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Major Infrastructure Projects Transform Regional Logistics

The transport corridors are becoming more important in trade and economic integration in East Africa, as well as in goods transportation. The Northern Corridor, Central Corridor, and the new corridor, LAPSSET, are all in focus of the work on enhancing the connection of seaports to landlocked countries. Governments are investing in the development of logistics infrastructure such as standard gauge railways (SGR), highways, dry ports and other transport links, which will gradually allow the region to develop more efficient multimodal transport systems that will shorten delivery times and cut down on the cost of doing business.

From the above, it is obvious that the Northern Corridor is one of the most important corridors in the region as it links the Port of Mombasa in Kenya with Uganda, Rwanda, Burundi, South Sudan and portions of the Democratic Republic of Congo (DRC). The railway network is being expanded in Kenya and Uganda for the transportation of heavy cargo off the road. This is an intended 107-kilometre SGR line from Kisumu to Malaba, while Uganda is undertaking 272 kilometres of SGR line from Malaba to Kampala. Other extensions to Kasese and Mpondwe would eventually beef up ties with DRC. The Tororo-Gulu-Nimule road is also in the process of being planned to link to South Sudan. The investments in the railway are to cut transport costs and enhance the transport of goods along the railway corridor.

The road transport sector continues to be a vital sector. The works on the improvement of the Kenya-Uganda road will enhance connectivity from Kisumu, Busia, Kakira and Malaba. It can also be reduced by establishing one-stop border posts, such as Busia and Malaba, and introducing modern facilities at the border to improve the efficiency of the customs and border processes. Speedy clearances of goods are particularly attractive to logistics companies because slow clearances result in increased fuel costs, increased operating costs of a vehicle, and longer delivery times.

Another major landlocked corridor starts in the Port of Dar es Salaam, Tanzania, and runs to other landlocked countries like Rwanda, Burundi, Zambia, Malawi, Uganda, and the DRC. Tanzania is investing in the development of the rail and port infrastructure as a logistics hub in the region. The Dar es Salaam-Dodoma SGR section has already been put into operation, and other railway lines are being constructed to connect to neighboring nations. The Kwala dry port will also help to improve cargo handling by diverting some of the cargo transportation from the congested port of Dar es Salaam to the market inside the continent.

The rise in the use of multimodal means of transportation is one of the main trends. Rail can provide access to port facilities that facilitate the efficient transfer of containers between ships, trains, and trucks. This can help to alleviate congestion around ports and provide importers and exporters with more predictable ways to transport goods throughout the region.

The second opportunity is from the LAPSSET Corridor. The project includes the road, rail, pipeline, and logistics facilities from the Port of Lamu in Kenya to Ethiopia and South Sudan. However, due to relatively low levels of cargo volumes, the challenges faced by Lamu have been significant, but plans for dry port facilities around Moyale and better links may boost trade through northern Kenya in the future. But for LAPSSET to work, investment is needed; infrastructure development has to be implemented, and major investments need to come in to drive cargo volume.

The transport corridors of East Africa are moving towards a multi-modal and connected transport system. Other investments in the railways, highways, ports and border infrastructure can reduce transport expenses, improve the reliability of transport chains, and increase trade across borders. In the event that these projects are executed successfully, the Northern Corridor, Central Corridor and LAPSSET have the potential to significantly contribute to the competitiveness of East Africa as a trading hub in the region.

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