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Burkina Faso Transport sector a change process in West Africa Seminar - Political Economy at Work Brussels, 11-12 January 2011 Paul Riembault DEVCO Disclaimer:

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Presentation on theme: "Burkina Faso Transport sector a change process in West Africa Seminar - Political Economy at Work Brussels, 11-12 January 2011 Paul Riembault DEVCO Disclaimer:"— Presentation transcript:

1 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

2 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 !

3 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) Study followed step by step by stakeholders

4 Overloading, awareness awakening-up : 2008 Regular truck..

5 Regular truck… EXTREME OVERLOADING 98 Tons !

6 Is it sustainable ? The additionnal repair is an expensive subsidy to road transport

7 2008 study Stakeholders steering committee Who has got the solution ? Reg.Org. ? Gvt ? Truckers ? Drivers ? Shippers ? Police ?

8 Further knowledge : the unsolvable equation How 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..

9 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

10 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)

11 Further opening-up to other stakeholders The private industry was also looking for solutions Corporate Social Responsibility MINING COMPANIES Civil society Oil industry Caveat : individuals matter !

12 Working out a technical solution Member states Public expertise + Experts from private Industry

13 2009 : Overloading Ouagadougou The hard line reaction

14 2009 : Overloading Ouagadougu The 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

15 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

16 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

17 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

18 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

19 Ouaga 2010 unleashes private project ! TOTAL – BOA – AGF LEGRAS – 4 local transport companies 50 new trucks complying With loading and safety rules Satelite tracking, etc. Not the market logic : Priority to Capacity Development Virtuous circle engaged !

20 Ouaga 2010 unleashes private projects !

21 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

22 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 And rule.. –dialogue (QSG temporarily suspending investment) –Police support –Peer pressure

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