Concessioning of Tanzania Railways Corporation (TRC)
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INVESTORS FLYER FOR THE TANZANIA RAILWAYS CORPORATION CONCESSION
Since 1992 the Government has been implementing a systematic reform program encompassing a broad range of Government functions and undertakings. The main focus of the Government's overall strategy for parastatal sector reform has been on improving the operational efficiency of parastatals, reducing the burden of these enterprises on the Government, expanding the role of the private sector in the economy, and encouraging a wider participation of people in the ownership and management of business in Tanzania by eliminating state monopolies and facilitating market competition.
The primary objective of the Government in relation to TRC is thus to create a financially viable railway that provides an efficient and cost effective service to its customers, whilst retaining ownership of national public service assets and safeguarding national interests.
In May 2001 the Government decided to concession TRC as a vertically integrated Concession without open access. The Concessionaire will be granted an exclusive right, with the exception of Trans Africa Railways Corporation's (TARC) access rights, during the twenty-five year Concession Term to operate Rail Transport Services on the Railway Network.
The TRC concession offers a strategic entry point into the East African logistics network. The Preferred Bidder will use the existing rolling stock as well as the metre-gauge network of track which extends across Tanzania, with connections to the Kenya and Uganda networks to the north and TAZARA to the south. TRC represents a strategic base with the opportunity to expand in local and transit rail markets, as these and other government-owned businesses are offered for sale/concessioning. Freight traffic carried by TRC has grown by 7% in 2002 and would have grown more had it not been because of capacity constraint. TRC has a strong base from which to work to continue to grow and develop its regional business. The structure of the concession allows for the Concessionaire to: operate freight and passenger services throughout the rail network; acquire the obligation to use, manage, maintain, operate and develop the Railway Network over the life of the 25 year Concession Term; earn access fees from other rail operators; and acquire the interests in the commercial contracts with customers and suppliers that are current at the time of handover of the Concession Activities.
Three (3) Bidders were fully prequalified:
Prequalification Status Group
Fully Prequalified NLPI/Spoornet
Comazar/Bollore/Caspian/Sheltam-Mvela/Rand Merchant Bank
RITES/GAPCO/UTI Bank
The Request for Technical and Financial Proposals (RFP) was issued to Bidders on June 24th, 2004. The deadline for receiving Proposals is April 13, 2005 and the concession Commencement Date has been set for November 2005.
For further information please contact:
Peter Kieran
CPCS Transcom
tel: +1 (613) 237-2500
fax: +1 (613) 237-4494
pkieran@cpcstrans.com
TRC Network Existing TRC network:
2,707 route kilometres of metre-gauge track
Traffic (Year 2000) Freight:
Passengers:
1.35 million tonnes
625,000
Revenue (Year 2000) Freight:
Passengers:
53.1 (USD million)
7.4 (USD million)
Rolling Stock Locomotives (total/operational):
Diesel-electric mainline locomotives:
Diesel-hydraulic branch line locomotives:
Diesel-electric shunting locomotives:
Diesel-hydraulic shunting locomotives:
116/94
61
25
20
0
Privatisation Schedule Issue RFD:
Bidders' Conference:
Second Biddersd' Conference
Proposal Submission Date:
Commencement of Concession:
June 24, 2004
August 8-19, 2004
January 19-20, 2005
April 13, 2005
June, 2005
Please check back for updates!
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CPCS Transcom
72 Chamberlain Avenue
Ottawa, Ontario, Canada K1S 1V9
Tel: (613) 237-2500 Fax: (613) 237-4494
email:
ottawa@cpcstrans.com
Haya tunaweza kuendelea....