INSTITUTIONAL ARRANGEMENT FOR CORRIDOR MANAGEMENT: SUCCESS & CHALLENGES

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INSTITUTIONAL ARRANGEMENT FOR CORRIDOR MANAGEMENT: SUCCESS & CHALLENGES Donat BAGULA, Executive Secretary, Northern Corridor -TTCA

OUTLINE OVERVIEW OF TRANSPORT CORRIDORS IN AFRICA INSTITUTIONAL FRAMEWORK EXPERIENCES & CHALLENGES: FOCUS ON NORTHERN CORRIDOR CONCLUSION & WAY FORWARD NCTTCA 2

I. OVERVIEW OF TRANSPORT CORRIDORS IN AFRICA Typically sections of the Trans African Highways Linking landlocked countries to various maritime ports around the continent(land linked). Aim to boost regional integration and create a larger trade area. Most Eastern and Southern Africa corridors have management / coordination authorities to promote efficient transportation for an integrated regional approach to development NCTTCA 3

..Overview WHERE IS THE NC? The NC is the transport corridor linking the Great Lakes Land locked Countries of Burundi, DRC, Rwanda, South Sudan and Uganda to Kenyan seaport of Mombasa. It serves also Northern Tanzania, Ethiopia and Somalia. The NC is a multimodal corridor encompassing: road, rail, pipeline and inland waterways transport It is the busiest and most important route in East and Central Africa NCTTCA 4

II. WHICH LEGAL FRAMEWORK FOR NC? The Northern Corridor Transit and Transport Coordination Authority (NCTTCA), whose Secretariat is based in Mombasa, Kenya; was: Established in 1985 to coordinate and oversee the implementation of the Northern Corridor Transit and Transport Agreement(NCTTA) + 11 Protocols, ratified in 1986. The Agreement was revised in 2007 to take in account new vision of Partners States aiming at transforming the Corridor into a economic development corridor. Protocol 1. Maritime Port Facilities Protocol 2. Routes and facilities Protocol 3. Customs control and Operations Protocol 4. Documentation and Procedures Protocol 5. Transport of Goods by rail Protocol 6. Transport of Goods by Road Protocol 7. Inland Waterways Transport Protocol 8. Transport by Pipeline Protocol 9. Multimodal Transport of Goods Protocol 10. Handling of Dangerous Goods Protocol 11. Measures of Facilitation for Transit Agencies, Traders and Employees NCTTCA 5

III. LEGAL FRAMEWORK PILLARS. The 2007 Revised NC Transit and Transport Agreement s main objectives are based on 3 pillars of sustainable transport : Facilitate and Enhance the seamless movement of trade and traffic across the corridor. Stimulate economic, social development and inclusive transport in the Contracting parties Transform the Corridor into economic development corridor which, in addition to offering a competitive transport and transit services, will stimulate investments, encourage sustainable development and poverty reduction Implement strategies for offering safe, fast, competitive transport and ensuring environmental sustainability NCTTCA 6

NCTTCA III. EXPERIENCES & BEST PRACTICES To achieve above objectives: Endorsement by MS 5Y Strategic Plan 2012/2016 Strategy for a seamless and smart transport corridor, from which following initiatives anchored on above 3 pillars are underway: A. On Economic dimension aiming at promoting efficient and competitive transport Development with AfDB support of NC Infrastructure Master Plan ( 23 OSBP, 8460km Roads, Ports, Railways, Pipeline, 142 RSS ) 7

EXPERIENCES & BEST PRACTICES (Cont...) Harmonization and automation of customs & administrative procedures Pilot Single Customs territory underway Integration of Systems: Electronic Single Windows Migration to ASYCUDA World underway Implementation of Electronic Cargo Tracking Systems Vehicle Axle load Control (Self regulatory charter signed in October 2014 for a coordinated and safe transport): Use of High Speed Weigh In Motion Weighbridges (HSWIM). NCTTCA 8

EXPERIENCES & BEST PRACTICES (Cont...) In terms of monitoring Regular Road surveys to guarantee best practices and align procedures & operations with the NCTTA provisions The development of the Northern Corridor Transport Observatory and the NC Performance Dashboard which are web based systems to monitor the corridor performance: http://top.ttcanc.org This is an online database / tool for measuring and monitoring the performance of the corridor from the point of entry to destination on weekly, monthly, quarterly and annual basis. NCTTCA 9

B. On Social dimension aiming at promoting an inclusive transport system Unlocking linkages between Centers of production and distribution Focus on intra regional trade: women in cross border trade, SMEs, Health dimension and cross border communicable diseases in the corridor Development & endorsement by MS: Roadside Stations Program: rest stops, parking, Road safety and wellness centers & other facilities along the corridor: PPPs approach. www.roadsidestations.org NCTTCA 10

EXPERIENCES & BEST PRACTICES (Cont...) C. On Environmental dimension aiming at promoting a green transport Incentives policies underway to promote cleaner alternative energy sources Development of national and regional integrated projects to shift the freight transport patterns on benefice of cleaner modes of transport, transport facilities and investments which are environmental friendly, fuel-efficient, low-carbon, safe, Shifting to new technologies; efficient & sustainable operations NCTTCA 11

Northern Corridor Experiences Railway network is currently inefficient with poor maintenance regimes and low capacity to transport goods (Less than 4%). Plans are underway to improve: The Standard gauge railway(sgr) linking Mombasa and Nairobi is under development This SGR is connecting to Kampala, Kigali, South Sudan and DRC. The project is expected to have the largest impact on efficiency of the freight transport, use of electric power than fuel Expect to shift ~40% of freight on railways upon completion in 2017/18 Development of pipeline for transport oil products than tanks( efficiency, safe,.) Promoting the multimodal cross regional connections based on Railways Inland waterways 12

IV. CHALLENGES Lack of implementation and domestication by MS of various protocols on trade and transport facilitation Ineffective data management in MS leading to inefficient data collection/ sharing Diverse Standards and implementation processes Varying National Priorities and differing procurement procedures National Development Plans Vs Regional Master Plans Varying speeds of implementation multi national projects Limited capacity to package bankable projects translating in insufficient financing to promote regional and national projects Governance issues Ʃ Whole Challenges High logistics costs including Transport costs NCTTCA 13

V. CONCLUSION In order to continue driving the interconnectivity and transport systems efficiency, Corridors are to still serving as link and driver for an integrated Africa by: fostering partnership in infrastructure development (hard & soft) Facilitating transport and trade Championing and incenting the harmonization & shift of policies across regions and countries, legal framework and regulations Enhancing productive capacity & promoting private sector investment Promoting cross border PPPs Driving sustainable freight transport Monitoring corridor performance NCTTCA 14

.CONCLUSION WAY FORWARD In Conclusion, to achieve this, need for: partnership at national, regional and international level Leveraging on existing initiatives with achievable targets and timeline: legal framework, policies, planning, operations, investments Remodelling progressively the Public and Private sector investments Exploring innovative sources of financing: PPPs NCTTCA 15

NORTHERN CORRIDOR TRANSIT AND TRANSPORT COORDINATION AUTHORITY (NCTTCA) THANK YOU P.O. Box 34068-80118 Tel:+254 41 4470734 +254 780 991 100 Web:www.ttcanc.org www. top.ttcanc.org