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Northern Corridor DIGEST Issue No2 March2021

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0% found this document useful (0 votes)
15 views9 pages

Northern Corridor DIGEST Issue No2 March2021

Manuel and magazine at once

Uploaded by

Charlz Breezy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 9

March 2021

Digest
Northern Corridor Transit and
The Northern Transport Coordination Authority

Corridor Autorité de Coordination de Transit


et de Transport du Corridor Nord

Page 1
> Member States adopt the
Greenhouse Gas Emissions
Estimation Model

Page 4
> The Mombasa Port throughput
registered a slight decline in
2020

Member States adopt the Page 6


> Northern Corridor Transit Time

Greenhouse Gas Emissions Indicator Improves in the Last


Quarter of 2020

Estimation Model
Page 7
> Kenya Railways Slashes

O
n Tuesday 9th March 2021, the with support from TradeMark East Africa Mombasa to Naivasha ICD SGR
Northern and Central Corridor (TMEA) will support the Corridors’ Transport Freight Rates by 15%
Authorities and Stakeholders from Observatories to regularly report on
the respective Member States held a virtual performances related to GHG emissions
validation workshop for the report on a as well as help identify possible reduction/
model for the estimation Greenhouse Gas mitigation potentials in climate change
(GHG) Emissions for the Northern and projects in the two Corridors.
Central Corridors. The model developed

Wash Your Hands/ Sanitise Wear a Mask Social Distancing


For an Efficient, Smart and Green Corridor

Speaking during the virtual event, “The program seeks to raise


TMEA’s Chief Technical Officer, Ms awareness on pollutant impacts
Allen Asiimwe, said the model would and mitigation strategies; advocate
be vital in addressing issues of climate for more sustainable freight
change in the region. transport systems and modes;
and streamline transport activities
“With the region having started to through routes optimisation, loads
trade under AfCFTA in January 2020 consolidation, and reducing empty
and the trade volumes projected to trips,” he said.
rise, GHG emissions are also expected
to increase. “The model is, therefore, “The Northern Corridor
an opportunity to establish baselines Secretariat prepared a baseline for
for member countries in the region on the port of Mombasa in 2017 and
transport-related emissions,” she said. that of the corridor in 2018,” he
added.
UNCTAD Chief of Trade Logistics
Branch, Ms Frida Youssef, in her Mr Omae Nyarandi called for
remarks, ‎agreed that the model continued collaboration between
would help in defining a strategy to the Member States of the
shift to sustainability patterns in the Northern and Central Corridors
economic, environmental and social to ensure all activities agreed
patterns. upon in the validation exercise are
implemented.
Mr Omae Nyarandi, the Northern
Corridor Secretariat Executive Capt. Dieudonné Dukundane,
Secretary, revealed that the ‘Green the Executive Secretary Central
Freight Program’ along the Northern Corridor, remarked that green
Corridor was developed in 2016 logistics and sustainable freight
to minimise health, safety and are a reality and called on the
environmental impacts of freight corridors to engage development
movement with support from UNCTAD partners, the private sector,
and TMEA. governments and decision-makers
TMEA’s Ms Asiimwe revealed that
in the implementation of the said
over USD 200 million had been set
recommendations.
aside to support regional governments
and the private sector in the region
to acquire new technology to support
the Green Freight Programme. She
urged that climate change discussions
make to the centre of regional
governments’ cabinet discussions.

In developing the tool to estimate


GHG emissions along the corridors,
the study employed energy-based
and activity-based methodologies.
It considered fuel consumption and
work done by factoring the different
truck categories, routes representing
different countries, vehicle make,
gross weight of the categories of
trucks, fuel consumption when loaded
and on empty trips, the average age
of the vehicle, its average speed, and
type of load. For quality check, the
survey’s outcome- fuel efficiency of
[File, NCTTCA] the trucks was compared with figures
from similar studies in the region.

2| The Northern Corridor Digest


For an Efficient, Smart and Green Corridor

The study identified Mombasa-


Nairobi, Mombasa-Busia, Mombasa-
Malaba, Nairobi-Busia, Busitema-
Kampala, Mbale-Goli, Mbale- Elegu,
Luwero-Elegu, Luwero-Goli and
Mubende- Kasindi routes in Kenya
and Uganda as the most GHG
intensive constituting 95% of total
GHG emissions of the Northern
Corridor. In the Central Corridor, Dar
es Salaam to Goma, Dar es Salaam
to Kigali and Dar es Salaam to
Bujumbura routes contributed 98%
of GHG emissions.

The Study report recommended


reducing GHG emissions by 20%
by 2030, considering 2020 as the
baseline in the Central Corridor
and reducing by 15% by 2030
considering 2021 as the baseline
in the Northern Corridor. It argues
that reducing GHG emissions for
the corridor routes would translate
to GHG emission reductions in
the individual member countries’
transport sector.
The Central and Northern Corridors aim to reduce GHG emissions by 20% and 15%,
considering 2020 and 2021 as the baselines. [File, NCTTCA] Both corridors and truck operators
traversing through them ought to
reduce empty return trips through
From the findings presented, GHG loaded return journeys contributed 0.22
route optimisation, reverse logistics
emissions of the Northern Corridor are MMtCO₂e and empty return journeys
for efficiency and cost-effectiveness
1.72 MMtCO₂e (million metric tons of 0.29 MMtCO₂e emissions.
and implement a truck aggregator
carbon dioxide equivalent) while that of
GHG intensities in both corridors show model.
the Central Corridor is 1.24 MMtCO₂e. In
the Northern Corridor, the GHG intensity that empty return trips contributed
The study also emphasises
for onward journeys was 1.0 MMtCO₂e more GHG emissions compared to
capacity building for truck drivers
while that of the return journey when loaded return trips. In both corridors,
on eco-driving practices, shifting
loaded was 0.30 MMtCO₂e, and empty exports make only 14% of the total trade
focus to fuel-efficient vehicles and
return trips at 0.42 MMtCO₂e. Onward resulting in a higher proportion of empty
implementing vehicle efficiency
journeys in the Central Corridor return trips, with nearly 30% of trucks
improvement projects.
contributed 0.73 MMtCO₂e while the loaded and 70% returning empty.

The Northern Corridor Digest |3


For an Efficient, Smart and Green Corridor

The Mombasa Port throughput registered a


slight decline in 2020

Mombasa Port recorded a 1% decline in total throughput in 2020. [File, NCTTCA]

D
ata from the Northern Corridor In terms of containers handled, the port pandemic and the subsequent worldwide
Transport Observatory reveals of Mombasa during the period January– sluggish economic activities occasioned
that the Port of Mombasa December 2020 recorded a total of by suppression of demand due to
sustained its performance in January- 1,359,579 TEUs compared to 1,416,654 lockdowns and travel restrictions. Later in
December 2020 with a slight decline TEUs in 2019, registering a 4.0% decline the year, as the nations started to adapt
compared to its throughput in the by 57,076 TEUs. to the ‘new normal’, the port throughput
corresponding period in 2019. The hub started to moderately resume to pre-
recorded a throughput of 34 million The COVID-19 pandemic struck when COVID-19 levels.
metric tonnes (MT) in 2020, a 1% the Northern Corridor region was
decline from 34.4 million MT handled performing well. In January-December The Northern Corridor Transport
in 2019. However, this was 5% short 2019, the Port of Mombasa recorded Observatory, which is a performance
of the projected 35.9 million MT in 34,439,264 tons with a growth of monitoring tool, records that during
total throughput and 1.49 million 3,515,976 tons, 11.4% compared to the COVID-19 period, various industries
twenty-feet equivalent units (TEUs) in the 30,923,288 tons registered in the faced challenges along their supply
container traffic in 2020. The sustained corresponding period in 2018. These chain such as raw material shortages,
performance was facilitated by previously numbers were on an upward trend for lead time issues, reduced working hours,
achieved advancements on soft and hard January and February 2020. However, equipment and labour shortages, as well
infrastructure at the port that enhanced they dipped from March 2020, with the as truck-transport capacity constraints.
its efficiency. Coronavirus disease declaration as a

4| The Northern Corridor Digest


For an Efficient, Smart and Green Corridor

Out of the 34 million MT handled in


January-December 2020, 81.5% were
imports. Exports constituted 12.2% and
transhipments 6%, while restows stood
at 0.3%. As a percentage share of the
total throughput, imports recorded a
1.5% rise from 27.6 million MT in 2019 to
28 million MT in 2020. Exports reduced
from 4.3 million MT to 4 million MT while
transhipment traffic struggled to meet
the record growth witnessed in 2019 and
dropped from 2.5 million MT to 2 million
MT in 2019 and 2020, respectively.

Further, Transport Observatory reports


reveal that during January-December
2020, 64.2% of the port throughput was
domestic cargo (Kenya bound), transit Traffic jams in Kenya along the Northern Corridor in the wake of the COVID-19
cargo was 29.9%, and transhipment pandemic. [File, NCTTCA]
accounted for 6% of the total market
share. Total transit cargo through the
Port of Mombasa posted a growth of undermining the smooth movement of 15 OSBPs already established. Business
2.2%, recording 10.2 million MT against trade flows and supply chain operations processes have also been significantly
10 million MT handled in 2019. and significantly threatening to erode automated, and the quality of road
the trade and transport facilitation gains conditions along the corridor improved.
Concerning transit cargo share per
achieved over the years.
Northern Corridor Member State, The implementation of the Standard
Uganda remains the largest transit However, the Mombasa Port Gauge Railway (SGR) in Kenya and the
market share at 75.7%. South Sudan performance in 2020 when Coronavirus establishment of Inland Container Depots
stands at 10.4%, DRC at 7.2 %, Rwanda disease ravaged world economies is in Nairobi and Naivasha have contributed
at 4.2%, and Burundi takes 0.01%. Other a clear indicator of the monumental to the speedy evacuation of cargo from
partner States in the region constituted infrastructural developments along the the port.
2.5% of the total transit volumes through corridor. Tremendous strides have been
the port of Mombasa. made to enhance efficiency, including While the long-term economic impact
infrastructure developments at the of COVID-19 remains uncertain, the
Transit volumes for Uganda and Burundi ongoing works at the port of Mombasa to
port, faster clearance of goods with the
reduced by 5.4% and 69.9% respectively construct new berths, linking of Naivasha
implementation of the Single Customs
in 2020 against the volumes recorded for ICD to the Metre Gauge Railway (MGR),
Territory (SCT) across the region,
2019, while transit volumes to Rwanda, the kick-off of trading under the African
development of Regional Electronic
South Sudan and DR Congo increased by Continental Free Trade Area (AfCFTA),
Cargo and Driver Tracking Systems,
84.5%, 37.1% and 33.7%, respectively. and the envisioned Dongo Kundu Special
implementation of COMESA Trade
Facilitation Instruments, and installation Economic Zone, among other initiatives,
In general, the performance of the Port
of the High-Speed Weigh in Motion are set to improve the Mombasa Port
of Mombasa and the entire Northern
(HSWIM) improving the weighbridge efficiency translating to even better
Corridor was affected by disruptions
crossing time. Currently, 23 OSBPs have performance.
caused by restrictions introduced in
response to the COVID-19 pandemic, been identified across the region, with

The Northern Corridor Digest |5


For an Efficient, Smart and Green Corridor

Kenya Railways Slashes The move follows an outcry by the


Private Sector on issues with operational

Mombasa to Naivasha ICD SGR


efficiency and cost-effectiveness of
Naivasha ICD and the request through
a multi-stakeholder report produced in
Freight Rates by 15% November 2020 for a 50% reduction on
freight rates. The report commissioned by
The Kenya Private Sector Alliance (KEPSA)
in partnership with the Shippers Council

K
enya Railways (KR) has container on an upward journey of East Africa (SCEA) had proposed the
reduced the Standard (Mombasa- Naivasha) will now reduction of rates from USD 600 to
Gauge Railway (SGR) be charged USD 510 from USD USD300 for 20ft container, from USD 800
cargo tariffs by 15% to promote 600 previously charged. On the to USD 400 for 40ft container of up to
Naivasha Inland Container same route, a 40ft container of 20.9 tonnes, and from USD 910 to USD
Depot’s (Naivasha ICD) use. The up to 20.9 tonnes will be charged 500 for 40ft container above 21 tonnes.
new freight rates came into effect USD 725 from USD 850, while a
Commencing operations in May 2020,
on 16th February 2021. 40ft container above 21 tonnes
the facility was expected to reduce
will be charged USD 775 from
Through an update on their transport costs, guarantee minimum non-
USD 910.
website, KR says that a 20ft tariff barriers (NTBs), facilitate fast and
predictable cargo evacuation from origin
to destination, and reduce greenhouse
gas emissions generated from the
transport sector, amongst others.

With the new rates, KR says that goods


destined for the hinterland, Uganda,
Rwanda, South Sudan, Burundi, Ethiopia,
and the Democratic Republic of Congo
can now be delivered cost-effectively
to and from Naivasha, thus reducing
the cost of doing business and spurring
regional economic growth through trade
facilitation.

Kenya Railways has in the recent past


resumed the double-stack trains, each
hauling 152 TEUs per move. The move is
set to increase cargo evacuation speed
from the Port of Mombasa to the ICDs.
A rubber-tyred gantry crane loads a container onto a truck in Naivasha ICD. They (KR) are keen to sustain the efforts
[File, NCTTCA] to reduce cargo dwell time at the Port of
Mombasa.
On a downward journey compared to USD 180 charge if
Rehabilitation works on the Metre
(Naivasha to Mombasa), the they wish to transport by road.
Gauge Railway are underway to link the
new rates indicate that a 20ft Conventional cargo is charged
Naivasha ICD to the Kenya-Uganda border
container will be charged USD at a rate of USD 0.044 per ton/
to bring cargo even closer to destination
255, USD 360 for a 40ft container Km (tonne per kilometres). The
for the transit countries.
of up to 20.9 tonnes and USD rail distance from Mombasa to
390 for a 40ft container above Naivasha ICD is 553 kilometres.
21 tonnes. Hauling of empty However, it is noteworthy that
containers by rail back to the the freight rates do not cover
port will cost shippers USD 120 handling charges.

6| The Northern Corridor Digest


For an Efficient, Smart and Green Corridor

Northern Corridor Transit Time Transit time measures the time taken
by transporters from the port to deliver

Indicator Improves in the Last


cargo to the destination. It is affected
by numerous factors that occasion
delays and stoppages along the corridor
Quarter of 2020 from Non-Tariff Barriers (NTBs) to road
conditions, inspections, road accidents,

T
insecurity, driver resting time, among
ransit Time in almost all According to the Northern Corridor others. The COVID-19 pandemic
routes along the Northern Dashboard Quarterly Performance Report presented a challenge for movement
Corridor improved during for the period October to December 2020, of goods with Health Ministries in the
the last quarter of 2020 following transit time from Mombasa to Kampala Member States instituting protocols
reduced border crossing times due to reduced from 167 to 131 hours, 167 to requiring truck drivers to be tested and
initiatives to facilitate easier border 135 hours from Mombasa to Elegu, 214 present a COVID-19 free certificate at
crossing for truck drivers and crew. to 187 hours from Mombasa to Kigali, the border, social distancing and travel
curfews.

The Mombasa Port and Northern


Corridor Community Charter (MPNCCC)
target for transit time from Mombasa
to Malaba was 60 hours by December
2020, and from Mombasa to Busia, 65
hours by December 2020. From the
quarterly report, the average transit
time improved significantly from 121
hours in October 2020 to 82 hours in
December 2020 along the Mombasa-
Malaba route. More than half of the
trucks to Malaba recorded an average
of 108 hours transit time in October and
an average of 80 hours in December
2020. The average transit time from
Mombasa to Busia reduced from 115
to 83 hours, and from Mombasa to
Taveta border reduced from 34 to 26
hours in October and December 2020,
respectively.

In Rwanda along the Northern


Corridor, the average transit time from
Cyanika to Rubavu improved from
38 hours in October to 19 hours in
Transit time is affected by Non-Tariff Barriers (NTBs), road conditions, inspections, December 2020. Kagitumba to Mururu
road accidents, insecurity, driver resting time, among others. [unsplash.com] route transit time worsened from 53
hours to 60 hours in December 2020.

In Burundi, under the ASYCUDA


and from 216 to 160 hours Mombasa Organisation (WHO) in March 2020,
system, the average transit time from
to Mpondwe. The positive trend was transit time was on a steady rise. The
Bujumbura to Kanyaru-Haut and
greatly attributed to the opening up worrying trend was due to measures
Nemba/Gasenyi (export routes) was
of borders by the Northern Corridor put in place by the Member States,
inconsistent over the period varying
Member States and implementing the including lockdowns, curfews, social
from as high as 299 hours to a low of
Regional Electronic Cargo and Driver distancing, disinfection, mandatory
240 hours on Kanyaru route.
Tracking System (RECDTS). COVID-19 testing and, in some cases,
relay trucking to prevent transmission The quarterly report points out that
Since the declaration of COVID-19 of the Coronavirus disease across barriers to cargo movement still exist
as a pandemic by the World Health borders.

The Northern Corridor Digest |7


For an Efficient, Smart and Green Corridor

along the route, resulting in prevailing the Vehicle Load Control Charter that Although the opening up of borders
inefficiencies. Truck drivers from commits users of the corridor to comply by the Northern Corridor Member
Bujumbura to Gasenyi/Nemba border with load limits to protect the roads from States and the implementation of
took an average of 182 to 299 hours, 240 pre-mature damage due to overloading. RECDTS were crucial in reducing
to 299 hours from Bujumbura to Kanyaru transit time, the region has invested
Haut, 39 to 46 hours from Kanyaru Haut Weighbridges in Kenya along the
immensely towards the reduction of
to Bujumbura, and 21 to 67 hours from Northern Corridor are fully automated
transit time through improvement
Kayanza to Kanyaru Haut, in October and and installed with High-Speed Weigh
and expansion of road infrastructure,
December 2020 respectively. The report in Motion (HSWIM), except for the
implementation of the Single Customs
also records an average transit time of 84 Busia weighbridge. The quarterly report
Territory framework for clearance
hours from Kayanza to Gasenyi. records a steady performance of over
of goods, Installation of One-Stop
Border Posts (OSBPs), among others.
These initiatives have enhanced the
efficiency of the corridor and, to no
small extent, played a part in reversing
the effects of Coronavirus disease on
transit time.

The report says that improvements


in road infrastructure around the
seaport and the corridor at large
and the implementation of Standard
Gauge Railway (SGR) have significantly
played a part in the recovery during
the quarter. However, it notes that
there is still a challenge of automated
data exchange among the member
States participating in the SCT
framework of clearing goods. The SCT
Traffic jam along the Malaba road due to enforcement of COVID-19 platform for the exchange of data on
protocols at the border. [File, NCTTCA] goods being cleared is not efficient.
The report echoes a recommendation
from previous Northern Corridor
Transport Observatory studies to
COVID-19 testing protocols 95% compliance levels except for Busia
adopt a single transit system for the
notwithstanding, the long delays within weighbridge, whose compliance level
Northern Corridor for clearance of
Burundi were due to steep terrain and ranged between 81% and 90%. Low
internationally traded goods.
poor road conditions resulting from compliance at the Busia weighbridge
damage by rain and overloaded vehicles. could be attributed to the weighbridge In addition to the implemented
not implementing the HSWIM technology, initiatives, the report argues that a
The quality of transport infrastructure reducing its efficacy. detailed assessment of the regional
is crucial to reducing transit times and
level vulnerability to put in place
subsequent reduction of transport costs. To avoid transit delays and penalties
national and trans-boundary disaster
Overloading is a major factor in the to cargo transporters, measures are
mitigation measures will transform
depreciation of transport infrastructure. required by both transporters and the
the Northern Corridor into a resilient
The transport observatory monitors the road authorities to ensure compliance
corridor and reduce transport costs.
efficient performance of the weighbridges and efficiency of the weighbridges.
and the level of implementation of

8| The Northern Corridor Digest


The Northern
Corridor Digest

NORTHERN CORRIDOR
TRANSIT AND TRANSPORT
COORDINATION AUTHORITY

KENYA

@NorthernCoridor NorthernCorridor

The Permanent Secretariat Telephone E-mail:


1196 Links Road, Nyali +254 729 923574 [email protected]
P.O. Box 34068-80118 +254 733 532485 Website:
Mombasa, Kenya www.ttcanc.org

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