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

3. Size of ShipmentsThe small average size of shipments in Burundi is a concern for logistical efficiency. The transportsector typically shows increasing returns to scale. As the volume of shipments increases, larger vehiclescan be deployed or the load capacity of the vehicles optimized, which lowers the unit cost of transport.However, for Burundi both domestic and international consignments are typically small in size. This isvery apparent when one looks at the volume of deliveries of coffee by individual farmers to processingplants (Figures 5.3) or the size of consignments processed by customs for exports and imports (Figure5.4). Coffee, the main export commodity, is produced by small scale farmers and more than half of theshipments delivered to primary processing plants (washing stations) are less than 5 tons. As a result ofthe small quantities, small sized vehicles are deployed, unless consolidation of volumes is carried out byintermediaries. Due to the high number of small deliveries, handling costs at the processing plants arehigh and consequently overall logistics costs also increase. The same applies to international shipments,where most individual consignments are less than five tons.Efforts should be made to facilitate the consolidation of shipments. One way of reducing costs is todevelop a wide range of consolidation services in containers from the main points of origin up to finaldestination Bujumbura. For international logistics, it is important that infrastructure and services thatfacilitate consolidation be developed in Burundi. Some consolidation of imports already takes place, forexample of petroleum. Similar arrangements are important for all other types of cargo.20%16%12%8%4%Figure 5.3: Deliveries by individualtraders to one coffee mill/exporter500400300200100Figure 5.4: Burundi's export volumeby road and water transport0%1000300050007000900011000130001500017000190002100023000250002700029000(kilograms)Source: coffee processing facilities01000400070001000013000160001900022000250002800031000340003700040000430004600049000Source: OBR(kilograms)4. Traffic imbalanceThe other defining characteristic of cargo flows in Burundi is the large imbalance between importand export volumes. For example, exports through the main seaport gateway of Dar es Salaam can beas small as fifteen per cent of imports (Figure 5.5). Such an imbalance means that vehicles are more than90% of the time empty going in one direction. It also means that import traffic has to bear the burden ofvehicles running empty on the outbound trips. Predominantly one way flows of cargo affect the ability ofBurundi based operators to participate in their country’s logistics markets. Due to cabotage restrictions inEast Africa, Burundi trucks travel to the port of Dar es Salaam empty to pick up cargo, whereasTanzanian trucks have the possibility of picking up cargo in the western part of Tanzania to deliver toDar es Salaam or domestic destinations in between. The integration of regional transport and logisticsmarkets under the EAC framework is therefore important for the ability of Burundi to participateactively in regional logistics services markets.93 / 153