Corredores de África

8/3/2019 Corredores de frica

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241

The Development of Trade

Transit Corridors in Africas

Landlocked Countries7.1 Introduction

Arica comprises 15 landlocked countries that ace very specic challenges. Bot-swana, Burkina Faso, Burundi, Chad, Central Arican Republic, Ethiopia, Lesotho,

Malawi, Mali, the Niger, Rwanda, Swaziland, Uganda, Zambia and Zimbabwe all lackmaritime access and , are isolated rom the world markets and suer high transit costs,which seriously constrain their overall socioeconomic development.

Landlocked developing countries are among the poorest o the developing countries.Moreover, out o 30 o the worlds landlocked developing countries, 16 are classiedas the least developed. ECA research nds that, on average, transport costs or thesecountries are as high as 77 per cent o the value o exports. With the exception oBotswana, Uganda and Swaziland (which are middle-income countries), the coun-tries listed above are classied as least-developed countries (LDC).

Remoteness rom major world markets is the principal reason why many Aricanlandlocked developing countries have been unsuccessul in mitigating the conse-

quences o their geographical handicap. Compared with those in Arica, landlockeddeveloped countries o Europe are surrounded by economically developed markets,and their maritime trade accounts or a relatively small part o their external trade.Tey export mainly high-value-added products, and their distance rom seaports isrelatively short. Landlocked Arican countries depend heavily on the goodwill oneighbouring countries to ully engage in international maritime trade. Additionalborder crossings and long distances rom their markets substantially increase the costo transport.

Most Arican landlocked countries have neighbours that are themselves develop-

ing countries, with similar economic structures and limited resources. Te recordedtrade among these countries is insignicant. In most cases, the transport inrastruc-ture in developing transit countries is weak and oers no advantage to their land-locked neighbours.

Policymakers o landlocked countries should be concerned about the impact o theircountries geographical locations on international trade or several reasons. ECAresearch indicates that distance to maritime posts is correlated to transport costs.

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242 Assessing Regional Integration in Africa (ARIA IV)

High costs erode their competitive edge and trade volume. Te trade-reducing eis strongest or transport-intensive activities that depend on exports or imporintermediate goods or production. According to ECA estimates landlocked deoping countries spend almost two times more o their export earnings on transpand insurance services, on average, than developing countries, and three times m

than developed economies.

Te high transport costs that landlocked developing countries ace are ar mrestrictive barriers to trade than taris. ECA and other studies show that taris Canada, the EU, Japan and the US range between 3 per cent and 7 per cent on gooriginating in most landlocked developing countries. Furthermore, these countron average, pay almost three times more or transport services than those taris.

Compared with their coastal neighbours, landlocked countries also are hampeby isolation rom major markets and the coast, poor inrastructure and inadequpolicies, legal instruments or institutions.

Although the international community has begun to address these developmenchallenges, the income gap between rich and poor countries, instead o decreasihas actually widened. Apart rom those in Europe, most landlocked countries not wealthy. Many o the poorest nations in the world, including those in Arica, landlocked, and their plight requires urgent attention.

Although being landlocked is a major obstacle, it is not destiny. Tere are practsolutions to many o these problems, including comprehensive approaches to tracorridors, regional integration eorts, legal and regulatory reorms and institutio

and administrative overhauls. Te need or cooperation among Arican landlockand transit countries has always been addressed at the continental, sub-regional national levels. Many landlocked countries have entered into bilateral agreeme with their coastal neighbours to acilitate the movement o goods and persUnortunately, these agreements have yet to be implemented.

Tus, the United Nations has embarked on the Almaty Programme o Actionaddress the special needs o landlocked countries, under the Global FrameworkTransit Transport Cooperation for Landlocked and Transit Developing Countries.

Geography is only one part o the story. In international trade, wide-ranging mulateral and regional trade agreements (in economic regions, customs areas, ree trareas or developing trade regions) stipulate the steady lowering o taris and remoo non-tari barriers (NBs). Te international exchange o goods and services athe integration o production and distribution modes through the developmencorridors is more requently encouraged and thereore, it becomes importantimprove transport o goods within, across and through countries sovereign te


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The Development o Trade Transit Corridors in Aricas Landlocked Countries

tories. It is not so much granting countries access to world markets, but deliveringgoods without delays and increased costs that is the problem.

7.2 The United Nations Almaty Programme oAction1

o address the constraints landlocked countries ace, an international ministerialconerence o landlocked and transit developing countries was held in Almaty, Kaza-khstan, rom 25 to 29 August 2003. It was the rst meeting o the internationalcommunity to mobilize international support and address the specic needs o land-locked countries. At its conclusion, the conerence adopted the Almaty MinisterialDeclaration and the Almaty Programme of Action: Addressing the Special Needs ofLandlocked Developing Countries Within a New Global Framework for Transit Trans-

port Cooperation for Landlocked and Transit Developing Countries.

Te Almaty Programme o Action, as it is reerred to, is designed to develop ef-cient transport systems among landlocked and transit developing countries. Teprogramme intends to:

Secure access to and rom the sea by all means o transport or landlockeddeveloping countries according to applicable rules o international laws;

Reduce costs and improve services to increase the comprehensiveness oexports;

Reduce the delivered costs o imports;

Address delays and uncertainties on trade routes;

Develop adequate national networks;

Reduce loss, damage and deterioration en route;

Open the way or export expansion; and

Improve the saety o road transport and security o people along the cor-ridors.

o reach these objectives, the programmehighlighted ve priority areas or land-

locked and transit countries toaddress:

a) Transit policy and regulatory frameworks: Landlocked and transit countriesshould review their regulatory rameworks and establish regional corridors;

1 Tis section drawn rom the report o United Nations Ofce o High Representative or LeastDeveloped, landlocked and Small Inland Countries (UN-OHRLLS) consultant, Ernest Mbuli:

A Review of the Implementation of the Almaty Programme of Action as Contribution to its MidtermReview, June 2008.


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b) Infrastructure development: Landlocked countries should develop rail, roair and pipeline inrastructure projects;

c) Trade and transport facilitation: Landlocked countries should implementinternational conventions and instruments, including those o the Wthat acilitate transit trade;

d) Development assistance: Te international community should provide tenical support, encourage FDI and increase ofcial development assistanand

e) Implementation and review: All parties should improve their monitoringthe implementation o transit instruments and conduct a comprehenreview in due course.

Te Almaty Programme emphasizes that efcient transport systems can be strengened through strong partnerships among landlocked and coastal developing cotries and their partners, including partnerships between public and private sect

In the process, the international community, including nancial and developminstitutions and donor countries, must provide nancial and technical supportlandlocked and transit countries.

Te programme also stresses that the efciency o transport systems will dependthe promotion o an administrative, legal and macroeconomic environment in blandlocked and transit developing countries to draw up eective policies and molize resources. An eective strategy to improve transport systems must be develoat the regional, subregional and bilateral levels to provide signicant economiescale and transport saety. Tis cooperation is in the mutual interest o both la

locked and transit developing countries.

Although the Almaty Programme does not include quantied, time-bound develment targets, it does set benchmarks to determine whether progress is being maTese include:

Establishing or strengthening partnerships between landlocked and tracountries and their development partners at national, bilateral, subregioregional and global levels, dedicated to promoting efcient transit system

Establishing or strengthening partnerships between public and private

tors or the same purpose;Promoting a supportive administrative, legal and macro-economic envirment in landlocked and transit countries at the national and subregiolevel to set policy and mobilize resources;

Establishing mechanisms to ensure that the interests o landlocked and trsit countries are ully addressed when establishing transit transport systeand transport corridors;


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Establishing or strengthening mechanisms or economic cooperation andintegration that protect the interests o all members; and

Ensuring the nancial and technical support o the international community,including nancial and development institutions and donor countries.

In June 2008, Arican landlocked and transit countries met in Addis Ababa, Ethio-pia, to conduct a midterm review o the implementation o the Almaty Programme.Te objectives were to assess progress and determine what should be done to galva-nize global partnerships and urther the programmes goals.

A review o the continents fundamental transit policy issues(Priority 1) indi-cates that technical issues relating to interstate transit acilitation are being addressedat the regional level. Arican RECs, notably, COMESA, EAC, ECCAS, SADC,ECOWAS, UEMOA, CEMAC and IGAD, continue to play an important role inpromoting transport cooperation in Arica. Tey are designing and implementing

the ollowing instruments: coordinated axle load limits; carrier license and transitplates; harmonized road transit charges; regional customs bond; road customs tran-sit declaration documents; third-party insurance plans; interstate road convention;conventions relating to customs transit; and IC initiatives. Progress is slow in someareas but impressive in others.

An integrated transport network is necessary or Aricas inter- and intra-continentaltrade. However, in assessing Priority 2, infrastructure development and mainte-nance, its clear that inadequate inrastructure remains a major obstacle to estab-lishing an efcient transport system between landlocked and transit countries. Teexisting inrastructure is ast deteriorating. Te trans-Arican highway (AH), themain regional transport network on the continent, continues to have numerousmissing links.

Te establishment o road unds in several Arican countries has increased eorts tomaintain existing road inrastructure. Eorts have increased to raise awareness o theimportance o railways and inland waterways as cheaper alternatives to road trans-port. For example, the Central Arican region, which has the weakest inrastructurenetwork on the continent, is scaling up the development o its inland waterwaysthrough the creation o CICOS. Indeed, inland waterways are part o a compre-hensive transport master plan ECCAS has developed or the subregion, with the

technical assistance o ECA.

Continental rail systems are being strengthened, although their density remains low.For instance, Namibia is in the process o constructing a new railway line o about310 km that extends to its border with Angola. Some progress also has been made ininrastructure development in West Arica. Burkina Faso has constructed a numbero dry ports. One was constructed in collaboration with Cte dIvoire and will also


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serve neighbouring Niger. Another proposed dry port by Burkina Faso would lthe country to the seaports o ema and akoradi in Ghana by rail. In Ethiopia, construction o a dry port on the gateway to Djibouti is under way.

With respect to Priority 3, international trade and trade facilitation, several Arilandlocked countries have developed bilateral agreements with coastal neighbourimprove the latter. Tey are also using opportunities within their multilateral agments to enhance these eorts. A number o inrastructure improvements have bcompleted or are planned to link the landlocked countries to coastal outletsthis context, some countries endowed with important natural resource reserves exploring ways to exploit these resources by improving inrastructure and upgradtheir railway systems.

Te review also shows that through existing corridor management mechanismsunder the auspices o the RECs, Arican nations are attempting to implement certtrade acilitation measures. Tese measures include adherence to axle load limits, est

lishment o one-stop border posts, simplication and harmonization o transit charcustoms documentation, procedures and nomenclatures, removal o roadblocks, estlishment o cargo tracking systems, and other measures to reduce transit delays. Silarly, they are establishing surveillance and monitoring mechanisms to observe areduce rent-seeking and other unacceptable practices along transit routes.

In spite o these eorts, the many checkpoints, overloading and insufcient secualong some transit corridors remain causes or concern. Some countries ail to impment transit agreements, which urther hampers regional integration eorts.

Te review o Priority 4, international support measures,revealed that the cstruction and maintenance o efcient transport systems require intensive inusio capital. Tis would mobilize resources on an international scale; provide nanand technical assistance to landlocked and transit countries; promote private-secparticipation in improving inrastructure; and target capacity-building activitTe Programme or Inrastructure Development or Arica (PIDA), the Inrastrture Consortium or Arica (ICA), the EU-Arica Inrastructure and Energy Partnship, the Arica-India Partnership and the Arica-China Partnership, among otinitiatives, provide a platorm to accelerate resource mobilization or nancing instructure projects on the continent.2

2 Te Almaty Programme o Action requires assessing theimplementation and review (Priorito the programme. Accordingly, the 63rdsession o the United Nations General Assembly a midterm review o the plan in October 2008 in New York. Preparatory meetings took placetransit transport inrastructure development in Ouagadougou, Burkina Faso rom 18 to 20 J2007; International rade and rade Facilitation meetings were held in Ulaanbaatar, Mongrom 28-31 August 2007; the Asia/Europe Regional Review was held rom 22-24 April 2008

Arican Review took place rom 17-20 June 2008; and the Latin American Regional Review place 30 June 2008[did it?].


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Te review o the implementation o the Almaty Programme o Action in Aricareveals that a concerted eort is required or the action plan to be implemented suc-cessully. Te ollowing measures should be taken:

Te UN and the AU should strengthen their advocacy o the Almaty Pro-gramme o Action. Tey should sensitize all relevant government ministries

and authorities at the highest levels. Te private sector and civil society shouldalso be engaged.;

Member States should nominate national ocal points or the Almaty Pro-gramme o Action.;

Member States should engage the private sector in ormulating and imple-menting trade and transport acilitation programmes, including the AlmatyProgramme.;

Te United Nations system and donor community should help strengthen theprivate sectors role in implementing the Almaty Programme.;

A regional approach to addressing transport problems in Arica should beencouraged, with RECs playing an important role.; and

Arican countries should develop more economical modes o transport suchas railways and inland waterways.

7.3 Developing trade transit corridors3

o address the special needs o the Arican landlocked nations, certain trade and

transport transit corridors have been establishedroutes linking several economiccentres, countries and ports. Tese corridors, networks o transport acilities andinrastructure, have been established either through existing routes that are acceptedby custom authorities, RECs protocols or protocols involving concerned landlockedand transit countries. A corridors unction is to promote internal and externaltrade using efcient transport and logistics services. By designating a network oroutes with a seaport as a starting or terminal point, corridors also ocus attention onimproving not only routes but also the quality o transport and other logistic servicestherein, where quality is dened in terms o transit time and the cost to ship goodsalong the corridor. Hence, a corridors reliability is measured in terms o transit timeand exibility and the diversity o services oered on multimodal routes. Te list othe main corridors in Arica, which is not exhaustive, is presented in table 7.1.

3 Tis section draws on Institutional Arrangements for Transport Corridor Management in Subsub-Saharan Africa, Subsub-Saharan Arica ransport Policy Program (SSAP) Working Paper No. 86and presentations given to theJoint UNECA-WBCG Workshop and Study Tour on Trade Facilitation:Promotion of Intra-African Trade, Walvis Bay, Namibia, rom 24 26 February 2009.


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Table 7.1

Main corridors in Africa

Corridor Distances Remarks

Dakar Mali 1,250 km Rail

Abidjan Burkina Faso Mali 1,200 km Multimodal options to

Ouagadougou, then roadTema/Takoradi Burkina Faso Mali 1,100 km to

Ouagadougou

Road

Lome Burkina Faso Niger/Mali 200 km Road

Cotonou Niger Burkina Faso Mali 1,000 km up to Niger Multimodal options

Lagos Niger 1,500 km Road

Douala Central Arican Republic

Chad

1,800 km Multimodal

Pointe Noire Central Arican

Republic Chad

1,800 km Rail/river

Lobito DRC Zambia 1,300 km Not currently used

Walvis Bay Zambia-DRC (Trans

Caprivi)

2,100 km to Lusaka Road

Walvis Bay Botswana South Arica

(Trans Kalahari)

1,800 km Road

Durban Zimbabwe Zambia DRC

(North South Corridor)

2,500 km to DRC Multimodal options availab

Maputo South Arica 600 km Multimodal options availab

Beira Zimbabwe Zambia DRC Multimodal options availab

Dar es Salaam Rwanda Burundi

Uganda DRC (Central Corridor)

1,400 km to Kigali,

1,600 km

to Kampala

Multimodal options availab

Mombasa Rwanda DRC (Northern

Corridor)

1,200 km to Kampala,

2,000 km to Bujumbura

Multimodal options availab

Berbera Ethiopia 850 km Road

Djibouti Ethiopia 900 km Multimodal options availab

Assab Ethiopia 900 km Not currently used

Massawa Ethiopia Not currently used

Lagos Niger Mali and Lagos Chad

as part o the CLRT

8,000 km Multimodal options availab

Source: ECA (Africa Action Plan ECA/TRIC/Transport/05/03/ACPL, 2003).

Te ECA has been promoting corridors as a mechanism or addressing bordelays, a prolieration o road checkpoints and other practices that increase costs impede trade. o increase the efciency and cost-eectiveness o the main transpcorridors to landlocked countries, the ECA also has developed mechanisms to motor the perormance o corridors and eliminate physical and non-tari barriers.


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o coordinate the complex transport logistics and challenges, corridor managementinstitutions are being established in Arica through agreements signed by all par-ticipating countries and private-sector stakeholders. Tese institutions oversee allaspects o the transport o goods throughout a given corridor. A review o selectedArican corridor management arrangements are discussed below.

7.3.1 Northern corridor

Te northern corridor was created to link the landlocked countries o Burundi,Democratic Republic o the Congo, Rwanda and Uganda to the Kenyan seaport oMombassa. Te corridor also serves northern anzania, southern Sudan and Ethio-pia. It is governed by a multilateral agreement, the Northern Corridor ransit Agree-ment (NCA), signed by Burundi, Kenya, Rwanda and Uganda in 1985 and by theDemocratic Republic o the Congo in 1987.4

Te agreement promotes the efcient surace movement o goods among the partnerStates. Its main objectives are to:

Promote the efcient use o the northern corridor or the transport o goodsbetween landlocked member States and seaports;;

Grant member States a right o transit through their respective territories;and

Ensure the smooth transportation o goods, avoiding unnecessary delays;minimize customs duties and taxes; and simpliy and harmonize documen-tation and procedures.

Under the NCA, the corridor is managed by the Northern Corridor ransit rans-port Coordination Authority (NCCA), which ensures:

the smooth and sae passage o cargo along the corridor;

low transportation costs;

simplied cargo clearance procedures and customs documentation;

harmonized transport policies;

trade acilitation among member States and with the rest o the world; and

that major transport service providers (including ports, railways and truck-

ers) provide cost-eective services.

Te NCCAs governing structure comprises an authority, executive boardand the secretariat. Te authority, responsible or the policy direction o the

4 Beore the NCA, the corridor was used by the landlocked countries based on bilateral agreementbetween countries.


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NCCA, is made up o a council o ministers responsible or transportatin the member States.

Te executive board is an intergovernmental committee comprising chie executo ministries responsible or transport in the member States. Te board assists authority in ormulating strategies or transport and trade acilitation, inrastructdevelopment, and harmonization o national and regional policies. Te chairperso the authority and the executive board rotate among member States.

Te secretariat, located in Mombasa and headed by an executive secretary, is respsible or coordinating the implementation o the NCA and any other decisionresolutions made by the authority and executive board.

Te NCCA budget is sel-nanced by member States according to the ollowormula: Burundi, 10 per cent; Democratic Republic o the Congo, 20 per ceKenya, 30 per cent; Rwanda, 15 per cent; and Uganda, 25 per cent. Member St

contribute either directly or by a tonnage levy. Te levy is collected at the porentry at Mombasa. In the case o non-member States (the United Republic o annia, the Sudan and Ethiopia) using the corridor, the secretariat proposes a levy toKenya government and the Kenya Ports Authority. Although not ideal, this undmechanism has ensured the viability o the NCCA.

7.3.2 Central corridor

Te central corridor is made up o a multimodal transport network comprising Port o Dar es Salaam; the 1,254 km Dar es SalaamKigoma railway line; the watransport on Lake anganyika to Bujumbura and DRC; and the road network liing Dar es Salaam through Dodoma, Singida, Nzega and Lusahunga to Rwanda Burundi. Te corridor is governed by a multilateral agreement, the Central Corriransit ransport Facilitation Agency (CCFA), which was signed by BurunDemocratic Republic o the Congo, Rwanda, the United Republic o anzania aUganda in 2006. Te main objectives o the CCFA are to:

Ensure that the central corridor is efcient and cost-eective;

Market the corridor with a view to increase its utilization;

Support inrastructure planning and operations along the corridor throu

proactive collection, processing and dissemination o trafc data, analysicompetitive corridors and business inormation;

Promote sustainable maintenance o inrastructure;

Improve customs transit procedures and the implementation o joint ctoms controls and juxtaposed customs ofces at land borders and seapor


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Te governing structure o the CCFA is made up o the ollowing organs: aninterstate council o ministers; an executive board; a stakeholders consultative com-mittee and a permanent secretariat. Te inter-state council o ministers is the highestauthority and is responsible or coordinating CCFAs policy issues. It also acili-tates and eects harmonization o policies agreed to by member States.

Te executive board comprises the permanent secretaries o the ministries responsibleor transport in each o the member countries and a representative rom the privatesector o each country. Te private sector representatives are elected by the industry,the transport operators and the chambers o commerce. Te board is charged withormulating the CCFAs general principles and policies. It also appoints its seniortechnical sta.

Te stakeholders consultative committee includes representatives o key stakeholdersrom the transport industry in corridor countries. Tese stakeholders (public andprivate) include government departments dealing with transport matters, customs,

port authorities, port operators, terminal operators, shippers/manuacturers associa-tions, shipping agencies associations, railway operators, railway holding companies,reight orwarding companies, road transport operators and marine (lake) transportoperators. Te committee is responsible or:

Developing and implementing strategies to provide efcient transportationalong the corridor;

Developing perormance targets or the corridor and monitoring its utiliza-tion and perormance;

Developing and implementing strategies to market the corridor; and

Establishing a stakeholders representative group to oversee its aairs betweenmeetings.5

Te CCFA secretariat, which is headed by an executive secretary and based inDar es Salaam, is responsible or coordinating the implementation o decisions andresolutions resolved by the CCFAs governing bodies. Te Arican DevelopmentBank provided the secretariat with a start-up grant o US$ 1.8 million over threeyears, starting rom January 2007. Te secretariat is developing its own sel-nanc-ing mechanism.

5 Te group comprises 15 stakeholders nominated by the consultative committee, with three romeach corridor state. Te group coordinates corridor strategies and perorms actions necessary toimplement the committees work programme and recommends actions to the committee that willbenet the corridor.


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7.3.3 Dar es Salaam corridor

Te Dar es Salaam corridor connects the port o Dar es Salaam in the United Replic o anzania to Lusaka in Zambia and Lilongwe in Malawi. It is made up omultimodal network o the port o Dar es Salaam, the AZARA railway line and

ANZAM highway.

Te Dar es Salaam corridor coordinating committee has its own constitution ais made up o key stakeholders rom the three participating countries, Malawi, United Republic o anzania and Zambia. Like the other corridor committees, one was established to promote efcient and competitive trade logistics along corridor or Malawi and Zambia. Te committee includes representatives rom ministries o transport, users and providers o transport services and the privsector rom each o the three countries involved. Te committee acts as a orumthe main users o the corridor to nd solutions to the challenges aced on the c

ridor.6

Te governance structure is composed o the coordinating, executive and natiocorridor committees. Te corridor coordinating committee ensures that the corriis efcient and cost eective and has two working groups, one or transport and other or customs. Members are appointed rom the coordinating committee.

Te executive committee consists o a chair, a vice-chair o the corridor coordining committee and at least three but not more than ve members nominated by corridor committee. Tis committee implements decisions taken by the corri

coordinating committee.

Each o the three partner nations has established national corridor committwhich give national support to the corridor activities. Te national committeescomposed o member States representatives on the coordinating committee. Tministries responsible or transport and the chambers o commerce provide leadship in each o the countries. However, as expected, in the United Republic o zania, the anzania Ports Authority (PA) plays an important role.

A corridor secretariat, to be based in Dar es Salaam, has yet to be established. In interim, PA provides part-time secretariat services. Te absence o a ull-time setariat impinges on the smooth implementation o the committees activities. Terno sel-nancing mechanism at the moment. However, the USAID Southern Atrade hub has been unding some o the corridors activities, and the committeconsidering various nancing options.

6 Te management o the Dar es Salaam corridor began in the 1960s, to oversee the export o mrom Zambia.


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7.3.4 Walvis Bay corridor

Te Walvis Bay corridor links the landlocked nations o Botswana, Zambia andZimbabwe to the Walvis Bay Port in Namibia and to markets in the hinterland othe DRC and South Arica (the Gauteng region). Te Corridor is thereore made up

o three trade-and-transit corridors linking the Port o Walvis Bay to neighbouringcountries: Te rans-Kalahari corridor (KC); rans-Caprivi corridor (CC); andrans-Cunene corridor (CuC).

Te KC is a network o highways connecting Walvis Bay to Johannesburg andPretoria through Botswana. Te CC is a network that starts o the rans-Kala-hari highway at Karibib, traversing northeast through Grootontein to the Angolanborder at Rundu, and then eastwards through the Caprivi to Katima Mulilo, where abridge has been constructed to cross the Zambezi River rom Zambia into DRC. TeCuC extends rom Otavi to Lubango in Angola via Oshikango in Namibia. Te

three corridors are partially supported in the Namibian territory by the Namibianrail network.

Te secretariat o the Walvis Bay Corridor is the Walvis Bay Corridor Group(WBCG), which was established in 2000 as a public-private partnership to coor-dinate and integrate the various stakeholders along the Walvis Bay corridor. TeWBCG is a non-prot association governed by a board o directors. Its main unc-tion is to increase the utilization o the Walvis Bay corridor and maximize the owo trafc along corridor routes. Te WCGB expects to:

Engage in marketing activities ocusing on business development andattracting business rom traditional routes;

Facilitate the provision o relevant enabling rameworks; and

Leading in capacity -building exercises in the transport and transport corri-dor sector. Te anticipated results are to the benet o Corridor stakeholdersand the SADC region.

Te WBCG is made up o representatives o the ministry o works, transport andcommunication, theNamibia department o customs, the ministry o nance, theoshore development company (investment centre) o the ministry o trade and

industry, the Namibian Ports Authority, ransNamib Holdings Ltd., the municipal-ity o Walvis Bay and a number o private sector groups, including the NamibianAssociation o Freight Forwarders, the Namibian Road Carriers Association and theWalvis Bay Port Users Association.


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Te WBCG secretariat, based in Windhoek, concentrates on business developmtransit acilitation, inrastructure development, capacity-building and support pgrammes or the members, such as those in the area o HIV/AIDS.

o eectively address the challenges o the Walvis Bay corridor, a rans-Kalahari cridor management committee (KCMC) has been established to acilitate insttional cooperation among Namibia, Botswana and South Arica, the three countusing the rans-Kalahari corridor. Tis cooperative arrangement was ormalized2003 with a tri-lateral agreement signed by the governments o Botswana, Namand South Arica. Under the agreement, there is a memorandum o understand(MoU) that gives legal status to KCMC. Te secretariat o the KCMC is WBCG.7

Te KCMC is composed o representatives o transport operators, inrastructand transport authorities, port and customs authorities, reight orwarders and obusiness and agencies interested in the corridor rom the partner countries. Its r

is to:

Simpliy and harmonize customs procedures, adopt a common transit pcedure and promote the establishment o joint customs-border posts;

Ensure that revenue accruing rom levies to road users is used or the matenance and operation o roads.;

Adopt and implement harmonized standards or vehicle quality, includroad-worthiness, road signage and axle loads.; and

Promote trafc saety by encouraging law enorcement and training a

testing o drivers in partner countries.

Te MoU establishing the KCMC calls or the establishment o an operaticommittee and working groups. Te committee is made up o the chair and vchair o the KCMC and our to ve representatives rom the private and pubsectors. Committee unctions and activities are directed by the KCMC.

Partner countries also have established national corridor committees to ensure tKCMC programmes and decisions are implemented and monitored at the natiolevels. Te national corridor committees are coordinated by one representative rthe government and the private sector and work closely with the WBCG secretaand government bodies to push or implementation o the KCMC programm

Te WBCG secretariat is nanced through contributions rom Walvis Bay poperators and NAMPOR, the port authority. In the case o the KCMC, undis done through equal contributions by the signatory states. However, the KCM

7 A similar corridor management committee is being considered by the WCGB or the rans-CapCorridor (Walvis BayNdolaLubumbashi corridor committee) and the ransCunene corrid


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is considering replacing the current nancing arrangements with a tonnage levysystem to charge users o the corridor.

7.3.5 Maputo Corridor

Te Maputo development corridor (MDC) was established in 1996. It links the Porto Maputo in Mozambique to Gauteng, the industrial heartland o South Arica.MDC, which is one o the successul examples o the NEPAD Spatial Develop-ment Initiatives (SDI), is a multimodal transport system comprising a toll road, arailway line and a gas pipeline. Te corridor was initially managed by the MaputoCorridor Company (MCC). However, in 2004, due to its ineectiveness, the MCCwas replaced by the Maputo Corridor Logistics Initiative (MCLI). Te MCLI wasestablished as a publicprivate sector partnership to create greater awareness on andimproved use o the corridor. Trough a MoU, the South Arican Department oransport (DO) provides support to the MCLI. Te membership o the MCLI is

drawn rom stakeholders across South Arica, Mozambique and Swaziland.

o create a avourable climate or investment along the Maputo corridor, the MCLIsobjectives are:

o strengthen partnership with the private sector, the inrastructure net-work along the corridor, including road and rail links between South Aricaand Maputo and the border post between the two neighbours and MaputoPort;

o increase investments along the corridor;

o increase social development and employment opportunities along the

corridor and its surrounding areas;

o coordinate the views o the investors, service providers and users to pro-mote development and change to make the MDC the rst choice or theMaputo corridor importers and exporters alike; and

o inorm the market about the corridor and promote the strategic benetsand opportunities it oers.

Te MCLIs key areas o ocus were identied early on: lack o sufcient rail capacityand border-post constraints, especially the extension o the commercial cargo clear-

ing time to eventually a 24-hour one-stop border post. Te MCLI plans to:

Coordinate initiatives and engage the relevant authorities in planning serv-ice and inrastructure improvements;

Organize events, act-nding missions, orums and meetings;

Communicate progress and developments through electronic newslettersand the media;


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Promote positive attitudes and perceptions towards the MDC and the lotical benets it oers;

Connect users with service providers and provide inormation on all aspo how to use and benet rom the corridor; and

Develop a Web site, giving exposure to MCLI members and providin

platorm or all public communication.

Te MCLIs governing structure is a board o directors and an executive commitTe board comprises nine executive directors and seven non-executive directrepresenting the private sector, businesses, investment agencies and key stakeholdrom the partner nations. Te boards main unctions are to provide policy directand monitor the MCLIs operating structure, nances and administration. Te exutive committee, which comprises our members rom the board, is largely respoble or the nancial management o the company and directing and monitoring chie executive ofcer.

Te MCLIs eorts have led to improved operational efciencies at border postsgovernments o partner countries to extend commercial cargo clearing hours. Ialso recommending a one-stop border post to acilitate the efcient ow o goods apeople. Te MCLI is also pushing or an increase in the capacity and efciency o operation o rail along the corridor and improvements in shipping operations.

Te MCLI is unded through an annual membership ee paid by partner countrIn addition, the South Arican National DO makes nancial contributions. Hever, in some cases the activities are unded through the imposition o ees.

7.3.6 AbidjanLagos corridor

Tis corridor connects ve countriesCte dIvoire, Ghana, ogo, Benin aNigeriathrough the port cities o Abidjan, Accra, Lome, Cotonou and Lagand is thereore one o the busiest corridors in West Arica. However, its purpis geared more towards the minimization o the transmission o HIV/AIDS amotruck drivers, sex workers and communities along transport corridors than tracilitation and development. Tis is important, because the transmission o diseis high along transport corridors. Hence, such interventions oten require a regio

approach.

Te corridor was created in 2002 with a grant rom the World Bank to the ve cotries as a joint HIV/AIDS project. Te project has the ollowing ve component

Developing a ramework or the coordinated implementation o HIV/AIpolicies in the corridor countries;


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Carrying out HIV/AIDS prevention programmes;

Providing improved care and support services;

Building capacity o the key service providers; and

Addressing constraints to the smooth and timely ows o passengers andreight trafc in the corridor.

Tis corridor, which takes a regional approach to addressing communicable diseasessuch as HIV/AIDs, has the ollowing governance structure: a governing body; anexecutive secretariat; a management consulting rm; an intercountry advisory com-mittee; a sub-project technical evaluation team; and community-based border HIV/AIDS committees.

Te governing body was established by a declaration by the partner countries veheads o State. Hence, its membership is composed o nominated representatives oall ve countries, nominated by the highest political ofces o the member countries.

Te body is responsible or ormulating and implementing multi-country HIV/AIDS strategies and programmes along the corridor.

Te corridors operations are run by an executive secretariat headed by an execu-tive secretary. Te secretariat is responsible or overall coordination and manage-ment; the preparation o quarterly progress reports; the coordination o appraisalsand approval o subprojects; and project monitoring and evaluations. Te executivesecretary, who is responsible or the daily coordination and acilitation o the project,reports to the president o the governing body. Te secretariat is manned by a smallsta made up o a transport specialist, an ofce assistant and a proessional translator

or the two ofcial languages (French and English). Financial management and pro-curement contract reviews, or which the secretariat is also responsible, are handledby a management consulting rm. Tis rm is responsible or the nancial manage-ment and disbursement o IDA unds; procurement management; monitoring andevaluation; and participation in appraisal o community subprojects. Te secretariatmay also create a subprojects technical evaluation team to review and approve sub-projects submitted to the executive secretariat. Te team can invite any technicalexperts that may be required or it to unction eectively, depending on the natureo projects under review.

Te inter-country advisory committee, which reports to the governing body, includesmembers selected by the ve countries. It is established by the governing body. Mem-bers belong to the public and private sectors; about hal o the members are privatesector. Te committee is responsible or providing technical and policy advice to thegoverning body; reviewing progress reports; and identiying implementation issuesand recommending solutions.


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Te community-based border HIV/AIDS committees draw their membership rlocal civil society and the public sector. Tey have been ormed at border areas althe corridor to coordinate the local response to HIV/AIDS. Te Abidjan-Lagos cridor organization (ALCO), based in Benin, also uses several intermediary civil soety organizations to establish community-based border HIV/AIDS committees a

gives the communities support in subproject planning and implementation.

Te Abidjan-Lagos HIV/AIDS project was initially unded by the World Bank throgrants to the partner countries. Bilateral and multilateral development agencies expected to continue to nance HIV/AIDS activities along the corridor beyond projects our-year implementation period. Member countries, who also made ncial contributions to cover portions o the operating and overhead costs, are exploralternative unding ormulas ater the World Bank unding is exhausted.

A number o corridors have been identied by RECs but they are not currently optional. For example, in December 2009 the West Arican Economic and Monet

Union (UEMOA) adopted a decision on the creation and management o a numbecorridors in their sub-region. Similarly, COMESA, EAC and SADC, with the suppo development partners, have launched the North-South corridor (see box 7.1).

Box 7.1

North-South Corridor

The North-South Corridor Programme is an initiative undertaken by the three RECs o Easterand Southern Arica (COMESA, EAC and SADC) to acilitate cross-border trade between thdierent member States. This project represents the frst major project under the newly ormetripartite task orce and another step towards the constitution o the great ree trade area, whic

will include 26 countries members.

This corridor, which traverses eight countries o these subregions, covers two existincorridors, Durban corridor and Dar es Salaam corridor, which link the port o Durban and otherin Southern Arica to the East Arican port o Dar es Salaam.

The North-South Corridor Conerence held in Lusaka, Zambia, on 6 and 7 April 2009 anattended by several heads o state, highlighted the need to improve trade conditions along thcorridor. The fnancial support o US$ 1.2 billion has been pledged by donors or the improvement o the road, rail and port inrastructure.

The North-South Corridor Programme is intended to upgrade and maintain roads, establish a system to control axle loads more efciently, reduce border post delays and rehabilita

rail tracks along the corridor. It will also improve the power supply and transmission in thregion and establish links between Southern and East Arican power pool member countries

This programme, which has a holistic and subregional approach, is a method to acilitatcross-border trade, reduce transport delays and costs, promote transit and transport regulations and help landlocked access international markets more easily. It is also intended tpromote public- and private-sector investment. When implemented, it will give to operatomultiple choices o road and rail networks.


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The ollowing outcomes are expected:

A reduction o transport costs and transit times or trafc between Dar es Salaam andLusaka o about 25 per cent;

A 10 per cent reduction in the travel time by road between Lusaka and Durban;

Approximately a 20 per cent reduction in the transit times at the Chirundu border postbetween Zambia and Zimbabwe; and

The reduction o transit costs and times or trafc between East Arica and SouthernArica and an increase in hydroelectric supply in the region.

7.3.8 Measuring a corridors performance

Te previous sections argue that corridor efciency is critical to the competitivenesso the Arican economies, particularly to those o countries that are landlocked. Tequestion, then, is how one determines a corridors efciency and perormance. Whatperormance indicators should be used?

Perormance indicators are generally considered extremely important or guidingthe secretariats in their planning. Appropriate indicators can support, guide andjustiy their decisions. Tey also contribute to good governance, accountability andtransparency, which are important ingredients to success. Indicators thereore mustbe measurable, efcient, able to be orecast and easy to understand.

Stakeholders participate in the establishment o corridor management groups largelyto reap potential benets. Te objective o establishing the corridor structures is toenhance their operational efciency and reduce the cost o doing business. Conse-quently, corridors enhance the acilitation o trade, which in turn contributes toeconomic efciency o the participating countries.

As argued above, corridors involve stakeholders who are interested in dierent per-ormance actors. Each stakeholder measures the perormance o a corridor by the useo the corridor he or she is able to reduce cost and make prots. Te main stakehold-ers o a corridor are the shippers, transporters, clearing agents, customs authorities,

port and road authorities and the general population. Te primary objectives andexpectations o each category o stakeholders are summarized in table 7.2, below.


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Table 7.2

Corridor stakeholders and expectations

Stakeholder Expectations

Shippers Minimum time used to move goods rom origin to destination

and at minimum cost

Reduced shipping costs

Sae and secured transportation and handling process

Transporters Reduced turnaround time

Minimized opportunity cost arising rom physical and non-

physical barriers

Improved inrastructure

Clearing & orwarding agencies Reduced operating costs

Increased volumes o cargo handled

Fast clearance process

Reduced cross-border charges

Harmonized documentation

Customs authorities Increased customs duty revenues

Harmonized customs documents

Improved automationReduced rent-seeking activities

Port authorities Increased port revenues

Improved cargo handling

Modernized port equipment

Increased port utilization

Enhanced port competitiveness

Road authorities Asset preservation through axle-load control

Inrastructure cost recovery

Improved road maintenance

Improved road saety

Security services Zero-tolerance or movement o illegal consignments

Zero-tolerance or criminal activities

Reduced rent-seeking activitiesImproved management o the movement o plants and anima

Service providers Increased trac fows and customers

Consumers Reduction in cost o goods

High-quality goods

Health authorities Control and management o diseases and inections associat

with mobile populations (HIV/AIDS, sexually transmitted inec-

tions and others)

RECs, IGOs, member States and

partners

Increased trade-led economic growth

Strengthened regional integration

Reduced poverty levels

Enhanced trade acilitation

Source: ECA and Institutional Arrangements for Transport Corridor Management in Subsub-Saharan Africa,

Saharan Africa Transport Policy Programme (SSATP) Working Paper No. 86.

Te perormance o corridors is assessed at three levels: inrastructure, the quao services and the shipment o goods. Te assessment o inrastructure involves quality, physical capacity and levels o utilization o the inrastructure. It is partilarly useul when considering investment to increase the capacity o corridor-sys


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components. Delays and the cost o transport services are the major considerationswhen considering the quality o services provided along a corridor.

Te quality o services are very important in assessing the perormance and eective-ness o corridor groups. Measurement indicators include time and cost. Perormancecan be improved by reducing these actors at specic points or along given linkswithin the corridor. A corridors reliability, which is measured in terms o variationin transit time or a specic combination o services and between given points, is alsoa perormance indicator. Te greater the variation, the harder it is to predict transittimes and or users to coordinate related unctions. Tus, some o the key perorm-ance indicators or corridors include trafc volumes; transport cost; turnaround timeor trucks and wagons; port dwell time; border-post transit times; and variation inall the above times.

7.3.9 Corridor review results

Some lessons that have emerged rom this review o corridor management arrange-ments are as ollows:

Corridors are important or addressing the special needs o landlockedcountries.;

Corridor management arrangements are designed to advocate moderniza-tion o border agencies, equipment, operations and in particular, customsadministrations and inrastructure development;

Corridors ocus on efciency and trade acilitation through measures suchas institutional reorm, simpliying procedures, building capacity and mobi-lizing investment to upgrade inormation technology and border-crossingacilities.;

All stakeholders, private and public, involved in the acilitation o trademust be encouraged to participate in corridor development.;

Corridor secretariats may orm working groups comprising all stakeholdersto meet on an ad-hoc basis to address specic issues and should cease to existonce the objectives have been met;.

Corridor issues should be addressed through the interactions between pri-

vate and public groups.;Ownership and power sharing should take place through a legal rameworko organizational design and operating procedures.;

A corridors organizational structure should ensure ull public-private inter-actions at all levels.; and


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Most existing corridors have been created with donor unding and thnancial sustainability remains a challenge. It is thereore important talternative sources o unding are sought.

As observed, the management o a corridor has three tiers. Te institutional hiechy should be made up o a group o stakeholders, a core group and a secretariat. Tstakeholder group comprises representatives o customs, immigration, transport alogistics operators, rail and road agencies, port authorities, transport regulation road saety agencies, ministries o health or each State and regional institutions.

Te second tier, or core group, should consist o an executive group comprismembers nominated to represent specic constituencies. Te core group shoestablish working groups to address specic issues. A secretariat, which is the mcoordinating and technical body, should be created to support the stakeholder groand the core group.

Te longevity o all corridors depends on the sustainability o the unding o the cridor institution. Funding arrangements or existing corridor groups include mebership ees, government contributions, trafc-based usage ees and donor suppA trafc-based usage ee arrangement is the most appropriate unding mechaniIt is important that the initial operation o the corridor begin with membership ctributions or donor unding. Once the institution is up and running, a sustainaunding mechanism should be applied.

A legal instrument should back the unding mechanism o a corridor institutiOnce established, the group institution could develop an action plan and del

results enabling it to introduce a usage-based unding mechanism such as a tonnlevy. A usage ee would keep pressure on the core group and the secretariat to delitangible benets or corridor stakeholders to justiy its unding.

7.4 Conclusions and recommendations

In this chapter we have demonstrated that geography is not destiny. It has bargued that being landlocked inuences economic, inrastructure and political d

sions. But being geographically isolated should not be an excuse or poor economsocial and political development. Remote island countries like Australia and NZealand have become successul traders, and European landlocked countries sas Switzerland have coped with and indeed learned to exploit their geographhandicap.


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Te constraints landlocked countries ace can be addressed, in the long run, withthe right mix o country- or region-specic policies, including sound macroeco-nomic and trade policies such as reducing red tape in reight operations and speed-ing up customs clearance procedures. As discussed, governments must also create anenvironment to acilitate trade. Knowledge and inormation concerning these issues

must be shared among landlocked and transit countries and the private operators.

Because landlocked countries act as transit countries or their neighbours, they mustmobilize enough resources to support a transit inrastructure. Being a transit countrypotentially opens up new opportunities or them. Te development o a modern up-to-date service inrastructure or transiting cars, trucks, trains, airplanes or ships addsvalue to the process. Being a transit country also creates jobs and a logistics economy,with distribution centres, warehouses and technical and processing acilities.

Although landlocked countries in Europe ace similar constraints, the challengesposed to Arican countries are more ormidable. Te Almaty Programme o Action

was established specically to address these exceptional needs. Te ollowing sectionprovides suggestions or tackling the challenges.

7.4.1 Trade policy reforms

Landlocked countries must ocus on the composition and direction o their oreigntrade. In developing export-driven sectors, they should be mindul o transportationcosts i they are distant rom major markets and have little access to the sea via viabletransit routes. Reliability and speedy response are the required assets or export-

oriented growth.

Landlocked countries should consider developing sectors that are either high-valueor high-value-added and depend less on expensive imports. Tey should also con-sider developing a high-level logistics industry that could provide services to transit-ing operators, which in turn could increase the value to transit operations and helpnew sectors to ourish.

Landlocked and transit countries should develop coherent and comprehensive trans-port policies to support the transit corridors required to acilitate trade. Te coun-tries should redouble their eorts to tear down all non-physical barriers to ensurethat their goods reach regional and world markets.


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7.4.2 Reducing costs

Landlocked countries should apply measures to avoid complicated and lengthy ctoms clearance procedures, poorly coordinated control services, high ees, red tainadequate capacities, poor inrastructure and poor packaging or loading techno

gies. Such measures would reduce the costs o shipping, reight handling, transit customs. Tese are under the control o policymakers in a landlocked country. Gernments should create a climate o condence, stability and security by eradicatcorruption, raud and other rent-seeking activities to reduce trade costs. In additigovernments o landlocked and transit countries should reorm regulations and pcedures to meet regional or international standards and adhere to and implementinternational conventions on trade and transit acilitation.

Improved technologies reduce port and customs delays, which reduces shippcosts. Moreover, containerization and the resulting ease o moving goods rom sh

to trucks or trains also helps reduce port costs and lead time in countries with sacilities. Landlocked and transit countries should be encouraged to use IC abetter port inrastructure to avoid shipping delays.

7.4.3 Infrastructure development

Landlocked and transit countries must build new roads and railway lines aupgrade the inrastructure o their ports. Policymakers should ensure that regumaintenance o inrastructure takes place, and that transport supply capacities

improved. Tis would strengthen acility management systems through inormattechnology at the ports and upgrading o railway lines, rolling stock, ships, truand ports and handling acilities.

Developing proper inrastructure requires substantial nancial resources, whichusually obtained rom bilateral or multilateral donor agencies. But such resourceslimited, time-bound and insufcient to nance inrastructure development overlong term. Tus, countries must nd alternative nancing mechanisms to suppsuch development. Such alternatives could include vehicle charges, road taxes, petaxes and road charges. Receipts o these charges must go directly towards r

construction and maintenanceand not towards administrative overhead. Pooregional unds rom public and private sources could also be considered to suppinrastructure development.


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7.4.4 Regional and subregional coordination

Landlocked countries must establish strong bilateral and multilateral agreementswith their neighbouring countries. Tey can implement these agreements by ingest-ablizing trade-transit corridor management structures. Teir special needs can be

addressed through regional and international cooperation. Consultations or allianceswith neighbouring landlocked or transit countries can help to share experiences,economize on costs and increase bargaining powers. International inrastructure ortransport agreements contribute to acilitating transit procedures.

7.4.5 Institutional framework and capacity-building

Landlocked and transit countries must reorm their public administrations toimprove the perormance o agencies involved in trade acilitation, developing, in

particular, the single-window concept and streamlining one-stop-shops or importand export clearance. Te entire institutional ramework o stakeholders should bestrengthened. Regional harmonized transit procedures should be established andimplemented and trade acilitation measures put in place. Facilitating trade in land-locked countries would require institutional capacity-building, educating govern-mental sta private operators and eliciting the participation o the business com-munity. Furthermore, certain institutional and organizational structures have to bein place to enorce regulations, agreements and conventions.

7.4.6 Public-private cooperation and partnerships

Te private sector must be encouraged to participate in managing corridor and othertrade acilitation bodies. Given that external bilateral or multilateral resources arelimited, the private sector should be urged to invest in the development o inra-structure and in acility management. A ruitul dialogue between private-sector rep-resentatives and policymakers will better dene the markets real needs and encour-age viable and sustainable solutions. Private operators may also be better equipped tomanage acilities that are still State-owned and can play a substantial role in nanc-ing projects or in entering concession agreements.

Te public sector still has a role to play in any PPP arrangement and it acts as a super-visory body over all trade acilitation projects. It must also provide an adequate andcoherent ramework policy to upgrade the proessional skills o the private sector inlandlocked and transit countries. Tus, both private-sector and public-sector groupshave important roles to play in addressing the special needs o landlocked coun-tries.


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