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Issues on West African transport corridors

Niels Rasmussen, Director of Transport, USAID West Africa Trade Hub Abidjan, May 9 2012
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The Trade Hubs work in Transport: Road Governance & Transport costs

Positive change does happen


In ports and terminals Road governance reduction in bribes
Evolution of indicators per trip - Togo
Number of 13 controls
11,985 13 11,979 11,735 11,605 121 11,454

Togo Tema port processing time


2008: 10.7 days 2010: 6.9 days
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13 12

12,712

Delays (min) Bribes (CFA)


89

10 8 82 8,625 82 6,653 7 6,000

T2-09

T3-09

T4-09

T1-10

T2-10

T3-10

T4-10

T1-11

T2-11

T3-11

T4-11

Ouagarinter processing time:


2008: 6.0 days 2010: 2.4 days

Cte dIvoire
Evolution of indicators per trip - Cote d'Ivoire
93,285 83,110 91,379

Bribes (CFA)
58,099 57,178

32 27 234

Number of controls
282

38 319 13 100 18

31 000 18 139 101

Delays (min)
T2-10 T3-10 T4-10 T1-11 T2-11

T1-10

T3-11

T4-11

But, many problems persist

Where are the issues imports?


Distribution of cost and time for an average truckload on the LomOuaga corridor
Transport leg Costs distribution % Time distribution %

Imports (21 tonnes) Lom port Trucking LomOuagadougou Ouagarinter Total Total average cost & time per truckload

Of Total T&L which Standard costs informal Costs 20 39 44 57 23 100% USD 5,155 20 41 100% USD 348 43 13 100% 8.4 days

Delays 66 13 21 100% 6.3 days

A surprise: The distribution of formal and informal costs

Bribes at road barriers represent only 14% of informal payments Most barriers to trade are perfectly legal !
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Price of transport: Containers versus breakbulk & bulk imports

Advantages of containerization:
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Conclusions Important reforms (EN)


Liberalize the West Africa trucking market Improve conditions for fleet renewal Create an electronic freight market Promote the formalization of the trucking industry

Create a single market within ECOWAS Eliminate corruption and fixed road barriers Implement ECOWAS and UEMOA axle load regulations Promote the use of containers Abolish customs convoys and escorts Give preferential treatment to Approved Economic Operators
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Possible savings
If inefficient procedures and other barriers to transport and trade were eliminated on the Lom-Ouaga corridor the following gains could be: Imports Reduction in the cost of transport: USD 111/tonne (41%) Savings of up to USD 71 millions/year Exports Reduction in the cost of transport : USD 64/tonne (46%) Savings of up to USD 10 millions/year

THANK YOU FOR YOUR ATTENTION MERCI DE VOTRE ATTENTION


Niels Rasmussen, Transport Director
nrasmussen@watradehub.com Please visit our websites / svp visitez nos sites web: www.watradehub.com www.borderlesswa.com
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