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Port, Botswana–Moz rail feasibility study set to start this year

30th May 2014

By: Tshiamo Tabane

  

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A feasibility study into a project entailing the proposed Ponto Techobanine deep- sea port, in Mozambique, and a 1 100 km heavy-haul railway line linking the port to Botswana’s burgeoning coal-producing eastern region is expected to start this year, after the company developing the project completed a prefeasibility study into the project.

The railway line is expected to start at a new dry port to be established near Selebi Phikwe, in eastern Botswana, and pass through Zimbabwe.

Minerals, Energy and Water Resources Minister Kitso Mokaila says that prefeasibility study into the private-sector- driven project was completed earlier this year and paves the way for the full feasibility study. ‘The evaluation of the prefeasibility study, carried out by the private sector, has since been concluded by the three governments and feedback was given to the company in January.’

Speaking to Mining Weekly, a Mike Barclay, operations director of the project’s consulting firm, Bergstan Africa, says the feasibility study could take six to nine months, and this will be followed by a detailed design phase.

However, he says it is difficult to say when construction will start, as the three governments and the Botswana-based Transwana Group Holdings, appointed as the private developer, failed to finalise funding issues earlier this year, as had been expected. It is estimated the project could cost about $1.6-billion.

Barclay says it could take seven years to complete the entire project, which includes the construction of coal-handling facilities in Selibe Phikwe. The new line will also connect Botswana’s coalfields to Zambia and the Democratic Republic of Congo through Kazungula.

Botswana Chamber of Mines CEO Charles Siwawa says, while the 2020 Trans-Kalahari rail- way line to connect Botswana to the Namibia Walvis Bay port, another gateway to export markets is still required. “Our intention is to transport around 150-million tonnes a year and we can’t depend on the Trans-Kalahari railway alone. We still require Ponto Techobanine. The line . . . will further improve operations and efficiencies in commercialising coal deposits.

“This alternative trade route is also expected to improve the competitiveness of Botswana and Zimbabwe as well as improve access for our export commodities to the global economy,” he says.

Siwawa adds that the Ponto Techobanine railway line will improve Botswana coal’s access to Asian countries, which are the major potential market for Botswana. The country is optimistic that it can produce up to 90-million tons of seaborne thermal coal a year, mainly for export to countries like India and China.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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