Ruanda, Urundi - Usumbura - Kigali Highway and Port of Usumbura Projects

Z-It o - REtLRJP TO R E S T R I C T E D RZ?ORTS DESK Report No. TO-134a WITHIN ONE WEE-K This report was prepared for use within the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT RUANDA -URUNDI REPORT ON THE PORT OF USUMBURA PROJECT June 17, 1957 Department of Technical Operations  CONVERSION RATES FOR BELGIAN AND BELGIAN CONGO/RUANDA - URUNDI CURRENCY 1 Belgian franc 1 Congo franc U.S. $1 - 50 francs I franc - 2 U.S. cents 1,000,000 francs - U.S. $20,000  RUANDA-URUID I REP ORT ON THE PORT OF USUJMBURA :PROJECT TABLE OF CONTThTS Fage I. INTRODUCTION ............................... 1 II. THE PORT OF USU1-4BURA ....... ................ 1 A. Service Area and Foreign Outlets ........ 1 B. Ownership and Administration ............ 2 C. Existing Facilities and Functioning ..... 2 III. TRAFFIC DEVELLOFPI ,TT AID THE NEED FOR ADDITIONTAL CAPACITY ........................ 3 IV. THE PROJECT .............................. ,4 A. Engineering Features .................... 4 B. Execution ............................ 5 C. Cost and Financing ...................... 5 V. ADDITIOITAL ' EqUIRED .................. 6 Y1. EXPECTED BENEFITS ....................... 6 VII. CONCLUSIONS AIND RECC;; L A'.' 01 IO;,S .7...... . . . . 7 Table 1 - Annual Traffic 1939-56 Table 2 - Exports and Imports by Nain commodities in 1955 Table 3 - Exports and Imports by months 1955 & 1956 Map  RUTANDA-URUNDI REPORT ON THE PORT OF USUMBURA PROJECT I. INTRODUCTION 1. This report is an appraisal of the proposed construction of a new port at Usumbura, the principal city of Ruanda-Urundi and. the main shipping centre for the countryts exports and imports. The report is the basis of a proposed loan of about $2.1 million to the Trust Territory of Ruanda-Urundi covering the estimated cast of materials, equipment and services originating outside Ruanda-Urundi, and required to carry out the quays and breakwaters for the proposed new port. 2. Most of the information contained in the report was obtained in the field by the Bank Mission visiting Ruanda-Urundi in October 1956, and additional information has been submitted subsequently by the Administration in Ruanda-Urundi and the Ministry of Colonies in Brussels. 3. IJo engineering investigations have been carried out in the field by Bank staff. The proposed new port has been designed by a well known authority on port construction, and the technical staff of the Ruanda-Urundi Public Works Service has a proven record of service within the Colonial Administration, where the standards are much the same as those of the Public Works Services in Belgium which are gooi. II. THE PORT OF USUTMBURA A. Service Area and Foreign Outlets 4. The major part of Ruanda-Urundils foreign trade passes through the Port of Usumbura, situated at the northern end of Lake Tanganyika (See map). Roughly one-third of the traffic through the port passes by way of C'igoma on the eastern shore of Lake Tanganyika through Dar es Salaam; about two-thirds go by way of Albertville on the western shore of the lake to the ports of Matadi in the Belgian Congo and Lobito in Portuguese Angola. Jhether goods are conveyed through eastern or western outlets, all traffic has to pass through the Port of Usumbura. 5. Other possible outlets for Ruanda-Urundi foreign trade are to the north, via the East African Railways to Mombasa, and to the west, via BEkaviu, Stanleyville and Matadi when the Bukavu-Stanleyville road has been completed in a few years' time. Both involve extensive road hauls to reach the rail and river arteries, and for this and other reasons, these routes will hardly become competitive in the foreseeable future. For an indefinite period ahead, therefore, the Port of Usumbuxa is likely to remain the centre of Ruanda-Urundi's foreign trade.  B. Ownership and Administration 6. In conformity with a convention dating bac!k to 1932, the responsibility for building port facilities at Usumbura is divided between the Administration of Ruanda-Urundi and the Compagnie des Chemins de Per du Congo Superieur aux Grands Lacs Africains (C.F.L.), a company with extensive railroad and mining interests in the Congo. The Ruanda- Urundi Administration provides the so-called infrastructure of the port, largely quays and breakwaters, while C.F.L. provides the so-called super- structure, which comprises the paving of the quays, the sheds, the port equipment and other installations. 7. C.P.L. was originally granted a concession in 1902 covering all shipping and rail operations in the Eastern Congo. Witlh regard to the Port of Usumbura, C.F.JL. is operating under a convention of 1932 between C.1.L. and the Belgian Congo. In conformance with ti'is convention, the port infrastructure is provided by the Administration, whereas C.F.L. has agreed to be resronsible for the maintenance of the infrastructture and for the provision and maintenance of the sup,erstructure. 8. C.F.L. operates the Port of Usumbura as an integrated poart of its system, of wirhich the port constitutes only a minor fraction. Consequently, tihere are no seoarate accounts for the port, since the bulk of its traffic is consigned on the basis of through-rates. Nominal port charges average about $1.00 n?er ton which is reasonable. 9. The corbined C.F.L. onerations are profitable, and the financial position of the Coi.raly arpears satisfactory. C. Existing Facilities and Tihnctioning 10. The present port facilities are inadequate and prevent efficient operations. They consist of one pier about 125 meters long on reinforced concrete piles, and one short wooden r?ier which has recently been cornoleted as a temporary addition. Most ships have to dock at the extreme end of the main pier where the derth is 15-18 feet. Both poiers are too narrow, and this stands in the wiay of effic-snt operations, and also causes certair hazards to labor. All roo-s ha-re to be moved on rail-supDported tractor-trailer units bet-e'-r - nio.r heads and the sheds, sometimes over distances exceeding 200 meters. 2 11. There are 5 sheds with a storage area totaling about 4,200 m Although some shortage of storage capacity may occur during peak move- ments in June-September every year, this situation is ---evented fiom becoming too serious during the rest of the year by strict reSulations, including heavily progressive storage charges. 12. Most of the ships on the lake, all of which belong to C.F.I. and range between 200-1,200 dwt., do not have their own tackle for loading and discharging. At present, the cargo handling equipment in the prort consists of five 24 tons crawler-type diesel cranes in good to fair conditions, two 5-ton outmoded stationary steam cranes, 2 forklift trucks, and a nurmber of tractor-trailer units mounted on rails.  - 3 - 13. Considering the inadcquate lay-out of the port, C.F.L. is on the whole -'aking the beet of a dil'ficult situation at present. However, with the steady growth of traffic, the situation is getting liore and :-ore serious in spite of round-the-clock operations. III. TRAiLFIC DEVEO14PIENT AHD TII NE-D FCR ADDITIONAL CAPACITY 14. Over the last five years the traffic through the nort hearly doublcd, reaching a total of 197,000 tons in 1956. 0f this, 39,000 tons were exports, and 158,000 tons i-ports (Table 1). 15. Exports consist of coffee, cassitcrite and other ores, cotton, cotton soed, oil and calke. Coffee alone accounts for -ore than two- fifths. Of the inports, tho :iost i^.znzortant singlc itc- is petrolour. products w.hich account for about one-fourth of the total tonncego. Othcr irmortant ite:-s are cc-cnt, iron, steel and --achinery, wood, clinker, and salt (Table 2). 16. Because coffee cxoorts are seasonable there is a distinct peak of traffic in July-August each year. In July 1956, for exarple, the rate of port traffic corresponded to an arnual voluLre of about 275,000 tons (Table 3). 17. Coffee exports -produce close to two-thirds of Ruanda-Urundits foreign exciange carnings, and are likely to rc--ain for a long tir-e by far the -ost i.-portant iten for" the foreign trade and cash income of the country. Any forecast of the probable ruture port traffic, theret'ore, depends pri-arily on the outlook for coffeo production over the next few ycars and the resulting carnings. 18. Ruanda-Ur-ndi is fortunate in having a high grade coffee which can be shipoed at a tina when cxports froi- the ,ajor supplying coultries are at a scasonal low. The, rarketing conditions for Ruanda-Urundi coffee are therefore favouroblc, and this, do-bined with the gcneral outlook for world rarbeet prices, should pro--ise fairly steady carnings fro-l. coffee, depending largely on the volu:-s available for exnort. Reasonably accurat esti-Rates on planting of new trees are available for the last few years, and indicate that the annual production of &recn coftfee is likely to increase fro-< about 15,000 tons today to about 20,000 tons by 1960, and -ay well reachl 30-35,000 tons by 1965, i.e. at least double the present level. 19. The reriaining foreign exchange earnings are rainly derived fror^ tin and other ninerals (about 25>o) and fror cotton and cotton seed oil, (about 7X). Whereas the extraction of tin and other r-incrals is not likely to expand -uch in the near future, cotton production :-ay wefcll be about one-third. ever its prescnt level in the early sixtios. The exports of rate earths anl othcr --inor iteTns ray also increase so-newhat.  20. In conclusion, it ao-ears that with expanding foreign exchange earnings from coffee and other exports, the volume of traffic through the Port of Usumbura is likely to continue increasing. Any forecast of the probable future port traffic is necessarily uncertain, but a total volume of about 250,000 tons of imports and exports might well bb reaclhed by 1960, and about 350,000 tons by 1965. Since the capacity of the existing port facilities is already severely taxed, the construction of the new port ap,pears well justified. IV. TiE PROJECT A. Engineering Features 21. The general plans for the port infrastructure - or the project - have been wor:;ed out by Professor K. Bollengier, the technical adviser to the Belgian Government for ports in Belgium and its overseas territories. Generally, these plans provide for about 450 m. of quay walls in two sections around an interior basin, the entrance of which is protected by breakwaters. 22. The minimum de-oth will initially be about 21 fRet in the entrance channel and about 18 feet in the inner basin. The levels of the lake can be controlled by a barrege comrpleted four years ago near Albertville, which will allow a minimum depth in the inner basin of about 21 feet if reouired. This is am=le for any foreseeable future requirements. 23. The prevailing winds are from the south-west and cause enough wave action to require protection of the port, particularly during the dry season. Exceptionally, waves can reach a height of up to six-seven feet as was last recorded in Aiarch 1956. The _ roposed -Protection consists of two breakwraters, one to the north about 265 m. long, and one to the south about 255 m. long. The southern breakwnater will consist oF a 130 m. extension of the existing concrete -ier iwhich i'uill be incorporated in a fill structure withi sheetpiling walls. The top of the breawraters will be about 1.50 meters above the maxilmum high water level, which seems sufficient. Very little, if any, maintenance dredging is exuected after the excavation of the entrance area between the breakwaters. The only dredger available in the lakce is stationed in Albertville, and could probably be counted on for occasional maintenance if necessary. Berthing facilities for tanrers carrying liquid petroleum products will be provided in the entrance basin along the northern breakwater. Two tankers of 300 and 600 dwt. are now being built Yfor C.F.L. 24. The quay walls will be a retaining wall construction with a total length of about 450 m. This appears adequate for the first few years following the completion of the new port, but leaves a rather small margin for further eZoansion in traffic, the more so since during peak months, the port may well hare to be worked close to capacity already around 1965. However, peak loads may always be offset for some time by  overtime work, and the layout of the port also allows for relatively low cost exnansion of the port basin both in an eastern and northern direcution. B. Execution 25. The contract for the conistruction of the project has been awarded on the basis of international comnetitive bidding. Bids were opened in November 1956 simultaneouisly at the M4inistry of Colonies in Brussels and at the Government General in Leopoldville. After examina- tion of the bids the contract was awarded to G&SICO, a Belgian construc- tion firm operating in the Congo. Summary information on the various bids has been submitted to the Bank, and the choice of contractor ao-pears to conform to sound engineering and financial principles. 26. The construction of the project is expected to take about 30 months and will be supervised by the huanda-Urundi Public Works Administra- tion, strengtbzned with specialized personnel from the section for inland watenvays in the Public IWorks Department in Leopoldville. C. Cost and Fir,ancing 27. All works will be carried out on the basis of lump sum prices, with an escalator clause for possible -rice increases for labor, supoer- vision, fuel and meterials. 28. The total contract price is about $2.3 million equivalent. Including 155O contingencies for possible price increases, the total cost of the -roject is about $2.7 million equivalent, which does not alppear unreasonable. 29. It is proposed that the Bank )zay for services, materials and equipment originating outside Ruanda-Urunli, whereas the Administra- tion for Ruanda-Urundi pars the local exnenditures which will mainly be for local labor. The Ruanda-Urundi Public Works Service and the Ministry of Colonies in Brussels expect local labor cost to total about 12-15 million francs, or about 9-11% of the total cost. Assuming 2Z for local cost, the Bank would meet about $2.1 million equivalent, and the Ruanda-Urundi Administration about $0.6 million equivalent of the cost of the project, including contingencies. The project has been included in the extraordinary budget, and it is exoected that the Ruanda- Urundi Admiinistration can crovide the necessary funds.  -6- 7. ADDITIO0NAL _WORKS REQrLIRED 30. In accordance with the convention between the Ruanda-lJrundi Administration and C.FTJJ., the plans and specifications for the super- structure will have to be approved by the Ruanda-IJrundi Public TWorks Service, which will also control its execution. In addition, the approval of the iMinistry of Colonies in Brussels will be required. At the moment C.F.L. has worked out only tentative plans for the superstructure which include three storage sheds with a total floor area of about 6,500 mi2, concrete and asphalt paving of the various areas in the nort, electric installations, and the provision of six electric cranes and a number of crawler-type carry-cranes aind forklift trucks. A tentative cost estimate for these works totals about Frs. 73 million, or about $1.5 million equivalent. It is expected that work on the superstructure would be finished about six months after completion of the infrastructure. 31. If a loan is made for the construction of the infrastructure, the 3ank would require adequate assurances with regard to the timely and proper execution of the superstructure. VI. EXPECTED BEI'EFITS 32. By eliminating the present shortage of capacity which is getting more and more acute as traffic increases, thne new port will keep Ruanda-Urrundils foreign trade moving smoothly. This is of vital importance to the country. 33. Adequate modern port facilities will also help to reduce the transuort cost of the Territory's foreign trade, both by eliminating most of the overtime work which is now taking place, and by ensuring a quick turn-around of ships. 34. Today's cost of the port labor is very cheap, averaging only about USW0.50 equivalent per eight-hour day, and about US$0.75 per man per eight-hour shift on overtime. However, local wages have increased rauidly over the last few years and are likely to continue increasing. Therefore, extensive overtime work might well tend to constitute an unreasonable financial burden on the operation of the port in a not-too- distant future. 35. There are no detailed statistics available to illustrate the present frequent delays of ships in Usumbura. Generally, C.F.L. records indicate that t-heir ships spend about 75p of the time in ports, and this is largely caused b'y the inadequate facilities in Usumbura. The -present rate of loading and dischlarging in Usumbura could be greatly speeded up with modern port facilities, and the ships would no loncer have to queue up for berthing syaze as is now the case.  - 7 - TI* 'rCLUSIL'_S AM RECMM!MIDATIM1S 36. The present port facilities in Usumbura which handle the bulk of Ruanda-Urundi's foreign trade, are inadequate, difficult to operate, and their capacity has already proved too small. Traffic is likely to o6ntinue increasing fairly rapidly, and the proposed construction of a new port therefore ap,pears justified. Modern port facilities would also help to keep transport costs down by reducing the cost of port labor and improving the turn-around of ships. 37. The infrastructure of the pro,posed new port consisting largely of protective structures and quays has been estimated to cost about $2.7 million equivalent and will be constructed by the Administration of IRuanda-Urundli. The general plans for the infrastructure, which have been worked out by the port adviser to the Belgian Government, a-ppear technically sound. 38. The superstructure, includin- the storage sheds, the paving of the port area, the cargo handling equipment and other installations, have been tentatively estimated to cost about $1.5 million equivalent and will be constructed by C.F.L., wMich maintains and operates all port facilities in Usumbura. The design of the superstructure will be controlled by the N-inistry of Colonies in Brussels, and by the Ruanda- Urundi Public Works Service which w%ill supervise the construction of both the infrastructure and sunerstructure. 39. The contract for the infrastructure has been awarded on the basis of international conmDetitive bidding. 40. A Bank loan of about S2.1 million representing the estimated cost of equipment, services and materials required for the infrastructure and originating outside Ruanda-Urundi, has been requested and. can be considered. In view of the type of project, a term of about20years, including a3year grace period appears suitable. The borrower would be the Trust Territory of Ruanda-Urundi, and the loan would be guaranteed by the KIingdom of Belgium. 41. A necessary condition for the loan would be that the Bank obtains adequate assurances about the provision of the port super- structure.  Table . Annual Traffic 1939-56 ( 1000 metric tons ) Exports Imports Total 1939 10 17 27 1940 12 16 28 1941 17 18 35 1942 18 22 40 1943 17 25 42 1944 15 43 58 1945 20 27 47 1946 28 30 58 1947 28 43 71 1948 27 45 72 1949 24 52 76 1950 21 68 89 1951 29 76 105 1952 29 96 125 1953 30 99 129 1954 29 137 166 1955 38 130 168 195 Pa 39 158 197 i/ Estimate based on actual traffic during first 9 months of the year.  Table 2 Exports and Imports by main commodities in 1955 Exports: 1000 tons Coffee 15.7 Cotton, cotton oil and cakes 6.9 Tin concentrates 3.5 Hides 1.2 Castor seed 1.1 All others 9.6 38.0 Imports: Petroleum products 36.9 Cement 17.0 Iron, steel, machinery, etc. 16.6 Wood 11.4 Clinker and gypsum 5.0 Salt 4. 9 Foodstuffs 2.4 Coal 1.3 Palm oil 1.') All others 33,5 Grand total 168.0  Table 3 Exports and. Imports by months 1955 & 1956 - ( 1000 tons ) 19 5 5 1 9 5 6 E=orts Imports Total Exports Imports Total January 2.5 7.5 10.0 1.8 11.7 13.5 February 1.6 8.7 10.3 1.6 11.8 13.4 March 2.3 9.7 12.0 1.6 15.2 16.8 April 2.1 11.5 13.6 1.7 13.2 14.9 May 1.8 9.7 11.5 2.2 12.0 14.2 June 2.1 10.5 12.6 4.3 12.5 16.8 July 5.4 11.4 16.8 8.C 15.1 23.1 August 6.6 12.4 19.0 3.8 15.7 19.5 September 5.4 10.1 15.5 3.5 12.2 15.7 October 3.7 12.8 16.5 November 2.2 12.8 15.0 N o t a v a i 1 able December 2.8 12.6 15.4  Kokitumbo o L ,ArpLUIO Bitmbo K.ic buco ngu Shongugu o 5\ \ ~~44 astrid-c ! zh g (t .RUANDA URUNDI I Noz \ ) _ ))t o~~~ubanza ) i \amvya \ / / = z _ zPrnmory roads Secondory roads Kitega Ruy gi BoLuidory between 1 < X U R a 0\X/fegJ Ruygl g j > Ruanoo and Uruni C ) t 3 1 f 2 O j c j >M o rs h e s 11111rA') //1 / STS/ /t; Z 0 20 40 60 5a 00KM Ci/ uoSP GUNENCH Scn!ey GIs e T EQUATOR ONGO K md AFRICA -TO,9UND- AS ~- Leopodoe FccncqU UR 01 'gorco oroo 4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~c A /l c i T N f K Do, es Sccorn AFRICA 2 ODH0ESIA M0AMBIOU FEBRUARY 1956 L N IBRD-246