CONGO-BRAZZAVILLE RESPONSE TO USITC

UNCLAS BRAZZAVILLE 000257 SIPDIS PASS TO USITC LSCHLITT; AF/C MASHRAF E.O. 12958: N/A TAGS: ECON ETRD ASEC CF SUBJECT: CONGO-BRAZZAVILLE RESPONSE TO USITC REF: STATE 85109 ¶1. Embassy Brazzaville is an unclassified post. There are no exports from Republic of Congo (RoC) in the products listed in reftel to the U.S. at this time. Information provided follows reftel request but as information on export processes is difficult to obtain, the information following focuses on infrastructural challenges to importing. ¶2. Physical infrastructure: Roads within the city limits of both the capital Brazzaville and the economic port city of Pointe Noire are in fair condition. There is no paved road connecting these two major cities. A railway system that was built in 1954 has not been maintained and transporting goods on the railway is a lengthy process as the train travels between the two cities only twice each week. Roadwork has been started but there are no immediate plans to repair the existing railway system. Imported goods are usually flown into Pointe Noire, taken by truck to Matadi in the Democratic Republic of the Congo (DRC),loaded on barges for transport to Kinshasa, and then have to be shipped over the Congo River for arrival in Brazzaville RoC. B.L. Harbert, an American firm that is building a new U.S. embassy reports that this process takes 37 days for goods to reach Pointe Noire from the U.S., an additional 18 days to get the container to Matadi, and another 32 days for a container to arrive in Brazzaville. Exported goods, mainly timber from the central region of Congo, is hampered by the same lack of infrastructure and is taken out through Cameroon. ¶3. Freight forwarders, such as Maersk Lines, may handle the shipment from the U.S. to Matadi. Once in Matadi, a French company, SDV, takes over the freight shipment and each 40 foot container costs approximately US$13,000 in freight charges from Matadi to Brazzaville. ¶4. Port capability: The Port of Pointe Noire has 12 berths and can handle 12 ships loading and off loading at one time. Equipment used to load and off-load is dated, rusted, and in poor condition. Harbert also reported many damaged containers due to the lack of proper equipment. The Port would use tree grapplers to 'grab' the containers and many were punctured in the process. Delays are frequent due to equipment failure. Fuel has been problematic lately also as the only refinery was closed for an extensive period for repair. ¶5. Electricity: RoC currently generates 106 mega watts of electricity in a country that requires a minimum of 421 gigawatt/hour. Electricity, sporadic at best, is purchased from the neighboring DRC. The state-owned company Societe Nationale d'Electricite (SNE) controls all electrical supply. ¶6. The RoC has very limited agricultural production. Ninety-eight percent of all food products are imported. There is no tourism sector in the RoC. U.S., French and Italian firms are active in the oil sector in Pointe Noire. GREGG