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ISSUES IN CORRIDOR MANAGEMENT IN WEST AFRICA by Yaya YEDAN Burkina Shippers’ Council

ISSUES IN CORRIDOR MANAGEMENT IN WEST AFRICA by Yaya YEDAN Burkina Shippers’ Council

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ISSUES IN CORRIDOR MANAGEMENT IN WEST AFRICA

by Yaya YEDAN

Burkina Shippers’ Council

• Regional integration, economic growth and trade facilitation

there is a political consensus on the need for regional integration within UEMOA/ECOWAS member states

Benefits to greater integration : economies of scale, enhancing food security by facilitating greater intra-African trade in food products, and supporting the development of international production chains and greater value addition in Africa.

Transportation : a key tool for promoting regional co-operation and integration Good transport system can improve international trade competitiveness of countries.

• Development of Trade and Transport Policies, Programs , projects and initiatives at regional level with the view to: Enhancing trade-related infrastructure ; Improving the “software” of trade : better trade facilitation and logistics services performance,

removing NTBs and putting in place effective transit regimes.

2001 : UEMOA adopted the Community Action Plan for Road Infrastructure and Transport (Programme d’Actions Communautaire des Infrastructures et du Transport Routier -PACITR)

2003 : ECOWAS and UEMOA adopted the Regional Road Transport and Transit Facilitation Program (RRTTFP) Decision C/DEC.13/01/03

BACKGROUND CONTEXT

STATUS OF IMPLEMENTATION

• What has been achieved so far # expectations from policies and measures Much of what is needed has already been agreed in the context of African regional

trade agreements/policies/ programmes.

Despite all these actions facts on the ground show that there are persistent physical and non physical barriers : the intra regional and international trade.

the ECOWAS region presents the following governance features

Very high transport and logistics cost compared to many other parts of the world

Long delays and uncertainties

High level of corruption

Handicap private business and trade; Poor performance of both intra regional trade and trade in major export markets in the rest of the world

• Implementation failure not solution failure

Cost of inter-state transport continues to be relatively high in West Africa

It costs 5 times more to transport a 20ft Container from Tema to Ouagadougou (1,130km) as compared to moving same from Newark to Chicago (1,030km)

It takes an unpredictable 13 to 22 days, compared to the highly predictable 5 days

CORRUPTION makes up about 8.2% of the total transport and logistics costs for imports and 2.9% for exports

USAID/WATH, 2010

STATUS OF IMPLEMENTATION

• What about the landlocked countries? Situation compounded by remoteness from sea and inefficient transit system

Average percentage of Export generated foreign earnings dedicated to transport costs:

- Coastal countries in Africa: 7%

- Landlocked countries in Africa : 15%

- Rest of the World :4%.

Transport and logistics costs represen25 to 40% of the final prices of imported goods

Greater impacts on consumer prices , poverty aggravation

STATUS OF IMPLEMENTATION

IMPLEMENTATION CHALLENGES

• The challenge : effectively implement agreed policies and create conditions that will result in deeper market and trade integration and identify ways to maximize the benefits of doing so and deliver concrete results to the people of West Africa.

• Need to removing regional barriers to trade and creating mechanisms to monitor implementation progress.

• ECOWAS DECISION A.DEC.9/01/05 establishes a three level institutional framework at the National, Corridor and Regional levels to remove barriers to the free flow of persons and goods along our key trade and transit corridors : National Transport and Transit Facilitation Committees, Corridor Management Committees and the Regional Transport and Transit Facilitation Committees.

CORRIDOR PERFORMANCE MONITORING : a tool for effective corridor management

A corridor : Key trade route that connects main trade centres- within the same country or between countries

Corridors : vectors for trade; and all type of trade:

for international transit : international trade from overseas, passing through sea port and destined to country in the hinterland,

intra-regional trade : between countries of the region

at the most local level, domestic trade between economic centers within the same country.

UEMOA/ECOWAS identified a set of key regional road corridors

North- South /Vertical Corridors : linking the sea ports to the capital cities in landlocked countries (Lome-Ouaga, Cotonou- Niamey, Dakar -Bamako, Abidjan- Ouaga, Lagos– Niamey…)

East- West /Horizontal corridors: linking several coastal countries ( Abidjan- Lagos , Dakar- Bissau…)

Other intra regional trade corridors

• Measuring corridor performance : objectives : To be able to identify needed urgent practical interventions and measures in order to overcome the obstacles and barriers to regional trade

Essential to assess whether the system fulfills its role of enabler and catalyst of development, or if it there are issues that needs fixing at two different but imbricated levels: corridor efficiency and program implementation

That measure must reconcile two different perspectives on the corridors:

the perspective of the user (trader/logistics service provider) : primarily concerned by the impact of corridors inefficiencies on its competitiveness/final costs business potential, through the cost of moving goods, the time duration associated to this movement, and also the uncertainties on the delays t

the perspective of the policy makers who have the responsibility to ensure the long term adequacy between the demand and the offer, expressed by the characteristics of the infrastructure and the logistics services delivery.

• Performance measured over time through set of core indicators : knwoledge , facts for advocacy and better policy making

CORRIDOR PERFORMANCE MONITORING

• Transport and logistics performance data is critical to identify and prioritize policy interventions to reduce trade costs along key corridors within the region :

Infrastructure development regulatory or institutional reform Improvement of transport and logistics services

Core indicators : measurement of the various dimensions of corridor efficiency.

Different level of complexity : Basic/ analytical

CORRIDOR PERFORMANCE MONITORING

.

• By corridor components (Modes & Nodes)• Trade typesVolumes

• Processing time, idle time• Distribution of delays and uncertaintiesTime & Uncertainties

• Cost factors of operators• Total logistics costs to the trader / shipperPrices & Costs

• Quality and capacity• Efficiency and capabilityServices & infrastructures

THE OPA/ IRTG INITIATIVE

The Observatory for Abnormal Practices ( OPA) =The Improved Road Rad Transport Governance (IRTG)

Mandate : OPA is a UEMOA/ECOWAS coordinated Project aimed at collecting data on selected abnormal practices experienced alongside key interstates corridors in West Africa, publish and disseminate results to the general public and the decision makers and undertake advocacy in order to trigger positive changes.

OPA activities started in 2006 ; supervised by the UEMOA Commission with the financial and Technical support of the USAID Trade Hub

OPA : 3 core indicators:

Number of check points including border posts manned by official agencies (customs, police gendarmerie , health and forestry, immigration )

Time taken to conduct controls at check points (delays)

Bribes/ unofficial payment collected at check points (bribes)

CORRIDOR MONITORING INITIATIVES IN WEST AFRICA

Main partners

The haulage drivers

The national Focal point in each country :

National Coordinator :

UEMOA Commission

The USAID /West Africa Trade Hub Trade

Geographical scope: OPA currently 8 Corridors

started with Tema –Ouagadogou pilot corridor and was gradually extended to 7 others : Lome – Ouagadougou/Dakar-Bamako/Abidjan- Ouaga/ Abidjan-Bamako/ Bamako- Ouaga via Koury/ Ouaga – Bamako via Hermankono/Niamey-Cotonou/

Ongoing extension process; Dakar- Bissau, Cotonou – Ouaga, Lome- Niamey …

Quaterly reports publication/ road show and avocacy:

CORRIDOR MONITORING INITIATIVES IN WEST AFRICA

(Source: USAID/WATH, 2013)

THE OPA Road Governance MAP

(Source: USAID/WATH, 2012)

THE OPA Road Governance MAP (2012)

THE ALCO (Abidjan -Lagos Corridor Organization)

ALCO is an ECOWAS project supported by the World bank that evolved into an ECOWAS established corridor management institution. started its activities in 2007.

Mandate: Collection, processing and publication of reports on selected indicators in order to reduce trade and transport barriers in the ports and on the roads and reduce HIV prevalence along the Abidjan-Lagos corridor

ALCO Core indicators : port dwell time, border crossing time, number of roadblocks, road condition, and conduct of HIV/AIDS awareness & prevention with transporters

Currently (2010 – 2016) benefits from the support of the World Bank ALTTFP (Abidjan – Lagos Transport and Transit Facilitation Project).

Geographical scope: 5 countries: Cote d’Ivoire, Ghana, Togo, Benin, Nigeria

Partners: ALCO permanent secretariat and borders offices, custpms administration in port and at borders, drivers, clearing agents, port administration, NFC

Publication of periodic reports, advocacy activities

CORRIDOR MONITORING INITIATIVES IN WEST AFRICA

I. INTRODUCTION

• Sound and tested methodology: Reviewed and improved upon through “trial and error” and stakeholders interaction

• Sustained and ongoing data collection and processing efforts

• Sustained reports production and dissemination to the general public and to the decision makers

• Availability of set of “reliable” and “neutral” data within both ALCO and OPA member states

• Increase awareness of stakeholders on acuteness of transport and trade related issues

• Collection of bases line data and monitoring of how they evolved over time

OPA/ALCO INITIATIVES:LESSONS LEARNT AND RESULTS ACHIEVED

• Development of tool for assessment and comparing countries and corridors performance

Comparison between corridors (OPA)

Comparison between countries on the same corridor (OPA, ALCO) ;

Comparison between countries on different corridors (OPA)

• Benchmarking opportunity

• Ecowas/Uemoa Corridors performance can now be compared to that of other parts of the continent/world for selected indicators

• Potential for effective Evidence- based advocacy through various activities and with the involvement of the Civil Society Organizations (CSOs), the National Transport and Transit Facilitation Committees (NFCs), the public control agencies (police, gendarmerie customs, forestry services, immigration)

CORRIDOR MONITORING INITIATIVES IN WEST AFRICA

(source: USAID/WATH, 2013)

Regional comparison (# of Controls) ….

(source: USAID/WATH, 2013)

Evolution (# of Controls) ….

(source: USAID/WATH, 2013)

Regional Comparison (Bribes) ….

(source: USAID/WATH, 2013)

Evolution (Bribes) ….

(source: USAID/WATH, 2013)

Regional Comparison (Delays) ….

(source: USAID/WATH, 2013)

Evolution (Delays) ….

Number of Roadblocks Compared to Baseline Data

COTE D'VOIRE GHANA TOGO BENIN NIGERIA

7

18

6 7

39

31

28

3

11

32

9

25

3

17 16

11 13

2

13

9

BASELINE YEAR 1 YEAR 2 YEAR 3

Number of Roadblocks per 100km

COTE D'VOIRE GHANA TOGO BENIN NIGERIA

18

5 3

8

30

5 4

3

13 15

6

2 2

10 9

YEAR 1 YEAR 2 YEAR 3

Target3

• Shaping of a new pattern for co-operation between public officials /decision makers and the private sector/private sector organization, in line with Borderless Alliance Vision.

• Evidence and knowledge versus perception and guess: data collected has enabled: Confirmed certain guessesCorrected and changed certain perceptions (ex; bribes collected at check points and borders by officials represents

only 10% of the total bribes collected, the remaining is collected at sea ports and on logistics terminal in the hinterland.

• Helped achieved notable positive changes on some corridors or in some countries:Official removal of police and gendarmerie check points on the Lome Cinkanse segment of the Lome – Ouaga

corridors Remarkable reduction of number of checks points on the Abidjan –Ouaga and Dakar – Bamako corridors Significant

Reduction of the number of check points on the ALCO corridors

CORRIDOR MONITORING INITIATIVES IN WEST AFRICA

• Limitation of the OPA methodology: “legal truck” versus all trucks

• Limited geographical scope/type of trade

• Limited number of core indicators monitored

• Sustainability of the data collection process: Huge dependency on partners technical support Need to design ways to secure drivers’ long term mobilization and co-operation in the data collection process-

OPA/OCAL

• Financial sustainability: Huge dependency on donors’ fundings and Needs to device endogenous funds (Uemoa/Ecowas Commisions,

other regional players AfDB, stakeholders – logistics services providers);

OPA/ALCO INITIATIVES : MAIN CHALLENGES

• Institutional arrangements: needs for strengthening and probable clarification/formalization

ALCO set up as corridor management institution. OPA: From project to established permanent body

• How to optimize capacity to trigger positive changes and sustained progress: Progress not matching expectations of private sector, road users: Slow pace of progress : reduction of number and check points, delays and bribes Uneven pace of changes amongst countries and reversible nature of progress Limited impact of advocacy activities conducted

OPA/ALCO INITIATIVES : MAIN CHALLENGES

• Extension of the scope of observation and monitoring activities to cover all the components of the logistics chain (ports, logistics platform in the hinterland) and other modes of transport. Need to ensure all inefficiencies are identified and root caused assessed

• Define a set of harmonized core indicators to monitor at regional level by both initiatives.

• Need to design and implement a more vigorous, results- focused advocacy strategy with private sector active participation

• Harmonize methodology of data collection and processing and enhancing cooperation on sharing primary data

• Optimize use of data/outputs available from IT system of states agencies, logistics services providers and other stakeholders involved in the port clearance, border crossing and inland destination clearance processes.

OPA/ALCO INITIATIVES : THE WAY FORWARD

• Need to introduce/optimize use of satellite monitoring data

• Device methodology to monitor performance of both intra- regional trade including value chains of key specific commodities as well as international transit trade

• Need to work towards the setting up on a Regional Transport and Facilitation Observatory

• Encompass other issues in respect of : Corridor efficiency :

• Port Efficiency :Port Traffic, Dwell/Turn Around Time, Volumes

• Transit Indicators :Travel Times & Costs (formal, informal)

• Border Crossing: Time/cost per process stage; Traffic flow/count

• Harassment: various dimensions such as Gender, informal trade, etc)

• Road Condition: Classification/Categorization; Roughness Index; interventions

• Climate Change/Transport Emissions

OPA/ALCO INITIATIVES : THE WAY FORWARD

Programme implementation

• Preferential Trader Schemes: Authorized Economic Operator Schemes, ETLS, etc Risk Management, Green Channel Treatment

• Procedure/Documentation Reforms :Single Windows, Integrated Border Management<Customs Interconnectivity. Single ISRT bond

• Sector/Commodity/Services performance : Agricultural, Trade

• Axle Load, Road Safety, Crime/Terrorism

• Cargo/Freight Management – cargo sharing, queuing, vehicle types, fleet renewal, Condition of entry in the road transport sub sector, etc

• Needs to strengthen ALCO capacity and establish permanent corridor monitoring institutions on the OPA corridors

• Need to reinforce the co-operation between corridor monitoring initiatives and NFCs

OPA/ALCO INITIATIVES : THE WAY FORWARD

THANK YOU FOR YOUR KIND ATTENTION

Yayaa YEDAN

Country Representative of Burkina Shippers’ Council i n GhanaP.O Box TT 523 Tema New Town 1st Floor Burkina Building , Agencies Block, Tema Port Tél/ Cel : (233) 20 816 30 16 Office Tel/ fax: (233) 303 20 23 92E.mail: [email protected] : [email protected]