Tanzania - Transport sector memorandum (Vol. 1 of 3) : Volume I

Document of The World Bank FOR OFFICIAL USE ONLY CONFIDENTIAL Report No 4042-TA TANZANIA TRANSPORT SECTOR MEMORANDUM VOLUME I January 4, 1985 Eastern Africa Projects Department This document has a r4ztricted distribution and may be used by recipients only In the performance of their official duties Its contents may not otherwise be disclosed without World Bank authorization.  IANZANIA TRANSPORT SECIOR MEMORANDUM GLOSSARY OF ABBREVIA1IONS ATC - Air Tanzania Corporation BT - Bank of Tanzania CIDA - Canadian International Development Aid DAC - Department of Civil Aviation DANIDA - Danish International Development Aid DIL - Directorate for Import Licenses EAC - East African Community EDF - European Development Fund JAICA - Japanese Aid and International Cooperation Agency MF - Ministry of Finance MOCT - Ministry of Communications and Transport MOW - Ministry of Works MPEA - Ministry of Planning and Economic Affairs NBC - National Bank of Commerce NIC - National Insurance Corporation NIT - National Institute for Iransport NIC - National Transport Corporation RAO - Regional Administration Office RD - Roads Division REICO - Regional Transport Companies SIDA - Swedish International Development Aid SMC - State Motor Corporation IAMCO - Tanzania Automobiles Manufacturing Company TAZARA - Tanzania-Zambia Railways TLA - Transport License Authority IHA - Tanzania Harbors Authority TRC - Tanzania Railway Corporation ZR - Zambian Railways Exchange Rate Employed US$1.0 = 1Sh 9.3 (1982) (unless specified otherwise)  T A N Z A N I A TRANSPORT SECTOR MEMORANDUM VOLUME I SECTOR ISSUES Table of Contents Page No. I. BACKGROUND ................................................ 1 II. THE TRANSPORT SYSTEM .......................................... 1 III. LAND TRANSPORT FLOWS .......................................... 2 IV. TRANSPORT ISSUES AND FUIURE STRATEGY .......................... 4 A. Transport Planning and Coordination ....................... 4 B. The Trucking Industry ...................................... 4 C. Road Maintenance .......................................... 5 D. Opeations of Railways and Ports ........................... 6 V. GOVERNMENT STRATEGY FOR THE SECTOR ............................ 7 VI. POLICY MEASURES URGENTLY NEEDED IN THE SECTOR ................. 8  TANZANIA TRANSPORT SECTOR MEMORANDUM1/ VOLUME I I. Background 1. The combination of a large territory and widely dispersed population (of'17.5 million) places a heavy burden on Tanzania's transport system: large numbers of people and a heavy volume of goods have to be moved over long distances. Additional demands are placed on Tanzania by the fact that it serves as a transit country for its landlocked neighbors, Zambia, Rwanda, Burundi and eastern Zaire. 2. Tanzania's economy is now facing the most serious crisis since independence. Transport sector plays a key role in the nation's economy generally and in particular with regard to the agricultural sector since the condition of secondary and feeder roads and the efficiency of the trucking industry are of prime importance to the supply of agricultural inputs and the evacuation of agricultural produce. Development of the transport sector, however, faces three principal constraints. First, shortages of foreign exchange and import restrictions seriously hamper the operational efficiency of all transport modes since they result in a dearth of spare parts and replacements for equipment and vehicles. Second, sharp increases in fuel prices coupled with periodic interruptions in imports of oil have caused frequent disruptions in the transport services. Third, the serious lack of appropriately trained personnel has an adverse effect on the operations of the various parastatals and Government agencies involved in the sector. II. The Transport System 3. The transport infrastructure consists of: (i) about 50,000 km of roads; (ii) two railway systems: the Tanzania Railway Corporation (TRC) with 2,640 km of track and Tazara, which is jointly owned by Tanzania and Zambia and has some 970 km of track in Tanzania; (iii) three main ocean ports, at Dar es Salaam, Tanga and Mtwara; and (iv) two international airports (Dar es Salaam and Kilimanjaro) and more than 20 other airports. The pillars of the system are (i) TRC Railway line crossing the country and connecting the Indian Ocean port of Dar es Salaam with the port of Kigoma on Lake Tanganyika and Mwanza on Lake Victoria, and the line from Dar es Salaam to Tangan and Arusha; and (ii) the Tan-Zam highway arid Tazara Railway extending south-west from the port of Dar es Salaam and crossing into Zambia. 1/ TSM Volume I, summarized by D. Jovanovic, Sr. Economist and reviewed by M. Dick, Sr. Economist, presents the main findings and recommendations which are explained in detail in Volume II.  - 2 - 4. The transport infrastructure is relatively less develored than in some neighboring countries: the road network density (0.05 km/km or 2.8 km per thousand inhabitants) is one of the lowest in the region. Rehabilitation and maintenance of what facilities there are should be addressed as a matter of urgency since they are no longer adequate, for instance, to meet the needs of agriculture, should expected recovery in production take place. Engineering standards on the existing highway network are generally low: only about 2,500 km (5% of total) of road is bituminized. 5. The efficient functioning of the sector is also hampered by structural and managerial constraints. Lines of responsibility are often unclear and coordination between agencies involved in transport activities is weak. The Ministry of Works* (MOW) is responsible for construction and maintenance of the primary and secondary roads while the regional authorities are in charge of rural roads. MOW is also responsible for the construction and maintenance of airports. Railways, the three major ocean ports and internal air transport are operated by autonomous parastatals set up in 1977 after the break-up of the East Africa Community (EAC). Another parastatal, the National Transport Corporation, is in charge of several parastatal trucking and passenger transport companies. The parastatals are still struggling with essential difficulties--in organization, management, accounting and staffing. While the parastatals are operationally autonomous, they must look to the Ministry of Communications and Transport* (MOCT) for major decisions (e.g. investments, tariffs and other policy matters). 6. An important element in the sector is the trucking industry which is estimated to carry over 60