RESIDUAL BENEFITS OF TRANSSHIPPING GUINEAN IRON ORE THROUGH LIBERIA - News carried through FPA quoting the NIC that a deal is finally being concluded to have Guinean iron ore from the Zogota & Simandou Blocks 1 & 2 Concession ( the worlds largest high grade iron ore deposit) in Guinea go through Liberia for shipment out of Buchanan is welcoming. This project should offer much needed construction jobs for Liberians in the rail, port development and the additional rail road operations. Other than taxes and fees which were the prime focus of the acting Chairman of the NIC there are real sustainable benefits of that deal that government should plan to capture: 1. Reversed Logistics - The Guinean concession will requirement heavy construction works and the mass movement of equipment inbound. How does the government plan to accommodate the handling of such a movements in view of port reception, warehousing, local procurement etc. 2. The easy access this rail corridor provides to Guinea relative to travel through Conakry will lead to the use of the same route for movement of the large number of expatriate personnel who will be involved in the Guinea mines, their belongings and supplies. This means a passenger and cargo rail facility must be envisaged and roll out to meet this demand. This also provides great opportunity for increase in passenger transit at Roberts International and contrary to expert 9NICO Steward Scott) predictions of low demand at RIA, the projection for passenger travel through RIA associated with the Guinea project is a major selling point for the attraction of private investment into the development of RIA. It is my hope that the Government of Liberia will solicit unconventional thinking into developing for the people of Liberia an integrated logistics system that captures the high value of the inclusion of such a massive mining undertaking and all the associated activities through our country. Handled properly this could be a major economic boost for our country. The focus of our economic planners should go beyond taxes,fees and social development funds. While those are easy to cultivate, they are but a very small part of the pile that Liberia could benefit with respect to the huge economic activities that the use of our transit unveils. (Image, courtesy of BSG Resources, a joint venture with Vale)
Posted on: Mon, 26 Jan 2015 02:41:23 +0000
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