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Hisham Fouad
Senior Transport Specialist
Transport and Digital Development
The World Bank’s Experiences with
Corridor Governance and Management
Arnold, World Bank, 2006. 2
What is a Corridor?
3
What is a Corridor?
Border crossing
Arnold, World Bank, 2006.
INFRASTRUCTURE
FACILITATION
LIBERALIZATION TRANSIT
SYSTEM
CLIMATE
CHANGE
ROAD
SAFETY
Building blocks
Building blocksBuilding blocks
Building blocks
Building blocks
Evolution of Corridor Management – A Holistic Approach
5
Evolution of Corridor Management
Arnold, World Bank, 2006.
6
Transport CorridorTransport and
Logistics Corridor
Integrates the
planning and delivery
of transport
infrastructure across
modes
Focus is the
facilitation of the
movement of goods
along the corridor with
minimal transport
delays
Typically serves as an
entry point into
integrated multimodal
transport planning for
governments in
developed and
developing countries
alike
Commodity
CorridorEconomic Corridor
Development
Corridor
Integrates planning
and delivery of
transport infrastructure
as well as transport
and logistics service
provision
Focus is the facilitation
of the end-to-end
movement, handling,
and processing of
goods with cost
efficiency and high
predictability
In order to generate
economies of scale,
scope, and
specialization, corridor
caters to well-defined
supply chains by
commodity type
For example, an
“electronics corridor”
may attract specialized
service providers for
this vertical; foodstuff-
focused corridors may
prioritize the efficient
technical clearance of
this commodity type at
border crossings
Enables efficiencies
across multiple
commodity types,
transport services, and
logistics services
Contributes to
employment and
income generation
across the catchment
area of the corridor
Supports the
functioning and
connectivity of multiple
supply chains and
directly or indirectly
facilitates economic
growth in areas that
may go well beyond
the catchment area of
the corridor itself
Meaningfully
contributes to regional
and national economic
growth and is
associated with
desirable
socioeconomic
outcomes like poverty
reduction and shared
prosperity
Not all corridors can or should become development corridors—the adequate role of corridors is context-
specific, and operational “success” does not depend on necessarily reaching “development corridor” status
Evolution of Corridor Management:
Corridor Performance Progression
7
IMPACT
1. Traffic/transit
volumes
2. Development
potential:
population/cities;
poverty; work
force; natural
resources;
industries
3. Private sector
opportunities
OPERATIONAL
1. Hard infra gaps
2. Soft/reform gaps
3. Gov. commitment
to collaboration
and regional
integration
4. RECs priority
corridor?
RISK & FEASIBILITY
(negative scores)
1. Significant
impediments (e.g.
poor governance,
complexity,
constraints)
2. Feasibility and
Implementation
Readiness
3. Environmental and
Social safeguards
4. WBG experience &
lessons
Possible Corridor Prioritization Criteria
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Corridor Types, Activities and Stakeholders
Arnold, World Bank, 2006.
Adzigebey, Kunaka, Mitiku, Institutional Arrangements for
Transport Corridor Management in Sub-Saharan Africa, SSATP, 2007, and recent
updates.
9
Level Management Characteristics Examples
Regional
Decision-making entrusted to a regional
entity
Trans-European Transport Network (TEN-T)
in Europe
Regional body has planning and monitoring
role
Corridors within the Economic Community of
West African States (ECOWAS)
Corridor interventions are left to national
players
Corridors with the Central Asia Regional
Economic Cooperation
National
Corridor management under a trade and
transport facilitation committee
Nepal Trade and Transport Facilitation
Committee
Multi-sector, multi-agencyBangladesh Trade and Transport Facilitation
Committee
Public and private sector participationIndia National Trade and Transport Facilitation Committee
Coordination a challengePakistan Trade and Transport Facilitation
Committee
Often financed by IFIs/donorsLaos Trade and Transport Facilitation
Committee
Corridor
Focused on improving specific trade routesNorthern Corridor Transit Transport
Coordination Authority (NCTTA)
Governments tend to take the lead in
development
Central Corridor Transit Transport Facilitation
Agency (CCTTFA)
Private sector led examples exist but are fewMaputo Corridor Logistics Initiative (South
Africa-Mozambique)
Initiated by public-private cooperation Walvis Bay Corridor Group (Namibia)
Project-based Corridor
Management
Initially created to handle the single issue of
HIV/AIDS, took on more general corridor
management functions
Abidjan-Lagos Corridor Organization
Corridor Management Levels/Models
Corridor Development often seen as an effective strategy for
increasing trade, economic activity, and job creation
10
RegionIntra-Regional Trade as a share of total
trade (%)
EU 60
EAP 40
NAFTA 35
ASEAN 25
MERCOSUR 15
ECOWAS 10
OIC 10
SAARC 5
World Bank has been most
active in financing regional
integration and corridor
development projects in
Africa, South Asia, East
Asia, Central Asia and
Europe.
Less activity in the Middle
East and North Africa, and
Latin America.
Mainly driven by political
willingness for regional
collaboration/ integration
Corridor Development Objectives and Typical WB Interventions
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Reduce transport/travel time for freight
and passengers
Reduce transport/travel cost for freight
and passengers
Increase connectivity and trade
between production and consumption
centers
Investments in missing links and
especially last-mile links to establish
multi-modal connectivity along
strategic regional corridors
Increase access to markets for
agricultural and industrial products
Increase economic activity and
agglomeration impacts of gateways
and urban centers
Facilitating connectivity to the nearest
ports/gateways, and to regional and
global markets for landlocked
countries/areas
Create jobs
Increase private sector investment
Address infrastructure, policy and
procedural barriers to seamless cross-
border transit
Corridor Development Objectives
Multimodal transport infrastructure
development
• Road
• Rail
• Waterways/Ports
ICT systems development
• National Single Window
• Trade Informational Portal/Electronic
One-Stop Shop
• Electronic Data Interchange
Logistics Services/Zones/ICDs
SME/Industrial Zone/Spatial
Development/Agglomeration
Impacts/Urban Development
Strategic Planning, Policy Reform and
Process/Procedural Simplification
• National Transport/Logistics Master Plan
Development
• TIR Convention
• Transport Regulation
• Fuel policy reforms
• Customs/border clearance simplification
• SPS (Sanitary and Phyto-sanitary)
Certification
Main Interventions
3/15/2018 12
Corridors Supported by the SSATP
(Sub-Saharan Africa Transport Policy Program)
13
1. Abidjan-Bamako (1,170 km)
2. Abidjan-Lagos (1,000 km)
3. Abidjan-Ouagadougou (1,200
km)
4. Bamako-Conakry (916/1,072 km)
5. Dakar-Bamako (1,470 km)
6. Dakar-Conakry (1,100 km)
7. Douala-N’Djamena (1,630 km)
8. Cotonou-Niamey (1,035 km)
9. Lomé – Ouagadougou (1,000 km)
10. Tema-Ouagadougou (1,057 km)
West Africa Corridors Supported by the World Bank
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Abidjan-Lagos Trade and Transport Facilitation Project
The busiest passenger corridor in West Africa connecting five countries - Côte
d’Ivoire, Ghana, Togo, Benin, Nigeria - through their port cities. Project components:
(i) developing a framework for the coherent and coordinated implementation of
HIV/AIDS policies in the corridor countries;
(ii) Carrying out HIV/AIDS prevention programs for the targeted populations;
(iii) Providing improved care and support services for the targeted population
(iv) Building capacity of the key service providers
(v) Addressing constraints to the smooth and timely flows of passengers and freight
traffic
15
Abidjan-Lagos Trade and Transport Facilitation Project
GOVERNING BODY: representatives nominated by the highest political offices of
the member countries. Established by the five heads of State, through a joint
declaration, responsible for overseeing: (a) the adoption of the work program and
approval of annual plans; (b) the preparation and execution of the multi-country
HIV/AIDS transport corridor strategy and plan of action; (c) the progress review of
the implementation; and (d) the liaison with each member country’s respective
national HIV/AIDS programs.
EXECUTIVE SECRETARIAT: responsible for the daily coordination and facilitation
of the project including: (a) overall coordination and management; (b) preparation of
quarterly progress reports; (c) coordination of the appraisal and approval of
subprojects; and (d) the project monitoring and evaluation. Reports to the President
of the Governing Body.
INTER-COUNTRY ADVISORY COMMITTEE: members selected from the five
member countries, reports to the governing body. Members from public and private
sectors, responsible for: (a) provision of technical and policy advice to the Governing
Body; (b) review of progress reports; and (c) identification of implementation issues
and recommendation for their solutions.
FUNDING: World Bank support
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Northern Corridor Transit Transport Coordination Authority
THE AUTHORITY: Council of Ministers responsible for transportation in the
member countries, highest policy organ responsible for overall policy direction.
EXECUTIVE BOARD: This is an inter-governmental committee comprising chief
executives of ministries responsible for transport in the member States. The
board assists the Authority in formulating strategies for transport and trade
facilitation, infrastructure development, and harmonization of national and
regional policies. The Chairs of the Authority and the Executive Board rotate
among member States. The Executive Board meets twice a year.
PERMANENT SECRETARIAT: The Secretariat is responsible for coordinating
the implementation of the NCTA and any other decisions or resolutions made by
the Authority and Executive Board. The Secretariat is headed by an Executive
Secretary, supported by three technical experts and other non-technical staff.
FUNDING: Member country contributions and cargo levy.
Functions include: To ascertain smooth and safe passage of cargo along the corridor;
reduce transportation costs along the corridor; simplify cargo clearance procedures; simplify
customs documentation; harmonize transport policies; enhance co-operation among the
member States; facilitate trade among member States and between the member States
and the rest of the world; contribute to the sustainable development of the member States
and poverty reduction; promote the improvement of surface transport infrastructure; and
encourage the major transport service providers to provide cost effective services.
17
Maputo Corridor Logistics Initiative
One of the most successful corridor institutions. The MCLI is incorporated in South
Africa as a non profit (Section 21) organization with members from both South Africa
and Mozambique. The legal instrument governing MCLI is the Memorandum and
Articles of Association, corresponding to a company without a share capital, guided
by the Constitution of MCLI.
BOARD OF DIRECTORS: The highest decision making body comprising 9
Executive Directors and 7 non-Executive Directors, primarily from the private sector
responsible for promoting the objectives of MCLI, providing policy direction,
monitoring implementation, monitoring the operating structure, finances and
administration, and approving the operating and capital budgets of MCLI.
EXECUTIVE COMMITTEE: 4 members from the Board of Directors responsible for
(i) the financial management of the company and (ii) giving direction to and
monitoring the chief executive officer.
MCLI MEMBERSHIP AND FUNDING: open to a wide range of interested
stakeholders across South Africa, Mozambique and now Swaziland, with
membership fees based on affordability and size of the organization.
18
19
US$99m in IDA investments & TA
Board approval June 2013
Challenges:
Long dwell time at Kolkata/Haldia ports
Bilateral transit agreement limits Nepali
transit to only one corridor, and only
containerized cargo for rail
Poor and narrow roads in Nepal and India
No through bill of lading and inland
clearance
Duplicative domestic
licensing/documentation/ customs
procedures
No cross-border electronic data
interchange
No mutual recognition of collaboration on
SPS and standards
Insufficient parking/warehousing facilities
Development Objective:Decrease transport time and logistics costs for
bilateral trade between Nepal and India and transit
trade along the Kathmandu-Kolkata corridor for the
benefit of traders by reducing key infrastructure
bottlenecks in Nepal and by supporting the adoption
of modern approaches to border management.
Nepal-India Regional Trade and Transport Project addresses challenges along
a typical SAARC Priority Corridor:Kolkata/Haldia-Raxaul-Birgunj-Kathmandu: Road, Rail, Border/Trade Infras, Procedural Reforms
http://www.worldbank.org/en/news/video/2013/02/15/video-improving-trade-in-nepal-is-a-long-road
20
Components/Activities
A: Modernize transport and transit arrangements between Nepal and India: Technical
Assistance for trade and transit treaties; Automating of Customs Transit Document
(CTD); Transport management regulation including Axle load control and Road Traffic
safety
B: Strengthen ICT based systems to automate trade clearance processes including
National Single Window, Trade Information Portal, and Trade-Relate/SPS Laboratories
C: Improve Trade-Related Infrastructure including upgrading the Narayanghat-Mugling
road, improving Birgunj and Bhairahawa ICDs, and constructing Inland Clearance
Depot (ICD) at Kathmandu
Nepal-India Regional Trade and Transport Project addresses challenges along
a typical SAARC Priority Corridor:Kolkata/Haldia-Raxaul-Birgunj-Kathmandu: Road, Rail, Border/Trade Infras, Procedural Reforms
http://www.worldbank.org/en/news/video/2013/02/15/video-improving-trade-in-nepal-is-a-long-road
Institutional Arrangements
Regional SAARC (South Asia Association for Regional Cooperation) has been stymied
to inaction by politics and mistrust between member nations. More progress happening
at the sub-SAARC level including between Bangladesh-India-Nepal
Bilateral Joint Working Groups between Nepal and India have not been meeting
regularly enough
National Trade and Transport Facilitation Committee: supported by the World Bank
project, includes public and private sector representation, chaired by Ministry of
Commerce. Public representation includes all trade-related ministries.
Governed by Bilateral Trade and Transit Treaty
Must be carefully planned: mapping what the potential is, where it
lies, institutional and policy bottlenecks, grounded in economics
Three tiers of institutional collaboration/coordination
• Across Countries: Government-to-Government
• Within Countries: Inter-ministry Coordination and Private Sector
Consultation
• Cross-Border Local Participation: Province-to-Province (Punjab-Punjab)
A catalytic event to focus energies
ANCHOR PROJECT/s that can crowd in investment
Benefit sharing and backward linkages: local communities can
benefit from SME and job creation
Government must take the lead: Private sector should participate
but cannot do it alone (too many policy/regulatory issues,
magnitude of investment too high)
Challenges/Lessons Learned
The time factor: Achieving results can take decades
Regional mechanisms and sustainability
• financing agreements
• regional funds for preparation
• financing of regional implementation bodies (what happens when
donor funds are no longer there?)
Multi-sectoral coordination: transport, border agencies, logistics,
transit facilitation…
• Multi-modal: roads, railways, waterways, ports…
• Multiple implementation agencies – national and regional (e.g. 4 for
CEMAC project, 8 for Eastern Africa Project, 6 for ALTTFP, 6 for
Nepal-India TTFP)
Presentation Title 22
Challenges/Lessons Learned
Finding the right champion(s):
• unbalanced discussions between neighbor countries: dominant coastal
countries versus frustrated landlocked countries, big vs. small countries
• corridor/regional authorities/institutions
• role of private sector
Managing expectations:
• improving X km of roads is fairly easy, achieving a measurable corridor
development impact is more difficult
• results frameworks have to be carefully crafted
• institutional and regulatory reforms take time
Implementation: High governance risks:
• large investment contracts attract corrupt practices
• transit fraud is common (each year 18,900 containers arrive in Douala in
transit to Chad, out of which 9,000 do not officially cross the border)
• vested interests and hidden agendas (monopolistic and oligopolistic
behaviors, illegal checkpoints, sensitive customs data)
23
Challenges/Lessons Learned
For more information, please contact
Hisham Fouad
Senior Transport Specialist
World Bank
24
Diep Nguyen-van Houtte
Lead Transport Specialist
World Bank
dnguyenvanhoutte@worldba
nk.org
EXTRA SLIDES
3/15/2018 25
26
Anchor &
“cluster”
Anchor &
“cluster”
Stranded
investment
Problem
feeder
Stranded
investment
Agri-node &
“cluster”
Problem
feeder
“DENSIFICATION”
Feeders often
need to be funded
thru’ fiscus/grant
DC logistics
“catchment”
The spatial development approach is an attempt initially by the Government of South Africa to "unlock the inherent capital potential" of specific spatial locations in Southern Africa. The approach has since been adopted regionally in Southern Africa and continental by the African Union.
Source: Jourdan, 2008
World Bank using Development Corridor
Approach to support Golden Quadrilateral
Development
27
Borders Cannot be changed, but they can
become irrelevant through policy reforms
Rail Road IWT
Gauge/Equipment
Standards
Harmonization
Regional
Agreement
TIR Carnet
Motor Vehicle
Agreement
Road Design
Harmonization
Longer-term IWT
Protocol/
Agreement
More
Investments
Regional Bond
Through Bill of Lading
Customs Simplification, Harmonization, and Cross-border
Cooperation
Simplification, Harmonization and Mutual Recognition of Quality
and Technical Standards
Removal of NTBs (rules of origin, standards, etc..)
Restrictive Trade Agreements (positive list, etc..)
Policy reforms needed for high impact:
Eastern Corridor (BBIN) Regional Connectivity Program
28
