Tanzania recognised for improvements in transport logistics

Geza Ulole

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28th March 14
Tanzania recognised for improvements in transport logistics


Correspondent Mtei David
Tanzania has made a big leap in logistics performance from the 138th position seven years ago to 88th today, according to the World Bank’s Global Logistics At least Performance Index.

At least 155 countries were ranked by the bank, according to a report released this month by Price Water House Coopers (PwC).

The report shows that Tanzania is doing better in developing the transport infrastructure compared to most African countries, despite the quality still remaining poor and negatively impacting on the economy’s productive capacity.

Titled: “Africa Gearing up: Future Prospects in Africa for the Transportation and Logistics Industry,” the report states that infrastructure in the East African nation has witnessed impressive investment in recent years.

It says there is more to come as transport infrastructure projects worth USD19bn (roughly 3.04trn/-) are in pipeline.

The report which gives an in-depth analysis of 10 economies’ transport and logistics indicators in Tanzania and Kenya in East Africa mainly to give investors and other interested stakeholders an insight into the key economic regions in the continent.
The analysed indicators include agriculture, retail trade, manufacturing, transport, logistics performance, ports, aviation, railways and roads.

According to the report, despite having made significant progress in infrastructure development in recent years, Tanzania’s transport infrastructure is still inadequate to meet the needs.

The country is expected to be one of the fastest growing economies in the world with key drivers to growth expected in natural resources, especially in natural gas discoveries, regional integration and infrastructure investment.

The report adds that a number of railway projects with an estimated value of over USD14bn are currently at various stages of development.

They includes a USD2.7bn project to develop a new railway line from Tanga at the Indian Ocean to Lake Victoria in Mara Region. However, it commends Tanzania for allowing competition in its domestic airline sector by introducing many providers on each of routed. Currently the country has 17 routes. Since the report aims at giving investors and other interested stakeholders an insight into the key economic opportunities in the continent, some stakeholders have commented on the improvement of the infrastructure sector

“As Africa has risen to prominence as an investment destination over the past few years, so the role of transportation and logistics has taken on greater significance …. Whether moving resources off the continent or bringing goods and services into its burgeoning economies, Africa’s future growth and development will depend on the quality of its infrastructure and the efficiency of its transport networks,” PwC Transportation and Logistics Global Leader Klaus-Dieter Ruske said. “There is a fast growing demand for the vast raw commodities available on the continent. Africa has an abundance of oil, gas, and mineral resources and significant opportunities for agricultural expansion.” He said.

“For logistics companies prospects in the retail and manufacturing sectors are also significant and lead from a period of sustained growth experienced by many African countries,” PwC Transport and Logistics leader for South Africa Andrew Shaw said.

THE GUARDIAN

wonder what number is Kenya? waltham, lawmaina78
 
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Congrats for trying so hard and for the first time am seeing your media not comparing reports with Kenya. That's a good gesture, work hard and stop using Kenya as your yard-stick. However, you still have to do lots of huffing and panting to catch up with Kenya, we ranked 74 and are amongst the top 10 low-income performers on the 2014 LPI. We will continue to beat you in every statistics http://lpi.worldbank.org/sites/default/files/LPI_Report_2014.pdf You need serious thinkers in that country, go-getters.
Tz is blessed with resources, but you're not good at scoring, something just not right.
 
Tz iz a sleeping Giant we need to wake up Guys
 
KENYA NA RWANDA KAKA NDIYO WAPO JUU AFRICA.PONGEZI HIVI KARIBUNI OBSESSION NA KENYA IPO DOWN KIDOGO LEO IUMEPOST KUHUSU LOVELY TZ.
PRESS RELEASE
[h=2]Logistics Performance Index (LPI) Report: The Gap Persists[/h] March 20, 2014






WASHINGTON, March 20, 2014 – The gap between the countries that perform best and worst in trade logistics is still quite large, despite a slow convergence since 2007, according to a new World Bank Group report released today. This gap persists because of the complexity of logistics-related reforms and investment in developing countries, and despite the almost universal recognition that poor supply-chain efficiency is the main barrier to trade integration in the modern world.
The report, Connecting to Compete 2014: Trade Logistics in the Global Economy, ranks 160 countries on a number of dimensions of trade -- including customs performance, infrastructure quality, and timeliness of shipments -- that have increasingly been recognized as important to development. The data comes from a survey of more than 1,000 logistics professionals. The World Bank Group's International Trade Unit has produced the Logistics Performance Index (LPI) about every two years since 2007.
"The LPI is trying to capture a rather complex reality: attributes of the supply chain," said Jean-François Arvis, Senior Transport Economist and the founder of the LPI project. "In countries with high logistics costs, it is often not the distance between trading partners, but reliability of the supply chain that is the most important contributor to those costs."
In the 2014 LPI report, Germany showed the world's best overall logistics performance. Somalia had the lowest score. As with previous editions, the 2014 report finds that high-income countries dominate the world's top-ten performers. Among low-income countries, Malawi, Kenya, and Rwanda showed the highest performance. In general, the trend across past reports has been that countries are improving and low-performing countries are improving their overall scores faster than high-performing countries.

The 2014 report finds that low-income, middle-income, and high-income countries will need to take different strategies to improve their standings in logistics performance. In low-income countries, the biggest gains typically come from improvements to infrastructure and basic border management. This might mean reforming a customs agency, but, increasingly, it means improving efficiency in other agencies present at the border, including those responsible for sanitary and phyto-sanitary controls. Often, multiple approaches are required.
"You can't just do infrastructure without addressing border management issues," Arvis said. "It's difficult to get everything right. The projects are more complicated, with many stakeholders, and there is no more low-hanging fruit."
Middle-income countries, by contrast, usually have fairly well-functioning infrastructure and border control. They generally see the biggest gains from improving logistics services, and particularly outsourcing specialized functions, such as transportation, freight-forwarding, and warehousing.
In high-income countries, there is a growing awareness of – and a demand for – "green logistics," or logistics services that are environmentally friendly. In 2014, about 37 percent of LPI survey respondents shipping to OECD countries recognized a demand for environmentally friendly logistics solutions, compared with just 10 percent of those shipping to low-income destinations.
In recent years, as tariffs have dropped globally, logistics and other aspects of trade facilitation have gained profile as an arena for reducing trade costs. A 2013 study by the World Bank Group and World Economic Forum found that reducing the high transactions costs and unnecessary red tape faced by traders could provide a significant boost to global GDP. In January, the World Trade Organization (WTO) finalized a "trade facilitation agreement" that sets standards for faster and more efficient customs procedures and contains provisions for technical assistance and training in this area. The World Bank and six other multilateral finance institutions supported the WTO's efforts in a unified statement in October.
In this broad context, the LPI is increasingly respected by policy makers. In Indonesia, for example, the index is formally used to measure the trade ministry's performance. The Asia-Pacific Economic Cooperation (APEC) organization uses the LPI to measure the impact of an initiative to improve supply-chain connectivity. The EU Commission has used the LPI in its Transport Scoreboard and in its 2013 evaluation of the EU Customs Union.
"The LPI is a concrete tool for raising awareness and spurring improvements," said Jeffrey Lewis, Director of the Economic Policy, Debt and Trade Department. "It allows us to evaluate constraints across a broad set of countries."
The World Bank Group's support for trade facilitation improvements among its client countries has been substantial. The World Bank Group spent $5.8 billion in 2013 on trade facilitation projects, recognizing that logistics barriers hamper developing countries' participation in the international trading system.
Caveats: The LPI can provide a reference point, but it should not be considered an exhaustive diagnostic tool. The LPI is sometimes compared to the Doing Business ranking – and has some topical overlaps – but it differs in a number of ways. While Doing Business uses data on regulations that are "on the books," the LPI uses survey data from logistics professionals who answer questions about their experiences in various countries. This approach is an effort to more accurately capture the day-to-day reality faced by the private sector.
 


Rwanda a size of one Tanzanian district while Kenya is less than half of Tanzania in size and the gap is 16 places
 
rwanda a size of one tanzanian district while kenya is less than half of tanzania in size and the gap is 16 places

did you read the article or you just kicked the blanket, saw kenya n rwanda and ukakurupuka tu.crazy
 
Rwanda a size of one Tanzanian district while Kenya is less than half of Tanzania in size and the gap is 16 places
You're the one who stoked the wasps by bringing up statistics you know too well we will still beat you. Tanzania is twice the size of Kenya but every bit of it is resourceful and fertile unlike Kenya where half of the country is semi-arid and drought stricken. So stop the excuses and work hard. Wake up that giant and have it take its position in Africa. Give that country to Rwandans for a week and see what it will become.
 

Usimwamshe aliyelala.Usije ukalala wewe
 
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