ADB unveils Southern Africa plan.

Transport costs in Southern Africa are generally high and can account for as much as 30% to 40% of the total final value of products, according to Economic Integration in Southern Africa, an Executive Summary by the African Development Bank.

Regional co-operation in transport and communications is of vital importance to the economies of Southern Africa, the report points out, adding that six of the 11 countries in the region are landlocked, requiring effective links by rail and road to and from seaports for the efficient movement of their foreign trade. Maritime countries, meanwhile, need to obtain maximum advantage from their port and rail services to improve foreign-exchange earnings. In the field of air transport, most national airlines are in dire need of rationalisation to avert financial collapse; regional co-operation is an essential part of the solution, the report suggests.

In the field of telecommunications, effective regional links are crucial for stimulating economic exchange within the region.

Southern Africa is basically well endowed with transport infrastructure. Many major investment programmes have recently been completed or are nearing completion. There is no apparent need for new investment in new railway links, the report concludes, because spare capacity exists on the region's railways as a whole. In Angola and Mozambique, rehabilitation of existing infrastructure is a priority, but progress depends on the security situation.

The more immediate requirements are moves towards standardisation, harmonisation, regional institution-building, deregulation and more competition to ensure better use of infrastructure and lower costs for services. The reasons for the high cost of transport in Southern Africa include these:

* the relatively small volume of traffic and the uneconomic scale of operations;

* the inefficiency of operations; and

* the inefficient procedures for crossing intraregional borders.

The potential for gains through regional co-operation is unlikely to be realised unless transport policies of each participating country place more emphasis on accountability and competition between operators.

Loss-making airlines

The region's airlines are in particular difficulty. In all, Southern Africa is home to 21 airlines providing scheduled passenger services and to eight freight lines. Each country of the Southern African Development Community (SADC) has its own national carrier, and all except Namibia's show significant losses each year, requiring state subsidies amounting to between 3% and 8% of GDP. The region's only major international carrier, South African Airways, also makes a loss.

Southern Africa cannot support this number of operations if they are to be profitable. A major reorganisation of airlines on a regional basis is needed to ensure efficient operations.

Past efforts at regional co-operation have had only a limited effect, the report acknowledges. Conflict in Angola and Mozambique disrupted major transport arteries. South Africa's pariah status meant that planning for transport and telecommunications co-operation had to take place without regard for the reality of some of the region's most vital links.

Lack of efficiency

Regional transport organisations like the Southern Africa Transport & Communications Commission (SATCC) and Comesa's Transport & Communications Programme have been skilful in mobilising donor funds for transport and communications projects, but they have had little impact on operational efficiency. SATCC has no executive powers and provides only a forum for collaboration and discussion. One of its original objectives - to reinforce the isolation of South Africa - is no longer relevant.

SATCC and Comesa have responsibilities in the SADC region which overlap and compete.

A new strategy

A new strategy for regional co-operation in transport and telecommunications is needed for the post-apartheid era, the study concludes, and the following three points need to be considered:

* Transport and communications should be seen as part of a wider effort at regional co-operation. A new institutional framework for regional co-operation will probably take some time to emerge, but it will need a transport and communications arm, i.e., a sectoral supranational body to which national governments must be prepared to relinquish some control. In advance of the establishment of such a new regional institution, work should begin on rationalising the activities in the transport and communications sector of Comesa and SATCC, taking into account the contents of SACU's Memorandum of Understanding on Road Transport.

* The SADC countries should engage South Africa in discussions on a regional institutional framework for transport and communications either formally or informally as soon as possible. This requirement is essential if optimal planning is to be undertaken for infrastructural investment and standardisation of equipment.

* Individual governments should proceed as rapidly as possible with reform of their domestic transport and communications policies. The reforms can be achieved through deregulation, commercialisation and/or privatisation of parastatal corporations, by restructuring the public sector's role, by increasing the scope of the private sector and by constructing a legislative environment which promotes both competition and accountability.

Ultimately, the transport and communications sector should contain these three tiers:

* a supranational body;

* individual government departments in member countries; and

* the operators of transport, telecommunications and postal services.

Supranational body

The role of the supranational body would involve policy-making and harmonisation, policy dialogue and strategic thinking, It would be concerned with physical infrastructure, a legal and regulatory framework and operations.

The physical infrastructure would concern the co-ordination and the planning of investment in new capital projects and rehabilitation and maintenance projects. As the regional network is generally adequate, emphasis should be placed on rehabilitation and maintenance, the report suggests.

The legal and regulatory framework would concern the implementation of the rules of competition and the setting of standards.

Operations

The operations aspect would concern the establishing of a suitable environment for efficient operations, mainly through strategic policy issues as well as policy dialogue with governments and operators.

The role of individual government departments would be to ensure implementation of policies and would include in particular the development and maintenance of the physical infrastructure, the legal framework and the operation of the sector, as well as steps to assure regional co-operation, by seeing that national policies conform with regional policy.

The operators could be either regional or national. At regional level, they could be possibly a regional railway authority and a regional airline. At national level, they could be commercialised parastatals or private-sector companies.

The immediate emphasis of efforts at regional co-operation should be on improving the operating environment. This goal could be achieved by ensuring the following:

* that available infrastructure is being efficiently managed and operated;

* that a competitive environment exists both intermodally and intramodally which permits efficient multimodal combinations of transportation services in a complementary fashion;

* that the transport and communications sector is deregulated quickly and that parastatal corporations are commercialised and possibly privatised, so that they can function according to market norms. The basic role of governments should be to create an enabling environment, leaving private operators, suppliers and contractors to provide services and to regulate themselves, possible through trade associations;

* that intermodal competition takes place according to the principle of cost recovery, involving a system of full user charges;

* that urgent attention is devoted to human-resource development at all levels from management and administration down to technical and artisan occupations; and

* that the region moves towards standardisation of equipment.

South African shipping company goes continental in Europe

THE SOUTH AFRICAN shipping line Safmarine has changed the name of its European owner's representative office. Safmarine (UK) Ltd has disappeared, and in its place has appeared Safmarine (Europe) Ltd.

"The change of name reflects the company's broader involvement in the European marketplace," Safmarine explains.

London remains the headquarters for Safmarine (Europe)'s operations and activities, both in the UK and in Continental Europe, including the Mediterranean. Comments Peter Butland, Chief Executive of Safmarine (Europe), "Safmarine has long historical connections with the UK, and it continues as one of our largest markets. The change of name, however, reflects our increasing focus on the important Continental European countries. Although Safmarine (Europe) is located in London, the whole of Europe is our marketplace, and this was not reflected in our previous name."

Liner services

Safmarine operates regular liner services between South Africa and the UK/Continental Europe and is a member of the Europe Southern Africa Conference and the Southern Africa Europe Container Service (SAECS) consortium.

Safmarine's agency functions are performed in the UK by ASECO (UK) Ltd and in Continental Europe by its SAECS consortium partners as follows: DAL in Germany, Nedlloyd in the Netherlands and France, CMBT in Belgium, Lloyd Triestino in Italy, Witty in Spain and ASECO in Portugal.

Namibia joins Intelsat

NAMIBIA HAS BECOME the 129th member of the International Telecommunications Satellite Organisation (Intelsat).

Bo Eklof, Managing Director of Telecom Namibia, signed the Intelsat operating agreement in Washington in December. Telecom Namibia thus takes an initial investment share of 0.05% of Intelsat.

"Full participation in Intelsat promises significant benefits for a growing country such as ours," notes Hosea Angula, Chairman of Namibia Post & Telecom Holdings, who attended the signing ceremony. "Intelsat's global satellite system offers unrivalled connectivity and service reliability, which will prove crucial for our national development."

Intelsat owns and operates the world's only global communications satellite system. With 1992 revenues of US$622m, the Intelsat system provides transoceanic, regional and domestic telephone and television services. It also offers, via a 20-satellite global system, business services such as international video, teleconferencing, facsimile, data and telex.

The organisation plans to deploy 14 new satellites over the next three years, including the Intelsat 803 and 804 satellites, which are to be launched into space in 1996 by the European Ariane 44P rocket, under the terms of a contract with Arianespace. The 803 and the 804 will serve the Indian Ocean/Asia/Pacific Ocean region and the Atlantic Ocean region, respectively.

At its next meeting, in March, the Intelsat Board is to decide which launch vehicle it will choose for the 805 satellite, which was ordered in September 1993.

Meanwhile, the launch and deployment of the 702 satellite is scheduled for the end of February 1994. From its position at 359 degrees east longitude, it is to provide service to Africa, the Middle East, the whole of Europe and the east coasts of North and South America. The satellite that has occupied this position, the 512, is to be redeployed elsewhere.

Juggling slots

Over the next few years, Intelsat is to relinquish some orbital slots and is to register for the use of new ones. For instance, Intelsat operations at 63 degrees east are to be transferred to 62 degrees east after the completion of the International Telecommunications Union (ITU)'s co-ordination and notification procedures for 62 degrees east and 64 degrees east.

Intelsat is to take this action - and is to register other networks - in order to make better use of the orbital arc, to enhance regional coverage and to create additional slots for future satellites. Intelsat's revenue for 1993 is estimated at US$665m.