Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Trade and Transport Corridor Management Toolkit Trade and Transport Corridor Management Toolkit Charles Kunaka Robin Carruthers © 2014 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank with external contributions. The fi ndings, interpretations, and conclusions expressed in this work do not necessarily refl ect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Trade and transport corridor management toolkit / Charles Kunaka, Robin Carruthers. pages cm Includes bibliographical references and index. ISBN 978-1-4648-0143-3—ISBN 978-1-4648-0144-0 1. Transportation corridors—Planning. 2. Trade routes—Planning. 3. Business logistics. I. Carruthers, Robin. II. Title. HE323.K86 2014 388.3'242—dc23 2014001154 CONTENTS Foreword xiii Acknowledgments xv About the Authors xvii Abbreviations xix Introduction. Purpose and Use of This Toolkit 1 Why a Toolkit? 2 Organization of the Toolkit 6 References 11 Primer 13 Drivers of Corridor Development 13 Components and Functions of a Corridor 16 Note 25 References 25 Resources 26 PART I Corridor Diagnostic and Performance Assessment 29 Module 1. Carrying Out a Corridor Diagnostic 31 Setting the Objective 32 Conducting a Strategic Assessment 32 Assessing Corridor Infrastructure 39 Assessing Logistics Services 40 v Executing a Corridor-Level Assessment 43 Tools for Conducting a Corridor Assessment 44 Summary of Corridor Assessment Techniques 52 Prioritizing Interventions 53 Annex 1A Defining and Collecting Data for a Corridor Diagnostic 54 Annex 1B Questions for Discussions with Logistics Providers, Exporters, Importers, Distributors, and Wholesalers 62 Notes 68 References 69 Resources 69 Module 2. Assessing the Legal and Regulatory Context of a Corridor 73 Collaboration, Cooperation, and Management 74 Hierarchy of Instruments 75 Analysis of Legal Instruments 87 Notes 90 Reference 91 Resource 91 Module 3. Institutional Arrangements for Corridor Management 93 Why Is Corridor Management Relevant? 93 Types of Corridor Management Mechanisms 94 Main Activities of Corridor Management Bodies 95 Key Considerations in Corridor Management 95 Summary of Possible Interventions for Improving Corridor Management 106 References 108 Resources 108 Module 4. Corridor Performance Indicators 111 Uses of Corridor Monitoring and Indicators 112 Levels of Decision Making 115 Characteristics of Indicators 119 Parameters to Monitor 126 Comparative Analysis of Corridor Performance 134 Notes 136 References 137 Resources 138 vi Trade and Transport Corridor Management Toolkit PART II Improving Corridor Performance 139 Module 5. Border Management in a Corridor 141 Border Issues Affecting Corridor Performance 143 Data and Information Sources 147 Improving Border-Crossing Performance 154 Summary of Possible Interventions for Improving Border Management 164 Annex 5A Flow Chart for Beitbridge Border Post (Cargo Inward), Zimbabwe 166 Annex 5B Questions for Discussion of Customs 167 References 174 Resources 174 Module 6. Customs Transit Regimes 177 Overview of Customs Transit Regimes 178 Transit Issues in Developing Countries 181 Data and Information Sources 184 Improving Customs Transit Regimes 184 Summary of Possible Interventions for Improving Transit Regimes 194 Notes 196 References 196 Resources 197 Module 7. Road Freight Transport 199 Important Considerations along Corridors 201 Data and Information Sources 215 Improving Trucking Services within a Corridor 217 Summary of Possible Interventions for Improving Trucking Services 223 Annex 7A Questions for Discussion of Road Transport 225 Notes 235 References 235 Resources 235 Module 8. Rail Transport 239 Rail Freight Issues in a Trade Corridor 240 Data and Information Sources 247 Potential Improvement Measures 247 Summary of Possible Interventions for Improving Rail Transport 252 Annex 8A Questions for Discussion of Rail Transport 254 Notes 260 Contents vii References 260 Resources 260 Module 9. Shipping and Maritime Transport 261 Types of Container Services 262 Data and Information Sources 266 Adapting to Changes in Maritime Shipping 269 Summary of Possible Interventions for Improving Maritime Transport Services 272 Annex 9A Questions for Discussion of Shipping and Maritime Transport 274 Note 277 References 278 Resources 278 Module 10. Port Operations 281 Main Issues Relating to Ports and Corridor Performance 282 Data and Information Sources 289 Potential Solutions to Ports Issues 292 Summary of Possible Interventions for Improving Port Operations 296 Annex 10A Questions for Discussion of Port Operations 298 Note 302 References 302 Resources 303 Module 11. Land Access to Ports 307 Impact of Urban Access on the Functioning of the Port 309 Data and Information Sources 311 Options for Improving Land Access to Ports 311 Summary of Possible Interventions for Improving Land Access to Ports 316 Annex 11A Questions for Discussion of Land Access to Ports 318 Notes 322 References 322 Resources 323 Module 12. Airfreight 325 Airfreight Issues in Corridor Operations 326 Data and Information Sources 331 Improving Airfreight in a Corridor 332 Summary of Possible Interventions for Improving Airfreight 337 Annex 12A Questions for Discussion of Airfreight 339 Notes 342 viii Trade and Transport Corridor Management Toolkit References 343 Resources 343 PART III Corridor Impact Evaluation 345 Module 13. Evaluating the Economic Impact of a Corridor 347 Objectives of Impact Evaluation 349 Criteria for Evaluation 349 Issues to Consider in an Impact Evaluation 350 Economic Evaluation Methods 352 Notes 362 References 362 Resources 363 Index 367 Boxes I.1 Lessons from Corridor and Regional Projects by the World Bank 3 P.1 Integrated Corridor Development in Maputo 22 P.2 Example of Impact of a Corridor on Supply Chain Organization 24 1.1 Conducting a Trade and Transport Facilitation Assessment of a Regional Program in the Mashreq 42 1.2 Using Trip Diaries to Improve Trade along the Silk Road 48 1.3 Using Global Positioning System Data in Corridor Monitoring 50 1.4 Conducting Corridor Observatory Work in Africa 51 4.1 CIF versus FOB in West Africa 116 5.1 Using the Results of a Time Release Study on Border Operations in Uganda 149 5.2 Monitoring Performance on the Border between Zambia and Zimbabwe 153 5.3 Singapore’s Single Window 158 5.4 Reducing Delays by Sharing Customs Information in East Africa 159 6.1 The European Community and Common Transit Systems 191 7.1