INFRASTRUCTURE AND TRANSPORT
EVIDENCE-INSIGHTS-POLICY agriculture output elasticity with respect to truck transportation due to a slight to transportation costs to the port (port increase of rail tari s. WIDER ECONOMIC BENEFIT ASSESSMENT OF connectivity) was estimated at -0.28; if the transportation costs to the port are Tanzania’s rail transport faces intense RAILWAY REHABILITATION IN EAST AFRICA increased by 10 percent, the agricultural competition against truck transportation. production will decrease by 2.8 percent. Rail transport generally has the The authors also found that fertilizer advantage for large-volume long-haul CONTEXT Corridor project connecting inland cities input was a major channel impacting freight operations. However, there is little While Africa has railway assets these and neighboring countries to the regional agricultural production by port evidence of this in Africa. Using the same are more than 100 years old and hub port of Dar es Salaam. connectivity. Rising transport costs firm-level data, Iimi, Humphreys, and Mchomvu (2017b) examined shippers’ require substantial rehabilitation. reduces fertilizer imports, which results The series of this research estimate the modal choice in Tanzania. The authors In Ethiopia, the service quality of the impact of railway rehabilitation in the reduction of agricultural production. found that prices, shipping distance, and Ethio-Djibouti line, which connects projects in Ethiopia and Tanzania on freight volumes were important Ethiopia’s capital city of Addis Ababa to agricultural production, firm Rail transport and firm productivity in determinants of firms’ modal choices. the regional hub port of Djibouti, productivity, and a firm’s modal Tanzania When rail prices are higher, firms are less deteriorated dramatically in the 2000s choices. These findings provide Iimi, Humphreys, and Mchomvu (2017a) likely to choose rail transportation. In due to poor maintenance. By 2009 the evidences to help policymakers to recasts light on the impact of rail contrast, firms are more likely to use rail railway operations had completely shut facilitate cost-e ective investment transportation on firm productivity, using transport as the shipping distance gets down. In Tanzania, as railway operations decisions. The results of Tanzanian micro data collected by the authors in longer and the volume of freight gets significantly deteriorated, firms have railways can in particular serve as a Tanzania. The dataset covers about 500 larger. Therefore, rail freight has a cost switched from freight rail to truck baseline survey of the ongoing railway firms in the major urban areas of 18 advantage for long-haul shipments. The transportation, even though freight rail rehabilitation project supported by the regions in Tanzania. The authors found authors also found that rail has a price advantage. As a result, freight World Bank. that the use of freight rail significantly transportation was often used for volume by Tanzania Railways Limited has reduced firms’ operational costs. international trading purposes, whereas dropped to 13 percent of its peak demand Port rail connectivity and agricultural Transportation costs were significantly truck transportation was used for in the early 2000s. production in Ethiopia lower for rail users than for truck users. domestic transaction. This is plausible Using large household data comprising because the majority of railways To revive African railways and to improve more than 190,000 households for the However, rail users hold more inventories, its service quality, many African which caused a negative impact on firm concentrate on connecting inland cities past eight years in Ethiopia, Iimi et al. and the port of Dar es Salaam. In governments have initiated railway (2017) estimated the impacts of rail productivity. They also found a relatively rehabilitation projects in recent years. higher price elasticity of firms’ demand contrast, truck transportation has access transport on agricultural production. The to areas all over the country, and thus, Ethiopian Railways Corporation began authors found that the shutdown of the for rail fright, estimated at -1.01. This construction of a 5,000 km railway to implies severe competition between has an advantage for domestic Ethio-Djibouti line increased transactions. connect key cities and neighboring transportation costs to the port of railways and trucks; firms would switch countries; this was launched in 2016. Djibouti and significantly reduced Tanzania is implementing a Central agriculture production in Ethiopia. The agriculture output elasticity with respect to truck transportation due to a slight to transportation costs to the port (port increase of rail tari s. connectivity) was estimated at -0.28; if the transportation costs to the port are Tanzania’s rail transport faces intense increased by 10 percent, the agricultural competition against truck transportation. production will decrease by 2.8 percent. Rail transport generally has the The authors also found that fertilizer advantage for large-volume long-haul CONTEXT Corridor project connecting inland cities input was a major channel impacting freight operations. However, there is little While Africa has railway assets these and neighboring countries to the regional agricultural production by port evidence of this in Africa. Using the same are more than 100 years old and hub port of Dar es Salaam. connectivity. Rising transport costs firm-level data, Iimi, Humphreys, and Mchomvu (2017b) examined shippers’ require substantial rehabilitation. reduces fertilizer imports, which results The series of this research estimate the modal choice in Tanzania. The authors In Ethiopia, the service quality of the impact of railway rehabilitation in the reduction of agricultural production. found that prices, shipping distance, and Ethio-Djibouti line, which connects projects in Ethiopia and Tanzania on freight volumes were important Ethiopia’s capital city of Addis Ababa to agricultural production, firm Rail transport and firm productivity in determinants of firms’ modal choices. the regional hub port of Djibouti, productivity, and a firm’s modal Tanzania When rail prices are higher, firms are less deteriorated dramatically in the 2000s choices. These findings provide Iimi, Humphreys, and Mchomvu (2017a) likely to choose rail transportation. In due to poor maintenance. By 2009 the evidences to help policymakers to recasts light on the impact of rail contrast, firms are more likely to use rail railway operations had completely shut facilitate cost-e ective investment transportation on firm productivity, using transport as the shipping distance gets down. In Tanzania, as railway operations decisions. The results of Tanzanian micro data collected by the authors in longer and the volume of freight gets significantly deteriorated, firms have railways can in particular serve as a Tanzania. The dataset covers about 500 larger. Therefore, rail freight has a cost switched from freight rail to truck baseline survey of the ongoing railway firms in the major urban areas of 18 advantage for long-haul shipments. The transportation, even though freight rail rehabilitation project supported by the regions in Tanzania. The authors found authors also found that rail has a price advantage. As a result, freight World Bank. that the use of freight rail significantly transportation was often used for volume by Tanzania Railways Limited has reduced firms’ operational costs. international trading purposes, whereas dropped to 13 percent of its peak demand Port rail connectivity and agricultural Transportation costs were significantly truck transportation was used for in the early 2000s. production in Ethiopia lower for rail users than for truck users. domestic transaction. This is plausible Using large household data comprising because the majority of railways To revive African railways and to improve more than 190,000 households for the However, rail users hold more inventories, its service quality, many African which caused a negative impact on firm concentrate on connecting inland cities past eight years in Ethiopia, Iimi et al. and the port of Dar es Salaam. In governments have initiated railway (2017) estimated the impacts of rail productivity. They also found a relatively rehabilitation projects in recent years. higher price elasticity of firms’ demand contrast, truck transportation has access transport on agricultural production. The to areas all over the country, and thus, Ethiopian Railways Corporation began authors found that the shutdown of the for rail fright, estimated at -1.01. This construction of a 5,000 km railway to implies severe competition between has an advantage for domestic Ethio-Djibouti line increased transactions. connect key cities and neighboring transportation costs to the port of railways and trucks; firms would switch countries; this was launched in 2016. Djibouti and significantly reduced Tanzania is implementing a Central agriculture production in Ethiopia. The WORLD BANK GROUP