Landlocked South Sudan hopes that the quiet Kenyan port of Lamu will become its gateway to the world's oil markets (Image credit: Jeffhubbard via Flickr)

By Paul Gabriel

 On 2 March 2012 political leaders from South Sudan, Kenya and Ethiopia came together at the Kenyan port of Lamu to celebrate the start of construction work on a US$22.2bn infrastructure project.

The Lamu Port-South Sudan–Ethiopia (LAPSSET) Transport Corridor project aims to further integrate the three countries with new oil pipelines, an extended rail network, port facilities and telecommunication infrastructure.

Given the escalating tensions between South Sudan and Sudan, the first and most important part of the project will be the US$3.5bn expansion of the Lamu port to 20 berths and the construction of a US$4bn oil pipeline from Lamu to the South Sudanese oil fields. (more…)