The Northern Tier Countries of the Greater Horn of Africa
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SD Publication Series Office of Sustainable Development Bureau for Africa * Comparative Costs of Transport: The Northern Tier Countries of the Greater Horn of Africa Gordon J. Anyango The Management Center Nairobi, Kenya Technical Paper No. 60 July 1997 * A Joint Publication of AFR/SD and REDSO/ESA This publication is part of the Regional Trade Agenda Series USAID / Africa Bureau Office of Sustainable Development Productive Sector Growth and Environment Division Food Security and Productivity Unit and Regional Economic Development Support Office Eastern and Southern Africa, Office of Agriculture and Natural Resources Activity Title Regional Trade and Comparative Advantage in Eastern and Southern Africa: Implications for Food Security The series includes the following publications: n TradeNet: User’s Guide to InterMail n Comparative Analysis of Economic Reform and Structural Adjustment Programs in East Africa: With Emphasis on Trade Policies n Comparative Analysis of Economic Reform and Structural Adjustment Programs in East Africa: With Emphasis on Trade Policies—ANNEX n Comparative Transportation Cost Analysis in East Africa: Executive Summary n Comparative Transportation Cost Analysis in East Africa: Final Report n Comparative Analysis of Structural Adjustment Policies in Southern Africa: With Emphasis on Agriculture and Trade n Comparative Cost of Production Analysis in East Africa: Implications for Competitiveness and Comparative Advantage n Methodologies for Estimating Informal Cross-Border Trade in Eastern and Southern Africa n Reported Trade in East and Southern Africa: Analysis of Officially Reported Data n Analysis of Policy Reform and Structural Adjustment Programs in Malawi: With Emphasis on Agriculture and Trade n Structural Adjustment and Agricultural Policy Reform in South Africa n Policy Reforms and Structural Adjustment in Zambia: The Case of Agriculture and Trade n Analysis of Policy Reform and Structural Adjustment Programs in Zimbabwe: With Emphasis on Agriculture and Trade n Unrecorded Cross-Border Trade Between Kenya and Uganda: Proceedings of a Workshop Held at the Mayfair Hotel, Nairobi Kenya, December 6, 1996 n Unrecorded Cross-Border Trade Between Kenya and Uganda: Implications for Food Security n Comparative Costs of Transport: The Northern Tier Countries of the Greater Horn of Africa n Comparative Costs of Transport: The Northern Tier Countries of the Greater Horn of Africa. Executive Summary For more information about the series, contact: Brian D’Silva Joe Carvalho USAID/REDSO/GHAI USAID/REDSO/ESA/ANR TEL: 703-235-5254; FAX: 703-235-3805 TEL: 254-2-751613; FAX: 254-2-743204 Internet: [email protected] Internet: [email protected] Productive Sector Growth and Environment Division Office of Sustainable Development Bureau for Africa U.S. Agency for International Development Comparative Costs of Transport: The Northern Tier Countries of the Greater Horn of Africa Gordon J. Anyango The Management Center Nairobi, Kenya Technical Paper No. 60 July 1997 Publication services provided by AMEX International, Inc. pursuant to the following USAID contract: Project Title: Policy, Analysis, Research and Technical Support Project Project Number: 698-0478 Contract Number: AOT-C-00-96-90066-00 Contents Foreword ix Acknowledgments xi Glossary of Acronyms and Abbreviations xiii Currency Equivalents xvii 1. Introduction 1 Purpose and Scope of Study 1 Methodology 3 Organization of the Study 4 Figure 1.1 Countries of the Horn of Africa 2 2. Regional Economic Perspective 5 Overview 5 Sudan 5 Eritrea 6 Ethiopia 7 Djibouti 8 Somalia 9 Historical Regional Transport Perspective 10 Sudan 10 Eritrea, Ethiopia and Djibouti 10 Somalia 11 3. Existing Transport Infrastructure 13 Introduction 13 Ports Infrastructure 13 Sudan 13 Port Sudan 13 Eritrea 15 Port Massawa 15 Port Assab 15 Djibouti 16 Djibouti Port 16 Somalia 18 Mogadishu Port 18 Berbera Port 20 Bossaso Port 21 Kismayu Port 21 Port Elman 21 In-country Transport Infrastructure 21 Railway Transport Infrastructure 23 Sudan 23 Ethiopia and Djibouti 23 Eritrea 27 Roads 27 Sudan 27 Southern Sudan 28 Ethiopia 31 Eritrea 34 Djibouti 34 Somalia 34 Somaliland (Northwest Region) 35 Axle Load Limits and Road Maintenance Funding 35 Air Transport Infrastructure 37 Air Transport to Southern Sudan 38 Figures 3.1 The Horn of Africa and Its Transport Infrastructure 14 3.2 The Port of Djibouti 17 3.3 Ports in Somalia 19 3.4 Chemin De Fer Djibouti-Ethiopien 25 3.5 Major Roads and Railways in Sudan 29 3.6 Roads in Southern Sudan 30 3.7 Major Roads in Ethiopia and Eritrea 32 3.8 Major Roads in Somalia 36 Tables 3.1 Comparative Analysis of Port Facilities and Cargo-Handling Equipments 22 3.2 Mainline Locomotive Utilization 24 3.3 Ten-Year Investment Program for Regional Roads (1997–2007) 33 4. Current Regional Routes and Intra-Country Linkages 39 Introduction 39 Existing Routes 39 Northern Sudan 39 Eritrea 40 Ethiopia 41 Djibouti/Ethiopia 42 Somalia 44 Southern Sudan 46 5. The Existing Transport Industry 49 Introduction 49 Ports 49 Port Sudan 49 The Port of Massawa 49 The Port of Assab 50 The Port of Djibouti 51 Port of Mogadishu 54 Kismayu Port 54 Berbera Port 54 Bossaso Port 54 The Railway System 55 Railway Freight Transport Industry in Sudan 55 Eritrean Railway Transport Freight System 55 Railway Freight Transport Industry in Ethiopia and Djibouti 55 Road Freight Transport Industry 56 Road Freight Transport Industry in Northern Sudan 56 River Transport Industry in Sudan 57 Road Freight Industry in Ethiopia 58 Road Freight Industry in Eritrea 60 Road Transport Industry in Djibouti 61 Road Freight Transport Industry in Southern Somalia 62 Road Freight Transport Industry in Northern Somalia 62 Road Freight Industry Serving Southern Sudan 62 Role of Traditional Transport in the Region 63 Regional Airfreight Industry 64 Air Transport Industry in the Northern Tier of the Greater Horn of Africa 64 Air Freight Industry in Northern Sudan 64 Air Freight Industry in Eritrea 65 Air Freight Industry in Ethiopia 65 Air Freight Industry in Djibouti 65 Air Freight Industry in Somalia 65 Oil Pipeline/Sudan 65 The Role of Subregional, Regional and Continental Organizations 66 Tables: 5.1 Port Sudan Throughput, 1991–1995 50 5.2 Port of Massawa Throughput, 1991–1995 51 5.3 Port of Assab Cargo Throughput, 1991–1995 52 5.4 Port Djibouti Cargo Throughput, 1991–1995 53 5.5 CDE International Freight 56 5.6 Major Transport Firms, Their Fleet Size, and Capacity 57 5.7 Dry Cargo Vehicles Registered by Capacity and Ownership 60 6. Procedures for Cargo Movement 69 Introduction 69 Institutional Framework 69 Notification of Arrival of Cargo (Imports) 70 Releasing of Cargo 70 The Ports of Massawa and Assab 71 Domestic Cargo 71 Ethiopian Cargo 71 Cargo Routed through the Port of Assab 72 Road Transportation from Assab 73 Port of Djibouti 73 Domestic Cargo 73 Ethiopian Cargo 73 BEL (Registration) Office at the Port of Djibouti 74 Ethiopian Customs Office at the Port of Djibouti 74 Preshipment Inspection 74 Relief Supplies 74 Transportation between Djibouti and Ethiopia 74 Railway 74 Road 74 Transhipment Traffic 75 Customs Office, Addis Ababa 76 Ethiopian Cargo via Moyale, Kenya 76 Verification 76 Port of Berbera 76 Customs 77 Traffic and Customs Department 77 Export Procedures 77 Road Transport Procedures 78 Local Cargo 78 Transit Cargo 78 Southern Sudan 78 Passage through Congo 78 Entry into Southern Sudan 79 7. Costs of Cargo Movement 81 Introduction 81 Port Charges 81 Assab and Massawa 81 Djibouti 82 Somalia 84 Railway Tariffs 85 Sudan Railways Corporation 85 Chemin De Fer Djibouti-Ethiopien 85 Road Freight Rates 87 Northern Sudan 87 Eritrea 87 Ethiopia 88 Somalia 89 Southern Sudan 90 Summary of Freight Rates 92 Clearing and Forwarding Costs 96 Eritrea 96 Ethiopia 96 Djibouti 96 Official and Unofficial Road Transit Charges 96 Tables 7.1 Tariffs of Djibouti Port Authority 83 7.2 Berber Port Charges: Selected Items 84 7.3 A Comparative Analysis of Rail Freight Rates between the Countries in the Northern Tier of GHA Subregion and East Africa 86 7.4 A Comparative Analysis of In-Country Road Freight Rates between the Countries in the Northern Tier of GHA Subregion 91 7.5 Direct Freight Rates 97 7.6 Transit Charges per Truck through Congo (formerly Zaire) 99 8. Comparative Transportation Costs Analysis 101 Introduction 101 Port Charges 101 Shorehandling 103 Port Dues 103 Storage Charges 103 Summation of Port Charges 104 Other Charges 105 Port Transit Times 105 Clearing and Forwarding Costs 106 Direct Freight Rates 108 Routes to Khartoum 108 Routes to Gonder (Northern Ethiopia) 108 Routes to Addis Ababa 109 Routes to Southern Sudan 110 Valuation of Transit Times 111 Comparative Costs of Transportation 113 Conclusion 116 Tables: 8.1 Indicative Storage Charges 102 8.2 Port Charges 104 8.3 Direct Freight Rates — Imports 109 8.4 Transit Times by Route 112 8.5 Valuation of Transit Times 114 8.6 Summation of Transportation Costs 115 8.7 A Comparative Analysis of the Impact of Sea Freight Charges on Total Transportation Costs between the Ports of Assab and Djibouti Corridors 117 9. Subregional Transportation Constraints and the Impacts of Their Improvement on Agricultural Production, Trade, and Food Security 119 Introduction 119 Agricultural Production and Trade 120 Impacts of Improvement of Transport Linkages on Agricultural Production and Trade 126 Tables: 9.1 Production of Selected Cereals Crops in Northern Sudan 121 9.2 Eritrea’s Food Aid Supplies 122 9.3 Ethiopia Food Production and Food Aid 124 9.4 Comparative Costs of Sourcing Cereals 126 10. Summary of Constraints and Weaknesses, and Recommendations 129 Introduction 129 The Massawa-Asmara Corridor 129 Constraints and Weaknesses 129 Recommendations 130 Addis Ababa Corridor 133 Shipping, Clearing and Forwarding Issues 134 Customs Services 134 Road Transport 134 Railway Transport 135 Recommendations 135 Berbera Corridor 138 Port of Berbera 138 Clearing and Forwarding 139 Customs Services 139 Roads 139 Road Transport 139 Recommendations 140 Mombasa Port Corridor 142 Recommendations 143 Conclusions 143 Summary of Recommendations 144 Appendixes I.