Annual State of Cross-Border Operations Report (March 2017)
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ANNUAL STATE OF CROSS-BORDER OPERATIONS REPORT March 2017 FIRST REPORT 2015 i Table of Contents 1. OVERVIEW OF THE REPORT .................................................................................................. 1 1.1 Introduction and Background ................................................................................. 1 1.2 Problem Statement ............................................................................................... 3 1.3 Purpose of Report ................................................................................................ 5 1.4 Report Methodology ............................................................................................. 5 1.5 Focus of the Report .............................................................................................. 5 1.6 Scope of the Report .............................................................................................. 6 2. THE STRATEGIC IMPORTANCE OF TRANSPORT CORRIDORS .................................... 8 2.1 The Role of Transport Corridors in Fostering Economic Growth and Development ..... 9 2.2 General Impediments to Corridor efficiency and Regional Integration in Southern and Eastern Africa ........................................................................................................11 2.2.1 Overlapping REC Memberships ..............................................................................11 2.2.2 The Heterogeneity of SADC Economies ...................................................................13 2.2.3 Different Levels of Economic Development...............................................................13 2.2.4 Rules of Origin .......................................................................................................14 2.2.5 Funding shortages .................................................................................................14 2.2.6 Poor road conditions ..............................................................................................14 2.2.7 Lack of road network connectivity ............................................................................15 2.2.8 Lack of harmonised regulatory frameworks...............................................................15 2.2.9 Ineffective border management systems ..................................................................15 2.2.10 Road blocks and Inspection procedures ...................................................................16 2.2.11 Corruption practices ...............................................................................................16 2.3 Spatial Development Initiatives along Regional Transport Corridors .........................16 2.4 Management of Transport Corridors in the SADC region .........................................17 2.5 Road Transport Legal and Regulatory Frameworks in the SADC region ...................18 2.6 Conclusion ..........................................................................................................18 3. OVERVIEW OF THE NSC, MDC AND TKC CORRIDORS ................................................. 20 3.1 Introduction .........................................................................................................20 3.2.1 Background ...........................................................................................................20 ii 3.2.2 Route Description ..................................................................................................20 3.2.3 Condition of Road Infrastructure ..............................................................................22 3.2.4 NSC Corridor Constraints .......................................................................................22 3.2.5 High level overview of traffic and trade volumes ........................................................24 3.2.6 Positioning of Weighbridges and Truck Stops ...........................................................26 3.2.7 Road User and Cross-Border Charges .....................................................................28 3.2.8 Wrap-Up Remarks .................................................................................................30 3.3 Maputo Development Corridor ..............................................................................30 3.3.1 Background ...........................................................................................................30 3.3.2 Route Description ..................................................................................................31 3.3.3 Condition of Road Infrastructure ..............................................................................32 3.4 MDC Corridor Constraints .......................................................................................32 3.3.5 High level overview of traffic and trade volumes ........................................................33 3.3.6 Positioning of Weighbridges and Truck Stops ...........................................................34 3.3.7 Road User and Cross-border Charges .....................................................................35 3.3.8 Wrap-up Remarks ..................................................................................................37 3.4 Trans Kalahari Corridor ........................................................................................37 3.4.1 Background ...........................................................................................................37 3.4.2 Route Description ..................................................................................................37 3.4.3 Condition of Road Infrastructure ..............................................................................38 3.4.4 TKC Corridor Constraints ........................................................................................38 3.4.5 High level overview of traffic and trade volumes ........................................................39 3.4.6 Positioning of Weighbridges and Truck Stops ...........................................................40 3.4.7 Road User and Cross-border Charges .....................................................................40 3.4.8 Wrap-up Remarks ..................................................................................................41 3.5 Conclusion ..........................................................................................................41 4. IMPORTANCE OF BORDER POSTS IN OPTIMISING CORRIDOR EFFICIENCY ........ 43 4.1 Introduction .........................................................................................................43 4.2 Commercial Border Posts on Prioritised Transport Corridors ...................................43 4.2.1 North South Corridor ..............................................................................................43 4.2.2 Maputo Development Corridor.................................................................................57 4.2.3 Trans Kalahari Corridor ..........................................................................................62 iii 4.3.1 Status Quo: Infrastructure Inefficiencies at Border Posts ............................................65 4.3.2 Potential Impact of Border Post Improvements .........................................................65 4.4 Developments at Major Border Posts in the region ..................................................66 4.4.1 Regional Developments ..........................................................................................66 4.4.2 Developments in South Africa ................................................................................72 4.5 Conclusion ..........................................................................................................73 5. CORRIDOR AND BORDER POST GOVERNANCE IN SADC ........................................... 75 5.1 Introduction .........................................................................................................75 5.2 Legal Instruments and Frameworks .......................................................................75 5.2.1 SADC Protocol on Transport Communication and Meteorology (PTCM) ......................76 5.2.2 SADC Protocol on Trade in Services .......................................................................77 5.2.3 SADC Regional Indicative Strategic Development Plan .............................................77 5.2.4 SADC Regional Infrastructure Development Master Plan ...........................................78 5.2.5 Bilateral Cross-Border Road Transport Agreements ..................................................79 5.3 Institutional Frameworks.......................................................................................80 5.4 Corridor Management Committees and Institutions .................................................81 5.4.1 North South Corridor ..............................................................................................82 5.4.2 Maputo Development Corridor.................................................................................82 5.4.3 Trans Kalahari Corridor ..........................................................................................84 5.5 Institutional Challenges ........................................................................................84 a) Lack of Trust and Limited Cooperation between Institutions .......................................85 b) Institutional Skills Shortages ...................................................................................85