w w w. s a f m a r i n e. c o m UNCTAD Expert Meeting on Design and Implementation of Transit Transport Arrangements Practical Transit Problems Encountered by a Carrier in Africa 24 – 26 November 2004

w w w. s a f m a r i n e. c o m Types of carriage Merchant haulage Carrier haulage Carrier delivers in port of discharge under B/L Receiver makes own arrangements for inland haulage Receiver pays container deposit to cover any detention Carrier delivers at inland destination under Through Bill of Lading Carrier organises all transit formalities

w w w. s a f m a r i n e. c o m Practical Transit Problems Encountered by a Carrier in Africa Customs transit clearance Transport Infrastructure Documentation Transport regulations Equipment cost

w w w. s a f m a r i n e. c o m Customs Transit Clearance Procedures are not transparent and sometimes complicated resulting in delays, fines and penalties Inviting for interpretation and often a source for extortion Clearing of bond / bank guarantees are taking to long (financial constraints + cost) Seal integrity

w w w. s a f m a r i n e. c o m Transport Infrastructure Congestion Capacity constraints Draft restrictions in ports Poor conditions due to lack of maintenance Lack of railway equipment resulting in cargo shifting to road transportation

w w w. s a f m a r i n e. c o m Transport regulations Do not apply to all operators e.g. weight restrictions International carriers are maintaining minimum standards and hence out priced by operators maintaining lower standards

w w w. s a f m a r i n e. c o m Equipment cost Turnaround time is high Higher maintenance and repair cost Imbalance cost

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Problems resulting in Higher risk Higher insurance Uncertainty for importers in their planning and hence too high inventory cost

w w w. s a f m a r i n e. c o m The way forward from a carrier point of view Door to door solutions, covered by Through bills of lading, one contract of transport from origin to destination Transparent and easy Customs transit procedures Improve the transport infrastructure (through bilateral aid) Privatisation of container terminals, railway operators and ICD