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 24 companies including Airfast Congo and Malu Aviation which are both active in the air transport sector. Also profiled is the state-owned entity, SNCC (Société Nationale des Chemins de Fer du Congo), whose rail network is used extensively for copper exports, as well as TRANSCO (Transport au Congo) which provides passenger bus transport and charter services.
Introduction
The focus of this report is the transport industry in the Democratic Republic of the Congo (DRC) and covers land transport, which includes freight and passenger transport by road and rail, and transport by water and air. The DRC’s vast geography, low population density, extensive forestlands, and expansive network of rivers are factors that complicate the development of infrastructure networks. The DRC’s location traversing the regional transport corridors, the different cross-border water resources (lakes and rivers) and the presence of sites with great hydro power potential present major opportunities for infrastructure development and trade with all African regions.
Strengths
• Aircraft provide access to remote areas of the DRC, which would otherwise be inaccessible.
• CO2 emissions are low due to poor road and rail infrastructure and low economic activity.
• Donor money and institutions are supporting upgrades to transport infrastructure and are assisting government institutions to strengthen governance.
• Road rehabilitation and upgrades are a government priority and road access increased from 13% in 2006 to 45% in 2014.
• Strong economic growth in the last four years and a stable currency.
• The air transport industry is an economic enabler, supporting trade, business and tourism.
• Water transport is the biggest electricity consumer in the transport sector and it is considered a green mode of transport.
Weaknesses
• A weak regulatory framework is preventing successful PPPs.
• Competition in the rail transport sector is inhibited by state-owned institutions.
• Development of transport on waterways is receiving very little investment from government.
• Multimodal transport is not interconnected leaving certain geographical areas isolated.
• Old and outdated infrastructure.
• Operating and start-up costs in all the transport sectors are high preventing MSMEs to enter the market, inhibiting competition.
• Professionals in the aviation sector with the requisite expertise are scarce. There are very few institutions that offer technical training in the DRC.
• Regulatory supervision in the sector is inadequate.
• The aviation sector in the DRC has a poor safety record as a consequence of the dilapidated airport infrastructure, outdated technology and ageing aircraft, which are blacklisted in the EU.
• Water transport is badly regulated and unsafe, yet it is for many people the only transport mode.
Opportunities
• Competition in air transport will increase with the new state-owned airline that came into operation.
• Regional cooperation will strengthen transport corridors.
Threats
• An escalation in domestic political tensions preceding the pending national elections.
• Electricity supply shortages are impacting customers that produce goods to be transported.
• Low commodity prices are reducing exports and low projected economic growth rates will lead to contraction in manufacturing, mining and agricultural output, thereby reducing demand for freight transportation.
Outlook
Freight traffic is projected by PwC to grow annually at 8.2% to 2040 in SADC countries which will demand adequate infrastructure in road, rail, air and water. The potential for growth in the DRC’s transport infrastructure development is underlined by industry commentators and is dependent on the implementation of governance structures within state-owned transport operators and transport departments within government. It will assist in the combat against corruption and will encourage private and foreign investment in the sector. The DRC has the opportunity to enhance its contribution towards green transport by investing in transport on waterways. Government is set to continue with rehabilitation of the national and provincial road network and the railway network with the aid of donor institutions like the World Bank. Stakeholders in the air transport sector believe air safety must remain a focal issue and that public entities tasked with addressing infrastructure deficiencies and providing a safe operating environment for the air transport industry must be held accountable. Execution of the World Bank’s MTP will contribute towards an integrated transport network to support economic growth in the country. The national elections that was scheduled for the second half of 2016 are likely to be postponed to 2017. Observers are expecting civil unrest to prevail until after the elections. This may derail transport infrastructure development in the short term.
Full Report
R 1 900.00(ZAR) estimated $108.02 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 75.62 (USD)*
Historical Reports
The Transportation Industry in DRC 2014-05-19
R 1 900.00(ZAR) estimated $108.02 (USD)*
View Report Add to CartTable 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. | Water Transport | 3 |
3.1.2. | Road Transport | 4 |
3.1.3. | Rail Transport | 6 |
3.1.4. | Air Transport | 8 |
3.2. | Size of the Industry | 9 |
4. | STATE OF THE INDUSTRY | 13 |
4.1. | Local | 13 |
4.1.1. | Water Transport | 14 |
4.1.2. | Road Transport | 15 |
4.1.3. | Rail Transport | 18 |
4.1.4. | Air Transport | 20 |
4.1.5. | Investment in the Transport Sector | 21 |
4.2. | Corporate Actions | 23 |
4.3. | Regulations | 24 |
4.4. | Enterprise Development and Social Economic Development | 26 |
4.5. | Continental | 27 |
4.6. | International | 29 |
5. | INFLUENCING FACTORS | 30 |
5.1. | Regional Cooperation | 30 |
5.2. | Economic Environment | 32 |
5.3. | Government Initiatives | 34 |
5.4. | Private Sector Initiatives | 35 |
5.5. | Rising Operating Costs | 35 |
5.6. | Technology, Research and Development (R&D) and Innovation | 36 |
5.7. | Labour | 36 |
5.8. | Cyclicality | 38 |
5.9. | Environmental Concerns | 39 |
5.10. | Travel Safety | 40 |
5.11. | Electricity Supply Constraints | 41 |
6. | COMPETITION | 42 |
6.1. | Barriers to Entry | 43 |
7. | SWOT ANALYSIS | 44 |
8. | OUTLOOK | 45 |
9. | INDUSTRY ASSOCIATIONS | 46 |
10. | REFERENCES | 47 |
10.1. | Publications | 47 |
10.2. | Websites | 48 |
COMPANY PROFILES - RAILWAY TRANSPORT | 50 | |
Societe Nationale de Chemins de Fer du Congo Sarl | 50 | |
COMPANY PROFILES – URBAN, SUBURBAN & INTER-URBAN BUS & COACH PASSENGER LINES | 52 | |
Transportation Company of Congo | 52 | |
COMPANY PROFILES – OTHER PASSENGER TRANSPORT, INCLUDING THE RENTING OF PASSENGER MOTOR VEHICLES WITH DRIVERS | 54 | |
Malabar International Ltd | 54 | |
COMPANY PROFILES – FREIGHT TRANSPORT BY ROAD | 56 | |
Bollore Transport & Logistics RDC SA | 56 | |
DSV A/S | 58 | |
Ghunaq Investments (Pty) Ltd | 66 | |
Hermis Transport Sprl | 68 | |
Lignes Maritimes Congolaises SA | 69 | |
M+R Spedag Group AG | 70 | |
Malabar International Ltd | 72 | |
Super Group Ltd | 74 | |
Trans-Inter Congo Sprl | 77 | |
COMPANY PROFILES – SEA AND COASTAL WATER TRANSPORT | 78 | |
Bollore Transport & Logistics RDC SA | 78 | |
Lignes Maritimes Congolaises SA | 80 | |
COMPANY PROFILES – INLAND WATER TRANSPORT | 81 | |
Marine Services Company Ltd | 81 | |
Societe Nationale de Chemins de Fer du Congo Sarl | 83 | |
Trans-Inter Congo Sprl | 85 | |
COMPANY PROFILES – AIR TRANSPORT | 86 | |
Air Cote d\'Ivoire | 86 | |
Air Kasai Sprl | 88 | |
Airfast Congo Sprl | 89 | |
Compagnie Africaine d\'Aviation | 90 | |
Congo Airways | 92 | |
Kenya Airways Ltd | 93 | |
Kin Avia Sprl | 97 | |
Malu Aviation | 98 | |
Services Air Group Inc | 100 | |
Swala Aviation | 101 | |
Trans Air Cargo Service (TACS) | 102 |