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STUDY FOR THE ESTABLISHMENT OF A PERMANENT
REGIONAL CORRIDOR DEVELOPMENT WORKING
GROUP IN PMAESA REGION.
JUNE, 2010
COMMISSIONNED
by
PMAESA
FUNDED
by
UN – ECA
PREPARED
by
Callixte NTAMUTUMBA
Transport Economist Consultant
Contact: ntamutumba@hotmail.com
and
i
Table of Contents
ACRONYMS AND ABBREVIATIONS ......................................................................................ii
EXECUTIVE SUMMARY..........................................................................................................iv
I. INTRODUCTION ..................................................................................................................... 1
1.1. Motivation of the study:....................................................................................................... 1
1.2. Objective of the study.......................................................................................................... 3
1.3. Expected outputs ................................................................................................................. 3
1.4. Methodology ....................................................................................................................... 3
1.5. Coverage Area..................................................................................................................... 5
1.6. Definitions........................................................................................................................... 7
1.7. Regional Initiatives and Corridor management Institutions .................................................. 7
II. OVERVIEW OF THE CORRIDORS ON STUDY ................................................................ 8
2.1. DJIBOUTI – ETHIOPIA CORRIDOR: A Corridor without road blocs................................ 8
2.2. THE NORTHERN CORRIDOR: NCTA is a multilateral treaty governing transit transport
operations.......................................................................................................................... 12
2.3. CENTRAL CORRIDOR: Institutional arrangement modeled along the lines of the NC-
TTCA................................................................................................................................ 24
2.4. DAR ES SALAAM CORRIDOR : An important transport corridor linking southern and
eastern Africa identified as SDI but not developed as an SDI. ........................................... 25
2.5. MAPUTO CORRIDOR: A PPP Spatial Development Initiative governed by a Memorandum
and Articles of Association................................................................................................ 32
2.6. NACALA CORRIDOR ( Corredor de Desenvolvimento do Norte: CDN) ......................... 42
2.7.BEIRA CORRIDOR: A SDI for agricultural development project with BAGC: Beira
Agricultural Growth Corridor............................................................................................ 45
2.8. WALVIS BAY CORRIDOR: a true public-private partnership in corridor development.... 46
2.9. DURBAN CORRIDOR or NORTH – SOUTH CORRIDOR: A multilateral Management
Committee governed by an Inter-State MoU ( NSCMC).................................................... 53
III. LESSONS LEARNT FROM EXISTING CORRIDOR ARRANGEMENTS.................... 57
3.1. Involvement of private sector in CMIs on a PPP basis........................................................ 59
3.2.Elimination of NonTariffs Barriers (NTBs)......................................................................... 60
3.3. Transformation of Transport Corridor into an Economic Corridor...................................... 61
3.4. Sustainable funding arrangement ....................................................................................... 61
3.5. International Benchmarking............................................................................................... 61
3.6. Need for a Coordinating and Consultative Mechanism for sharing of experience and best
practices............................................................................................................................ 62
IV. PROPOSAL OF A PMAESA REGION CORRIDOR DEVELOPMENT WORKING
GROUP.................................................................................................................................. 63
4.1.Previous Initiatives ............................................................................................................. 63
4.2.Naming the Mechanism...................................................................................................... 63
4.3.Proposed Mission ............................................................................................................... 63
4.4.Institutional design ............................................................................................................. 64
4.5.Membership........................................................................................................................ 65
4.6.Objectives........................................................................................................................... 65
4.7.Terms of Reference (TORs)................................................................................................ 66
4.8.Structure, Responsibilities and procedures. ......................................................................... 67
V. CONCLUSIONS .................................................................................................................... 72
VI. BIBLIOGRAPHY................................................................................................................. 74
VII. ANNEXURES: .................................................................................................................... 75
ii
ACRONYMS AND ABBREVIATIONS
AfDB : African Development Bank
AIDS : Acquired Immune Deficiency Syndrome
CCTFA : Central Corridor Transit Facilitation Agency
CDE : Chemin de Fer Djibouto-Ethiopien (Railway line)
CFM : Caminhos de Ferro de Mozambique ( Mozambique Railway)
CMC : Corridor Management Committee
COMESA : Common Market for Eastern and Southern Africa
CTIS : Container Terminal Information System
DBSA : Development Bank of Southern Africa
DCC : Dar Es Salaam Corridor Committee
DCMC : Dar Es Salaam Management Committee
DFID : Department for International Development
DRC : Democratic Republic of Congo
DoT : Department of Transport ( South Africa)
EAC : East African Community
ECA : Economic Commission for Africa
EU : European Union
FESARTA : Federation of East and Southern Africa Road Transport Associations
FDI : Foreign Direct Investment
FTZ : Free Trade Zone
GATT : General Agreement on Trade and Tariff
GD P : Gross Domestic Product
GIS : Geographic Information System
GVM : Gross Vehicle Mass
HIV : Human Immunodeficiency Virus
ISPS : International Ship and Port Security (code)
JICA : Japan International Development Agency
JRMG : Joint Route Management Group
KPA : Kenya Ports Authority
MCC : Maputo Corridor Committee
MCLI : Maputo Corridor Logistics Initiative
MDC : Maputo Development Corridor
MDG : Millenium Development Goals
MIPS : Maputo International Port Services
MoU : Memorandum of Understanding
MtDC : Mtwara Development Corridor
MPDC : Maputo Port Development Company
NC-TTCA : Northern Corridor Transit Transport Coordination Authority
NCTA : Northern Corridor Transit Agreement
NDC : Nacala Development Corridor
NEPAD : New Partnership for Africa`s Development
OSBP : One Stop Border Post
PMAESA : Port Management Association of Eastern and Southern Africa
PPP : Public-Private Partnership
REC : Regional Economic Community
RSA : Republic of South Africa
RSDI : Regional Spatial Development Initiative
SAD : Single Administrative Document
SADC : Southern Africa Development Community
SDI : Spatial Development Initiative
iii
SSA : Sub-Sahara Africa
SSATP : Sub-Sahara Africa Transport Programme
TCC : Tans CapriviCorridor
TCuC : Trans Cunene Corridor
TEU : Twenty foot Equivalent Unit
TKC : Trans Kalahari Corridor
TKCMC : Trans Kalahari Corridor Management Committee
TRC : Tanzania Railways Corporation
TKH : Trans Kalahari Highway
TOR : Terms of Reference
USAID : United States Agency for International Development
WB : World Bank
WBC : Walvis Bay Corridor
WBCG : Walvis Bay Corridor Group
iv
EXECUTIVE SUMMARY
UN – Economic Commission for Africa (ECA) places priority on enhancing interconnectivity and
facilitating trade by funding corridor interventions. This is in recognition that corridor efficiency is
important to the competitiveness of most African economies, especially those that are landlocked.
In line with its vision “To be a center of excellence in regional integration in transforming our
ports into global competitive platforms for international trade” PMAESA has a work plan which
encompasses the stakeholders and the regional integration agenda.
It is in this line that it has benefited support from ECA to launch “The Linking Ports to Corridors
Initiatives Programme of which the present study is one of the three components.
PMAESA (The Port Management Association of Eastern and Southern Africa) is a non profit
making, non governmental and non political organization of Ports and Harbors Authorities in
Eastern and Southern Africa region established under the auspices of the United Nations Economic
Commission for Africa (ECA) to contribute to the improvement, coordination and harmonization of
the port services and activities of the sub-region.
Port development is however incomplete without taking into account the entire supply chain which
include infrastructure (port, road, rail and information system), regional cargo tracking systems,
harmonization of regional customs etc…which are the main issues Corridor Management Initiatives
are dealing with.
Currently, there is a diversity of Corridor Development approaches and institutions in a number of
countries in the Eastern and Southern Africa region focusing either on transport logistics or
economic development along corridors or both.
Different forms of corridor management institutions and arrangements ranging from private sector
led arrangements to those that are State run authorities are operational in PMAESA region.
The existing bodies differ from the founding instrument, working mechanism, the funding
arrangement etc… while their overall common objective is to enhance competitiveness of regional
economy through optimization of business operational cost along the corridor.
Some Corridor Management Institutions have been problem solving on one hand while on the other
hand corridor issues are solved through an ad hoc working group formed to address specific issues.
And if most regional corridor development authorities pursue private sector participation, yet when
it comes to corridor development and coordination, the mechanism are government owned and
driven. There is therefore a big concern on the slow of implementation of protocols or any other
transit transport facilitation instruments and a true PPP approach is yet to be effectively structured
to ensure public-private interaction in corridor development.
In PMAESA region, the sustainability of most corridor institutions is another challenge. Funding
arrangements include membership fees, contributions from Governments, donor support and traffic-
based usage fees. The latter form of funding is yet to be applied while most appropriate as it
maintains pressure to the CMI to deliver tangible benefits for corridor stakeholders to justify its
funding.
The legal instruments governing the CMI have been assessed as treaties, agreements, MoU ,
protocols etc… and can refer to international laws or can be a written agreement between two or
more sovereign public law entities such as States. The challenge remains that the legal instruments
governing most of the CMI generally lack provisions that oblige signatory bodies to enforce
decisions through enactment of relevant national policies and legislation.
v
PMAESA region Corridor Initiatives differ therefore in terms of constituency, focus, organizational
set-up, capacity but meet on an overall objective of contributing to the competitiveness of the region
in the global economy.
There is therefore a need to search for the best practices in corridor development and related need to
share experiences among corridor development initiatives through a partnership of Public and
Private Stakeholders in all PMAESA ports and corridor countries.
This is likely to be achieved by setting up a “Permanent Regional Corridor Development Working
Group” as expressed by a wide range of stakeholders in various corridor development meetings.
The current study commissioned by PMAESA and funded by UN – ECA has an overall objective to
propose a proper mechanism for the operationalisation of such Permanent Regional Corridor
Development Working Group.
The methodology approach to attain that objective consists to (Chap II) a description of each
corridor ( from the north-eastern Djibouti-Ethiopia to the south-western Walvis Bay corridor)
through various aspects.
An emphasis has been put to those that have been visited by the Consultant, specifically with the
interest to highlight experience or best practices that such corridors have achieved in terms of:
• Strengthening of institutional capacity through enhanced Private and Public sector
involvement in Corridor development (WBCG);
• Integration of economic development approach (SDI) in transport corridor management
(MCLI)
• Dealing with “Bottlenecks” to transit transport in particular and to trade facilitation in
general (NC-TTCA);
• Integrated infrastructure development along the corridor :port, rail, road, pipeline
(TRANSNET model)
• Financial sustainability (MCLI) and
• Facilities and performance of the port serving the corridor.
The overall objective is to identify those “Champion(s) Corridors” that the Working Group
mechanism can refer to in each of above expected achievements and also those corridor
development activities that would require support from such mechanism.
Chap 3 makes proposal on the areas of cooperation and exchange of experiences (Lessons learnt).
A review of corridors on study summarizes their main characteristics as follow:
o Djibouti – Ethiopia Corridor does not have a permanent secretariat and is governed by a
committee of experts and an inter-ministerial committee. There is no private sector
representation on these committees. There is therefore a need to learn from others for setting
up a corridor institution to speed up the harmonization and simplification of transit traffic
documentation, to put in place a transit customs system and professionalize the corridor
development initiative by involving the private sector stakeholders.
o The Northern Corridor is an interstate body that has been particularly effective in driving
the implementation of regional transit regimes at national level. The private sector
stakeholders is now involved through a Consultative Forum and is likely to improve the
operational dynamics of the TTCA. However the decision making is still colored with some
political considerations which can slow down the pace of implementations of activities.
vi
o The Central Corridor: The CCTTFA is a new entity largely based on arrangements that
are similar to the NC-TTCA. Its funding regime helps to understand the critical role that
donors can play in getting corridors institutions off the ground.
o The Dar Es Salaam Corridor is the only one of the corridors reviewed to have a body
founded on a Constitution. However this has been rather a constraint as the approval process
has taken a long time. Nevertheless the institutional framework in place has continued to
develop an action plan and to lobby for reforms which enhance operational activities. The
joint venture between Tanzania and Zambia is reflected in the management structure.
o Maputo Corridor is one of the most active corridor which has played a key role in creating
a transport corridor where freight logistics has enabled favorable environment for trade,
investment and catalyzed regional integration. Although the corridor is predominantly
private sector driven, the MCLI is conducting a process of corridor development where the
Government has influence through the DoT in South Africa.
o Beira Corridor: The BAGC initiative is an example of partnership between the government
of Mozambique, the private sector and the International Community which aims to stimulate
a major increase in agricultural production in the Beira Corridor and improve the
productivity and incomes of smallholder farmers.
o Nacala Corridor is One of the first development corridors identified as a regional priority
developed jointly by the governments of Mozambique and Malawi in order to exploit the
significantly under-utilized natural resources of both countries.
o Walvis Bay Corridors: The WBCG is one of the most active and aggressive corridor
bodies in Africa. It is a business development oriented and is dominated by a few large
private sector stakeholders. The WBCG was established as PPP and has now extensive
experience in corridor management and marketing with concrete achievements such as the
SAD (Single Administrative Document).
o The North – South Corridor: has been put in place to facilitate implementation of various
SADC regional agreements in particular the Protocol on Transport, Communications and
Meteorology and the Protocol on Trade. A Memorandum of Understanding (MoU)
establishing the NSCMC has been signed between 7 countries namely: Botswana, RDC,
Malawi, Mozambique, South Africa, Zambia and Zimbabwe as a strategic partnership of
the stakeholders of the public and private sectors and regional institutions for the primary
purpose of promoting and facilitating the provision of safe and efficient movement and
transport services along the length of the NSC and in its hinterland.
As a result, a number of transit and transport corridor arrangements are operational in PMAESA
region with an overall objective to put in place an operational instrument to manage the trade routes
for more efficiency and cost effectiveness.
It is in the interest of the entire sub region that this objective be pursued through a coordinated and
collaborative manner. A regional platform for a networking as well as for ensuring fair competition
and knowledge sharing about best practices has been identified as a mechanism likely to play such
role.
vii
Whereas the TORs for this study suggest to name such mechanism “The Permanent Regional
Corridor Development Working Group”, the Consultant has proposed and named such mechanism
“Eastern and Southern Africa Corridor Development Initiative” (ESACDI) as a partnership of
public and private stakeholders in all corridor countries established to facilitate the provision of
efficient transport services along the corridors and their hinterland.
The ESACDI would be an advisory body principally responsible for facilitating transit traffic
movement and for initiating policies and laws related to transit transport and trade facilitation with a
simple and cost-effective institutional structure. The latter looks more like an “issues-based
program” arrangement than a formal institution, likely to add value to those existing facilitation
mechanisms in corridor management than overlapping them.
The study defines for the mechanism, the membership, the institutional design, the roles and
responsibilities, and the working mechanism. The Consultant further proposes PMAESA as a
regional well established Organization interacting both with Ports and Corridors to host the
ESACDI Secretariat and coordinate its overall activities.
1
“STUDY FOR THE ESTABLISHMENT OF A PERMANENT REGIONAL CORRIDOR
DEVELOPMENT WORKING GROUP IN PMAESA REGION”.
I. INTRODUCTION
Transport corridors are seen today as a primary area of focus in infrastructure development and
trade facilitation strategies to be pursed across Africa at both sub-regional and continental levels.
UN-Economic Commission for Africa (ECA) places priority on enhancing interconnectivity and
facilitating trade by funding corridor interventions.
It is in this line that PMAESA has benefited support from ECA to launch “The Linking Ports to
Corridors Initiatives Programme of which the present study is one of the three components.
PMAESA (The Port Management Association of Eastern and Southern Africa) is a non profit
making, non governmental and non political organization of Ports and Harbors Authorities in
Eastern and Southern Africa region established under the auspices of the United Nations Economic
Commission for Africa (ECA) to contribute to the improvement, coordination and harmonization of
the port services and activities of the sub-region, in a bid:
to improve the effectiveness of their benefit to vessels and goods and to reinforce the
cooperation with the hinterland countries ;
To contribute to the ratifying and implementation of international norms in the port and
maritime domain by the member countries;
To be a critical centre of excellence for ports, maritime and related industries in the region
by playing a significant role in promoting the regional economy through the facilitation of
trade.
Derived from the above, the key role of PMAESA is to collaborate with key players in the region
and the international development partners to promote best practices which ensure quick flow of
cargo and efficient service delivery for ports and other facilitators and enable them meet:
Port competitiveness and international benchmarks
Regional integration
Economic growth.
1.1. Motivation of the study:
Ports are integral and premier components of the global transportation chains. Their operational
efficiency and effectiveness have profound impact on the level of trade, given that 90% of the
global cargo is seaborne.
However, port development is incomplete without taking into account the entire supply chain which
include infrastructure(port, road, rail and information system), regional cargo tracking systems,
harmonization of regional customs etc…which are the main issues Corridor Management Initiatives
are dealing with.
Currently, there is a diversity of Corridor Development approaches and institutions in a number of
countries in the Eastern and Southern Africa region focusing either on transport logistics or
economic development along corridors or both .While Some of these are managed with a structured
institutional arrangement, others simply exist and function.
And if the reasons for establishing corridor institutions are generally similar, the legal instruments
governing them are not uniform. Examples of legal instruments include treaties (Northern
2
Corridor), Multilateral Agreements (Central Corridor), MoU (Trans-Karahari), Constitutions ( Dar
Es Salaam) and Company Registration (Maputo).
Some of these management arrangements are State run authorities while others are private sector
led, operating as lobby groups.
The funding mechanism also differ from a corridor to another ranging from membership fees based
on equal contributions (Dar Es Salaam Corridor) to Donors support (AfDB grant for startup of
Central Corridor activities) through tonnage levy collection ( Northern Corridor).
SSA Corridor Initiatives differ therefore in terms of constituency, focus, organizational set-up,
capacity but meet on an overall objective of contributing to the competitiveness of the region in the
global economy.
There is therefore a need to search for the best practices in corridor development and related need to
share experiences among corridor development initiatives through a partnership of Public and
Private Stakeholders in all PMAESA ports and corridor countries.
This is likely to be achieved by setting up a “Permanent Regional Corridor Development Working
Group” as expressed by a wide range of stakeholders in corridor development meetings (
RESDICC in Dar-Es-Salaam- May 2005 , PMAESA Meeting on Regional Corridor Management
Authorities in Nairobi-March 2006 and SSATP/REC meeting in Nairobi – April 2006).
The various topics and presentations made during those meetings by corridor management and port
authorities and related discussions clearly demonstrated the need for the exchange of experiences ,
ideas, approaches and programs among Corridors Initiatives to promote best practices in corridor
development.
It is worth mentioning that the idea of establishing a regional mechanism for consultation and
coordination is going its way from the Walvis Bay Corridor Group (WBCG) initiative at the
Regional Spatial Development Initiative Coordinating Committee (RESDICC) in Dar Es Salaam in
May 2005 to the PMAESA meeting on Regional Corridor Management Authorities in Nairobi ( 20-
21 March 2006).
A draft Concept Paper on Conceptualization of a regional mechanism for consultation and
coordination among corridor initiatives in SSA was facilitated by The Regional Spatial
Development Initiative Programme and was presented by Drs. Eline Van Der Linden in the latter
PMAESA meeting.
The resolution of the meeting on the proposed approach stated as follow:
“The need for coordination of efforts and consultation on approaches to corridor development in
Sub-Sahara(SSA) was emphasized at the PMAESA Regional Corridor Management Authorities
Meeting. The Meeting recognizes the WBCG presented initiative on the inter-regional corridor
cooperation and consultation and supports the proposal. The meeting requests the WBCG in
collaboration with the PMAESA Secretariat and FESARTA to drive the proposed regional
consultative mechanism, for which the working title is the “Regional Corridor Development
Working Group”, and provide an institutional anchor for the mechanism”.
The Consultant is not pretending to reinvent the wheel in undertaking the current assignment as
previous studies have been undertaken in this area (see Biography) and especially that there are
already enough regional forums where “corridor issues “are discussed.
3
However, if the Demand for a Regional Coordination mechanism has been clearly outlined in
previous studies, a proper mechanism for the operationalisation of the already proposed Permanent
Regional Corridor Development Working Group in PMAESA region is yet to be put in place. The
current study aims to this objective and is also proposing the arena for exchange of experience and
promotion of best practices in corridor management which among others include: the removal of
NTBs, Private sector involvement in infrastructure development, cross-border management/OSBP,
institutional framework capacity etc…
1.2. Objective of the study
According to the Terms of Reference ( TOR), the objective of the study is to propose a proper
mechanism for the operationalisation of a Regional Corridor Development Working Group.
The proposed Working Group would be assigned with following tasks:
• To coordinate collaborative efforts , rather than local, individual and partly competitive
efforts;
• Promote exchange of experiences between corridor authorities, regional economic
organizations and stakeholders;
• Enhance cooperation and consultation with development partners;
• Evaluate progress made on a regular basis, on transit transport facilitation in the region;
• Enable dialogue between private and public sector at national and regional level on corridors
issues;
• The regional working group /mechanism would serve as a resource and know-how center to
partner with decision makers, industry and development partners.
1.3. Expected outputs
It is expected that the proposed study will result in achieving following outputs:
• The strengthening of institutional capacities;
• Improvement of Corridor frameworks;
• Enhancement of operational and commercial opportunities;
• Cooperation in socio-economic development along the corridors;
• Promotion of regional best practices but also international best practices;
• Smart use of existing technology: internet-based exchange platform, bulletin board
where questions can be posted for discussion among the members and ideas shared
without extensive travel.
1.4. Methodology
Following steps have been followed to conduct this study:
• A Review of extensive literature and relevant published documents on country corridors
and ports activities: annual reports, conference/workshop on corridors management
outputs, Port Master Plans , internet searches etc…
• Interviews with selected key stakeholders involved into ports and corridors management
on following main issues:
The Objective of the proposed Regional Corridor Development
Working Group : sharing experience, expertise and lessons learnt,
fostering cooperation and consultation between Corridor Groups, the
working group mechanism as a Corridor Resource Center for regional
authorities and international partners;
4
The issues to deal with: consultation on “institutional challenges”
(involvement of Private Sector in Corridor management, sustainable
funding mechanism etc…) , cooperation on “operational
challenges”(OSBP, customs integration, transit transport facilitation
instruments etc…);
The institutional design proposed as rather a Mechanism than an
institution to ensure easy cooperation with existing inter-corridor
initiatives and avoid overlapping;
The role and functions of the proposed RCDWG;
The membership: a PPP approach with private sector encouraged to
interact and invest in economic development processes on corridors.
• Ground visits to Port and Corridor Authorities/Secretariats: The Consultant was based in
PMAESA Secretariat in Mombassa – Kenya and has had opportunity to work with KPA-
Mombasa Port, NC- TTCA , PMAESA and KTA.
Other Ports and Corridors Authorities visited are:
TPA/ Port of Dar-Es- Salaam,
Central Corridor
Dar-Es-Salaam Corridor
Port Maputo
MCLI (Maputo Corridor Logistics Initiative)
Djibouti Port
Djibouti Ministry of Transport
• Participating to the topic related regional events to market the project and to collect
updated data :
March ,2010 (14th- 18th ): 14th Meeting of Intergovernmental Committee of
Experts of the SRO-EA
of the UN-ECA . Kigali – Rwanda.
March 2010 (19-20th) : High Level Meeting on Regional Integration. Kigali –
Rwanda.
April 2010: Meeting of Northern Corridor Heads of Customs on the Operations of
The RCTG Scheme
(Regional Customs Transit Bond Guarantee). Organized by COMESA. Mombasa -
Kenya
April (28-30th) 2010: Workshop on Trade Facilitation organized by UN-ECA .
Dar- Es – Salaam / Tanzania.
In the off-moments of the meeting, the Consultant had useful discussions with
Delegates from NEPAD, ADB, UN-ECA, USAID HUBs and other RECs such as
EAC, COMESA, SADC, IGAD, CEPGEL etc…and the idea of setting up a regional
corridor consultation mechanism was fully supported.
• The methodology approach for this study consists to ( Chapter 2) a description of each
corridor ( from the north-eastern Djibouti-Ethiopia to the south-western Walvis Bay
corridor) through various aspects with the following
Corridor description and hinterland markets served;
Key goals and objectives;
Institutional Arrangements;
Key infrastructure Development projects;
Impact of the infrastructure improvements and
Challenges
5
An emphasis has been put to those that have been visited by the Consultant but specifically with the
interest to highlight experience or best practices that such corridors have achieved in terms of:
• Strengthening of institutional capacity through enhanced Private and Public sector
involvement in Corridor development (WBCG);
• Integration of economic development approach (SDI) in transport corridor management
(MCLI)
• Dealing with “Bottlenecks” to transit transport in particular and to trade facilitation in
general ( NC-TTCA implementation of COMESA Transit Transport Facilitation
Instruments);
• Integrated infrastructure development along the corridor :port, rail, road, pipeline
(TRANSNET model)
• Financial sustainability (MCLI) and
• Facilities and performance of the port serving the corridor.
The overall objective is to identify those “Champion(s) Corridors”, the Coordination/Consultation
mechanism can refer to in each of above expected achievements and also those corridor
development activities that would require support from such mechanism.
Chap 3 makes proposal on the areas of cooperation and exchange of experiences (Lessons learnt).
Based on above steps and elements, a regional mechanism to coordinate and facilitate efforts made
by various stakeholders in detecting corridors constraints and inefficiencies and remedying them is
proposed (Chap 4).
The mechanism proposed defines for the Regional Corridor Development Working Group:
1. The membership
2. Its Objectives
3. Its roles and functions (TORs)
4. The structure, responsibilities and procedures
1.5. Coverage Area
Membership of PMAESA ranges from Sudan in the North to Namibia in South-West Africa,
including the Indian Ocean islands and some land-locked countries.
A Total of 18 full members of PMAESA are :
Djibouti ; Mauritius ; South Africa
Mozambique Sudan ; Namibia ;
Ethiopia ; Tanzania ; Zambia ;
Seychelles Somalia ; Zimbabwe
Kenya ; Burundi; Rwanda
Madagascar ; Reunion; Malawi ; Eritrea
6
This study covers 8 main PMAESA ports and 11 transport corridors in eastern and southern Africa
and is focused on the corridors with structured management institutional framework. Those are:
1. Djibouti Port : Djibouti – Ethiopia Corridor (should be mentioned on the map)
2. Mombasa Port: – Northern Corridor
3. Dar-Es-Salaam Port: - Central Corridor
- Dar-Es-Salaam Corridor/TAZARA Corridor
4. Nacala Port : Nacala Corridor
5. Beira Port : Beira Corridor
6. Maputo Port : Maputo Corridor
7. Durban Port : North-South Corridor
8. Walvis Bay Port: - Trans-Karahari Corridor
- Trans-Caprivi Corridor
- Trans-Cunene Corridor
Mombasa
Dar es Salaam
Nacala
Beira
Maputo
Road Transport Corridors of East and
Southern Africa
Walvis Bay
Lobito
Luanda
Saldanha
Cape Town
Durban
Maputo
Beira
Johannesburg
Kampala
Bujumbura
Kigali
Kolwezi
Lubumbashi
Kitwe
Lusaka
Kafue
Harare
Pretoria
Nairobi
Mombasa
Dar es Salaam
Nacala
Blantyre
Kinshasa
Mbeya
Lilongwe
Tete
Kariba
Lake Malawi
Lake Tanganyika
Lake
Victoria
Windhoek
Kapiri Mposhi
Livingstone
Francistown
Maseru
Dodoma
Pretoria
1
2
3,7
4
5
6
7
7
7
3,7
7
3,7,9
8
9
10
3,7
7,9
7
6
7
7
7
2,3,7
1,2
5
7
Bulawayo
Gaborone
Mbabane
East London
Coega
Port Elizabeth
Kisangani
1 Northern
2 Central
3 Dar es Salaam
4 Nacala
5 Beira
6 Maputo
7 North-South
8 Trans Kalahari
9 Trans Kaprivi
10 Trans Cunene
7
1.6. Definitions
Corridors can be defined as a collection of routes linking several economic centers, countries and
ports. While some are only road transport corridors, most of them include more than one mode of
transport (Northern Corridor).
“A Transport Corridor is a multi-modal corridor connecting two points of economic activity
(together with as many places of economic concentration as possible along its length) as
reliably and as cost effectively as possible. Its primary focus is on economic efficiency rather
than economic distribution and it should ideally provide users with transport choices.”
(Source: RSDI Technical Unit definition).
The ultimate goal of setting up a transport Corridor is to transform the latter into
“Development Corridor” which is characterized by the integrated nature of its programs
and typically focuses on the upgrading of transport and energy infrastructure and the
crowding-in of investment, initially in those sectors in which the potential exists to develop
anchor sectoral economic projects and subsequently into related sectors that bring about
integrated development at local and regional level. Development Corridor are usually
medium-term initiatives involving multiple stakeholders working towards a series of inter-
related goals to bring about local and regional economic development. ( Source: RSDI
Technical Unit Definition).
The Economic Corridor approach “recognizes” that Development is not just a matter of
infrastructure improvement but that the latter needs to be integrated with other economic
opportunities such as trade and investment and include efforts to address social and other
impacts arising from increased connectivity.( Source: Paulo Jorge
Fernandez/PDNA/Econogistics, March 2010)
Arnol ,Olivier and Arvis (2005) state that the quality of a corridor is measured in terms of
transit time and cost for shipment of goods along the corridor. The reliability of a corridor
is measured in terms of not only the transit time but also the flexibility provided in terms of
diversity of services offered on multimodal routes.
1.7. Regional Initiatives and Corridor management Institutions
Development agencies such as the World Bank (SSTAP), the AfDB, the European Union
Development agencies all place emphasis on the facilitation of inter-State trade along corridors and
are increasingly funding corridor developments following the realization that transportation along
corridors is hampered by numerous hurdles, including poor conditions of transport infrastructure
(rail in particular), Borders delays, a proliferation of road checkpoints and other practices that
increase monetary and time costs.
Various initiatives have been designed to both monitor the performance of corridors and to
eliminate the non-tariffs barriers (NTBs). The objective is to enhance the efficiency and
cost-effectiveness of the main transport corridors into landlocked countries ( The Almaty
Program of Action).
In eastern and southern Africa, Corridor Management Committees are emerging as strategic
institutions for addressing all aspects of transport and transit of goods throughout a given corridor,
typically based on an agreement signed by all participating countries and private sector
stakeholders. They deal with a wide range of issues such as infrastructure, customs, bottle-necks
and user charges.
8
To name just few and specifically in eastern and southern Africa region, a number of corridor
management institutions have been set up such as Walvis Bay Corridor Group, Maputo
Development Corridor ,North-South Corridor in Southern Africa.
In East Africa the Northern Corridor Transit Agreement ( NCTA, 1987) has been signed by five
countries : Kenya, Uganda, Rwanda, Burundi and DRC to guarantee each other free passage
through their respective territories of transit traffic and trade. The NCTA has led to the
establishment of A Northern Corridor Transit Transport Coordination Authority for the
implementation of the treaty.
The Djibouti Corridor in the Horn of Africa is a multi-modal network of routes linking the Port of
Djibouti to the landlocked Ethiopia set up with several bilateral agreements signed between the 2
Governments relating to/or affecting transit transport services.
Corridor management Institutions (CMIs) are therefore promoting and developing various transit
corridors across Africa but the challenge remains to set up a critical forum of consultation and
coordination given the diversity of stakeholders and a large number of government agencies that
oversee different activities within a corridor.
The coordination requires a public – private partnership to address a wide range of problems
including investment in infrastructure, regulation of transport and trade and facilitates private sector
participation and professionalism in the logistics industry. It has indeed been realized that Corridors
with corridor institutions have usually been better equipped to address challenges than those which
do not have an institutional arrangement.
II. OVERVIEW OF THE CORRIDORS ON STUDY
2.1. DJIBOUTI – ETHIOPIA CORRIDOR: A Corridor without road blocs.
The Djibouti – Ethiopia Corridor is a network of multi modal routes which link the Indian Ocean
port of Djibouti to landlocked Ethiopia. The port of Djibouti is the main entry point and experiences
today increased maritime traffic following the Ethiopian demand essentially.
Addis-Djibouti Railway
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2.1. 1. Port of Djibouti:
Located at the crossroads of the sea roads between Europe, Asia and Africa, the port of Djibouti
(PAID) is in constant evolution seeking out to become the cross road of international trade.
Any vessel transiting via Suez, the Red Sea and Indian Ocean passes very close to Djibouti. It is
the principal port of the country and has regular liner services with Europe, Asia, Far East,
Arabian Gulf and Indian Ocean.
The port of Djibouti has:
• a capacity to handle 10 million ton per year;
• a Free Zone area of 14 ha;
• And provides 18 berths while giving access with safe and well equipped navigation
channels.
• An industrial and commercial Free Zone of 17 ha is operational.
Since 2000, Djibouti and DP World signed an agreement of management concession of the port for
20 years.
The aim of the concession is:
To provide an efficient and reliable service ,
To promote the capacities and resources of the port both regionally and
internationally and
To attract more foreign investment to develop modern intermodal infrastructure
facilities and establishment of Free Zone area.
• Port of Djibouti
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Djibouti Port Advantages
The most advantageous and beneficial points of Djibouti Port are:
• Ideal Location & Good Market
• DP World Management
• Ethiopia is natural hinterland of Djibouti Port
• Transhipment cargo
• IT Efficient (Maximo, Navis, Sage, CCTV,etc…)
• EDI System for Manifest Cargo
• Safe place (CCTV) and secure harbour implementation of ISPS code (Port Access System)
• Regular liner services connecting about 200 ports in 71 countries in the world.
• Good performance and high productivity
• Good equipment and infrastructures facilities
• Most centrally situated port in the COMESA market (population 380 million people)
• Modern telecommunication and banking services
• Close proximity to Djibouti FZ with many new companies
2.1.2. The Port of Doraleh
The increase in maritime traffic has led to the construction of a new deep water port (18 - 20m),
being able to accommodate the latest generation of containers ships, Super-Post-Panamax.
The new port of Doraleh is located 12 km from the old port and is equipped with the following
infrastructures:
A Container Terminal: is operational since beginning of 2009 and has required
an investment of about 370 million US dollars. In the first step, it has been
equipped by a quay of 1,050 m with depth of water of 18 m and a capacity to
handle 1,5 million TEUs . In the second stage, it will have a 2,000m quay with
a capacity of 3 million TEUs .
An Oil Terminal: operational since 2005, with a deep water of 18m, 2 berths, a
pumping capacity of 2,000 tons/hour, highly secured and able to store 3 million
tons annually. Additional facilities make it possible to take delivery and supply
of all types of petroleum products, chemicals, LPG to tankers for the transport
of oil, chemicals, liquefied gas….
A commercial and industrial free zone of 400 ha in its first phase extendible to
1,000 ha.
The new bulk terminal is equipped with 2 ship unloaders with a capacity of 300
t each per hour. It has also 12 lines for loading trucks with capacity of 1200
bags per hour per line. The warehouse capacity is 30,000 ton. Plans are
underway for construction of second phase warehouse storage of fertilizers on
a capacity of 40,000 ton. Djibouti Bulk Terminal will have a huge impact on
the performance of the port.
2.1.3. Djibouti Corridor routes
•Djibouti – Addis Ababa Corridor:
The Rail line from Djibouti to Addis Ababa is long of 781km but is in a very poor state.
Over the years the share of railway in the volume of traffic carried has been declining. The
railway sector is in deficit and is today off-taking less than 3% of import/export traffic
with Ethiopia estimated to 250,000 tons per annum. A major project establishing a rail
connection linking the new port of Doraleh infrastructure to Future Free Zone International
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Airport of Djibouti is a part of a synergy of multimodal transport being developed by
Djibouti.
The Road line through Galafi long of 910 km , out of which 217km in Djibouti is
currently the main road corridor in good condition .
The Road through Dewenle, 840km, out of which 100km in Djibouti is rarely used due to
condition in Ethiopia
Road transport has grown substantially to become the dominant carrier for freight along Djibouti
corridor. The under-performance of railway has led Ethiopian private sector to invest in road sector
by establishing large transport companies using quite a number of trucks.
Rehabilitation of the rail and /or its concession has not so far been achieved and an idea of creating
a new railway line on both side in Ethiopia and Djibouti is undergoing.
Feasibility studies are at advanced stage for the Ethiopian Railway Corporation project targeting to
interconnect Ethiopia with Djibouti, Kenya and Sudan.
The new “Societe Djiboutienne de Chemin de Fer” is also underway to connect with not only
Ethiopia but also the airport and the rest of Djibouti with the new Djibouti port facilities. The
project will meets The Djibouti Hub Project needs.
In order to deal with the rapid traffic growth and stimulate economic development activities around
the port
Djibouti has launched The Djibouti Hub Project based on public/private partnership (PPP) practice
in the management of port and airport sectors and in the development of free zones
Starting from 2000, management agreements have been concluded with the authorities of Dubai:
Dubai Ports World, Jabel Ali Free Zone Authority, Dubai Customs etc….
After ten years of experiencing the partnership, the Djibouti Business Hub concept and its
underlying governmental vision are matching with many projects.
The execution of the Doraleh Container Terminal construction, the creation of an airport free zone,
the Doraleh free zone project, and the enlarging the stocking capacity of the Doraleh petrol terminal
etc… constitute a key element in the promotion of Djibouti and in attracting direct foreign
investments.
2.1.4. Legal Framework of Djibouti – Ethiopia Corridor
• Several bilateral agreements have been signed between the Governments of Djibouti and
Ethiopia relating to or affecting transit transport services:
- The General Agreement on Transport (March 21, 1981) with the major objective to
guarantee Ethiopia’s access to sea
- The Djibouti-Ethiopian Treaty on the Railway (March 21, 1981), dealing mostly
with the management of the railway, and marginally transit (Ethiopia is to guarantee
minimum volumes to ensure profitability of the railway).
• Additional agreements include : “The Agreement on Road Transport Services” (December
12, 1993 and amended on September 10, 1996), guaranteeing free access for operators from
both countries, and specify rates are freely negotiated between shipper and carrier and “The
Agreement on the utilization of the port of Djibouti and services to cargo in transit “(April
13, 2002), dealing with Customs, Road Transport, Facilitation, and establishing an Inter-
ministerial Committee for the follow-up of the agreement.
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2.1.5. Challenges and lessons learnt from Djibouti Corridor
Djibouti – Ethiopia Corridor has not a formal institutional framework. Transit and transport
issues are dealt through ad hoc Bilateral Committees. It is however felt that the
implementation of measures agreed on transit and trade facilitation between two meetings
suffer from a lack of follow up. Setting up A corridor management group or committee
would be dealing among others with following :
Facilitating removal of non physical barriers in Customs clearance procedures in
Djibouti port
Advocating for infrastructure improvement ( Railway sector);
Monitoring corridors` performance
Setting up stakeholders network
Initiating policy and laws related to transit transport and trade facilitation
The rail transport sector has collapsed following to increasing competition from road
transport and the obsolescence of its equipment and its rolling stock.
Although there is a willing on both side ( Ethiopia and Djibouti) to revitalize the sector, the
regional approach of enhancing collaborative efforts ( Ethiopia/Djibouti) as per
Mozambique and South Africa cooperation model to develop railway towards Maputo port(
CFM and SPOORNET) is giving place to individual/national and partly competitive efforts.
Information on delays and cost along the corridor indicates the idle time compared to
driving time along the corridor is not favorable to operators due to old fleet (maintenance)
and terminal delays. This translates into low utilization of trucks with an average of 2.5 trips
per month i.e. 4,000 km per month.
As there is no transit regime in Djibouti, Ethiopian Customs is clearing cargo directly in
Djibouti with inconvenience for Ethiopian small scale companies without sufficient
resources to pay customs duties upfront, resulting in long period before customs clearance.
The counterpart result is however a best practice on Djibouti Corridor that there is no road
blocs along the corridor meaning that cargo cleared in Djibouti will reach the final
destination without any other inspection formality.
2.2. THE NORTHERN CORRIDOR: NCTA is a multilateral treaty governing transit
transport operations.
2.2.1. Coverage area and institutional framework
The Northern Corridor covers the transport routes from the port of Mombasa to Uganda,
Rwanda, Burundi, and Eastern DRC, as well as Northern Tanzania and Southern Sudan.
Conscious of the need to cooperate with a view to facilitating their interstate and transit trade,
the member States of Burundi, Kenya, Rwanda and Uganda negotiated and signed the
“Northern Corridor Transit Agreement (NTCA)” in 1985. The NCTA entered into force on 28
May 1986, following its ratification by all the four contracting States.
In 1987, the DR of Congo acceded to the NTCA , thereby becoming the fifth contracting State.
A revised NCTA with provision for the transformation of the corridor was signed in Nairobi in
October 2007.
The objectives of the NCTA are to:
• Ensure freedom of transit among the member states
• Safeguard right to access to/from the sea for landlocked countries
• Develop and integrate the regional transport facilities and services
• Facilitate inter-state and transit trade
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The Northern Corridor is the only one in the East, Central and Southern African region with a
multilateral treaty governing transit transport operations between a group of countries over
access to and from the sea.
In order to ensure implementation and compliance with the provisions of the NCTA, the
Northern Corridor Transit Transport Coordination Authority (NCTTA) was established with
three basic organs, namely:
The Authority, constituted by Ministers responsible for transit transport matters in each
Contracting State it is the main policy organ;
The Executive Board comprising the Permanent Secretaries responsible for transit
transport matters, acts as the administrative and executive organ
The Permanent Secretariat, located in Mombasa, Kenya is the operational organ of the
NCTA.
Two specialized committees have been established, namely: Infrastructure Development and
Management Committee and the Customs ,Trade and Transport Facilitation Committee. In addition
the Northern Corridor Stakeholders Consultative Forum, which brings together users and service
providers (both private and public) along the corridor exists since 1999.
The Stakeholders Consultative Forum
The Northern Corridor Stakeholders Consultative Forum was initially introduced as a Kenya Ports
Authority initiative to facilitate the delivery of Uganda cargo imported through the Port of
Mombasa.
The Forum, which was initially a Kenya-Uganda affair, progressively evolved into a regional
gathering bringing together Chief Executives of Public and Private sector institutions involved in
transport and trade related activities in the Northern Corridor region.
The Stakeholders Forum, which is currently chaired by the Commissioner-General of the Kenya
Revenue Authority, brings together other Commissioner-Generals of the member states – Burundi,
the Democratic Republic of Congo, Kenya, Rwanda, and Uganda - the Managing Director of the
Kenya Ports Authority as well as other Managing Directors of the Lake Ports and other dry ports
established in the member states, including the Port of Bujumbura, Burundi, MAGERWA in Kigali,
Rwanda.
It also includes the Chairmen of the Transporters Associations in each of the member states; the
Chairmen of the Clearing and Forwarding Associations in each member state; the Chairmen of the
Manufacturers Associations; Insurance Associations; Associations of commercial banks financing
import/export operations; police departments involved in the supervision and escort of transit cargo;
representatives of the chambers of commerce of the member states, as well as many other operators
involved in transit transport activities along the Northern Corridor.
MANDATE OF THE NC-TTCA
The mandate of the NCTTCA is to ensure that the Northern Corridor remains the most effective
route for the surface transport of goods between the respective countries and the sea, as well as to
safeguard the right of transit that member States have granted to each other.
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MISSION OF NCTTCA
The mission of NCTTCA is to transform the Northern Corridor into a corridor that offers
internationally competitive, safe and transparent transit transport services; promotes regional trade
and integration, and provides opportunities for the Private sector to invest along the corridor.
In that line a five-year Strategic Plan has been elaborated with following objectives:
To transform the Northern Corridor into an Economic Development Corridor;
To harmonize and streamline policies and legal framework on transport and trade
facilitation, among its member States and in collaboration with Regional Economic
Groupings , such as COMESA and EAC;
To improve transport and communication infrastructure and services along the corridor,
relating to all modes of surface transportation;
To enhance knowledge management and monitoring of corridor performance
To incorporate crosscutting, which include HIV/AIDS and anti-corruption strategies into
TTCA programs.
PROGRAMMES
The strategic objectives for the NCTTCA are as follows:
• Harmonization and streamlining of policies and legal frameworks for transport and trade
facilitation;
• Improved Development of opportunities and incentives for increased private sector
investment and participation in the Northern Corridor;
• Transport infrastructure and services relating to road, rail, pipeline, inland waterways,
terminals and communication services;
• Enhanced knowledge management and performance monitoring
ACHIEVEMENTS
Since its inception, TTCA has undertaken various measures aimed at facilitating the smooth flow of
cargo and the movement of vehicles along the Corridor
Significant achievements include:
• Simplification of Port clearance procedures. Release of landed cargo from the Port of
Mombasa can now be achieved within two days, down from an average of seven days,
following a review of documentation and clearance procedures at the Port.
• There has been a significant reduction in the number of national documents and copies to
which transit transport along the Corridor was subjected to.
• Northern Corridor countries are now using the COMESA Customs Declaration Document
(CD-COM), a merger of the Road Transit Customs Declaration (RTCD) formulated by
TTCA and the Single Goods Declaration (SGD) by COMESA. Work continues towards the
withdrawal of the remaining national documents that are still used alongside the CD-COM.
• Transit time between Mombasa, Kenya, and Bujumbura, Burundi, has been reduced by half,
from over 30 days to about 15 days, as a result of transit facilitation measures undertaken.
Some unnecessary border formalities along the Corridor have been removed.
• Reduction of transit charges and elimination of some non-tariff barriers.
• Mobilization of funding for the rehabilitation of major highways along the Corridor.
• Harmonization of transit charges.
• Harmonization of axle load limits
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• Enhanced co -operation among its member States in matters concerning transit transport
NORTHERN CORRIDOR LOCALIZATION
Source: NC-TTCA
2.2.3. Modes of transport:
Various modes of transport and modal combinations, which include roads, railways, pipelines and
inland waterways are applicable and used along the corridor. Among Northern Corridor Countries,
only Kenya and Uganda are connected by rail, although multimodal combinations are possible for
other countries.
2.2.3.1. Roads
The NC main roads network totals nearly 7000km of which 60% is paved.
Table 1. Northern Corridor Road network ( Km)
Country Paved Unpaved Total
Burundi 320 36 356
DR Congo 721 1960 2641
Kenya 1196 0 1196
Rwanda 814 0 814
Uganda 1042 657 1669
Total 4093 2613 6706
Percentage 61% 39% 100%
Source: NC-TTCA
Port
Road/RailIC
Border Post
Border
Border Post
Border Post
Inland
Border Post
IC
ICIC
IC
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Road transport has grown substantially from its subsidiary position as the provider of feeder
services in the 1960s to become the dominant carrier for freight and passengers along the corridor.
In the 1980s , the freight market along the corridor was shared equally between road and rail
transport .However , by 2003, the market share of road transport had jumped to 85% ( NC-TTCA
2009).
This is not however a result of the changing growth of trade in the sub-region but rather due to
under-performance of rail transport. Trade in the sub-region is characterized by low value high bulk
export commodities which are naturally ideal for railway transport.
The road transport has also been boosted by advanced technology with the production of larger and
faster heavy goods vehicles. The liberalization of road transport along the corridor has encouraged
private sector investment leading to the establishment of large companies, some using about 300
trucks.
Besides, these transport operators have powerful lobbies using professional bodies such as the
Kenya Transporters Association (KTA).
2.2.3.2. Raiways
The railway network ( four lines: Mombasa-Nairobi, Nairobi-Kampala, Kampala-Kasese, Tororo-
Gulu-Pakwach) is in rather poor condition.
The main operator East African Railway Corporation was managing the main 1300 km Mombasa-
Nairobi-Malaba-Kampala line until it collapses where Kenya Railway Corporation ( KRC ) took
over with no further performance. The latter recently (2003) made an Agreement with Rift Valley
Railways to manage the services in Kenya.
The railways provide freight services within Kenya and handles also transit traffic to and from land-
locked countries in East Africa countries.
The main commodities ferried include cement, coffee, containers, soda ash, sugar, salt, petroleum
products, grains and dairy products among others. Kenya Railways has big business in
containerized goods.
It operates a fleet of about 156 locomotives for the main line and has a carrying capacity of 6,407
wagons and about 588 couching units.
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Source: NC-TTCA
The Northern Corridor railway network comprises of the Kenya/Uganda sections, which runs from
Mombasa through Nairobi, Nakuru, Eldoret, Malaba, Jinja, and Kampala to Kasese in West Uganda
( a distance of approximately 1660 km). A branch line runs from Nakuru to Kisumu on Lake
Victoria ( 217 km ), from where there is a wagon ferry link with Jinja and Port Bell in Kampala.
Out of the total network of approximately 1890 km, almost 800 km , representing 42% is in rather
poor condition. The most affected sections are Nakuru-Kisumu ( 217 km), Malaba-Kampala (251
km) and Kampala-Kasese (333 km) which is closed since 1998 due to its state of disrepair.
As a result, Rwanda, Burundi, Eastern DRC and Southern Sudan which depend on the Mombasa
port for their overseas trade have no links with the East Africa railway system.
And despite lower freight rates offered by railways, the trade and transport community largely
choose to transport their cargo more by road than by rail due to longer transit times. The railways
account for merely 15-20%of transport market along the Northern Corridor.
HARMONIZATION OF RAILWAY SERVICES IN EAST AFRICA
a) Railway inter-working agreement
As a step towards a regional corridor development management and in line with the objective of the
study, the eastern Africa experience in railway inter-working agreements remain of a great interest.
There is indeed co-operation agreements between Kenya, Uganda and Tanzania railways in the
view of securing each party`s interest for a mutual benefit. The agreement provides the modalities
of inspection of wagons crossing the border and each party advises the other of dairy gross tonnage
which requires clearance within 24 hours, special traffic such as perishables, explosives, livestock
among others. Most interesting is the staff inter-working in case of a staff of a different railway is
engaged at times of need.
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b) Traffic claims
Each party indemnifies the other of liability for damage to property which occurs as a result of an
accident. The agreement states an accident as a fire, explosion or other unavoidable incidents.
c) Exchange of locomotives, wagons and other equipment
During the exchange of wagons and / or locomotives each party sets it cost upon which
negotiations and agreements are made. Cost calculations are done by putting into consideration
following:
o The cost of the loan on the equipment
o Age of the equipment
o Depreciation
o Interest for capital costs
o Maintenance cost and duration of use among others.
d) Maintenance Agreements
The railways companies have also an agreement on reciprocal services to assist during the
breakdown equipment at cost and not at profit as service to other party.
e) Invoicing
Invoices are sent containing lists of services provided, spares replaces, delay of wagons, parts
lost while in the other parties network among others. Since either party sends its own invoices
they agree on ways to offset the bills.
2.2.3.3. Pipelines
Transport by pipeline is limited today between Nairobi and Mombasa extended to Kisumu and
Eldoret from where landlocked countries of Uganda, Rwanda , Burundi and East DRC access their
fuel supplies.
The pipeline requires to be extended to effectively meet the fuel demand of those countries.
The line Eldoret – Kampala- Kigali is under implementation course while the extension to
Bujumbura is being planned.
2.2.3.4. Inland Waterways
Lakes Victoria, Tanganyika, Albert and Edward are used for transportation of goods inside and
outside NC-Member States. The Congo River also plays an important role in transportation. The
navigability of Kagera river needs to be explored. These inland waterways are crucial for multi-
modal transport chain since they complement other modes of transport in the sub-region. Therefore
there is need to mobilize financial resources in order to improve inland transport network.
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Source: NC-TTCA
2.2.3.5. The Ports
The port of Mombasa is the gateway to the Northern Corridor. The port handles domestic and
transit trade to Burundi, DRC, Rwanda, Uganda, Ethiopia, Sudan and Tanzania. It is managed by a
state owned company, the Kenya Ports Authority (KPA). Mombasa port is the largest on the East
Coast of Africa with 16 deep water berths, a large container depot, two petroleum jetties and two
terminals for bulk cargo. It is reputed to be the 2nd
busiest port in the eastern and southern Africa
after the port of Durban in South Africa. The port `s throughput has continued to increase over the
years although under-investments in the railway and road infrastructure have weakened its off take
capacity.
Port of Mombasa : A Gateway to East and Central Africa
Port of Mombasa 2009`s Throughput increased by 16.1% in 2009 to 19.06 million tons from 16.42
million tons in 2008. The increase was mainly attributed to improvements in productivity arising
largely from automation of port operational processes.
During the year 2009, substantial progress was made to improve operations and service delivery.
• KPA entered into business partnership arrangements with seven CFS (Container Freight
Stations) within its vicinity, thereby facilitating quick and efficient evacuation of containers
from the port. This has subsequently improved productivity with the turn-round time of
vessels dropping drastically from 5.1 days recorded in 2008 to 3.1 days in 2009.The
average container Dwell time also declined from 12.1 days to 6.0 days.
• The container yard has also been extended with an additional stacking space of 30,000 m2.
(KPA 2009 Annual Report).
• In an effect to minimize the cost of doing business at the port, tariff adjustments were made
which culminated in the removal of scanning and verification charges with effect from 1st
October 2009.
• The free storage regime was also reviewed to encourage port users to collect their cargo in a
speeder manner and reduce their working capital.
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• A One Stop Centre for conventional cargo operations is being established and the Port
Community Based System rolled out to provide a Single Window platform for faster cargo
clearance.
Transit Traffic with neighboring countries:Uganda, Tanzania, Rwanda, Burundi, East of DRC,
Southern Sudan, Somalia and Ethiopia accounts for 26% 0f total throughput of the port with
Uganda dominating ( 80% of the total transit traffic).
2.2.3.6. Funding Mechanism of the NC-TTCA
When the NC-TTCA was established, all member countries used to make equal contributions to the
Organization`s budget. This mechanism did not prove efficient as arrears accumulated. Over several
years (December 2003), the Executive Board adopted a formula, which would apportion the annual
budgets as follow:
o Burundi : 10%
o DR Congo: 20%
o Kenya : 30%
o Rwanda ; 15%
o Uganda : 25%
The payment mechanism is either by direct contribution (through Treasury) or by tonnage levy
collected at the port of entry Mombasa. Kenya is the only State that opted to pay from the Treasury.
With regard to cargo to and from non-member States (Tanzania, Sudan, Ethiopia) passing through
Mombasa port, it was agreed that the Secretariat would propose a levy rate for the consideration of
the GoK and the KPA.
While not perfect, this process has improved funding safety for the NC-TTCA, but is not yet
confirmed on a permanent basis.
2.2.3.7.Challenges
Many challenges remain to be addressed to reduce the high transport cost and the freight tariff per
ton/km along the corridor.
It is indeed estimated that the freight cost represents 35-40% of imports value compared to 8% in
Europe and 11% in Africa.
The freight tariff is calculated at 0.12 USD/ton/km for East DRC, 0.11 for Burundi, 0.90 for
Rwanda while it is only 0.04 USD per ton/km in Kenya (NC-TTCA, 2008).
The mandate of the NCTTCA being to ensure that the Northern Corridor remains the most cost
effective route for the surface transport of goods between the respective countries and the sea, as
well as to safeguard the right of transit that the member States have granted to each other,
NCTTCA `s main mission is to transform the NC into a corridor that:
• offers internationally competitive , safe and transparent transit transport services;
• promotes regional trade and integration
• and provides opportunities for the private sector to invest along the corridor.
NC-TTCA has also been mandated to transform the NC into an Economic Development Corridor
(NCSDP). However given the institutional and physical problems faced along the corridor, such
transformation will require sustained commitment and involve a multi-step and multi-directional
process over an extended period.
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The SADC region experience would serve as model and the NEPAD Secretariat being in a process
of implementing a Spatial Development Programme (SDP) throughout Africa with support from the
Regional SDI Programme Unit could explore how to assist with this transformation.
In the meantime following are the programmes pursued by the NC-TTCA in a view of facing above
challenges.
2.2.3.8. NC-TTCA PROGRAMMES AND DEVELOPMENT STRATEGIES
I. Development of opportunities and incentives for increased private sector investments
and participation in the Northern Corridor.
This Strategic Objective aims directly catalysing the transformation of the Northern Corridor into
an Economic Development Corridor. There is increasing recognition of the potential to achieve
economies of scale by "crowding in" synergistic investments along transport corridors and therefore
turning them from mere transit routes and into Economic Development Corridors (EDC).
Mobilization of private sector capital is crucial in accelerating investments in infrastructure
development, transport services and other sectors such as mining, value addition in agriculture,
manufacturing and service sectors necessary for the achievement of an economic development
corridor. The expected cross-border investments should provide additional impetus for the
improvement of corridor efficiency by removing the remaining bottlenecks to the free flow of trade
and traffic.
This Strategic Objective aims at the following outcomes:
• A joint approach to mobilizing investments
• Proper identification and packaging of investment opportunities
• Coordinated marketing of the sub-region.
• Establishment of a macro-economic and investment environment that is fully supportive of
private sector participation, and:
• Improved transport infrastructure, facilities and services.
II. Harmonization and streamlining of policies and legal frameworks for transport and
trade facilitation
This strategic objective aims at harmonization of transport policies and regulations as well as
harmonization and implementation of instruments for customs and trade facilitation. It responds to
one of the key threats to the NCTA identified in the process of developing this strategy, which is,
the lack of provisions in the Agreement that compels member states to enforce decisions through
enactment of relevant national policies and legislation. Consequently, the harmonization of
national policies, laws and enforcement mechanisms should be an area of focus in future, facilitated
by the Secretariat.
For the achievement of this strategic objective, two programmes of the TTCA secretariat, namely
the Transit and Transport Policy and Planning Programme and the Customs and Trade Facilitation
programme need to work closely together to ensure coherence between transport and trade policies
among member states.
This strategy also embraces the need to use the corridor, not just as a means of access to
international markets, but also as a facility for enhancing regional integration and promotion of
regional trade. To that extent, this strategic objective provides a mechanism for linking up and
22
ensuring coherence between the initiatives of TTCA with those of organizations that share the same
objectives. These include the East Africa Community [EAC], Common Market for Eastern and
Southern Africa [COMESA], the Inter-Governmental Authority on Development [IGAD], and the
New Partnership for Africa's Development [NEPAD]
III. Improved transport infrastructure and services relating to road, rail, pipeline, inland
waterways, ports , terminals and communication services.
This strategic objective aims at improving the efficiency of the Northern Corridor transport
infrastructure services consisting of road, rail, port, oil-pipeline and communications services.
Transit costs in the Northern Corridor are still 2-3 times more than those of developed regions of
the world. For the landlocked countries, 35-40% of the value of imported goods is attributed to
transport costs . A significant proportion of these high transport costs are attributable to poor
infrastructure. Similarly, the sub-region's exports are subjected to high transport costs prior to
reaching the ports of exit. Reduction of transport costs would enhance export competitiveness;
reduce the costs of imports and result in the overall competitiveness of the economies in the region.
Maritime ports facilities: The volume of traffic through the port of Mombasa is growing at a
significant rate. For example, the installed capacity of the container terminal of the 250,000 TEUs
has been surpassed and the port is handling more than 600,000 TEUs per annum (2009). The
growth in traffic requires expansion of the port facilities and services. In this regard, the ports
authority has developed a 25-year master plan, which includes the construction of the 2 nd container
terminal at the Mombasa port as well as the development of a second maritime port at Lamu.
Road Transport : Accounts for more than 70 per cent of the total transit traffic flow within the
Northern Corridor. The entire Northern Corridor road network covers approximately 7000 km
across Kenya , Uganda , Rwanda , Burundi , and the DR Congo. About two thirds of the road
network is paved, although the condition is generally poor due to inadequate resources for
rehabilitation and maintenance. Overloaded freight vehicles and poor enforcement of axle load
regulations further deteriorate the road network and reduce road life spans. Member states are being
encouraged to promote the improvement, upgrading and expansion of the road network, to adopt
common standards for road design, construction and maintenance, and a uniform road classification
system. This calls for a harmonized road financing policy and management structures, as well as
enforcement of common axle load limits and vehicle weights and dimensions.
Railways : Less than 20 per cent of the cargo transported along the Northern Corridor is by rail
transport. The rail network essentially comprises a single line, overland rail track from Mombasa
through Nairobi , Nakuru, Kisumu/Eldoret, Jinja, and Kampala and onto Kasese in western Uganda
.
Investment in rail infrastructure and equipment has been inadequate for more than a decade. The
problems are further compounded by poor train operations and limited capacity or facilities for
handling traffic, especially containers, at stations. As a result, the general condition of the railway
network from Kenya to Uganda is old and in need of rehabilitation. Worse sections, such as the
Kampala-Kasese line, have been closed. Inadequate investments have also diminished the
efficiency and capacity of railway authorities to handle increased traffic volumes.
The need for private sector investment in the railway network has become more apparent in order to
improve services and to cope with increasing traffic volumes. The Kenya-Uganda railway has been
jointly concessioned to the Rift Valley Railway Consortium effective from August 2006.
23
In addition there is need to develop the missing links within the Northern Corridor. A rail link from
Kasese ( Uganda ) to Rwanda , the DR Congo and Burundi requires the participation of the private
sector . At the same time there is need to develop links with Southern Sudan and Ethiopia.
Pipeline : The existing pipeline from Mombasa to Eldoret and Kisumu has provided an important
relatively cheaper and more efficient conveyance of fuel closer to the landlocked countries of the
Northern Corridor. Therefore, most of their fuel imports are currently sourced from Eldoret and
Kisumu. From the oil pipeline terminus, petroleum products are shipped by tanker truck. However,
this transport mode is deemed unsatisfactory due to environmental impact of trucks accidents, and
oil spills. Besides, tanker trucks impose heavy damage on the road infrastructure. A viable
alternative is extending the oil pipeline from Kenya to Uganda and eventually to Rwanda and
beyond. The Governments of Kenya and Uganda have signed a Memorandum of Understanding to
promote the extension of the Kenya Oil pipeline from Eldoret to Kampala.
In recognition of the importance of this means of transport, a new protocol has been developed for
inclusion in the revised NCTA . The protocol will provide the framework for cooperation in the use
and extension of the pipeline to the landlocked countries.
Inland waterways: Although not fully exploited, lake transport plays an important role in the
movement of transit cargo. The ferry links on Lake Victoria between Port Bell/Jinja and Kisumu (
Kenya ) and Mwanza ( Tanzania ) form an integral part of the rail network in the Northern Corridor.
The only rail-lake route on the Corridor is the Mombasa - Kisumu - Kampala route (1242 km). This
branch route leaves the main railway line at Nakuru and extends to Kisumu on Lake Victoria . The
Kenya and Uganda railways authorities have four wagons operating between Kisumu, Jinja and Port
Bell (near Kampala).
There is adequate capacity, among the wagon ferries now operating on Lake Victoria , to carry
more cargo than what is handled at the moment. Transit times on this alternative route to the all
railway route to Uganda average 18-20 days.
Also, Rwanda and Burundi are anxious to utilise a ferry link between Kisumu and Kemondo Bay ,
on the southwestern side of the lake within Tanzania . This would require improving docking
facilities at Kemondo Bay and rehabilitation of road links from this lake port to Rwanda and
Burundi.
Communications: Development of communications infrastructure that supports the monitoring of
traffic along the corridor is a key-contributing factor to the promotion of seamless transport of
goods in the corridor. Radio communication systems for dissemination of traffic and weather
related information along the corridor is important for all transport sub-sectors.
IV. Enhanced knowledge management and performance monitoring :
The strategic objective aims at strengthening the capacity of TTCA to analyze trends in the
environment, learn from similar organizations, monitor its own performance, devise responsive
strategies and identify best practices. This implies making knowledge management and
performance monitoring an integral part of the strategy of TTCA.
While Information and Communication Technologies [ICTs] is an important tool in knowledge
management, the two are not the same. Knowledge management is a conscious effort by an
organization to improve itself by generating internal performance information, and accessing and
processing external information in order to achieve a competitive advantage
24
The strategic objective on enhanced knowledge management and performance monitoring
facilitates the identification of internal crosscutting themes such as capacity building and
information management, as well as opportunities for creating linkages and strategic partnerships
with others.
2.3. CENTRAL CORRIDOR: Institutional arrangement modeled along the lines of the NC-
TTCA.
The Central Corridor comprises the Port of Dar-Es-Salaam, the Dar-Es-Salaam-Kigoma 1,254 km
long railway which interfaces with water transport on Lake Tanganyika to Bujumbura and DRC as
well as a road route linking Dar-Es-Salaam through Dodoma, Singida, Nzega and Lusahunga to
Rwanda and Burundi.
2.3.1. Institutional Arrangements for the Corridor
Until 2006 trade facilitation along the Central Corridor was handled through bilateral agreements
mainly between Tanzania and landlocked countries. In 2006 Tanzania, Uganda, Burundi , Rwanda
and DRC signed a multilateral agreement to form The Central Corridor Transit Transport
Facilitation Agency (CCTTFA) with the following objectives:
1) Ensure that the Corridor is efficient and cost-effective;
2) Market the corridor with a view to increase its utilization;
3) Support infrastructure planning and operations on the corridor through proactive collection ,
processing and dissemination of traffic data, analysis of competitive corridors and business
information;
4) Promote sustainable maintenance of infrastructure;
5) Encourage the implementation of improved customs transit procedures and the
implementation of joint customs controls and juxtaposed customs offices at land borders and
seaports;
6) Cooperate, where appropriate, with regional bodies with similar objectives.
Organs of the CCTFA
The governing organs are an interstate council of ministers, an executive board, and a stakeholders
consultative committee, supported by a permanent secretariat. The structure is modeled along the
lines of Northern Corridor Transit Transport Coordination Authority (NCTTCA) based in
Mombasa.
The Interstate Council of Ministers, a multilateral organ responsible for coordinating policy issues
of the CCTTFA. It gives the corridor its political drive and orientations, facilitates and effects inter-
State harmonization of policy, legal and regulatory aspects.
The Executive Board comprises the permanent secretaries of the ministries of transport responsible
for transport in each of the corridor countries and one representative from the private sector from
each country. The private sector representatives are elected by the industry, the transport operators
and Chambers of Commerce. The Board formulates the general principles and policies .It also
performs, among others, the corporate governance role and appoints the senior technical staff of the
CCTFA.
The Stakeholders Consultative Committee consists of all transport actors from the corridor
countries. The key stakeholders are : the Government departments dealing with transport matters,
Customs, port authorities, port operators, terminal operators, shippers/manufacturers associations,
shipping agencies associations, railway operators, railway holding companies, freight forwarding
25
companies, road transport operators, marine (lake) transport operators, whether public or private
participate as members of the committee.
The stakeholders Consultative Committee is responsible for:
Developing and implementing strategies designed to provide seamless transportation along
the corridor;
Developing performance targets of the corridor and monitoring its utilization and
performance;
Developing and implementing strategies to market the corridor;
Undertaking research and recommending the appointment of senior staff by the Executive
Board;
Establishing a Stakeholders Representative Group to oversee its affairs between meetings;
and
Appointing technical committees or working groups.
The Stakeholders Representative Group is a select group consisting of fifteen stakeholders
nominated by the Consultative Committee, with three from the Committee members from each
corridor state. It is required that the private sector and all modes of transport and the interests of all
corridor states are adequately represented. The Group establishes Technical Working Groups to
deal with specific matters and to make recommendations as and when necessary.
The work of CCTFA is supported by a Secretariat headed by an Executive Secretary. The
Secretariat is based in Dar-Es-Salaam. Its key functions are to coordinate implementation of
decisions and resolutions and to provide the CCTTFA`s governing bodies and working groups with
technical advice.
Among the technical staff of Secretariat is a Customs expert, a civil engineer, a business officer and
an accountant.
2.3.2. Funding Mechanism
The start-up costs of the CCTTFA Secretariat were provided by the African development Bank. The
AfDB has funded the Secretariat activities for three years since 2007.
The agreed future funding mechanism is based on each country contributing equally using an
agreed method and procedures for joint funding. It is also expected that development partners will
continue to support. The financial model is such that the costs of attending the meetings shall be
borne individually by corridor members.
2.4. DAR ES SALAAM CORRIDOR : An important transport corridor linking southern and
eastern Africa identified as SDI but not developed as an SDI.
The Dar Es Salaam Corridor comprises (1) the port of Dar Es Salaam; (2) the TAZARA rail line
from the port to Kapiri Mposhi in Zambia where it jons Zambian Railways south to Lusaka and
northwest to the Copper Belt and to the DRC where it connects to the Congolese Railway, SNCC;
(3) The TANZAM road that follows much the same route as the TAZARA rail, and the road that
runs from Mbeya into Malawi at Songwe, along the lakeshore from Karonga to Chiweta and inland
to Lilongwe; (4) the TAZAMA oil pipeline, which runs from the port of Dar Es Salaam to the
Indeni Refenery at Ndola, Zambia; and (5) the road from Kasama to the port of Mpulungu on lake
Tanganyika, providing for the transport of goods from Zambia and further north to Burundi ,
Rwanda and eastern part of the DRC.
It is supported by the border posts at Kasumulu/Songwe, Tunduma/Nakonde, and
Kasumbelesa/DRC; the Malawi Cargo centres which operates dry port facilities at DES port and
Mbeya ; Zamcargo for consolidating imports and exports at DES port; and Malawi Lake Services.
26
Source: SA Global C. HUB
May 2003 - BG / EM
Lake
Tanganyika
Lake Malawi
Mozambique
Tanzania
Malawi
Zambia
Mozambique
Democrati
c Republic
of CongoLubumbashi
Kasumbales
aKitwe
Saka
nia
Ndola
Kapiri
Mposhi
Kabwe
Lusaka
Mpika
Songwe
Kasumul
u
Tundum
aNakonde
Mbey
a Makambako
Iring
a
Kidatu
Dodom
a
Morogoro
Chalinze
Dar es
Salaam
Mtwara
Kasama
Mpulungu
Port
Kalemi
e
Mzuz
u
Lilongwe
Chipata
Chipoka
LEGEND - MAP Not to Scale
Major Surfaced Roads
Railway Lines, 1067mm gauge
Railway Lines 1000mm gauge
International Borders
Border Posts - Customs
Major Centres
NORTH
Road Weighbridges
Kafue
Chirundu
Zimbabwe
Cell Phone Reception
(gmt +3)
(gmt + 2)
(gmt + 2)
(gmt + 2)
(gmt + 2)
Dar Es Salaam Transport Corridor and catchment area
27
2.4.2. Key Goals and Objectives
Following the imposition of international sanctions against Rhodesia in1965, Zambia had no other
choice than to re-direct its strategic imports and exports to the Benguela railway, but with the
conflict in Angola at that time, it was necessary to look for an alternative and more reliable route,
particularly for the export of strategic minerals and for import of food and fuel. This resulted in the
improvement of the TANZAM road linking Zambia to the port of DES, the development of the
TAZAMA oil pipeline, and the development of TAZARA railway.
Malawi , also as landlocked , was facing same problems with the closure of its traditional trade
route through Mozambique due civil war. It turned to the TANZAM/TAZAMA integrated
infrastructure to provide for its exports and imports (fuel).
The initial objective for the development of TAZARA/TANZAM/TAZAMA infrastructure projects
was to provide a long term and sustainable set of infrastructure links to DES port for the strategic
imports and exports of landlocked countries whose traditional routes had been closed or affected by
the civil wars in Zimbabwe, Mozambique and Angola.
The main costumers were the copper and other mines in Zambia and DRC.
2.2.4. Institutional structures
The transport Coordinating Committee (TCC)
The TCC was formed in 1982, mainly to deal with the export and import requirements of the
Zambian mining industry, and subsequently expanded its membership to meet the changing
transport needs of Malawi, Tanzania, Zambia and later DRC. TCC brought together industrial users,
transport service providers, government agencies involved in transport matters to deal with mainly
critical issues centered around port and TAZARA performance.
The system was doing well by identifying problems and everyone was fully aware of what needed
to be addressed, but three key problems remained TCC challenges:
There was no full Secretariat to follow-up between meetings;
The TCC identified problems but had no sufficient power to bring neither its members nor
the governments involved to implement proposed solutions
The TCC needed the capacity and data to more effectively market the corridor.
To correct these deficiencies, TCC decided to create a full Dar Es Salaam Corridor Committee
(DCC) with new corridor institution and its associated functions, operations and constitution.
Therefore the DCC is an example of a CMC in the early stages of development, though drawing on
the experiences of an earlier model.
The Dar Es Salaam Corridor Committee (DCC)
The institutional goals for the DCC were:
To expand the TCC membership to make it full-fledged public-private partnership;
To support it by a full Secretariat of five persons;
To emphasize the operational and marketing aspects of the corridor; and
To support the Corridor Committee with national organizations in each country to effect
national policies that support corridor efficiency, promote corridor use and encourage spatial
development along the corridor.
Objectives of the Committee as defined in the Constitution
28
Most of the objectives were specifically to make the Dar Es Salaam Corridor the most efficient,
reliable and cost effective regional transport corridor. Related transport objectives focused on:
The upgrading and sustained maintenance of transport infrastructure;
The implementation of SADC railway and road traffic standards and implementation of
national legal and regulatory harmonization;
The implementation of improved customs transit procedures and the implementation of
juxtaposed OSBP customs offices at land borders and sea ports;
A reduction in cost associated with moving freight along the corridor;
Support to Members`operational performance and coordination;
Establishment of working relationships with other SADC corridors and institutions.
The full committee meets annually to decide the annual agenda and operational policy.
The Dar Es Salaam Corridor Management Committee ( DCMC) provides overall management,
strategy development and implementation oversight while a full time Secretariat based in Dar Es
salaam I responsible for the day-to-day implementation of the annual work plan and budget,
communication , corridor performance monitoring and corridor marketing.
National Corridor Committees:
There are National Corridor Committees in each member State to ensure effective national support
to corridor activities. Membership is drawn from the country`s representatives on Corridor
Coordinating Committee. The National Corridor Committee comprises a chairperson and a vice-
chairperson, one from a government organization and the other from the private sector. In the case
of Malawi, the Department of transport and the Chamber of Commerce are the two institutions
providing this leadership. In Zambia, the ministry of Communications and Transport is supposed to
provide leadership whereas in Tanzania this role is played by the Department of Transport and the
TPA.
The Secretariat:
The affairs of the DCC are coordinated by a secretariat based in Dar Es Salaam. Such Secretariat is
still to be formally established. In the interim, the TPA provides part-time secretariat services. It is a
general perception that the absence of a full-time secretariat remains a constraint to the
implementation of the committee`s activities.
2.2.4. Funding Mechanism
So far, corridor activities have been funded by the USAID Southern Africa Trade Hub. The
Corridor Committee is still exploring the possible use of a tonnage levy with some core functions
and activities to be funded from member contributions as follow:
o Voluntary member contributions ( 2009)
o Obligatory member contributions (2010)
o User pay fees assigned to ach origin/destination of corridor usage (2010).
29
2.2.5. Infrastructure of the Corridor
2.2.5.1. Dar Es Salaam Port
The Dar Es Salaam port is Tanzania`s principal port catering for 90% of Tanzania`s imports and
exports and serving as a critical link for the adjacent landlocked countries of Malawi, Zambia,
DRC, Burundi, Rwanda and Uganda. The port of Dar Es Salaam complemented by Tanga and
Mtwara ports serve 4 main corridors towards eastern, central and southern Africa as illustrated in
the map below:
30
1
3
4
2
NB: 1- Mtwara corridor, 2- DSM TAZARA corridor,
3- DSM Central corridor, 4- Tanga corridor
D R
CONGO
1
3
4
2
NB:1- Mtwara corridor, 2- DSM TAZARA corridor,
3- DSM Central corridor, 4- Tanga corridor
Source: TPA
31
The port has a total quay length of 2000 meters with 11 deep water berths, a container Terminal, a
general cargo Terminal, a grain Terminal a passenger Terminal, a crude oil pumping facility, a
refined oil facility and cargo centres operated by Malawi and Zambia. The port is connected to the
main road system and both the TAZARA railway and the Tanzania Railways Corporation lines
have direct connections to the port. The port is managed by the Tanzania Ports Authority (TPA).
The intrinsic rated capacity of the port is 10 million tons per annum ( 1 million tons containerized
cargo, 3 million tons dry cargo and 6 million tons bulk liquid). The current throughput is 7.6 million
tons.
TPA manages also other sea ports of Tanga and Mtwaro which can handle respectively 500,000 and
400,000 tons annually and some eight inland ports, that are: Mwanza, Kemondo Bay, Bukoba,
Musoma on Lake Victoria, Kigoma , Kasanga on Lake Tanganyika and Itungi and Mbamba Bay on
Lake Nyasa. These ports have rated throughput of 1 million tons per annum.
In 2000, TPA made a series of reforms to enable the port play more active hub port role for the
region. Those included : widening the entrance channel, installing lights and navigational aids,
thereby making 24 hour operation possible and mostly the concessioning of Container Terminal
with a variety of operational improvements.
2.4.4.2 TAZARA railway
The 1860 km railway line from Dar Es Salaam to Kapiri Mposhi in Zambia is owned by the
Governments of Tanzania (50%) and Zambia (50%) and is operated by the Tanzania Zambia
Railway authority.
There is a road to rail transshipment facility at Kapiri Mposhi, and a rail to rail transshipment
facility at Kidatu, the latter allowing TAZARA line to link to Tanzania Railways system.
The TAZARA rail system has a design capacity of 5 million tons per annum, but has never been
equipped to carry more than 2 millions per annum.
Efficiency in the rail system has been over the last decade inconsistent with transit times from
Zambia/DRC to DES port reaching as much as 40 days compared to Current performance of 8 days
only.
However, the locomotive, rolling stock and financial shortfall remains the largest impediment to
using Dar Corridor rail system. Figures demonstrate the diversion of rail traffic to road due to the
improved road infrastructure and reduced availability of rolling stock particularly the locomotives
on the railway.
2.4.4.3 TANZAM Road
The TANZAM road links Tanzania and Zambia and runs from Dar Es Salaam to Kapiri MPoshi.
The Tanzanian side of the road was surfaced in the mid 1950s, and on the Zambian side in the mid-
19600s. The road is maintained by respective governments through budgetary provision. There are
permanent weighbridges in operation along the road.
32
2.4.4.4. TAZAMA Oil pipeline
The 1710 km TAZAMA oil pipeline was commissioned and built in 1968 to able the flow of crude
oil to Indeni fuel refinery at Ndola and to carry refined products. TAZAMA is jointly owned by the
governments of Tanzania (33.3%) and Zambia (66.7%). Maintenance of the pipeline is the
responsibility of the two governments. The offshore Single Point Mooring facility for offloading
crude oil is owned and maintained by TPA.
2.4.4.5. Some key programs and projects of the DCC.
The main programs being performed by the DCC consist in:
Monitoring the Corridor performance;
Advocating for port improvement ( infrastructure and systems);
Rationalization of rail operations;
OSBP and Customs connectivity;
Complimentary projects include:
Self-regulation for transport operators;
Accreditation for Customs clearing agents;
Safety and HIV interventions
2.4.4.6. Performance indicators and challenges of the Corridor
The main achievements of the DCC include:
The reduction of port Dwell time from 25 to 13 days ( December 2009);
The reduction of rail transit times to Zambia from 17 days to 5 days although still
constrained;
The reduction of transit check-points from 43 to 30 although still too many;
RADDEX connectivity between TRA and MRA speeding up boarder processes times.
However, the DCC still have to deal with following challenges:
Team Building: there is a need for a coherent and comprehensive policy framework to
address transport and trade regulation as well as a capacity building for National
Committees to allow them effectively articulate and address trade facilitation needs.
System for Performance Monitoring and a
Mechanism for a sustainable funding.
2.5. MAPUTO CORRIDOR: A PPP Spatial Development Initiative governed by a
Memorandum and Articles of Association.
Maputo Corridor Overview
33
The Maputo Corridor runs through one of the most highly industrialized and productive regions of
Southern Africa. Johannesburg and Pretoria form the western axis of the Corridor with their large
concentrations of manufacturing, processing, mining and smelting industries. Then, moving
eastwards to Mozambique, the corridor passes through vast industrial and primary production areas
containing steel mills, petro-chemical plants, quarries, mines, smelters and plantations of forests,
sugar cane, bananas and citrus.
Just 92kms beyond the frontier are the Mozambican deep-water ports of Maputo and Matola, which
have traditionally provided the nearest facilities for the importers and exporters of this region.
South Africa and Mozambique have promoted the revival of the Maputo Corridor with bilateral
policies and substantial public and private sector investments designed to stimulate sustainable
growth and development in the region.
The main arteries of the Corridor are the new N4 highway and the railway, both of which can
support high volume, seamless, cross-border freight services.
2.5.1. Road Links
The N4 highway is the first major infrastructure project completed since the implementation of the
Maputo Corridor agreement. Stretching from Witbank in South Africa to Maputo in Mozambique,
the N4 provides a world-class trunk route between the two countries.
An important element of the port development programme is the construction of a new link road,
which will deliver port traffic to and from the N4 by the most direct route, and significantly ease
congestion in the downtown areas of Maputo.
For importers and exporters alike the N4 is a fast, safe and efficient road to the international ports of
Maputo and Matola.
Trans African Concessions (TRAC), the concessionaire responsible for building, operating and
maintaining the N4 highway until 2028, is committed to ensuring that, in addition to completing the
primary phase of the project on time and budget, all the secondary and peripheral developments are
implemented with equal success.
The N4 offers round-the-clock response teams to deal with incidents, the latest technology, the
safest road construction, tamper-proof SOS-telephones and a management policy that ensures
continuous maintenance and upgrading.
The Greater Witwatersrand cities of Johannesburg and Ekurhuleni are connected to the Maputo
Corridor via the N12 highway, which connects to the N4 near Witbank.
34
The N4 also connects two border posts, i.e.
• Skilpadshek / Lobatse Border Post between Botswana and South Africa
• Komatipoort - Lebombo / Ressano Garcia Border Post between South Africa and
Mozambique
A total of six TRAC N4 Toll Road Plazas connect Pretoria to Maputo, ensuring a modern and well-
maintained trunk route to the Ports of Maputo and Matola in Mozambique. Four are on the South
African side, with two on the Mozambican side.
• Diamond Hill Plaza between Pretoria and Witbank
• Middelburg Plaza between Witbank and Middelburg
• Machado Plaza between Machadodorp and Waterval-Boven
• Nkomazi Plaza between Nelspruit and Malelane
From the South Africa / Mozambican border, the N4 becomes the EN4 that connects directly to the
Ports of Maputo and Matola, thereby easing traffic congestion in the downtown Maputo area
through two Toll Plazas, i.e.
• Moamba Plaza at Moamba
• Maputo Plaza at Matola near Maputo
Source: TRAC N4
2.5.2.RAIL lINKS
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant
Coridor study done by consultant

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Coridor study done by consultant

  • 1. STUDY FOR THE ESTABLISHMENT OF A PERMANENT REGIONAL CORRIDOR DEVELOPMENT WORKING GROUP IN PMAESA REGION. JUNE, 2010 COMMISSIONNED by PMAESA FUNDED by UN – ECA PREPARED by Callixte NTAMUTUMBA Transport Economist Consultant Contact: ntamutumba@hotmail.com and
  • 2. i Table of Contents ACRONYMS AND ABBREVIATIONS ......................................................................................ii EXECUTIVE SUMMARY..........................................................................................................iv I. INTRODUCTION ..................................................................................................................... 1 1.1. Motivation of the study:....................................................................................................... 1 1.2. Objective of the study.......................................................................................................... 3 1.3. Expected outputs ................................................................................................................. 3 1.4. Methodology ....................................................................................................................... 3 1.5. Coverage Area..................................................................................................................... 5 1.6. Definitions........................................................................................................................... 7 1.7. Regional Initiatives and Corridor management Institutions .................................................. 7 II. OVERVIEW OF THE CORRIDORS ON STUDY ................................................................ 8 2.1. DJIBOUTI – ETHIOPIA CORRIDOR: A Corridor without road blocs................................ 8 2.2. THE NORTHERN CORRIDOR: NCTA is a multilateral treaty governing transit transport operations.......................................................................................................................... 12 2.3. CENTRAL CORRIDOR: Institutional arrangement modeled along the lines of the NC- TTCA................................................................................................................................ 24 2.4. DAR ES SALAAM CORRIDOR : An important transport corridor linking southern and eastern Africa identified as SDI but not developed as an SDI. ........................................... 25 2.5. MAPUTO CORRIDOR: A PPP Spatial Development Initiative governed by a Memorandum and Articles of Association................................................................................................ 32 2.6. NACALA CORRIDOR ( Corredor de Desenvolvimento do Norte: CDN) ......................... 42 2.7.BEIRA CORRIDOR: A SDI for agricultural development project with BAGC: Beira Agricultural Growth Corridor............................................................................................ 45 2.8. WALVIS BAY CORRIDOR: a true public-private partnership in corridor development.... 46 2.9. DURBAN CORRIDOR or NORTH – SOUTH CORRIDOR: A multilateral Management Committee governed by an Inter-State MoU ( NSCMC).................................................... 53 III. LESSONS LEARNT FROM EXISTING CORRIDOR ARRANGEMENTS.................... 57 3.1. Involvement of private sector in CMIs on a PPP basis........................................................ 59 3.2.Elimination of NonTariffs Barriers (NTBs)......................................................................... 60 3.3. Transformation of Transport Corridor into an Economic Corridor...................................... 61 3.4. Sustainable funding arrangement ....................................................................................... 61 3.5. International Benchmarking............................................................................................... 61 3.6. Need for a Coordinating and Consultative Mechanism for sharing of experience and best practices............................................................................................................................ 62 IV. PROPOSAL OF A PMAESA REGION CORRIDOR DEVELOPMENT WORKING GROUP.................................................................................................................................. 63 4.1.Previous Initiatives ............................................................................................................. 63 4.2.Naming the Mechanism...................................................................................................... 63 4.3.Proposed Mission ............................................................................................................... 63 4.4.Institutional design ............................................................................................................. 64 4.5.Membership........................................................................................................................ 65 4.6.Objectives........................................................................................................................... 65 4.7.Terms of Reference (TORs)................................................................................................ 66 4.8.Structure, Responsibilities and procedures. ......................................................................... 67 V. CONCLUSIONS .................................................................................................................... 72 VI. BIBLIOGRAPHY................................................................................................................. 74 VII. ANNEXURES: .................................................................................................................... 75
  • 3. ii ACRONYMS AND ABBREVIATIONS AfDB : African Development Bank AIDS : Acquired Immune Deficiency Syndrome CCTFA : Central Corridor Transit Facilitation Agency CDE : Chemin de Fer Djibouto-Ethiopien (Railway line) CFM : Caminhos de Ferro de Mozambique ( Mozambique Railway) CMC : Corridor Management Committee COMESA : Common Market for Eastern and Southern Africa CTIS : Container Terminal Information System DBSA : Development Bank of Southern Africa DCC : Dar Es Salaam Corridor Committee DCMC : Dar Es Salaam Management Committee DFID : Department for International Development DRC : Democratic Republic of Congo DoT : Department of Transport ( South Africa) EAC : East African Community ECA : Economic Commission for Africa EU : European Union FESARTA : Federation of East and Southern Africa Road Transport Associations FDI : Foreign Direct Investment FTZ : Free Trade Zone GATT : General Agreement on Trade and Tariff GD P : Gross Domestic Product GIS : Geographic Information System GVM : Gross Vehicle Mass HIV : Human Immunodeficiency Virus ISPS : International Ship and Port Security (code) JICA : Japan International Development Agency JRMG : Joint Route Management Group KPA : Kenya Ports Authority MCC : Maputo Corridor Committee MCLI : Maputo Corridor Logistics Initiative MDC : Maputo Development Corridor MDG : Millenium Development Goals MIPS : Maputo International Port Services MoU : Memorandum of Understanding MtDC : Mtwara Development Corridor MPDC : Maputo Port Development Company NC-TTCA : Northern Corridor Transit Transport Coordination Authority NCTA : Northern Corridor Transit Agreement NDC : Nacala Development Corridor NEPAD : New Partnership for Africa`s Development OSBP : One Stop Border Post PMAESA : Port Management Association of Eastern and Southern Africa PPP : Public-Private Partnership REC : Regional Economic Community RSA : Republic of South Africa RSDI : Regional Spatial Development Initiative SAD : Single Administrative Document SADC : Southern Africa Development Community SDI : Spatial Development Initiative
  • 4. iii SSA : Sub-Sahara Africa SSATP : Sub-Sahara Africa Transport Programme TCC : Tans CapriviCorridor TCuC : Trans Cunene Corridor TEU : Twenty foot Equivalent Unit TKC : Trans Kalahari Corridor TKCMC : Trans Kalahari Corridor Management Committee TRC : Tanzania Railways Corporation TKH : Trans Kalahari Highway TOR : Terms of Reference USAID : United States Agency for International Development WB : World Bank WBC : Walvis Bay Corridor WBCG : Walvis Bay Corridor Group
  • 5. iv EXECUTIVE SUMMARY UN – Economic Commission for Africa (ECA) places priority on enhancing interconnectivity and facilitating trade by funding corridor interventions. This is in recognition that corridor efficiency is important to the competitiveness of most African economies, especially those that are landlocked. In line with its vision “To be a center of excellence in regional integration in transforming our ports into global competitive platforms for international trade” PMAESA has a work plan which encompasses the stakeholders and the regional integration agenda. It is in this line that it has benefited support from ECA to launch “The Linking Ports to Corridors Initiatives Programme of which the present study is one of the three components. PMAESA (The Port Management Association of Eastern and Southern Africa) is a non profit making, non governmental and non political organization of Ports and Harbors Authorities in Eastern and Southern Africa region established under the auspices of the United Nations Economic Commission for Africa (ECA) to contribute to the improvement, coordination and harmonization of the port services and activities of the sub-region. Port development is however incomplete without taking into account the entire supply chain which include infrastructure (port, road, rail and information system), regional cargo tracking systems, harmonization of regional customs etc…which are the main issues Corridor Management Initiatives are dealing with. Currently, there is a diversity of Corridor Development approaches and institutions in a number of countries in the Eastern and Southern Africa region focusing either on transport logistics or economic development along corridors or both. Different forms of corridor management institutions and arrangements ranging from private sector led arrangements to those that are State run authorities are operational in PMAESA region. The existing bodies differ from the founding instrument, working mechanism, the funding arrangement etc… while their overall common objective is to enhance competitiveness of regional economy through optimization of business operational cost along the corridor. Some Corridor Management Institutions have been problem solving on one hand while on the other hand corridor issues are solved through an ad hoc working group formed to address specific issues. And if most regional corridor development authorities pursue private sector participation, yet when it comes to corridor development and coordination, the mechanism are government owned and driven. There is therefore a big concern on the slow of implementation of protocols or any other transit transport facilitation instruments and a true PPP approach is yet to be effectively structured to ensure public-private interaction in corridor development. In PMAESA region, the sustainability of most corridor institutions is another challenge. Funding arrangements include membership fees, contributions from Governments, donor support and traffic- based usage fees. The latter form of funding is yet to be applied while most appropriate as it maintains pressure to the CMI to deliver tangible benefits for corridor stakeholders to justify its funding. The legal instruments governing the CMI have been assessed as treaties, agreements, MoU , protocols etc… and can refer to international laws or can be a written agreement between two or more sovereign public law entities such as States. The challenge remains that the legal instruments governing most of the CMI generally lack provisions that oblige signatory bodies to enforce decisions through enactment of relevant national policies and legislation.
  • 6. v PMAESA region Corridor Initiatives differ therefore in terms of constituency, focus, organizational set-up, capacity but meet on an overall objective of contributing to the competitiveness of the region in the global economy. There is therefore a need to search for the best practices in corridor development and related need to share experiences among corridor development initiatives through a partnership of Public and Private Stakeholders in all PMAESA ports and corridor countries. This is likely to be achieved by setting up a “Permanent Regional Corridor Development Working Group” as expressed by a wide range of stakeholders in various corridor development meetings. The current study commissioned by PMAESA and funded by UN – ECA has an overall objective to propose a proper mechanism for the operationalisation of such Permanent Regional Corridor Development Working Group. The methodology approach to attain that objective consists to (Chap II) a description of each corridor ( from the north-eastern Djibouti-Ethiopia to the south-western Walvis Bay corridor) through various aspects. An emphasis has been put to those that have been visited by the Consultant, specifically with the interest to highlight experience or best practices that such corridors have achieved in terms of: • Strengthening of institutional capacity through enhanced Private and Public sector involvement in Corridor development (WBCG); • Integration of economic development approach (SDI) in transport corridor management (MCLI) • Dealing with “Bottlenecks” to transit transport in particular and to trade facilitation in general (NC-TTCA); • Integrated infrastructure development along the corridor :port, rail, road, pipeline (TRANSNET model) • Financial sustainability (MCLI) and • Facilities and performance of the port serving the corridor. The overall objective is to identify those “Champion(s) Corridors” that the Working Group mechanism can refer to in each of above expected achievements and also those corridor development activities that would require support from such mechanism. Chap 3 makes proposal on the areas of cooperation and exchange of experiences (Lessons learnt). A review of corridors on study summarizes their main characteristics as follow: o Djibouti – Ethiopia Corridor does not have a permanent secretariat and is governed by a committee of experts and an inter-ministerial committee. There is no private sector representation on these committees. There is therefore a need to learn from others for setting up a corridor institution to speed up the harmonization and simplification of transit traffic documentation, to put in place a transit customs system and professionalize the corridor development initiative by involving the private sector stakeholders. o The Northern Corridor is an interstate body that has been particularly effective in driving the implementation of regional transit regimes at national level. The private sector stakeholders is now involved through a Consultative Forum and is likely to improve the operational dynamics of the TTCA. However the decision making is still colored with some political considerations which can slow down the pace of implementations of activities.
  • 7. vi o The Central Corridor: The CCTTFA is a new entity largely based on arrangements that are similar to the NC-TTCA. Its funding regime helps to understand the critical role that donors can play in getting corridors institutions off the ground. o The Dar Es Salaam Corridor is the only one of the corridors reviewed to have a body founded on a Constitution. However this has been rather a constraint as the approval process has taken a long time. Nevertheless the institutional framework in place has continued to develop an action plan and to lobby for reforms which enhance operational activities. The joint venture between Tanzania and Zambia is reflected in the management structure. o Maputo Corridor is one of the most active corridor which has played a key role in creating a transport corridor where freight logistics has enabled favorable environment for trade, investment and catalyzed regional integration. Although the corridor is predominantly private sector driven, the MCLI is conducting a process of corridor development where the Government has influence through the DoT in South Africa. o Beira Corridor: The BAGC initiative is an example of partnership between the government of Mozambique, the private sector and the International Community which aims to stimulate a major increase in agricultural production in the Beira Corridor and improve the productivity and incomes of smallholder farmers. o Nacala Corridor is One of the first development corridors identified as a regional priority developed jointly by the governments of Mozambique and Malawi in order to exploit the significantly under-utilized natural resources of both countries. o Walvis Bay Corridors: The WBCG is one of the most active and aggressive corridor bodies in Africa. It is a business development oriented and is dominated by a few large private sector stakeholders. The WBCG was established as PPP and has now extensive experience in corridor management and marketing with concrete achievements such as the SAD (Single Administrative Document). o The North – South Corridor: has been put in place to facilitate implementation of various SADC regional agreements in particular the Protocol on Transport, Communications and Meteorology and the Protocol on Trade. A Memorandum of Understanding (MoU) establishing the NSCMC has been signed between 7 countries namely: Botswana, RDC, Malawi, Mozambique, South Africa, Zambia and Zimbabwe as a strategic partnership of the stakeholders of the public and private sectors and regional institutions for the primary purpose of promoting and facilitating the provision of safe and efficient movement and transport services along the length of the NSC and in its hinterland. As a result, a number of transit and transport corridor arrangements are operational in PMAESA region with an overall objective to put in place an operational instrument to manage the trade routes for more efficiency and cost effectiveness. It is in the interest of the entire sub region that this objective be pursued through a coordinated and collaborative manner. A regional platform for a networking as well as for ensuring fair competition and knowledge sharing about best practices has been identified as a mechanism likely to play such role.
  • 8. vii Whereas the TORs for this study suggest to name such mechanism “The Permanent Regional Corridor Development Working Group”, the Consultant has proposed and named such mechanism “Eastern and Southern Africa Corridor Development Initiative” (ESACDI) as a partnership of public and private stakeholders in all corridor countries established to facilitate the provision of efficient transport services along the corridors and their hinterland. The ESACDI would be an advisory body principally responsible for facilitating transit traffic movement and for initiating policies and laws related to transit transport and trade facilitation with a simple and cost-effective institutional structure. The latter looks more like an “issues-based program” arrangement than a formal institution, likely to add value to those existing facilitation mechanisms in corridor management than overlapping them. The study defines for the mechanism, the membership, the institutional design, the roles and responsibilities, and the working mechanism. The Consultant further proposes PMAESA as a regional well established Organization interacting both with Ports and Corridors to host the ESACDI Secretariat and coordinate its overall activities.
  • 9. 1 “STUDY FOR THE ESTABLISHMENT OF A PERMANENT REGIONAL CORRIDOR DEVELOPMENT WORKING GROUP IN PMAESA REGION”. I. INTRODUCTION Transport corridors are seen today as a primary area of focus in infrastructure development and trade facilitation strategies to be pursed across Africa at both sub-regional and continental levels. UN-Economic Commission for Africa (ECA) places priority on enhancing interconnectivity and facilitating trade by funding corridor interventions. It is in this line that PMAESA has benefited support from ECA to launch “The Linking Ports to Corridors Initiatives Programme of which the present study is one of the three components. PMAESA (The Port Management Association of Eastern and Southern Africa) is a non profit making, non governmental and non political organization of Ports and Harbors Authorities in Eastern and Southern Africa region established under the auspices of the United Nations Economic Commission for Africa (ECA) to contribute to the improvement, coordination and harmonization of the port services and activities of the sub-region, in a bid: to improve the effectiveness of their benefit to vessels and goods and to reinforce the cooperation with the hinterland countries ; To contribute to the ratifying and implementation of international norms in the port and maritime domain by the member countries; To be a critical centre of excellence for ports, maritime and related industries in the region by playing a significant role in promoting the regional economy through the facilitation of trade. Derived from the above, the key role of PMAESA is to collaborate with key players in the region and the international development partners to promote best practices which ensure quick flow of cargo and efficient service delivery for ports and other facilitators and enable them meet: Port competitiveness and international benchmarks Regional integration Economic growth. 1.1. Motivation of the study: Ports are integral and premier components of the global transportation chains. Their operational efficiency and effectiveness have profound impact on the level of trade, given that 90% of the global cargo is seaborne. However, port development is incomplete without taking into account the entire supply chain which include infrastructure(port, road, rail and information system), regional cargo tracking systems, harmonization of regional customs etc…which are the main issues Corridor Management Initiatives are dealing with. Currently, there is a diversity of Corridor Development approaches and institutions in a number of countries in the Eastern and Southern Africa region focusing either on transport logistics or economic development along corridors or both .While Some of these are managed with a structured institutional arrangement, others simply exist and function. And if the reasons for establishing corridor institutions are generally similar, the legal instruments governing them are not uniform. Examples of legal instruments include treaties (Northern
  • 10. 2 Corridor), Multilateral Agreements (Central Corridor), MoU (Trans-Karahari), Constitutions ( Dar Es Salaam) and Company Registration (Maputo). Some of these management arrangements are State run authorities while others are private sector led, operating as lobby groups. The funding mechanism also differ from a corridor to another ranging from membership fees based on equal contributions (Dar Es Salaam Corridor) to Donors support (AfDB grant for startup of Central Corridor activities) through tonnage levy collection ( Northern Corridor). SSA Corridor Initiatives differ therefore in terms of constituency, focus, organizational set-up, capacity but meet on an overall objective of contributing to the competitiveness of the region in the global economy. There is therefore a need to search for the best practices in corridor development and related need to share experiences among corridor development initiatives through a partnership of Public and Private Stakeholders in all PMAESA ports and corridor countries. This is likely to be achieved by setting up a “Permanent Regional Corridor Development Working Group” as expressed by a wide range of stakeholders in corridor development meetings ( RESDICC in Dar-Es-Salaam- May 2005 , PMAESA Meeting on Regional Corridor Management Authorities in Nairobi-March 2006 and SSATP/REC meeting in Nairobi – April 2006). The various topics and presentations made during those meetings by corridor management and port authorities and related discussions clearly demonstrated the need for the exchange of experiences , ideas, approaches and programs among Corridors Initiatives to promote best practices in corridor development. It is worth mentioning that the idea of establishing a regional mechanism for consultation and coordination is going its way from the Walvis Bay Corridor Group (WBCG) initiative at the Regional Spatial Development Initiative Coordinating Committee (RESDICC) in Dar Es Salaam in May 2005 to the PMAESA meeting on Regional Corridor Management Authorities in Nairobi ( 20- 21 March 2006). A draft Concept Paper on Conceptualization of a regional mechanism for consultation and coordination among corridor initiatives in SSA was facilitated by The Regional Spatial Development Initiative Programme and was presented by Drs. Eline Van Der Linden in the latter PMAESA meeting. The resolution of the meeting on the proposed approach stated as follow: “The need for coordination of efforts and consultation on approaches to corridor development in Sub-Sahara(SSA) was emphasized at the PMAESA Regional Corridor Management Authorities Meeting. The Meeting recognizes the WBCG presented initiative on the inter-regional corridor cooperation and consultation and supports the proposal. The meeting requests the WBCG in collaboration with the PMAESA Secretariat and FESARTA to drive the proposed regional consultative mechanism, for which the working title is the “Regional Corridor Development Working Group”, and provide an institutional anchor for the mechanism”. The Consultant is not pretending to reinvent the wheel in undertaking the current assignment as previous studies have been undertaken in this area (see Biography) and especially that there are already enough regional forums where “corridor issues “are discussed.
  • 11. 3 However, if the Demand for a Regional Coordination mechanism has been clearly outlined in previous studies, a proper mechanism for the operationalisation of the already proposed Permanent Regional Corridor Development Working Group in PMAESA region is yet to be put in place. The current study aims to this objective and is also proposing the arena for exchange of experience and promotion of best practices in corridor management which among others include: the removal of NTBs, Private sector involvement in infrastructure development, cross-border management/OSBP, institutional framework capacity etc… 1.2. Objective of the study According to the Terms of Reference ( TOR), the objective of the study is to propose a proper mechanism for the operationalisation of a Regional Corridor Development Working Group. The proposed Working Group would be assigned with following tasks: • To coordinate collaborative efforts , rather than local, individual and partly competitive efforts; • Promote exchange of experiences between corridor authorities, regional economic organizations and stakeholders; • Enhance cooperation and consultation with development partners; • Evaluate progress made on a regular basis, on transit transport facilitation in the region; • Enable dialogue between private and public sector at national and regional level on corridors issues; • The regional working group /mechanism would serve as a resource and know-how center to partner with decision makers, industry and development partners. 1.3. Expected outputs It is expected that the proposed study will result in achieving following outputs: • The strengthening of institutional capacities; • Improvement of Corridor frameworks; • Enhancement of operational and commercial opportunities; • Cooperation in socio-economic development along the corridors; • Promotion of regional best practices but also international best practices; • Smart use of existing technology: internet-based exchange platform, bulletin board where questions can be posted for discussion among the members and ideas shared without extensive travel. 1.4. Methodology Following steps have been followed to conduct this study: • A Review of extensive literature and relevant published documents on country corridors and ports activities: annual reports, conference/workshop on corridors management outputs, Port Master Plans , internet searches etc… • Interviews with selected key stakeholders involved into ports and corridors management on following main issues: The Objective of the proposed Regional Corridor Development Working Group : sharing experience, expertise and lessons learnt, fostering cooperation and consultation between Corridor Groups, the working group mechanism as a Corridor Resource Center for regional authorities and international partners;
  • 12. 4 The issues to deal with: consultation on “institutional challenges” (involvement of Private Sector in Corridor management, sustainable funding mechanism etc…) , cooperation on “operational challenges”(OSBP, customs integration, transit transport facilitation instruments etc…); The institutional design proposed as rather a Mechanism than an institution to ensure easy cooperation with existing inter-corridor initiatives and avoid overlapping; The role and functions of the proposed RCDWG; The membership: a PPP approach with private sector encouraged to interact and invest in economic development processes on corridors. • Ground visits to Port and Corridor Authorities/Secretariats: The Consultant was based in PMAESA Secretariat in Mombassa – Kenya and has had opportunity to work with KPA- Mombasa Port, NC- TTCA , PMAESA and KTA. Other Ports and Corridors Authorities visited are: TPA/ Port of Dar-Es- Salaam, Central Corridor Dar-Es-Salaam Corridor Port Maputo MCLI (Maputo Corridor Logistics Initiative) Djibouti Port Djibouti Ministry of Transport • Participating to the topic related regional events to market the project and to collect updated data : March ,2010 (14th- 18th ): 14th Meeting of Intergovernmental Committee of Experts of the SRO-EA of the UN-ECA . Kigali – Rwanda. March 2010 (19-20th) : High Level Meeting on Regional Integration. Kigali – Rwanda. April 2010: Meeting of Northern Corridor Heads of Customs on the Operations of The RCTG Scheme (Regional Customs Transit Bond Guarantee). Organized by COMESA. Mombasa - Kenya April (28-30th) 2010: Workshop on Trade Facilitation organized by UN-ECA . Dar- Es – Salaam / Tanzania. In the off-moments of the meeting, the Consultant had useful discussions with Delegates from NEPAD, ADB, UN-ECA, USAID HUBs and other RECs such as EAC, COMESA, SADC, IGAD, CEPGEL etc…and the idea of setting up a regional corridor consultation mechanism was fully supported. • The methodology approach for this study consists to ( Chapter 2) a description of each corridor ( from the north-eastern Djibouti-Ethiopia to the south-western Walvis Bay corridor) through various aspects with the following Corridor description and hinterland markets served; Key goals and objectives; Institutional Arrangements; Key infrastructure Development projects; Impact of the infrastructure improvements and Challenges
  • 13. 5 An emphasis has been put to those that have been visited by the Consultant but specifically with the interest to highlight experience or best practices that such corridors have achieved in terms of: • Strengthening of institutional capacity through enhanced Private and Public sector involvement in Corridor development (WBCG); • Integration of economic development approach (SDI) in transport corridor management (MCLI) • Dealing with “Bottlenecks” to transit transport in particular and to trade facilitation in general ( NC-TTCA implementation of COMESA Transit Transport Facilitation Instruments); • Integrated infrastructure development along the corridor :port, rail, road, pipeline (TRANSNET model) • Financial sustainability (MCLI) and • Facilities and performance of the port serving the corridor. The overall objective is to identify those “Champion(s) Corridors”, the Coordination/Consultation mechanism can refer to in each of above expected achievements and also those corridor development activities that would require support from such mechanism. Chap 3 makes proposal on the areas of cooperation and exchange of experiences (Lessons learnt). Based on above steps and elements, a regional mechanism to coordinate and facilitate efforts made by various stakeholders in detecting corridors constraints and inefficiencies and remedying them is proposed (Chap 4). The mechanism proposed defines for the Regional Corridor Development Working Group: 1. The membership 2. Its Objectives 3. Its roles and functions (TORs) 4. The structure, responsibilities and procedures 1.5. Coverage Area Membership of PMAESA ranges from Sudan in the North to Namibia in South-West Africa, including the Indian Ocean islands and some land-locked countries. A Total of 18 full members of PMAESA are : Djibouti ; Mauritius ; South Africa Mozambique Sudan ; Namibia ; Ethiopia ; Tanzania ; Zambia ; Seychelles Somalia ; Zimbabwe Kenya ; Burundi; Rwanda Madagascar ; Reunion; Malawi ; Eritrea
  • 14. 6 This study covers 8 main PMAESA ports and 11 transport corridors in eastern and southern Africa and is focused on the corridors with structured management institutional framework. Those are: 1. Djibouti Port : Djibouti – Ethiopia Corridor (should be mentioned on the map) 2. Mombasa Port: – Northern Corridor 3. Dar-Es-Salaam Port: - Central Corridor - Dar-Es-Salaam Corridor/TAZARA Corridor 4. Nacala Port : Nacala Corridor 5. Beira Port : Beira Corridor 6. Maputo Port : Maputo Corridor 7. Durban Port : North-South Corridor 8. Walvis Bay Port: - Trans-Karahari Corridor - Trans-Caprivi Corridor - Trans-Cunene Corridor Mombasa Dar es Salaam Nacala Beira Maputo Road Transport Corridors of East and Southern Africa Walvis Bay Lobito Luanda Saldanha Cape Town Durban Maputo Beira Johannesburg Kampala Bujumbura Kigali Kolwezi Lubumbashi Kitwe Lusaka Kafue Harare Pretoria Nairobi Mombasa Dar es Salaam Nacala Blantyre Kinshasa Mbeya Lilongwe Tete Kariba Lake Malawi Lake Tanganyika Lake Victoria Windhoek Kapiri Mposhi Livingstone Francistown Maseru Dodoma Pretoria 1 2 3,7 4 5 6 7 7 7 3,7 7 3,7,9 8 9 10 3,7 7,9 7 6 7 7 7 2,3,7 1,2 5 7 Bulawayo Gaborone Mbabane East London Coega Port Elizabeth Kisangani 1 Northern 2 Central 3 Dar es Salaam 4 Nacala 5 Beira 6 Maputo 7 North-South 8 Trans Kalahari 9 Trans Kaprivi 10 Trans Cunene
  • 15. 7 1.6. Definitions Corridors can be defined as a collection of routes linking several economic centers, countries and ports. While some are only road transport corridors, most of them include more than one mode of transport (Northern Corridor). “A Transport Corridor is a multi-modal corridor connecting two points of economic activity (together with as many places of economic concentration as possible along its length) as reliably and as cost effectively as possible. Its primary focus is on economic efficiency rather than economic distribution and it should ideally provide users with transport choices.” (Source: RSDI Technical Unit definition). The ultimate goal of setting up a transport Corridor is to transform the latter into “Development Corridor” which is characterized by the integrated nature of its programs and typically focuses on the upgrading of transport and energy infrastructure and the crowding-in of investment, initially in those sectors in which the potential exists to develop anchor sectoral economic projects and subsequently into related sectors that bring about integrated development at local and regional level. Development Corridor are usually medium-term initiatives involving multiple stakeholders working towards a series of inter- related goals to bring about local and regional economic development. ( Source: RSDI Technical Unit Definition). The Economic Corridor approach “recognizes” that Development is not just a matter of infrastructure improvement but that the latter needs to be integrated with other economic opportunities such as trade and investment and include efforts to address social and other impacts arising from increased connectivity.( Source: Paulo Jorge Fernandez/PDNA/Econogistics, March 2010) Arnol ,Olivier and Arvis (2005) state that the quality of a corridor is measured in terms of transit time and cost for shipment of goods along the corridor. The reliability of a corridor is measured in terms of not only the transit time but also the flexibility provided in terms of diversity of services offered on multimodal routes. 1.7. Regional Initiatives and Corridor management Institutions Development agencies such as the World Bank (SSTAP), the AfDB, the European Union Development agencies all place emphasis on the facilitation of inter-State trade along corridors and are increasingly funding corridor developments following the realization that transportation along corridors is hampered by numerous hurdles, including poor conditions of transport infrastructure (rail in particular), Borders delays, a proliferation of road checkpoints and other practices that increase monetary and time costs. Various initiatives have been designed to both monitor the performance of corridors and to eliminate the non-tariffs barriers (NTBs). The objective is to enhance the efficiency and cost-effectiveness of the main transport corridors into landlocked countries ( The Almaty Program of Action). In eastern and southern Africa, Corridor Management Committees are emerging as strategic institutions for addressing all aspects of transport and transit of goods throughout a given corridor, typically based on an agreement signed by all participating countries and private sector stakeholders. They deal with a wide range of issues such as infrastructure, customs, bottle-necks and user charges.
  • 16. 8 To name just few and specifically in eastern and southern Africa region, a number of corridor management institutions have been set up such as Walvis Bay Corridor Group, Maputo Development Corridor ,North-South Corridor in Southern Africa. In East Africa the Northern Corridor Transit Agreement ( NCTA, 1987) has been signed by five countries : Kenya, Uganda, Rwanda, Burundi and DRC to guarantee each other free passage through their respective territories of transit traffic and trade. The NCTA has led to the establishment of A Northern Corridor Transit Transport Coordination Authority for the implementation of the treaty. The Djibouti Corridor in the Horn of Africa is a multi-modal network of routes linking the Port of Djibouti to the landlocked Ethiopia set up with several bilateral agreements signed between the 2 Governments relating to/or affecting transit transport services. Corridor management Institutions (CMIs) are therefore promoting and developing various transit corridors across Africa but the challenge remains to set up a critical forum of consultation and coordination given the diversity of stakeholders and a large number of government agencies that oversee different activities within a corridor. The coordination requires a public – private partnership to address a wide range of problems including investment in infrastructure, regulation of transport and trade and facilitates private sector participation and professionalism in the logistics industry. It has indeed been realized that Corridors with corridor institutions have usually been better equipped to address challenges than those which do not have an institutional arrangement. II. OVERVIEW OF THE CORRIDORS ON STUDY 2.1. DJIBOUTI – ETHIOPIA CORRIDOR: A Corridor without road blocs. The Djibouti – Ethiopia Corridor is a network of multi modal routes which link the Indian Ocean port of Djibouti to landlocked Ethiopia. The port of Djibouti is the main entry point and experiences today increased maritime traffic following the Ethiopian demand essentially. Addis-Djibouti Railway
  • 17. 9 2.1. 1. Port of Djibouti: Located at the crossroads of the sea roads between Europe, Asia and Africa, the port of Djibouti (PAID) is in constant evolution seeking out to become the cross road of international trade. Any vessel transiting via Suez, the Red Sea and Indian Ocean passes very close to Djibouti. It is the principal port of the country and has regular liner services with Europe, Asia, Far East, Arabian Gulf and Indian Ocean. The port of Djibouti has: • a capacity to handle 10 million ton per year; • a Free Zone area of 14 ha; • And provides 18 berths while giving access with safe and well equipped navigation channels. • An industrial and commercial Free Zone of 17 ha is operational. Since 2000, Djibouti and DP World signed an agreement of management concession of the port for 20 years. The aim of the concession is: To provide an efficient and reliable service , To promote the capacities and resources of the port both regionally and internationally and To attract more foreign investment to develop modern intermodal infrastructure facilities and establishment of Free Zone area. • Port of Djibouti
  • 18. 10 Djibouti Port Advantages The most advantageous and beneficial points of Djibouti Port are: • Ideal Location & Good Market • DP World Management • Ethiopia is natural hinterland of Djibouti Port • Transhipment cargo • IT Efficient (Maximo, Navis, Sage, CCTV,etc…) • EDI System for Manifest Cargo • Safe place (CCTV) and secure harbour implementation of ISPS code (Port Access System) • Regular liner services connecting about 200 ports in 71 countries in the world. • Good performance and high productivity • Good equipment and infrastructures facilities • Most centrally situated port in the COMESA market (population 380 million people) • Modern telecommunication and banking services • Close proximity to Djibouti FZ with many new companies 2.1.2. The Port of Doraleh The increase in maritime traffic has led to the construction of a new deep water port (18 - 20m), being able to accommodate the latest generation of containers ships, Super-Post-Panamax. The new port of Doraleh is located 12 km from the old port and is equipped with the following infrastructures: A Container Terminal: is operational since beginning of 2009 and has required an investment of about 370 million US dollars. In the first step, it has been equipped by a quay of 1,050 m with depth of water of 18 m and a capacity to handle 1,5 million TEUs . In the second stage, it will have a 2,000m quay with a capacity of 3 million TEUs . An Oil Terminal: operational since 2005, with a deep water of 18m, 2 berths, a pumping capacity of 2,000 tons/hour, highly secured and able to store 3 million tons annually. Additional facilities make it possible to take delivery and supply of all types of petroleum products, chemicals, LPG to tankers for the transport of oil, chemicals, liquefied gas…. A commercial and industrial free zone of 400 ha in its first phase extendible to 1,000 ha. The new bulk terminal is equipped with 2 ship unloaders with a capacity of 300 t each per hour. It has also 12 lines for loading trucks with capacity of 1200 bags per hour per line. The warehouse capacity is 30,000 ton. Plans are underway for construction of second phase warehouse storage of fertilizers on a capacity of 40,000 ton. Djibouti Bulk Terminal will have a huge impact on the performance of the port. 2.1.3. Djibouti Corridor routes •Djibouti – Addis Ababa Corridor: The Rail line from Djibouti to Addis Ababa is long of 781km but is in a very poor state. Over the years the share of railway in the volume of traffic carried has been declining. The railway sector is in deficit and is today off-taking less than 3% of import/export traffic with Ethiopia estimated to 250,000 tons per annum. A major project establishing a rail connection linking the new port of Doraleh infrastructure to Future Free Zone International
  • 19. 11 Airport of Djibouti is a part of a synergy of multimodal transport being developed by Djibouti. The Road line through Galafi long of 910 km , out of which 217km in Djibouti is currently the main road corridor in good condition . The Road through Dewenle, 840km, out of which 100km in Djibouti is rarely used due to condition in Ethiopia Road transport has grown substantially to become the dominant carrier for freight along Djibouti corridor. The under-performance of railway has led Ethiopian private sector to invest in road sector by establishing large transport companies using quite a number of trucks. Rehabilitation of the rail and /or its concession has not so far been achieved and an idea of creating a new railway line on both side in Ethiopia and Djibouti is undergoing. Feasibility studies are at advanced stage for the Ethiopian Railway Corporation project targeting to interconnect Ethiopia with Djibouti, Kenya and Sudan. The new “Societe Djiboutienne de Chemin de Fer” is also underway to connect with not only Ethiopia but also the airport and the rest of Djibouti with the new Djibouti port facilities. The project will meets The Djibouti Hub Project needs. In order to deal with the rapid traffic growth and stimulate economic development activities around the port Djibouti has launched The Djibouti Hub Project based on public/private partnership (PPP) practice in the management of port and airport sectors and in the development of free zones Starting from 2000, management agreements have been concluded with the authorities of Dubai: Dubai Ports World, Jabel Ali Free Zone Authority, Dubai Customs etc…. After ten years of experiencing the partnership, the Djibouti Business Hub concept and its underlying governmental vision are matching with many projects. The execution of the Doraleh Container Terminal construction, the creation of an airport free zone, the Doraleh free zone project, and the enlarging the stocking capacity of the Doraleh petrol terminal etc… constitute a key element in the promotion of Djibouti and in attracting direct foreign investments. 2.1.4. Legal Framework of Djibouti – Ethiopia Corridor • Several bilateral agreements have been signed between the Governments of Djibouti and Ethiopia relating to or affecting transit transport services: - The General Agreement on Transport (March 21, 1981) with the major objective to guarantee Ethiopia’s access to sea - The Djibouti-Ethiopian Treaty on the Railway (March 21, 1981), dealing mostly with the management of the railway, and marginally transit (Ethiopia is to guarantee minimum volumes to ensure profitability of the railway). • Additional agreements include : “The Agreement on Road Transport Services” (December 12, 1993 and amended on September 10, 1996), guaranteeing free access for operators from both countries, and specify rates are freely negotiated between shipper and carrier and “The Agreement on the utilization of the port of Djibouti and services to cargo in transit “(April 13, 2002), dealing with Customs, Road Transport, Facilitation, and establishing an Inter- ministerial Committee for the follow-up of the agreement.
  • 20. 12 2.1.5. Challenges and lessons learnt from Djibouti Corridor Djibouti – Ethiopia Corridor has not a formal institutional framework. Transit and transport issues are dealt through ad hoc Bilateral Committees. It is however felt that the implementation of measures agreed on transit and trade facilitation between two meetings suffer from a lack of follow up. Setting up A corridor management group or committee would be dealing among others with following : Facilitating removal of non physical barriers in Customs clearance procedures in Djibouti port Advocating for infrastructure improvement ( Railway sector); Monitoring corridors` performance Setting up stakeholders network Initiating policy and laws related to transit transport and trade facilitation The rail transport sector has collapsed following to increasing competition from road transport and the obsolescence of its equipment and its rolling stock. Although there is a willing on both side ( Ethiopia and Djibouti) to revitalize the sector, the regional approach of enhancing collaborative efforts ( Ethiopia/Djibouti) as per Mozambique and South Africa cooperation model to develop railway towards Maputo port( CFM and SPOORNET) is giving place to individual/national and partly competitive efforts. Information on delays and cost along the corridor indicates the idle time compared to driving time along the corridor is not favorable to operators due to old fleet (maintenance) and terminal delays. This translates into low utilization of trucks with an average of 2.5 trips per month i.e. 4,000 km per month. As there is no transit regime in Djibouti, Ethiopian Customs is clearing cargo directly in Djibouti with inconvenience for Ethiopian small scale companies without sufficient resources to pay customs duties upfront, resulting in long period before customs clearance. The counterpart result is however a best practice on Djibouti Corridor that there is no road blocs along the corridor meaning that cargo cleared in Djibouti will reach the final destination without any other inspection formality. 2.2. THE NORTHERN CORRIDOR: NCTA is a multilateral treaty governing transit transport operations. 2.2.1. Coverage area and institutional framework The Northern Corridor covers the transport routes from the port of Mombasa to Uganda, Rwanda, Burundi, and Eastern DRC, as well as Northern Tanzania and Southern Sudan. Conscious of the need to cooperate with a view to facilitating their interstate and transit trade, the member States of Burundi, Kenya, Rwanda and Uganda negotiated and signed the “Northern Corridor Transit Agreement (NTCA)” in 1985. The NCTA entered into force on 28 May 1986, following its ratification by all the four contracting States. In 1987, the DR of Congo acceded to the NTCA , thereby becoming the fifth contracting State. A revised NCTA with provision for the transformation of the corridor was signed in Nairobi in October 2007. The objectives of the NCTA are to: • Ensure freedom of transit among the member states • Safeguard right to access to/from the sea for landlocked countries • Develop and integrate the regional transport facilities and services • Facilitate inter-state and transit trade
  • 21. 13 The Northern Corridor is the only one in the East, Central and Southern African region with a multilateral treaty governing transit transport operations between a group of countries over access to and from the sea. In order to ensure implementation and compliance with the provisions of the NCTA, the Northern Corridor Transit Transport Coordination Authority (NCTTA) was established with three basic organs, namely: The Authority, constituted by Ministers responsible for transit transport matters in each Contracting State it is the main policy organ; The Executive Board comprising the Permanent Secretaries responsible for transit transport matters, acts as the administrative and executive organ The Permanent Secretariat, located in Mombasa, Kenya is the operational organ of the NCTA. Two specialized committees have been established, namely: Infrastructure Development and Management Committee and the Customs ,Trade and Transport Facilitation Committee. In addition the Northern Corridor Stakeholders Consultative Forum, which brings together users and service providers (both private and public) along the corridor exists since 1999. The Stakeholders Consultative Forum The Northern Corridor Stakeholders Consultative Forum was initially introduced as a Kenya Ports Authority initiative to facilitate the delivery of Uganda cargo imported through the Port of Mombasa. The Forum, which was initially a Kenya-Uganda affair, progressively evolved into a regional gathering bringing together Chief Executives of Public and Private sector institutions involved in transport and trade related activities in the Northern Corridor region. The Stakeholders Forum, which is currently chaired by the Commissioner-General of the Kenya Revenue Authority, brings together other Commissioner-Generals of the member states – Burundi, the Democratic Republic of Congo, Kenya, Rwanda, and Uganda - the Managing Director of the Kenya Ports Authority as well as other Managing Directors of the Lake Ports and other dry ports established in the member states, including the Port of Bujumbura, Burundi, MAGERWA in Kigali, Rwanda. It also includes the Chairmen of the Transporters Associations in each of the member states; the Chairmen of the Clearing and Forwarding Associations in each member state; the Chairmen of the Manufacturers Associations; Insurance Associations; Associations of commercial banks financing import/export operations; police departments involved in the supervision and escort of transit cargo; representatives of the chambers of commerce of the member states, as well as many other operators involved in transit transport activities along the Northern Corridor. MANDATE OF THE NC-TTCA The mandate of the NCTTCA is to ensure that the Northern Corridor remains the most effective route for the surface transport of goods between the respective countries and the sea, as well as to safeguard the right of transit that member States have granted to each other.
  • 22. 14 MISSION OF NCTTCA The mission of NCTTCA is to transform the Northern Corridor into a corridor that offers internationally competitive, safe and transparent transit transport services; promotes regional trade and integration, and provides opportunities for the Private sector to invest along the corridor. In that line a five-year Strategic Plan has been elaborated with following objectives: To transform the Northern Corridor into an Economic Development Corridor; To harmonize and streamline policies and legal framework on transport and trade facilitation, among its member States and in collaboration with Regional Economic Groupings , such as COMESA and EAC; To improve transport and communication infrastructure and services along the corridor, relating to all modes of surface transportation; To enhance knowledge management and monitoring of corridor performance To incorporate crosscutting, which include HIV/AIDS and anti-corruption strategies into TTCA programs. PROGRAMMES The strategic objectives for the NCTTCA are as follows: • Harmonization and streamlining of policies and legal frameworks for transport and trade facilitation; • Improved Development of opportunities and incentives for increased private sector investment and participation in the Northern Corridor; • Transport infrastructure and services relating to road, rail, pipeline, inland waterways, terminals and communication services; • Enhanced knowledge management and performance monitoring ACHIEVEMENTS Since its inception, TTCA has undertaken various measures aimed at facilitating the smooth flow of cargo and the movement of vehicles along the Corridor Significant achievements include: • Simplification of Port clearance procedures. Release of landed cargo from the Port of Mombasa can now be achieved within two days, down from an average of seven days, following a review of documentation and clearance procedures at the Port. • There has been a significant reduction in the number of national documents and copies to which transit transport along the Corridor was subjected to. • Northern Corridor countries are now using the COMESA Customs Declaration Document (CD-COM), a merger of the Road Transit Customs Declaration (RTCD) formulated by TTCA and the Single Goods Declaration (SGD) by COMESA. Work continues towards the withdrawal of the remaining national documents that are still used alongside the CD-COM. • Transit time between Mombasa, Kenya, and Bujumbura, Burundi, has been reduced by half, from over 30 days to about 15 days, as a result of transit facilitation measures undertaken. Some unnecessary border formalities along the Corridor have been removed. • Reduction of transit charges and elimination of some non-tariff barriers. • Mobilization of funding for the rehabilitation of major highways along the Corridor. • Harmonization of transit charges. • Harmonization of axle load limits
  • 23. 15 • Enhanced co -operation among its member States in matters concerning transit transport NORTHERN CORRIDOR LOCALIZATION Source: NC-TTCA 2.2.3. Modes of transport: Various modes of transport and modal combinations, which include roads, railways, pipelines and inland waterways are applicable and used along the corridor. Among Northern Corridor Countries, only Kenya and Uganda are connected by rail, although multimodal combinations are possible for other countries. 2.2.3.1. Roads The NC main roads network totals nearly 7000km of which 60% is paved. Table 1. Northern Corridor Road network ( Km) Country Paved Unpaved Total Burundi 320 36 356 DR Congo 721 1960 2641 Kenya 1196 0 1196 Rwanda 814 0 814 Uganda 1042 657 1669 Total 4093 2613 6706 Percentage 61% 39% 100% Source: NC-TTCA Port Road/RailIC Border Post Border Border Post Border Post Inland Border Post IC ICIC IC
  • 24. 16 Road transport has grown substantially from its subsidiary position as the provider of feeder services in the 1960s to become the dominant carrier for freight and passengers along the corridor. In the 1980s , the freight market along the corridor was shared equally between road and rail transport .However , by 2003, the market share of road transport had jumped to 85% ( NC-TTCA 2009). This is not however a result of the changing growth of trade in the sub-region but rather due to under-performance of rail transport. Trade in the sub-region is characterized by low value high bulk export commodities which are naturally ideal for railway transport. The road transport has also been boosted by advanced technology with the production of larger and faster heavy goods vehicles. The liberalization of road transport along the corridor has encouraged private sector investment leading to the establishment of large companies, some using about 300 trucks. Besides, these transport operators have powerful lobbies using professional bodies such as the Kenya Transporters Association (KTA). 2.2.3.2. Raiways The railway network ( four lines: Mombasa-Nairobi, Nairobi-Kampala, Kampala-Kasese, Tororo- Gulu-Pakwach) is in rather poor condition. The main operator East African Railway Corporation was managing the main 1300 km Mombasa- Nairobi-Malaba-Kampala line until it collapses where Kenya Railway Corporation ( KRC ) took over with no further performance. The latter recently (2003) made an Agreement with Rift Valley Railways to manage the services in Kenya. The railways provide freight services within Kenya and handles also transit traffic to and from land- locked countries in East Africa countries. The main commodities ferried include cement, coffee, containers, soda ash, sugar, salt, petroleum products, grains and dairy products among others. Kenya Railways has big business in containerized goods. It operates a fleet of about 156 locomotives for the main line and has a carrying capacity of 6,407 wagons and about 588 couching units.
  • 25. 17 Source: NC-TTCA The Northern Corridor railway network comprises of the Kenya/Uganda sections, which runs from Mombasa through Nairobi, Nakuru, Eldoret, Malaba, Jinja, and Kampala to Kasese in West Uganda ( a distance of approximately 1660 km). A branch line runs from Nakuru to Kisumu on Lake Victoria ( 217 km ), from where there is a wagon ferry link with Jinja and Port Bell in Kampala. Out of the total network of approximately 1890 km, almost 800 km , representing 42% is in rather poor condition. The most affected sections are Nakuru-Kisumu ( 217 km), Malaba-Kampala (251 km) and Kampala-Kasese (333 km) which is closed since 1998 due to its state of disrepair. As a result, Rwanda, Burundi, Eastern DRC and Southern Sudan which depend on the Mombasa port for their overseas trade have no links with the East Africa railway system. And despite lower freight rates offered by railways, the trade and transport community largely choose to transport their cargo more by road than by rail due to longer transit times. The railways account for merely 15-20%of transport market along the Northern Corridor. HARMONIZATION OF RAILWAY SERVICES IN EAST AFRICA a) Railway inter-working agreement As a step towards a regional corridor development management and in line with the objective of the study, the eastern Africa experience in railway inter-working agreements remain of a great interest. There is indeed co-operation agreements between Kenya, Uganda and Tanzania railways in the view of securing each party`s interest for a mutual benefit. The agreement provides the modalities of inspection of wagons crossing the border and each party advises the other of dairy gross tonnage which requires clearance within 24 hours, special traffic such as perishables, explosives, livestock among others. Most interesting is the staff inter-working in case of a staff of a different railway is engaged at times of need.
  • 26. 18 b) Traffic claims Each party indemnifies the other of liability for damage to property which occurs as a result of an accident. The agreement states an accident as a fire, explosion or other unavoidable incidents. c) Exchange of locomotives, wagons and other equipment During the exchange of wagons and / or locomotives each party sets it cost upon which negotiations and agreements are made. Cost calculations are done by putting into consideration following: o The cost of the loan on the equipment o Age of the equipment o Depreciation o Interest for capital costs o Maintenance cost and duration of use among others. d) Maintenance Agreements The railways companies have also an agreement on reciprocal services to assist during the breakdown equipment at cost and not at profit as service to other party. e) Invoicing Invoices are sent containing lists of services provided, spares replaces, delay of wagons, parts lost while in the other parties network among others. Since either party sends its own invoices they agree on ways to offset the bills. 2.2.3.3. Pipelines Transport by pipeline is limited today between Nairobi and Mombasa extended to Kisumu and Eldoret from where landlocked countries of Uganda, Rwanda , Burundi and East DRC access their fuel supplies. The pipeline requires to be extended to effectively meet the fuel demand of those countries. The line Eldoret – Kampala- Kigali is under implementation course while the extension to Bujumbura is being planned. 2.2.3.4. Inland Waterways Lakes Victoria, Tanganyika, Albert and Edward are used for transportation of goods inside and outside NC-Member States. The Congo River also plays an important role in transportation. The navigability of Kagera river needs to be explored. These inland waterways are crucial for multi- modal transport chain since they complement other modes of transport in the sub-region. Therefore there is need to mobilize financial resources in order to improve inland transport network.
  • 27. 19 Source: NC-TTCA 2.2.3.5. The Ports The port of Mombasa is the gateway to the Northern Corridor. The port handles domestic and transit trade to Burundi, DRC, Rwanda, Uganda, Ethiopia, Sudan and Tanzania. It is managed by a state owned company, the Kenya Ports Authority (KPA). Mombasa port is the largest on the East Coast of Africa with 16 deep water berths, a large container depot, two petroleum jetties and two terminals for bulk cargo. It is reputed to be the 2nd busiest port in the eastern and southern Africa after the port of Durban in South Africa. The port `s throughput has continued to increase over the years although under-investments in the railway and road infrastructure have weakened its off take capacity. Port of Mombasa : A Gateway to East and Central Africa Port of Mombasa 2009`s Throughput increased by 16.1% in 2009 to 19.06 million tons from 16.42 million tons in 2008. The increase was mainly attributed to improvements in productivity arising largely from automation of port operational processes. During the year 2009, substantial progress was made to improve operations and service delivery. • KPA entered into business partnership arrangements with seven CFS (Container Freight Stations) within its vicinity, thereby facilitating quick and efficient evacuation of containers from the port. This has subsequently improved productivity with the turn-round time of vessels dropping drastically from 5.1 days recorded in 2008 to 3.1 days in 2009.The average container Dwell time also declined from 12.1 days to 6.0 days. • The container yard has also been extended with an additional stacking space of 30,000 m2. (KPA 2009 Annual Report). • In an effect to minimize the cost of doing business at the port, tariff adjustments were made which culminated in the removal of scanning and verification charges with effect from 1st October 2009. • The free storage regime was also reviewed to encourage port users to collect their cargo in a speeder manner and reduce their working capital.
  • 28. 20 • A One Stop Centre for conventional cargo operations is being established and the Port Community Based System rolled out to provide a Single Window platform for faster cargo clearance. Transit Traffic with neighboring countries:Uganda, Tanzania, Rwanda, Burundi, East of DRC, Southern Sudan, Somalia and Ethiopia accounts for 26% 0f total throughput of the port with Uganda dominating ( 80% of the total transit traffic). 2.2.3.6. Funding Mechanism of the NC-TTCA When the NC-TTCA was established, all member countries used to make equal contributions to the Organization`s budget. This mechanism did not prove efficient as arrears accumulated. Over several years (December 2003), the Executive Board adopted a formula, which would apportion the annual budgets as follow: o Burundi : 10% o DR Congo: 20% o Kenya : 30% o Rwanda ; 15% o Uganda : 25% The payment mechanism is either by direct contribution (through Treasury) or by tonnage levy collected at the port of entry Mombasa. Kenya is the only State that opted to pay from the Treasury. With regard to cargo to and from non-member States (Tanzania, Sudan, Ethiopia) passing through Mombasa port, it was agreed that the Secretariat would propose a levy rate for the consideration of the GoK and the KPA. While not perfect, this process has improved funding safety for the NC-TTCA, but is not yet confirmed on a permanent basis. 2.2.3.7.Challenges Many challenges remain to be addressed to reduce the high transport cost and the freight tariff per ton/km along the corridor. It is indeed estimated that the freight cost represents 35-40% of imports value compared to 8% in Europe and 11% in Africa. The freight tariff is calculated at 0.12 USD/ton/km for East DRC, 0.11 for Burundi, 0.90 for Rwanda while it is only 0.04 USD per ton/km in Kenya (NC-TTCA, 2008). The mandate of the NCTTCA being to ensure that the Northern Corridor remains the most cost effective route for the surface transport of goods between the respective countries and the sea, as well as to safeguard the right of transit that the member States have granted to each other, NCTTCA `s main mission is to transform the NC into a corridor that: • offers internationally competitive , safe and transparent transit transport services; • promotes regional trade and integration • and provides opportunities for the private sector to invest along the corridor. NC-TTCA has also been mandated to transform the NC into an Economic Development Corridor (NCSDP). However given the institutional and physical problems faced along the corridor, such transformation will require sustained commitment and involve a multi-step and multi-directional process over an extended period.
  • 29. 21 The SADC region experience would serve as model and the NEPAD Secretariat being in a process of implementing a Spatial Development Programme (SDP) throughout Africa with support from the Regional SDI Programme Unit could explore how to assist with this transformation. In the meantime following are the programmes pursued by the NC-TTCA in a view of facing above challenges. 2.2.3.8. NC-TTCA PROGRAMMES AND DEVELOPMENT STRATEGIES I. Development of opportunities and incentives for increased private sector investments and participation in the Northern Corridor. This Strategic Objective aims directly catalysing the transformation of the Northern Corridor into an Economic Development Corridor. There is increasing recognition of the potential to achieve economies of scale by "crowding in" synergistic investments along transport corridors and therefore turning them from mere transit routes and into Economic Development Corridors (EDC). Mobilization of private sector capital is crucial in accelerating investments in infrastructure development, transport services and other sectors such as mining, value addition in agriculture, manufacturing and service sectors necessary for the achievement of an economic development corridor. The expected cross-border investments should provide additional impetus for the improvement of corridor efficiency by removing the remaining bottlenecks to the free flow of trade and traffic. This Strategic Objective aims at the following outcomes: • A joint approach to mobilizing investments • Proper identification and packaging of investment opportunities • Coordinated marketing of the sub-region. • Establishment of a macro-economic and investment environment that is fully supportive of private sector participation, and: • Improved transport infrastructure, facilities and services. II. Harmonization and streamlining of policies and legal frameworks for transport and trade facilitation This strategic objective aims at harmonization of transport policies and regulations as well as harmonization and implementation of instruments for customs and trade facilitation. It responds to one of the key threats to the NCTA identified in the process of developing this strategy, which is, the lack of provisions in the Agreement that compels member states to enforce decisions through enactment of relevant national policies and legislation. Consequently, the harmonization of national policies, laws and enforcement mechanisms should be an area of focus in future, facilitated by the Secretariat. For the achievement of this strategic objective, two programmes of the TTCA secretariat, namely the Transit and Transport Policy and Planning Programme and the Customs and Trade Facilitation programme need to work closely together to ensure coherence between transport and trade policies among member states. This strategy also embraces the need to use the corridor, not just as a means of access to international markets, but also as a facility for enhancing regional integration and promotion of regional trade. To that extent, this strategic objective provides a mechanism for linking up and
  • 30. 22 ensuring coherence between the initiatives of TTCA with those of organizations that share the same objectives. These include the East Africa Community [EAC], Common Market for Eastern and Southern Africa [COMESA], the Inter-Governmental Authority on Development [IGAD], and the New Partnership for Africa's Development [NEPAD] III. Improved transport infrastructure and services relating to road, rail, pipeline, inland waterways, ports , terminals and communication services. This strategic objective aims at improving the efficiency of the Northern Corridor transport infrastructure services consisting of road, rail, port, oil-pipeline and communications services. Transit costs in the Northern Corridor are still 2-3 times more than those of developed regions of the world. For the landlocked countries, 35-40% of the value of imported goods is attributed to transport costs . A significant proportion of these high transport costs are attributable to poor infrastructure. Similarly, the sub-region's exports are subjected to high transport costs prior to reaching the ports of exit. Reduction of transport costs would enhance export competitiveness; reduce the costs of imports and result in the overall competitiveness of the economies in the region. Maritime ports facilities: The volume of traffic through the port of Mombasa is growing at a significant rate. For example, the installed capacity of the container terminal of the 250,000 TEUs has been surpassed and the port is handling more than 600,000 TEUs per annum (2009). The growth in traffic requires expansion of the port facilities and services. In this regard, the ports authority has developed a 25-year master plan, which includes the construction of the 2 nd container terminal at the Mombasa port as well as the development of a second maritime port at Lamu. Road Transport : Accounts for more than 70 per cent of the total transit traffic flow within the Northern Corridor. The entire Northern Corridor road network covers approximately 7000 km across Kenya , Uganda , Rwanda , Burundi , and the DR Congo. About two thirds of the road network is paved, although the condition is generally poor due to inadequate resources for rehabilitation and maintenance. Overloaded freight vehicles and poor enforcement of axle load regulations further deteriorate the road network and reduce road life spans. Member states are being encouraged to promote the improvement, upgrading and expansion of the road network, to adopt common standards for road design, construction and maintenance, and a uniform road classification system. This calls for a harmonized road financing policy and management structures, as well as enforcement of common axle load limits and vehicle weights and dimensions. Railways : Less than 20 per cent of the cargo transported along the Northern Corridor is by rail transport. The rail network essentially comprises a single line, overland rail track from Mombasa through Nairobi , Nakuru, Kisumu/Eldoret, Jinja, and Kampala and onto Kasese in western Uganda . Investment in rail infrastructure and equipment has been inadequate for more than a decade. The problems are further compounded by poor train operations and limited capacity or facilities for handling traffic, especially containers, at stations. As a result, the general condition of the railway network from Kenya to Uganda is old and in need of rehabilitation. Worse sections, such as the Kampala-Kasese line, have been closed. Inadequate investments have also diminished the efficiency and capacity of railway authorities to handle increased traffic volumes. The need for private sector investment in the railway network has become more apparent in order to improve services and to cope with increasing traffic volumes. The Kenya-Uganda railway has been jointly concessioned to the Rift Valley Railway Consortium effective from August 2006.
  • 31. 23 In addition there is need to develop the missing links within the Northern Corridor. A rail link from Kasese ( Uganda ) to Rwanda , the DR Congo and Burundi requires the participation of the private sector . At the same time there is need to develop links with Southern Sudan and Ethiopia. Pipeline : The existing pipeline from Mombasa to Eldoret and Kisumu has provided an important relatively cheaper and more efficient conveyance of fuel closer to the landlocked countries of the Northern Corridor. Therefore, most of their fuel imports are currently sourced from Eldoret and Kisumu. From the oil pipeline terminus, petroleum products are shipped by tanker truck. However, this transport mode is deemed unsatisfactory due to environmental impact of trucks accidents, and oil spills. Besides, tanker trucks impose heavy damage on the road infrastructure. A viable alternative is extending the oil pipeline from Kenya to Uganda and eventually to Rwanda and beyond. The Governments of Kenya and Uganda have signed a Memorandum of Understanding to promote the extension of the Kenya Oil pipeline from Eldoret to Kampala. In recognition of the importance of this means of transport, a new protocol has been developed for inclusion in the revised NCTA . The protocol will provide the framework for cooperation in the use and extension of the pipeline to the landlocked countries. Inland waterways: Although not fully exploited, lake transport plays an important role in the movement of transit cargo. The ferry links on Lake Victoria between Port Bell/Jinja and Kisumu ( Kenya ) and Mwanza ( Tanzania ) form an integral part of the rail network in the Northern Corridor. The only rail-lake route on the Corridor is the Mombasa - Kisumu - Kampala route (1242 km). This branch route leaves the main railway line at Nakuru and extends to Kisumu on Lake Victoria . The Kenya and Uganda railways authorities have four wagons operating between Kisumu, Jinja and Port Bell (near Kampala). There is adequate capacity, among the wagon ferries now operating on Lake Victoria , to carry more cargo than what is handled at the moment. Transit times on this alternative route to the all railway route to Uganda average 18-20 days. Also, Rwanda and Burundi are anxious to utilise a ferry link between Kisumu and Kemondo Bay , on the southwestern side of the lake within Tanzania . This would require improving docking facilities at Kemondo Bay and rehabilitation of road links from this lake port to Rwanda and Burundi. Communications: Development of communications infrastructure that supports the monitoring of traffic along the corridor is a key-contributing factor to the promotion of seamless transport of goods in the corridor. Radio communication systems for dissemination of traffic and weather related information along the corridor is important for all transport sub-sectors. IV. Enhanced knowledge management and performance monitoring : The strategic objective aims at strengthening the capacity of TTCA to analyze trends in the environment, learn from similar organizations, monitor its own performance, devise responsive strategies and identify best practices. This implies making knowledge management and performance monitoring an integral part of the strategy of TTCA. While Information and Communication Technologies [ICTs] is an important tool in knowledge management, the two are not the same. Knowledge management is a conscious effort by an organization to improve itself by generating internal performance information, and accessing and processing external information in order to achieve a competitive advantage
  • 32. 24 The strategic objective on enhanced knowledge management and performance monitoring facilitates the identification of internal crosscutting themes such as capacity building and information management, as well as opportunities for creating linkages and strategic partnerships with others. 2.3. CENTRAL CORRIDOR: Institutional arrangement modeled along the lines of the NC- TTCA. The Central Corridor comprises the Port of Dar-Es-Salaam, the Dar-Es-Salaam-Kigoma 1,254 km long railway which interfaces with water transport on Lake Tanganyika to Bujumbura and DRC as well as a road route linking Dar-Es-Salaam through Dodoma, Singida, Nzega and Lusahunga to Rwanda and Burundi. 2.3.1. Institutional Arrangements for the Corridor Until 2006 trade facilitation along the Central Corridor was handled through bilateral agreements mainly between Tanzania and landlocked countries. In 2006 Tanzania, Uganda, Burundi , Rwanda and DRC signed a multilateral agreement to form The Central Corridor Transit Transport Facilitation Agency (CCTTFA) with the following objectives: 1) Ensure that the Corridor is efficient and cost-effective; 2) Market the corridor with a view to increase its utilization; 3) Support infrastructure planning and operations on the corridor through proactive collection , processing and dissemination of traffic data, analysis of competitive corridors and business information; 4) Promote sustainable maintenance of infrastructure; 5) Encourage the implementation of improved customs transit procedures and the implementation of joint customs controls and juxtaposed customs offices at land borders and seaports; 6) Cooperate, where appropriate, with regional bodies with similar objectives. Organs of the CCTFA The governing organs are an interstate council of ministers, an executive board, and a stakeholders consultative committee, supported by a permanent secretariat. The structure is modeled along the lines of Northern Corridor Transit Transport Coordination Authority (NCTTCA) based in Mombasa. The Interstate Council of Ministers, a multilateral organ responsible for coordinating policy issues of the CCTTFA. It gives the corridor its political drive and orientations, facilitates and effects inter- State harmonization of policy, legal and regulatory aspects. The Executive Board comprises the permanent secretaries of the ministries of transport responsible for transport in each of the corridor countries and one representative from the private sector from each country. The private sector representatives are elected by the industry, the transport operators and Chambers of Commerce. The Board formulates the general principles and policies .It also performs, among others, the corporate governance role and appoints the senior technical staff of the CCTFA. The Stakeholders Consultative Committee consists of all transport actors from the corridor countries. The key stakeholders are : the Government departments dealing with transport matters, Customs, port authorities, port operators, terminal operators, shippers/manufacturers associations, shipping agencies associations, railway operators, railway holding companies, freight forwarding
  • 33. 25 companies, road transport operators, marine (lake) transport operators, whether public or private participate as members of the committee. The stakeholders Consultative Committee is responsible for: Developing and implementing strategies designed to provide seamless transportation along the corridor; Developing performance targets of the corridor and monitoring its utilization and performance; Developing and implementing strategies to market the corridor; Undertaking research and recommending the appointment of senior staff by the Executive Board; Establishing a Stakeholders Representative Group to oversee its affairs between meetings; and Appointing technical committees or working groups. The Stakeholders Representative Group is a select group consisting of fifteen stakeholders nominated by the Consultative Committee, with three from the Committee members from each corridor state. It is required that the private sector and all modes of transport and the interests of all corridor states are adequately represented. The Group establishes Technical Working Groups to deal with specific matters and to make recommendations as and when necessary. The work of CCTFA is supported by a Secretariat headed by an Executive Secretary. The Secretariat is based in Dar-Es-Salaam. Its key functions are to coordinate implementation of decisions and resolutions and to provide the CCTTFA`s governing bodies and working groups with technical advice. Among the technical staff of Secretariat is a Customs expert, a civil engineer, a business officer and an accountant. 2.3.2. Funding Mechanism The start-up costs of the CCTTFA Secretariat were provided by the African development Bank. The AfDB has funded the Secretariat activities for three years since 2007. The agreed future funding mechanism is based on each country contributing equally using an agreed method and procedures for joint funding. It is also expected that development partners will continue to support. The financial model is such that the costs of attending the meetings shall be borne individually by corridor members. 2.4. DAR ES SALAAM CORRIDOR : An important transport corridor linking southern and eastern Africa identified as SDI but not developed as an SDI. The Dar Es Salaam Corridor comprises (1) the port of Dar Es Salaam; (2) the TAZARA rail line from the port to Kapiri Mposhi in Zambia where it jons Zambian Railways south to Lusaka and northwest to the Copper Belt and to the DRC where it connects to the Congolese Railway, SNCC; (3) The TANZAM road that follows much the same route as the TAZARA rail, and the road that runs from Mbeya into Malawi at Songwe, along the lakeshore from Karonga to Chiweta and inland to Lilongwe; (4) the TAZAMA oil pipeline, which runs from the port of Dar Es Salaam to the Indeni Refenery at Ndola, Zambia; and (5) the road from Kasama to the port of Mpulungu on lake Tanganyika, providing for the transport of goods from Zambia and further north to Burundi , Rwanda and eastern part of the DRC. It is supported by the border posts at Kasumulu/Songwe, Tunduma/Nakonde, and Kasumbelesa/DRC; the Malawi Cargo centres which operates dry port facilities at DES port and Mbeya ; Zamcargo for consolidating imports and exports at DES port; and Malawi Lake Services.
  • 34. 26 Source: SA Global C. HUB May 2003 - BG / EM Lake Tanganyika Lake Malawi Mozambique Tanzania Malawi Zambia Mozambique Democrati c Republic of CongoLubumbashi Kasumbales aKitwe Saka nia Ndola Kapiri Mposhi Kabwe Lusaka Mpika Songwe Kasumul u Tundum aNakonde Mbey a Makambako Iring a Kidatu Dodom a Morogoro Chalinze Dar es Salaam Mtwara Kasama Mpulungu Port Kalemi e Mzuz u Lilongwe Chipata Chipoka LEGEND - MAP Not to Scale Major Surfaced Roads Railway Lines, 1067mm gauge Railway Lines 1000mm gauge International Borders Border Posts - Customs Major Centres NORTH Road Weighbridges Kafue Chirundu Zimbabwe Cell Phone Reception (gmt +3) (gmt + 2) (gmt + 2) (gmt + 2) (gmt + 2) Dar Es Salaam Transport Corridor and catchment area
  • 35. 27 2.4.2. Key Goals and Objectives Following the imposition of international sanctions against Rhodesia in1965, Zambia had no other choice than to re-direct its strategic imports and exports to the Benguela railway, but with the conflict in Angola at that time, it was necessary to look for an alternative and more reliable route, particularly for the export of strategic minerals and for import of food and fuel. This resulted in the improvement of the TANZAM road linking Zambia to the port of DES, the development of the TAZAMA oil pipeline, and the development of TAZARA railway. Malawi , also as landlocked , was facing same problems with the closure of its traditional trade route through Mozambique due civil war. It turned to the TANZAM/TAZAMA integrated infrastructure to provide for its exports and imports (fuel). The initial objective for the development of TAZARA/TANZAM/TAZAMA infrastructure projects was to provide a long term and sustainable set of infrastructure links to DES port for the strategic imports and exports of landlocked countries whose traditional routes had been closed or affected by the civil wars in Zimbabwe, Mozambique and Angola. The main costumers were the copper and other mines in Zambia and DRC. 2.2.4. Institutional structures The transport Coordinating Committee (TCC) The TCC was formed in 1982, mainly to deal with the export and import requirements of the Zambian mining industry, and subsequently expanded its membership to meet the changing transport needs of Malawi, Tanzania, Zambia and later DRC. TCC brought together industrial users, transport service providers, government agencies involved in transport matters to deal with mainly critical issues centered around port and TAZARA performance. The system was doing well by identifying problems and everyone was fully aware of what needed to be addressed, but three key problems remained TCC challenges: There was no full Secretariat to follow-up between meetings; The TCC identified problems but had no sufficient power to bring neither its members nor the governments involved to implement proposed solutions The TCC needed the capacity and data to more effectively market the corridor. To correct these deficiencies, TCC decided to create a full Dar Es Salaam Corridor Committee (DCC) with new corridor institution and its associated functions, operations and constitution. Therefore the DCC is an example of a CMC in the early stages of development, though drawing on the experiences of an earlier model. The Dar Es Salaam Corridor Committee (DCC) The institutional goals for the DCC were: To expand the TCC membership to make it full-fledged public-private partnership; To support it by a full Secretariat of five persons; To emphasize the operational and marketing aspects of the corridor; and To support the Corridor Committee with national organizations in each country to effect national policies that support corridor efficiency, promote corridor use and encourage spatial development along the corridor. Objectives of the Committee as defined in the Constitution
  • 36. 28 Most of the objectives were specifically to make the Dar Es Salaam Corridor the most efficient, reliable and cost effective regional transport corridor. Related transport objectives focused on: The upgrading and sustained maintenance of transport infrastructure; The implementation of SADC railway and road traffic standards and implementation of national legal and regulatory harmonization; The implementation of improved customs transit procedures and the implementation of juxtaposed OSBP customs offices at land borders and sea ports; A reduction in cost associated with moving freight along the corridor; Support to Members`operational performance and coordination; Establishment of working relationships with other SADC corridors and institutions. The full committee meets annually to decide the annual agenda and operational policy. The Dar Es Salaam Corridor Management Committee ( DCMC) provides overall management, strategy development and implementation oversight while a full time Secretariat based in Dar Es salaam I responsible for the day-to-day implementation of the annual work plan and budget, communication , corridor performance monitoring and corridor marketing. National Corridor Committees: There are National Corridor Committees in each member State to ensure effective national support to corridor activities. Membership is drawn from the country`s representatives on Corridor Coordinating Committee. The National Corridor Committee comprises a chairperson and a vice- chairperson, one from a government organization and the other from the private sector. In the case of Malawi, the Department of transport and the Chamber of Commerce are the two institutions providing this leadership. In Zambia, the ministry of Communications and Transport is supposed to provide leadership whereas in Tanzania this role is played by the Department of Transport and the TPA. The Secretariat: The affairs of the DCC are coordinated by a secretariat based in Dar Es Salaam. Such Secretariat is still to be formally established. In the interim, the TPA provides part-time secretariat services. It is a general perception that the absence of a full-time secretariat remains a constraint to the implementation of the committee`s activities. 2.2.4. Funding Mechanism So far, corridor activities have been funded by the USAID Southern Africa Trade Hub. The Corridor Committee is still exploring the possible use of a tonnage levy with some core functions and activities to be funded from member contributions as follow: o Voluntary member contributions ( 2009) o Obligatory member contributions (2010) o User pay fees assigned to ach origin/destination of corridor usage (2010).
  • 37. 29 2.2.5. Infrastructure of the Corridor 2.2.5.1. Dar Es Salaam Port The Dar Es Salaam port is Tanzania`s principal port catering for 90% of Tanzania`s imports and exports and serving as a critical link for the adjacent landlocked countries of Malawi, Zambia, DRC, Burundi, Rwanda and Uganda. The port of Dar Es Salaam complemented by Tanga and Mtwara ports serve 4 main corridors towards eastern, central and southern Africa as illustrated in the map below:
  • 38. 30 1 3 4 2 NB: 1- Mtwara corridor, 2- DSM TAZARA corridor, 3- DSM Central corridor, 4- Tanga corridor D R CONGO 1 3 4 2 NB:1- Mtwara corridor, 2- DSM TAZARA corridor, 3- DSM Central corridor, 4- Tanga corridor Source: TPA
  • 39. 31 The port has a total quay length of 2000 meters with 11 deep water berths, a container Terminal, a general cargo Terminal, a grain Terminal a passenger Terminal, a crude oil pumping facility, a refined oil facility and cargo centres operated by Malawi and Zambia. The port is connected to the main road system and both the TAZARA railway and the Tanzania Railways Corporation lines have direct connections to the port. The port is managed by the Tanzania Ports Authority (TPA). The intrinsic rated capacity of the port is 10 million tons per annum ( 1 million tons containerized cargo, 3 million tons dry cargo and 6 million tons bulk liquid). The current throughput is 7.6 million tons. TPA manages also other sea ports of Tanga and Mtwaro which can handle respectively 500,000 and 400,000 tons annually and some eight inland ports, that are: Mwanza, Kemondo Bay, Bukoba, Musoma on Lake Victoria, Kigoma , Kasanga on Lake Tanganyika and Itungi and Mbamba Bay on Lake Nyasa. These ports have rated throughput of 1 million tons per annum. In 2000, TPA made a series of reforms to enable the port play more active hub port role for the region. Those included : widening the entrance channel, installing lights and navigational aids, thereby making 24 hour operation possible and mostly the concessioning of Container Terminal with a variety of operational improvements. 2.4.4.2 TAZARA railway The 1860 km railway line from Dar Es Salaam to Kapiri Mposhi in Zambia is owned by the Governments of Tanzania (50%) and Zambia (50%) and is operated by the Tanzania Zambia Railway authority. There is a road to rail transshipment facility at Kapiri Mposhi, and a rail to rail transshipment facility at Kidatu, the latter allowing TAZARA line to link to Tanzania Railways system. The TAZARA rail system has a design capacity of 5 million tons per annum, but has never been equipped to carry more than 2 millions per annum. Efficiency in the rail system has been over the last decade inconsistent with transit times from Zambia/DRC to DES port reaching as much as 40 days compared to Current performance of 8 days only. However, the locomotive, rolling stock and financial shortfall remains the largest impediment to using Dar Corridor rail system. Figures demonstrate the diversion of rail traffic to road due to the improved road infrastructure and reduced availability of rolling stock particularly the locomotives on the railway. 2.4.4.3 TANZAM Road The TANZAM road links Tanzania and Zambia and runs from Dar Es Salaam to Kapiri MPoshi. The Tanzanian side of the road was surfaced in the mid 1950s, and on the Zambian side in the mid- 19600s. The road is maintained by respective governments through budgetary provision. There are permanent weighbridges in operation along the road.
  • 40. 32 2.4.4.4. TAZAMA Oil pipeline The 1710 km TAZAMA oil pipeline was commissioned and built in 1968 to able the flow of crude oil to Indeni fuel refinery at Ndola and to carry refined products. TAZAMA is jointly owned by the governments of Tanzania (33.3%) and Zambia (66.7%). Maintenance of the pipeline is the responsibility of the two governments. The offshore Single Point Mooring facility for offloading crude oil is owned and maintained by TPA. 2.4.4.5. Some key programs and projects of the DCC. The main programs being performed by the DCC consist in: Monitoring the Corridor performance; Advocating for port improvement ( infrastructure and systems); Rationalization of rail operations; OSBP and Customs connectivity; Complimentary projects include: Self-regulation for transport operators; Accreditation for Customs clearing agents; Safety and HIV interventions 2.4.4.6. Performance indicators and challenges of the Corridor The main achievements of the DCC include: The reduction of port Dwell time from 25 to 13 days ( December 2009); The reduction of rail transit times to Zambia from 17 days to 5 days although still constrained; The reduction of transit check-points from 43 to 30 although still too many; RADDEX connectivity between TRA and MRA speeding up boarder processes times. However, the DCC still have to deal with following challenges: Team Building: there is a need for a coherent and comprehensive policy framework to address transport and trade regulation as well as a capacity building for National Committees to allow them effectively articulate and address trade facilitation needs. System for Performance Monitoring and a Mechanism for a sustainable funding. 2.5. MAPUTO CORRIDOR: A PPP Spatial Development Initiative governed by a Memorandum and Articles of Association. Maputo Corridor Overview
  • 41. 33 The Maputo Corridor runs through one of the most highly industrialized and productive regions of Southern Africa. Johannesburg and Pretoria form the western axis of the Corridor with their large concentrations of manufacturing, processing, mining and smelting industries. Then, moving eastwards to Mozambique, the corridor passes through vast industrial and primary production areas containing steel mills, petro-chemical plants, quarries, mines, smelters and plantations of forests, sugar cane, bananas and citrus. Just 92kms beyond the frontier are the Mozambican deep-water ports of Maputo and Matola, which have traditionally provided the nearest facilities for the importers and exporters of this region. South Africa and Mozambique have promoted the revival of the Maputo Corridor with bilateral policies and substantial public and private sector investments designed to stimulate sustainable growth and development in the region. The main arteries of the Corridor are the new N4 highway and the railway, both of which can support high volume, seamless, cross-border freight services. 2.5.1. Road Links The N4 highway is the first major infrastructure project completed since the implementation of the Maputo Corridor agreement. Stretching from Witbank in South Africa to Maputo in Mozambique, the N4 provides a world-class trunk route between the two countries. An important element of the port development programme is the construction of a new link road, which will deliver port traffic to and from the N4 by the most direct route, and significantly ease congestion in the downtown areas of Maputo. For importers and exporters alike the N4 is a fast, safe and efficient road to the international ports of Maputo and Matola. Trans African Concessions (TRAC), the concessionaire responsible for building, operating and maintaining the N4 highway until 2028, is committed to ensuring that, in addition to completing the primary phase of the project on time and budget, all the secondary and peripheral developments are implemented with equal success. The N4 offers round-the-clock response teams to deal with incidents, the latest technology, the safest road construction, tamper-proof SOS-telephones and a management policy that ensures continuous maintenance and upgrading. The Greater Witwatersrand cities of Johannesburg and Ekurhuleni are connected to the Maputo Corridor via the N12 highway, which connects to the N4 near Witbank.
  • 42. 34 The N4 also connects two border posts, i.e. • Skilpadshek / Lobatse Border Post between Botswana and South Africa • Komatipoort - Lebombo / Ressano Garcia Border Post between South Africa and Mozambique A total of six TRAC N4 Toll Road Plazas connect Pretoria to Maputo, ensuring a modern and well- maintained trunk route to the Ports of Maputo and Matola in Mozambique. Four are on the South African side, with two on the Mozambican side. • Diamond Hill Plaza between Pretoria and Witbank • Middelburg Plaza between Witbank and Middelburg • Machado Plaza between Machadodorp and Waterval-Boven • Nkomazi Plaza between Nelspruit and Malelane From the South Africa / Mozambican border, the N4 becomes the EN4 that connects directly to the Ports of Maputo and Matola, thereby easing traffic congestion in the downtown Maputo area through two Toll Plazas, i.e. • Moamba Plaza at Moamba • Maputo Plaza at Matola near Maputo Source: TRAC N4 2.5.2.RAIL lINKS