The 16.9 km north-south Line 1 line links Minelik Square with Kality and has 23 stations. A 17.4 km east-west line from Ayat to Tor Hailoch is also due to open soon. The two routes share a 2.7 km section between Lideta and Stadium.
This light rail service which includes elevated sections and tunnels, runs from Addis Ababa’s main industrial area on its southern fringe, through the trading district of Merkato to the historic center of Piazza.
I had a chance to review the affidavit Addis Ababa light rail construction process in the capital back in the summer of 2013. Project construction and the logistics handling of imported rail materials was well organized by the Chinese company. The track ballast section and some early rail laying were substantial as to the engineering design and initial construction delivery of product in the field.
One of the tunnel projects was a huge physical undertaking. Well done when I inspected it. No question that the Chinese companies can build rail projects very well according to plans.
PLANTING THE C”AN DO” FLAG IN FRONT OF AFRICAN RAIL PLANNERS
The east-west light rail line skirts the African Union’s headquarters. This location marks a great advertising opportunity of the Chinese capabilities with this line placement in front of the African wide headquarters.
Both light rail lines are built by China Railway Engineering Corporation (CREC).
CNR Changchun (now part of CRRC Corporation) has supplied a fleet of 41 low-floor vehicles, which have a maximum speed of 70km/h.
DEAL FINANCING TERMS
China is financing 85% of the $US 475 million project. It is a loan. Not a grant.
The government agreed to borrow the funds in June 2011 from the Export-Import Bank of China. The to be paid back rate was at the 6-month Libor interest rate plus 2.6 percent and a grace period of three years. This from Ethiopian Finance Ministry data.
State-owned contractor China Railway Engineering Corp. was the recipient of the export financing.
The financing of the remaining 15% is arranged from other sources by the Ethiopian government.
The 39-station network will be maintained by CREC and Shenzhen Metro Group under a $US 116m five-year contract.
The Ethiopian client for the continuing rail service is the Ethiopian Railway Corporation (ERC). The ERC rail company is a government corporation with a very small staff.
The first three to five years of light rail train operation will also be by the Chinese and not the ERC.
At one point back in 2013 the Ethiopians sent out a global request for a consultant team to build up the Ethiopian internal organization into becoming a world class operating management team. Then they could take on train operations management themselves. But that internal skill building process so far appears to not have happened.
Instead of internal managers inside the Ethiopian Railways Corp, the light rail service will be run day to day by Shenzhen Metro Group. For at least five years.
LIGHT RAIL TRAFFIC FORECAST
The light rail total system may eventually carry 60,000 passengers an hour, according to project manager Behailu Sintayehu.
Passenger FARES will be subsidized
The maximum one-way fare on the network is about $US 0.29 to $0.30 (cents).
The light rail line operating costs is projected to be about 1.5 billion birr a year to run. Fare box revenues will not cover all of that annual operating cost.
“The government is subsidizing this transportation system. This is not for commercial purpose, it’s for the public” said a local official source to reporters.
Sources also reported that the subsidy to allow such low passenger fares will in the long term have to come out of “expected” freight operating profits from the not yet completed new standard gauge international railroad line.
This cross subsidy practice might be a logical strategy if trucking companies subsidized the passenger buses on highways. But they do not. In the long term of daily rail to truck competition, this creates an advantage for truckers. It is incredible how state planners historically are blind to this integrated transportation fact of competition economics. The Ethiopians are no exception to such economic flaws in policy thinking. As the become better trained in economics, this may change their thinking.
THE LONG DISTANCE LINE
The freight and intercity passenger train new railway construction underway will connect the Ethiopia capital city with the port of neighboring Djibouti.
Service there may begin sometime in 2016 say current reports from Bloomberg.
Trains on this inter-nation line might also be operated by a Chinese contractor instead of by the local Ethiopia rail organization. Too early to tell yet. There is no published report on the success or timeline of building such skills inside the Ethiopian Rail Corp organization.
The long distance line will be standard gauge (1435mm) track. But not 33 metric ton or doublestack container train capable.
The Ethiopians have settled for a lesser freight train capacity that they received from the Chinese builders rather than adopting the North American commercial and engineering big train technology standards — and having the Chinese contract companies modify their engineering build to standards. The result will give the Ethiopian rail company a rail freight haulage capability equivalent to a 40 to 50 year old post WW-2 North American operating performance. This means missing their chance to become the best of class within the African world of freight railroads.
Electric power to supply these light rail and intercity train sets in a more dependable manner is to come from the Chinese financed Gibe III hydropower dam’s reservoir set for operation in 2016. The reservoir has started filling, with its 1,870 megawatts capable of almost doubling Ethiopia’s generating capacity. This will presumably allow for a dependable service day to day performance using straight electric locomotives rather then modern diesel-electric locomotives.
MISSED DOUBLESTACK CONTAINER OPPORTUNITY
With electric power from overhead wires catenary systems, the overhead clearance for doublestack container trains could be restricted. This overhead wire electric system as currently designed as to height above the top of the rails is another rail marketing (commercial business competition) flaw that could have improved. How? By increasing the wire height to more than 6.7 meters above the top of the rail. That would allow doublestacking container trains to have a far superior cost per container advantage in direct competition with highway trucking. In the US that rail rate advantage can be as large as 50 cents to $1.40 per container moved kilometer.
These simple manmade engineering design changes would have given the resulting rail line a superior economic advantage against long haul trucking.