(DTIS) Update, Volume 1 – Main report - Enhanced Integrated ...

Kigoma and Bujumbura lake ports. The large cost advantage the rail and lake combination has over roadtransport makes this the preferred option for most Burundi shippers when the intermodal system works.This is despite the fact that this option takes longer than road transport. Most Burundi trade is not verytime sensitive, so that the time disadvantage can be offset by the cost savings.Figure 5.14: Contribution of different components to the Cost and Time of Using Road andRail/Lake Combination for Burundi Trade6000Extrainventory6005000FreightForwarder5004000Lake400Cost $/TEU30002000RailBorderTime (hours)3002001000Road1000Road Rail/LakeSource: Nathan Associates (2011)Port 0RoadRail/Lake7. Core logistics services7.1 Trucking ServicesGeography, market size and the state of logistics services in Burundi leaves logistics serviceslargely controlled by external service providers. In fact more than 85% of shipments between Dar esSalaam and Bujumbura are handled by non-Burundian trucks. This pattern poses some risks for Burundi,the main ones being that trucks may not be available when they are needed and that costs are muchhigher than to other countries in the region. In fact, Burundi faces the highest logistics costs in EastAfrica.Most trucks operating on the route are Tanzanian owned, because arranging cargo from the portand seeking return hauls in other countries is easier for Tanzanians. Road transporters fromlandlocked countries generally have an office or partner who arranges for return haulage, mostly to theirown country. The cargo is imbalanced in favor of imports, and many return hauls are empty. TheTanzanian road transporters have an active association, the Tanzanian Truck Owners Association(TATOA), which represents their interests at the port and with government agencies concerning theregulations that affect their operations. Freight forwarders are represented by national and regionalassociations. These associations will be important stakeholders drivers for more effective transportfacilitation measures on the corridor.The transport prices on the Bujumbura – Dar es Salaam route are among the highest in Sub-Saharan Africa (Figure 5.15). This is notably due to the lack of competitiveness of services on thisroute.105 / 153