the challenges facing landlocked developing countries: a case study ...

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MALAWI One of the world’s poorest countries, Malawi has suffered dramatically from being landlocked. For nearly two decades, its two cheapest and shortest corridors to the sea, through Mozambique to the ports of Beira and Nacala, remained closed due to Mozambique’s civil war (1975-1992). These routes had formerly accounted for approximately 95% of Malawi’s total freight. During the civil war, Malawi was required to reroute its transit freight via the significantly longer and costlier Durban and Dar es Salaam corridors. The average surface costs of these corridors are more than double those through Mozambique. Moreover, the average transit times to Durban (7 days) and Dar es Salaam (6 days) are nearly double that to Nacala (4 days) and Beira (3 days). It is estimated that the rerouting cost Malawi an additional US$50m-80m per year (approximately 4-6% of GDP) (World Bank 1995), with insurance and freight costs doubling from 20% of the import bill in the early 1980s to 40% by the latter half of the decade. While the corridors to Beira and Nacala have been recently reopened, infrastructure damage from the war has thus far limited their use. It is hoped that as much as 75% of Malawi’s trade will ultimately return to the Nacala corridor (EIU 2002). In addition to the profound external political challenges faced by Malawi, poor surrounding infrastructure has further exacerbated its landlocked position. Zambia, Tanzania, and Mozambique all have extremely poor infrastructure, considered to be worse than Malawi’s. BASIC INFORMATION HDI Rank: 163 GDP per capita 2000 (PPP$): $615 Exports per capita 2000 (current USD): $43 Distance to port: 803km Transport cost ratio (1994): 0.55 Neighbors: Mozambique, Tanzania, Zambia, Zimbabwe Primary transit neighbor: Mozambique Main trading partners: Imports: South Africa (48%), Zambia (14%) Exports: United States (18%), Germany (13%) Primary Exports (2000): Tobacco, tea and sugar (90%) Domestic Roads: fair Transit Country Roads: poor Domestic Rails: Transit Country Rails: fair poor TRANSPORTATION INFRASTRUCTURE Road Malawi is surrounded by extremely poor transit road infrastructure. Zambia’s roads are noted for having more Transit Country Ports: craters than tarmac, while a truck driver reports that one of the main transit roads through Mozambique “was known as the Tete hell run - only the most mercenary of truck drivers dared to attempt the trip and many trucks were shot up” (TrekShare 2000). While Malawi’s domestic road system suffers from one of the highest accident rates in the world 13 and poorly maintained rural feeder roads, it boasts an extensive highway system linking major towns and border crossings. These primary roads are considered to be of fair Neighboring Civil Conflict: high Relations w/ Neighbors: good 13 The lack of road safety is estimated to cost the economy 2-3% of GDP (World Bank 1995). - 25 -
elatively better quality than most of Malawi’s neighbors’, with the exception of Zimbabwe. Malawi’s roads have recently suffered, however, from the increased stress placed on them due to the increase in traffic associated with the closure of the Mozambican railways. The Malawian government has made recent efforts to improve road safety and road maintenance including a World Bank funded US$30 million Road Maintenance and Rehabilitation Project in 1999. Malawi also has bilateral road transport agreements with Mozambique, Tanzania, Zambia and Zimbabwe which help facilitate international road traffic. Rail Prior to the war in Mozambique, Malawi depended heavily on the rail corridor to the port of Nacala for its transit freight. The war, however, forced the closure of this corridor for nearly two decades and has left the railway in a state of disrepair. Recent projects have been undertaken by the World Food Programme and the Mozambican government to improve this vital corridor. 14 Moreover, the Central East African Railway Company (CEARC), which operates Malawi’s rail system, announced in 2000 an additional investment of US$26m over fifteen years. This will include a US$4.8m investment targeted at improving the company’s rolling stock. Improvements are already being seen, as the volume of external trade traffic increased by 63% over 2001. The Malawi government estimates that the refurbished rail corridor could save more than $700m a year in transport costs. Ports During Mozambique’s civil war, most of Malawi’s freight was redirected to the ports of South Africa and Tanzania, 15 with approximately 80% of Malawi’s total freight traffic passing through the South African ports. The recent reopening of the Mozambican corridors has reduced reliance on these ports. Malawi has two domestic ports on Lake Malawi, at Chipoka and Chilumba (Simuyemba), which are used to transport goods north to the Tanzanian corridor and ultimately Dar es Salaam. The ports suffer from a lack of storage facilities, outdated infrastructure, and a lack of coordination with the road and rail systems. Given the diminishing importance of the Northern corridor, these ports are not likely to play a major role in Malawi’s future freight transport. POLITICAL RELATIONS Although Malawi boasts internal stability and strong relations with most of its neighbors and most important trading partner, South Africa, it has suffered extensively from the Mozambican civil war. As mentioned, the war not only resulted in the closure of Malawi’s most important transit corridors for nearly two decades, but has also left its infrastructure in a state of disrepair. Moreover, the war strained bilateral relations between the two countries, as former Malawi President Dr. Hastings Kamuzu Banda was considered to have aided the Mozambican rebels. Following his death in 1994, relations have shown considerable 14 With a US$100 million loan from the World Bank 15 The war in Mozambique led the SADC to develop the northern corridor route to the port of Dar es Salaam. The project costs US$863m and uses Malawi’s roads and lake transport to link to the Tanzanian rail system. - 26 -
Page 1 and 2: THE CHALLENGES FACING LANDLOCKED DE
Page 3 and 4: to link to global markets. In doing
Page 5 and 6: TABLE OF CONTENTS EXECUTIVE SUMMARY
Page 7 and 8: PART 1: INTRODUCTION AND BACKGROUND
Page 9 and 10: First, landlocked countries are dep
Page 11 and 12: together a wide variety of sources,
Page 13 and 14: infrastructure. In these cases the
Page 15 and 16: 1.2.3. VULNERABILITY TO CIVIL CONFL
Page 17 and 18: the Central African Republic - Came
Page 19 and 20: 1.3 INDICATORS OF DEVELOPMENT 1.3.1
Page 21 and 22: • The southern African landlocked
Page 23 and 24: PART 2: COUNTRY CASE STUDIES - 18 -
Page 25 and 26: Internal transport networks in the
Page 27 and 28: Ports Although Botswana’s geograp
Page 29: POLITICAL RELATIONS Lesotho’s int
Page 33 and 34: SWAZILAND Despite being landlocked,
Page 35 and 36: ZAMBIA While Zambia shares its bord
Page 37 and 38: Relations with South Africa have be
Page 39 and 40: Zimbabwe’s extensive rail network
Page 41 and 42: TRANSIT ROUTES OF ETHIOPIA The land
Page 43 and 44: UGANDA Uganda’s location allows i
Page 45 and 46: POLITICAL RELATIONS The formation o
Page 47 and 48: section on Uganda. The Central Corr
Page 49 and 50: BURUNDI In addition to lying over 1
Page 51 and 52: In 1996, after Major Pierre Buyoya
Page 53 and 54: Recognizing the dramatic effects th
Page 55 and 56: AFRICA - WESTERN TRANSIT ROUTES OF
Page 57 and 58: of transit. In fact, the landlocked
Page 59 and 60: only hindering normal road traffic
Page 61 and 62: CENTRAL AFRICAN REPUBLIC With only
Page 63 and 64: Relations with the eastern neighbor
Page 65 and 66: TRANSPORT INFRASTRUCTURE Road While
Page 67 and 68: MALI Upon declaring independence in
Page 69 and 70: Finally, and most importantly for M
Page 71 and 72: TRANSPORTATION INFRASTRUCTURE Road
Page 73 and 74: ASIA - CENTRAL TRANSIT ROUTES OF CE
Page 75 and 76: TRANSIT ROUTES OF MONGOLIA As part
Page 77 and 78: AFGHANISTAN Two decades of war, har
Page 79 and 80: Afghanistan, the first by an Irania
Page 81 and 82:
Iran, Pakistan and Turkey constrain
Page 83 and 84:
KYRGYZSTAN Over 3600 km from the ne
Page 85 and 86:
POLITICAL RELATIONS Generally recog
Page 87 and 88:
The country’s two major highways,
Page 89 and 90:
TURKMENISTAN With direct access to
Page 91 and 92:
Ports and Waterways Turkmenistan ha
Page 93 and 94:
Domestic transport is hampered by t
Page 95 and 96:
MOLDOVA Although the former Soviet
Page 97 and 98:
MONGOLIA As the landlocked country
Page 99 and 100:
CAUCASUS TRANSIT ROUTES OF THE CAUC
Page 101 and 102:
ARMENIA While Armenia’s central g
Page 103 and 104:
With the closure of the Turkish and
Page 105 and 106:
worse (World Bank 2000). In fact, w
Page 107 and 108:
ASIA - SOUTH & SOUTH-EAST TRANSIT R
Page 109 and 110:
With the exception of western Afric
Page 111 and 112:
and exports pass through the port p
Page 113 and 114:
Khai (at the Thai-Laos border) to t
Page 115 and 116:
NEPAL Due to the Himalayan range to
Page 117 and 118:
More recently, India delayed the au
Page 119 and 120:
links to the railways of Argentina,
Page 121 and 122:
developing the nation’s road infr
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PARAGUAY Dependent primarily on tra
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BOPS Break Bulk CAN CAR CEEAC/ECCAS
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GENERAL ADB (2002). Annual Report 2
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United Nations General Assembly (20
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BOTSWANA CountryWatch (2003). Botsw
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EIU (2002). Malawi Country Profile
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ZAMBIA Chikoti, V. (?). Overview of
Page 137 and 138:
AFRICA - CENTRAL AND EASTERN BURUND
Page 139 and 140:
EIU (2002). Ethiopia Country Report
Page 141 and 142:
Mutumba-Lule, A. (2001). 17 Firms V
Page 143 and 144:
- 138 -
Page 145 and 146:
Jean-Bertin, O. (2002). Burkina Fas
Page 147 and 148:
Evlo, K. (1995). Transit Transport
Page 149 and 150:
ASIA - CENTRAL United Nations (1994
Page 151 and 152:
UNESCAP (2002). Afghanistan: Status
Page 153 and 154:
EIU (2001). Railways in Kyrgyz Repu
Page 155 and 156:
Spiegel Online (2002). Moldawien, S
Page 157 and 158:
USDA FSA (2002). Tajikistan Shippin
Page 159 and 160:
CAUCASUS ARMENIA Armenia Foreign Mi
Page 161 and 162:
World Bank (2000). Project Appraisa
Page 163 and 164:
World Audit (2001). World Democracy
Page 165 and 166:
MONGOLIA Canning, D. (1998). A Data
Page 167 and 168:
WDI (2002). World Development Indic
Page 169 and 170:
UN DHA (1997). Paraguay El Niño Fl
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Map 1
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Table 2: Human Development - Rankin
Page 175 and 176:
Table 4: Exports per Capita (2000 c
Page 177 and 178:
Figure 1: Human Development Indicat
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