Maravi

Infrastructure is a big constraint to development of mines – AFA

Infrastructure is a big constraint to development of mines – AFA
By Nchima Nchito Jr
Tue 10 Nov. 2009, 04:00 CAT

ADEQUATE physical and economic infrastructure is a big constraint to the development of mining and other sectors, Africa Frontier Advisory (AFA) has observed.

According to mining weekly, AFA senior manager Hannah Edinger said development was unattainable without infrastructure.

“As the backbone for greater economic activity, efficiency and competitiveness, infrastructure, such as transport, information and communication technology, electricity and water, are crucial as an enabler of the private sector to achieve higher production levels and wealth in economies,” she said.

Edinger cited copper transported from its source on the Copperbelt to the Port of Durban which could take between two and three weeks to reach its destination owing to inadequate transport infrastructure and cross-border clearing procedures, while the equivalent distance in Europe would take only about two days.

“…This, undoubtedly, has major impacts on the competitiveness of African States. The foregone income, owing to extended waiting times and delays at borders on these cargos, is significant. A week's delay of a trainload of copper can cost up to $16 000 just for the interest charged. Trucks transporting goods can take up to ten days to pass through border posts, significantly increasing both economic and social costs,” she said.

These inefficiencies and constraints have spurred the North-South Corridor (NSC) Pilot Aid for Trade programme, a joint initiative between three regional economic communities, namely the Common Market for Eastern and Southern Africa, the East African Community and the Southern African Development Community, to improve road and rail transport and power infrastructure corridors.

The NSC connects the Copperbelt region to the Port of Dar -es -Salaam and the Port of Durban to improve transport, both road and rail, and power infrastructure along two New Partnership for Africa's Development (NEPAD) prioritised infrastructure corridors.

High transport costs and delays in the transportation of goods out of landlocked countries such as Zambia had effectively led to lower production and trading levels for these countries, limiting their potential gross domestic product growth, which could be improved if better access to markets was possible.

“The Tazara railway line, which has been a key corridor for transporting copper from the Copperbelt to the Port of Dar-es-Salaam, carries about 600,000 tonnes per year of goods between Zambia and Dar es Salaam. Under the NSC initiative, about 600 km of rail tracks will be upgraded to increase the tonnage transported a year to two-million tonnes by 2014,” said Edinger.

Labels: INFRASTRUCTURE, MINING

posted by MrK @ 5:29 AM