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

Table 5.3: Characteristics of Clearance Times for Burundi Import Cargo atPort of Dar es Salaam (based on data for Sep - Nov 2008)Daysbetween:discharge andinvoice paymentinvoice paymentand releasedischarge andreleaseMean 11 6 16Median 10 4 15St. dev. 9 6 12Maximum 57 45 80Minimum 0 0 0Source: Author’s calculations based on TPA dataTable 5.4: Aggregate delay between unloading from vessel and final delivery to theclient in Dar es Salaam port, September to November 2008Indicator Local All transit DRC Zambia Rwanda Burundi UgandaMaximum 107 119 113 112 70 80 56Minimum 0 0 0 0 0 0 0Mean 13 15 15 16 11 16 11Median 9 12 13 13 7 15 7Standard 13 13 12 13 11 12 12deviationTotal 302,840 118,180 50,060 27,600 21,000 14,880 2,760trafficSource: World Bank (2012e)The numbers indicate two characteristics of Burundian cargo handled at the Port of Dar es Salaam: (a)more than a week on average is lost just at the port, and it is not unusual for clearance times to exceedsix weeks; and (b) clearance times are marked by a high level of variability, which indicates that theclearance process is unpredictable. Empirical evidence does suggest that unreliability increases logisticscosts, as firms are forced to maintain high inventories to minimize the risk of stock-outs.Long cargo dwell time is a pervasive problem in Africa, with both complex causes and a severelydetrimental impact on trade. Recent research by the World Bank suggests that, beside institutionalinefficiencies and deficient infrastructure, political economy factors bear a heavy responsibility in thedelays at sub-Saharan African ports 95 . This report notably shows that the private actors involved in portoperations may have incentives to keep dwell time long and use the port as a storage area, in order toreduce their costs, limit competition and extract rents. While it has no direct control on the operations ofDar es Salaam port, Burundi should actively cooperate with the Tanzanian authorities to obtain furtherimprovements of dwell time for its cargo, as least to bring it in line with those achieved for cargodestined to other landlocked countries such as Rwanda and Uganda.6.1.2 Tanzania RailwaysA major component of the Central Corridor system has always been the railway line that connectsDar es Salaam to the dry port at Isaka. However, the line has not been fully operational in recentyears. In fact, traffic volumes have fallen from a peak of about 1.5 mtpa in 1994 to current levels ofabout 0.5mtpa. Even then, this volume is reached only when the line is fully operational, which it has notbeen for more than a year. The condition of the asset has deteriorated and substantial investments are95 See World Bank (2012e).99 / 153