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The Transportation Industry in Zambia 2022

Rebecca Mort | Zambia | 31 January 2022

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Report Coverage

This report covers the Zambian Transport Industry, which includes road, rail, air, water and pipeline transport systems for passengers, freight, cargo, and crude oil. The report includes country information, developments, regulations and corporate actions and the factors that influence the industry, including the pandemic, infrastructure development, economic challenges and fuel costs. There are profiles of 30 companies including rail company The Tanzania Zambia Railway Authority and TAZAMA pipelines. Road Transport companies profiled include DSV, Freight and Passenger Services and Greendoor Group, and air transport companies profiled include Corporate Air, Royal Air Charters and Proflight Commuter Services.

Introduction

This report covers the Zambian Transport Industry, which includes road, rail, air, water and pipeline transport systems for passengers, freight, cargo, and crude oil. Zambia is a landlocked country and depends on a strong and efficient transport system for the smooth transit of exports and imports and growth of its economy. However, current economic conditions and poor maintenance of transport infrastructure mean that this industry faces significant challenges, and requires further investment. The 923m Kazungula Bridge across the Zambezi river and one-stop border post facilities opened on 10 May 2021 and aims to ease the flow of trade and people between Botswana and Zambia. It will also provide alternative trade routes between SADC countries, and relieve some pressure off the Beitbridge border post between South Africa and Zimbabwe as previously the main trade route between Zambia and South Africa was through Zimbabwe. Its opening was stalled for years, as the infrastructural investment has been plagued with delays caused by political negotiations between the two governments, non-payment of contractors, and the pandemic. The bridge, which will assist in speeding up and easing the influx at border controls, will enable over 250 trucks to cross each day. The bridge was a joint initiative between the governments of Botswana and Zambia, and includes road, rail and pedestrian crossing, and an upgraded one-stop border post, with inspection and storage facilities.

Strengths

• Government leadership in transport policy, planning and development.
• High levels of investment into infrastructure development from global entities, public private partnerships and the state.
• New investments into Mpulungu port, airport infrastructure, Kazungula Bridge and additional key entry points
• Railways expansion with open access agreement.

Weaknesses

• Delays in transport infrastructure development and policy implementation due to pandemic.
• Economic fall-out of pandemic especially on tourism and trade.
• High operating and startup costs are preventing local SMEs from entering the market, inhibiting competition.
• Infrastructure maintenance challenges, inconsistent road rehabilitation, expensive waterway maintenance, inadequate railway maintenance.
• Limitations of being a landlocked state and dependency on neighbours.
• Weak economy and currency, high debt to GDP ratio, sovereign default.

Opportunities

• African Continental Free Trade Area presents new trade and transport arrangements with African partners.
• Economic turnaround predicted.
• Increase in commodity prices.
• More sustainable electricity supply with increased investment in hydropower plants, forecasts for higher rainfalls, and new regional energy agreements planned.
• New opportunities for local truck driver businesses under 50-50 agreement.
• New pipeline plans between Angola and Zambia.
• New railway extensions and upgrades by privately-run NorthWest Rail.
• Newly elected government and change in governance with United Party for National Development.
• Opportunities for transport growth driven by technology and e-commerce.

Threats

• Change in national government could produce uncertainty and delays in economic recovery.
• Irregular fuel supply and high fuel prices.
• Uncertainties of global travel restrictions and new coronavirus variants limiting air travel internationally, regionally and domestically.
• Unsustainable debt levels, particularly debt to China and Chinese involvement in infrastructure development.

Outlook

Government incentives and regulations are expected to help the sector generate revenues and stimulate local businesses. The industry remains affected by the country’s weak economic state, with inflation and economic instability affecting fuel prices, economic production and trade. Investments in transport infrastructure, including ports, railways, airports and border posts, will result in a stronger transport sector. The Continental Leadership Research Institute said that the pandemic has shown the necessity of a well-managed transport industry that is connected regionally and internationally. The Zambian government recognises the critical role that the industry plays in ensuring the smooth flow of goods and people.

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The Transportation Industry in Zambia 2022

Full Report

R 6 500.00(ZAR) estimated $339.32 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 237.52 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 9
4. SIZE OF THE INDUSTRY 10
4.1. Contribution to GDP 10
4.2. Exports and Imports via Transport 10
4.3. Transport Statistics 11
5. STATE OF THE INDUSTRY 12
5.1. Local 12
5.2. Rail Transport 14
5.3. Air Transport 16
5.4. Water Transport 18
5.5. Transport via Pipelines 19
5.6. Corporate Actions 19
5.7. Regulations 20
5.8. Enterprise Development and Social Economic Development 21
6. AFRICA 23
7. INTERNATIONAL 25
8. INFLUENCING FACTORS 26
8.1. COVID-19 26
8.2. Landlocked Countries and Regional Cooperation 26
8.3. Road Safety, Conditions and Infrastructure 28
8.4. Economic Environment 28
8.5. Rising Input Costs 30
8.6. Technology, Research and Development (R&D) and Innovation 31
8.7. Private Sector Initiatives 33
8.8. Environmental Concerns 34
8.9. Labour 35
9. COMPETITION 38
9.1. Barriers to Entry 39
10. SWOT ANALYSIS 41
11. OUTLOOK 42
12. INDUSTRY ASSOCIATIONS 43
13. REFERENCES 44
13.1. Publications 44
13.2. Websites 44
APPENDIX 1 47
Summary of Notable players 47
COMPANY PROFILES – RAILWAY TRANSPORT 51
Tanzania Zambia Railway Authority (The) 53
Zambia Railways Ltd 54
COMPANY PROFILES – URBAN, SUBURBAN & INTER-URBAN BUS AND COACH PASSENGER LINES 56
Kobs Transporters Ltd 56
Quattro Co Ltd 58
Shalom Bus Services Ltd 60
COMPANY PROFILES – THE METERED TAXI INDUSTRY 61
Ulendo Taxi Ltd 61
COMPANY PROFILES – SAFARIS AND SIGHTSEEING BUS TOURS 62
Alendo Travel Tours and Car Hire Ltd 62
Winning Travel and Tours Ltd 63
COMPANY PROFILES – FREIGHT TRANSPORT BY ROAD 64
Agro-Fuel Investments Ltd 64
Buks Haulage Ltd 66
DSV Panalpina A/S 68
Freight and Passenger Services Ltd 77
Greendoor Group (Pty) Ltd 79
J&J Transport Zambia Ltd 81
Kapiri Transport Ltd 82
Keptcool Ltd 83
Lift and Shift Trucking Zambia Ltd 84
Quattro Co Ltd 85
Sable Transport and Construction Ltd 87
Satwant Transport Ltd 89
Time Trucking Ltd 90
Usangu Logistics Ltd 91
COMPANY PROFILES – DISTRIBUTION OF GASES, LIQUIDS, SLURRY AND OTHER COMMODITIES BY PIPELINE 92
TAZAMA Pipelines Ltd 92
COMPANY PROFILES – INLAND WATER TRANSPORT 94
Mpulungu Harbour Corporation Ltd 94
COMPANY PROFILES – AIR TRANSPORT 95
Corporate Air Ltd 95
Proflight Commuter Services Ltd 97
Royal Air Charters Ltd 98
Staravia Air Charters 100
Zambia Airports Corporation Ltd 102