Rising fuel prices and truck-based shipping expenses are spelling trouble for U.S. policymakers, who now are exploring ways to strengthen, as an alternative, new highways, commercial railways and ports. Specifically, the federal government is taking action through an endeavor known as the "Sub-Saharan Africa Trade Corridor Transportation Initiative."
Conflict stemming from elections in Kenya -- and the increased time its takes to transport goods in and out of neighboring countries -- purportedly has caused the governments of nearby Uganda and Rwanda to begin rationing fuel, according to a federal planning document that The Peacock Report has located.
"[T]he cost of shipping to the Port of Mombasa has increased 25% since the political stalemate," according to the original solicitation document. "Costs are expected to continue to rise until the power sharing accord has been reached. The cost implications for Uganda and Rwanda are tremendous and will constrain these fragile economies even more. Therefore, alternative transport corridors are a necessary investment for the region."
In order to alleviate these fuel shortages while addressing the concomitant impact on the [Sub Saharan African] economy, the U.S. Agency for International Development (USAID) recently awarded a $94,000 contract to a private firm to assess the situation -- and to report back to USAID on whether U.S. taxpayers should bear the brunt of more significant "investments" into that region.
Interdisciplinary Research Consultants (IdRC), an international consulting firm with offices in Jordan and the U.S., will develop a preliminary plan to help modernize, among other possibilities, the East African Central Corridor. The original plan for the corridor, which links Tanzania and Rwanda, was to facilitate the transport of gold and nickel from inland mining operations to main ports. The corridor still may be expanded to Burundi, Uganda, and the Democratic Republic of the Congo, the document says.
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