205
PUBLIC RECORD OFFICE
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Reference :—
885/26
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
18
16. The alternatives before the Government may be put as followe:—
A. To drop the Government scheme and to accept the Grogan-Buchanan-Boulton
scheme with such modifications of the terms as it may be possible to secure. B. To drop the Government scheme and to allow the other scheme to proceed as a private one without any Government guarantee, subject to such general regula- tions (including maximum tariffs) as the Government may be able to impose by legislation.
C.
1.
To proceed with the Government scheme in the expectation that the Mbaraki scheme
will be immediately dropped or ultimately frozen out."
"
To proceed with the Government scheme and to encourage the Mbaraki scheme as at
A, or B.
17. The following remarks may assist in arriving at a decision in the matter:-
(1) While Messrs. Boulton have asked for a Government guarantee for the debenture issue, it cannot be assumed that they will not proceed without it: in fact they spoke of sending out a small staff early in June, and the Government guarantee only seems to have been suggested at the eleventh hour as an afterthought, (2) It is now recognised at almost every port in the world (except those developed entirely by a railway company such as Southampton) that it is very desirable that control should be in the hands either of the Government, or the Municipality, or a Special Port Authority with full representation of both the Government and the Municipality, The port of Mombasa has been developed by the Govern. ment railway and the control should be retained as far as possible by the Govern- ment. If the Mbaraki scheme is carried out, port dues to meet the expenses of the Port Authority could be charged in addition to the cargo dues payable to the dock company.
5) Even if the East Africa Protectorate and Uganda should develop as rapidly as is hoped, several years must probably elapse before the traffic is large enough to enable both a two-berth quay at Kilindini and a similar quay at Mbaraki to pay for themselves, and it seems likely that for a great many more years further extensions of either port could only be carried out to the detriment of the other.
14th May, 1920.
APPENDIX.
H. J. READ, Chairman.
Noras BY MAJOR H. B. Taylor, March, 1920, for the RevISION OF ESTIMATES CONTAINED IN HIS
LETTER TO CHIP SECRETARY, NAIROBI, DATED 15TH Ocтoszr, 1913.
Capital Oost.
Probably cost double of that estimated in 1913, so £1,400,000 would be required for four berths.
Suggest that for the present two bertha be com- pleted, and construction of a third berth proceed so far as the expenditure of £1,000,000 will permit.
Maintenance Charges, &c.
£
Interest at 6 per cent. on £1,000,000 Binking Fund, 1 per cent. on £1,000,000 Maintenance at 2 per cent, on £600,000
60,000
10,000
12,000
Salaries of Port Staff
5,000
Labour and handling of :-
150,000 tons Export at 1s.
100,000 tons Import at 14. 6d.
7,500 7,500
Total Harbour Expenditure
£102,000
Revenue.
£
By Consolidated dues on 905,000 tons as per Schedule No. 1 of 1913, at 5d. per net ton per 24 hours and half shipping on 2nd day
30,000
By Cargo dues, Landing cranage, &c.:—
150,000 Export cargo at 51.
37,500
100,000 Import cargo at 7s. 6d.
37,500
By Miscellaneous Revenue
5,000
£120,000
Traffic Estimates.
(1) 150,000 tons Exports. (2) 100,000 tons Imports.
WAL
(1) In 1913 a figure of 100,000 tons of 20-cwt. was accepted as a fair estimate for 1915-16, but stopping development and even forcing the closure of work already in hand, and with the great shortage of shipping the export tonnage has kept to a figura about half this estimate, but we can safely accent 150,000 as the probable figure in say three to five years' time, or possibly earlier if the extension of Railways and the opening put of a new country by the settlers prospers as it should.
(2) The figure of 100,000 taken for Imports is the average tonnage of the last three years. The War, no doubt, is the cause of the heavy increase, but the estimate of 70,000 made in 1913 for 1915-16 might, I think, safely be put at 100,000 for 1922-23.
Cargo Dyes.
I
The proposed charges, 6. Exports, and 7. 6d. Imports, should be readily met by the trade.
The prosent cost. I understand, are something like 20. per ton. Terminal charges average Rs. 2.20 per ton weight, and at 2. this means 48. 9. Lighterage per ton is Rs. 3 per ton at Bill of Lading tonnage, i.e., weight or measurement. Average import cargo equale 80 cubic feet, and export 90 cubic feet. (Coffee 80, Cutton and Sisal 85, Hides 160). There- fore, average lighterage cargo charges Rs. 64 equal 12s. 6d. Add present Railway terminal to this, we get no less than 17s. 3d. per ton of Import and Ex- port exclusive of incidental loss, say 2a. 9d., or a total of 20s. per ton at Port.
Traffic census of Uganda Railway wanted and possi bilities of future and to see the Main Line carrying capacity is kept well ahead of development of British East Africa, Uganda, &c.
19
(III.)
REPORT OF SUB-COMMITTEE TO THE MAIN COMMITTEE ON THE PROPOSED CONSTRUCTION OF A GOVERNMENT RAILWAY IN NYASALAND FROM LUCHENZA TO LAKE NYASA.
The Sub-Committee, consisting of Sir H. Read, Sir J. Eaglesome, and Sir W. Mercer, with Mr. Esechiel as Secretary, met on the 2nd July to consider this question, which was referred to it by the main Committee at the third meeting on the 20th February. The consideration of this matter was left over till the more urgent question of Kilindini Harbour had been disposed of,
2. Mr. Bottomley, of the Colonial Office, was present at the meeting.
3. The facts in connection with the proposed railway are fully set out in the annexed memorandum by the Secretary. It is only necessary to add that within the last few days Mr. Waring, the Consulting Engineer, who estimated the cost of the line in August, 1919, at about £1,400,000 (see paragraph 10 of the memorandum), has stated that at present prices it would cost about £2,000,000.
4. The members of the Sub-Committee are unanimously of opinion, on the information available, that the construction of the line at the present time would not be justified. We have come to this conclusion with great regret, as an extension of the present railway system to Lake Nyasa is greatly needed for the development not only of the territory which it would directly traverse but also of the regions around the Lake, including North Eastern Rhodesia and the south-western portion of Tanganyika Territory. But it is necessary to face the finance of the proposal. It would seem from the figures given in paragraphs 34 and 35 of the memorandum, amended in accordance with the increased estimate of cost quoted above, that net annual receipts per mile would be required five or six times as large as the amount obtained from the existing railways in 1917 or 1918. There is no evidence to shew that so favourable a result could he obtained. We can only conclude, therefore, that the line would not pay, or even nearly pay, its way, if constructed at the inflated prices of the present time, and with money horrowed at the high rates of interest now prevailing; nor is the present financial position of the Nyasaland Government such that it could undertake to make up from its revenues the deficit on an annual loan charge approximately equal to a year's pre-war revenue.
5. In the space of a few years, however, the position may have changed in several respects. It may be hoped that both the cost of construction and the rate of interest will be considerably lower; the liability of the Nyasaland Government under its guarantee to the Central African Railway Co. will terminate in 1923, and the burden of its liability under the agreement with the Trans-Zambesia Railway Co. will be easier to estimate; while the question of modifying inter- national agreements so as to leave the Nyasaland Government free to increase its customs duties will have been settled. It is also understood that the Protectorate may before long be annexed so that the Government will be in a position to issue loans under the Colonial Stock Acts.
6. We accordingly recommend that the construction of the proposed railway should be postponed until the conditions are more favourable.
7. We are informed that with the consent of the Treasury it might be possible to allot to Nyasaland some £1,500,000 altogether out of the advances authorised by Parliament, but not yet paid, under the East African Protectorates (Loans) Act, 1914. We have therefore considered whether it would be advantageous (1) to construct in the first instance a "pioneer" line, which would be improved and completed as the traffic justified it, or (2) to construct only the earth. works etc. for a complete line, leaving till later the work requiring much imported material We do not advise either of these courses. The expenditure in the latter case would be consider-
able and would be unproductive until the completion of the line, for which no date could at present be fixed; while the character of the route, involving much bridge work, does not easily lend itself to the construction of an inexpensive pioneer " line.
8. We suggest, however, that it should be considered whether a portion of the money available under the Act of Parliament referred to above could profitably be devoted to the construction of a motor road to Lake Nyasa, with steamer landing facilities at the lake terminus. It is understood that such a road already exists as far as Liwonde on the Upper Shire river, (on the way to North Eastern Rhodesia), and a road from that point to the lake, some 50 miles in length, might be well worth constructing in order to serve the area of the dry lake of Pamalombe and provide an improved outlet for traffic from the regions around Lake Nyasa until the time is ripe for a railway.
7th July, 1920.
26790
H. J. READ,
Chairman.
* No. 12, page 77.
B 7