Comesa chips in with $1,4m for ZIM dry port in Nambia

Walvis Bay - making headway (www.transportworldafrica.co.za)

Walvis Bay – making headway (www.transportworldafrica.co.za)

The Common Markets for Eastern and Southern Africa has agreed to avail US$1,4 million for phase one of the construction of the country’s Walvis Bay dry port. The government of Namibia in September 2009 granted Zimbabwe 19 000 square metres of land to construct its own dry port that is expected to boost the country’s trade. The project is being spearheaded by the Road Motor Services, a subsidiary of the National Railways of Zimbabwe.

In an interview, RMS managing director Mr Cosmos Mutakaya said the Ministry of Industry and Commerce last month held a consultative meeting with Comesa to strategise on how to fund the project.

“Comesa is looking at funding projects with a regional integration element that countries within the Southern African Development Community would benefit from. In the last meeting we held, Comesa indicated their willingness to finance the first phase of the facility which will cost US$1,4 million,” he said.

He said all the relevant documentation had been submitted and they are now waiting for a response from Comesa.

Mr Mutakaya said construction of the dry port would be done in two phases. The first phase involves the civil works which includes construction of the drive-in weighbridge, storage shades, palisade fencing as well as installation of electric catwalks. Phase two involves the putting up of administration blocks. He said once phase one is completed, then the dry port operations will start.

“We are now waiting for the unlocking of funds from Treasury and Comesa for us to start construction. The Namibian contractor, Namport, will also start working on the port once the funds are made available. According to the contractor, phase one of the project is going to take five working months to complete,” Mr Mutakaya said.

He said the project, which was supposed to have been completed by May this year, had been stalled by the lack of funding.

An official at the Namibian desk office in the Foreign Affairs Ministry confirmed that operations at the port had stopped for a while due to a lack of funding. “Government has been facing challenges in making payments to the Walvis Bay Corridors Group, responsible for the construction at the port and operations had to be stopped for some time pending clearance of some outstanding fees by Government,” he said.

Trade for Zimbabwe via Walvis Bay has increased for the past few years and a large percentage of commodities are transported along this corridor. Zimbabwe’s trade volumes through the Port of Walvis Bay have grown significantly to more than 2 500 tonnes per month.

In a related development, the Namibian Ports Authority is also working on expanding Walvis Bay port and recently secured a US$338 million loan from the African Development Bank to finance the construction of a new container terminal at Port of Walvis Bay. The Namibian government also received US$1,5 million for logistics and capacity building complementing the port project loan. Source: The Herald (Zimbabwe)

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Walvis Bay Container Terminal – AfDB and Namibia sign loan agreement

NamPort ExpansionThe African Development Bank Group (AfDB) and Namibia on Friday, November 8, 2013 signed a ZAR 2.9 billion (US $338 million) sovereign guaranteed loan to the Nambian Ports Authority (Namport) to finance the construction of the new container terminal at Port of Walvis Bay and a UA 1.0 million grant (US $1.5 million) to the Government of Namibia for logistics and capacity building complementing the port project loan. The project was approved by the AfDB Group in July 2013.

The project is expected to enable Namport to triple the container-handling capacity at the Port of Walvis Bay from 350,000 TEUs to 1,050,000 TEUs per annum. It will also finance the purchase of up-to-date port equipment and the training of pilots and operators for the new terminal. The grant component will fund the preparation of the National Logistics Master Plan study, technical support and capacity-building for the Walvis Bay Corridor Group and training of freight forwarders.

According to the AfDB Director of Transport and ICT, Amadou Oumarou: “Through this project which potentially serves up to seven major economies in the SADC region, the Bank is assisting in the diversification and distribution of port facilities on the southwest coast of Africa, and provides the much-needed alternative for the region’s landlocked countries.”

The project will stimulate the development and upgrade of multimodal transport corridors linking the port to the hinterland while improving the country’s transport and logistics chains. It will also boost competition among the ports and transport corridors in the region with the ripple effect on reductions in transportation costs and increased economic growth.

The projected project outcomes include improvement in port efficiency and increase in cargo volumes by 70% in 2020 as a result of increased trade in the region. The benefits of the project will include among others, the stimulation of inter-regional trade and regional integration, private sector development, skills transfer and most importantly employment creation, leading to significant economic development and poverty reduction in Namibia, and the SADC region. Source: African Development Bank

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