Burkina Faso Transport sector a change process in West Africa Seminar - Political Economy at Work Brussels, 11-12 January 2011 Paul Riembault DEVCO Disclaimer: This document cannot be taken as reflecting the official view of the European Union. It is posted on Capacity4Dev as a mere working document . The information is not necessarily comprehensive, complete, accurate or up to date. The document should also be considered incomplete without the oral presentation. See also http://ec.europa.eu/geninfo/legal_notices_en.htm
Transcript
Burkina Faso Transport sector
a change process in West Africa
Seminar - Political Economy at Work Brussels, 11-12 January 2011
Paul RiembaultDEVCO
Disclaimer: This document cannot be taken as reflecting the official view of the European Union. It is posted on Capacity4Dev as a mere working document. The information is not necessarily comprehensive, complete, accurate or up to date. The document should also be considered incomplete without the oral presentation. See also http://ec.europa.eu/geninfo/legal_notices_en.htm
The context– Historical mean of transport : Rail– 1980’ economic crisis / rail poor maintenance - bad service –
consideration that transport is a commercial service.– Goods have shifted to the road– slow process of overloading has started ! – Ivory Coast crisis 2002 – Rail closed…Explosion of overloading !
Knowledge building
• Awareness of overloading but only among professionnals
• Attempts to tackle the problem in some countries : Niger – failure• Oct 2008 – research study published – key finding =
• Euro 45 million addit. maintenance costs needed per year (based on current practice)
Further knowledge : the unsolvable equationHow to reduce load and avoid inflation ?
• In spite of subsidies, transport prices among highest in the world
• Supply chain counts 20 % of the price of imported/exported goods.
• Transport prices and costs analysed :
– Overloading is necessary to balance the accounts !
– Number of Rotations / month is too low !
– Transport is hindered by rigid procedures (tour de role, freight allocations) and all sort of abnormal practices..
EC dialogue with further stakeholders
• Transport companies labelled as hooligans for destroying roads
• Meet individual Transporters : Local company matter because they are different from the unions – more aware of the need to change
• Capacity is available ! Some companies could easily turn into allies
• The harsh reality of oil transport :
– the more the better, no way to invest into compliant trailors
– safety is not an issue
Overloading tolerance is a subsidy to oil price
Cotonou to Bamako (4.000 km/truck/rotation)
Oil supply of landlocked countries : average vol. 58.000 litres / truck
(vs. +/- 35.000 litres acc. to existing rule)
Further opening-up to other stakeholders
The private industry was also looking for solutions
Corporate Social Responsibility
MINING COMPANIES
Civil society
Oilindustry
Caveat :individuals matter !
Working out a technical solution
Member states Public expertise + Experts from private Industry
2009 : Overloading OuagadougouThe hard line reaction
2009 : Overloading OuagadouguThe hard line reaction
• Road map : Ouagadougou I (Stakeholders of 9 countries incl. Transport Ministers of the UEMOA – Ghana area)
• Final agreement to focus on enforcement and measure results after one year
• Tough bargaining between governments and donors, especially Mali and Burkina Faso
…Beginning of application in a minority of countries. Overall results are disappointing
A more structured work with non traditional stakeholders
• Private banks confirm interest to fund transport sector
• …but legal framework has to be coherent
..There is almost « free » room for manoever in the legal framework
..a programme to support modernisation of local transport should be possible
Setting-up an incentive programme for transport companies
• Renewal scheme not functionning outside the very privileged environment of Total project (Oil for Mining companies, rotations accelerated, 5 years guaranteed cash flow)
• Problem of previously acquired illegal trucks / trailors not solved
..Proposal to use 6 MEUR for a cash for clunkers scheme (vs building 10 km road)
...Entering into a “progress contract” with Transport companies
Starting to tackle the facilitation issue
• In Tema 70 % of goods arrive in container and 80% are stripped :– Source of fraud– Source of overloading– ..of unpredictability
• West Africa is out of the global supply chain
Should the legal framework always punish ?..Bonus for container transport
Second stakeholder workshop one year later 2010 : Time for (enlightened) dialogue
• Roadmap Ouagadougou II : UEMOA-Ghana workshop on overloading (March 2010 in Ouagadougou).
• Objective : assess progress, difficulties, and propose
realistical solutions.
• Clear to a majority that the enforcement had not worked – reality check to all attending
• The workshop allowed significant progress, like a realistic standard for long distance oil transport and a bonus granted to containerised transport
Ouaga 2010 unleashes private project !
• TOTAL – BOA – AGFLEGRAS – 4 local transport companies
• 50 new trucks complyingWith loading and safety rulesSatelite tracking, etc.
• Not the market logic : Priority to Capacity Development
• Virtuous circle engaged !
Ouaga 2010 unleashes private projects !
Overloading : Change process engaged ?Where will be West Africa in 15 years ??
• For the time being, road has no real competitor• Once a true alternative will be in place, the region may
decide to revisit its legal framework to shift freight back onto the rail
A complex governance issue does not belong to one actor only
In that case, « ownership » is replaced by a « credible change process »
• Change process :• Improving competitiveness (unleashing private projects)• Bonus for containers (multiplyer effect)• Brokering a consensus toward progress..
• Incentives for all actors..– Truck renewal scheme– Transport safety and supply chain predictability– Political credit
