Comparative costs of transport : the Northern Tier countries of the Greater Horn of Africa -- executive summary

The study identified 13 different route variations which are in use for import and export traffic within the region. These routes, which can be categorized into four corridors, originate from six major ports: Port Sudan in Sudan, Massawa and Assab in Eritrea, Port Djibouti in Djibouti, Berbera in Somalia, and Mombasa in Kenya. This executive summary presents findings concerning the existing transport industry (ports, railways, road freight, etc.); procedures for cargo movement; major cost components of cargo movement; and the effects of transport linkages on food security. The major finding is that transportation costs in this subregion are high, estimated at 9.5%-37% of CIF value of consignment for routes to Khartoum, 20%-34% for routes to Gonder, 21%-28% for routes to Addis Ababa, and 276%-302% for routes to southern Sudan via the port of Mombasa. Factors that contribute to the high costs include inadequate investment in infrastructure, poor condition of existing infrastructure, bureaucratic policies, cumbersome operating procedures and regulations, and insecurity, among others. Recommendations for lowering transportation costs are presented in conclusion.