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transport industry zambia

The Transport Industry in Zambia 2016

Louise Mitchell | Zambia | 11 August 2016

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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• Old and outdated infrastructure.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.”

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The Transport Industry in Zambia
The Transport Industry in Zambia 2016

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Table of Contents

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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