ATWA Stage 2 Report. PART 1 Corridor Diagnostic. September Prepared by:

Transcription

1 ATWA Stage 2 Report PART 1 Corridor Diagnostic September 2016 Prepared by:

2 ATWA Stage 2 report: Corridor Diagnostic i Acknowledgements This report draws on the excellent contributions of Afua Eshun, Advocacy Program Manager at the Borderless Alliance, and Christel Annequin, Independent Consultant. Their expertise, work and knowledge of West African corridors were invaluable to the undertaking of this report.

3 ATWA Stage 2 report: Corridor Diagnostic ii Contents Acknowledgements... i List of Tables/Figures... iv List of Acronyms... vi EXECUTIVE SUMMARY... viii 1. INTRODUCTION ANALYSIS RESULTS: OVERVIEW OF CORRIDOR PERFORMANCE Cost Time Comparing Corridors Performance improvement opportunities TRAFFIC FLOWS Summary Introduction Burkina Faso traffic Discussion: CBC, Ports & other sources of statistics Traffic: petroleum products Container traffic Regional traffic according to the 2012 JICA survey Abidjan-Ouagadougou Port & Corridor traffic Tema-Ouagadougou Port & Corridor traffic Lomé-Ouagadougou Port & Corridor traffic Abidjan-Lagos Corridor OUAGADOUGOU Summary Introduction Selected development projects Trends: what has changed Issues & opportunities: OUA terminal and Burkina Faso ABIDJAN-OUAGADOUGOU CORRIDOR Summary Introduction Selected development projects Trends: ABJ OUA Corridors Corridor improvements since 2012: Costs & times: Issues & opportunities: ABJ-OUA TEMA-OUAGADOUGOU CORRIDOR Summary Introduction Trends: Tema Ouagadougou Corridor Important changes Development projects Issues & opportunities: TEM-OUA Corridor LOME-OUAGADOUGOU CORRIDOR Summary Introduction Selected developments Trends: Lomé-Ouagadougou Corridor... 51

4 ATWA Stage 2 report: Corridor Diagnostic iii 7.5 Issues & opportunities: LFW-OUA corridor ABIDJAN-LAGOS CORRIDOR Summary Introduction Border crossing time: Agencies at border posts The ABJ-LOS Corridor in the ATWA focus Area Analysis ISSUES IDENTIFIED BY STAKEHOLDERS Issue 1: Customs & good clearance Issue 2: GPS tracking Issue 3: Transport services Issue 4: Parking & congestion Issue 5: Container deposit Issue 6: Axle load implementation Issue 7: Obligatory freight insurance Issue 8: Bribes at checkpoints & harassment Issue 9: Evidence-based policy making and advocacy Observatories Issue 10: Corridor management IMPLICATIONS FOR ATWA PROGRAMMING Annex I Methodology Annex 2: Lome-Ouagadougou Corridor, Import Procedures Annex 3: Tema-Ouagadougou Corridor, Import Procedures Annex 4: Tema-Ouagadougou Corridor: Export Procedures Annex 5: Tema-Ouagadougou Corridor, Costs & Times Trends Annex 6: Abidjan-Ouagadougou Corridor, Costs & Times Trends Annex 7: Ouagadougou, Import & Export Procedures

5 ATWA Stage 2 report: Corridor Diagnostic iv List of Tables/Figures Figure 1 Study corridors. 1 Figure 2: Burkinabè import (tonnes) Figure 3: Burkinabè export (tonnes) Figure 4: BF import from (tonnes) Figure 5: BF export to (tonnes) Figure 6: Average daily type and number of vehicles (2012) Figure 7: Average daily volume of passengers & goods (2012) Figure 8: Border Crossing & Port Dwell Times along the Abidjan-Lagos Corridor Figure 9: Map of the ABJ-OUA Corridor Figure 10: Average container dwell time in Abidjan Port Figure 11: Distribution of truck travel time Figure 12: Truck turn-around time Figure 13: TRCB dwell time, non-abj containers Figure 14: TRCB dwell time, ABJ containers Figure 15: SETO dwell time, non-abj containers Figure 16: The TEM-OUA Corridor Figure 17: Total vessel traffic versus port throughput Figure 18: Average waiting time at anchor & at berth Figure 19: Distribution of truck travel time for import and export Figure 20: Turn-around time on the Tema-Ouaga corridor (2012) Figure 21: LFW-OUA Corridor Figure 22: Truck travel time, import Figure 23: Truck turn-around time, import Table 1: All corridors, Ixmport, Road, 1xTEU, One-way rotation (2016 & earlier)... 4 Table 2: Corridor performance, costs distribution & trends, 1xTEU, road & rail... 5 Table 3: Major West African ports - Total traffic (million tonnes)... 9 Table 4: Comparison Port and CBC Statistics (Import) Table 5: Petroleum products versus total traffic (import) Table 6: Container traffic in Ougadougou (Import) Table 7: Summary - Average daily corridor traffic Table 8: Abidjan, total traffic ( 000 tonnes/ 000 TEU) Table 9: Abidjan, import transit traffic ( 000 tonnes) Table 10: Abidjan, export transit traffic ( 000 tonnes) Table 11: Total traffic through Tema Port Table 12: Inward (import) transit traffic through Tema port Table 13: Lomé, total traffic ( 000 tonnes - TEU) Table 14: Lomé, transit traffic Import & Export ( 000 tonnes) Table 15: Traffic flow, loaded trucks with more than 2 axles, import ( ) Table 16: Daily average of vehicle traffic Table 17: Daily average of passenger traffic Table 18: Cross-border traffic as sampled by JICA (2012) Table 19: OuagaInter performance 2008 to Table 20: Summary: ABJ-OUA, Import, Road, 2xTEU, Full rotation Table 21: Summary: ABJ-OUA, Import, Rail, 2xTEU, Full rotation Table 22: Abidjan, import, road 1xTEU and 2xTEU (Travel time = one rotation) Table 23: Abidjan, import, Rail 1xTEU and 2xTEU (Travel time = one rotation) Table 24: Road versus Rail comparison Table 25: Summary Import: TEM-OUA, Road, 1xTEU, One-way travel Table 26: Summary Export: TEM-OUA, Road, 1xTEU, One-way travel Table 27: Summary: TEM-OUA, Export versus Import... 39

6 ATWA Stage 2 report: Corridor Diagnostic v Table 28: Import One 20 container (TEU), door-to-door to Ouagadougou Table 29: Export One 20 container (TEU), door-to-door from Ouagadougou Table 30: Summary: LFW-OUA, Export versus Import Table 31: Import One 20 container (TEU), door-to-door from Lomé to Ouaga Table 32: Border crossing time, documentary formalities export + import Table 33: Border crossing time, truck movement - export + import Table 34: Agencies at Aflao, Ghana Border with Togo... 57

7 ATWA Stage 2 report: Corridor Diagnostic vi List of Acronyms A-L ABJ ALCO ATWA BDS BF CBC CCI-CI CI CILSS CNATROT DfID DPO ECDPM ECOWAS EU GH GHS IRU ISRT IST JAPTU JBP JICA LFW LOS Abidjan-Lagos Abidjan Abidjan-Lagos Corridor Organization Accelerating Trade in West Africa Bordereau de Suivi International code for Burkinal Faso Conseil Burkinabè de Chargeurs The Ivorian Chamber of Commerce and Industry International code for Côte d Ivoire Comité permanent Inter-Etats de Lutte contre la Sécheresse dans le Sahel La Coopérative Nationale des Transporteurs du Togo Department for International Development (UK) Development Policy Operation European Centre for Development Policy Management Economic Community of West African States European Union International code for Ghana Ghana cedis International Transport Union Inter-State Road Transit scheme Inter State Transport Convention Joint Association of Port Transport Unions Joint Border Posts Japan International Cooperation Agency Lomé Lagos

8 ATWA Stage 2 report: Corridor Diagnostic vii NTB OCOD OPA OIC OTRAF OUA PMAWCA TEM TG TIR TMEA TRCB TS UEMOA UNECE USD WB XOF Non-Tariff Barriers l Observatoire de la célérité des Opérations Douanières Observatoire des pratiques anormales Office Ivoirien des Chargeurs Organisation des Transporteurs Routiers du Faso Ouagadougou Port Management Association of West and Central Africa Tema International code for Togo Transport International Routier Trade Mark East Africa Terminaux routiers à conteneurs du Burkina Temps supplémentaire (overtime) L Union Economique et Monétaire de Ouest Africaine United Nations Economic Commission for Europe US dollar World Bank Franc cfa

9 ATWA Stage 2 report: Corridor Diagnostic viii EXECUTIVE SUMMARY In order for ATWA to develop an evidence-based programme document, it is essential for the project to have an up to date picture of the performance and characteristics of the corridors in our focus region. Accordingly, during the Stage 2 of the Project, the Team conducted perception surveys of the cost and time performance of ATWA s three focus corridors (see Figure 1). Abidjan-Ouagadougou (ABJ-OUA) Tema-Ouagadougou (TEM-OUA) Lomé-Ouagadougou (LFW-OUA). This report also documents trends on these corridors by comparing the results of our 2016 diagnostic survey data with previous corridor reports available, thus covering data from 2008 to We also reviewed a number of reports published by the Abidjan Lagos Corridor Organisation (ALCO) in order to detail performance and trends on the Abidjan-Lagos (ABJ- LOS) corridor, albeit in a less extensive way. The diagnostic process has allowed the Team to achieve several objectives that will be essential in the next phase of programme design, namely: Providing an up-to-date picture of the performance of transit corridors in terms of time and cost. Identifying bottlenecks and issues that impact this performance. Establishing benchmarks that will allow measuring future improvements brought about by potential ATWA interventions. Discussing and identifying what those interventions could be with relevant stakeholders. The overarching aim of this process is to inform the development of a programme supporting the growth of trade - both regional and international, economic development and poverty reduction in the region. Crosscutting trends We found that all three corridors have seen improvements in both costs (in USD) and time. The average corridor costs have gone down by 16% and average corridor times by 6% over the last 4 to 8 years. In terms of distribution along the corridor, the port and transport legs have seen only slight improvements, but the OuagaInter terminal in Ouagadougou has seen impressive improvements over the period in both cost and time: 38% and 30% reductions respectively. Total costs: In US dollars, costs have gone down by about 16% over the last 4 to 8 years for all corridors. Reductions in costs in USD have happened all along the corridors. In local currencies the costs have gone up which is largely explained by the fact that the US dollar has gained in value against local currencies. Informal costs: The one component that has truly seen impressive improvement is payments of bribes in ports, at borders and at inland terminals. These payments are now reported to be only about a third of what they were when the earlier corridor studies were undertaken. We believe this is thanks to a combination of better procedures, which makes it more difficult

10 ATWA Stage 2 report: Corridor Diagnostic ix to demand bribes, and improved professionalization of government agencies. This positive development unfortunately does not apply to checkpoints along corridors. Cost distribution: Trucking costs absorb about 65% of the total corridor transport costs; ports take 20% while border crossings and clearance at the inland terminal account for about 15% of the total corridor costs for import. The greatest potential for reducing overall corridor costs therefore lies with the high cost of the trucking leg. This will be discussed further under issues and opportunities. Export versus import: Export is generally less expensive and faster than import. This is due to the imbalance in trade. Transporters offer lower prices for export in order to minimize losses by avoiding traveling empty to the port. Also, trucks carrying export cargo are less harassed because they are subject to fewer procedures. Rail versus Road traffic: Transporting a container by rail to Ouagadougou from Abidjan costs about two thirds of what it costs to transport the container by road. Still only a little over half (53%) of Burkinabè import from Abidjan travel by rail, apparently because there is insufficient rolling stock. The overall travel time by rail is however about 30% longer by rail than by road because of inefficiencies in the terminals. Total time: It takes on average about 11.5 days of processing and travel time to move a container from the time the vessel arrives at anchor until the container is cleared at the inland terminal. Total time has been reduced by an average of 6% with about 10% reduction on the Tema and Abidjan corridors and a 12% increase on the Lomé corridor. Stakeholders blame this primarily on increased delays at the dysfunctional Cinkassé Joint Border Post (JBP) border crossing. Port time: All reported times are ambiguous because different studies deal with discretionary times differently. Processing and handling times account for between 40% and 50% of total corridor time. However, containers often spend considerable time over and above the required processing time because it is convenient for a shipper to leave containers at the port. This discretionary dwell time is not included in the Lomé- Ouagadougou and Tema-Ouagadougou corridor reports but we are not sure whether it was included in the Abidjan-Ouagadougou report. Travel time: Average travel time on the corridors is about 4 to 5 days or about 40% of total corridor time. The Abidjan-Ouagadougou corridor is about 20% longer than the TEM-OUA and LFW-OUA corridors and travel time is proportionally longer. Border crossings and inland clearance: This component takes the least time, from 10% to 20% of total time. The three transit corridors that are the main focus of the ATWA Diagnostic study all have OuagaInter in Ouagadougou as terminal. Costs incurred in OuagaInter alone for import have been reduced by more than 50% from USD 1,184 in 2008 to USD 568 in During the same period, informal costs have been reduced by 60% from USD 149 to USD 60 and the standard time has gone from an average of 3 days in 2008 to less than 1 day in Traffic flows. West Africa saw a 20% growth in international trade flows to and from the region between 2010 and 2013, but trade flows have remained stagnant since then. West African international trade flows are highly unbalanced with import being about 4 times larger than exports in terms of volume.

11 ATWA Stage 2 report: Corridor Diagnostic x Corridor specific results: Abidjan-Ouagadougou ( ) Overall corridor costs in USD have gone down by 13% and corridor time has been reduced by 14% for road transport. The biggest improvements in costs are in the Ouagadougou terminals, while the biggest time gain was in the Abidjan Port. As for Rail, total corridor costs in USD saw a reduction of 11% with the biggest improvement - 31% - being recorded in the Ouagadougou rail terminal, SETO, and at the border crossings. Corridor specific results: Tema -Ouagadougou ( ) For the Tema-Ouagadougou corridor we consider the performance of both import and export. The overall corridor costs in USD for import has gone down by 16% and corridor time by 10% between 2008 and OuagaInter and the border crossings saw the biggest reduction in costs and times: by 48% and 61% respectively. During the same period, informal costs in ports and terminals were reduced by more than 60%. This is an encouraging development as it suggests that government agencies are becoming less corrupt, that new procedures make corrupt behaviour more difficult, or a combination of the two. Corrupt behaviour and harassment however appear to continue unabated at checkpoints along the corridors and is particularly severe for informal trade. For export, overall corridor costs have gone down by 30% while corridor time has been reduced by almost 25%. The transport leg showed the biggest improvement with a reduction in cost of 46%. Corridor specific results: Lomé -Ouagadougou ( ) Lomé port is the most important gateway to the world for Burkina Faso. Overall corridor costs have gone down by 16% since 2010, with substantial reductions in cost in the port and in Ouagadougou and border crossings, but little change in trucking costs. Overall time however has increased by 12% which stakeholders blame on inefficiencies at the Cinkasse JBP and teething problems with the Single Window in the Port. Comparing corridors: ABJ-OUA has the highest overall costs and the longest times in It is also the longest corridor although the fact that Bob Dialasso, the second largest city in Burkina Faso is on the corridor is an advantage. The other advantage of Abidjan is the railway corridor to Ouagadougou. TEM-OUA has the advantage of having the overall lowest cost. Otherwise the corridor has the disadvantages of language (English) and currency (Cedis). LFW-OUA has the advantage of being relatively low cost, relatively fast and having the same language and currency as Burkina Faso. The current biggest disadvantage is the problematic Cinkasse JBP. Abidjan-Lagos Corridor In addition to the three ATWA corridors, Lomé-Ouaga, Tema-Ouagadougou and Abidjan- Ouaga, the part of the Abidjan-Lagos corridor from Abidjan to the border between Togo and Benin is also part of the ATWA focus area. While we did not conduct surveys on this stretch of the corridor, we have used ALCO data on border crossings to estimate crossing times.

12 ATWA Stage 2 report: Corridor Diagnostic xi It appears that borders on the three ATWA focus transit corridors are generally crossed in less than a day, whereas trucks traveling along the Abidjan-Lagos corridor take on average more than 36 hours to cross a border. However, the situation is improving. During the last two years the median time it takes to complete documentary formalities on the ABJ-LOS corridor has been reduced by 35%. Performance improvement opportunities The region and the corridors still face many issues and offer many opportunities to perform better. Each corridor is different and presents specific challenges. However three areas have most potential for reducing costs, times and uncertainties across the board: i) ports; ii) clearance procedures; and iii) transport services. Ports. Time spent in ports represents on average 44% of total time for imports on ATWA focus corridors. Opportunities in ports are, among others, to reduce a) clearance times; b) to reduce congestion, and c) to reduce dwell times. Clearance times are still too long. One reason for this may be that ports still have numerous and poorly coordinated agencies involved in the clearing process. One opportunity is to have as many clearing processes delegated to customs as possible. Another way forward is the Single Windows, which are being put in place in all four focus countries. Congestion. Ports and port cities are heavily congested with trucks waiting to deliver, or pick up, goods. The way forward is to provide logistics platforms away from the port and bypass roads to keep heavy trucks away from urban areas Long dwell times. Cargoes on average spend too much time in ports because of long clearance times and because it is cheaper and convenient for shippers to leave their cargoes in the port rather than storing them outside the port. Improving coordination among government agencies and the logistics infrastructure outside the port is one way forward. Clearance procedures. In addition to what has already been discussed under ports above, interconnecting national customs systems on transit corridors offers promising benefits in terms of faster, more efficient procedures and fewer opportunities for fraudulent behaviour. Transport Services. Improved transport services probably offer the greatest potential benefits in terms of reduced costs. The current transport services situation in the focus area is characterized by a large number of small transporters, often with only one or two trucks that are very old, and which seem to make less than two rotations per month. Transit transport prices from gateways to Burkina Faso are largely set by l Organisation des Transporteurs Routiers du Faso (OTRAF), the most influential transporters organization in Burkina Faso, so that even the small operators can make a living, although not a very good one (trucks are often heavily overloaded to increase revenues, compensating for inadequate revenue-kilometres) By modernizing the transport sector it should be possible to achieve one or more rotations per week rather than per month and thus increase transporters revenues while at the same time reduce transport prices. This however will not be easy because of Political Economy considerations. Issues identified by stakeholders During the Diagnostic workshops organised to collect the data this study relies on, stakeholders discussed some 50 issues related to corridor performance. All of these issues

13 ATWA Stage 2 report: Corridor Diagnostic xii affect the cost and time indicators discussed above. Most of these issues are corridor specific and are discussed in the corridor chapters. It is however possible to categorise some issues that are common across all three corridors, keeping in mind that the list is not necessarily exhaustive: 1. Customs/clearance issues a. Single customs bond b. Customs interconnection c. Coordination with, and multitude of, other agencies (Single Windows, etc) d. Reliable power & Internet connectivity e. Coordinate border crossing working hours f. Solving public/private sector conflicts 2. GPS Tracking 3. Transport Sector Reform a. Access to freight b. Cargo sharing & tour de rôle c. Formalize the sector d. Access to finance/fleet renewal e. Stakeholder professionalization 4. Parking/congestion 5. Container deposits 6. Axle load implementation 7. Harassment and bribes at checkpoints 8. Obligatory freight insurance 9. Evidence-based policy making and advocacy Observatories 10. Corridor management These issues are discussed at greater length in section 9 below. Implication for ATWA programming This report confirms that corridors are performing better today than 4-8 years ago, but progress is slow. Average costs to shippers in US dollars have gone down by about 16% and average times have improved, by about 6%, but not on all corridors. Are there opportunities for radical improvements? Stakeholder consultations and the data presented above suggest that improvements are indeed possible. Customs & good clearance (Issue 1). Customs authorities and other government agencies with responsibilities for goods clearance offer a multitude of opportunities for ATWA programming: Custom interconnection: Interconnecting customs systems is underway in many countries in West Africa. Support to these efforts could go a long way in improving the efficiency of corridors, especially on the ABJ-LOS corridor.

14 ATWA Stage 2 report: Corridor Diagnostic xiii Single Windows: Single Windows can accomplish many things, but nothing is automatic. ATWA programing could involve helping Single Windows reach their full potentials through sharing experiences, good and bad, and documenting and disseminating the results. Single Windows will also be partners contributing to the Regional Observatory. Joint inspections: Government agencies involved in the clearance of goods should organize their work so that inspections are carried out jointly, or the responsibilities transferred to Customs. ATWA s role in this would be to support groups like the Borderless Alliance in providing the evidence for effective advocacy to achieve this goal. Wherever there are Single Windows for cargo clearance, it would fall under their responsibility to organize joint inspections Reliable power & Internet connectivity: This issue could be relatively straightforward to address. Border crossing working hours: Border posts on two sides of a border should coordinate their opening hours for better efficiency. ATWA can provide the evidence required for effective advocacy to achieve this goal. Public/private sector cooperation and problem solving: ATWA can promote the Abidjan Port model of l Observatoire de la célérité des Opérations Douanières and expand it to other ports/border posts/terminals and other agencies. ATWA can also work with advocacy groups to have government agencies provide minimum service and premium service guarantees. GPS Tracking (Issue 2). ATWA can promote the concept that international transporters should be equipped with GPS devices which can then be used by Customs and other agencies to track cargo while the transporters can use the tracking for fleet and operation management. This would provide end-to-end tracking; eliminate the need for service agencies to install and remove the devices along the corridor; and transporters would be responsible for the maintenance and good functioning of the units. Transport services (Issue 3). Whereas most improvements will be gradual, trucking prices have the potential to be lowered considerably if the transport environment can be changed so that the standard transit truck rotation can be increased from the current per month to 4-6 rotations or more per month and that prices are set accordingly. This is perfectly possible, in theory, but will not be easy to achieve, mainly for political economy reasons. Some factors that will be important for transport prices to come down are: Professionalization of transporters and drivers Transporters to be organized in co-operatives, or companies, with a minimum number of trucks, and with administrative support so that drivers don t have to spend time finding cargo. A competitive market. (Easier said than done, but not impossible) Access to finance to purchase newer trucks Shippers Councils recognizing that their primary role should be to look after shippers interests before the interest of transporters. Promoting a single West African transport market Opportunities for ATWA: The World Bank initiated transport services reforms in Côte d Ivoire and Burkina Faso in 2015 and is preparing a transport services reform program for Togo. ATWA should follow the development of these projects closely and once established in the region should explore with the Bank, the regional organizations and national public and private stakeholders how best to support, complement and build on the existing programs.

15 ATWA Stage 2 report: Corridor Diagnostic xiv Single transport market in ECOWAS. There is one issue where ATWA could be pro-active from day one, and that is lobbying for the creation of a single transport market in ECOWAS. Rationale: The bilateral cargo sharing rules are important barriers to a competitive market for transit cargo. However, as long as transit cargoes are the only cargoes land-locked countries transporters can compete for in a port, they are not likely to give up on their right to their cargo. One way to overcome this would be to create a single region-wide transport market, which would give land-locked countries transporters access to port countries national cargo, i.e. the right to cabotage in port countries. This would also give port country transporters access to national, export and cabotage cargo in land-locked countries. This can be pursued with a top down approach whereby ECOWAS creates a region-wide transport market, or with a bottom-up approach whereby countries agree to open up their transport markets on a bi-lateral basis and from there expand the open transport market to other countries, or a combination of the two. During the Diagnostic process the question of an open transport market was put informally to several stakeholders in all countries and was met with a surprisingly positive reception. OTRAF executives thought it was a good idea but were convinced that port-country transporters would never accept it. However the Executive Secretary of JAPTU in Ghana for example expressed the view that an open regional wide transport market was exactly what they wanted. This would not be an expensive program but would take time and require much lobbying effort at the regional and national level. Parking & Congestion (Issue 4). ATWA could assist in obtaining financing for Logistic Platforms like the one planned for Abidjan. In order to relieve congestions along the transit corridors, main roads must sooner or later be re-drawn to bypass cities and villages. ATWA could assist ECOWAS, UEMOA and national governments to plan for this, and in obtaining the necessary right-of-ways Container deposit (Issue 5). ATWA can be a facilitator in the necessary negotiations between shipping lines and regional and national stakeholders to find an effective solution to the container deposit issue. Axle load implementation (Issue 6). ATWA can assist regional and national authorities in monitoring the implementation of Règlement 14 (UEMOA s axle load regulation) as well as ECOWAS Axle Load Road Map, and disseminate lessons learned and best practices. Obligatory freight insurance (Issue 7). ATWA can support advocacy groups like the Borderless Alliance in providing the evidence required to resolve this issue, explained in section 9. Bribes at checkpoints & harassment (Issue 8). ATWA can assist UEMOA in re-starting OPA in order to ensure that reliable data is collected and authorities held responsible. It should be noted that Togo eliminated gendarmerie checkpoints 5 years ago without apparent problems. (Some stakeholders say that accidents have gone up, something we have not been able to verify) Observatories (Issue 9). This has been identified as an ATWA start-up project. Corridor management (Issue 10). See Public/private sector cooperation and problem solving under Customs & good clearance (Issue 1) above.

16 ATWA Stage 2 report: Corridor Diagnostic 1 1. INTRODUCTION In order for ATWA to develop an evidence-based programme document, it is essential for the project to have an up to date picture of the performance and characteristics of the corridors in our focus region. Accordingly, during the Stage 2 of the Project, the Team conducted perception surveys of the cost and time performance of ATWA s three focus corridors (see Figure 1). Abidjan-Ouagadougou (ABJ-OUA) Tema-Ouagadougou (TEM-OUA) Lomé-Ouagadougou (LFW-OUA). These corridors were selected during the first stage of the project on the basis of potential impact on poverty reduction, traction with potential partners and beneficiaries, international and regional trade volumes and complementarity with other development partner interventions. Figure1 Study corridors

17 ATWA Stage 2 report: Corridor Diagnostic 2 The diagnostic process has allowed the Team to achieve several objectives that will be essential in the next phase of programme design, namely: Providing an up-to-date picture of the performance of transit corridors in terms of time and cost. Identifying bottlenecks and issues that impact this performance. Establishing benchmarks that will allow measuring future improvements brought about by potential ATWA interventions. Discussing and identifying what those interventions could be with relevant stakeholders. This report also documents trends on these corridors by comparing the results of our 2016 diagnostic survey data with previous corridor reports available, thus covering data from 2008 to We also reviewed a number of reports published by the Abidjan Lagos Corridor Organisation (ALCO) in order to detail performance and trends on the Abidjan-Lagos (ABJ- LOS) corridor, albeit in a less extensive way. The overarching aim of this process is to inform the development of a programme supporting the growth of trade - both regional and international, economic development and poverty reduction in the region. This report is structured in several mains sections: Section 2 of the report discusses the performance of the 3 corridors concerned for the period, and draws broad conclusions as to where performance gains could be made. Section 3 of the report discusses traffic on the corridors. This enables us to detail the volume and composition of traffic prior to analysing performance. Section 4 reviews the data collected for the Ougainter Terminal in Ouagadougou, the end point of all corridors under review. Section 5 analyses data collected for the ABJ-OUA corridor, establishes trends over the period and reviews issues identified by stakeholders on that specific corridor. Section 6 analyses data collected for the TEM-OUA corridor, establishes trends over the period and reviews issues identified by stakeholders on that specific corridor. Section 7 analyses data collected for the LFW-OUA corridor, establishes trends over the period and reviews issues identified by stakeholders on that specific corridor. Section 8 reviews some of the data published and collected by ALCO on the ABJ-LOS corridor and draws conclusions as to where improvements could be made. Section 9 reviews broad categories of issues identified by stakeholders on more than one corridor. Section 10 draws implications for ATWA programming. Detailed procedures, costs and times in ports, corridors and inland terminals are presented in the Annexes, as are the methodological notes.

18 ATWA Stage 2 report: Corridor Diagnostic 3 2. ANALYSIS RESULTS: OVERVIEW OF CORRIDOR PERFORMANCE The results of this analysis are presented in Tables 1 and 2 below. Corridor-specific analysis and results are detailed in relevant chapters and in the Annexes. Table 1 details time and costs values for all corridors under study, and breaks those down between Port, Transport, border crossing and final clearance stages for a 20ft container over the period. It furthers gives averages across all corridors for total values and the value of these components under different period of study. This allows us to identify aggregate change over time for total values and their components for all three corridors. Table 2 details the cost distribution along the same time and cost component in percentages. It breaks the trends in time and cost for each individual corridor, and isolates trends in informal costs (bribes). In summary, the analysis finds that all three corridors have seen improvements in both costs (in USD) and time as shown in table 1 below. The average corridor costs have gone down by 16% and average corridor times by 6% over the last 4 to 8 years. The port and transport legs have seen only slight improvements, but the OuagaInter terminal in Ouagadougou and land border crossings have seen impressive improvements over the period in both cost and time: 38% and 30% reductions respectively. 2.1 Costs Total costs: In US dollars, costs have gone down by about 16% over the last 4 to 6 years for all corridors. Reductions in costs in USD have happened all along the corridors. In local currencies the costs have gone up which is largely explained by the fact that the US dollar has gained in value against local currencies. Informal costs: The one component that has truly seen impressive improvement is payments of bribes in ports, at borders and at inland terminals. These payments are now reported to be only about a third of what they were when the earlier corridor studies were undertaken. This could be thanks to a combination of better procedures, which makes it more difficult to demand bribes, and improved professionalization of government agencies. This positive development unfortunately does not apply to checkpoints along corridors. Informal payments at checkpoints along the corridor for transit cargo are included in the transport price and the trend of those payments is not known with certainty since the Observatoire des Pratiques Anormales (OPA) discontinued reporting in However, the Borderless Alliance reports that on the Ghanaian stretch of the Tema-Ouagadougou corridor the level of harassment at checkpoints is so high that a Stakeholder caravan was organized to raise awareness about the situation. We also know from the Comité permanent Inter-Etats de Lutte contre la Sécheresse dans le Sahel (CILSS) reports that intra-regional agricultural trade is still subject to very high levels of bribes and harassment 1. Cost distribution: Trucking costs absorb 63% of the total corridor transport costs; ports take 20% while border crossings and clearance at the inland terminal account for about 15% of the total corridor costs for import. The greatest potential for reducing overall corridor costs therefore lies with the high cost of the trucking leg. This is discussed further below. Export versus import: Export is generally less expensive and faster than import. This is due to the imbalance in trade: there are much more goods entering than exiting the country. 1 For example, in the March 2016 CILLS Report, the cost of transporting cattle from Burkina Faso to Accra is USD 907 with informal payments amounting to USD 164 or 18% of total transport costs.

19 ATWA Stage 2 report: Corridor Diagnostic 4 Transporters therefore offer lower prices for export in order to minimize losses by avoiding to travel empty to the port. Trucks carrying export cargo are also less harassed because they are subject to fewer procedures. Table 1: All corridors, Import, Road, 1xTEU, One-way travel, except for ABJ-OUA Costs (USD) Time (Days) 2016 Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders ABJ-OUA 4, , TEM-OUA LFW-OUA 3,275 (103) 3,441 (120) 622 (3) 1,971 2 (23) 682 (77) (33) 2, (87) Average 3,636 (112) 739 2, Costs (USD) Time (Days) Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders ABJ-OUA, ,481 1,054 2, TEM-OUA, ,444 (267) 468 (44) 2,664 (33) 1,312 (190) LFW-OUA, ,092 (349) 882 (138) 2,037 (49) 1,173 (162) Average 4,339 (308) 801 2,412 1, Change -16% (-64%) -8% -9% -38% -6% -2% -4% -30%

20 ATWA Stage 2 report: Corridor Diagnostic 5 Table 2: Corridor performance, costs distribution & trends, 1xTEU, road & rail Length Cost Time Change/Trend Period Corridor Total 2016 (USD) Port share Transport share Border & Clearance share Informal share Total average corridor time (days) Port share Travel time share Border & Clearance share Total Cost (USD) Informal cost Total time 1 Lomé-Ouaga Imp. 1,020 3,441 19% 60% 21% 2.5% % 32% 20% -16% -46% +12% Tema-Ouaga Imp 1,057 3,890 (3,275) 2 16% 67% 17% 2% % 40% 15% -13% -60% -10% Abidjan-Ouaga Imp. ROAD 1,232 4,192 23% 61% 16% n/a % 41% 12% -6% n/a -15% Average, Import 1,103 3,636 19% 63% 18% % 41% 15% -12% -64% -4% Abidjan-Ouaga Import 2,847 33% 45% 22% n/a 20 45% 30% 25% -12+% n/a +3% Rail versus Road 68% 129% 2016 Tema-Ouaga Exp 1,978 24% 68% 7% ß2.3% % 60% 12% -30% -29% -24% Export versus Import 58% 27% 2016 Notes: 1 - Time change/trend is calculated using Standard time and Average time. For the ABJ-OUA corridor 2/3 of travel time is used for comparisons to adjust a full rotation to a one-way trip. 2 - The Tema-Ouaga case was based on 22t of cargo. This didn t mater in 2012 but for comparison with other corridors, the 2016 case has been adjusted to the price of transporting a 15t container.

21 ATWA Stage 2 report: Corridor Diagnostic 6 Rail versus Road traffic: Transporting a container by rail to Ouagadougou from Abidjan costs about two thirds of what it costs to transport the container by road. Still only a little over half (53%) of Burkinabè import from Abidjan travel by rail, apparently because of insufficient rolling stock. The overall travel time by rail is however about 30% longer by rail than by road because of inefficiencies in the terminals. Costs with doubtful justification: Shippers must constantly be vigilant and fight charges with doubtful justification. We mention several in this report: in Togo, the convoy service Solidarity sur la mer was abolished a few years ago but it still invoiced for. Also in Togo a Togolese Bordereau de Suivi (BDS) for transit goods has been introduced even though Burkina Faso already requires a BDS. In Ghana, export transit cargo is charged USD 200 per consignment, which is a discriminatory charge. With the implementation of UEMOA s Règlement 14 regarding axle load control, OTRAF intends to increase transport prices by 25% to compensate for the reduced allowable loads. However containers were unlikely to have been overloaded in the past and are unlikely to be overloaded in the future even with the axle load controls being strictly implemented. Also, shipping lines are attempting to introduce a new terminal handling fee in West African ports event though the Terminal Operators already are charging terminal handling fees, just to mention a few examples. 2.2 Time Total time: It takes on average about 11.5 days of processing and travel time to move a container from the time the vessel arrives at anchor until the container is cleared at the inland terminal. Total time has been reduced by an average of 6% with about 10% reduction on the Tema and Abidjan corridors, but has increased by 12% on the Lomé corridor. Stakeholders blame this primarily on increased delays at the dysfunctional Cinkassé Joint Border Post (JBP). Port time: Port processing and handling times account for between 40% and 50% of total corridor time. However, containers often spend considerable time over and above the required processing time because it is convenient for a shipper to leave cargo in the port. This discretionary dwell time is not included in the Lomé-Ouagadougou and Tema- Ouagadougou corridor reports but we are not sure whether it was included in the Abidjan- Ouagadougou report. Travel time: Average travel time on the corridors is about 4 to 5 days or about 40% of total corridor time. The Abidjan-Ouagadougou corridor is about 20% longer than the TEM-OUA and LFW-OUA corridors and travel time is proportionally longer. Border crossings and inland clearance: This component takes the least time, from 10% to 20% of total time. 2.3 Comparing Corridors ABJ-OUA has the highest overall costs and the longest times in It is also the longest corridor although the fact that Bobo Dialasso, the second largest city in Burkina Faso is on the corridor is an advantage. The other advantage of Abidjan is the railway corridor to Ouagadougou. TEM-OUA has the advantage of having the overall lowest cost. Otherwise the corridor has the disadvantages of language (English), currency (Cedis) and excessive currency fluctuations. LFW-OUA has the advantage of being relatively low cost, relatively fast and having the same language and currency as Burkina Faso. The current biggest disadvantage is the problematic Cinkasse Joint Border Post (JBP).

22 ATWA Stage 2 report: Corridor Diagnostic 7 Ouagadougou terminals have seen the biggest improvements during the period in terms of both costs and time. These improvements were largely in place already in Cost and Time performance trends Transport & Logistic costs for formal trade in US dollars have on average gone down by about 12% in the ATWA focus area over the period This is a not a very dramatic improvement but considering that trends could have gone the other way, it reflects positive developments, which confirm that progress, although often slow, is happening. Informal payments are reported to have been reduced over the period by 64% - which is a very dramatic improvement. This could be indicative of government agencies behaving more professionally, but it may also be that technology has made corrupt behaviour more difficult, or a combination of the two. Corridor time on the whole hasn t changed dramatically. Two corridors show a 10% to 15% reduction in overall corridor times while one corridor shows a 12% increase in corridor time. 2.4 Performance improvement opportunities The region and the corridors still face many issues and offer opportunities to perform better. Each corridor is different and presents specific challenges. These are discussed in the sections 5 to 8 below. This observation notwithstanding commonalities can be discerned. We detail performance improvement opportunities on the three corridors under review in order of importance: i) transport services, ii) ports and iii) customs and clearance. Transport Services. With 63% of total cost, improved transport services offer the greatest potential benefits in terms of reduced costs. The current transport services situation in the focus area is characterized by a large number of small transporters, often with only one or two trucks that are very old, and which seem to make less than two rotations per month. Transit transport prices from gateways to Burkina Faso are largely set by l Organisation des Transporteurs Routiers du Faso (OTRAF), the most influential transporters organization in Burkina Faso, so that even the small operators can make a living, although not a very good one (trucks are often heavily overloaded to increase revenues, compensating for inadequate revenue-kilometres). By modernizing the transport sector it should be possible to achieve one or more rotations per week and thus increase transporters revenues while at the same time reduce transport prices. This however will not be easy because of Political Economy considerations discussed in Part 3. Ports. Time spent in ports represents on average 44% of total time for imports on ATWA focus corridors. There is ample room to compress this time. Opportunities in ports are, among others, to reduce a) clearance times; b) to reduce congestion, and c) to reduce dwell times. Clearance times at port are still too long, as is the case on border crossings, along the ABJ-LOS corridor in particular. One reason for this may be that ports still have numerous and poorly coordinated agencies involved in the clearing process. One opportunity is to have as many clearing processes delegated to customs as possible. Another way forward is the Single Windows, which are being put in place in all four countries under study.

23 ATWA Stage 2 report: Corridor Diagnostic 8 Congestion. Ports and port cities are heavily congested with trucks waiting to deliver, or pick up, goods. The way forward is it to build logistics platforms away from the port and bypass roads to keep heavy trucks away from urban areas. Long dwell times. Cargo, on average, spend too much time in ports because of long clearance times and because it is cheaper and convenient for shippers to leave their cargo in the port rather than storing them outside the port. Improving coordination among government agencies and the logistics infrastructure outside the port is the way forward. Clearance procedures. In addition to what has already been discussed under ports above, the following steps could be undertaken to improve clearance times. Interconnecting national customs systems on transit corridors offers promising benefits in terms of faster, more efficient procedures and fewer opportunities for fraudulent behaviour. Introducing joint inspections: Government agencies involved in the clearance of goods should organize their work so that inspections are carried out jointly. These performance improvement measures are discussed further in sections 9 and 10 below. 3. TRAFFIC FLOWS 3.1 Summary West Africa saw a 20% growth in international trade flows to and from the region between 2010 and 2013, but trade flows have remained stagnant since then. West African international trade flows are highly unbalanced with import being about 4 times larger than exports in terms of volume. Transit to and from Burkina Faso more than doubled to 3.5 million tonnes between 2010 and 2013 and have since fallen back to approximately 3.1 million tonnes per year. Lomé Port is Burkina Faso s most important gateway followed by Abidjan and Tema. The ABJ-OUA and TEM-OUA trade corridors are mostly busy with national traffic with only some 10% to 20% continuing to the land-locked country. On the LFW-OUA corridor 75% of corridor traffic continues to Burkina Faso. The LFW-OUA is therefore mostly a transit corridor rather than a national road. The ABJ-LOS corridor is characterized by a relatively low traffic of heavy trucks but very high passenger traffic, many traveling on foot. This suggests that informal trade is very high on the ABJ-LOS corridor. 3.2 Introduction Since 2014, Lomé port has become a hub port which handled about 6 million tonnes of container transhipment in The transhipment cargo is mostly destined for countries to the east of ECOWAS in Central Africa. It is useful to compare the ports in our region of focus to the rest of the region. The most important ports in terms on cargo volumes are Lagos (Apapa & Tin Can Island) with a total tonnage of 31,1 million tonnes in In second place is Abidjan with 20.8 million tonnes, third is Lomé, which overtook Tema in 2015 thanks to the strong growth of transhipment cargo. Tema and Dakar handled about the same amount of cargo, 12.2 million tonnes in 2013 followed by Cotonou, Conakry, Takoradi and San Pedro. See table 3 below.

24 ATWA Stage 2 report: Corridor Diagnostic 9 Table 3: Major West African ports - Total traffic (million tonnes) Description Apapa Lagos, NG Tin Can Island, Cotonou, BJ Lome, TG Tema, GH Takoradi, GH ,8 4,7 Abidjan, CI San Pedro, CI Conakry, GN Dakar, SN TOTAL Source: Port statistics A recent World Bank report 2, forecasts container traffic for West Africa to grow to 9.6 million TEUs in 2020 and 15.1 million TEUs in 2025, or almost four times the level in Burkina Faso traffic According to traffic statistics compiled by the Conseil Burkinabè de Chargeurs (CBC) 3, Burkina Faso imported about 3.1 million tonnes and exported about 450,000 tonnes of goods in This includes both regional and international cargo. As shown in Figure 2 below, Burkinabè imports of international and regional goods more than doubled to 3.5 million tonnes between 2010 and 2013 and have since fallen back to approximately 3.1 million tonnes per year. During the same period exports have increased by about 50% and reached 450,000 tonnes in 2015 (See Figure 3). Burkina Faso s external trade is highly imbalanced with export representing only 13% of total international trade flows. 2 World Bank Making the most of ports in West Africa, November There are two sources for Burkinabè traffic statistics: Ports and CBC. The CBC statistic includes both transit and intra-regional trade.

25 ATWA Stage 2 report: Corridor Diagnostic 10 Figure 2: Burkinabè import (tonnes) Figure 3: Burkinabè export (tonnes) 4,000, ,000 3,500,000 3,000,000 2,500, , , , ,000 2,000, ,000 1,500,000 1,000, , , , ,000 50, TOTAL ROAD RAIL TOTAL ROAD RAIL Source CBC Statistics Most of Burkina Faso s foreign trade in terms of traffic flows comes from Togo, followed in order of importance by Côte d Ivoire, Ghana and Benin. As for exports, the preferred corridors are Côte d Ivoire and Togo. See Figure 5 & 6 below. Figure 4: BF import from (tonnes) 1,400,000 1,200,000 1,000, , , , ,000 Figure 5: BF export to (tonnes) 250, , , ,000 50, BENIN CI Road CI Rail CI Total GHANA TOGO BENIN CI Road CI Rail CI Total GHANA TOGO

26 ATWA Stage 2 report: Corridor Diagnostic Discussion: CBC, Ports & other sources of statistics Two sources for Burkinabè international traffic have been available to us: Port statistics, which reports on goods declared as transit, and CBC statistics, which cover both transit and intra-regional trade. Confusingly it frequently happens that a port reports higher transit volumes than CBC reports transit and intra-regional combined (See numbers in red in table 4 below). It may be that some goods declared as transit is diverted, i.e. never reaches Burkina Faso. Such diversion can be either legal, or illegal. Transit fraud consists in declaring goods in transit in order to avoid paying duties in the arrival country only to unload trucks before reaching the border. This is a well-known scheme. It may also be that CBC statistics, particularly in regard to regional trade, are not accurate. In the case of Ghana for example, it is known that CBC has not had complete control of transit traffic for many years. Customs authorities have detailed statistics on border crossing traffic not only in value but also in volume and preliminary discussions with some officials suggest that they would be willing to share this information more widely (although there is much work to be done to make this happen). Table 4: Comparison Port and CBC Statistics (Import) PORT % BENIN (CBC) 205, , , , , , % Cotonou (Port) 437, , , , , ,312 TOGO (CBC) 736,738 1,093,343 1,033,083 1,426,194 1,397,053 1,259, % Lomé (Port ) 789, , , ,716 1,246,225 1,122,279 GHANA (CBC) 62, , , , , , % Tema (Port) 257, , , , , ,277 CI Road (CBC) 152,026 85, , , , ,457 CI Rail (CBC) 472, , , , , ,398 CÔTE D IVOIRE (CBC) 624, , , , , , % Abidjan (Port) 441, , , , ,395 1,115,832 Total (CBC) 1,629,132 2,094,599 2,579,546 3,256,855 3,353,488 3,310, Total (Ports) 1,926,113 2,021,803 2,071,634 2,367,713 2,730,250 3,094,700 Source: Port & CBC Statistics 3.5 Traffic: petroleum products Petroleum products are transported by tank trucks or wagons and therefore have different issues than bulk and break-bulk traffic. Petroleum products represented 44% of total cargo in 2015 and are the single most important class of cargo. See table 5 below. Table 5: Petroleum products versus total traffic (import)

27 ATWA Stage 2 report: Corridor Diagnostic 12 Year BENIN TOGO GHANA CI Road CI Rail TOTAL Petroleum TOTAL all traffic Petroleum % of total , ,847 17,952 28,619 44, ,132 1,816,544 37% , ,250 25,010 18, , ,757 2,181,830 41% , ,325 27,029 24, , ,061 2,708,526 37% , ,971 23,115 86, ,201 1,433,556 3,442,233 42% , ,855 64, , ,417 1,560,632 3,582,944 44% , ,531 91, , ,193 1,554,919 3,540,702 44% Petroleum as % of 2015 Total BF traffic 29% 31% 6% 21% 13% 100% 44% Country 2015 total Petroleum as % of country total traffic 504,060 1,259, , , ,398 88% 39% 17% 72% 37% Source: CBC Statistics In 2015, petroleum products represented almost all traffic coming from Benin, 39% of traffic from Togo, and 72% of road traffic and about 37% of rail traffic from Côte d Ivoire. 3.6 Container traffic The number of containers handled at the two inland terminals in Ouagadougou in 2012 to 2014 are summarized in table 6 below. The numbers suggest that the relative use of containers has fallen during the period from a high of 32% of bulk and break-bulk traffic in 2012 to a low of 24% in This trend is worrying and highlights the need to promote containerisation in West Africa as the benefits using containers are many; in particular containers are seldom overloaded. Table 6: Container traffic in Ougadougou (Import) TRCB Truck terminal (TEU) SETO Rail terminal (TEU) Total - TEU Petroleum (tonnes) Total traffic (tonnes) Bulk & Break bulk (tonnes) Containerization* (% of bulk & breakbulk)

28 ATWA Stage 2 report: Corridor Diagnostic ,020 9,964 36, ,061 2,708,526 1,713,465 32% ,765 11,353 38,118 1,433,556 3,442,233 2,008,677 28% ,668 8,197 32,865 1,560,632 3,582,944 2,022,312 24% Source: TRCB & SETO; Note: * Assuming 15 tonnes per TEU 3.7 Regional traffic according to the 2012 JICA survey JICA conducted an ambitious one-time traffic survey during the period April-June 2012, counting all vehicles during four-day periods at a number of survey points throughout the UEMOA region plus Ghana. Although the survey is 4 years old, it is still of interest as it is the only one of its kind and it shows the relative importance of the various corridors and type of traffic. The survey illustrates for example how the transit corridors are first and foremost national corridors: the traffic flow that enters Burkina Faso on the ABJ-OUA corridor is only about 10% of the traffic volume around Yamoussoukro in central Côte d Ivoire, and only 20% of traffic volumes around Kumasi in central Ghana on the TEM-OUA corridor. The LFW-OUA corridor is the exception with 75% of traffic volumes in central Togo continuing into Burkina Faso. See table 7 below. None of the traffic statistics discussed take into consideration seasonal variations due to the harvesting of cotton and other important agricultural products, or demand fluctuations caused by major holidays. Still it is encouraging, from a reliability point of view, that the daily cargo volumes reported by JICA are of the same relative magnitude as the total import reported by CBC.

29 ATWA Stage 2 report: Corridor Diagnostic 14 Table 7: Summary - Average daily corridor traffic Corridor Description Vehicles Trucktrailer Container trucks Cargo volume (tonnes/day) Totasl import (Road CBC) Passengers 7 BF-CI border , ,000t 3,000 ABJ- OUA 13 Central, CI 2, ,200 28,100 8 BF-GH 400,000t ,200 TEM- border 800 OUA 15 Central, GH 6, ,200 62,500 9 BF-TG 925,000t ,800 LFW- border OUA 17 Central, TG 2, ,400 11,500 Source: JICA Traffic Survey

30 ATWA Stage 2 report: Corridor Diagnostic 15 Figure 6: Average daily type and number of vehicles (2012) 4 Figure 7: Average daily volume of passengers & goods (2012) 4 See

31 ATWA Stage 2 report: Corridor Diagnostic Abidjan-Ouagadougou Port & Corridor traffic Traffic: Abidjan Port throughput has been stable during the last 6 years at about 21 million tonnes per year, except for 2011 when the port experienced a sudden 5 million tonnes drop in throughput due to the political crisis that year. Export through the Port represents more than 30% of total throughput. See Table 8 below. This relatively balanced traffic is unusual in West Africa, and an important advantage for the Port. Export through Tema port for example only represents 11% of port throughput. Table 8: Abidjan, total traffic ( 000 tonnes/ 000 TEU) Description % Import CI 11,954 8,945 12,223 12,429 12,430 12, % Export CI 9,492 6,932 7,878 7,231 6,545 6, % Transshipment 5,738 3,640 2,985 2,989 1,776 1,433 Import - Transit ,390 1,568 1,535 1, % Export - Transit % TOTAL 22,484 16,643 21,714 21,489 20,813 21, % Number of TEUs Fishing harbour Source: Port Statistics; Note: The Port does not include Transhipment in Total throughput Whereas total port traffic has remained stable, transit traffic has grown steadily from 847,000 tonnes in 2010, or 4.6% of port throughput to 2,3 million tonnes in 2015, representing 11% of throughput, while Côte d Ivoire exports during the same period has fallen from 9.5 to 6.1 million tonnes. In 2015, Burkina Faso was the destination for 59% of Port of Abidjan transit and the port is the second most important gateway for Burkina Faso, after Lomé Port. The remaining transit traffic is destined for Mali. Total transit to and from Burkina Faso has grown by more than 150% and transit to Mali by almost 75% during the last 6 years. See Table 9 and 10 below. Table 9: Abidjan, import transit traffic ( 000 tonnes) % Burkina Faso ,116 59% Mali % Niger % Other countries % TOTAL ,390 1,568 1,535 1, % Table 10: Abidjan, export transit traffic ( 000 tonnes) % Burkina Faso % Mali % Niger % Other countries % TOTAL %

32 ATWA Stage 2 report: Corridor Diagnostic Tema-Ouagadougou Port & Corridor traffic Traffic through Tema port grew by more than 60% between 2009 and 2013, but has remained stagnant since then (See table 11 below). As for transit traffic, the Port of Tema was not an important player until political unrest in Côte d Ivoire in made it an attractive alternative to Abidjan. Transit traffic eventually grew to a high of 865,000 tonnes in From that point Tema started loosing importance as a transit port and reached a low of 437,000 tonnes in Since then transit traffic has again grown and reached 719,000 tonnes in This is interesting, and surprising, because Tema port and many Ghanaian transporters have long been complaining that they have been loosing transit traffic to other corridors as a result of Ghana implementing axle load regulations earlier and stricter than other countries. Table 11: Total traffic through Tema Port Description % (2015) Imports 6,260 5,694 6,823 8,432 9,383 10,014 8,923 10,043 83% Exports 1, ,155 1,532 1,477 1,494 1,463 1,303 11% Transshipment % Transit-Import % Transit- Export % Total 8,727 7,406 8,697 10,749 11,469 12,181 11,126 12, % TEU 555, , , , , , , ,502 Table 12 below shows the destination of Tema port transit traffic. More than 80% went to Burkina Faso in Table 12: Inward (import) transit traffic through Tema port Description Burkina Faso % (2015) 350, , , , , , , ,196 83% Mali 207, ,306 55,153 52,356 44,550 49,606 26,449 44,024 6% Niger 241,417 45,697 76,036 65,727 51,722 47,974 50,217 26,469 4% Others 42,289 78,782 56,555 65,265 62,646 57,418 36,540 54,867 8% Total 841, , , , , , , , % 3.10 Lomé-Ouagadougou Port & Corridor traffic Since the opening of the new Lomé Container Terminal (LCT) in October 2014, Lomé Port has become the third busiest port in West Africa after Lagos and Abidjan with 15.3 million tonnes of throughput in 2015, a 66% increase over Almost all of the new traffic is transhipment destined for ports further east along the Gulf of Guinea. With this development, transhipment has become an important element in West African logistics. Mediterranean Shipping Company (MSC), which is a major owner of LTC has a concession in the San Pedro Port in Cote d Ivoire as well, which is also focusing on transhipment.

33 ATWA Stage 2 report: Corridor Diagnostic 18 With the opening of LTC, containers will be transported to West Africa in large container vessels, which will reduce the cost to and from the hub port, for further transport in smaller vessels to the ultimate port of destination. For example, the first call at LCT was the 6,500- TEU DS National in December Future calls are planned to be with 8,500-TEU vessels, much larger than the current maximum size calling in West Africa, and, when completed in 2017, LCT will be able to receive 14,000-TEU vessels 5. The composition and trend of Lomé port throughput is summarized in table 14 below. Traffic was growing slightly up to 2013 but has since stagnated, apart from the transhipment component. Before Lomé Port became a transhipment hub, Togo import typically (in 2011) represented about 40% of total traffic, export 18%, transit 35% and transhipment 8%. In 2015, one year after inaugurating LCT, transhipment already represented more than 50% of port throughput. This is likely to grow as LCT expands. Lomé port traffic composition is summarized in table 13 below. Table 13: Lomé, total traffic ( 000 tonnes - TEU) Description % % Togo Import 3,299 3,282 40% 3,460 4,441 3,899 3,872 25% Transit Import 2,205 2,600 32% 2,841 2,135 2,718 2,432 16% Sub-total Import 5,504 5,883 71% 6,301 6,576 6,617 6,304 41% Togo Export 1,489 1,503 18% 1, % Transit Export % % Sub-total Export 1,731 1,746 21% 1, % Transshipment % 327 1,159 1,703 8,065 52% Total 1 8,006 8, % 7,772 8,699 9,280 15, % TEU 340, , , , , ,700 Source: Port Statistics; Note 1: Abidjan does not include transhipment in total throughput. Transit: Transit traffic represented 35% of total throughput in 2011 and only saw its relative importance drop with the advent of transhipment. Interestingly, the most important customer for Lomé transit is a cement plant in eastern Ghana close to the Togo border, which is linked to Lomé Port by a dedicated rail line. Lomé port is a gateway for three land-locked countries, but Burkina Faso is by far the most important. See Table 14 below. In fact, Lomé has been the most important gateway for Burkina Faso since at least 2010, although Abidjan is a close competitor. 5

34 ATWA Stage 2 report: Corridor Diagnostic 19 Table 14: Lomé, transit traffic Import & Export ( 000 tonnes) Description Burkina Faso 789, , , ,716 1,246,227 1,122,179 Niger 318, , , , , ,918 Mali 138, , ,732 93, ,121 80,140 Others 1,109,449 1,317,733 1,577,383 1,029, ,460 1,168,262 Total 2,358,634 2,846,239 2,940,057 2,294,799 2,907,168 2,624,514 Source: Port statistics 3.11 Abidjan-Lagos Corridor Vehicle traffic. According to ALCO Year 5 report (July 2014 to June 2015), the average daily traffic of heavy trucks (more than 2 axles) during the sampling period, varied from a low of 8.4 trucks per day at Noë, carrying import or transit to Côte d Ivoire, to a high of 14.4 at Seme, carrying import or transit to Nigeria. See table 15 below. This very low traffic of heavy trucks is surprising, but contrary to the situation on transit corridors, most cargo on the A-L corridor is apparently transported by smaller trucks with less than 3 axles, which are not part of the ALCO sample 6. Figure 8: Border Crossing & Port Dwell Times along the Abidjan-Lagos Corridor Source: Abidjan-Lagos Corridor Organization 6 Clarification on ALCO sampling, personal correspondence.

35 ATWA Stage 2 report: Corridor Diagnostic 20 Table 15: Traffic flow, loaded trucks with more than 2 axles, import ( ) Traffic from East to West Traffic from West to East NOE, CI AFLAO, GH SANVEE CONDJI, TG KRAKE, BJ ELUBO, GH KODJOVIAKO PE, TG HILLACON DJ, BJ SEME, NG Nb of day s Nb of ve h Nb of day s Nb of veh Nb of day s Nb of ve h Nb of day s Nb of veh Nb of day s Nb of veh Nb of days Nb of veh Nb of days Nb of veh Nb of day s Nb of veh AUG OCT DEC FEV AVR JUL Total Daily avera ge We do not have recent information on cross-border traffic composition but a report from contains detailed and interesting information as per table 16 below. 7 Mission D observation Des Mauvaises Pratiques En Matiere De Libre Circulation Des Personnes Et Des Biens Le Long Du Corridor De Migration Abidjan Lagos, Rapport Final Trimestre VI Période : Décembre 2008 Janvier 2009 Février 2009

36 ATWA Stage 2 report: Corridor Diagnostic 21 Table 16: Daily average of vehicle traffic Source: ALCO Mission D observation Des Mauvaises Pratiques (2009) According to this report, there was a daily average of 616 vehicles of which only 12 were truck trailers at Aflao on the Ghana side of the border. At Kodjoviakope on the Togo side of the border, the daily average was 1,197 vehicles of which 147 were truck trailers, much higher than what was reported in the Year 5 report. At other border crossings between Togo and Benin the number of articulated trucks were also relatively high at trucks per day. This leaves us puzzled as to why reported heavy truck traffic is so low in 2014/15. Passenger traffic. According to the ALCO 2009 report, the busiest border crossing for passenger traffic was Aflao-Kodjoviakope between Ghana and Togo with a daily average of about 15,700 entering Aflao, 98% on foot and more than half of them women, and 13,900 entering Kodjoviakope, 94% on foot and 53% women. See Table 17 below. The Noë-Elubo border crossing between Côte d Ivoire and Ghana is much less busy with about 7,400 entering Noë (CI), 80% on foot and 40% women, while about 3,600 people entered Elubo (GH), 61% on foot and 44% women. The very high passenger traffic at the Aflao-Kodjoviakope border crossing suggests that informal trade is prevalent at that border.

37 ATWA Stage 2 report: Corridor Diagnostic 22 Table 17: Daily average of passenger traffic Source: ALCO Mission D observation Des Mauvaises Pratiques (2009) For comparison we have summarized the result of the 2012 JICA Traffic Survey, based on a 4-day sampling period 8, in table 18 below. JICA found traffic at Noé-Elubo in 2012 to be 69 truck-trailers per day carrying an average of 16 tonnes (possibly many empties?) while daily traffic at Aflao-Kodjoviakope was 493 trucktrailers carrying an average of 34 tonnes. Again, this contradicts ALCO s numbers, which is puzzling. Table 18: Cross-border traffic as sampled by JICA (2012) Border Total vehicles Of which Trucktrailers Cargo (tonnes) Passengers CI-GH 2,304 3% = 69 1,100 9,000 GH-TG 1,174 42% = ,000 6,500 TG-BJ 2,752 7% = 193 4,600 10,200 BJ-NG 715 4% = ,300 Source: JICA Traffic Survey (2012) Although the statistic is confusing, it is clear that the Abidjan-Lagos corridor is very different from the transit corridors and that it is characterized by large movements of people, fairly evenly distributed between men and women, and many on foot. There is some heavy vehicle traffic, but trade appears to be dominated by smaller trucks. 8 JICA sampling period: Total 4 days (1 weekend day, 3 weekdays) Duration: 24 hours from 6:00 a.m. to 6:00 a.m.

38 ATWA Stage 2 report: Corridor Diagnostic OUAGADOUGOU 4.1 Summary Costs incurred in OuagaInter for import have been reduced by more than 50% from USD 1,184 in 2008 to USD 568 in During the same period, informal costs have been reduced by 60% from USD 149 to USD 60 and the standard time has gone from an average of 3 days in 2008 to less than 1 day in These are dramatic improvements. 4.2 Introduction The three transit corridors that are the main focus of this study all have OuagaInter (road) and SETO (rail) in Ouagadougou as terminals. The performance of this end point is therefore of relevance for all corridors under study. 4.3 Selected development projects Transport Sector reform project in BF and CI, supported by the World Bank. This is discussed in more detail in section 10 below. Customs Interconnection: BF & TG Custom systems will be interconnected on the Lomé-Ouagadougou corridor at Cinkassé with financial support by JICA, The BF & CI Custom systems will be interconnected on the Abidjan-Ouagadougou corridor with financial support by the EU-funded and IFC/World Bank implemented Improved and Facilitated Trade in West Africa project Single Window: SYLVIE was officially inaugurated in Ouagadougou in February SYLVIE will be a single point of entry for documents required for pre-clearance, integrating 7 government agencies, 5 private sector agencies, 10 banks and 5 insurance companies and the time it takes to go through the customs pre-clearance process will be reduced from 15 days to 3 days. The number of documents required for importing will be reduced from 10 to 7, and for export from 10 to Trends: what has changed The OuagaInter container terminal, the Terminaux routiers à conteneurs du Burkina (TRCB), is much improved since the first USAID Trade Hub corridor study 10 reported on the situation in 2008: Improvement in terms of Cost: TRCB reduced its tariff in The average forwarders fee has dropped from XOF 225,000/ TEU to XOF 150,000/TEU. 9 A USD 4.5 million project supported by The Investment Climate Facility for Africa (IFC), du GIE-GAINDE 2000 du Sénégal et de la Chambre de commerce et d industrie du Burkina Faso (CCI-BF) See 10 USAID WATH - Trends in Transport And Logistics on The Tema-Ouagadougou Corridor (2010)

39 ATWA Stage 2 report: Corridor Diagnostic 24 Truck demurrage charges have been eliminated due to shorter turnaround times. In the 2010 Tema-Ouagadougou Corridor study, truck demurrage costs were approximately USD 360 per truck. Improvement in terms of Time: Payments can now be made from any participating bank s branches (in 2012, payments were made at the Customs cashier office). Customs agents performance has improved thanks to the newest version of UNCTAD s Customs systems, ASYCUDA World. Forwarders tasks are performed in a more professional manner. This is especially true for containerized cargo which is usually imported by formal traders who are using professional forwarders. Bulk cargoes on the other hand are mostly handled by less professional traders who tend to use the services of informal forwarders. Pre-arrival declaration is frequently used which speeds up the clearance process. Better tracking of cargo by traders and forwarders. The inspection company, Cotecna, manages its files more efficiently, and traders follow-up. The result is that costs incurred in OuagaInter for import have been reduced by more than 50% from USD 1,184 in 2008 to USD 568 in During the same period, informal costs have been reduced by 60% from USD 149 to USD 60 and the standard time has gone from an average of 3 days in 2008 to less than 1 day in As for export from OuagaInter, performance is good but has not improved much during the period. See Table 19 below. Table 19: OuagaInter performance 2008 to 2016 Year Total costs Time Source (Informal costs in brackets) Import (USD) Export USD) Import (Days) Export (Days) ,184 (149) 171 (12) Tema-Ouaga corridor report (2010) ,015 (143) 168 (2) Lome-Ouga corridor report (2012) (56) 147 (0) Tema-Ouaga corridor report (2013) (60) 147 (0) ATWA Diagnostic Source: Corridor reports 4.5 Issues & opportunities: OUA terminal and Burkina Faso Issues and opportunities common to all corridors are discussed in Chapter 9 and 10. Issues and opportunities specific to Burkina Faso are discussed below. Clearance procedures Clearance procedures at OuagaInter, and at the Ouagadougou Rail terminal, SETO, can be improved in a number of ways: Interconnecting the custom systems along the corridors will make it possible to exchange documents electronically. This will reduce the time and effort required for

40 ATWA Stage 2 report: Corridor Diagnostic 25 data entry at the border and in OuagaInter, and improve the pre-arrival clearing of goods, thus speeding up processes and reducing costs. It will also make it more difficult to present fraudulent documents, Make the use of the Single Window platform, SYLVIE, mandatory to ensure effective procedures for all import and export. Improve access to SYLVIE through better connectivity to Asycuda for Customsapproved freight forwarders, and training of stakeholders Encourage the use of Information Technology by offering tax exemptions for computers Establish a permanent working group with participation of Customs and private sector stakeholders to resolve operational issues. The l Observatoire de la célérité des Opérations Douanières (OCOD) in Abidjan Port appears to be a successful model in this regard. OCOD is discussed in greater detail in Chapter 9. Customs convoys. The Burkinabè Customs is still using convoys for cargo traveling from a Burkinabè border to the inland terminals where the goods are cleared, or for goods transiting Burkina Faso. This slows down the flow of traffic and should be replaced with a GPS tracking system. Such a system is apparently in the pipeline but not yet operational. Containers and certain other cargoes are exempted from travelling in convoys.

41 ATWA Stage 2 report: Corridor Diagnostic ABIDJAN-OUAGADOUGOU CORRIDOR 5.1 Summary Overall corridor costs in USD have gone down by 13% and corridor time has been reduced by 14% for road transport. The biggest improvements in costs are in the Ouagadougou terminals, while the biggest time gain was in the Abidjan Port. As for Rail, total corridor costs in USD saw a reduction of 11% with the biggest improvement - 31% - being recorded in the Ouagadougou rail terminal, SETO, and at the border crossings. 5.2 Introduction After Lagos, the Port of Abidjan is the busiest port in West Africa, with an annual throughput of 21.4 million tonnes in Figure 9: Map of the ABJ-OUA Corridor The Abidjan-Ouagadougou (ABJ-OUA) corridor consists of both a road and a rail corridor. Furthermore, the road corridor to Bamako in Mali follows the ABJ-OUA corridor all the way to Ouangolodougou only 20 km from the Burkinabè border. The Abidjan-Ouagadougou (ABJ-OUA) is an important national corridor and serves the centre of the country including Bouaké, the second-largest city in Ivory Coast, and Yamassoukro, the national capital. In Burkina Faso the corridor passes through Bobo-Dioulasso, the second largest city in Burkina Faso, on its way to Ouagadougou. 5.3 Selected development projects Improving port maritime access: Access from the sea to the Port of Abidjan is through the Vridi Canal. The limited width and depth of the Canal has prevented larger vessels from calling the Port. Vridi Canal is now being widened so that it will be possible to handle ships over 250m in length and with 16m draughts. Port expansion: The construction of a second container terminal started in October 2015 and is scheduled to be completed in 4 years. (Estimated cost: USD 500 million) Transport Sector reform project in BF and CI, supported by the World Bank. This is discussed in more detail in Chapter 10.

42 ATWA Stage 2 report: Corridor Diagnostic 27 Customs Interconnection: BF & CI Custom systems will be interconnected on the Abidjan-Ouagadougou corridor with financial support from the EU and implemented by the IFC/World Bank Improved and Facilitated Trade in West Africa project. Single Window: A Foreign Trade Single Window was established in Côte d Ivoire in July 2013 and is managed by Webb Fontaine 11. The Single Window is web-based and accessible in the port of Abidjan and at the Noë border with Ghana.. Stakeholders are however still calling for the creation of a Single Window focused on port operations where payments can be made electronically and all port stakeholders IT systems can be connected, so it appears that there is still work to be done. 5.4 Trends: ABJ OUA Corridors Corridor improvements since 2012: Asycuda World, the latest version of UNCTAD s customs system, is now installed and running in both Côte d Ivoire and Burkina Faso The Asycuda World Transit Module is in place and working. A single Customs bond is fully implemented for the two countries and paid only once for both countries in Abidjan during the customs process. In 2012, a private company handled GPS devises and tracking on behalf of CCI-CI. GPS tracking is now managed directly by the CCI-CI. Waiting time for rail wagon availability has been reduced by 2 to 3 days to an average of 5 days Costs & times: In 2013, the World Bank published a report 12, prepared by Nathan Associates, on the performance of the Abidjan-Ouagadougou corridors (with data from 2012). The data from that report was update in April-May 2016 during the ATWA Diagnostic workshops. The results for the road corridor are summarized in table 20 and for the rail corridor in table 21 below. 13 Summary, Road: As the original case in the 2013 Nathan study was based on 2xTEU we continue to use that case for comparing the corridor with itself over the period. When comparing the corridor with other corridors we use the 1xTEU scenario World Bank - Logistics Cost Study of Transport Corridors in Central and West Africa; Nathan Associates (2013) 13 Notes on methodology: (i) The Nathan report used the transport of 2xTEU per truck to calculate the cost per container case 1b in the report - which is more cost effective than transporting only one TEU on a truck. As it happens, our local consultant participated in the preparation of the Nathan report and had notes for 1xTEU. We therefore have data for transporting both 2xTEU and 1xTEU and use the 2xTEU case to evaluate how the performance of the corridor has developed over time, and the 1xTEU when comparing the ABJ-OUA corridor with other corridors. (ii) In regard to time, the Nathan study reports on truck rotations rather than one-way travels. When we compare the ABJ-OUA corridor performance with other corridors we therefore assume that a one-way trip takes about 2/3 the time of a rotation. (iii) The Nathan study includes informal payments but does not report them as separate costs; iv) For the ABJ-OUA corridor we only consider import.

43 ATWA Stage 2 report: Corridor Diagnostic 28 In summary, overall costs in USD have gone down by 13% and corridor time has been reduced by 14%. The biggest cost improvement was in the Ouagadougou terminals, while the biggest time gain was in the Abidjan Port. See table 20 below. Table 20: Summary: ABJ-OUA, Import, Road, 2xTEU, Full rotation Costs (USD) Time (Days) Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders ,669 1,778 3,832 1, ,643 1,948 4,361 1, Change -13% -9% -12% -21% -14% -20% -11% 0% Source: Nathan study (2013) and ATWA Diagnostic Summary, Rail: As for Rail, total corridor costs in USD saw a reduction of 11% with the biggest improvement, 31%, being in the Ouagadougou rail terminal, SETO, and border crossings. See table 21 below The longer total times reported for rail transport are largely blamed on long delays waiting for rolling stock and inefficiencies in the terminals. This however, was contested by some stakeholders who maintain that the overall time for rail has decreased by 7 days thanks to new equipment bought by SITARAIL and improvements brought about by the transit module in Asycuda World (implemented in 2012) and better processes at destination. See table 21 below. Table 21: Summary: ABJ-OUA, Import, Rail, 2xTEU, Full rotation Costs (USD) Time (Days) Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders ,837 1,684 3,093 1, ,565 1,788 3,245 1, Change -11% -6% -5% -31% 3% -14% 0% 67% Source: Nathan study (2013) and ATWA Diagnostic Costs Port Terminals As of June 1, 2016 shipping lines have introduced a Terminal handling fee. This is a new charge, in the amount of about EUR 115/150 (USD 128/167) for 20 and 40 containers respectively 14 and highly contested because importers already pay a terminal handling fee to the terminal operator. This new charge is not included in the tables above. The situation is similar in Ghana where the government suspended the charge in early August

44 ATWA Stage 2 report: Corridor Diagnostic 29 Costs 16 Road corridor, basic scenario 2xTEU In US dollars transport prices have gone down by 13% to 15% over the 4-year period from 2012 to 2016, whereas in fcfa (XOF), costs have gone up by about 3%. The difference is due to the FCFA having lost about 15% in value against the US dollar over the same period. See table 22 below Table 22: Abidjan, import, road 1xTEU and 2xTEU (Travel time = one way & full rotation) 4a. Abidjan-Ouagadougou, IMPORT-ROAD (1xTEU) 1,232 km 4b. Abidjan-Ouagadougou, IMPORT-ROAD (2xTEU) 1,232 km Total costs (USD) Process & travel time (Days) Total costs (USD) Process & travel time (Days) Total costs (USD) Process & travel time (Days) Total costs (USD) Process & travel time (Days) Port 1, , , Transport Leg, Road 1, 2 2, (One way) 2, (One way) 4, (Round trip) 3, (Round trip) Borders & Terminal , , Total, Road USD 4, (One way) USD 4, (One way) USD 7, USD 6, Change USD: - 6% XOF: +10% -14% USD: -13% XOF: +3% -14% Note: USD 1.00=XOF 493 (WB/Nathan 2012); USD = XOF 582 (2016); Times are the same for 1xTEU and 2xTEU. 1) Road transport prices are OTRAF rates. 2) One-way travel time for the inland road transport leg is assumed to be 2/3 of a full rotation 16 Detailed cost breakdowns can be found in the Annexes

45 ATWA Stage 2 report: Corridor Diagnostic 30 Costs Rail corridor, basic scenario 2xTEU For the rail corridor, the situation is similar to the road corridor: Prices in US dollars have gone down by about 11% but increased slightly (5%) in the local currency. See table 23 below. Table 23: Abidjan, import, Rail 1xTEU and 2xTEU (Travel time = one rotation) 4c. Abidjan-Ouagadougou, IMPORT-RAIL (1xTEU) 1,232 km 4b. Abidjan-Ouagadougou, IMPORT-RAIL (2xTEU) 1,232 km Total costs (USD) Process & travel time (Days Total costs (USD) Process & travel time (Days) Total costs (USD) Process & travel time (Days Total costs (USD) Process & travel time (Days) Port 1, , , Transport Leg, Rail 1 1, (Round trip) 1, (Round trip) 3, (Round trip) 3, (Round trip) Borders & Terminal , , Total, Rail USD 3, USD 2, USD 6, USD 5, Change USD: -12% XOF: +4% +3% USD: -11% XOF: +5% +3% Note: USD 1.00=XOF 493 (WB/Nathan 2012; USD = XOF 582 (2016); Times are the same for 1xTEU and 2xTEU

46 ATWA Stage 2 report: Corridor Diagnostic 31 Time in port - Customs procedures Thanks to the Observatoire de la célérité des Opérations Douanières (OCOD) 17 in the Port of Abidjan, clearance procedures are relative effective and conflicts are speedily resolved. OCOD data shows that Customs processes last an average of 3 days, so there is still plenty of room for improvements. Note: ODOD was established in 2004 and is an agreement between Customs and the private sector in the Port of Abidjan. The agreement stipulates in essence that the private sector agrees to pay permanent overtime while customs in return commits to quick, effective service and no harassment. Discussions with stakeholders in Abidjan suggest that it is a mutually satisfactory and effective agreement. Time in port dwell time In 2012, the Asycuda rail transit module was being implemented in the port, with the result that it took a minimum of 4 days to clear rail cargo, as proper procedures were not in place and, in any case, not well known. The average dwell time in the port for a transit container was 10.3 days when transported by road and 9.6 days when transported by rail. The median is several days shorter and appears to be 7 days for rail and 8 for road transport. This means that some transit containers take much longer than most and thus skew the average. This merits further investigation. Figure 10: Average container dwell time in Abidjan Port 17

47 ATWA Stage 2 report: Corridor Diagnostic 32 Time in port discussion According to the interviews, forwarders and shippers have identified four main reasons for the long time spent in port as follows: Customs declaration is not submitted prior to the vessel arrival, or immediately after, due to, among other things, late arrival of documentation, slowness of receiving money from the consignee, or the fact that the port offers 21 days free time and thus encourage shippers to use the port for storing purposes. Also, trucks when loaded can spend a lot of time in Abidjan prior to leaving for the border as illustrated by analysis of tracking data by the Chamber of Commerce. The data shows that for more than 50% of the trucks the departure for the borders happens between 2 to 10 days after exiting the port. Long waiting time for wagons at the Sitarail terminal. Customs process for rail still manual (Transport International par Fer - TIF) for railways. Travel times trucking Overall trucking time is reported to have decreased somewhat thanks to improved terminal procedures in Ouagadougou. Truck travel time and truck utilization was documented by the Observatoire des pratiques anormales (OPA) which gave 5.2 days as the average travel time (including border crossings) from Abidjan to Ouagadougou for a loaded truck in However the average turnaround time is much longer: 15.3 days. Turn-around times are even longer on the other corridors. This situation is not likely to have improved much since 2012 but there are no recent data since OPA no longer publishes this information. See Figure 12 and 13 below. Figure 11: Distribution of truck travel time Figure 12: Truck turn-around time Source: OPA ABJ-OUA Corridor report (2013) %C2%AD-ouagadougou

48 ATWA Stage 2 report: Corridor Diagnostic 33 Time - rail transport Rail corridor times are somewhat longer than road travel time because of longer delays in the port and inland terminal. Road versus Rail In 2016, the overall corridor cost is almost 50% higher for road than for rail transport when it comes to moving a single container. This is a relative improvement for rail as in 2012 the rail advantage was only about 40%. However when two containers, or one forty-foot container, are transported on a truck the advantage of rail is reduced to 14%. Stakeholders report that moving two 20 -foot containers on a single truck is much more common than moving a single container. This makes perfect sense since transporting a single container is about 25% more expensive per container. Road transport is however faster than rail: In 2012 road transport was faster by 8% and in 2016 this advantage had increased to 22%. See Table 24 below. The difference is due to inefficiencies in the rail terminals. In addition to lower cost, rail has several other advantages over road: No customs bond. No checkpoints and harassment along the corridor Fewer accidents Less traffic on roads

49 ATWA Stage 2 report: Corridor Diagnostic 34 Table 24: Road versus Rail comparison 4a. Abidjan-Ouagadougou, IMPORT (1xTEU) 1,232 km One rotation 4b. Abidjan-Ouagadougou, IMPORT (2xTEU) 1,232 km One rotation Total costs (USD) Process & travel time (Days) Total costs (USD) Process & travel time (Days) Total costs (USD) Process & travel time (Days) Total costs (USD) Process & travel time (Days) TOTAL, ROAD 4, , , , TOTAL, RAIL 3, , , , ROAD vs RAIL +39% -8% +47% -22% +16% -8% +14% -22% 5.5 Issues & opportunities: ABJ-OUA The main challenges specific to the ABJ-OUA corridors, discussed during the ATWA Diagnostic workshop, include: Port congestion The land access to the Abidjan Port is very congested, as is the Port itself. Also, loaded transit trucks spend much time in Abidjan prior to leaving for the border. Currently the Port allows trucks to stay in the port because otherwise the trucks would park in Abidjan, which would aggravate the problem for everybody. The solution envisioned by the Port is a planned, but not funded, Logistic Platform some 26 km north of Abidjan. This platform will, among other things, provide parking and living facilities for drivers. Customs Single Window: In spite of the Single Window for foreign trade managed by Webb Fontaine, there is still a demand for a Single Window dedicated to port operations where payments can be made electronically and all port stakeholders IT systems can be connected. Slow customs processes: Customs processes in the Port take on average 3 days. This should be sped up.

50 ATWA Stage 2 report: Corridor Diagnostic 35 TIF (transport International par Fer): The TIF customs process for rail is still done manually and should be automated Rail transport. The waiting time for Sitarail wagons is too long. Stakeholders urge Sitarail to invest in more rolling stock and improve its booking system. GPS Tracking. The Chamber of Commerce is responsible for the GPS tracking used in Côte d Ivoire. As is the case on other corridors, the tracking covers only the road from the port to the BF border where the units are removed and returned to the point of departure. Stakeholders are requesting that a system be put in place that a) allows tracking all along the corridor to the final destination and b) is accessible also by operators. Trucking convoys & escorts. Formal escorts for transit trucks are no longer required in CI thanks to GPS tracking. However for trucks traveling south the Office Ivoirien des Chargeurs (IOC) offers convoys for added security and less harassment. It is also used for the transport of animals. These convoys are supposedly offered as a service but some stakeholders suggest that they are not really voluntary and therefore would like to see them abolished. Container dwell time at TRCB & SETO terminals in Ouagadougou. Analysis of TRCB (Container terminal for road) data shows 50% of containers not originating in Abidjan have a dwell time of less than 1 day, and 80 % of the containers have left the terminal after only 2 days. For cargo coming from Abidjan on the other hand average dwell time is about 13 days. The dwell time in SETO (Container terminal for rail) is similar with 50 % of the cargo having left the terminal after 8/9 days (See Figure 14, 15 and 17 below). The reason for the long dwell times for cargo from Abidjan is not known, and should be investigated. Figure 13: TRCB dwell time, non-abj containers Figure 14: TRCB dwell time, ABJ containers Source: TRCB data 2015

51 Figure 15: SETO dwell time, ABJ containers ATWA Stage 2 report: Corridor Diagnostic 36

52 ATWA Stage 2 report: Corridor Diagnostic TEMA-OUAGADOUGOU CORRIDOR 6.1 Summary For the Tema-Ouagadougou corridor we consider the performance of both import and export. The overall corridor costs in USD for import has gone down by 12% and corridor time by 10% between 2008 and OuagaInter and the border crossings saw the biggest reduction in costs and times: by 48% and 61% respectively. During the same period, informal costs in ports and terminals were reduced by more than 60%. This is an encouraging development as it suggests that government agencies are becoming less corrupt, that new procedures make corrupt behavior more difficult, or a combination of the two. Corrupt behavior and harassment however appear to continue unabated at checkpoints along the corridors and is particularly severe for informal trade. For export, overall corridor costs have gone down by 30% while corridor time has been reduced by almost 25%. The transport leg showed the biggest improvement with a reduction in cost of 46%. 6.2 Introduction Tema port is the third most important gateway to world trade for Burkina Faso, after the ports of Abidjan and Lomé. Tema Port handled a total of 12.1 million tonnes in Tema transit traffic represents only 6% of total port traffic, which is low, and is primarily destined for Burkina Faso. Figure 16: The TEM-OUA Corridor The Tema-Ouagadougou corridor is essential for Ghana s internal trade and also an important corridor for regional trade. The corridor passes through Kumasi, Ghana s second largest city and an important regional centre for auto parts, among others. Also on the corridor is Techiman with one of the largest agricultural markets in the sub-region, hosting traders from Togo, Benin, Cote D Ivoire, Burkina Faso, and Mali

53 ATWA Stage 2 report: Corridor Diagnostic Trends: Tema Ouagadougou Corridor Costs & times: Reports 20 on the performance of the Tema-Ouagadougou corridor were published in 2010 (with data from 2008) and again in 2013 (with data from 2012). The results from these reports were update in April-May 2016 as part of the Diagnostic exercise and the outcome is summarized in table 25 below. Summary. On the Tema-Ouagadougou corridor we consider both import and export. For import the overall corridor costs in USD has gone down by 12% and corridor time has been reduced by 10% between 2008 and In a sense this means that not much has changed over 8 years, but a closer look shows a big improvement in Ouagadougou and at the border crossings where costs and times have been reduced by 48% and 61% respectively. During the same period informal costs in ports and terminals have been reduced by more than 60%. Table 25: Summary Import: TEM-OUA, Road, 1xTEU, One-way travel Costs (USD) informal costs in brackets Time (Days) Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders ,890 (103) 622 (3) 2,586 (23) 682 (77) ,058 (125) 443 (19) 2,622 (14) 866 (56) ,444 (267) 468 (44) 2,664 (33) 1,312 (190) Change % (-61%) -25% (-93%) -3% (-30%) -48% (-59%) -10% +16% +19% -61% Source: USAID Trade Hub studies & ATWA Diagnostic For export, overall corridor costs have gone down by 30% while corridor time has been reduced by almost 25%. The transport leg shows the biggest improvement with a reduction in cost of 46%. See Table 26 below. 20 USAID West Africa Trade Hub (WATH): Transport and Logistics Costs on the Tema-Ouagadougou Corridor, 2010; and Trends in Transport And Logistics on the Tema-Ouagadougou-Bamako Corridor, 2013

54 ATWA Stage 2 report: Corridor Diagnostic 39 Table 26: Summary Export: TEM-OUA, Road, 1xTEU, One-way travel Costs (USD) informal costs in brackets Time (Days) Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders ,978 (46) 483 (19) 1,035 (10) 460 (8) ,451 (50) 396 (31) 1,520 ( (8) ,808 (65) 313 (11) 1,920 (33) 575 (21) Change % (-29%) +54% (+73%) -46% (-70%) -20% (-62%) -24% -30% -31% -10% Source: USAID Trade Hub studies & ATWA Diagnostic Export corridor costs were about two third the cost of corridor import costs in In 2016 the relative cost of export has been reduced further to about 50% of import. See Table 27 below. Table 27: Summary: TEM-OUA, Export versus Import Costs (USD) Time (Days) Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders % 78% 40% 67% 26% 16% 24% 64% % 67% 72% 44% 31% 27% 35% 28% Change -19% +16% -44% +52% -16% -41% -31% +129% Source: USAID Trade Hub studies & ATWA Diagnostic Costs - Import: In US dollars the total corridor costs has seen a slow but steady downward trend from USD 4,444 in 2008 to USD 3,980 in Overall costs are still very high but at least they are not increasing, as costs often do. In FCFA (XOF), the total corridor costs have increased by about 13%, while costs in cedis have risen sharply. In both cases local cost have changed relative to the cost in USD because their value against the dollar has fallen. See Table 28 below. Costs - Export: Export costs and time trends are detailed in the table above. The trucking cost for export was 40% of the import trucking cost in The reason for this is the heavy imbalance of Burkinabè international trade. Export volumes represent only 10% of import volume in 2015, which means that many trucks are obliged to travel empty to Tema. Transporters therefore offer cheap rates to attract export cargo. In US dollars, the cost of exporting one TEU has gone down by 30% during the period 2008 to See Table 29 below. Informal costs: Reported informal costs for import have fallen from 6% of total costs in 2008 to less than 3% of total costs in This we believe is the result of efforts to professionalize government agencies slowly paying off, and procedures having improved so

55 ATWA Stage 2 report: Corridor Diagnostic 40 that there are fewer opportunities for corrupt behavior. For export there are fewer procedures involved and less money involved than for import At the same time, anecdotal evidence suggests that the number of checkpoints and controls and related harassment has increased substantially along the Ghana part of the corridor since the latest corridor report. It is difficult to know the actual situation, as OPA has not published new data since the first half of Corridor time: For import, the overall corridor time has gone down by about 10% over the period. Port time: From 2010 to 2012, the number of vessels calling the port went from about 1,800 to 1,500 where it has stayed since then. See Figure 19 below Figure 17: Total vessel traffic versus port throughput ,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, Total port throughput (MT) Waiting time at Anchorage (days) Time at berth (days) With total traffic growing steadily up to 2012, waiting time at anchor and time at berth went up as well. However since 2013, average waiting time at anchor has been reduced by 33% to 2 days (See Figure 18 above) For container vessels with fixed berthing window there should be no waiting at all. Time at berth ha also been reduced slightly since Overall corridor time for containers is therefore more like 8 days in 2016 compared to 10.5 days in 2008, a reduction of 24%.

56 ATWA Stage 2 report: Corridor Diagnostic 41 Figure 18: Average waiting time at anchor & at berth ,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Total port throughput (MT) Number of vessel calls Road travel time: Truck travel time and truck utilization was documented by the Observatoire des pratiques anormales (OPA) and was used for the 2012 perception survey: days (including border crossings) for import, and days for export. See Figure 20 below. Figure 19: Distribution of truck travel time for import and export 2012 It is noteworthy that in spite of the relatively short travel time, the average time a truck took to make a rotation in 2012 was more than 26 days (see Figure 21 below). We have no indications that the situation has improved since. Shortening the truck rotation time and increasing the number of rotations a truck does in month is the most promising route to lower trucking prices and better revenues for truckers.

57 ATWA Stage 2 report: Corridor Diagnostic 42 Figure 21: Turn-around time on the Tema-Ouagadougou corridor (2012) Border Crossing time: The World Bank West Africa Regional Transport and Transit Facilitation Project reports that Border crossing time at Ghana/ Burkina Faso border posts was reduced from five hours at the baseline to approximately an hour and a half at project closure. This exceeded the target of four hours

58 ATWA Stage 2 report: Corridor Diagnostic 43 Table 28: Import One 20 container (TEU), door-to-door to Ouagadougou PORT (Cargo 22 tonnes 22 ) Total costs (Informal costs in bracket) (USD) Standard & total time (Including delays) (Days) Total costs (Informal costs in bracket) (USD) Standard & total time (Including delays) (Days) Total costs (Informa l costs in bracket) (USD) Standar d & total time (Includin g delays) (Days) Anchorage and Berthing 23 n/a n/a n/a Port, yard, customs & forwarding 468 (44) (19) (3) Sub-total Port 468 (44) (19) (3) ROAD TRANSPORT LEG 2,664 (33) ,622 (14) ,586 (23) Border Crossing at Paga 0 (24) (19) (0) Border Crossing at Dakola 128 (17) (17) (17) OUAGARINTER 1,184 (149) (56) (60) INLAND Borders & Clearance 1,312 (190) (56) (77) GRAND TOTAL, 20 Import 4,444 (267) ,058 (125) ,890 (103) Trends Import versus 2008 USD -9% -15 % Trends - XOF XOF ±0% - USD - 4% XOF +13% 7% - 22 In the Lome-Ouaga case the cargo was 17t 23 24hr days - Delay component is the waiting time at anchor 24 Road transport time maintained from 2012 as no new data available.

59 ATWA Stage 2 report: Corridor Diagnostic 44 Trends - GHS GHS +68% - GHS +238% - XOF/USD exchange rate Burkina CPI GHS/USD exchange rate Ghana CPI Source: Midpoint; 2012-Midpoint; 2016-April 26 Source:

60 ATWA Stage 2 report: Corridor Diagnostic 45 Table 29: Export One 20 container (TEU), door-to-door from Ouagadougou Total costs (Of which informal costs in bracket) (USD) Standard & total time (Including delays) (days) Total costs (Of which informal costs in bracket) (USD) Standard & total time (Including delays) (days) Total costs (Of which informal costs in bracket) (USD) Standard & total time (Including delays) (days) Ouagarinter 171 (12) (0) (0) Border Crossing at Dakola 45 (9) (8) (8) 0.3 Border Crossing at Paga 359 (0) (0) (0) INLAND Borders & Clearance 575 (21) (8) (8) ROAD TRANSPORT LEG 1,920 (33) ,520 (11) ,035 (19) TEMA PORT 313 (11) (31) (19) GRAND TOTAL, 20 Export 2,808 (65) ,451 (50) ,978 (46) GRAND TOTAL, 20 (Current GHS) GHS 2,794 (65) GHS 4,480 (91) GHS 7,605 (177) GRAND TOTAL (Constant 2008 GHS) GHS 2,794 (65) GHS 2,859 (58) GHS 3,214 (75) 27 Source: Midpoint; 2012-Midpoint; 2016-April XOF/USD exchange rate GHS/USD exchange rate

61 ATWA Stage 2 report: Corridor Diagnostic 46 CHANGE FROM 2008 IN USD & LOCAL CURRENCIES Trends - 20 Export USD -13% +6% USD -30% -24% Trends - 20 Export (XOF) XOF -5% XOF -9% Trends - 20 Export (GHS) GHS +60% GHS +172% IMPORT VERSUS EXPORT IMPORT-EXPORT, Comparison Grand TOTAL, export (USD) 2,808 (65) ,451 (50) ,978 (46) Grand TOTAL, Import (USD) 4,444 (267) ,058 (125) ,373 (103) Export versus import (USD) 61% (24%) 31% 60% (40%) 39% 51% (45%) 26%

62 ATWA Stage 2 report: Corridor Diagnostic Important changes The following are some of the improvements that have taken place on the corridor: Road: Significant improvements have been made to many stretches of the corridor such as Accra-Kumasi, Buipe to Tamale, and Dakola to Ouaga. Tema Port: Procedures have been streamlined somewhat and better parking and rest facilities for drivers have been provided. Burkina Faso: Exemption of containerized cargo from the convoy system OuagaInter: Improvements to Cotecna inspection procedures. 6.5 Development projects Tema Port Expansion: The Maersk Group and Meridian Port Services (MPS), the terminal operator, and Ghana Ports and Habours Authority (GPHA) have agreed to a USD 1.5 billion expansion of Tema port with work expected to start in In addition to the port expansion project, the partners have agreed in principle to expand the road from Tema to Accra, which is expected to massively improve the infrastructure and logistic efficiency between the Port and the main city 28. National Single Window: For many years Tema port community network (GCNet) was considered the first Single Window in West Africa. GCNet is still managing the Ghana Single Window website 29. Functionalities however were limited. As a result, the government, in September 2015, initiated the Ghana National Single Window project to develop the country s trade and increase government revenues. The government contracted West Blue Consulting to undertake the project and tasked it to assist Ghana Customs to take over responsibility for import classification and valuation, and implement the Ghana National Single Window Issues & opportunities: TEM-OUA Corridor The starting point for the ATWA Diagnostic workshop was the result of a perception survey, which the Borderless Alliance conducted in mid-2015 where 280 stakeholders were interviewed. The issues that came up during this survey became the basis for discussions at the ATWA Diagnostic workshop in Accra in May Tema Port transit import procedures and costs Stakeholders comprehension of procedures at Tema port is acceptable, however processing is perceived to be slow and expensive. Significant delays are currently experienced at the Meridian Port Services (MPS) terminal to secure container permits, needed to take the containers out of the terminal. Delays of up to an entire day are experienced. Positioning of containers at GPHA also results in considerable delays Government agencies should conduct joint inspections. This would apply to Customs, Environmental Protection Agency, Food and Drugs Board, Veterinary Services, Police, Bureau of National Investigations, National Security, etc

63 ATWA Stage 2 report: Corridor Diagnostic 48 Invoicing for GPS tracking is currently done per consignment but should be done per truck as several consignments may be loaded unto the same truck. There are insufficient rest areas for truck drivers in Tema The issue of VAT being charged on transit cargo is hindering the transit trade through Ghana. Neighbouring countries like Togo and Côte d Ivoire do not apply VAT to transit. This makes transit through Ghana less competitive. Tema Port transit export procedures and costs Shipping line networks being down cause containers to miss their vessels. This results in delays at the port and additional costs for exporters. It is necessary to ensure that incoming cargo from Burkina, meant for export through Tema follows correct procedure. The issue is that some exporters are not properly registered and do not have all the requisite documentation. In order to obtain the required customs bond, they purposely pretend that the cargo belongs to registered companies. This causes serious problems, which are time consuming to resolve when the cargo arrives in Tema. Paga Import/Export procedures and costs At the Paga border, economic operators generally understand the procedures and processing time and transaction costs were perceived as acceptable. It should be encouraged to arrange payment of forwarding fees of 10,000 FCFA to forwarders in Paga acting on behalf of parent companies in Tema directly between companies. This will reduce the exchange of monies at the border and will discourage the activities of Goro boys (unlicensed individuals playing the role of freight forwarders) where they still exist. There has been some progress in the establishment of a parking lot at the border. Land has apparently been acquired (compensation has already been paid to some border dwellers). The process however needs to be expedited. Transit fee of USD 200 per export declaration. This fee is discriminatory and should be eliminated. Dakola procedures and costs In general, no major changes to costs and procedures were noted since the last assessment in Overall cost remains the same as well as does the time and delays at borders. No customs escort needed for Containerized cargo (since 2012). Customs escort still in place for non-containerized cargo. Use of ASYCUDA World instead of ASYCUDA ++ (in 2012). Some challenges of access to Customs system because of power and Internet connection failures. OuagaInter procedures and costs Notable reduction in terms of costs incurred in cargo processing: The OuagaInter container terminal (TRCB) has reduced its tariff from Average forwarders fee has dropped from XOF 225,000 to XOF 150,000 per TEU.

64 ATWA Stage 2 report: Corridor Diagnostic 49 Trucking demurrage has been nil since 2008 due to a better truck turn-around at destination. General observations The general perception by 60% of stakeholders interviewed by the Borderless Alliance is that the trade environment on the Tema-Ouagadougou transit corridor has deteriorated over the past two years: The main challenge reported on the Tema-Paga section of the corridor was the multiple police checkpoints and unlawful extortion, which leads to long delays. The issue of exchange rate volatility will have to be addressed with the assistance of Ship Owners and Agent Association of Ghana (SOAAG). The requirement for payment of trucking fares in CFA Francs and the unavailability of the currency in Ghana is an issue that needs to be addressed to avoid the carriage of large amount of cash along the roads. An earlier initiative of the Sahel Sahara Bank in Tema as an avenue to obtain CFA francs no longer works. Negotiations are needed with other banks to facilitate access to CFA Francs in Tema. There are insufficient road signs on the corridor. This should be address with the National Road Safety Commission (NRSC). Though it is widely perceived that transit cargo volumes are decreasing, Tema Port statistics actually show that the volumes are increasing. This false perception may be due to the fact that more cargo is being allocated to Burkina trucks since the stricter implementation of the cargo sharing arrangement (2/3 of cargo to be carried by Burkinabe trucks and 1/3 by Ghanaian trucks) began. Between September 2015 and March 2016, JAPTU 31 evidence shows that Burkina registered truck during this period carried 80.6% of transit cargo, Ghana carried 17.6%, whilst the remaining 1.8 % was carried by trucks of other nationalities. 31 Joint Association of Port Transport Unions

65 ATWA Stage 2 report: Corridor Diagnostic LOME-OUAGADOUGOU CORRIDOR 7.1 Summary Overall corridor costs have gone down by 16% since 2010, with substantial reductions in cost in the port and in Ouagadougou and at border crossings, but little change in trucking costs. Overall time however has increased by 12% which stakeholders blame on inefficiencies at the Cinkasse JBP and teething problems with the Single Window in the Port. 7.2 Introduction As detailed above Lomé port is the most important gateway to world trade for Burkina Faso. The LFW-OUA corridor is also considerably different than the other two as 75% of traffic volumes in central Togo continue into Burkina Faso, whereas the large majority of traffic on the other two is national traffic. 7.3 Selected developments Port expansion: The Lomé Container Terminal (LCT) started operations in October 2014 and will by 2017 have the ability to receive 14,000-TEU capacity vessels and handle some 2.2 million TEU per year. LCT is the second container terminal in Lomé, the first being Togo Terminals operated by Bolloré Africa Logistics. Figure 20: LFW-OUA Corridor Single window: SEGUCE Togo 32 was established in December 2013 to operate a Single Window for Foreign Trade in Togo. In July 2014 the maritime import phase was initiated in the Port of Lomé followed by a maritime export module in March 2015, and air and land traffic modules in December Solidarité sur la mer (SLM) abolished: Lomé Port created SLM in the nineties in order to facilitate transit and eliminate harassment and bribes along the road. It did this by organizing transit trucks in convoys. SLM was still in place when the last Trade Hub Lomé-Ouagadougou corridor report was published in 2012 but has since been abolished and replaced by GPS tracking. It appears that SLM was effective in its early days, but by the time OPA became operational in 2006, SLM had already become a costly barrier to trade: i) SLM cost XOF 20,000 per truck, ii) it no longer prevented harassment and bribes at checkpoints; iii) convoys for Burkina Faso left 32 Established by Decree No / PR on 12 December 2013

66 ATWA Stage 2 report: Corridor Diagnostic 51 only twice a week and therefore caused unnecessary delays, and iv) the convoys caused congestion along the road and upon arrival at the border. Customs Interconnection: Togo and Burkina Faso both have Asycuda World, developed by UNCTAD. These systems will be interconnected at the Cinkasse JBP with financial support from JICA. Improved roads: Several stretches of LFW-OUA corridor have been re-built or improved, in particular: The 14.1 km Lomé bypass - a project of XOF 34 billion project, started in 2011 to improve traffic flows in the Togolese capital and facilitate the large flow of heavy trucks traveling from Lomé Port to the land-locked countries of Burkina Faso, Niger and Mali. A 18km bypass of the famous Aledjo Fault, which is currently very steep and difficult for heavy truck-trailers to cross. A 12km bypass of the Défalé Mountains, the most dangerous stretch on highway No. 1 between Lomé and the extreme north of the country. Two traffic accidents left 19 dead and 53 injured in February 2014 and 5 dead and 21 wounded in March Interesting Changes: A Single Window, SEGUCE, is being implemented Trucking convoys have been replaced (but are still invoiced) by GPS tracking Introduction of a Bordereau de Suivi de Cargaison (Cargo Tracking Note) in Togo for cargo in transit. This seems to have no other purpose than to collect extra revenue. 7.4 Trends: Lomé-Ouagadougou Corridor Costs & times - Summary: The change in cost and times in USD on the Lomé-Ouagadougou corridor is summarized in table 30 below. For more details see Table 31. Overall corridor costs have gone down by 16% since 2010, with substantial reductions in costs in the port and in Ouagadougou and border crossings, but no change in trucking costs. Overall time however has increased by 12% which stakeholders blame on inefficiencies at the Cinkasse JBP and teething problems with the Single Window in the Port. Changes in costs: Over the period 2010 to 2016, overall corridor costs have gone down by 16% in US dollars but up by 8% in the local currency. The difference is due to the fact that the fcfa has lost 22% in value against the dollar over the period. The biggest change is in the inland terminal, OuagaInter, in Burkina Faso where costs have gone down by about USD 300, or 35%. Many changes for the better have taken place in OuagaInter. These changes are discussed in the chapter on Burkina Faso. Solidarité sur la mer has been abolished, but the service fee is still applied. Another irritant, and additional cost, is caused by Togo insisting on transit cargo having a Cargo Tracking Note (CNT)/Bordereau de Suivi de Cargaison (BSC) in spite of the fact that CBC already requires a BSC for all cargo destined for Burkina Faso. The cost is EUR 40 per TEU 34. This is highly unusual and stakeholders do not understand how it is justified. The BSC is used by Shippers Councils as a source of revenue and for collecting statistics. With a little effort the

67 ATWA Stage 2 report: Corridor Diagnostic 52 statistical information could probably just as well be collected from the official transport documents and there certainly should be no need for two BSC for the same cargo/voyage. Trucking costs: The rate published by OTRAF in 2012 was XOF 1,450, However, OTRAF rates are negotiable so the average rate suggested to by stakeholders at the time, XOF 950,000 or USD 2,037 for 1xTEU, was used in the survey. For 2016 the official OTRAF rate of XOF 1,200,000 for 1xTEU (USD 2,062) is used because it appears to be the one currently applied. Time overall: Despite new procedures in place, standard transit time increased over the period by about 1 day while average delays has increase by about 3 days. Reasons given by stakeholders include: The Single Window was being implemented in 2015, which caused some delays. The continued dysfunction of the Cinkasse Joint Border Post has caused average delays to increase by about a day and a half. Trucking OPA: Truck travel and turn-around times were published by l Observatoire des pratiques anormales (OPA) in 2013 and the results are summarized in Figure 23 and 24 below. OPA found that the average travel time was 4.6 days, rather longer than what stakeholders reported in the perception surveys. We don t know why the times are so different but it may be that drivers who provided the information to OPA included waiting time for convoys and forwarders did not, but this is speculation. What is striking is the very long truck turn-around time, 22 days. With such turn-around times the average truck can at most hope for one and a half rotation per month, which doesn t allow for many revenue-kilometers. Table 30: Summary: LFW-OUA, Cost & time trends, 1xTEU, one-way Costs (USD) Time (Days) Total Port Transport Ouaga & Borders Total Port Transport Ouaga & Borders ,441 (120) 645 (33) 2, (87) ,092 (349) 882 (138) 2,037 (49) 1,173 (162) Change -16% (-66%) -27% (-75%) +1% -37% (-46%) +12% +22% 0% Quoted in the USAID WATH - Transport & Logistics Costs on the Lomé-Ouagadougou Corridor (2012)

68 ATWA Stage 2 report: Corridor Diagnostic 53 Table 31: Import One 20 container (TEU), door-to-door from Lomé to Ouagadougou PORT Total costs (Of which informal costs in bracket) (USD) Time range (including delays) (days) Total costs (Of which informal costs in brackets) (USD) Time range (including delays) (days) Anchorage and Berthing n/a N/a Port, yard, customs & forwarding 882 (138) (33) 4 7 Port, total 882 (138) (33) Road Transport 1 2,037 (49) , Customs at Cinkasse 0 (19) Customs at Bitou 127 (17) (27) OUAGARINTER 866 (56) (60) Borders & OuagaInter, total 1,173 (162) (87) GRAND TOTAL (USD) 4,092 (349) ,441 (120) Costs in XOF 1,849,584 (157,748) 2,002,662 (69,840) Import, change (USD) -16% (-66%) +12 Import, change (XOF) 36 +8% (-56%) Exchange rates: 2010: USD 1.00 = XOF 452; 2016: USD 1.00 = XOF 582

69 ATWA Stage 2 report: Corridor Diagnostic 54 Figure 21: Truck travel time, import 2012 Figure 22: Truck turn-around time, import Issues & opportunities: LFW-OUA corridor The GPS tracking devices are not secure and too easy to remove if they are lost or stolen the driver is faced with a hefty fine. Available quantity of tracking devices is insufficient for the actual traffic. This situation causes unnecessary delays. Transport owners would like to have access to the tracking data in order to follow the progress of their trucks along the corridor. The informal fees imposed by a forwarder association (XOF 5000/ truck) should be abolished. Customs systems between neighbouring countries should be connected. Capacity building for transporters and drivers association in order to professionalize the industry. There is a need to create training centers to reinforce the capabilities of all transport stakeholders. The corridor needs more parking along the corridor and at borders. Improve and reinforce access to finance for the renewal of the trucking fleet. Asycuda World is in place in both countries. However, advantages of this are jeopardized by poor and costly internet access. Unique customs bond is in the process of implementation. There is a need for a corridor management structure to address and correct corridor issues l Observatoire de la célérité des Opérations Douanières (OCOD) in Abidjan Port could be a model. Private sector members of OCOD have accepted to pay customs overtime on a permanent basis (Temps Supplémentaire or TS) in return for guaranteed service without harassment.