AFR and NMR SP have both raised today, is because of the following news...
..Below is a snapshot of the Web page as it appeared on 21/01/2012...from "WeekendPosts", it looks like the rail proposal will be announced soon,IMO...
..Also published on 16/01/2012 : http://www.ibotswana.co.bw/news/business/item/10647-kedikilwe-to-takeover-rail-projects.html
• Projects earmarked for the West could shift to East • Coal study report moves rail function to Ministry of Minerals • Why Selibe Phikwe will return to hay days • Self interests allegedly influenced the ‘coup’
MUTUAL UNDERSTANDING: The two Ministers, Dr Ponatshego Kedikilwe (MWER) and Mr Nonofo Molefhi (MTC) apparently have agreed on the development. They are currently engaged in talks with their counterparts from Mozambique to finalise the deal
If the proposals of a coal study report are adopted the Ministry of Minerals Energy and Water Resources will take control of all projects related to coal development in the country. Fundamental to this project are the rail lines proposed to link Botswana with countries such as Namibia, Mozambique and South Africa.
WeekendPotst has it in good authority that some big shots are lining up to benefit from the diversion of the rail projects from the western to the eastern part of the country.
Botswana was this week in serious bilateral talks with Mozambique to speed up the proposed project. Under the Ministry of Minerals there will be a coal development Unit which will focus precisely on coal business and also manage the rail transport of coal under one roof.
The project was initially under the Ministry of Transport and Communications but a deal has been arrived at to allow the Ministry of Minerals to have rail and coal under one roof. The permanent secretary in the Ministry of Minerals, Boikobo Paya told WeekendPost that there was a coal study that was conducted and it made several recommendations including having the railway line development under the same roof with the coal development. He said there will be a coal road map pitso through which issues arising from the coal study report will be discussed. “We are still at study level and the decision time is yet to come,” he said.
Paya confirmed that there was a feasibility study which recommended the western route but there was later another study carried out by the private sector which proposed an eastern route. Indications are that Botswana’s coal could be exported through the Mozambique rail route. This is said to be likely to disappoint Namibia which was banking on Botswana to help bring business to its Walvis Bay port. Botswana was also leased a dry port in Namibia.
The permanent secretary pointed out that the Transport Hub will continue to operate as was initially planned and will not be moved to his Ministry. He emphasised that the coal study has to identify the rail aspect as the only one that needs to be shifted to MWER.
According to information reaching WeekendPost a pre-feasibility study was carried out in the western (Kgalagadi area) by CIC Energy to assess the viability of putting a railway line in the western corridor to link Botswana with Namibia. The latter is eager to have some activity at the Walvis Bay port and this was viewed as one development that could divert some form of traffic to the Namibian port.
However a second feasibility study carried out by an independent company has proposed that the railway line should actually be concentrated in the Eastern part of the country. There are indications that some in the private sector had said they would prefer the railway line to run on the eastern part of Botswana.
The coal study report indicates that Selibe Phikwe, a town whose economy was nearly extinct, could be resuscitated by making it a coal depot and a train station where the coal will be collected. WeekendPost has established that this would divert from the initial plan where probably a town like Jwaneng would have benefited from the coal development. Those who oppose the coal study believe that it was influenced by personal interests.
They point out that there are plans to ensure that the economy of Phikwe and surrounding areas booms in the immediate future to spring up businesses owned by some involved in the decision making process. However these allegations have been dismissed as baseless because the decision to move the rail line to the east was proposed by the private sector.
Others say this is an indication that Botswana is serious about utilising its coal resource and should accelerate efforts to start exporting to other markets. However there is likely to be an intense debate on the location of the coal depot and the railway line at the coal road map pitso.
Some of the rail projects under Transport Hub •Construction of a bridge over Zambezi river at Kazungula to further integrate the country’s road and rail network with the SADC region in order to rectify a major transport bottleneck which currently constrain the efficient movement of goods and passengers between Botswana and countries in the SADC region and beyond. Construction of this bridge would also have a high positive impact on the road and rail network efficiency and change the current pattern of traffic movement in the SADC region in favour of Botswana.
•Construction of Trans-Kalahari railway line connecting a deep water port in Namibia on the Atlantic coast for export of coal from Botswana and import of various commodities to the SADC region. The project has the potential to boost the utilisation and importance of Botswana’s rail network in the region, diversify the mining sector, promote investment and generate employment.
•Construction of two railway links: Mosetse – Kazungula and Mmamabula – Ellisras in order to increase the railway network efficiency and to attract additional cargo volumes from the SADC region.
The Transport Hub was established to identify and coordinate key projects and policy interventions required in the transport sector in order to develop Botswana as a transport hub within the SADC region. The goal is to transform the transport and logistics industry into a major growth sector that stimulates economic diversification of the country.
To achieve this goal, the Transport Hub plans to utilise a number of on-going and planned projects such as Development of a Dry Port at Walvis Bay to facilitate seamless and cost effective movement of goods from Botswana and the SADC region. This will enhance the utilisation of the Trans-Kalahari road and reduce the time and cost of transport for imports and exports.
Construction of a bridge over Zambezi river at Kazungula to further integrate the country’s road and rail network with the SADC region
Cheers,
NMR Price at posting:
5.4¢ Sentiment: Hold Disclosure: Held
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