Truck port in the Zambezi Region looks promising
By John Saunderson, principal transport economist at Amir Consulting.
A feasibility study was recently conducted by Amir Consulting Services CC to determine the feasibility of an envisaged logistics and truck port development in the Zambezi Region.
The Zambezi Region is one of the key regions that is situated close to the borders of neighbouring countries Angola, Zambia, Zimbabwe and Botswana. As part of the fifth National Development Plan (NDP 5), logistics and related services are among other premised key areas that can spur economic development in Namibia.
The survey and consultations, combined with a literature review on parking demand factors, confirm that truck drivers often experience difficulty finding safe truck parking spaces in the Zambezi Region, and parking shortages are likely to increase in the future. These shortages can negatively affect highway safety, infrastructure condition, public safety, and quality of life.
Information about truck parking is a particular problem when drivers need to change plans in response to unexpected changes along their route, such as weather or congestion. These parking and information shortages have two impacts on business: first, they decrease driver job satisfaction, and second, parking in undesignated areas exposes drivers to a higher likelihood of either theft or cargo damage and even injury or death.
The demand for truck parking along a particular stretch of highway is driven not only by the general factors that induce demand, but also by other factors that affect the distribution of that demand.
For example, truck drivers’ desire to accommodate their natural sleep cycles results in greater demand for truck parking spaces at night than during the day. Also, Namibian Traffic Regulations prohibit parking at undesignated areas , encouraging commercial drivers to seek other locations for parking.
In the quest to respond to the provisions of NDP 5’s MASTER PLAN FOR DEVELOPMENT OF AN INTERNATIONAL LOGISTICS HUB FOR SADC COUNTRIES IN THE REPUBLIC OF NAMIBIA, the study was commissioned to ascertain the investment needs and financial feasibility for a truck/dry port along the Trans Caprivi Highway. The aim being to service truckers on their way to and from the borders of Botswana, the Democratic Republic of Congo, South Africa, Zambia, Zimbabwe and Botswana with the wider aspiration of serving landlocked countries in the Southern Africa Development Community (SADC).
Our analyses shows, that based on the average daily traffic of approximately 1400 vehicles a day (2019 figure) which includes a 14.5% heavy vehicles component, the entire project is feasible. The development would include a Fuel Station, Truck Parking Area, Bed and Breakfast Facility and Warehousing Facilities.
The addition to the GDP of the Zambezi Region is estimated at a minimum N$5,000,000 per year over a twenty year analysis period. Over the same period, the proposed development shows an Internal Rate of Return of 29.43%, a B/C Ratio of 3.32 and Net Present Value of N$51,000,000. The Zambezi Regional Council is aware of the proposed development and support it as it could greatly improve the livelihoods of families in the region. The total investment need is approximately N$38,000,000.
Note to investors:
We are now at the phase where Strategic Investment is sought and enquiries could be directed to [email protected] or call 081 77 55 160 and speak to John A Saunderson, the Principal Economist and Project Leader.