1ILL itir RESTRESTRICTED Report No. AF-58a Public Disclosure Authorized lolls repor, wais prepared lor use w`ithin th'e Bank and' its cumriaWoed organiza"iOnS1. They do not accept responsibility for its accuracy or completeness. The report may Iinot be pubuiishedle normar it be quoted as representing fheir vi INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized AF58 Volume 15 PROSPECTS FOR ECONOMIC DEVELOPMENT. IN EAST AFRICA (in four volurnes) VOLUME III - TANZANIA (in seven parts) Public Disclosure Authorized PART FIVE: ANNEX D - TRANSPORT August 31, 1967 Public Disclosure Authorized Africa Department EQUIVALENTS Currency 1 Tanzania Shilline = U. S. $0. 14 U.S. $1 = T. Sh 7. 14 'r- I = U.S. $2.80 E 1 = T. Sh 20.00 Weight Throughout this report, unless otherwise stated, tons refers to long tons of 2240 lbs. COMPOSITION OF THE MISSION This rpnort is h;iqd on thp findings of' a Missi on to East Africa wrhich did its field work in Cctober, November and December 1966 and consistled of the following: Colin M. F. Bruce, Deputy Chief of Mission -andChief Economist = Kenya (TID) Kudlapur G. V. Krishna, Economist - Kenya (IBRD) C. G. IAkhurs, AgriculaL.-l Advrise =VKe- (FAO). Maurice Fenn, Agricultural Economist - Kenya (FAO) Pr-l .veite ,UepuUly CUI fLL of Mil-ssion and Chief Economist - Tanzania (Consultant) Bruno E. Scheltera, Economist - Tanzania (IBRD) Archie Forbes, Agricultural Adviser - Tanzania (FAO) Jacques Kahare, Agricultural Economist - Taiizania (IDIID) Otto Maiss, Deputy Chief of Mission and Chief Economist - Uganda (IBRD) Nicholas Carter, Economist - Uganda (IBRD) David ir.M. Haynes, Agricultural Adviser - Uganda (IBRD) Montague Yudelman, Agricultural Economist - Uganda (Consultant) H. David Davis, Adviser on Tourism (IBRD) Bernard H. Decaux, Adviser on Industry (Consultant) Jack Derrick, Adviser on Industry (ConsuLtant) Edward V. K. Jaycox, Adviser on Transport (IBRD) Aristides J. Macris, Adviser on Agricultural Training and Education (IERD) David McLellan, Adviser on General Education (Consultant) Lyell H. Ritchie, Adviser on Industrial Finance (IFC) Gavin Wyatt, Adviser on Power (IBRD) The Mission's findings relate for the most part to the situation as of the end of 1966, although in some respects note has been taken of developments up to the middle of 1967. TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS T. Thp Tranqsnprt REcnrnnv 1 The System 1 Transport Coordination 2 Priorities for Fu Development 14 Staffing and Organizational Needs 5 The Plan and Performance 6 Rephasing Transport Investment 7 II. Road Transport and the Road System 9 Road Transport 9 mile loal Syste:m1 Road Administration 12 R'oad TIaitennc-. Road Construction 14 P-lann-lng R'loaduILnvestm1ents 15 A Revised Road Program 15 FiLuancinig 'thle Rnoad Prrogrami 17 Project Identification 19 III. Airports 21 Organization 21 Financial Structure 21 Investment Program 21 IV. The Zambia-Tanzanian Transport Problem 22 Zambia's Alternative Outlets to the Sea 22 Emergency Transport Operations in East Africa 24 Long-Term Solutions 26 MAPS TRANSPORT TN TANZANIA SUJM4ARY AND CONCLUSIONS 1. Investment and current expenditures in the transport sector have been low in recent years and traffic trends suggest that a much higher rate of such expenditures will be required over the next five years. 2. The trunk transport system of Tanzania is basically adequate in extent. There are few significant gaps at today's levels of demand for trans- port. However, the capacity of the railway and main port of Dar es Salaam require rapid expansion to meet recent and foreseeable traffic trends. rhere are sections of main roads which require upgrading in the next few years. 3. The recent addition of Zambian transit traffic to the Tanzaniaa trunk system due to the Rhodesian crisis and the uncertainty as to its future volume or duration raise difficult problems for transDort planning in Tanzania. 4. The secondary and minor roacl networks are inadequate in most areas of high agricultural activity and potential. Criteria to assess these needs must be established and measures taken to meet them in a systematic manner. 5. The general lac-k of storage facilities at the coast and at un-,-ountry production points seriously reduces the flexibility of the transport system. Road maintenance is lagg:ing bhhind re^,uirements 9 and expenditures should -h increased substantially. 6. Staffing inadequacies seriously affect Tanzania's ability to p:Lan and carry out solutions 1to its transport problems. If sound plans for overr coming these deficiencies were promptly prepared, external assistance would be n-ropria e. 7. Planning of transport program-, and pro.jects lacks coordination. The various transport modes are planned in isolation. Contact, between Government authorities and the East African Railways and Harbours Administration (E__RH) is inadequate. There is a need for closer liaison between planning in the productive sectors and in transport. The Mission recommends the creation of a transport planning unit; within the Ministry of Communications and Works, audequatuel0y sta f.fced to asscss thUe trans-port need-- , of- the+1- cut-- onaco e- hensive basis. 8. Cost estimates in the published and later revisions of the Plan are M4s e ` __ 4:_ 4-1 _ As_4 _ A_r .0 _EAP -.. 4 MI- -4_.11 I±0I:l:41±g as is) WIIGU 1 Vl 1a ± 1j V Ul VVrV*> a w 4_L H' be a physical shortfall in the latest version of the road program of nearly 60 percent. However, this lower rate of physical achievement is more in line with what is economically appropriate in view of the substantial rise in …±2-. 4-2.t-. II-, T7IAnOTT _1_4__..~1 4~ 4- const,ruc'tuion costUb~.4- estir,at,es . leIL EAno:R8n pluan appear to relate uo Tanzania's needs, whereas the expectations as to EAR&H investment published in the 'Plan do not. - ii - 9.- in assessing the stat us Of transpo.rt projects anu prog.rams aund tne capacity of the Government and EAR&H to carry them out., and in accordance with our view of economic priorities with respect to those projects for which options are still open, the Mission suggests a total capital investment pro- gram for transport during the Plan period of r36.4 million. External assistance for most of the projects in this program is already assured. Nevertheless, the program would entail substantial increases over previous levels in the allocation of local funds, the shortage of which may prove to be a constraint on investment. TRANSPORT IN TANZANIA l/ I. THE TRANSPORT ECONOMY The System 1. The development and improvement of Tanzania's transport systeml is a high priority task that rnust form an important element of any effective develop- ment ef'fort. While the economic development of the country has not so f'ar been retarded by a lack of reliable transport facilities, this could soon become the case if public investment and recurrent expenditures in transport were not increased substantially over the levels of recent years. The recent upsurge of economic activity in Tanzania has generated a proportionately greater in- crease in transport demand that has been difficult to meet. 2. The basic transport system consists of three main seaports, ab'out 1.500 miles of railway line, 21,000 miles of main, secondary and district roads, 20 airports handling scheduled flights, and coastal and lake shipping services. The system is extensive in relation to the volume of traffic it is called upon to handle because population and production centers are widely dispersed around the nerinhery of the couintry's sparsely ponulated and lonw-notertialR cen-tral plateau. 3. The main flow of traffic and, consequently, the orientation of the eoiintry 's trunk tranpnort sys.rtem7 run Vc9nrouhlvr eat--west to and( f-rnom the sepon rts mainly Dar es Salaam and Tanga. This pattern reflects the economy's past and present dependence on exported primary products and the reverse flow of manu- factured and fuel requisites distributed throughout the country from the coast 1 ,rhere +he-r are e;+ile -,mnorted+ or prorducedr Tih +trun-rlr sysarcm te F' m-anzan ia CR also utilized by neighboring landlocked states and the eastern part of the Congo, ~wf.iiich rely on it varying drees fr------ a - to the a (see dicus= sion of Zambian emergency transit traffic in paragraphs 63-80o below)*. 4. The railway system, operated by East African Railways and Harbours Admlinistration (TEAP&-T) n a common -sderv,cett T--,na enya .A Tj-ador forms the backbone of the transport system and carries the bulk of long-distance, hav,y t r a .During J_Q57--1964 1.L.. a avj~ffi;ci.a. U.. 4414. .. 1± -. 7 2 I _7 yJ- .9 .1.railway zL ,y fPreightI±4i .ZI I..4U traff-icU . grewW aUat theJI .1.rltvl U 5 c.-L slow annual rate of less than 3 percent, reflecting economic stagnation during the politically uncertain years of the early 19 6 0's. In 19659 the railways in Tanzania moved 1.33 million tons of freight which amounted to about 470 million ton-milles, an increase of aboutu 4 percent ln tnUuage and 15 percent in t,on-mr,1iles over 1964. Partial statistics point to a dramatic increase of perhaps 20-25 percent in tonnage and ton-miles in 1966, the highest yet recorded. This iln- crease primarily reflects the growth of domestic production and consumption and a resurgence in Congo/Burundi traffics. Zambian traffic also contributed substantially to the increase. 1/ This Annex deals w:ith the whole transport system of Tanzania (excluding Zanzibar) with primary emphasis on roads and airports, while railway and nort investment nrogrnms are discussed in Annex I-A. - 2 -- 5. While the road system is fairly extensive, traffic volumes generally are low except in the vicinity of the major coastal centers and in the Lake Victoria area.