Ubungo-N.Mandela Flyover
L5
L6
Rail
C
C
C
C
B
A
B
C
BA
C
L4
S16
M15
L12
S16
M15
L12
S16
M15
L12
M13
Long-Term
DSM
Medium-Term
Tanga
Short-Term
Corridor
Central
P/J
No.
Social/
Environmental
Sector
Impact
Economic
Projects
Notes: 1. Project numbers correspond to the ones in detailed analysis in Chapter 11 of Volume 3, with S, M and
L standing for short, medium and long terms, respectively.
2. Grades in the Impact column are based on the scoring in Chapter 11. The grade can take A, A-, B+, B, B-,
C+ and C.
3. For ease of interpreting the results, As in the Impact column, as well as the checks in the top three
corridors in the Corridor column are shaded dark, while Bs in the Impact column and the second tier
three corridors are shaded light.
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9.3
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Volume 1
According to the combination of all of these factors, the projects have been grouped into
four categories:
1) Projects with relatively large economic and social/environmental impacts (B or
above) and, at the same time, belong to the corridors with higher evaluation (top
three), can be given higher priority when allocating fiscal resources,
2) Projects with large economic impact along the highly evaluated corridors, but
with low social/environmental contribution (C+ or below), need to be
implemented with maximum consideration for social and/or environmental impacts,
3) Projects with large social/environmental contribution along the highly evaluated
corridors but with low economic impact, may require commitment to allocate the
fiscal resources to cover relatively small economic impacts, and
4) Projects along the second tier corridors, but has relatively large economic and/or
social/environmental impacts, may fall behind in terms of the priority, and needs to
be implemented depending on the balance between fiscal and institutional capacity.
5) Looking at the projects through their relevance to the five strategies detailed above,
(Table 9.3)1, Strategy 3 has the largest investment, due mainly to the road sector,
which accounts for 90.6%. This is followed by Strategy 1, of which the road and sea
port projects account for 54.6% and 29.6%, respectively. Third largest group is
Strategy 2, of which the sea port projects occupy the largest share of 70.0%,
followed by the railway projects at 17.4%. This is followed by Strategy 4, again with
the road (62.8%) and sea port (28.5%) projects accounting for the majority.
Table 9.3: Development Expenditures under Five Strategies
Unit:(Unit:
USDUSDmn)
million
Inland
Port
121
121
3
Strategy
1 Strengthening international corridors
2 Establishing a comprehensive transport network
3 Meeting domestic transport demand
4 Alleviation of bottlenecks in DSM area
5 Clear regulatory / financing framework
60
Sea
Port
1,920
3,524
524
674
Road
Rail
Air
Total
3,542
480
13,471
1,485
875
875
875
191
32
32
6,490
5,032
14,872
2,365
60
15
9.4
Another critical aspect in prioritizing the actions is the project timeframe. Particularly, the
framework should include: 1) Actual implementation of the short term projects for
immediate effects, 2) Refining the design of the medium term projects for future
implementation, and 3) Drawing a ground design of the long term projects for facilitating
future development. For 1) and 2), project prioritization through the aforementioned
scoring can be fully utilized as a guide in order to streamline and rationalize the decisions.
For 3), not only the design of the physical infrastructure but also the institutional
underpinning to facilitate the overall development process should be critical.
9.5
The Central Corridor is a critical logistics corridor in Tanzania which links the Port of
Dar es Salaam to the neighboring countries of Uganda, Rwanda and Burundi. The master
The aggregate numbers for different strategies include overlapping projects, since the projects classified into more
than two strategies are double (or even triple) counted.
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Volume 1
plan projects on the Central Corridor have significant economic implications for the
region, and its economic benefits have been analyzed as follows.
1. Net Benefit realized from each short, medium, and long term project on the Central
Corridor is the net of benefits realized from time and transport cost savings and the
investment costs of each project along the corridor
2. Consumer surplus in Tanzania is the consumer surplus derived from the decrease in
transport unit cost and increase in transport volume along the Central Corridor
3. Other benefits (increased economic activity) are the benefits from the Master Plan
projects along the Central Corridor other than those indicated in 1 and 2 realized in
Tanzania
4. Total impact on GDP is the increase in economic volume from the Master Plan
projects attributed to the Central Corridor
5. Total benefits for the neighboring countries of Uganda, Rwanda, and Burundi include
the consumer and suppliers surplus realized from the decrease in transport unit cost
and increase in transport volume
The economic benefits quantified from the analysis are summarized in Table 9.4.
Table 9.4: Summary of Economic Benefits of Central Corridor for Tanzania
Million USD
Sum Method
2030
2050
Tanzania
1 Net Benefit
2 Consumer Surplus
3 Other Benefits (Increased Economic Activity)
4 Total Impact on GDP
Other Countries
5
Uganda Total Economic Benefits
6
Rwanda Total Economic Benefits
7
Burundi Total Economic Benefits
7,563
318
4,841
12,731
1,926
665
474
24
115,858
-
NPV Method
2030
2050
488
2,141
2,270
-

Volume 4
Draft Final Report

Volume 1
Pre-Feasibility Study
1.
Introduction
1.1
Based on the following criteria, the pre-feasibility study has been conducted during the
months of June 2012 through September 2012.
1)
2)
3)
4)
5)
1.2
The study can be completed within the time and the budget available.
The project(s) lead the direction of freight transport development in Tanzania.
The project(s) can be implemented in the immediate future to lead the development
direction.
The project(s) should be of appropriate size, in terms of funding requirement, so that
the fund can be secured in a short time.
No feasibility study has been done yet.
The following two projects were selected as satisfying all the criteria above.
1)
2)
Short Term Strengthening of Tanzania Railway Limited

Rehabilitation/re-manufacturing of 17 units of Class 88 and 89 locomotives
Track rehabilitation between Tabora and Kigoma, including reinforcement or
replacement of bridges and culverts
Rehabilitation of container facilities within Kigoma Port including track
structure and quay
Refurbishment of Kigoma Port
2.
Railway Rehabilitation
2.1
It was revealed through the master plan study that revitalization and rehabilitation of the
railway system will be one of the major keys of the development of transport and trade
system in Tanzania. Among those projects planned for the revitalization of the TRL
railway system, the following three projects are selected for the pre-feasibility study as
urgent projects which are recommended to be carried out in the Short Term;
Rehabilitation/re-manufacturing of diesel locomotives

Rehabilitation of bridges and structures between Tabora and Kigoma
Rehabilitation of track structure between Tabora and Kigoma
All three are intended for implementation during the short term timeframe identified for
the Master Plan, i.e. 20132017. Since they are critical for the restoration of freight
transport services on the Central Line (following the failure of the RITES operating
concession and the sharp decline in railway transport volume on the TRL network), their
implementation is considered urgent.
The short supply of locomotives on the TRL system has already been identified in the
Interim Report as the predominant reason for the sharp decline in rail freight transport
volume, from a peak in 2003 of 1.56 million tonnes to a low in 2010 of 256,200 tonnes. It
is clear that the severe shortage of locomotives has arisen as a result of TRL being
deprived of adequate funds to purchase the spare parts needed to carry out major F
overhauls on its mainline and shunting locomotive fleets. As a result, TRL has had to
defer overhauls for the majority of its mainline and shunting fleets, leading to
unacceptably high rates of in-service failure and poor rates of availability. The lack of
locomotives for revenue-earning service has in turn resulted in train cancellations and a
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loss of customers, many of whom have had to invest in trucks in order to meet their
transport needs.
2.2
Currently, the number of mainline locomotives available for traffic each day averages
only 12 units, out of a fleet numbering 44 units (27%). This poor availability does not
indicate the excessive rate of in-service mechanical and electrical failures which
frequently causes trains to become stranded in the middle of block sections, with the
result that they delay other traffic. This then reduces the prevailing schedule speed to a
level at which freight haulage capacity is severely reduced. The current schedule speed on
the TRL system is only 14 km per hour, consistent with an annual freight haulage volume
of no more than about 285,000 tonnes per year.
2.2.1 The primary purpose of the rehabilitation initiative now being proposed for JICA
assistance is to channel investment into the rehabilitation of the mainline locomotive fleet,
so that the supply of serviceable locomotives can be guaranteed and freight tonnages can
be restored to previously achieved levels. This will be achieved in two ways: 1) through
the purchase of spare parts to allow the overhaul of six Class 88 locomotives which are
currently operating but in very poor condition (owing to deferred overhaul), and 2)
through the re-manufacturing of an initial batch of six Class 88 locomotives which are
currently defective and out of service.
2.2.2 Approximately 90% of bridges and culverts between Tabora and Kigoma were
constructed 100 years ago by Germany with a design axle load of 10 tons or 12 tons. The
structure condition survey carried out from June 29 to July 10, 2012 found that many of
those structures are severely weathered and deteriorated already. In the case of rolled
beams encased in concrete-type of small bridges, encased steel beams are exposed and
severely corroded. Those structures judged in class D and E shall be replaced. Prior to the
rehabilitation of track structure, bridges and culverts shall be rehabilitated or
re-constructed because the construction will be difficult and more costly after new CWR
(continuous welded rail) is placed.
2.2.3 The existing track between Tabora and Kigoma was built from 1912 to 1914 by Germany
using 56.12 lb/yard rail, steel sleepers, and fish-plated rail joints. Because of long time
usage, the rail head is worn out and many fish bolted joints are loose already.
Rehabilitation of the track at this section means the replacement of existing track
structure with 80 lb/yard rail with new steel sleepers. The new 80 lb/yard rail shall be
welded to form CWR (continuous welded rail)
2.3
Considering the available time for the survey work (2 weeks approx.), survey area
(TaboraKigoma: 411 km) and the number of structures to be investigated (318 locations
shown on the RAHCOs list), an inspection trolley was used for the transportation by the
survey team. Since there are 6 unlisted bridges/culverts on RAHCOs inventory, the
actual number of structures between Tabora and Kigoma is 324. The dominant structures
are rolled beams encased in concrete (71.6%) and arch bridge (13.0%). All structures
are classified in to 4 categories; namely, Category A: Sound condition, Category B:
Minor repair/reinforcement required, Category C: Major repair /reinforcement required,
and Category D: Reconstruction required. Among 324 bridges/culverts, 33 structures
(10.2%) are classified as A, 46 structures (14.2%) are classified as B, structure classified
as C is zero, and 246 structures (75.6%) are judged in poor condition and required
re-construction. Considering the size of existing bridge structures, replacing those small
bridges with pipe culverts or box culverts is recommended. The total number of pipe
culverts will be 110 (45.1%), that of box culverts will be 127 (52.0%), steel girder bridges
will be 7 (2.8%).
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Volume 1
2.4
The whole track structure between Tabora and Kigoma shall be rehabilitated. If the
condition of salvaged track materials, 56.12 lb/yard rail and steel sleepers, are in good
condition, those materials can be used for Mpanda line, replacing 45 lb/yard and 50
lb/yard rails with 56.12 lb/yard rail. Then, the heavier 88 class locomotives will be able to
go to Mpanda, instead of lighter 78 class locomotives. The salvaging of track materials
shall be carried out carefully not to give damage to those materials.
2.5
The total number of structures to be reconstructed between Tabora and Kigoma is 244.
Because of the condition given by TRL that the train operation shall not be interrupted
during construction, precast segmental method will be applied to minimize the track
closure. The estimated construction cost of pipe culvert is USD 8.9 million, that of box
culvert is USD 13.9 million, that of steel girder bridge is USD 37.6 million, and the total
is USD 60.4 million.
2.6
Track rehabilitation project consists of (1) procurement of track materials, namely,

BS80A LB rail, steel sleepers with accessories, and ballast material, and (2) track
relaying works, consisting of; a) removal of the existing track materials, including
salvaging and storing for re-use of those materials, b) reforming of the track bed, and c)
laying new track materials. The cost of track materials are estimated from the previous
procurement contracts, namely the procurement of BS80A LB Rails and Fishplates from
China in 2007, and procurement of steel sleepers with pandrol type clips from South
Africa in 2011. Assuming that the construction will be carried out between 2014 and
2016, the costs of track materials of 2015 are estimated. The average inflation rate of 5%
is adopted for imported materials. The estimated cost of rail and fish plates per km is
USD 96,158, and that of steel sleepers and accessories per km is USD 175,674. The cost
of track relaying work between Tabora and Kigoma is estimated from on-going track
relaying project between Kitaraka and Malongwe section of the Central Line. The
estimated cost is USD 357,222, calculating with the inflation rate of 9% (2012 data). The
total cost per km is USD 629,054, and cost for 411 km is USD 258.5 million.
2.7
Even after RITES left the position of the railway operator in 2011 August, the same
structure for the railway operation is still remaining. It seems that the Tanzanian
Government has not found any clear ways to re-vitalize the railway operation. As a matter
of fact, concessionaires of railway operation in many countries tried to minimize O&M
costs in order to keep some profits initially. Then, on the contrary, the rate of accidents
increases, as can be seen in the UK. It is not clear why the government is keeping the
structure of RAHCO (asset holding company) and TRL (operating company). If the
government is looking for another concessionaire, the reason why RITES failed shall be
studied carefully. If no concession is considered, the existing system shall be modified to
function efficiently.
2.8
Conclusions drawn from the financial analysis for the railway rehabilitation are the
following.
The most critical factor for the financial viability of the project (from the
operators viewpoint) is whether the initial cost for the railway rehabilitation is
borne by the public or not.
If it is, the project is regarded as financially viable in most of the cases,
regardless of the financing structure, or the coverage of other components in the
projects.
As long as the cost for rails is fully included in the operators burden, the
project cannot provide an FIRR high enough for entering concession.
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Volume 1
These observations suggest that at the very least, the burden of rail rehabilitation
needs to be separated from the operator, and most likely financed by the
concessionary fund by the donors.
3.
Refurbishment of Kigoma Port
3.1
For the refurbishment of Kigoma Port, the following facilities need to be constructed and
rehabilitated as short-term projects, based on the demand forecast and lake transport
scenario discussed above.
3.2
Construction of the extension part of the quay facility for the container cargo.
Since the gantry crane rails are only 108 m long at present, the crane rails need to be
extended to accommodate two container ships. The overall length of a container ship
to carry 60 TEU of containers is estimated to be 60 m. Since an allowance is needed
at both the bow and stern, one container berth should be 80 m long. For two
container ships, the berth length should be 160 m.
Refurbishment of the existing quay for the container cargo, martial yard
(including refurbishment of train tracks). The top portion of the cast in
site-concrete piles needs to be rehabilitated to support the operation load of the 35ton
gantry crane. A part of the stacking yard around the gantry crane also needs to be
rehabilitated to keep the container handling operation smooth. In addition, all the
fenders are missing from the quay wall and the cargo ships use rubber tires to absorb
the berthing energy and reduce the berthing impacts. A proper fender system must be
installed to facilitate safe and faster berthing by the cargo ships. Also, minor repairs
such as the top parts of 7 piles (among total number 14 piles), the fender system and
the mooring facility were identified as needing rehabilitation in the near future for
container quay operations.
Refurbishment of the existing yard for the container cargo martial yard. Some
areas of the container stacking yard need to be rehabilitated and to be paved to keep
the operation for containers smooth.
Handling equipment for container cargo. The maintenance and the renewal of the
handling equipment for the container cargo in Kigoma port should be considered to
keep the distribution system of container cargo smooth.
Others. Besides the topics identified above, the installation of light beacons on the
coast and procurement of rescue boats are considered necessary for safe navigation
on Lake Tanganyika.
Conclusions drawn from the financial analysis for the Kigoma Port refurbishment are the
following.
For the operator, the project becomes financially viable only when they are free from
the initial CAPEX (at least on the materials and labor) and the financing costs.
Even in that case, the project cannot achieve an FIRR that is generally acceptable as
being financially viable (15%) unless the tariff level is raised substantially (95.0%+).
Beyond that, for the operator to be able to pay any concession fee (as an FIRR-based
one), further raising the tariff and/or discharging the operator of the obligation to bear
initial equipment cost, will be necessary.
28

Draft Final Report

Volume 1
Therefore, the investment decision needs to be made based on the balance between
the possibility of raising tariffs and the allowance of the public sector side on
suppressing (or totally eliminating) the concession fee, for the project to remain
viable.
29

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Comprehensive Transport and Trade

Draft Final Report

Comprehensive Transport and Trade System Development

Draft Final Report

Comprehensive Transport and Trade System Development

Draft Final Report

Regional Distribution of Population, 19882002 .................................................. 2

Existing Network ................................................................................................. 7

Estimated Modal Share by Corridor, 2010 and 2030 ............................................. 9

Comprehensive Transport and Trade System Development

Draft Final Report

Thus, Tanzanias Ministry of Transport (formerly the Ministry of Infrastructure

A strengthened transport network will contribute to integrating economic activities

Comprehensive Transport and Trade System Development

Draft Final Report

Road Classif ication

Figure 2.1: Regional Distribution of Population, 19882002

A new inland container/clearance depot (ICD) is to be constructed at Kisarawe in order to

Comprehensive Transport and Trade System Development

Draft Final Report

Comprehensive Transport and Trade System Development

Draft Final Report

Other Modes and Facilities

Comprehensive Transport and Trade System Development

Draft Final Report

Transport Demand Forecasting

Comprehensive Transport and Trade System Development

Draft Final Report

Comprehensive Transport and Trade System Development

Draft Final Report

Transport Network and Demand

Figure 1.1: Existing Network

Figure 1.2: Future Network

Transport demand pattern was analysed by means of 21 zones corresponding to 21

Comprehensive Transport and Trade System Development

Draft Final Report

Source: JICA Study Team

Figure 1.3: Freight Movement between Regions in 2010

Source: JICA Study Team

Figure 1.4: Freight Movement between Regions in 2030

Comprehensive Transport and Trade System Development

Draft Final Report

Table 1.1: Estimated Modal Share by Corridor, 2010 and 2030

2030: 'Without' Case (5% Growth)

2030: 'With' Case (8% Growth)

Strategy for Freight Transport Development

Comprehensive Transport and Trade System Development

Draft Final Report

Figure 2.1: EAC Development Corridors and Tanzania

Strategy 1: Strengthening international corridors and its connection to domestic

Master Plan Network

Strategy 2: Developing Infrastructure of Different Modes to Achieve the Optimal

Comprehensive Transport and Trade System Development

Draft Final Report

Comprehensive Transport and Trade System Development

Draft Final Report

Road Unit Cost

US$ per tonne-km

Operating Cost per tonne-km (US$)

Rail Unit Cost

Forecast tonne-km (million)

(Note: Rail haulage is expected to reach 3.2 billion

Figure 2.2: Unit Cost vs Hauling