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Improving Transnational Transport Corridors

In the OIC Member Countries: Concepts and Cases

134

4.6.4.

Trade Facilitation

Northern Corridor operations are based on the NCTA. The NCTA, signed in 1985, came into

force in 1986 after the necessary ratification and asserts the following:

Ensure freedom of transit among the member states

Safeguard right to access to/from the sea for landlocked countries

Develop and integrate the regional transport facilities and services

Facilitate inter-state and transit trade

The Democratic Republic of Congo became the fifth member after acceding to the Agreement

in 1987.

Trade between member states and the rest of the world is shown in

Table 43 .

The most

important aspect to note is that intra-regional trade is 18% of total trade, so much higher than

the 6% between TAH1 participants. The reason is more likely to historic than due to the

transport corridor since Kenya, Uganda, and Tanzania were part of the East African

Community for many years and also during British colonial era.

Table 43: Trade matrix NTTC in 2015

Source: Fimotions (2017), analysis on data o

n www.trademap.org .

Trade Facilitation programs include:

Simplification, rationalization, harmonization, standardization and modernization of

trade business processes and documentation;

Rationalization and minimization of trade transaction costs;

Promotion of private sector participation in policy formulation and implementation of

activities relating to trade and transport facilitation;

Improving industry service standards and encouraging self-regulation;

Harnessing ICTs towards a smart Corridor.

Because of this long-standing and ratified agreement, the analysis of the Northern Corridor has

shown that its performance has improved and the delays experienced in 2009 have

disappeared. It shows that through coordinated working the costs of trading can be reduced

UGAN RWAN BUR KENYA DRC

S. SUDAN N. TANZ Total

World

%

UGAN

237.57 46.28 427.01 152.56 265.03 60.76

1,189 2,267 52.5%

RWAN

9.37

6.41 90.38 186.53

5.34

1.11

299

579 51.7%

BUR

3.38

4.63

13.43 28.27

N/A 2.19

52

114 45.6%

KENYA

554.53 147.98 36.22

239.23 225.75 237.32

1,441 5,628 25.6%

DRC

3.64 11.02 36.22

2.96

N/A 0.63

54 6,313 0.9%

S. SUDAN

0.84

0.00

N/A 14.02

N/A

N/A

15 2,335 0.6%

N. TANZ

62.89 41.30 44.03 793.89 198.29

0.10

1,141 5,854 19.5%

Total

635

443

169 1,342

805

496

302 4191.1

World

5,528 1,858

561 19,430 5,812

623 14,706

23,091

%

11.5% 23.8% 30.2% 6.9% 13.8% 79.6% 2.1%

18.2%

COUNTRY

Imports (Millions USD)

Exports (Million USD)