(PDF, 101 mb) - USAID

UGANDA COFFEE EXPRESS 11/8/82
enclosing a report from a university student who worked at
U.C.T.U. for approximately five months.
The Uganda Coffee Express propopal is based on ideal
operating conditions. In order to evaluate a profit, we must
construct the model to function at optimum efficiency. Only
then can the restrictions come into play.
Under ideal conditions, the cost to deliver a ton of coffee
to Mombasa is $96.88 (without a backhaul) compared to the
present truck rate of $94 per ton. This represents a saving
of $1,424,458 per year. Considering backhauls, the results
would be as follows:
The present rate on general cargo is $136.40 per ton,
and the rate on bulk cargo is $116 per ton. Assuming 50%
as general cargo, the average rate per ton would be
$126.2C. The maximum revenue per load per year would be
$3,786, and the maximum total revenue, $25,240. In other
words, the coffee could be hauled at no cost and still
realize a profit of $7,864,458. Or, putting it another
way, there would be a saving of $26,664,458 over present
transport operations.
There are three areas where it would be difficult to operate
at 100% efficiency:
i) Delays at Zistoms
Listed below is the yearly cost of each day of
delay based on yearly vehicle fixed cost of
$73,965:
1 Day, 18 additional vehicles = $1,331,370
2 Days, 36 = $2,662,740
3 Days, 54 = $3,994,110
4 Days, 72 = $5,325,480
5 Days, 90 = $6,656,850
6 Days, 108 " = $7,988.220
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