GRAPHICS

Japan's Help on South Sudan's Infrastructure

Nov 4, 2011 | 17:44 GMT

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(Stratfor)

Japan approved a plan Nov. 1 to send 200 Japan Ground Self-Defense Forces (JSDF) engineers to South Sudan in January, with an additional 300 to be sent later, as part of a five-year U.N. nation-building mission. The move into South Sudan may signal a renewed effort to gradually reintroduce JSDF operations into strategic foreign policy initiatives — in this case, energy security. In the few years before South Sudan's July 9 declaration of independence, China surpassed Japan as the largest buyer of Sudanese oil exports. South Sudan's independence, however, placed three-quarters of Sudan's known oil reserves in South Sudanese territory. Although the oil has not stopped flowing, its consistent supply is uncertain. Chinese-built pipelines direct South Sudan's crude to northern refineries and subsequently to the only viable export point, Port Sudan, which is located on the Sudanese coast. Consequently, Khartoum and Juba are locked in negotiations over revenue sharing and transit fees. In order to secure its interests, Japan has moved to strengthen bilateral relations with South Sudan through humanitarian efforts, investment vehicles and resource infrastructure development. One such project is part of the proposed Lamu Port-South Sudan-Ethiopia Transport Corridor. The Juba-Lamu pipeline portion holds the most potential, not only for South Sudanese economic viability but also for sustainable Japanese oil procurement. In March 2010, Japan's Toyota Tsusho Corp. proposed to develop the $1.5 billion oil pipeline linking Juba to the Indian Ocean via the port of Lamu, which would transport 450,000 bpd, and operate it for 20 years. Chinese firms also have proposed similar investments for the Juba-Lamu pipeline. If it manages to secure a stronger foothold in South Sudan, Japan will be better positioned to deal with Chinese influence in the tumultuous Sudanese-South Sudanese oil industry framework.