Trans horn engineering presentation_ jib_jub corridr 7 may 2013

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LAUNCHING JUBA-JIBOUTI GROWTH AND DEVELOPMENT CORRIDOR Ali Elmi, Dj Alemayehu Senior Associate
Trans Horn Engineering

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Trans horn engineering presentation_ jib_jub corridr 7 may 2013

  1. 1. LAUNCHING JUBA-JIBOUTI GROWTHAND DEVELOPMENT CORRIDOR Ali Elmi, Dj Alemayehu Senior Associate Trans Horn Engineering
  2. 2. Context  The imminent secession of South Sudan from the current Sudanese state offers important opportunity for Djibouti in the context of regional integration in the Horn of Africa by advocating for strong regional economic ties.  Djibouti has the opportunity to establish itself as a key economic, transport and infrastructure hub in the region.  South Sudan is completely land-locked, and dependent on the distant ports of Port Sudan and Mombasa, both of which are problematic.
  3. 3.  To realize this opportunity, Djibouti needs to move promptly and decisively to:  to champion and promote the Growth and Development Corridor in the Horn of Africa to link with Southern Sudan
  4. 4.  Djibouti can play an effective role in promoting peace and development in the region by steering both the Government of South Sudan (GoSS) and the Government of North Sudan (GoNS) towards a healthy cooperation  Djibouti’s role in Somalia has been commendable
  5. 5. Background  The political climate in the region has made moves toward regional economic integration more feasible.  Countries in the region have improved their relations with each other.  There is considerable potential for economic and infrastructural integration to contribute to increased interdependency, among the region’s countries creating jobs and extending business opportunities.
  6. 6. Djibouti – Juba corridor  To what extent does Djibouti facilitate corridor development and management?  Have corridor management institutions been established?  Is there a corridor action plan?
  7. 7. Role of Ports in Regional Trade  About 80 percent of international trade in volume terms is currently carried by sea  Ports are the nodes through which both regional and international trade passes through  The efficiency of ports can greatly influence the level of trade and hence the development of their hinterlands  Inefficient ports will impose high costs to trade and hence reduce the volume of exports and imports for their hinterlands
  8. 8. Context  The lack of interconnected cross-border infrastructure has significant economic costs.  Lack of connectivity often makes trade and commerce uncompetitive due to high transport and service costs.
  9. 9.  It may also lead to  unreliable supply chains,  delayed deliveries, and  a host of other constraints that contribute to low productivity  high transaction costs and diminished competitiveness.  The potentially rewarding development of natural resources is often unprofitable due to lack of suitable infrastructural and trade links.
  10. 10.  Certainly, its economic fragmentation is not the only cause of the region’s poverty, but it is part of the cause, and one that needs to be addressed.  Limited access to transport and communications, to energy and water, constrains economic growth. These are all key constraints seriously impacting in varying degree on the economy of each of the IGAD states.
  11. 11.  However, there is also considerable potential to address these constraints in the context of infrastructure-led regional economic integration.  This would be of particular importance to Ethiopia as a land-locked country, as well as to Ethiopia’s western and eastern neighbours, especially South Sudan and Djibouti, who would directly benefit from it. It would also be consonant with the AU-NEPAD Action Plan on Infrastructure.
  12. 12. COMESA October 2009  The Ministers of Infrastructure in the COMESA region underscored the importance of enhanced regional connectivity through the development of adequate and efficient physical infrastructure in Transport, ICT and Energy;  Agreed on implementation of infrastructure projects and related transit transport facilitation on the basis of clustering of countries along the regional corridors;  Member States in the cluster agree on the
  13. 13. Why now?  There is growing awareness, within Africa and among Africa’s development partners, of the importance of regional integration to providing Africa’s relatively small and isolated economies with a platform for enhanced growth and stability.
  14. 14. Donors Initiatives:  ADB’s agenda for Eastern Africa regional integration is to create a well connected, economically prosperous and peaceful Eastern Africa  Soliciting projects ideas and committed to finance  Over the decade (2000-2009), economic growth has been strong in the region, with regional real GDP growth averaging 6.6% annually
  15. 15. EU Horn of Africa Initiative  2006: EC adopted an integrated regional response strategy for ‘EU political partnership forpeace, security and development in the Horn of Africa’;  The aim: To have a coherent and overall EU approach to the Horn of Africa and engage the Horn countries in cooperation that facilitates peace and security;  April 2007: Implementation of the strategy launched jointly by the seven governments in IGAD region and EC Commissioner Louis Michel; followed up by assessment missions (2007 and 2009) Source: EU Document
  16. 16. Ports in Horn of Africa  The region is bestowed with eight major ports locate in four countries namely:  Po rt Sudan in Sudan;  MassawaandAssabinEritrea;  Po rt Djibo uti in Djibouti,  Berbera, Bossaso,  Mo g adishu and Kism ayu in Somalia.
  17. 17.  All theports in the region are located on the Red Sea except for the two ports of Mogadishu and Kismayu in Somalia which are on the Indian Ocean.  The Port of Mombasa currently serves Southern Sudan
  18. 18. Ports and Shipping in the Horn  Transpo rt infrastructure is almost exclusively dominated by the activities at the Port of Djibouti, which has 16 berths and is geared towards international traffic, particularly to Ethiopia.  The port has benefited from a modernization program of its infrastructure and equipment, which has placed it at a distinct advantage over other ports in the subregion.  The country's road network covers a total of 2,905 kms.
  19. 19. Trans Horn Engineering  The Vision  To undertake in view of enhancing the valuable contributions of the newly emerging trade opportunities across the Horn of Africa by establishing integrated logistics support facilities in playing catalytic role in regional integration.
  20. 20. Advocacy  Promotion of Corridor Management Approach  Cooperation in capacity building  Exchange of information to combat undesirable practices in order to enhance safety and security of life, vessels and cargo  Eestablish links at the highest level with the Government of South Sudan (GoSS) and position itself to take on the role of South Sudan’s outlet to the sea in collaboration with the Government of Ethiopia,
  21. 21. Way Forward  Coordination with IGAD in order to harmonise regional transport policies and regulatory environment  Coordination with port users including transporters and forwarders  Participation in setting standards and in capacity building in the transport industry  Safeguard the regional interests in by providing world class services  Establishment of Community Information Systems to network and share information
  22. 22. Horn of Africa Roads
  23. 23. Horn of Africa Railway Network
  24. 24. Horn of Africa Energy Links [Power Pool]

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