It is reported that Zambia’s neighbors, Namibia and Botswana are courting private companies to build the envisaged Trans Kalahari Railway line stretching from Mmamabula coal deposits in landlocked Botswana's hinterland to Namibia's deep water port of Walvis Bay to boost coal transport.
Both governments will soon tender for private firms to construct the railway line whose primary role is coal transport from Mmamabula. It is not clear how much the cost of building the railway line would be.
The Namibian government said that a tender would also soon go out for the construction of a coal export terminal at Walvis Bay. The Windhoek authorities say an agreement on the construction of the rail link would be signed with the Botswana government end of October.
According to a report, a bi lateral MoU with Botswana would also be expected to cover the construction of a coal export terminal at Walvis Bay.
The World Bank has been funding a pre feasibility study into the rail line which is expected to be completed in October this year. The Trans Kalahari rail link is vital for Botswana's ability to unlock the potential of its coal resources.
Botswana, a landlocked country is preparing to start mining the Mmamabula coal deposits but would not be able to export the coal through South Africa as there is no capacity at Richards Bay.
South Africa's rail network system would also not be able to transport coal from Botswana. Exporting the coal through Mozambique's Maputo port has also been ruled out as it means going through three countries, a major complication due to the fact that coal raises environmental concerns.
The only viable option is taking the coal through Namibia through the proposed Trans Kalahari railway line, a natural progression is given that the two countries already have the Trans Kalahari highway a major trade artery which extends to the deep water port of Walvis Bay.
Cabinet resolved that for the sake of transparency and good governance, an expression of interest on the development of the Trans Kalahari railway link be advertised in the international media during September. Cabinet also approved the joint appointment of a consultant by the Namibian and Botswana governments to prepare the terms of reference for the development of the railway line, the Namibian government.
The Namibian cabinet said that once the results of the pre feasibility studies are made public, terms of reference would be advertised and selection and short listing of successful bidders would be done.
Namibia said that by January 2011 successful bidders would be announced. According to initial estimates the railway line could cost up to USD 10 billion. Cabinet also directed that the proposed development of the project should be done with a rail gauge that is currently in existence in Botswana and Namibia to ensure compatibility with the existing infrastructure.
Botswana, known for its diamonds has more than 200 billion tonnes of coal reserves and the Mmamabula coal reserves are seen as the panacea to the country's and the region's power shortage woes.
Much of the coal from CIC Energy's Mmamabula mines will be consumed domestically but Botswana hopes that a large proportion would also be exported to China and India.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
