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

logistics services on the other. Typically, some of the greatest constraints are at the local level, and howflows cascade from local to international logistics chains.6. Regional and international connectivity 94Regional transport corridors are at the heart of regional integration in East Africa, as they areacross most of Africa given the large number of landlocked countries. The corridors are necessaryfor regional integration to achieve maximum potential, to expand and to integrate markets, exploiteconomies of scale, and attract foreign direct investment. The development of regional markets, in turn,creates interdependencies that increase the demand for infrastructure. Traded goods flow through roads,railways, inland waterways, ports and airports, as do people seeking to take advantage of attractiveservices or job opportunities in other nations. Therefore, an efficient and integrated transport systemfacilitates trade and factor mobility. It is connective infrastructure that can effectively reduce theeconomic distance between locations for merchandise trade (World Bank 2009). By enhancingconnectivity, regional infrastructure (especially in the form of transport and communication corridors)can facilitate the exploitation of economies of scale and scope, make possible greater specialization inproduction, and allow for more efficient division of labor. The most important benefits of regionalinfrastructure derive from network externalities.Infrastructure development that impacts Burundi’s regional and global connectivity has largelybeen designed around trade corridors. Burundi has access to the sea through two main corridors,namely the Northern Corridor, connecting to the Port of Mombasa, and the Central Corridor, connectingto the Port of Dar es Salaam. Due to its shorter length, the dominant trade route has traditionally been theCentral Corridor, which accounts for more than 80% of import and export volumes (Figure 5.11).250,000200,000Figure 5.11: Volume of Burundi cargo handled throughDar es Salaam and MombasaDarMombasaVolume (tons)150,000100,00050,00001992 1994 1996 1998 2000 2002 2004 2006 2008 2010Source: Kenya and Tanzania Ports AuhtoritiesThe volume of Burundi traffic passing through the Northern Corridor and using the port ofMombasa has always been small. Less than 7,000 tons of Burundi’s traffic passed through this port in2010 (Figure 5.11). It is clear from the above figure that when the Central Corridor performs well thevolumes on the Northern Corridor decline, and vice versa. With the exception of tea (normally less than10,000 t/year), which is still auctioned in Mombasa, a large proportion of the cargo flow using theNorthern Corridor is comprised of goods originating from the EAC market. However, the fact that94 See Annex 6 (Volume II) for a map of the main transportation routes in East Africa.97 / 153