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Presented by
Bevuya Mdlankomo
Researcher - C-BRTA
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March 2013
OUTLINE OF THE PRESENTATION
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March 2013
INTRODUCTION
Challenges
facing cross
border
transport
Inadequate
infrastructure
Inefficient
Regulation
Inefficient
Corridor
Management
Systems
Key Outcomes:
• Delays, non-
compliance, low safety
levels, unreliability,
limited productivity,
sustainability and high
operating costs
• This paper focused on
Impact of Delays on
Cross Border
Movements: NSC, TKC,
Maputo Corridor
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March 2013
INTRODUCTION (contiu…)
WhytheC-BRTAhadtoconductthis
study?
In an ideal environment
corridors are
instruments for regional
economic growth, trade,
regional integration
However in SADC
corridors not effectively
performing due to many
challenges
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March 2013
FOCUS OF THE STUDY
North South
Corridor
7,500 KM
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March 2013
FOCUS OF THE STUDY (conti...)
TKC
Corridor
1900 KM
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March 2013
FOCUS OF THE STUDY (conti...)
Maputo
Corridor
523 KM
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March 2013
Data Collection and
Analyses
Interviews
& Focus
Group
Workshops
Literature
Review
Consultations
with regional
and domestic
stakeholders
Field
observation
s,
Measureme
nts of
delays
Question
naires
Design a cost
benefit
analyses
model
Benchmar
king
STUDY DESIGN
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March 2013
KEY RESEARCH QUESTIONS
Will a reduction of delays at fixed measuring points create additional capacity along
corridors and trade flows
What is the impact of delays on experienced on the three corridors
What is the extent of delays along the three prioritized corridors
What are the major causes of delays for cross border road transport in SADC
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March 2013
STUDY LIMITATIONS
There were time constraints in completing the study
Unavailability of reliable freight and transport data
beyond South African borders
Thus, all cost benefit calculations were limited to the
South African section of the North-South, Trans-
Kalahari and Maputo corridors
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March 2013
Average delay time at weighbridge- 15 Mins
Average delay time at toll gates- 5 Mins
Average delay time at Border Post- 60 Min
A 15 minutes time saving variable was then utilised at the Skilpadshek
border, based on field observations and simultaneously a relatively small
reduction in time delay of only 5 minutes per toll gate (5) and
weighbridge(4)
KEY STUDY FINDINGS
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March 2013
KEY STUDY FINDINGS
There would be a total reduction in delays of 60 minutes (1 hour) on the
South African portion of the TKC
This would result in an additional transport fleet capacity that can
complete an additional 0.76 trips per vehicle per annum
It was established that a potential increase in trade due to time
savings amounts to a staggering R992 million (in commodity value)
It must be acknowledged that only 16.6 percent of the travelling
distance is within South African jurisdiction
Therefore, if similar improvements are possible along the entire route, a
significant reduction in logistics costs can be expected
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March 2013
KEY STUDY FINDINGS
Average delay time at weighbridge -15 min
Average delay time at toll gates- 5 min
Average delay time at Border Post- 18 hours
A 90 minute time saving at Beitbridge border,. Furthermore, a relatively
small reduction in time delay of only 5 minutes per toll (N,6,S,5) gate and
weighbridge (N,5 S,4) was modelled.
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March 2013
KEY STUDY FINDINGS (conti…)
A reduction of 190 minutes ( emanating from border posts , toll gates
and weighbridge delays ) would result in additional transport fleet and
represents an increase of 0.31 additional trips per vehicles per annum
It was established that based on Scenario 1 a potential increase in
trade due to time savings amounts to a staggering R13 billion( in
commodity value)
It must be acknowledged that only 36 percent of the travelling distance
is within South African jurisdiction. Therefore, if similar improvements
are possible along the entire North-South Corridor, a significant
reduction in logistics costs can be expected
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March 2013
KEY STUDY FINDINGS
Average delay time at weighbridge -15 min
Average delay time at toll gates- 5 Mins
Average delay time at Lembobo Border Post – 120 min
A 15 minute time saving at lembobo border, Furthermore, a relatively
small reduction in time delay of only 5 minutes per toll(4) gate and
weighbridge(7) was modelled
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March 2013
KEY STUDY FINDINGS
A total reduction in delays of 70 minutes on the South African portion
of the Maputo Corridor will result in additional transport fleet capacity
and represents an increase of 5.41 additional trips per vehicle per
annum
The potential increase in trade due to a possible reduction in
border post, toll gate and weighbridge delays amounts to
staggering 100 billion.
From the Maputo corridor context ,the most beneficial impact will
be experienced within the macro economy of South Africa with less
benefit to the individual vehicle operator.
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March 2013
CONCLUSIONS
The SADC region faces challenges. The challenges include,
Operational costs, inadequate infrastructure, inefficient
regulatory and corridor management systems, accidents and
delays,
Challenges have an impact on the sustainability,
productivity, efficiency, quality, and cost of transport
services as well as the cost of products traded in the
region
Most of the challenges experienced in corridors culminate in
delays
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March 2013
CONCLUSIONS
It was also established that delays have a negative impact to
cross border road transport operators and the economy
It was established that the most significant results would be
achieved on the Maputo Corridor as the portion of the South
African contribution to the total corridor is 83%.
To achieve optimum results, interventions should as far as
possible be introduced over the entire corridor and not be
limited to the South African portion of the corridor
Implementation of a set of interventions on the three corridors
would yield significant costs savings
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March 2013
MAJOR RECOMMENDATIONS
Overcoming corridor delays should be priority number one
for the SADC region if effective and efficient cross border road
transport movement facilitation is to be achieved
Attainment of regional aspirations on trade, economic
development and regional integration needs a regional
approach
Complete Implementation of international agreements would
set a solid ground for member states to tackle fragmentation,
lack of harmonisation and regulatory differences.
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March 2013
MAJOR RECOMMENDATIONS
Harnessing political-will: This requires that member states
cooperate and collaborate towards realisation of the intervention
Capacitation of regulatory authorities: Regulatory authorities need
to be capacitated from a mandate view point in order to be able to
actively engage beyond their respective border posts
Accreditation systems for transport operators and traders: These
programmes entail accreditation of transport operators in the cross
border road transport sector and traders in the region based on
compliance to legislative and regulatory requirements
Click to edit Master title style
March 2013

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Impact of Delays on Cross Border Transport in SADC Corridors

  • 1.
  • 3. Click to edit Master title style March 2013 OUTLINE OF THE PRESENTATION
  • 4. Click to edit Master title style March 2013 INTRODUCTION Challenges facing cross border transport Inadequate infrastructure Inefficient Regulation Inefficient Corridor Management Systems Key Outcomes: • Delays, non- compliance, low safety levels, unreliability, limited productivity, sustainability and high operating costs • This paper focused on Impact of Delays on Cross Border Movements: NSC, TKC, Maputo Corridor
  • 5. Click to edit Master title style March 2013 INTRODUCTION (contiu…) WhytheC-BRTAhadtoconductthis study? In an ideal environment corridors are instruments for regional economic growth, trade, regional integration However in SADC corridors not effectively performing due to many challenges
  • 6. Click to edit Master title style March 2013 FOCUS OF THE STUDY North South Corridor 7,500 KM
  • 7. Click to edit Master title style March 2013 FOCUS OF THE STUDY (conti...) TKC Corridor 1900 KM
  • 8. Click to edit Master title style March 2013 FOCUS OF THE STUDY (conti...) Maputo Corridor 523 KM
  • 9. Click to edit Master title style March 2013 Data Collection and Analyses Interviews & Focus Group Workshops Literature Review Consultations with regional and domestic stakeholders Field observation s, Measureme nts of delays Question naires Design a cost benefit analyses model Benchmar king STUDY DESIGN
  • 10. Click to edit Master title style March 2013 KEY RESEARCH QUESTIONS Will a reduction of delays at fixed measuring points create additional capacity along corridors and trade flows What is the impact of delays on experienced on the three corridors What is the extent of delays along the three prioritized corridors What are the major causes of delays for cross border road transport in SADC
  • 11. Click to edit Master title style March 2013 STUDY LIMITATIONS There were time constraints in completing the study Unavailability of reliable freight and transport data beyond South African borders Thus, all cost benefit calculations were limited to the South African section of the North-South, Trans- Kalahari and Maputo corridors
  • 12. Click to edit Master title style March 2013 Average delay time at weighbridge- 15 Mins Average delay time at toll gates- 5 Mins Average delay time at Border Post- 60 Min A 15 minutes time saving variable was then utilised at the Skilpadshek border, based on field observations and simultaneously a relatively small reduction in time delay of only 5 minutes per toll gate (5) and weighbridge(4) KEY STUDY FINDINGS
  • 13. Click to edit Master title style March 2013 KEY STUDY FINDINGS There would be a total reduction in delays of 60 minutes (1 hour) on the South African portion of the TKC This would result in an additional transport fleet capacity that can complete an additional 0.76 trips per vehicle per annum It was established that a potential increase in trade due to time savings amounts to a staggering R992 million (in commodity value) It must be acknowledged that only 16.6 percent of the travelling distance is within South African jurisdiction Therefore, if similar improvements are possible along the entire route, a significant reduction in logistics costs can be expected
  • 14. Click to edit Master title style March 2013 KEY STUDY FINDINGS Average delay time at weighbridge -15 min Average delay time at toll gates- 5 min Average delay time at Border Post- 18 hours A 90 minute time saving at Beitbridge border,. Furthermore, a relatively small reduction in time delay of only 5 minutes per toll (N,6,S,5) gate and weighbridge (N,5 S,4) was modelled.
  • 15. Click to edit Master title style March 2013 KEY STUDY FINDINGS (conti…) A reduction of 190 minutes ( emanating from border posts , toll gates and weighbridge delays ) would result in additional transport fleet and represents an increase of 0.31 additional trips per vehicles per annum It was established that based on Scenario 1 a potential increase in trade due to time savings amounts to a staggering R13 billion( in commodity value) It must be acknowledged that only 36 percent of the travelling distance is within South African jurisdiction. Therefore, if similar improvements are possible along the entire North-South Corridor, a significant reduction in logistics costs can be expected
  • 16. Click to edit Master title style March 2013 KEY STUDY FINDINGS Average delay time at weighbridge -15 min Average delay time at toll gates- 5 Mins Average delay time at Lembobo Border Post – 120 min A 15 minute time saving at lembobo border, Furthermore, a relatively small reduction in time delay of only 5 minutes per toll(4) gate and weighbridge(7) was modelled
  • 17. Click to edit Master title style March 2013 KEY STUDY FINDINGS A total reduction in delays of 70 minutes on the South African portion of the Maputo Corridor will result in additional transport fleet capacity and represents an increase of 5.41 additional trips per vehicle per annum The potential increase in trade due to a possible reduction in border post, toll gate and weighbridge delays amounts to staggering 100 billion. From the Maputo corridor context ,the most beneficial impact will be experienced within the macro economy of South Africa with less benefit to the individual vehicle operator.
  • 18. Click to edit Master title style March 2013 CONCLUSIONS The SADC region faces challenges. The challenges include, Operational costs, inadequate infrastructure, inefficient regulatory and corridor management systems, accidents and delays, Challenges have an impact on the sustainability, productivity, efficiency, quality, and cost of transport services as well as the cost of products traded in the region Most of the challenges experienced in corridors culminate in delays
  • 19. Click to edit Master title style March 2013 CONCLUSIONS It was also established that delays have a negative impact to cross border road transport operators and the economy It was established that the most significant results would be achieved on the Maputo Corridor as the portion of the South African contribution to the total corridor is 83%. To achieve optimum results, interventions should as far as possible be introduced over the entire corridor and not be limited to the South African portion of the corridor Implementation of a set of interventions on the three corridors would yield significant costs savings
  • 20. Click to edit Master title style March 2013 MAJOR RECOMMENDATIONS Overcoming corridor delays should be priority number one for the SADC region if effective and efficient cross border road transport movement facilitation is to be achieved Attainment of regional aspirations on trade, economic development and regional integration needs a regional approach Complete Implementation of international agreements would set a solid ground for member states to tackle fragmentation, lack of harmonisation and regulatory differences.
  • 21. Click to edit Master title style March 2013 MAJOR RECOMMENDATIONS Harnessing political-will: This requires that member states cooperate and collaborate towards realisation of the intervention Capacitation of regulatory authorities: Regulatory authorities need to be capacitated from a mandate view point in order to be able to actively engage beyond their respective border posts Accreditation systems for transport operators and traders: These programmes entail accreditation of transport operators in the cross border road transport sector and traders in the region based on compliance to legislative and regulatory requirements
  • 22. Click to edit Master title style March 2013