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Improving Transnational Transport Corridors

In the OIC Member Countries: Concepts and Cases

120

Algeria, the total cost of export procedures would be over $1,000 while the time taken for the

authorities to process documents, over 260 hours.

Table 32: EoDB of TAH1 corridor countries in 2016

Source: World Bank.

4.5.4.

Trade Facilitation

In this section trade and logistics is looked at; trade because a normal pre-requisite of

international transit transport corridors is that they generate intra-regional trade, not only

facilitating trade with the rest of the world; and logistics performance because a major

constraint for developing trade is poor logistics and correspondingly higher transport costs.

There are a long list of non-physical and non-tariff barriers that normally require serious

attention in all transport corridors and these are listed i

n Appendix 3.

Currently, NTBs are not big issues on this corridor as there are mutual procedures followed by

Tunisia, Libya, Algeria, and Morocco. Freight transports between Tunisia and Libya for

example, they only need to pass one document check at the border (Ra’s Ajdir) as they already

have advance manifests. The same goes for the border between Tunisia and Algeria In the past,

before the war in Libya took place, the clearing time at Ra’s Ajdir was less than one day (also

due to the fact that there is one special lane for trucks). Now, it can take 3-4 days due to

security checks in Libya. So currently the border crossing time in Libya is much longer than

that in Algeria (Abid, 2017).

There is a classical asymmetry in trade in all the subject countries, will trading more externally

with Europe than with themselves. The reasons are as follows:

4.

Historic due to colonial relations;

5.

Proximity (for most countries, European Markets are closer;

6.

Due to the border closure between Algeria and Morocco, trade between Tunisia and

Morocco must go via Marseille (France) and Genoa (Italy) through sea shipping. This is

also the case between Tunisia – Egypt. Transit to Europe is chosen for the reasons of

reliability, safety, guarantee/insurance, and above all to avoid the immobilization of

vehicles at the Libyan borders (UTICA, 2017).

EGYPT

122

168

48

258

88

100

LIBYA

188

114

72

575

72

50

TUN

77

92

50

469

3

200

ALG

156

178

118

593

149

374

W. SAHA

N/A

N/A

N/A

N/A

N/A

N/A

MAU

160

137

72

749

51

92

SEN

147

130

61

547

26

96

Country

Ranking

Border Compliance Documentary Compliance

Overall

Trading

across

borders

Time to

export

(hours)

Cost to

export

(USD)

Time to

export

(hours)

Cost to

export

(USD)