Transport Prices and Costs in Africa

[Pages:166]Public Disclosure Authorized

Public Disclosure Authorized

46181

DIRECTIONS IN DEVELOPMENT

Infrastructure

Transport Prices and Costs in Africa

A Review of the International Corridors

Supee Teravaninthorn and Ga?l Raballand

Public Disclosure Authorized

blic Disclosure Authorized

Transport Prices and Costs in Africa

Transport Prices and Costs in Africa

A Review of the Main International Corridors

Supee Teravaninthorn Ga?l Raballand

? 2009 The International Bank for Reconstruction and Development / The World Bank

1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: E-mail: feedback@

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This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.

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ISBN-13: 978-0-8213-7650-8 eISBN: 978-0-8213-7655-3 DOI: 10.1596/978-0-8213-7650-8

Library of Congress Cataloging-in-Publication Data

Teravaninthorn, Supee. Transport prices and costs in Africa : a review of the main international corridors / by Supee

Teravaninthorn, Ga?l Raballand. p. cm.

Includes bibliographical references. 1. Transportation--Africa--Costs. I. Raballand, Ga?l. II. Title. HE195.5.A35T47 2008 388'.049--dc22

2008040248

Cover photo: Ga?l Raballand, Washington DC, United States Cover design: Candace Roberts, Quantum Think, Philadelphia, PA, United States

Contents

Foreword

xi

Acknowledgments

xiii

Abbreviations

xv

Chapter 1 Introduction and Overview

1

Past Research on Transport Prices and Costs

1

Scope and Methodology of This Study

2

Analysis of the Transport Environment

4

Policy Recommendations

7

Notes

12

Chapter 2

Trucking in Africa Compared with Other Regions 13

Global Comparisons

14

Regional Perspectives

18

Market Regulation, Competition, and Prices in

the Trucking Industry

20

Notes

26

Chapter 3 Key Logistics and Market Characteristics of

the Transport Corridors

29

West Africa

31

v

vi Contents

Central Africa

32

The Northern Corridor in East Africa

32

The North-South Corridor in Southern Africa

33

Notes

35

Chapter 4 Main Determinants of Transport Prices and

Trucking Profitability

37

Heterogeneity of Transport Prices in Africa

37

The Importance of Rail Competition

for Road Freight Prices

38

Profitability Determinants

39

Notes

44

Chapter 5 The Impact of Cartels on Transport Prices

and Quality

47

Impact of Freight-Sharing Schemes

49

Truck Age and Utilization

55

Cartels

58

Fleet Size

59

Notes

60

Chapter 6 Transport Costs Determinants

63

Typology of Trucking Companies in Africa

64

Operating Costs in the Subregions

64

The Importance of Variable Costs

69

Breakdown of Fixed Costs

72

Public Procedures and the Opportunity

Cost of Delays

75

Notes

77

Chapter 7 The Impact of Road Conditions on

Transport Costs

79

Road Conditions in the Study Corridors

79

How Road Conditions Affect Operating Costs

79

Notes

83

Chapter 8 The Trucking Market in Africa:

Perceptions and Reality

85

Contents vii

Chapter 9 Assessment of Policy Options

89

Policies for West and Central Africa

90

Policies for East Africa

93

Policies for Southern Africa

94

Notes

96

Chapter 10 Implications for Economic and Fiscal Analysis

and for Data Collection

97

Finance Regular Studies of Transport Prices

and Costs Determinants

97

Improve the Economic Analysis of Road Projects

98

Assess the Impact of Fiscal Policies on Transport

Services

100

Note

101

Chapter 11 Conclusions, Recommendations, and

the Role of International Development Agencies 103

Key Findings and Conclusions

103

Recommendations

105

The Role of Development Partners

106

Map 1

African Landlocked Countries

107

References

109

Annex 1

Bank Support for Africa Transport Corridors

113

Note

114

Annex 2

Data Methodology and Reliability

115

1. Data Selection

115

2. Variable Description

115

3. Regression Analysis

122

Notes

123

Annex 3

Sample Survey Design and Data Quality Control 125

An Example with Cameroon

125

Sample Size

129

Annex 4

Freight Allocation through Freight Bureaus:

The Cases of Central and West Africa

131

Notes

133

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