News & Information



26
October
2016

Northern Corridor commended for ongoing sustainable transport partnership and trade facilitation initiatives to transform the Regional bloc from Landlocked to Land-linked


By: TTCA
Summary/Brief
The High-Level Meeting on Sustainable Transport of Landlocked Developing Countries (LLDCs) held in Santa-Cruz, Bolivia, from 13-14 October 2016, urged the Transport Corridors to learn from the Northern Corridor best practices in speeding-up cooperation initiatives and policy harmonisation to ease trade facilitation and further improve transit transport systems for the benefit of the Landlocked Developing Countries.


The High-Level Meeting on Sustainable Transport of Landlocked Developing Countries (LLDCs) held in Santa-Cruz, Bolivia, from 13-14 October 2016, urged the Transport Corridors to learn from the Northern Corridor best practices in speeding-up cooperation initiatives and policy harmonisation to ease trade facilitation and further improve transit transport systems for the benefit of the Landlocked Developing Countries.

The Northern Corridor region was also commended for its transport and trade facilitation initiatives that are transforming the four LLDCs out of six Northern Corridor Member States from Landlocked to Land-linked, hence benefiting from unfettered, efficient and cost effective access to and from the sea by roads, ports, airports, railways, and waterways on the basis of the freedom of transit.

LLCDsPic.jpg

Participants in the High-Level Meeting on Sustainable Transport of Landlocked Developing Countries (LLDCs) held in Santa-Cruz, Bolivia, from 13-14 October 2016

“We urge Member States to accede to and ratify in a timely fashion relevant international, regional and sub-regional conventions and other legal instruments related to transit, transport and trade facilitation and ensure their effective implementation, with a view to reduce transport prices and time for the landlocked developing countries”, reads in part the Ministerial Declaration of Landlocked Developing Countries adopted in Santa Cruz, Bolivia, on 14 October 2016 at the High-Level Meeting on Sustainable Transport of Landlocked Developing Countries.

During the meeting, the Chair of the LLCDs Group, Hon. Brian Muhimba, Zambia’s Minister of Transport and Communications, empahsized that “Enhanced transport, mobility and connectivity are indispensable investments vital for overcoming the geographical constraints of land-lockedness, and thus linking the LLDCs to both regional and global markets”.

On average, LLCDs pay more than double what the transit countries incur in transport costs and take longer time to send receive merchandise from overseas markets.

“Fortunately for the Northern Corridor region, things are being soften and changing by improving the predictability of the transport logistics chain,” said Bagula, “from the end of 2009 to 2014, the overall transportation logistics costs have drastically reduced by 56% from Mombasa to Nairobi, 26% for the transit sections Mombasa-Kampala, 28% from Mombasa-Kigali, 23% from Mombasa-Bujumbura, while for the transit sections Mombasa-Goma and Mombasa-Juba, the total transportation logistics costs has reduced by 38% and 37% respectively”.

“Regular monitoring of planned activities is one of the best practice for policy formulation and informed decision making in improving predictability for trade and business operations” added Bagula.

The Transport Logistics Costs structure consists of the Primary road Transport Charges, Transit overheads (regulatory Agencies compliance costs, forwarding Agency fees, handling charges) and Hidden Costs which consist of Direct Costs associated with delays (storage charges, Container retention charges as well as the Indirect Costs associated with delays (loss in business opportunity due to delays and unreliability, estimated based on opportunity costs of extra inventory).

Transport rates per Northern Corridor Road sections

Average Transport rates per route (USD)

Number of Trucks turn around/Month

Route

2012

Nov.2015

Mar.2015

Nov.2014

Mar.2015

Mombasa-Nairobi

1,118

1,023

1,023

9

11

Mombasa-Kampala

3,070

2,867

2,751

4

4

Mombasa-Kigali

4,650

4,833

4,350

2

3

Mombasa-Bujumbura

7,000

6,350

6,040

1

2

Mombasa-Goma

6,500

6,750

5,058

1

2

Mombasa-Juba

6,250

4,678

5,030

2

2

Source: “Impact Assessment of the Northern Corridor Performance Improvements Activities”, a Comparative Transport Cost and Performance Study released in June 2015 by the NCTTCA.

 Transit time from the Port of Mombasato Gatuna-Rwanda for goods under Single Customs Territory, October 2015 – Mach 2016

 LLCDs_Graph.jpg

Source: Northern Corridor Transport Observatory and Performance Dashboard

The High-Level Meeting on Sustainable Transport of LLDCs was presided over by H.E.  Evo Morales, President of Bolivia, the Under Secretary General Of UN and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) and the Under Secretary General United Nations Department of Economic and Social Affairs (UNDESA).  

The main objective of the High-Level Meeting on Sustainable Transport of LLDCs was to identify new strategies, cooperation initiatives and policy recommendations on how to develop and further improve transit transport systems for the benefit of the LLDCs, strengthen cooperation, enhance mobilization of financing for infrastructure development and maintenance and promote sustainable transport in the LLDCs.

The Northern Corridor was commended for taking the lead notably in Africa by developing a sound Green freight transport strategy which is aligning the its program activities with the Agenda 2030 on Sustainable Transport.

The recommendations of the High-Level Meeting on Sustainable Transport of LLDCs are then expected to be part of the contributions of the LLDCs in the first global sustainable transport conference to be held from 26-27 November 2016 in Ashgabat,Turkmenistan.

There are 32 LLDCs (16 in Africa, 10 in Asia, 4 in Europe and 2 in South America) with a combined population of almsot 480 million people (2015). The total combined land area of LLDCs is 16,571,985 square kilometers, representing more 12.5 per cent of the World’s total.





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