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The Management of Commercial Road Transport in Ethiopia

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The Management of Commercial Road Transport in Ethiopia The Management of Commercial Road Transport in Ethiopia May 2009 Produced and distributed by the Addis Ababa Chamber of Commerce and #!2-0*11-!'2'-,15'2&L',,!'*13..-02$0-+ the Swedish Agency for ,2#0,2'-,*#4#*-.+#,2--.#02'-,Q'" Sida © Private Sector Development Hub/Addis Ababa Chamber of Commerce and Sectoral Associations, 2009 P. O. Box 2458, Mexico Square, Addis Ababa, Ethiopia Tel: +251(0) 115 504570/ 542405, Fax: +251 (0) 115 542404, Email: [email protected] All Rights Reserved. No part of the publication may be produced or transmitted in any form or by any means without the prior permission of the copyright holder. The only exception is for a reviewer, who may quote short excerpts in a review. Disclaimer:- The views expressed in the study do not necessarily reflect the views of PSDHub or Addis Ababa Chamber of Commerce and Sectoral Associations or Sida. They are solely the responsibilities of the authors. Acknowledgements he study on The Management of Commercial Road Transport in Ethio- pia was initiated by the Private Sector Development Hub in response to the problems encountered by transport companies, associations, and individual operators with respect to operating environment, costs and [ ability with its impact on competitiveness. W.T Consult Pvt. Ltd. Co. was contracted to undertake the study and produced [ Shelly of BKP Development Research and Consulting GMBH. Throughout the report, “Consultant” refers to W.T Consult, while “Review Team” !"#$ Contents Acknowledgements Acronyms Chapter One Introduction 9 Chapter Two Transport Sector and Macroeconomic Background 13 Macroeconomic Scenarios and Development 13 Highways and Roads 16 %[& '( Road Safety 22 Vehicle Fleet and Travel Characteristics 25 Railway Mode 33 Shipping: Need for Choice in Multimodal Transport 34 Air Cargo Mode 37 )*+ /( Ports of Entry 41 Dry Ports 41 Chapter Three Road Freight Transport 45 Categories of Operation and Capacity 46 *%08;*+<[= >? Freight Transport Demand and International Freight Transport Service Delivery 49 Interurban Domestic Road Freight Operations 56 Urban Freight Operations 57 Road Transport Maintenance Planning and Facilities 61 Road Freight Terminals 61 Warehousing 62 Freight Transport Vehicle Productivity and Costs 62 %@& J( Freight Tariffs 70 Freight Forwarding 73 Vehicle Overloading 74 The Potential for Road-Rail Inter-Modal Transport 76 &$& ?? 0$0;XYYJXY'Z= ?? Chapter Four Road Passenger Transport 79 #0@ (' @ (' [$\*@!8 (( Taxi Fleet and Level of Service: Operations in Addis Ababa 91 Travel Demand/ Patronage 93 Passenger Transport Vehicle Productivity and Costs 94 &+ ^Z Entrance to Market 96 Public Transport Maintenance Facilities 97 Road Passenger Terminals 97 _$ ^( 0 ^( $& 'YX Passenger Transport Service Forecast 103 Chapter Five Institutional Arrangements in Road Transport 107 Political Context: Institutional Structure Including Allocation of Powers between Jurisdictions 107 8%j* 'Y( Road Freight Transport Industry Structure 110 %0*8 ''X Road Passenger Transport Industry Structure 115 %#*8 ''( Road Safety 119 Access to the Profession 119 Human Resource Development and Management Capacity 120 Some Institutional Issues 121 Chapter Six Legal Framework and Road Transport Regulations 123 Legal Framework 123 Road Transport Regulations 124 Operation and Regulation of Road Passenger Services 126 Operation and Regulation of Road Freight Services 127 Findings of Road Transport Regulations Study 127 0q)#$ 'X( Findings of Other Studies 130 Key Legislative Issues 132 Key Regulatory Issues 133 Chapter Seven Banking and Transport Industry Insurance 135 Financial Performance and Sustainability 135 Motor Vehicle Insurance 137 Key Business, Finance and Management Issues 139 Key Banking and Insurance Issues 140 Chapter Eight Analyses of Some of the Principal Road Transport Issues 141 Overview of Road Passenger Transport 141 Overview of Road Freight Transport 142 Some Important Challenges in Road Transport 143 Some Measures to Improve Road Safety in the Road Transport Industry 145 Some Measures to Improve Urban Transport Organisation in Addis Ababa 147 Some Measures to Enhance International Road Freight Business 147 $)+#8 '>( Some Measures to Combat Vehicle Overloading 150 Chapter Nine National Transport Masterplan Study Framework and Strategic Directions 151 $_#&\%0;+<*z+<&[= 'ZX Possible Free Trade Zone 157 $_#&\%0*z+<&[ 'Z( $%_#&\*@ 'J' Chapter Ten Synthesis of Study Recommendations 163 Vision Statement 163 Policy Statements 163 _$_%$ 'JZ Development of Wider Action Plans by Implementing Institution 166 Possible Follow-up Process 171 Annexes Annex 1 Minibus Taxi Service Supply Characteristics 175 Annex 2 &+M%0 '(' Annex 3 Bus Fares and Tariffs '(/ Annex 4 Road Freight Industry Structure '(( Annex 5 Public Transport Industry Structure 194 Annex 6 Access to Credit/Loans 199 Annex 7 Free Trade Zone 202 _<(_ WTO Accession 204 _<(! Developments in the Freight Industry - World Experiencs 205 Annex 9 National Transport Master Plan 207 Annex 10 $q\)## XY( Annex 11 Road Transport: Action Plans for Principal Actors with Timeline 210 List of Tables X'_j#j+;XYYJzY?MXYXJzX?= 16 Table 2.2 Regional Development Scenarios 16 X/$[+%_q};'^^>MXYY>= 19 X>j[;~"=+%_q}'^^>XYY> 19 XZ+[0$%XYY> 19 XJ[j;XYY/Y>= 20 X?%q}&";XYY(= 21 X()%[_;%_R=+ 23 X^[_%@ 24 Table 2.10 Accident Involvement of Vehicles in the Year 2004/5 24 X''j+%~0;XYYYzY'XYY>zYZ= 26 Table 2.12 Annually Inspected and Registered Vehicles by Type of Services 26 Table 2.13 Road Passenger and Freight Fleet Data—~&;XYY?= 27 Table 2.14 Imported Freight Transport Vehicles X( X'Z_j)<0$&;'^^(z^^XYY>zYZ= 29 Table 2.16 Growth of Passenger Fleet by Seat Capacity 29 X'?_j#%#~$&;XYYZMXYY(= 30 X'(8%#~;XYYJ= 30 X'^[j~);XYYJ= 31 Table 2.20 Truck Commodities Carried and Average Load Per Truck in Tonnage 31 Table 2.21 Average Truck Journey Times from Survey 32 Table 2.22 Distribution of Vehicles between Regions 33 Table 2.23 Estimate of Transit and Transport Costs of Export 37 Table 2.24 Estimate of Transit and Transport Costs of Import 37 /'j&[;'^^^XYYZ= 50 /Xj_[!}&[;'^^^XYYZ= 55 Table 3.3 Good Vehicle Access and Loading Objectives in Urban Areas 60 />&~;XYY>zYZ= 65 /Z0%#$!z&#[;_XYYJ= 65 /J&%##!#;XYYJ= 66 /?*}08&#";!= 67 /(&}!}8&!;XYYJ= 67 Table 3.9 Import Duties and Excise Taxes on Vehicles 69 /'Y0%#$!#[;_XYYJ= 69 /''0XYYZzYJ;+'^^?= 71 /'X[j~;XYYJ= 74 Table 3.13 The National Transport Master Plan Study Truck Forecasts ?( Table 3.14 Review Study Truck Forecasts ?( >'$_&!+;'^^'XYY'= (X >X_j%#~#<}XYYZXYY( 93 >/*!08&##";!= 94 >>8%#~;XYYJ= 95 >Z[!#;XYYZzYJ=+'^^? 99 Table 4.6 The National Transport Master Plan Study Passenger Vehicular Fleet Forecasts 103 Table 4.7 Review Study: Passenger Vehicle Fleet Forecasts 104 >(_j%#[#<";XYYZXYY(= 104 >^%$#[0 105 Z'&}[_;XYYJ= 111 Table 5.2 Comet Haulage Performance, by Year 115 Z/*!$;XYYJ= 116 Z>8&$# 121 'Y'q)#$_% 165 Table 10.2 Action Plans: Recommendations by Principal Actors 167 List of Figures Figure 2.1 National Transport Network 2007 17 Figure 2.2 National Road Network After Completion of RSDP-III '( 0X/j%q}~";XYY(= 21 Figure 2.4 Commodities Carried by the Trucks in 2007 32 Figure 4.1 Population Densities in Ethiopia 79 0>X)$__&#[ (> 0('$#*@#+& '>( Acronyms AACRA Addis Ababa City Roads Authority AACTO __&8;= ADLI _[* ADR Agreement on Dangerous Goods by Road AETR Agreement Concerning the Work of Crews of Vehicles Engaged in International Road Transport ASYCUDA _$&;@q&_= CAA Civil Aviation Authority CCA Customs Clearance Association CDE +%;&+= CNG Compressed Natural Gas COMESA Common Market for Eastern and Southern Africa CPC &#& CRA &%_;%__= CRMC Community Road Management Committee DGSA j$_;_%= DPPB ##!;%= DPPC ##&;0j= DPPD ##;= EADA +__;= EAE Ethiopian Airports Enterprise EAL Ethiopian Airlines EDF European Development Fund EFFSA Ethiopian Freight Forwarders and Shipping Agents Association EPE Ethiopian Petoleum Enterprise ERA Ethiopian Roads Authority ERTTP Ethiopian Rural Travel and Transport Programme ESL Ethiopian Shipping Lines EU European Union FCL Full Container Load FEU 0;X<+@= FIATA International Federation of Freight Forwarders Associations GDP Gross Domestic Product IATA International Air Transport Association ICC International Chambers of Commerce ICD Inland Container Depot or Inland Clearance Depot ICT Information Communications Technology ILC International Logistics Centre IMT Intermediate Transport IRU International Road Transport Union IU *@;= LCL Less than Container Load MoARD Ministry of Agriculture and Rural Development )jR Millennium Development Goals MoFED Ministry of Finance and Economic Development MoTC Ministry of Transport and Communications MT Metric Ton MoTI Ministry of Trade and Industry MTSE Maritime Transit Services Enterprise MoWUD Ministry of Works and Urban Development NGO Non-Governmental Organisation NRSC q%$&;= NTC q&;= NTMP National Transport Master Plan NTSS National Transport Sector Strategy PASDEP Plan for Accelerated and Sustained Development to End Poverty PPESA ##+$_ PSO Public Service Obligation RADA %__;= RF Road Fund RRA ;%=%%_ RSDP Road Sector Development Programme SAD Single Administrative Document, a combined customs form SNNPRS $qq#R%$ TA Transport Authority TB/L Through Bill of Lading TEU ;*$8XYR= TIR International Transport by Road UNCTAD United Nations Conference on Trade and Development UN-EUE United Nations - Emergencies Unit for Ethiopia VoR Vehicle off the Road WCO World Customs Organisation WFP World Food Programme WTO World Trade Organisation Chapter One Introduction Context of the
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