coridor study done by consultant
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Coridor study done by consultantTRANSCRIPT
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: [email protected]
and
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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 ARRANGEM ENTS.................... 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 DEVELOPMEN T 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
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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
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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
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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.
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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.
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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.
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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.
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“ 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
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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.
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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;
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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
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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
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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
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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.
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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 witho ut 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/Rail IC
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 STRATEG IES
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
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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.
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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 mo deled 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
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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 transpor t 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.
26Source: SA Global C. HUB
May 2003 - BG / EM
Lake Tanganyika
Lake Malawi
Mozambique
Tanzania
Malawi
Zambia
Mozambique
Democratic Republic of Congo Lubumbashi
Kasumbalesa Kitwe
Sakania
Ndola
Kapiri Mposhi
Kabwe
Lusaka
Mpika
Songwe
Kasumulu
Tunduma Nakonde
Mbeya Makambako
Iringa
Kidatu
Dodoma
Morogoro
Chalinze Dar es Salaam
Mtwara
Kasama
Mpulungu Port
Kalemie
Mzuzu
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
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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
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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).
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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:
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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
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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.
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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
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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.
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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
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The MDC offers the shortest rail links between South Africa's industrial and commercial heartland, Gauteng, as well as the Nortwest, Limpopo and Mpumalanga provinces of South Africa and Gaberone in Botswana and a deep water port. Comparative rail distances are demonstrated in the following chart.
Comparative Rail Distances in km From Maputo Durban R'Bay
Gauteng SA Johannesburg (City Deep) 581 720 652 Pretoria (Rosslyn) 574 786 712
Limpopo SA Phalaborwa 374 1,083 895 Polokwane 550 935 802 Tzaneen 452 1,160 972
Mpumalanga SA Lydenburg 443 856 668 Nelspruit 219 830 642 Witbank 469 801 627
Northwest SA Rustenburg 661 874 794
Botswana Gaberone 1,027 1,170 1,104
Swaziland Matsapha, Manzini 228 544 371
Zimbabwe Bulawayo 1,083 1,880 1,800 Gweru 967 1,764 1,684 Source: FTW 02 March 2007 and Spoornet Rail Distance Calculator
Rail links along the Corridor are set to get a major boost in redevelopment following the revival of development co-operation between the South African rail operator - Spoornet, and the Mozambican rail operator - CFM on February 15, 2007. At present the bulk of freight being transported along the Corridor consists mainly of South African coal exports en route to the Matola Coal Terminal, however, with congestion at South Africa's busiest port, Durban reaching critical levels, importers and exporters are increasingly looking towards Maputo as a supplementary port.
2.4.3.MAPUTO CORRIDOR BOARDER POSTS
Lebombo / Resanno Garcia Border Post The Ressano Garcia Border Post on the Mozambican side and the Lebombo Border Post on the South African side represents the link between two of the three Maputo Corridor countries that receives the largest amount of freight traffic along the Corridor.
This link has been identified as a major obstacle to the free movement of goods. As a border post, the objectives of the respective Governments is focused on security, which requires hindrances to be effective.
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Partially through the consistent efforts of MCLI in a Private-Public Partnership, they are slowly beginning to change that perspective to recognize its importance in stimulating mutual economic growth through trade and tourism. This consultation forum falls under the Mpumalanga Freight Logistics Strategy (MFLF) Land Transport Focus Workgroup
Three of the biggest improvements in the functional operation of border posts between Mozambique and South Africa to date are:
• The bilateral removal of Visa requirements between Mozambique and South Africa for one another's nationals.
• The extension of Operating Hours at the border to 12 hours per day for people and 16 hours per day for goods, with extended hours over traditionally busy periods
• The agreement in principle to establish a One Stop Border Post (1SBP).
One Stop Border Post A major success was guarenteed for the future of the Corridor when President Chisano of Mozambique and President Mbeki of South Africa agreed to create the first One Stop Border Post between the two countries at Lebombo / Resanno Garcia.
Development of such a 1SBP is receiving attention through a complex bilateral process, as many goverment departments, each with their own mandates and obligations are involved, inter alia, Customs (SARS / Alfandegas), Home Affairs, the Police, Defence Force & Intelligence Agencies, Agriculture, Trade and Transport.
� Mozambique / Swaziland Border
Lomahasha / Namaacha Border Post
The border post closest to Maputo between Swaziland and Mozambique is situated in the north-eastern corner of Swaziland. On the Swazi side it is known as Lomahasha and on the Mozambican side as Namaacha.
The road between Swaziland and Maputo via Lomahasha / Namaacha is not part of the N4 / EN4 TRAC toll road, but is generally considered to be in a good condition. It provides access to the second biggest port for Swaziland's importers and exporters and an alternative to Richard's Bay. Port Maputo is also closer to Swaziland's urban areas than Richard's Bay in South Africa.
� South Africa / Swaziland Border
South Africa / Swaziland Borders along the Corridor
Swaziland links to the TRAC N4 toll road in South Africa via the Jeppe's Reef (SA) / Matsomo (SZ) border post approx. 60 km south of Malelane as well as at the Mananga Border Post approx. 70 km south of Komatipoort.
2.5.4. PORT MAPUTO
Commencing on 14 April 2003, the Mozambican deepwater ports of Maputo and Matola were conceded to the Maputo Port Development Company (MPDC) for a period of 15 years, with a 10 year extension option. Under the agreement, MPDC was granted the rights to finance, rehabilitate, operate, manage, maintain, develop and optimise the port concession area. MPDC is a consortium led by Mersey Docks of the United Kingdom and includes Skanska of Sweden and Liscont of
37
Portugal. The international consortium holds a fifty-one percent equity stake in the MPDC with the remainder of the balance held by CFM, the Mozambican Ports and Rail Company and the Government of Mozambique. it is intended that sixteen percent of the equity share held by the government will be made available to Mozambican investors in the future. In April 2005 Grindrod of South Africa bought a twelve and a half percent stake in the Port of Maputo.
MPDC Responsibilities
MPDC is vested with the rights and responsibilities to
• Finance • Rehabilitate • Operate • Manage • Maintain • Develop and • Optimise
the Port Concession Area, which includes the Ports of Maputo and Matola.
The company is vested with the powers of port authority and will be responsible for marine operations, towage, stevedoring, terminal and warehousing operations as well as port planning and development. The status of the existing independent cargo terminals at Maputo and Matola will continue unchanged within the new port authority.
MPDC’s development project commenced with the implementation of a three year USD 70 million rehabilitation programme designed to restore the port’s basic land and marine infrastructure. By the end of 2006 an approximate USD 44 mil. of the earmarked funds had already been allocated and spent on the rehabilitation of the port.
The long-term objective is to re-establish the ports of Maputo and Matola as key economic growth centres in Mozambique and as competitive transit ports for the vibrant import/export markets of South Africa, and the neighboring countries of Swaziland, Zimbabwe, Botswana and Zambia.
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2.5.6. Port facilities
a. Maputo Cargo Terminal
A total area of approximately 129ha with 3,000m of continuous wharves ranging in depth from 8-12m including the Citrus, Sugar and Container Terminals.
TERMINAL THROUGHPUT (ton p/a)
LENGTH DEPTH
Note: New cargo terminals will be developed in the future and the table shows only the existing terminals. Break-Bulk, Unitised, General and Project Cargo is currently handled over the berths marked Break-Bulk, Heavy Lift, Cruise and RoRo.
Container Terminal 100.000 TEU 300m 11m
Citrus Terminal 185.000 380m 11m
Bulk Sugar Terminal 550.000 170m 10,5m
Molasses Terminal 60.000 179m 10,5m
Coastal Terminal 200.000 300m 8m
Bagged Sugar Terminal 65.000 200m 10,5m
b. Matola Bulk Terminal
TERMINAL THROUGHPUT (ton
p/a) LENGTH DEPTH
Grain Terminal 400.000 210m 9,5m
Aluminium Terminal 1.000.000 210m 12,6m
Petroleum Terminal 350.000 230m 10,5m
Coal Terminal 2.500.000 205m 10,5m
* All depths are below chart zero and the actual tide is to be added (max. 3,9 m and minimum 0,2
m). The tide table is published by INAHINA (Instituto Nacional de Hidrografia e Navegação).
Port Security: Port Maputo is ISPS compliant.
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2.5.7. Port Services The port services consists of a variety of operators, each specializing in a certain product and adapted to the containerized and break-bulk cargo of Port Maputo and the bulk cargo of Matola.
a) MIPS Container Terminal In order to re-establish the traffic, and to restore the confidence of importers and exporters, Mozambique Ports and Railways Company - CFM, commenced a privatization programme of the port of Maputo. In 1994 it called for international tenders for the lease and management of the Maputo Container Terminal. Of the respondents, the proposals from P&O Ports and Rennies Group were short- listed and they were invited to form a joint venture with CFM. In August 1995 a formal agreement was signed by the three parties to form MIPS (Mozambique International Port Services) - Serviço Internacional de Portos de Moçambique, SARL which was subsequently registered as a Mozambican Company in February 1996. MIPS / SARL is a founder member of MCLI.
� Citrus Terminal The Citrus Terminal is managed by the Mozambique Fresh Produce Terminal, a.k.a. Fresh Produce Terminal and Mozambique Produce Terminal. The terminal has four chambers with pre-cooling capacity for 3,200 pallets. MFPT is one of the nine founder members of MCLI.
� Bulk Sugar Terminal The Bulk Sugar Terminal handles raw bulk sugar and is operated by Sociedade Terminal de Açucar de Maputo Lda.
� Molasses Terminal Operated by Companhia Exportadora de Melaços Lda and is a dedicated berth to load bulk liquid molasses via a special dedicated pipeline connecting to storage tanks.
� Coastal Terminal The Coastal Terminal handles general cargo, including containers, vehicles and logs. It offers 5,000 sq. m. of warehouses and a total open area of 15,000 sq. m. There are also a carpenter, mechanical and container maintenance and repair shop. It is operated by Terminal de Cabotagem de Maputo SARL.
� Bagged Sugar Terminal
The Bagged Sugar Terminal is an exclusive terminal dedicated for bagged sugar for export. It is operated by ED+F Man Moçambique Lda.
b) Matola Port Bulk Terminals
� Grain Terminal Operated by Stema SARL, the Grain Terminal handles cereal and soya bean meal and has a storage capacity of 30,000 tons.
� Aluminium Terminal The Aluminium Terminal handles most of the Mozal Project's products and is operated by the same company and MCLI member, Mozal Aluminium Smelter SARL.
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� Petroleum Terminal
The Petroleum Terminal is operated by Caminhos de Ferro de Moçambique. These terminals are of direct significance to MCLI members BP Africa and Sasol.
� Coal Terminal The Matola Coal Terminals handles the bulk of South Africa's cargo exports via the port to date. It is operated by TCM - Terminal de Carvão da Matola Lda. who is one of MCLI's founder members.
2.5.7. INSTITUTIONAL ARRANGEMENTS OF MAPUTO CORRIDO R
The Maputo Corridor connects the Port of Maputo in Mozambique to Gauteng, the industrialized heartland of South Africa. It comprises a concessioned road, a railway line and since recently a pipeline. It has emerged as one of the most successful implementations of the Spatial Development Initiatives (SDI), concept developed in the mid 1990s by the South African Trade Department and the Development Bank of South Africa (DBSA). The Maputo Development Corridor (MDC) was launched as an SDI in 1996 and the Maputo Corridor Company (MCC) was established as the legal corridor management entity to engage the public and private sector players in South Africa, especially at provincial level. The aims and objectives of the Maputo Development Corridor when initially defined were:
� To rehabilitate , in partnership with the private sector , the primary infrastructure network along the corridor, including road and rail links between South Africa and Maputo, the boarder post between the two neighbors and Maputo port;
� To maximize investment in the corridor area using added opportunities that infrastructure rehabilitation would create;
� To maximize social development and employment opportunities , and increase participation of historically disadvantaged communities;
� To develop policies , strategies and frameworks to promote holistic, participatory and environmentally sustainable approaches to development.
However, the MCC was not functioning effectively in coordinating stakeholders and mainstream shippers. As a result , the corridor lacked a strategic planning focus and an action plan. In early 2004, the Maputo Corridor Logistics Initiative(MCLI) was launched as a public-private sector partnership to create greater awareness on and foster better utilization of the corridor. The MCLI is incorporated in South Africa as a non profit organization with members from both South Africa and Mozambique. The legal instrument governing MCLI is the Memorandum and Articles of Association, corresponding to a company without a share capital, further practical governance being driven by the Constitution of MCLI. The South Africa Department of Transport (DOT) has since become one of the key members working with MCLI to formally establish a public-private partnership corridor institutional framework at a trilateral level with Mozambique and Swaziland.
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Objectives of MCLI The MCLI seeks to become a logistic stakeholders`coordinator, contributing to the objectives of MDC. This is being achieved by working towards a logistics corridor based on a cost effective, continuous, reliable logistics route with positive returns for all stakeholders. It also aims to create a favorable climate for investment and new opportunities for communities along the Maputo Corridor. Its objectives are specifically to:
� Coordinate the views of the investors, service providers and users to promote development and change to make the Maputo Corridor the first choice for importers and exporters and
� Inform the market about the corridor and promote the strategic benefits and opportunities offered by the corridor.
The MCLI key areas of focus were identified as lack of sufficient rail capacity and border post constraints, especially the extension of the commercial cargo clearing time to eventually a 24 hours one stop border post with view to promoting greater utilization of the corridor by current and future investors and users with the following activities:
� Coordinating initiatives and engaging the relevant authorities to contribute to the planning of service and infrastructure improvements;
� Organizing events, fact-finding missions, forums and meetings; � Communicating progress and developments through electronic newsletters and the
media; � Promoting positive attitudes and perceptions towards the MDC and logistical
benefits offered by the corridor. � Putting users in touch with service providers, and providing information on all
aspects of how to utilize and benefit from the Corridor; and � Developing a website , giving exposure to MCLI members as well as being a
platform for all public communication. Organs of the MCLI
a. The Board of Directors:
The highest decision making body comprising nine executive Directors and seven non-Executive Directors. The Executive Directors are predominantly private enterprises while the non-Executive Directors represent organized business in South Africa and Mozambique as well as the two countries investment agencies. The Board of Directors fulfill following functions:
� To provide policy, direction by setting and reviewing specific directives and priorities for MCLI
� To monitor implementation � To monitor the operating structure, finances and administration of
MCLI � To determine and approve the operating and capital budgets of MCLI
b. The Executive Committee responsible for (i) the financial management of the company, (ii) giving direction to and monitoring the CEO.
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c. The MCLI Membership is open to a wide range of interested stakeholders across South Africa and Mozambique and now Swaziland, membership fees based on affordability and size of the organization.
d. The MCLI Staffing structure : The structure comprises a Chief Executive
Officer, a chief operating officer (coordinator), two event administrators, a finance administrator, a personal assistant, an office trainee, and an information and communication technician. The CEO is the pubic face of MCLI.
e. The Focus Workgroups: The MCLI Board can establish committees to
work on specific matters. Four key groups have been so far established on following areas : Borders, rail, institutional framework and shipping.
2.5.7. Funding Mechanism The MCLI is a membership organization where members pay an annual membership fee. Its activities are funded through these fees as well as a contribution from the South Africa National Department of Transport (DOT). A MoU is in place through which the DOT makes a contribution towards MCLI to assist the province of Mpumalanga which borders Mozambique. MCLI s funding is therefore guaranteed as long as it continues to deliver benefits to its membership and the DOT. 2.6. NACALA CORRIDOR ( Corredor de Desenvolvimento do Norte: CDN) CDN is a Company constituted and registered in Mozambique. Its goal is to the management, the rehabilitation and commercial exploitation, in an environmentally sustainable manner, of the Port and railway infrastructures in northern Mozambique. It consists of the Port of Nacala, the Nacala-Cuamba-Lichinga railway line(795 km) and the Cuamba-Entre-Lagos railway section (77 km). CDN is integrated into the Project of the Nacala Corridor, which comprises the northern region of Mozambique, Malawi and Zambia. It interlinks the Port of Nacala with the railway systems of northern Mozambique and Malawi under a single management, creating a seamless, cost-efficient transportation system, in order to integrate synergies between the inter-modal transport systems. This project includes the rehabilitation and exploitation of the Malawian railway infrastructures. To achieve this objective Central East African Railways (CEAR) has been created with same shareholder structure. 2.6.1. The Port of Nacala The Port of Nacala is situated in the extreme south of Bengo Bay, a large and sheltered bay. Due to the depths of its water, it has an exceptional conditions of navigability, allowing the entry and departure of ships of any size, 24 hours a day, requiring no dredging. These characteristics make the Port of Nacala the largest natural deep-water port on the East Africa Coast. Open on traffic in October 1951, the Port of Nacala serves its own hinterland and landlocked Malawi. It has 4 general cargo berths and 2 container berths. The general cargo berth has an annual throughput of 2,000,000 tons. It accommodates 8 warehouses with a total covered storage area of 21,000 m2 and an open storage of 80,000 m2.
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It is served by 9 5-20 ton electric cranes, three 5 ton forklift, 2 vaccuvators for grains(40 tons/hour each) and eight 2.5 m3 bale clamps. The quay of the container terminal is 372 m in length, 15 m draft and annual throughput of 45,000 TEUs. There is also a dedicated quay (no.4) for the General cargo, with 900 m length and a draft of 9.7 m, linked to the BP-Mozambique (18,000 tons) and Petromoc (35,000 tons) fuel tanks through a 3.5 km pipeline. The line is linked to vegetable oil tanks with a total capacity of 2,400 tons. 2.6.2. Northern Railway line Nacala-Cuamba is 533 lm long and has been rehabilitated during the civil war with funds from France, Portugal and European Union. Funds in local currency came from the Government, the Bank of Mozambique and CFM. The line is in good condition with modern infrastructure. The CUamba-Entre-Lagos (77 Km): CDN has been doing constant maintenance work in this section in order to improve safety and avoid derailments. Wooden sleepers are being replaced by steel sleepers to increase its efficiency. The Cuamba-Lichinga line is 262 km long. The line is essential for the development of Niassa Province and it is now undergoing consolidation works. 2.2.6. Nacala Development Corridor: One of the first development corridors identified as a
regional priority. The Nacala Development Corridor was developed jointly by the governments of Mozambique and Malawi in order to exploit the significantly under-utilized natural resources of both countries. The main strategies for the NDC initiative was first, the rehabilitation and upgrading of the historic rail and road transport route so that it renders an efficient, reliable, and seamless flow of goods and services. So far the emphasis has been placed on the main road from Napoli to the Nacala rail and port infrastructure. The railway concession in Malawi and Mozambique allows one company to operate the entire length of the railway and the port. Upgrading of other infrastructure along the NDC include electricity, telecommunication, and multi-faceted transport and logistics infrastructure. The SDCN (Sociedade de desenvolvimento do Corredor de Nacala-Nacala Development Company), part of Mozambican consortium group is the major private sector player on the NDC. The Lead institutions of Nacala Development Corridor are: The Department of Transport and Communications in Mozambique, the Ministry of Transport, Public Works and Housing in Malawi and the Ministry of Transport and Communications in Zambia. Specific government policies Along with a MoU signed between participating governments, the NDC falls under the Spatial Development Initiatives programme funded by the Ministry of Trade and Industry.
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a. Physical Infrastructure sector
� Funding has been made available for the 77 km rail network in Mozambique � The Nacala port has been planned to be upgraded to international standards by securing
private sector finance � An industrial Development Zone has been created at the Nacala port � The Roads and Bridges Management and Maintenance Programme was put in place and
continued with the PRISE (Programma Integrada do sector de Estradas) implementation plan
� The transmission network was upgraded and a second cellular network is granted.
b. Large scale projects and key Private Sector stakeholders The majority of large scale projects are in the area of mining in which the largest number of private sector stakeholders are found, which include:
o Vale Investment – The Brasilian mining company with mines in Moatize, Tete; o ZTE China – a global provider of telecommunication equipmrnt and network solutions; o CEAR – Central East African Railways; o INSITEC Group – Owners of CEAR and SDCN o Mulange Bauxite – a mining company
c. Large scale projects:
o Transport: Rehabilitation of railway infrastructure, establishment of industrial and economic free zones, grading and rehabilitation of airports and improvement of roads;
o Ports: Creation of Inland ports at Nacala, improvement of port operations at Nacala and Meponda
o Power: The Caia-Nacala power line station, establishment of transmission lines and development of hydro and thermal power facilities;
o Mining: Angoche heavy sands mine, Manhhamba coal mines, Chikwawa coal reserves o Tourism: The Niassa Reserve. In May 2009, the Nacala Road Corridor Rehabilitation project began with the first phase of 365 km of the 1,033 km road linking Zambia, Malawi and the interior of Mozambique to the Nacala port.
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2.7.BEIRA CORRIDOR: A SDI for agricultural development project with BAGC: Beira Agricultural Growth Corridor
Beira Development Corridor Map.
Source: Beira Corridor website. Beira Corridor is identified as an economic development linking Zimbabwe, Zambia and Malawi to the port of Beira in Mozambique. The Zambezi River Basin is a critically important resource hinterland that can provide a platform for economic growth and development. The Zambezi River Basin initiative aims to mobilize public and private sector resources in a partnership to utilize the area`s inherent development potential and create a platform for economic growth and development.
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The anchor infrastructure projects include among others: • The Moitize Thermal power station; • The upgrading of the Sena railway line to facilitate the transfer of the coking coal
through Beira; • The upgrading of Beira Port • The development of the Inchope-Gorongosa-Caia Highway; • The Zambezi River Bridge at Caia.
The economic development projects aim the development of the Moatize mine and the establishment of new mines in Zimbabwe; those are: chrome, nickel, iron ore and platinum and the large variety of metallic and non-metallic minerals that occur within the Mozambican Zambezi basin. Beira Corridor is also a large area with huge agricultural potential. In Mozambique alone, there are 10 million hectares of arable land with good soils, climate and access to water. The Beira Agricultural Growth Corridor (BAGC). Launched early 2009 at the “World Economic Forum” at Davos, 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. This SDI approach has been motivated by a number of reasons linked to Beira corridor development:
• A number of large mining investments are going ahead along the corridor which can access to energy, water and transport infrastructure to boost local demand for foof crops;
• Other major projects are under the way to improve transport infrastructure including the Sena railway and Beira port;
• There is international interest in investing in agriculture in this part of Africa in response to concern about food security.
The BAGC has recently launched a report “BAGC-Delivering the Potential” which shows how south eastern Africa can become a world class agricultural producer eliminating food imports. 2.8. WALVIS BAY CORRIDOR: a true public-private partnership in corridor development. The Walvis Bay Corridor consists of three trade routes linking the port of Walvis Bay in Namibia to neighboring countries. The three routes are known as: Trans-Kalahari Corridor(TKC); Trans-Caprivi Corridor(TCC); and Trans-Cunene(TCuC). The Trans-Kalahari Corridor is a highway connecting Walvis Bay to Johannesburg and Pretoria through Botswana. The Trans-Caprivi Corridor is a highway which branches off from the Trans-Kalahari Highway at Karibib and proceeds north-eastwards via Grootfontein to the Angolan boarder at Rundu, and then eastwards through the Caprivi strip to Katima Mulilo where a new bridge across the Zambezi River into Zambia onto DRC is open since 2004. The Trans-Cunene consists of the northern part of Namibian national from Otavi to Oshikango and shares the same rout as the the Trans-Caprivi Highway from Walvis Bay to Otavi. From Oshikango, the road continues to Lubango in Angola.
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The WB Corridor is a multi-country Corridor network which directly includes a total of 6 SADC countries, namely Namibia, Bostwana, South Africa, Angola, Zambia and DRC. Walvis Bay Corridor Routes
Source: WBCG Namibia by accommodating the port and all the three Corridor legs plays a central role and is the main driver of the development of the WB Corridor into a west coast SADC corridor.
2.8.1. Key Objectives The key objectives of WBC development have been:
• To facilitate regional transport and trade and ensure full utilization of the port and corridor infrastructure assets;
• To position the port of Walvis Bay as the western gateway to SADC, and • To support regional integration.
The development of WBC has been realized in 2 phases with the stage (1990 – 2000)dedicated to government investments in the port and corridor infrastructure. Upon completion of core infrastructure components(port expansion, equipping and dredging; the TKC and TCC highway completion), however, the corridor transport was found underutilized.
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The second phase from 2000 focuses on removing impediments to the full utilization of the regional infrastructure and generating economic benefits for the corridor stakeholders and the region at large.
2.8.2. Institutional arrangement The WBC has two main classes of structures, those that deal with the corridor as a whole including its three arms, and those that relate to the individual arms. The general corridor institution is Walvis Bay Corridor Group (WBCG) while only one institution. The TKC Management Committee has also been established.
� WBCG Secretariat : In 2000, a public-private partnership body known as the Walvis Bay Corridor Group was established to coordinate and integrate the various public and private sector development efforts along the WBC. Its mission was “To increase the utilization of the WBC and maximize the flow of traffic on the corridor routes; this will be achieved by
� Engaging in marketing activities focusing on business development and on attracting Atlantic business from traditional routes;
� Facilitating the provision of relevant enabling frameworks; and � Lading in capacity building exercises in the transport and transport corridor sector.
The anticipated results are to the benefit of Corridor stakeholders and the SADC region.
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WBCG members include:
� Private sector : The national Associations of the Forwarding and Clearing industry (NAFF), of the trucking industry (NAMROAD) and the port industries (WBPUA);
� Parastatal sector: The Namibian Ports Authority (Champion) and railway sister company, TransNamib Ltd;
� Government: The Depatment of Transport, Customs and Trade and industry. The WBCG sustains a lean three person secretariat in Windhoek. It task is to coordinate the corridor related activities of its members into an integrated corridor development approach. The Secretariat has a separate program areas with focus on business development, transit facilitation and infrastructure development. In addition , it implements a number of capacity building and support programs for the members such as HIV/AIDS help desk and commercial training opportunities. The Group therefore federates the Namibian stakeholders in an effort to promote their country`s competitiveness for landlocked and neighboring countries access.
WALVIS BAY CORRIDOR GROUP
Joint PPP of logistics providers
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� The Trans-Kalahari Corridor Management Committee (TKCMC)
A MoU establishing the TKCMC has been signed in 2003 by Botswana, Namibia and South Africa. The WBCMG serves as the Secretariat for the TKCMC. A similar Corridor Management Committee has been initiated for the Trans-Caprivi Corridor ( WB-Ndola-Lubumbashi-Corridor Committee) as well as for the Trans-Cunenen Corridor. The TKCMC is composed of representatives of transport operators, infrastructure and transport authorities, port and Customs authorities, freight forwarders, and generally of all business and agencies interested in the corridor. The objectives of the TKCMC are to:
o Develop strategic partnerships between themselves and the private sector; o Simply and harmonize their Customs procedures, adopt a common transit procedure and
introduce joint Customs control at borders points; o Establish consultative committees composed of public and private sector stakeholders on
the subject of joint Customs control; o Ensure that revenue obtained from road users under road users charges are dedicated to the
maintenance and operation of roads; o Offer equal access to each other`s transport markets; o Adopt and implement harmonized standard in respect of vehicle characteristics, vehicle
fitness, road signs, axle load, etc… o Improve traffic safety by law enforcement and driver training and testing.
In order for the committee to perform its work, the MoU provides for the establishment of an Operations Committee and Working Groups.
The Operations Committee: The Operations Committee consists of the Chairperson and Vice Chairperson of the TKCMC, and four representatives of the private and public sectors from different areas of interest or specialization.
The National Corridor Committees: These committees exist in member states to follow up and monitor implementation of TKCMC programs and decisions.
The Corridor Secretariat: The MoU envisages a rotating secretariat but the current secretariat of TKCMC is WBCG.
TKC milestones
• 1998 – Official opening of TKC road • 2000 – Deepening of the Port of Walvis Bay • 2001 – Establishment of TKC Management Committee • 2001 – Extension of border hours (Botswana & Namibia ) • 2002 – Launch of SAD 500 pilot on TKC • 2002 – Private sector inspection of TKC • 2003 – Signing of MoU on TKCMC • 2005 – Opening of the Bakwena Platinum Highway • 2006 – Roll out of SAD 500 in SADC • 2007 – Full time Secretariat of TKCMC • 2007 - Extension of border hours (Botswana & Namibia ) • 2008 – Opening WBCG office in Gauteng • 2010 – Official launch of TKC Secretariat
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2.8.3. Funding Mechanism The WBCG is funded through membership contributions from NAMPORT and WB port operator, the latter meeting a significant proportion of the costs. The TKCMC is funded through equal contributions by the signatory states. A study on the sustainability of the corridor recommended a staggered funding system moving from the current contributions by governments to payments by beneficiaries gaining from the work of the committee. There is also an agreement in principle to implement a tonnage levy system and the TKCMC is reviewing mechanisms for implementing such system. 2.8.4 Key interventions on TKC
The TKC links WB with Botswana and the industrial region of Gauteng, South Africa. It complements and competes with import/export routes through the Ports of Durban, Port Elisabeth, Cape Town and Coega. The TK Highway is 1,800 km between WB – Windhoek – Gaborone – Johannesburg / Pretoria. The TKC is complemented by Maputo Corridor thus creating a transportation link over the entire breadth of the continent.
• The development of the port of Walvis Bay
A Port Master Plan (1996-2000) identified the locational advantages of the port in regard to trade with Trans-Atlantic markets and recommended to develop the WB port into a regional hub port to serve the SADC region. The proposed development and investment program was duly implemented between 1996 and 2000, with dredging of the port to the depth of – 12.8 m CD to allow deep sea vessels to call the port of WB. The Container Terminal Information System (CTIS) and other management information systems were introduced to greatly enhance Port`s planning and operational efficiency. The Port Master Plan II (2007) reconfirms the regional strategy pursued and the potential of WB as a regional hub port.
• The Trans Kalahari Highway.
The Trans Kalahari Highway was built jointly by Botswana and Namibia in the 1990s and officially opened in 1998.
• Bakwena Platinum Highway South Africa complemented the TKH development with a toll road connecting the TKH to Johannesburg and Pretoria that opened in 2005.
• Facilitation measures. Key interventions to be pursued through TKCMC focus on improvements on border management, customs, road transport and traffic but also business development:
� The extension of border operating hours between Namibia and Botswana (to be followed by SA);
� The introduction of a common customs documentation SAD 500 along the TKC, as a model development for SADC region
� Study of animal control and increased fencing in Botswana.
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2.8.4. Key intervention on TCC The Trans Caprivi Corridor (TCC) links WB with Zambia and southeast DRC over a distance of 2,500 km, and connections to Zimbabwe. The TCC links in Kapiri Mposhi in Zambia with the Dar Es Salaal Corridor and thus extends transit infrastructure to the Indian Ocean. The main key infrastructures realized include:
� The Trans Caprivi Highway linking Namibia to Zambia and Botswana was opened in 1999.
� Katima-Mulilo Bridge and Sesheke – Livingstone Road Rehabilitation to support the boom of mining sector in Zambia and DRC.
� Chingola and Kasumbalesa Road Rehabilitation (2006) � Facilitation measures include improvement of regulations for cross border transport and
trade, simplification of truck driver business visa regulations and harmonization of GVM and axle load limits.
2.8.5. Key Intervention on TCuC The Trans Cunene Corridor links WB with southern Angola up to Lubango over a distance of 1,600 km. It is supported by a rail line which presently extends up to Ondangwa in Namibia. The TCuC also provides a strategic link to the regional Johannesburg – Windhoek- Luanda Corridor which is part of the transcontinental Windhoek – Tripoli Corridor (Corridor no.4 of the Trans African Highway Network). The TCuC link has been the best developed of the WB corridor legs, due to its strategic importance in pre-independence Namibia. Fully developed road infrastructure extends up to Angola – Namibia border and the investment on extension of the Namibian north rail line up to the border complements the road infrastructure with the long term aim of being connected to Angolan rail system. 2.8.6. Projects in progress on WB Corridors
• Transport Master Plan - Namibia • Upgrade existing rail infrastructure -Namibia • One Stop Border Posts - (TKC, TCuC, TCC) • Dry Ports in Walvis Bay (Botswana, Zimbabwe, Zambia) • Develop Infrastructure facilities at Kasumbelesa (Zambia) • Corridor Trucks stops • Rail feasibility studies– TCC & TKC • Investment in WB port to achieve port draft of 14.5 million MT by and 500,000 TEUs by
2013 from current 12.8m MT and 260,000 TEUS.
2.8.7. Performance on WB corridors
TKC links WB with Gaborone and Gauteng over a distance of 1800 km and allows 48 hours transit time to/from Gauteng.
TCuC links WB to Southern Angola in one day service to border with an increase in traffic over 100% p.a.
TCC linking WB with Zambia, DRC and Zimbabwe allows transit time of 5-6 days from port to Lubumbashi over a distance of 2,500 km with the Bridge along Zambezi completed since 2004.
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Promotion of safe corridors programs along the WBC include : road safety measures, transport security measures, mitigating HIV/ AIDS through workplace Program, awareness, VCT, IEC distribution and roadside wellness centers.
2.9. DURBAN CORRIDOR or NORTH – SOUTH CORRIDOR: A multilateral Management
Committee governed by an Inter-State MoU ( NSCMC). Beginning from the port of Durban, the North-South transport system links the main industrial centre of Gauteng in South Africa to Zimbabwe, Zambia, DRC and Malawi. 2.9.1. Port of Durban: The busiest port on the African continent. The Port of Durban is the busiest and biggest container port in S.A. It has a total of 59 effective berths excluding those used by fishing vessels and ship repair. A total of 302 km of rail tracks extends throughout the port area along with excellent several major marshalling yards. The Port is served with excellent rail and road links to Gauteng the most industrialized region in S.A. During financial year 2008/2009, the Port handled a total of 4,554 ships with a gross tonnage of 114,723,266 representing 38% of the ships calling at all South African Ports. Cargo handled amounted to 74,683,597 tons which included oil and petroleum products. The combined Durban Containr Terminals handled 2,560,366 TEUs (34,564,941t) during 2008/2009 of which imports were 948,237, exports 994,651 and 617,478 TEUs transshipped. Container traffic handled at Durban Port represented 67.4% of the total number of containers handled at S.A. Ports. The Durban Car Terminal – the Country`s largest import and export facility for the motor industry – handled 372,557 motor units of which 184,511were imports, 182,091 exports and 5,955 were transshipments. This premium container handling port handles car carriers, petroleum, chemical tankers and all sizeable vessels that bring in profitable trade opportunities. The port is managed by NPA (The National Ports Authority) along with 7 other south African ports, namely: Port of Richards Bay, Port of East London, Port of Elisabeth, Port of Mossel Bay’, Port of Cape Town, Port of Saldanha and Port of Ngqura. The South African corridor management experience is illustrated by an integrated transport system coordinated by one entity The Transnet Ltd and the management of the North-South Corridor by a Multilateral Management Committee established by an MoU signed by 7 member States. Transnet Ltd is a focused transport and logistics company wholly owned by the South Africa Government made up of the following operating divisions:
• Transnet Freight Rail; • Transnet National Ports Authority; • Transnet Port Terminals • Transnet Pipelines • Transnet Rail Engineering.
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The Company is positioned to provide integrated, seamless transport solutions for its customers in the bulk and manufacturing sectors as part of its drive to improve the efficiency and competitiveness of South Africa economy.
� Transnet National Ports Authority controls and manages all seven commercial ports on 2,954 km South African coastline. Situated at the tip of the African continent, the South African ports are in an ideal position to serve shipments from both eastern and western seaboards. With modernized infrastructure and equipment, NPA ports are able to offer efficient services to port users throughout sub-Saharan Africa. Each port has a natural hinterland with a defined market. This determines to a great extent the nature and types of cargo handled at each port, which in turn dictates the type of facilities each port provides to operate and develop specialized services.
� Transnet Freight Rail is the largest division of Transnet Ltd. It is world –class heavy haul
freight rail company which is specialized in the transportation of freight. The Company maintains an extensive rail network across South Africa that connects with other rail networks in the sub-Saharan region, with its rail infrastructure representing about 80% of Africa`s total. The company is technically supported by the sister company Transnet Rail Engineering.
� Transnet Rail Engineering is an operating division of Transnet Ltd and backborne of
South Africa`s railway industry. The Organization is dedicated to in-service maintenance, repair, upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, diesel and electrical locomotives as well as wheels, rotating machines, rolling stock equipment, castings, auxiliary equipment and services. The Transnet Rail Engineering is the supplier of choice for successful railway operations.
e North – South Corridor (NSC) road and railway routes.
Source: FESATRA
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Mzuzu
Kabwe
Ndola
GweruBeira
Rundu
Matadi
HuamboLobito
Luanda
Namibe Lusaka
Harare
Mtwara
Maputo
Nacala
Maseru
Durban
Lubango
Malanje
Blantyre
Kinshasa
Gaborone
Kapiri Mposhi
Bulawayo
Morogoro
Lichinga
Luderitz
Oshakati
Rehoboth
Windhoek
Lubumbashi
Mbuji-Mayi
Livingstone
Dar es Salaam
Cape Town
Johannesburg
Polokwane
Port Elizabeth
Francistown
Pretoria
DRC
Angola
South
Afric
a
Namibia
Zambia
Tanzania
Moz
ambiq
ue
Botswana
Zimbabwe
Mal
awi
Lesotho
Swaziland
#YMartinsDrift
Mbaban
e
300 0 300 600 900 1200 Kilometers
North-South Corridor LinksSADC RTRN
Legend#Y Capital City#Y Other Key Centre
N
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S
North - South Corridor
SADC SecretariatInfrastructure and Services Directorate
Beit Bridge
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Road routes : a) Durban – Johannesburg – Groblersbrug / Martins Drift – Francistown –
Kazungula - Lusaka – Chililabombwe / Kasumbalesa – Lubumbashi – Kolwezi.
b) Durban – Johannesburg – Beit Bridge – Harare – Chirundu – Lusaka – Chililabombwe / Kasumbalesa - Lubumbashi - Kolwezi.
c) Durban – Johannesburg – Beit Bridge – Harare – Nyamapanda – Zobue / Mwanza – Blantyre.
Railway routes :
a) Durban – Johannesburg – Beit Bridge – Bulawayo – Victoria Falls – Lusaka – Lubumbashi.
b) Durban – Johannesburg – Lobatse – Gaborone – Francistown – Bulawayo – Victoria Falls – Lusaka – Lubumbashi.
2.9.3. Establishment of the NSCMC ( North-South Corridor Management Committee) : A model for a multi-country corridor management. A Memorandum of Understanding (MoU) establishing the NSCMC was 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. The main objective is to fulfill their obligations under various international and regional agreements to which they are party and in particular the Protocol on Transport, Communications and Meteorology of the Southern African Development Community( “the SADC Protocol on Transport, Communications and Meteorology”) and the Protocol on Trade of the Southern African Development Community (“the SADC Protocol on Trade”) ; The SADC Spatial Development Initiative (SDI) Strategy on Corridor Transportation, Trade Facilitation and Infrastructure Development is likely to be boosted by a North South Corridor Management Committee (NSCMC) effectively structured and adequately resourced to meet its primary role of co – ordination and facilitation, and of detecting and remedying corridor constraints and inefficiencies.
a. Principles guiding the MoU:
� Equal treatment – The Member States to apply laws, regulations, procedures and
administrative measures pertaining to the movement of goods and persons within the NSC
so as to ensure the equal treatment of all stakeholders along the NSC;
� Transparency – The Member States to make all laws, regulations, procedures and
administrative measures pertaining to the movement of goods and persons on the NSC
publicly available in a prompt, transparent and readily accessible manner;
� Harmonization – The Member States to endeavor, as far as practically possible, to
harmonize all laws, regulations, procedures and administrative measures pertaining to the
movement of goods and persons on the NSC;
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� Efficiency – The Member States to ensure the efficient and effective administration of
transit traffic to facilitate the movement of goods and persons on the NSC;
� Simplicity –The Member States to endeavor to ensure the simplification of all laws,
regulations, procedures and administrative measures pertaining to the movement of goods
and persons on the NSC;
� Consistency – The Member States ensure the consistent application of all laws, regulations,
procedures and administrative measures pertaining to the movement of goods and persons
on the NSC; and
� Mutual assistance – The Member States to endeavor to ensure cooperation and mutual assistance between their respective authorities that are involved in the facilitation of the movement of goods and persons on the NSC.
b. The Scope of the MoU comprises:
� The establishment of the NSCMC by the Member States and definition of its membership.
� The objectives of the Member States in establishing the NSCMC and prescribes the terms of
reference / priority issues to be addressed by the NSCMC.
� The roles and functions of the NSCMC.
� The structure of the NSCMC at both corridor and individual Member State levels.
� The operational and administrative procedures of the NSCMC.
� The financing arrangements for the NSCMC and
� General Provisions.
c. The membership of the NSCMC include the following
stakeholders :
� Public sector stakeholders including all modal transport and infrastructure authorities, industry and trade, ports authorities, customs, immigration, security agencies, health, environment and community leaders.
� Private sector stakeholders consisting of all modal transport operators associations, freight
forwarders and clearing agents, industry and trade associations, tourist groups and service providers (such as financial, insurance and ICT).
� Regional Institutions stakeholders including the Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), United Nations Economic Commissions for Africa (UNECA) , Federation of East and Southern African Road Transport Associations (FESARTA), Port Management Association of Eastern and Southern Africa (PMAESA), Association of Southern African National Road Authorities (ASANRA), Southern Africa Railways Association (SARA) and the Federation of Clearing and Forwarding Agents of Southern African (FCFASA).
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d. NSCMC Structure, Responsibilities and Procedures The NSCMC consists of organs at both NSC grouping of the Member States and each Member State’s national levels as follows :
� NSC Level a) Executive Management Committee b) Secretariat
� National Level
a) National Corridor Committee b) Ministries and Private Sector Associations
� Secretariat
The Secretariat shall be suitably qualified professionals from within any of the Member States, appointed by and responsible and accountable to the EMC. Structure of the Secretariat The Secretariat shall be structured as follows:
a) The Chief Executive Officer (CEO) b) A Transport and Trade Facilitation Officer c) An Infrastructure and Facilities Development Officer d) A Finance and Administration Officer e) Any other persons as appointed by the CEO, with the approval of the EMC, as are
required for the proper discharge of the functions of the Secretariat. III. LESSONS LEARNT FROM EXISTING CORRIDOR ARRANGEM ENTS.
From above Chapter II, one can note that there are different forms of corridor management institutions and arrangements ranging from private sector led arrangements operating as lobby groups to those that are State run authorities. The existing bodies differ from the founding instrument, working mechanism and also from the funding mechanism while their overall common objective is to enhance competitiveness of regional economy through optimization of business operational cost along the corridor. This may be achieved through infrastructure development and trade facilitation strategies. 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. Transport corridor development in SADC region for example is driven by various SADC protocols. There is therefore a big concern on the slow if not lack of implementation of protocols or any other transit transport facilitation instruments. A true PPP approach is yet to be effectively structured to ensure public-private interaction in corridor development. 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.
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The legal instruments governing the CMI have been assessed as treaties, agreements, MoU , protocols, Constitution etc… and can refer to international laws or can be a written agreement between two or more sovereign public law entities such as States intended to create rights and obligations between parties. They may be bilateral or multilateral. However those instruments generally lack provisions that oblige signatory bodies to enforce decisions through enactment of relevant national policies and legislation. Specifically, following are the main characteristics for each corridor:
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.
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.
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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 of the Southern African Development Community( “the SADC Protocol on Transport, Communications and Meteorology”) and the Protocol on Trade of the Southern African Development Community (“the SADC Protocol on Trade”).
As a matter of fact, the best practices experienced in corridor management are (but not limited) following:
1. Involvement of Private Sector in Corridor Management Institution on a PPP basis; 2. Elimination of Non-Physical Barriers along the transport corridor; 3. Transformation of Transport corridor into economic corridor. 4. Sustainability (Funding) 5. International Benchmarking.
3.1. Involvement of private sector in CMIs on a PPP basis. Transport corridor management issues are diverse and involve several stakeholders. Therefore the setting-up of an effective mechanism for corridor management should reflect the issues and ways of engaging key stakeholders from public and private sectors. It is a general opinion that public services such as Customs, immigration, traffic police etc… are the sole responsible for constraints along the corridors. However, private sector entities involved in transit operations can be also part of the problem when for example transit agents fail to provide documents for clearance in time or shippers fail to settle required payments or bonds (Djibouti Corridor). It is therefore essential to improve efficiency of the public institutions but also focus on those issues associated to private stakeholders. The analysis of characteristics of the corridors on study indicates that nine out of 11 corridors were founded on a PPP arrangements. However, while private sector consultation is common in the management of transport corridors, such private sector involvement is not necessarily integrated into the decision-making structures. In PMAESA region, sharing of best practices in engaging the private sector in corridor development initiatives can refer to:
� MCLI model with its private sector driven corridor development initiatives; � NC-TTCA model with its “Stakeholders Consultative Forum” � WBCG with a true public-private partnership in corridor development.
Creating a private sector driven corridor management may also secure financial sustainability from various sources of income through membership contributions from private companies (MCLI, WBCG).
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An enhanced public sector involvement in corridor management is also essential in addressing NTBs to trade and transport and in facilitating investments along the corridors. The South Africa Department of Transport (DoT) can be a model with its interventions on Maputo Corridor. 3.2.Elimination of NonTariffs Barriers (NTBs). The establishment of Corridor Observatories to monitor corridor performance facilitates the identification of obstacles to the smooth flow of the traffic along the corridor (delays and cost factors) which range from Customs documentation and administrative procedures to police road blocs through varying trade regulations and transit procedures. The NC-TTCA has recently released a comprehensive report on non-physical barriers along the Northern Corridor while the North-South Corridor has implemented an Observatory at the Beit Bridge. Other corridors can learn from these two corridor authorities and especially consider the introduction of the Single Administrative Document (SAD 500) along the NSC. Many Corridor Institutions are introducing and promoting the OSBP, but still this cross border facility is yet to be fully implemented. Exchange of experiences may facilitate the identification of champions for the introduction of OSBP especially the handling of border infrastructure, customs and immigration systems, transport facilitation etc… The TKC and Dar Corridor have advanced projects on OSBP and may serve as reference. Anticipated benefits of an effective operational OSBP are:
� Reduced border processing time � Improved security and access (24 / 7) � Less parking congestion � Reduced Bond release time � Reduced infrastructure operating costs � Improved ICT systems � Fewer cargo inspections � Reduced corruption etc…
In regard to transit transport facilitation, the NC-TTCA can be “champion” in its following up of the implementation of a number of COMESA Transit Transport facilitation Instruments. Harmonization of facilitation instruments reduces delays and hence, the cost of doing business along the NC. The instruments include:
� Road user charges � COMESA Carrier license � Yellow card ( Third Party Motor Insurance) � COMESA Customs Document � Regional Customs Bond Guarantee � OSBP/Coordination of Border Management � Axle load limits � Overload control � Weighbridge management � Vehicles Dimensions
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Country assessment studies on implementation of above facilitation instruments have been carried out in NC-TTCA member states and reports have highlighted constraints and obstacles facing each country in its efforts to implement the COMESA transit facilitation instruments. The use of ICT in tracking of cargo is another good practice which can enhance security along the regional corridors and generate information for traffic/cargo monitoring systems for management purposes. The WBCG has already introduced Satellite Cargo tracking systems which can be applied in other corridors. 3.3. Transformation of Transport Corridor into an Economic Corridor
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 SADC has commissioned a study on using the Corridor Management Committee/SDI Approach to foster economic development and regional integration. The study focuses on the most developed SDI, the Maputo Development Corridor, and a well established CMC on the Walvis Bay Corridor which include the TKC, the TCC and TCuC. A variety of lessons can be learned from these initiatives that suggest that the development corridor approach is a very useful approach for SADC for achieving its economic development and regional integration goals. 3.4. Sustainable funding arrangement
� NC-TTCA is funded with tonnage levy on imports collected at the port and budget allocation from government. Both public and private sectors work closely in implementing the funding regime
� Dar Es Salaam Corridor funding arrangement consists in membership fees based on equal contributions by committee members and the TPA is the key coordinator for the group.
� WBC is funded with membership fees by group members and equal contributions by the signatories to the TKC MoU. Namport is leading in the group members.
� Maputo corridor is also funded by membership fees and the SA department of Transport is providing most of the funding through subsidy
� Central Corridor has benefited a grant for startup costs from AfDB and an equal state contributions is planned. TRC has seconded staff to get the corridor secretariat take off.
3.5. International Benchmarking As part of sharing best practice, the regional corridor development authorities may wish to consult with developed countries on:
� Corridor performance indicators; � Corridor performance measures � Corridor performance constraints
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And develop an action plan based on international best practices to address corridor performance constraints in PMAESA region. An example of a worldwide known initiative in corridor development analysis is “TINA Vienna – Transport Strategies “recognized as a centre for Central and Eastern European transport planning. 3.6. Need for a Coordinating and Consultative Mechanism for sharing of experience and best
practices A number of transit and transport corridor arrangements are operational in PMAESA region with different level of achieving best practices in corridor management performances. Their overall common objective is however to put in place an operational instrument to manage the trade routes for more efficiency and cost effectiveness. In the interest of the entire sub-region, this objective is to be pursued through coordinated and collaborative efforts, rather than local and individual competitive efforts (TORS). A regional platform for a networking as well as for ensuring fair competition and knowledge sharing about best practices has been identified as mechanism likely to play such role. It has been named “A Permanent Regional Corridor Development Working Group” and should be better coordinated by a Regional Economic Community (REC) directly involved in main group stakeholders` activities. The Regional Corridor Development Working Group being a forum of” inter-exchange” for multi-sector stakeholders busy on daily basis with each one`s business, there is no need to establish a lean secretariat and create another regional institution. The mechanism will need to be simple, cost-effective and time-efficient, breaching the geographic distance between the various corridor development initiatives and facilitating communication and real sharing of ideas. The participating corridor development initiatives should experience clear benefits from the agreed mechanism that is to add value to the existing landscape of institutions/mechanisms/programmes that support intra-regional corridor coordination/consultation. The mechanism agreed upon will need to be sustainable from a financial and human resource perspective as well as in relation to the required commitment from the corridor development initiatives (time, funds and skills). In order to be compliant with the principles of simplicity, cost-effectiveness, clear benefits to stakeholders and sustainability, the mechanism will need to be coordinated by a regional well established REC, hosting at same its secretariat to manage its operational activities. Recognizing the role of ports in corridor efficiency and competitiveness, the Consultant proposes PMAESA as a regional Organization for the ports and maritime sector in Eastern and Southern Africa, to host the secretariat of the proposed mechanism. It is a well established regional Organization (1973) affiliated to the United Nations – ECA and has a wide knowledge and experience in maritime sector which constitute an added value for the new mechanism. PMAESA being interacting with both ports and corridors through its programs may be most comfortable coordinating the mechanism`s activities than any other REC in the region.
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IV. PROPOSAL OF A PMAESA REGION CORRIDOR DEVELOPMEN T WORKING GROUP. 4.1.Previous Initiatives
It has been mentioned that the idea of establishing a regional mechanism for consultation and coordination of corridor development issues comes from the WBCG. The idea has been presented in PMAESA meeting in Nairobi, Kenya (March 2006) and has got support from Corridor authorities and other stakeholders. The Regional Spatial Development Initiative Programme (RSDIP) then contracted Drs. Eline Van Der Linder to undertake a study for conceptualizing a regional mechanism for consultation and coordination among corridor Initiatives in SSA. The Consultant named the mechanism “The Inter-Corridor Exchange” to reflect its various functions of:
� Exchanging information � Exchanging experiences � Exchanging know-how � Exchanging best practices
The membership of the initiative was only limited to Corridor management authorities extended to PMAESA and FESARTA. The Consultant was not thereafter given opportunity to go further and propose for the mechanism the institutional framework, the management structure, the mandate and activities, the funding mechanism and its secretariat design and that is where the current study comes in with those elements constituting the value added of this assignment. The main outcome is the operationalization of such “Inter-Corridor Exchange” mechanism. 4.2.Naming the Mechanism The TORs refer to the establishment of a “Permanent Regional Corridor Development Working Group in PMAESA region”. According to the Consultant, the use of the words “Working Group” refers to only specific matters that can be assigned to technical committees and does not match with the word “Permanent” of the title. In order to involve all Corridor stakeholders in a PPP approach and also include the geographic area aspect the Consultant proposes to name the mechanism as follow: “Eastern and Southern Africa Corridor Development Initiative”(ESACDI). 4.3.Proposed Mission
The proposed Regional Corridor Development Initiative is 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 specifically by:
� Facilitating removal of physical and non physical barriers to goods and persons transiting along the corridors;
� Setting up stakeholders network; � Promoting corridors and business development along corridors; and � Advocating for infrastructure improvement.
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ECMC
Stakeholders Representative
Forum
Focus Working Group(FWG):
Infrastructure Development
FWG: Investment Private Sector in Corridor Development
Initiative
FWG: Elimination of Non-Physical Barriers and Non-Transport
Barriers
Secretariat (PMAESA)
4.4.Institutional design The institutional structure is simple and cost-effective and looks more like an “issues-based program” arrangement than a formal institution. It is proposed to have four tiers:
1. An Executive Management Committee composed of a Chair-Person, a Vice Chair-Person and a Secretary;
2. Secretariat : PMAESA secretariat 3. A Stakeholders Representative Forum composed of key public and private
sector representatives from each corridor as well as regional level institutions 4. The Focus Working Groups: Technical committees to be established and work
on specific matters.
ESACDI Proposed Organigram
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4.5.Membership The ESACDI membership ranges from eastern and southern Africa corridor development authorities in PMAESA region to public and private sector stakeholders involved in transit transport issues. Those are: • Public sector stakeholders including all modal transport and infrastructure authorities,
industry and trade, ports authorities, customs, immigration, security agencies, health, environment and community leaders.
• Private sector stakeholders consisting of all modal transport operators associations, freight
forwarders and clearing agents, industry and trade associations, tourist groups and service providers (such as financial, insurance and ICT).
• Regional Institutions stakeholders including the Southern African Development Community
(SADC), Common Market for Eastern and Southern Africa (COMESA), East Africa Community (EAC), United Nations Economic Commissions for Africa (UNECA) , Federation of East and Southern African Road Transport Associations (FESARTA), Port Management Association of Eastern and Southern Africa (PMAESA), Association of Southern African National Road Authorities (ASANRA), Southern Africa Railways Association (SARA) and the Federation of Clearing and Forwarding Agents of Southern African (FCFASA).
4.6.Objectives The ESACDI should target to attain following main objectives:
• To co – ordinate, integrate and optimize various corridor improvement initiatives and development projects by the stakeholders of the public sector, private sector and regional institutions within the region with a view to achieving the necessary synergies and avoidance of unnecessary duplication;
• To improve the quality and the reliability of the infrastructure, transport and other logistic
services within regional corridors through advocacy for interventions by the Member States and promote the sustainable maintenance of infrastructure by all stakeholders;
• To promote exchange of experience between corridor authorities , regional economic
organisations and stakeholders ;
• To monitor the performance of the regional corridors through established observatories, benchmarks and target performance indicators measured against best practices in similar regional and international corridors and provide support for corridor activities through relevant and processed data and business information.
• To market the regional corridors by way of a corridor development master plan initially as a
transit corridor and eventually as a development corridor with a view to increasing corridor utilization and viability of corridor management structures.
• To enhance cooperation and consultation with development partners;
• To evaluate progress made, on regular basis, on transit transport facilitation in the region;
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• To enable dialogue between private and pubic sectors at national and regional levels on
corridors issues ;
• The mechanism would serve as a resource and know-how centre to partner with decision makers, industry and development partners.
4.7.Terms of Reference (TORs)
In executing its objectives ESACDI shall, without limitation, have special regard to the following terms of reference / priority issues that need to be addressed: • Harmonization of procedures, documents and standards including customs and immigration
procedures and documents, corridor user charges, overload control procedures and standards, taxes and permit costs and description of goods and applicable tariffs.
• Streamlining of border control operations in respect of the one – stop border concept,
infrastructure, systems and procedures, facilities for inspection, transit requirements and standards and operating hours.
• Develop the railway mode of transport in order to achieve an optimal balance with the road
mode of transport by way of harmonization of customs and immigration procedures and documents, pre – clearance of goods at source, provision of safe and secure infrastructure, reduction of transit times and availability of rolling stock.
• Streamlining of transit check points in order to standardize overload control procedures,
standards, equipment and security. • Co – ordination of stakeholder efforts for the eradication of corruption at transit check
points by introducing self – regulatory traffic management systems and education of corridor users as to the regulatory requirements and controls within regional corridors.
• Mobilization of critical stakeholder support and involvement in regional corridor
development issues with defined responsibilities intended to build strong and effective stakeholder networks.
• Development of general infrastructure and corridor user facilities along the corridor
including dual road lanes and railway lines with common engineering standards, alternate ports, rest, health, insurance, banking, storage, fuel, vehicle recovery and repairs and similar facilities.
• Creation of full ICT coverage along the length of the corridors to allow for electronic
inspections and monitoring of traffic, integrated cargo tracking systems and uninhibited data and telecommunications services.
• Streamlining bureaucracy particularly at border posts and changing attitudes of officials
from that of being border controls oriented to being trade facilitation agents through appropriate training programs.
• Harmonization of driver training, testing and licensing systems and standards.
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• Designing of simple measures to overcome language barriers through standardization of traffic control rules, signals and traffic signs.
• Assisting national efforts in the fight against HIV and AIDS by advocating and
implementing containment measures along regional corridors. • Undertake and resolve any issue as may be deemed priority by the ESACDI Members from
time to time. 4.8.Structure, Responsibilities and procedures.
1. Policy Organ: Executive Corridor Management Committee (ECMC). ECMC is the policy and leading organ of the ESACDI. It is preferably composed of:
� A Chair Person elected by Stakeholders Representatives Forum from CEO`s or Executives Secretaries of the regional corridor authorities;
� A Vice Chair Person elected by Stakeholders Representatives Forum from private sector members of transport service providers Associations;
� A Secretariat assured by PMAESA (PMAESA Secretary General).
The ECMC is the umbrella body of the ESACDI providing strategic guidance. Its main responsibility is to create strategic partnerships with Senior Government Officials and business leaders and advocate for improving the efficiency of transport operation, transit procedures, and development of transport infrastructure. The Chairperson of the ECMC shall be elected in turn rotation among the leading corridor management authorities and shall hold office for a period of two years and may be re – elected for a subsequent term provided such person qualifies in terms of the rotation schedule. The Deputy Chairperson shall be the private sector representative (service providers) from different region ( East vs South ) of which the Chairperson is elected.
2. Core group: Stakeholders Representatives Forum The stakeholders Representatives Forum is composed of members nominated by their constituency and may include:
� Representatives of Government (ministry of transport) from each corridor member states; � Representatives of transport operators associations of each corridor; � Representatives of regional level institutions.
As main active organ, its responsibilities refer to section 4.7 highlighting the TORs of the ESACDI.
3. The Focus Working Group The core group may establish working groups it may deem necessary to address specific issues. The working group members can be from stakeholders in corridor countries and regional institutions and may focus on main stakeholders` interests. In this line, The Sub-Saharan Africa Transport Policy Program (SSATP) has released a Working paper no.86 in which authors summarize corridors users interests in the table below.
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It is recognized that although each category of stakeholders focuses on its own interest, in the majority of cases corridor efficiencies are assessed by:
• Traffic volumes • Transport cost • Turn around time of trucks and wagons • Port dwell time • Border post transit times • Variation of all the above times.
STAKEHOLDER MAIN INTERESTS 1. Shippers • Move consignment in shortest possible
time and at minimum cost • Reduction of shipping cost • Safe transportation and handling
2. Transporters • Reduction in turn round time • Optimization of beneficial margins
3. Clearing & forwarding Agencies • Reduction in operating costs • Increased volumes of cargo handled • Fast clearance process • Reduction in cross-border charges • Simplification and harmonization of
documentation 4. Port Authorities • Increased port utilization
• Improved cargo throughput • Enhancing port competitiveness
5. Customs Authorities • Increased customs duty collection • Harmonization of customs documents • Improved of overall economic
development 6. Road Authorities • Preservation through axle load
enforcement • Infrastructure cost recovery • Improving road safety
7. Security services • Control of illegal movement • Control of illegal goods and
substances • Management of plants and animals
8. Health authority Control and management of diseases associated with mobile populations ( HIV/AIDS, sexually transmitted infections ….)
9. Development partners Increase trade, regional integration, poverty alleviation
10. Consumers Reduction in cost of goods. Source: SSATP Working Paper no.86, p.30
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4. Secretariat PMAESA as one of the well established regional institutions having initiated the establishment of this mechanism may host the secretariat during the first term of the ECMC. The latter may explore thereafter modalities of setting up a secretariat with a sustainable funding mechanism taking into consideration the mechanism should not overlap with other various regional integration facilitation institutions. In assuming the ESACDI secretariat PMAESA functions may include:
� To provide technical advice to the core group and working groups; � To convene meetings in consultation with the Chair Person; � To provide technical, administrative support and other services during meetings; � To establish productive working relationships with stakeholders, other corridors and
institutions; � To disseminate information at various levels and coordinate in consultation with the
ECMC overall ESACDI activities. 5. Meetings of the ESACDI
� The ESACDI through its Stakeholders Representatives Forum shall
ordinarily meet at least once a year at a time and place as decided by the Chairperson. Extra – ordinary meetings shall be held as necessary and as decided by the Chairperson in consultation with the other members of the ECMC.
� Meetings of the ESACDI shall be convened by the Secretariat acting
in consultation with the Chairperson, by way of an appropriate notice containing a draft Agenda and applicable Minutes of the Previous Meeting. Such notice of a meeting shall be given at least one month prior to the proposed date of such meeting.
� The ESACDI shall adopt its own internal operations and administrative procedures and generally freely regulate its own affairs and meetings.
� The Secretariat shall attend and actively participate in meetings and
provide requisite secretariat, administrative and other services. 6. ESACDI Funding and its sustainability
In the early formative stage, some of the existing corridor institutions have been funded by corridor champions or donors. Donor funding is however not sustainable in the long term and that is why the mechanism must be funded by using one of the other alternative approaches: membership contributions, benefit-based contributions, usage levies or any other approach deemed appropriate by group members. For ESACDI case, it will be necessary to obtain some initial funding from other sources until the stakeholders have reached a stage where they can appreciate the key benefits and are able to fund the activities themselves. Funding request to cover startup costs can be addressed to:
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� The World Bank Group when advocating for transport infrastructure development. The Bank has a wide portfolio of transport infrastructure projects in SSA with an emphasis on sustainable financing and management of road and rail sectors. The WB is also funding regulatory issues programs such as removal of NTBs and customs reform.
� USAID through its East and Central Africa (Nairobi – Kenya) and Southern Africa
(Gaborone – Botswana) Global Competitiveness Hubs. Since 2003, USAID has been a major supporter of corridor development on various Corridors (TKC, Dar Corridor, Maputo Corridor) and focuses mainly to providing Technical Assistance and Capacity Building in establishing Corridor Management Institutions (CMIs) for removing NTBs, promoting Public-Private sectors Partnerships in CMIs for resolving NTBs and to assisting directly in resolving NTBs in transport corridors.
� JICA (Japan), specifically with its program of introducing OSBP.
� DFID (UK) as major player in Southern Africa region in facilitating the flow of donor
resources and capacities. In the late stage, funding mechanism should better be oriented to contributions by stakeholders as one of the most common approaches of corridor funding arrangement (Maputo, Dar Es Salaam, Trans-Kalahari). The main contributors would be the corridor champions, such as the port authorities and main shippers.
6. Legal instrument
The choice of Legal Instrument to govern the ESACDI will be influenced by key partners and depends on the level of interaction between public and private sector stakeholders. It can be assumed that a simplified MoU setting up the framework for the management arrangement could better fit with the mechanism. However and in any case, the legal instrument to be adopted must be harmonized with the legal regimes of the corridor countries and must be ratified by the responsible public bodies of corridor member states. A stakeholders consultation to orient the type of instrument is deemed necessary.
7. Implementation It is expected that upon submission of this Draft Report, PMAESA will convene a stakeholders workshop. The proposed Consultative Workshop will bring together:
� All Eastern and Southern Africa Corridor Management Authorities or Committees; � Public sector stakeholders including all modal transport and infrastructure authorities; � Private sector stakeholders consisting of all modal transport operators associations,
freight forwarders and clearing agents, industry and trade associations, � Regional Institutions stakeholders including the Southern African Development
Community (SADC), Common Market for Eastern and Southern Africa (COMESA), United Nations Economic Commissions for Africa (UNECA) , Federation of East and Southern African Road Transport Associations (FESARTA), Port Management Association of Eastern and Southern Africa (PMAESA).
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Referring to the Preliminary Draft Report findings and proposals, it is expected that such forum:
� comes out with a clear assessment on a Need and/or interest in a coordinating /consultative mechanism among corridor development initiatives and relevant stakeholders;
� identifies those corridor development activities that would require support from such a mechanism;
� recommends the institutional anchoring of the coordinating mechanism in relation to existing regional, national and/or technical working groups;
� determines the optimum operational/institutional design of the coordinating mechanism; � determines the action plan and Terms of reference of the proposed ESACDI � recommends possible resource mobilization or financing strategies. � amends /approves the Consultant report document for further dissemination.
The Consultant will thereafter incorporate the workshop recommendations and inputs in the final draft report for further dissemination and implementation.
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V. CONCLUSIONS A good number of transit and transport corridor arrangements are operational in PMAESA region with a common objective to manage the trade routes with efficiency and cost-effectiveness. Lessons learnt from overviewed corridors indicate that the existing bodies differ from the founding instrument, working mechanism, funding mechanism etc… while their overall common objective is to enhance competitiveness of regional economy through optimization of business operational cost along the corridor. Some corridors are “Champions” in achieving best practices in corridor management while others are yet to learn from those “champions corridors”. Best practices include among others Involvement of Private Sector in Corridor development and Management Institutions; elimination of Non-Physical Barriers and NTBs along transport corridors; the transformation of Transport corridor into economic corridor, and International Benchmarking. Many of the overviewed corridors are yet to achieve such performances. It has been therefore recognized that there is a need of setting up a coordinating and consultative mechanism within the region, likely to facilitate the sharing of experiences and best practices in corridor development among various corridor development initiatives. Such mechanism has been defined and named “Eastern and Southern Africa Corridor Development Initiative” (ESACDI) with as main responsibility to create strategic partnerships with Senior Government Officials and business leaders and advocate for improving the efficiency of transport operation, transit procedures, and development of transport infrastructure. The membership ranges from eastern and southern Africa corridor development authorities to public and private sector stakeholders involved in transit transport issues. The main objective is:
� To co – ordinate, integrate and optimize various corridor improvement initiatives and development projects by the stakeholders of the public sector, private sector and regional institutions within the region with a view to achieving the necessary synergies and avoidance of unnecessary duplication.
� To improve the quality and the reliability of the infrastructure, transport and other logistic
services within regional corridors through advocacy for interventions by the Member States and promote the sustainable maintenance of infrastructure by all stakeholders;
� To promote exchange of experience between corridor authorities, regional economic
organisations and stakeholders .
By assuming above responsibilities the ESACDI would serve as a resource and know-how centre to partners with decision makers, industry and development partners. The initial effort for the ESACDI should aim at prioritizing regional transport infrastructure / Corridors and develop a regionally coherent Corridor development program. In addition to infrastructure and facilitation programs, ESACDI should address the issue of capacity building at national, sub regional and regional level. ESACDI`s structure being light and flexible, its meetings are also designed to identify problems and report back on achievements in solving them through ad hoc working group system (Focus Working Groups) created to allow clear achievements objectives to be met by stakeholders involved in the issue.
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PMAESA as a sustainable and permanent regional organization, interacting with both Ports and Corridors may provide administrative and technical assistance in preparation and follow-up of the meetings.
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VI. BIBLIOGRAPHY. 8. Arnold, J. (2006) “ Best Practices in Management of International Trade Corridors”, WB
Transport Papers, World Bank, Washington, DC. 9. Teravaninthorn, S. and Raballand, G. (2009) “ Transport Prices and Costs in Africa, A
Review of the International Corridors”, The World Bank, Washngton, DC. 10. Adzigbey, Y. , Kunaka, C. and Mitiku T. “ Institutional Arrangements for Transport
Corridor Management in Sub-Sahara Africa, SSATP Working Paper no.86. 11. Drs. Eline Van Der Linden (2007), “The Inter-Corridor Exchange”, a draft concept note,
RSDIP, Madrand, South Africa. 12. Corridor Development Consultants (PTY) Ltd (2007), “Study on the Corridor/Spatial
Development Initiative”, SADC, Gaborone, Botswana. 13. De Maton, J.G. (2004) “ Facilitation of Transport and Trade in Sub-Sahara Africa , A
Review of International Legal Instruments, SSATP Working Paper, Washington, DC. 14. Mwali, A.M. (2004) “ Trans Kalahari Corridor Institutional sustainability Study, Southern
Africa Competitiveness Hub, Gaborone, Botswana. 15. Prome Consultants Ltd and Dr. C.K.Kaira Associates Ltd (2005) , Uganda “ Baseline
Survey of Key Non-Physical barriers along the Northern Corridor and the Establishment of a Database at the TTCA Secretariat”.
16. Prof. Irundu, E. M, (2007) “ Country Assessment Study on Implementation of COMESA Transit Transport Facilitation Instruments” in Kenya.
17. PMAESA (2006), “ Brief on the Regional Coordination Management Authorities Meeting”, Nairobi, Kenya.
18. Websites : � PMAESA � NC-TTCA � COMESA � SADC � EAC � UEMOA � FESARTA � SSATP � World Bank � MCLI � TAZARA � WBCG � BEIRA CORRIDOR � NACALA CORRIDOR
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VII. ANNEXURES: Annexure 1 : Terms of Reference STUDY FOR THE ESTABLISHMENT OF A PERMANENT REGIONAL CORRIDOR
DEVELOPMENT WORKING GROUP . I. CONTEXT AND RATIONALE The members of the Port Management Association for Eastern and Southern Africa includes the authorities, departments, administrations, companies and organisations in landlocked countries, with interest on easy access to the sea. Ports view themselves as an integral part of the transportation network, and their operational efficiency and effectiveness impacts on the level of trade. Consequently, it has become a common practice to name corridors after ports through which they are served. Transport corridors carry the bulk of long distance traffic within the region and represent essential transport axes for export and import trade in PMAESA region and transit traffic contributes to port activities. Behind the ports is the port hinterland, which is inter-linked by the transit corridors. The level and conditions of the transit corridors affects the size and volume of the hinterland, as well as the transit port activities. In PMAESA region, we have the following corridors: • Djibouti- Ethiopia Corridor • Mombasa -Northern Corridor • Dar Es Salaam - Central Corridor • Dar Es Salaam - TAZARA Corridor • Nacala Corridor • Beira Corridor • Maputo Corridor • Durban Corridor (North-South Corridor) • Trans-Kalahari Corridor • Trans-Caprivi Corridor • Trans-Cunene Corridor Currently, the diversity of corridor development approaches and institutions in a large number of countries in the region focusing either on transport logistics or economic development along corridors or both. The long distances between the various corridors, makes regular consultations with each other time-consuming and costly. Therefore, there is a need to search for the best practices in corridor development and related need to share experiences among corridor development initiatives
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II. OBJECTIVE The objective of the proposed study is to propose a proper mechanism for the operationalisation for the establishment of a permanent Regional Corridor Working Group.
The overall objective of the proposed working Group will be as follows: o contribute to the increased competitiveness of the PMAESA region in the global economy; o Coordinate, collaborative efforts, rather than local, individual and partly competitive efforts; o Promote exchange of experience between corridor authorities , regional economic
organisations and stakeholders ; o Enhanced cooperation and consultation with development partners; o Evaluate progress made, on regular basis, on transit transport facilitation in the region; o Enable dialogue between private and pubic sectors at national and regional levels on
corridors issues ; o The regional working group/mechanism would serve as a resource and know-how centre to
partner with decision makers, industry and development partners. III. GUIDING PRINCIPLE .
o Demand-driven approach – there is need to establish demand among the various corridor
development initiatives for a regional mechanism. With a demand-driven mechanism, member contributions could be introduced, strengthening ownership and sustainability of the mechanism.
o Cost-effectiveness – the mechanism will need to be cost-effective and time-efficient,
breaching the geographic distance between the various corridor development initiatives and facilitating communication and real sharing of ideas.
o Simplicity – the mechanism agreed upon should be simple and low in maintenance.
o International outlook – while best practices will emerge from regional consultation, an
international outlook will be pursued, consulting where appropriate with corridor development initiatives in other continents
o Clear benefits – the participating corridor development initiatives should experience clear
benefits from the agreed mechanism that is to add value to the existing landscape of institutions/mechanisms/programmes that support intra-regional corridor coordination/consultation. Delivery orientation is to feature high in the design of the regional mechanism.
o Accountability – value for money and transparency in the financial and progress reporting on activities will be an important feature of the operational design of the mechanism.
o Sustainability – the mechanism agreed upon will need to be sustainable from a financial
and human resource perspective as well as in relation to the required commitment from the corridor development initiates (time, funds and skills).
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IV. CONSULTANCY ACTIVITIES. Two consultants are required to undertake the following tasks and any other associated works deemed necessary: One Transport Economist (Team Leader) and one Legal Expert with the following tasks:
o Initial contact phase: Promoting the project among partners and beneficiaries; o Interviews – with selected corridor development initiatives; o Consultation with NEPAD, ADB, UNCTAD, USAID Hubs, Sub-Sahara Africa Transport
Policy Programme (SSATP) and the various regional economic integration bodies such as COMESA, SADC, SACU and ECOWAS.
o Analysis and design/formulation – towards optimal operational and institutional set-up for preferred mechanism.
o Driven by a small group of committed and enthusiastic executives/technical staff of the corridor development initiatives, and possible pilot approach could be envisaged.
o Focused agenda of consultation/cooperation/defined scope of work/checking with other regional initiatives to ensure that agendas do not overlap - definite value added of the Regional Corridor Development Working Group.
o Prepare consultative seminar program and supported documents o Organisation of the consultative seminar with all Corridors Authorities and stakeholders.
VI. EXPECTED OUTPUTS o Strengthening of institutional capacities. o Improvement of Corridor frameworks. o Enhancement of operational and commercial opportunities o Cooperation in socio-economic development along the corridors o Regional best practice but also international best practice. o Smart use of existing technology, e.g. internet-based exchange platform / bulletin board
where questions can be posted for discussion among the members and ideas shared without extensive travel.
o From the outset, members will make a contribution – which could be supplemented with funds from our development partners.
VII. TIME FRAME It is expected that the tasks will be completed within a period of 3 calendar months from commencement.