RIVER TRANSPORT IN CAR

UNCLAS BANGUI 000102 E.O. 12958: N/A TAGS: EWWT EAGR ECON CT CG CF SUBJECT: RIVER TRANSPORT IN CAR ¶1. 1. (SBU) SUMMARY: Despite its abundant water resources, the CAR has a very limited river transport network. The goods transport on the Oubangui River, very profitable until the 1980s, became marginal as result of the poor maintenance of the waterways. Fuel continues to be the major import into the CAR, while cattle remains the major export to the two Congos. Although SOCATRAF is the major player of the sector, its limited equipment and poor infrastructure constitute its main constraints. END SUMMARY. Potential ¶2. (U) The Central African Republic is drained by two river systems; the Congo basin flowing into the Congo River and the Chadian basin flowing into Lake Chad. The major rivers of the Congo basin in Central Africa are the Oubangui, the Sangha and the Lobaye. The lower Oubangui River from Bangui to Brazzaville and Kinshasa is the country's principal waterway. The 1,200 km Oubangui-Congo route benefits from a more or less navigable period of 8.5 months while the Sangha and Lobaye are navigable 7 and 5 months, respectively. The Sangha River, one of the Congo's major tributaries, allows traffic of 25 to 30-ton small boats from Bayanga located in southern CAR to Mossaka and Ouesso in Congo Brazzaville. The upper Oubangui navigation is only possible for 3 or 4 months from Bangui to Mobaye located 378 km in the east. ¶3. (U) The Chadian basin waterways' major river is the Chari. The Chari River is the principal Chad Lake tributary, representing 95% of the basin's water supply. It is navigable year-round only with small boats. According to the Deputy Director of SOCATRAF, the major Central African river transport operator, the Chari River's other important tributaries such as the Bar-Aouk, Bamingui and Ouham Rivers could be navigable if properly maintained, despite obstacles such as sandbanks, mud banks and reefs. CAR lacks river port ¶4. (U) Bangui is the principal port in the Central African Republic, and is composed of three different facilities, including the Upper Port, Lower Port and Fuel Port along the Oubangui River. Bangui's fuel port is specifically designed for petroleum storage. Nonetheless, substantial loading and unloading activities of various goods including palm oil, fish, meat and other food products sold on Bangui markets takes place in Zinga, the second largest port after Bangui, located 75 km downstream at the intersection of the Oubangui and Lobaye Rivers. There is no other port on the Oubangui River, nor on the Chari River and its tributaries. The Sangha River's main ports are located in Nola and Salo. River transport took root during colonial era ¶5. (U) River transport enjoyed significant development during the colonial era until 1969, with private, or sometimes public, French companies operating in the sector. River transport development work changed to African ownership when the French-owned Compagnies Generale de Transports en Afrique Centrale (CGTAC) was nationalized in 1969 and became Agence Centrafricaine des Communications Fluviales (ACCF). After ten years of operations ACCF faced serious management problems. It was privatized and SAGA Transports, a French company bought 49% of the share capital. The new company became the present-day Societe Centrafricaine des Transports Fluviaux (SOCATRAF). Since 2005, SOCATRAF has been controlled by another French company, BOLLORE, with 66% ownership, the Central African Government and local private investors holding 15% and 19% respectively of the shares. Various river transport partners failed to perform properly ¶6. (U) The Ministry of Transport and Civil Aviation shapes the Government's river transport development policy and strategy in coordination with various stakeholders, including SOCATRAF, the Service Commun d'Entretien des Voies Navigables (SCEVN) and other regional partners. The SCEVN is a common entity to the Central African Republic and Republic of Congo-Brazzaville, and is tasked by the two countries to dredge the Oubangui, Congo, Sangha and Lobaye rivers, as well as to mark the routes, and update information and maps along the sub-region's waterways. SCEVN's major revenues come from river transport taxes and renting miscellaneous equipment and services to other river operators. The SCEVN's revenues remain insufficient, which prevents it from maintaining the waterways properly. ¶7. (U) SOCATRAF is the major river transport operator with more than 210 staff members, vital equipment and infrastructure to transport passengers and various goods. It also has good connections in the sub-region. Although SOCATRAF is the major river transport player in the Central African Republic, it does not have the monopoly of river transport. Other operators include small artisan companies operating with pirogues equipped with outboard motors. They are usually involved in passenger but also goods transportation. This serves villages and cities along the Oubangui, Sangha or Lobaye rivers. However, passenger transport demands remains unmet due to SOCATRAF's limited capacity for passenger ferries. ¶8. (U) The sub-regional river operators are ATC in Congo-Brazzaville and SONATRA in the DRC. ATC operates on the Oubangui and Congo rivers, transporting passengers and various commercial goods. We understand that ATC's infrastructures and fleet experienced serious destruction during the civil war that took place from 1998 to 2000 in Congo Brazzaville. SONATRA is the major DRC river transport operator and plays the same role as SOCATRAF in the CAR and ATC in Congo Brazzaville. SONATRA has an important fleet, specifically adapted to the navigation on Congo River, which has more water volume and faster flow compared to the Oubangui. River transport progressively marginalized ¶9. (U) Until the 1970s, river transport facilitated around 80% of the country's commercial exchanges. During the 1980s, at least 76% of external transactions used river transport coupled with a rail link from Brazzaville to the seaport in Pointe Noire, while 22% used roads and 2% airplanes. Wood, coffee, cotton, tobacco and various products were exported via the Oubangui River as well as all manufactured products entering the country. Starting from the 1990s, deteriorating river transport services in the Brazzaville port in particular combined with the political crisis in the two Congos led the Central African exporters of various products to abandon waterways and to favor the Cameroonian road to Douala's port, despite high costs. Wood exporters were the first to make this decision after their timber stocks were abandoned in Brazzaville port for several years without reaching Pointe Noire. Many of these logging companies even built their own roads in order to reach Douala. According to officials at SOCATRAF, the main products exported via river transport at this time are cattle and livestock, which are in demand in Brazzaville's and Kinshasa's markets, while boats carry fuel and cement from Kinshasa to the CAR. During 2006, SOCATRAF transported more than 5,400 cattle to the Congo markets. Their statistics show that out of a total of 49,211 tons of imported goods, fuel represents more than 81%. Fuel Problems ¶10. (SBU) The Sangha River's main port in Salo has an important fuel storage facility. However, this fuel storage facility is not stocked, putting the country at fuel shortage risk. The Central African Government adopted a decree in December 2005 requiring that at least 80% of fuel imported into the country be transported by via river and 20% by road from Cameroon. The rationale behind this decision was to guarantee the country's fuel supply at a continued low cost. Nonetheless, the CARG and the Total company have been negotiating over the first part of 2007 on the company's profit as measured per liter, negotiations which have stalled after the CARG accused Total of negotiating in bad faith. The Government also accused Total of neglecting storage facilities in Bangui and in the north of the country, accusations that date to previous Petroca fuel storage projects which Total did not complete. ¶11. (SBU) COMMENT: Whatever the value of the CARG's arguments against Total, the conflict clouded the business environment in Bangui, and has brought suspicions that the one major European airline in the country would stop flying to C.A.R. because of the lack of reliable fuel. Our understanding is that the CARG/Total dispute is now resolved. END COMMENT SOCATRAF is facing serious constraints ¶12. (U) Though SOCATRAF controls most major river transport activities, most of its equipment is outdated. It also lacks modernized ports. Zinga port, located 75 km from Bangui, is the only port on the Oubangui River before Brazzaville. Many of SOCATRAF's equipment and infrastructures in Bangui were destroyed during the mutinies the Central African Republic experienced in 1996 and 1997. Also, the decrease in the river traffic in favor of the roads impacted and will continue to impact negatively the profitability of river transport. In addition to its limited infrastructure and equipment, it is also facing the impossibility of navigation from Brazzaville to the sea port. As the various military forces' harassment on the rivers are concerned, officials at SOCATRAF noted that it decreased significantly on the Central African portion of the river while their boat crews continue to report continued harassment in both DRC and Congo-Brazzaville. Encouraging prospects exist, but... ¶13. (SBU) According to the deputy director at SOCATRAF, prospects in the river transport are encouraging. European Union and France granted SOCATRAF via the Central African Government respectively Euros 4 million and 5 million over three years for port infrastructure improvements and acquisition of new equipment. He noted that new development activities in the mineral sector (gold, diamond and uranium) would contribute to increase the country's demand of fuel. As evidence, he mentioned a special request of 28,000 m3 in 2008 from Aurafrique, a Canadian mineral company operating in Bambari area. Uramines, formerly a South African firm and recently bought by the French mining parastatal Areva, is exploring uranium in Bakouma, and expressed its need for substantial quantity of fuel for their operations in the coming years. However, these companies are facing their own disputes with the CARG over the terms of their agreements. COOK