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					REGIONAL CONFERENCE
ON THE NORTHERN CORRIDOR


ACCELERATING THE RATE OF THE
 REGIONAL TRANSPORT AND
 TRADE FACILITATION
 INSTRUMENTS

30 Sept 1 October, 2009
Mombasa, Kenya
Summary of Presentation
•   Introduction
•   Transport Issues
•   Profile of the Northern Corridor
•   Transport Facilitation Instruments
•   Status of Implementation by States
•   Infrastructure Development and Maintenance
•   Cooperation With Other Regional Economic Communities (RECs)
•   Relevance of Facilitation Instruments to Corridors
•   Way Forward
Introduction


•   COMESA is a grouping of 19 member states with
    the objective of fostering the economic well being
    of its people through regional integration
•   COMESA FTA launched in 2000, and Customs
    Union in 2009
•   The next stages include the Common Market and
    a Monetary Union
•   Integration is based on trade liberalisation and the
    promotion of productive sectors .
              Introduction


•   The COMESA Transport and ICT programmes focus on harmonisation of
    policy and regulatory regimes, the support for development of physical
    infrastructure and facilitation of the flow of trade and in line with Article
    84 of the Treaty.

•   The implementation of the COMESA and EAC programmes will result in:

         Enhanced regional transport and ICT connectivity;
         Smooth flow of cross-border and transit traffic in the region;
         Increased intra and extra COMESA trade
         Smooth flow of cargo transiting especially from land-locked
          countries to maritime ports; and
         Reduction in transaction costs for regional and international
          business
Transport Issues
•   Policy and Regulatory Harmonisation
•   Development of regional transport
    infrastructure in roads, railways, ports,
    pipelines
•   Facilitation to address constraints due to
    issues such as licensing, administrative
    procedures and other NTBs
•   Capacities of transport service providers
    and related operators to provide efficient
    services
Profile of the Northern
Corridor
•   The Corridor serves up to 8 countries with a
    population of over 100 million people
•   Comprises road, rail, pipeline and inland
    waterways
•   Mombasa port traffic doubled in the last ten years
    from about 8 million to 16 million DWT
•   Container traffic almost trebled during the last 10
    years from 0.23 million to 0.62 million TEU’s
•   Corridor has considerable delays in port, border
    posts and en-route
•   Corridor transit costs are comparatively high
    compared with Corridors in the rest of ESA region
       COMESA Transit Facilitation
            Instruments

•   COMESA Carrier License
•   Harmonised Axle Load Limits, Overload Control and
    Vehicle Dimensions
•   Harmonised Road Transit Charges
•   The COMESA Customs Declaration
•   Third Party Motor Insurance (Yellow Card)
•   Regional Customs Transit Guarantee
•   Automated System of Customs Data Management
    (ASCUDA)
•   Inter- Railway Working agreements
•   Corridor Management Systems
•   One Stop Border Posts
•   Protocol on Movement of Persons
COMESA Carrier Licence

 Objectives
   Ease the movement of vehicles across borders
    through the removal of multiple road licenses and
    permits
 Benefits
   Liberalisation of trucking industry, reduction of
    trucking costs, increased utilization of trucks and
    mutual recognition of nationally issued licences
 Implementation
   Only Kenya and Uganda are implementing partial
    Carrier Licensing through mutual recognition.
 Axle Load Limits, Overload Control and
Vehicle Dimensions


     Steering Axle 8 tonnes

     Single Axle 10 tonnes

     Tandem 16 tonnes

     Triple 24 tonnes

     Gross Vehicle Mass 53 tonnes

     Maximum vehicle length is 22 metres.
Axle Load Limits, Overload
Control and Vehicle Dimensions
   Objectives
     Application of common axle load limits in the ESA region in and
      development of common road design and maintenance standards
   Benefits
     Reduction of damage to roads, bridges and other infrastructure due
      to over-loading and excessive gross vehicle mass
     Overload Control Certificate removes the need for multiple
      weighings en route
     Uniform axle load enforcement
     Exchange of information on violators
     Uniform application of fees and penalties

   Implementation
     Not uniformly implemented by MS on the NC.
     Harmonised Road Transit
           Charges
•   Objectives
        standardise road user charges
        Reduction of divergences in transit costs among
         member states.

•   Benefits
        Elimination of multiplicity of road charges
        Increased transparency and lower road user charges
         with positive impact on regional trade

•   Implementation
        Most of the NC countries implementing
        Regional Customs Transit
               Guarantee

•   Objectives
       Elimination of opening and cancellation OF Customs bonds and
        cash deposits for each country transited

•   Benefits
       Single Customs bond accepted regionally;
       quicker clearance of vehicles at borders/increased efficiency;
       Freeing of funds tied up in multiple Customs bonds; (2005)
            Burundi - 0.4 US$ 181 Million
            Congo DR - 0.3 US$ 470 Million
            Rwanda – 0.8 US$ 515 Million
            Uganda – 0.8 US$ 1.7 Billion
            Total -         US$ 1.4 Billion

       Higher productivity of vehicles through faster transit and
        turnaround times of equipment

•   Implementation
       Piloted on the Northern Corridor and implementation
        commenced Sept, 2009
    COMESA - CD
•   Objectives
     Standardisation of customs entry documents and
     replacement of different national documents.
   Benefits
     Reduction of documentation costs;
     Reduction of border delays;

     Eletronic data transfer across borders and use of a single
     window for processes across the transit route
     Reduction of false declarations and increase govt revenues


•   Implementation
      implementation ongoing in states through ASCUDA and
     Simba interfaces and to be facilitated through deployment
     of VSATs on remote border posts
    Third Party Motor Insurance
           (Yellow Card)

•   Objectives
     Provide for third party insurance

     Coverage valid in all the transit and destination

     Cover for medical bills for crew

     Underwritten by insurance companies with a pool




•   Benefits
       use of local currency/no need to carry forex;

      simplified claims regime;

       payment of medical bills for crew

      quicker border clearance




•   Implementation
      implemented in NC countries
Resource Estimates in $Millions

  Country     Burundi   DRC          Rwanda   Uganda




  Money tied 181        470          515      1,700
  in Bonds                                             5436




  Border      1.6       5,4          4,1      22,5
  costs for
  one day
  Delays
                              5436
Physical Infrastructure
Development

The following are programmes in the development of
  robust and sustainable transport infrastructure in the
  ESA Region
   COMESA Transport and Communications Strategy and Priority
    Investment Plan (TCS/PIP)

   SADC Infrastructure Master plan Development

   The Corridor based COMESA/EAC/SADC Joint Aid for Trade Programme

   The EAC Railway Development Master plan

   The IGAD Transport, Energy and Water Programme under the (JAM
    Programme)
Infrastructure Development
    and Management (cont)

•    Railway Concessioning providing for open access to
     networks
•    Private Sector Funding for road and rail where rates of
     return are attractive to private sector
•    Infrastructure development through BOT or Build
     Operate and Own
•    Ports commercialisation through schemes such
     subcontracting or concessioning
•    Performance indicators development for all transport
     modes
Cooperation among Regional Economic
Communities (RECs)

   With EAC, IGAD SADC
      Axle load Limits and Vehicle Overload Control along corridors
      Road safety programme development

      Transit charges (Study –EAC,IGAD,TTCA).

      Yellow Card


      Harmonisation and implementation of common
      programmes
         Joint SADC, EAC, COMESA Task Force
    Inter-Regional Co-ordinating Committee
    (IRCC) for EAC/IGAD/IOC/SADC/COMESA with EU to
    develop coherent regional policy using ED9 and EDF10 funds
Relevance of Transport Facilitation
Instruments to Corridors

•   Corridors receive most of the cargo and vehicles involved
    in seaborne transit and domestic traffic
•   Corridors suffer premature infrastructure degradation
    through overloaded vehicles
•   Lack of harmonised instruments result in traffic delays
    causing congestion in ports and transport modes along
    Corridors
•   Corridors suffer negative publicity due to delays and
    congestion due to bad physical infrastructure and
    operating systems
Way Forward

 • Coordinated Development of Regional Connectivity
   Priority Infrastructure Projects in road, rail, ports and ICT
 • Adoption of sustainable road, rail maintenance and
   management systems
 • Compliance by policy makers, regulators and the private
   sector with decisions made to enforce implementation of
   trade and transport facilitation Instruments
 • Developing and maintaining Corridor
   Databases/observatories on key Corridor Performance
   Indicators and their regular dissemination
 • Promote sustained advocacy of best practices in
   implementation of the facilitation instruments
Way Forward
 • Development of Corridor specific procedures to facilitate
   oversight on vehicle overloading
 • Collaboration with regulatory authorities and compliant
   stakeholders in the development and implementation of
   integrated information systems to detect and penalise
   offenders
 • Promoting the implementation of One Stop Border Posts
 • Adoption of agreed standards for self regulation by the
   Private Sector
 • Coordination in the developing procedures and capacity
   building for stakeholders
End of Presentation



Thank you for your attention and visit
        the COMESA Website


            http://www.comesa.int

				
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