Development of Trade and Transit Corridors

Transcription

1 Deveopment of Trade and Transit Corridors The Roe of Private and Pubic Sectors The Roe of Private and Pubic Sectors The Roe of Private and Pubic Sectors Aina Mustra, Word Bank

2 New Soutions for an Od Probem? Goba SC 1 st century AD 2

3 A Sub-Optima Equiibrium Extremey dysfunctiona wordwide apart from Western Europe Logistics costs supported by traders comes from soft constraints that affects service deivery: q Inadequate market for services (trucks) q Unreiabiity of corridor suppy chain increased by inadequate design of transit arrangements for goods and vehices q Rents Chaenge from ack of incentives for change and poitica economy constraints

4 Shifting Priorities Towards Improving Services to Traders From Access(-ibiity) Priorities Deveopment of physica infrastructure Sti the main constraint? Internationa Law and Reguations Lack of agreement or ack of impementation? Towards Improving Services to Traders 4

5 Logistics services efficiency critica for competitiveness 5

6 Deveopment of internationa production networks Share of parts and components in tota exports (%) LPI Score 6

7 Focus on Improving Corridor Performance Interventions have to focus on improving the performance of the corridor How do we assess performance? Corridor performance indicators Cost Time Reiabiity

8 Cost, Time and RELIABILITY! Port of Entry Rai Transit Mutimoda Transfer Road Transit Border Crossing Nationa Transit Cearance Destination Unreiabiity can be everywhere => mutipier (3-5 or more) for inventories over mean deay for time sensitive shippers Time Taken in Days 30+ 8

9 Sources of Unreiabiity in Corridors serving LLDCs Largey a probem of fragmentation or quaity of processes and services: Mutipe cearances and contro and not ony at the border: the same procedure can be repeated up to seven times on certain corridors; No continuity across and even within borders; Typicay much time is spent to initiate transit operations; Fragmented market structure of core services (truckers and brokers) and itte incentive for quaity services: monopoies, entry barriers, reguated freight operations; Infrastructure quaity no onger the major cause of unreiabiity.

10 The Potentia for Cost Reduction in three key poicy areas v v v Transit systems and processes: ensure effective impementation mechanisms of transit agreement, and reduce mutipe cearance, differentiated treatment of operators Logistics Services market: Aign incentives for efficient transport and transit operations, phase out anti-competitive practices such as cartes and queuing system wherever possibe. Corridor Management: cross-border cooperative institutions, pubic-private diaogue, monitor performance (indicators) 10

11 A chaenging agenda to impement: How are Bank financed Projects Changing? The objective of improving service deivery for traders impies a combination of: Investment in infrastructure Institutiona capacity buiding Reguatory reforms Combine and baance support to investment and Technica assistance, Cross-Border, Trade Faciitation Faciity 11

12 A Dynamic Environment New focus Quaity and efficiency of service providers Freight forwarders Customs brokers Truckers Trade Reated infrastructure Roads Ports Raiways Cross-cutting issues: Coaborative border management Making transit work Customs reform and modernization Fisca focus IT orientation Od focus Both the od and new focus needed for success! 12

13 Word Bank-financed activities 1. Bank-financed Investment Projects: IBRD and IDA 2. Technica assistance: the Trade Faciitation Faciity and partnerships 3. Knowedge production and dissemination Key findings and essons Severa pubications avaiabe

14 Technica Assistance: Trade Faciitation Faciity (TFF) Muti-donor trust fund ~ 40MUSD TRADE FACILITATION FACILITY Managed by the Word Bank Support concrete improvements in TF systems Hep reduce deveoping countries trade costs Emphasis on Africa/ow-income countries Beneficiary ownership: request from countries REC

15 Area of Focus of the TFF Border management Trade Infrastructure Logistics services Improvement in border management in a broad sense: integration of customs, product standards, tax, rues of origin, etc. Improvement in the management of key trade reated infrastructure, especiay gateways and mutimoda faciities Improvement of the quaity/professionaism of private ogistics services, through technica/economic reguation and capacity buiding Regiona Regiona trade faciitation incuding transit systems Indicators Action pan Performance monitoring and indicators: e.g., data on time, cost, and reiabiity aong corridors Deveopment and impementation of comprehensive action pan addressing a of the above

16 Goba Support and Partnerships Support to the WTO TF negotiating group, Preparation of expanded assistance to address gaps on the ground. Goba Faciitation Partnership GFP Private Sector Partnerships: A4T faciitation with GEA (->IT) Private Investor in Africa (-> West Africa Corridors) Road Safety Partnerships (-> East West Centra Africa) 16

17 Knowedge Products and Dissemination The Cost of Being Landocked (2010) Lack of reiabiity and predictabiity of suppy chains affect trade most, not just transportation costs Caused by fragmentation of institutions and procedures governing corridor transit not just border deays or poor infrastructure Connecting Landocked Deveoping Countries To Markets (2011) Review of institutions and poicies reated to trade and transport corridors and their impementation in deveoping and industriaized countries wordwide Focus on Transit Regime and Corridor Management 17

18 Key Reference on Trade Faciitation FORTHCOMING: Corridor Management Tookit, Logistics Services 18

19 Anaytica and conceptua toos Logistics Performance Index Optima Path Freight Fow Modeing Urban Logistics Trucking &Logistics Services Surveys Gravity Mode Customs & Border Management Corridor and Infrastructure Anaysis Modernization Networks Connectivity Mode Trade & Transport Faciitation Assessment Suppy Chains Port Surveys and Traveogues Sectora and Noda Diagnosis 19

20 Goba Data and Database Logistics Performance Index (LPI) May 2012 Regiona briefs, LLDCs findings in book. Others: Doing business ICAs Corridor data (under deveopment in the corridor tookit) Trucking services agreements database Port performance and revision of TRS Revision of the compendium of SSA ega instruments Research Department (DEC): Trade costs, services, impact of A4T

21 Reevant Word Bank-financed Corridor Projects CEMAC TTF (Douaa Corridor) West Africa (Tema Ouaga) North-South Corridor Afghanistan (new tranche customs support), and Pakistan (nationa corridor) Kazakhstan (Western Europe-Western China transit corridor, customs support) Corridor Assessments in EAP Earier projects: Beira, Mombasa corridors Other corridors (not LLDC reated): Mashreq, Abidjan Lagos, Caucasus

22 A Corridor and its Components Institutions Corridor management Economi c custer Consoidation Cearing and forwarding Infrastructure Seaport/ Economic custer Mode interface Borde r Dry port ICD Gateway / Economic custer Internationa transit Nationa transit Services Seaport and shipping Access to port Transit Customs and border management Road and Rai Transport services Customs and border management Vehice change Customs and border management Storage Air freight Customs and border management Transit Cearing and Forwarding

23 Design of Tookit The Trade Corridor Management Tookit Based on arge body of existing knowedge from Bank operations, and from severa other agencies and countries Designed to support increasing voume of corridor-based operations. 14 modues addressing how to diagnose, measure and design interventions to improve corridor performance and assess impact 23

24 The Trade Corridor Management Tookit 24

25 Corridor Assessments in EAP Tookit tested in AFR, SAR, EAP + essons from ECA and LAC Exampe:- Assessments in Cambodia, Laos, Thaiand Probem: High transport costs Approach Interviews with key stakehoders (pubic and private sectors) Trucking survey Border survey

26 A Tae of Two Countries Cambodia Aternative routes Domestic port, Vietnam (road, river) High costs Informa fees Transshipment Firewa between KH and TH services No spiover effects Future:- Minibea initiative Competition between ports Laos Sma voumes At east haf of outbound trips are empty Chains controed by Thai and overseas buyers Tight container return imits imposed by shipping ines How to consoidate voumes Road vs rai transport economics Is there potentia in using a dry port or ICD, and where shoud it be? Can Laos piggyback on NE Thaiand ogistics services

27 Lessons from esewhere Nepa Nepa :: Three Three Dry Dry Ports Ports at at the the common common border border with with India India Birgunj Birgunj is is argest argest Linked Linked to to Kokata Kokata Port Port by by rai rai But But Nepa Nepa cargo cargo ony ony trains trains Leads Leads to to ong ong cargo cargo dwe dwe time time in in port port Operated Operated by by private private sector sector Tanzania: Tanzania: Dry Dry port port at at Mbeya Mbeya km km from from Maawi Maawi border, border, 880km 880km from from Port Port of of Dar Dar es es Saaam Saaam in in Tanzania Tanzania Linked by by rai rai to to port port Linked But has has experienced experienced decining decining voumes voumes But Poor Poor performance performance of of raiway raiway Shipper Shipper preference preference for for road road transport transport Competing Competing trade trade routes routes South South Africa: Africa: City City Deep Deep dry dry port port in in Johannesburg, Johannesburg, industria industria and and ogistics ogistics hub hub Schedued rai rai services services between between port port and and dry dry port port Schedued up up to to xx TEU TEU trains trains per per day day Handes Handes domestic domestic as as we we as as traffic traffic for for andocked andocked countries countries Transit Transit voumes voumes are are sma sma proportion proportion of of domestic domestic fows fows Removas Removas are are by by road road or or rai rai 27

28 Main Messages, Lao The seems to be acceptance of a high ogistics cost equiibrium though the trade corridors between Laos and Thaiand perform we in terms of time and reiabiity Prospects for reducing costs depend on cooperation with Thaiand (and Vietnam) Laos shoud piggy back on the more efficient operations in Thaiand But Thai aw does not aow transshipment of third country cargo in Thaiand Thai exports can be transshipped In the short term Laos can benefit from greater openness to Thai service providers especiay trucking, forwarding and warehousing In the medium to ong term a rai inked dry port in North east Thaiand coud hep disrupt the current high cost equiibrium Laos needs to co-deveop a ogistics strategy with its coasta neighbors 28

29 Trade and Transport Corridors in the African Context Largest concentration of andocked countries: Sub-Saharan Africa High transport costs are recognized to be a burden on the ow vaue, high voume commodities that are produced (ong distances, border deays, etc.) Reducing costs is critica to trade expansion and growth The corridor approach is activey pursued to: Hep prioritize infrastructure investments and maximize returns to scae; Stimuate growth, trade and investment aong key internationa transport routes; Typicay based on agreements between states that identify crosssectora custer investment opportunities for PPPs. Expected Outcomes: access to seaports, virtuous cyce of expanding regiona markets, increased regiona integration, a regiona approach to FDI, job creation, Sma and Medium Size Enterprise (SMMEs) deveopment, strengthened panning and managing capacity of oca governments and rapid economic growth. 29

30 The Exampe of The Northern Corridor - Links DRC, Burundi, Rwanda, Uganda, Kenya, (and South Sudan) - It is one of the best known and probaby most studied corridors in SSA

31 The Exampe of The Northern Corridor Roe of the Northern Corridor: Vita trade ink for andocked countries in the region: 95 percent of the goods that are imported into, or exported out of, Uganda pass through the port of Mombasa; There is a rai ine on the route but 90 percent of the cargo on the corridor traves by road. From 2006 to 2009, trade voume at the port of Mombasa grew at cose to 9 percent a year, with most of that cargo going aong the Northern corridor aong with biatera and other domestic trade. Project s Objective: Improve the movement of cargo and tacke deays and inefficiencies through: effective impementation of the EAC Customs Union Protoco; Increasing transport and ogistics services efficiency; and improve raiway services in Kenya and Uganda. 31

32 Northern Corridor: Achievements so far Lower transit costs and transport times aong a key road route inking Kenya s internationa seaport at Mombasa with Uganda and other countries in Africa s interior, aiding trade between these interior countries and the outside word: Transit times at the border have now been reduced from three days to three hours; Dwe time at the port of Mombasa is down from 19 to 13 days, and transit time aong the Mombasa-Nairobi-Kampaa section of the route has dropped from 15 to five days; Processing times at the Mombasa Port have been owered due to information sharing among agencies; Joint inspection of cargo and exchange of eectronic information due to increased cooperation between Kenyan and Ugandan agencies Efforts are underway to deveop a one-stop border post => Ease of movement of cargo and increase in vehice utiization 32

33 Video Feature: Trade Faciitation 33

34 Concusions The deveopment of trade and transit corridors requires hoistic regiona panning with the view to unock growth potentias in agging regions But Each corridor is unique and deveopment prospects depend on the convergence in tempora and geographica space of severa factors (poitica, economic, goba trends, etc.) Evoution is not a inear process from transport to deveopment corridor but mutuay reinforcing processes are at pay Deveopment requires active participation of pubic and private sectors incuding a eves of government (oca, provincia, nationa) Critica to assess upfront the economic fundamentas as there are usuay competing routes and investments 34

35 Thank you for your kind attention! The Word Bank Group Internationa Trade Department Washington Office 1818 H Street NW Washington DC Contact: tradefaciitation@wordbank.org Aina Mustra, Trade Speciaist, GFP Coordinator Internationa Trade Department, mmustra@wordbank.org