Report Coverage
The detailed report on the Zambian transport sector discusses current conditions, describes investment into the sector and outlines factors influencing the success of the industry. The report profiles 14 companies including Buks Haulage Ltd and J&J Transport Zambia Ltd which are both active in the road freight sector. Also profiled is state-owned entity, Zambia Railways Ltd (ZRL), which provides access to the South African ports of Durban and Richards Bay, and Beira and Nacala in Mozambique, as well as the Tanzania Zambia Railway Authority t/a TAZARA whose 1,860km long railway line links Zambia to the Tanzanian port of Dar es Salaam.
Introduction
This report focuses on the Zambian transport industry, covering land transport, which includes freight and passenger transport by road and rail, and transport by water and air, as well as crude oil transport via pipelines. As a landlocked country, Zambia’s economy needs a strong transport system to move exports and imports, but current infrastructure is inadequate to sustain and match the desired levels of growth, and requires increased levels of investment.
Strengths
• Donor money and PPPs support upgrades to transport infrastructure.
• Government’s transport policies, frameworks and plans support construction and upgrading of transport infrastructure.
Weaknesses
• As Zambia is landlocked, it depends on neighbouring countries for access to sea ports.
• Competition in the rail transport sector is inhibited by state-owned institutions.
• High operating and start-up costs are preventing MSMEs from entering the market, inhibiting competition.
• Old and outdated infrastructure.
• Road upgrades are used to gain political favour which leads to unnecessary high maintenance costs.
• The cost of maintaining waterways is high and is a constraint on the development of water transport.
• Weak regulatory framework.
Opportunities
• Chinese and private sector investment in transport infrastructure.
• Increased manufacture from MFEZs will benefit freight transporters.
• New passenger services, locally and across borders, in the passenger rail transport sector.
• Regional cooperation treaties that will strengthen transport corridors.
• The establishment of a new state-owned airline and the lifting of the European Commission ban on Zambian aircraft.
• Upgrades at airports which should result in increased use of air transport services.
Threats
• A weakening currency which will increase costs of imported vehicles and components.
• Continuing shortage of electricity.
• Further decrease in commodity prices and projected economic growth rates which will reduce demand for freight transportation.
• Growing trade deficit which will leave less money in the budget for infrastructure projects.
• Irregular fuel supply.
• Rising diesel and electricity costs.
Outlook
Freight traffic is projected by PwC to grow annually at 8.2% to 2040 in landlocked SADC countries like Zambia, which will demand improved infrastructure for road, rail, air and water transport. Although the Kenneth Kaunda International Airport currently operates at 70% capacity, analysts expect traffic to expand well over 100% of capacity by 2020. The lifting of the ban on Zambian registered aircraft by the EC will further contribute to growth in the air transport sector. China’s involvement in the development of Zambia’s transport infrastructure is forecast to continue. The declaration of the heads of state of 50 African countries and the government of China at the Summit of the Forum on China-Africa Cooperation (FOCAC) held in December 2015 in Johannesburg, included the following resolution, “Focus on strengthening cooperation in infrastructure projects including, but not limited to, railways, highways, regional aviation, power, water supply, information and communication, airport and posts, as well as human resource development cooperation and capacity building.”
The Transport Industry in Zambia
2016
Full Report
R 1 900.00(ZAR) estimated $102.40 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 71.68 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 2 |
| 3. | SIZE AND STRUCTURE OF THE INDUSTRY | 3 |
| 3.1. | Geographic Position | 3 |
| 3.1.1. | Road Transport | 4 |
| 3.1.2. | Rail Transport | 6 |
| 3.1.3. | Air Transport | 9 |
| 3.1.4. | Water Transport | 10 |
| 3.1.5. | Transport via Pipelines | 12 |
| 3.2. | Size of The Industry | 13 |
| 4. | STATE OF THE INDUSTRY | 17 |
| 4.1. | Local | 17 |
| 4.1.1. | Road Transport | 17 |
| 4.1.2. | Rail Transport | 21 |
| 4.1.3. | Air Transport | 23 |
| 4.1.4. | Water Transport | 24 |
| 4.1.5. | Transport via Pipelines | 25 |
| 4.2. | Corporate Actions | 25 |
| 4.3. | Regulations | 26 |
| 4.4. | Enterprise Development and Social Economic Development | 27 |
| 4.5. | Continental | 28 |
| 4.6. | International | 30 |
| 5. | INFLUENCING FACTORS | 31 |
| 5.1. | Landlocked Countries | 31 |
| 5.2. | Regional Cooperation | 32 |
| 5.3. | Road Conditions and Infrastructure | 33 |
| 5.4. | Economic Environment | 34 |
| 5.5. | Government Initiatives | 35 |
| 5.6. | Private Sector Initiatives | 37 |
| 5.7. | Rising Operating Costs | 38 |
| 5.8. | Technology, Research and Development (R&D) and Innovation | 39 |
| 5.9. | Labour | 40 |
| 5.10. | Cyclicality | 42 |
| 5.11. | Environmental Concerns | 42 |
| 5.12. | Road Safety | 43 |
| 5.13. | Fuel Supply Shortages | 44 |
| 5.14. | Electricity Supply Constraints | 44 |
| 6. | COMPETITION | 45 |
| 6.1. | Barriers to Entry | 47 |
| 7. | SWOT ANALYSIS | 48 |
| 8. | OUTLOOK | 49 |
| 9. | INDUSTRY ASSOCIATIONS | 50 |
| 10. | REFERENCES | 50 |
| 10.1. | Publications | 50 |
| 10.2. | Websites | 52 |
| COMPANY PROFILES - RAILWAY TRANSPORT | 54 | |
| TANZANIA ZAMBIA RAILWAY AUTHORITY (THE) | 54 | |
| ZAMBIA RAILWAYS LTD | 55 | |
| COMPANY PROFILES - URBAN, SUBURBAN & INTER-URBAN BUS & COACH PASSENGER LINES | 57 | |
| INTERCAPE FERREIRA MAINLINER (PTY) LTD | 57 | |
| COMPANY PROFILES - SAFARIS AND SIGHTSEEING BUS TOURS | 59 | |
| WINNING TRAVEL AND TOURS LTD | 59 | |
| COMPANY PROFILES – FREIGHT TRANSPORT BY ROAD | 60 | |
| BUKS HAULAGE LTD | 60 | |
| DSV A/S | 62 | |
| J&J TRANSPORT ZAMBIA LTD | 70 | |
| SABLE TRANSPORT AND CONSTRUCTION LTD | 71 | |
| TRUCKAFRICA SOUTH AFRICA (PTY) LTD | 72 | |
| COMPANY PROFILES - DISTRIBUTION OF GASES, LIQUIDS, SLURRY AND OTHER COMMODITIES VIA PIPELINES | 75 | |
| TAZAMA PIPELINES LTD | 75 | |
| COMPANY PROFILES - INLAND WATER TRANSPORT | 77 | |
| MARINE SERVICES COMPANY LTD | 77 | |
| COMPANY PROFILES - AIR TRANSPORT | 79 | |
| CORPORATE AIR LTD | 79 | |
| PROFLIGHT COMMUTER SERVICES LTD | 80 | |
| ZAMBIA AIRPORTS CORPORATION LTD | 81 |
