Transport Prices and Costs in Africa

A Review of the Main International Corridors

The World Bank, Supee Teravaninthorn, Gael Raballand

• Publisher: World Bank Publications
• Year: 2008
• eBook ISBN: 9780821376553
• Edition: 0
• Topic: Politics & International Relations
• Subtopic: Trade & Tariffs
• Index: Politics & International Relations

Transport prices for most African landlocked countries range from 15 to 20 percent of import costs. This is approximately two to three times more than in most developed countries. It is well known that weak infrastructure can account for low trade performance. Thus, it becomes necessary to understand what types of regional transport services operate in landlocked African nations and it is critical to identify the regulation disparities and provision anomalies that hurt infrastructure efficiency, even when the physical infrastructure, such as a road transport corridor, exists. 'Transport Prices and Costs in Africa' analyzes the various reasons for poor transport performance seen widely throughout Africa and provides a compelling case for a number of national and regional reforms that are vital to the effort to address the underlying causes of high transport prices and costs and service unpredictability seen in Africa. The book will greatly help supervisory authorities throughout the region develop and implement a comprehensive transport policy that will facilitate long-term growth.

Table of contents

• Contents
• Foreword
• Acknowledgments
• Abbreviations
• Chapter 1 Introduction and Overview
• Chapter 2 Trucking in Africa Compared with Other Regions
• Chapter 3 Key Logistics and Market Characteristics of the Transport Corridors
• Chapter 4 Main Determinants of Transport Prices and Trucking Profitability
• Chapter 5 The Impact of Cartels on Transport Prices and Quality
• Chapter 6 Transport Costs Determinants
• Chapter 7 The Impact of Road Conditions on Transport Costs
• Chapter 8 The Trucking Market in Africa: Perceptions and Reality
• Chapter 9 Assessment of Policy Options
• Chapter 10 Implications for Economic and Fiscal Analysis and for Data Collection
• Chapter 11 Conclusions, Recommendations, and the Role of International Development Agencies
• Map 1 African Landlocked Countries
• References
• Annex 1 Bank Support for Africa Transport Corridors
• Annex 2 Data Methodology and Reliability
• Annex 3 Sample Survey Design and Data Quality Control
• Annex 4 Freight Allocation through Freight Bureaus: The Cases of Central and West Africa
• Annex 5 Zambia’s Road Freight Industry and Business Practices in Southern Africa
• Index
• Box 5.1 History and Impact of the Queuing System in France
• Box 5.2 Captured Market Regulation: Cargo Reservation Schemes in Maritime Transport
• Figure 1.1 Various Definitions Related to Transport
• Figure 2.1 Average Transport Prices: A Global Comparison in 2007
• Figure 2.2 Transport Quality Worldwide Based on the Logistics Performance Index in 2007
• Figure 2.3 Transport Services in Africa—Expensive and Low Quality in 2007
• Figure 2.4 Average Truck Mileage in Selected Developing Countries in 2007
• Figure 2.5 Cost and Price Trends before and after Market Deregulation in France, 1980–97
• Figure 2.6 Average Transport Prices from Mombasa to Kigali
• Figure 2.7 Number of Registered Heavy Trucks in Rwanda
• Figure 3.1 A Typology of Transport Corridors in Africa Based on Market Access
• Figure 4.1 Road-Rail Price Competition in Main International Routes
• Figure 5.1 Transport Quality Index Based on the Trucking Survey Results
• Figure 5.2 Fleet Age and Yearly Mileage
• Figure 5.3 The Vicious Circle of Transport Prices and Costs in a Strongly Regulated Environment
• Table 1.1 Measures and Outcomes in West and Central Africa
• Table 1.2 Measures and Outcomes in East Africa
• Table 1.3 Measures and Outcomes in Southern Africa
• Table 2.1 Comparative Transport Costs, Africa and Europe (Eastern and Western) in 2007
• Table 2.2 Comparative Transport Costs, Central Africa, East Africa, and France in 2007
• Table 2.3 Median Monthly Wages for Truckers in 2007
• Table 2.4 Comparison of Malawi and South African Fleet Competitiveness
• Table 2.5 Summary of World Experiences in Transport Services Deregulation
• Table 3.1 The Four Key Transport Corridors in Africa: Ports and Countries
• Table 3.2 The Four Key Transport Corridors in Africa: Key Economic Data
• Table 4.1 Transit Time and Transport Price (from Gateway to Destination)
• Table 4.2 International Transport Prices, Costs, and Profit Margins (from Gateway to Destination)
• Table 4.3 Regressions to Identify the Main Determinants of Transport Prices
• Table 4.4 Regressions to Identify the Main Determinants of Margins
• Table 5.1 Main Regulatory Barriers in Sub-Saharan Africa
• Table 5.2 Main Methods Used by the Trucking Industry to Get Freight
• Table 5.3 Method of Financing Truck Purchases
• Table 5.4 Infrastructure Condition and Load Control
• Table 5.5 Current Trucking Demand and Ideal Supply, Central African Republic and Niger
• Table 6.1 A Typology of Trucking Companies in Africa
• Table 6.2 Transport Costs Composition
• Table 6.3 Truck Operating Costs in the Four Corridors
• Table 6.4 Comparison of Transport Costs for a Heavy Truck Using Alternative Methods of Analysis
• Table 6.5 Variable Costs Breakdown for Subregions
• Table 6.6 Fixed Costs in the Subregions
• Table 6.7 Fuel Prices in Zambia
• Table 6.8 Heavy Truck Prices
• Table 6.9 Import Tariffs for Imported Trucks
• Table 6.10 Monthly Wage for Permanent Full-Time Truck Drivers
• Table 6.11 Ratio of Company Taxes to Total Costs
• Table 6.12 Licenses
• Table 6.13 Opportunity Cost of Delays
• Table 7.1 Infrastructure Condition and Load Control
• Table 7.2 Unit Vehicle Operating Costs Savings from Road Improvement
• Table 7.3 Vehicle Operating Costs Savings from Road Improvement
• Table 7.4 Indicative Internal Rate of Return of Infrastructure Rehabilitation
• Table 8.1 Transport Prices and Trade Imbalance
• Table 8.2 Transport Prices and Trade Flows
• Table 8.3 Main Perceived Constraints to the Trucking Industry
• Table 8.4 Trucking Companies and Truckers Belonging to an Association
• Table 9.1 Expected Impact of Policies in a Regulated Environment
• Table 9.2 Expected Impact of Policies in East Africa
• Table 9.3 Expected Impact of Policies in Southern Africa
• Table 10.1 Transport Costs for Cocoa Beans from the Field in Ghana to Europe
• Table A3.1 Survey Participation by Country
• Table A3.2 Number of Vehicles Surveyed by Country
• Table A5.1 Indicative Cost Factor Ranges for Zambia and South Africa Trucking Companies Operating to and from Zambia