Tunisia - Review of development plan 1965-1968 (Vol. 6 of 7) : Transportation & communication

RESTRICTED FILE COPY Report No. AF-39a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION REVIEW OF 1965 - 1968 DEVELOPMENT PLAN TUNISIA VOLUME VI Transportation and Communication November 22, 1965 Africa Department  CURRENCY EQUIVALENTS Prior to September 1964 U.S. $ u .420 Dinara Since September 1965 U. S. $ a . ZZ5 Dinars  TRAMSPORTATION AND CO114UNThCATION TABLE OF CONTENTS Pag e A. INTRODUCTION4 1 The Over-all View 1 Investments 1 Major Transport Problems 3 B. HIGHWAYS 6 The Road System and Classification 6 The Highway Department 7 Design Standards 8 Road Construction I-ethods 9 Road Maintenance 9 Road Construction and Maintenarice Costs 10 Highway Receipts and Costs 10 HighwJay Planning 10 Development Plans 11 C. ROAD TRANSPORT INDUSTRY 13 General 13 Government Autlhority 13 The Road Transport Fleet 1 The 1965-68 Four Year Plan 14 Public Road Transport Organization 15 D. RAILWAYS 16 General 16 The National Railways (SNCFT) 17 The Sfax-Gafsa Railroad 19 E. SEA PORTS AND I4ARITIE TRANSPORT 20 The Ports and Port Organization 20 Traffic 21 The Tunis-La Goulette Port Complex 22 Investment Plans 22 The Marine Service (Coast Guard) 23 The Compagnie Tunisienne de Navigation (CMT) 23  -2- Page F. AIR TRAMSFCRT AND METEOROLOGY 24 Organization 24 Air Traffic 24 Investments 24 The Tunis El Aouina Airport 24 Tunis Air 25 Meteorology 25 G. POSTS AND TELECOI-21ITICATIONS 25 ANNEX 1. Transportation, Storage and Communication. Share in GDP and Gross Fixed Capital Forma- tion. An International comparison. ANNEX 2. Output and Consumption, Based on the Input/ Output Tables in the Four.-Year Plan (1960 Prices). ANNEX 3. 1965-68 Four-Year Investment Plan. ANNEX 4. Highway Department Budgets. ANNEX 5. Road Construction and Maintenance Costs. ATNNEX 6. Highway Investment Program. Performance Under the 1962-64 Three-Year Plan. ANNEX 7. ]iighway Investment Program - 1965-68 Four-Year Plan. ANNEX 8. Number of Motor Vehicles in Tunisia. ANN1EX 9. Public Road Transport Companies - Cost Structure (1964). ANNEX 10. NIational Railways - Summary of Financial Results. ANNEX 11. National Railways - Rail Traffic and Receipts From Traffic. ANNEX 12. Railwtays - 1965-68 Four-Year Investment Plan. ANNEX 13. IIaritime Traffic - Tunisian Ports ANN,EX 14. Port Investment Program. Performance Under the 1962-64 Three-Year Plan.  - 3 - ANNEX 15. Port Investment Progran - 1965-68 Four-Year Plan. ANNEX 16. Principal Tunisian Airports. ANiEX 17. Tunis Ea Aouina Airport - Passenger Traffic. ANNEX 18. Tunisian Airports. Investment Plans. ANIEX 19. Pcst and Telecommunications Investment Program - 1965-68 Four-Year Plan.  IV. TRANSPORTArTION AND COW3UNICATION A. INTRODUCTION The Over-All View 1. Tunisia has a relatively good and extensive highway network, four najor sea ports, railways covering the northern and central part of the country; and a few domestic air con- nections. Thistransport infrastructure, if well managed, is substantially adequatk L-; meet the country's transport devel- opment needs. Cnl ;:u.ar-inal or incr.mental imnprovements are needed in the 1965-63 Flan Period. 2. Railway construction was started in 1876. Lines in the north provided an integrated transport system between Tunisia and Algeria; other lines connected mining and agri- cultural production centers to sea ports, and provided com- munication along the northern and central shoreline. in rmore recent years there has been a rapid expansion of the highway network. Relatively low construction costs, due to physical cnnditions, and government policy to build roads by established department forces, provided a stimulus to build and improve roads intensively. The Government has large control over rail and road operaticns which is not alwa.',Ts cornucive to prontlote sound trans ort con.,etition an: eificient trzansp)ort P.anagerent. Also, paoiLic attitudes are in general .ore favorable to roads -ilan to ri:filways; the latter are often being regarded as inefficiant and deficit-genera-in. .lode of trans ort-. Thus while raiLway equipment - an: the. road traansport fleet - are wearian out, road. tend.tD bc averbailt. 3. One change in the administrative setup occurred when the major ports recently came under the management of an autonomous oort authority established with the assistance of IBRD. 4. Transport and communications as a sector makes an important contribution to the economy. Tne value added to GDP averaged 7 percent over 1960-63. No significant change for the sector's share in GDP is expected over the 1965-68 period. No significant shifts have taken place within the sector in recznt years. an-- none a-re eypected for 1968, the s-ar- of eaca. subsector remainir5: road transport, 33 percent; railways 28 percent; rnlariti:o tracks ort 6 percent; air-as 6 percent; p?rts 15 percent; Post rnci Telecommunications 12 percent. Investments 5. It is difficult to appraise past investments in trans- port in Tunisia. The investment program scheduled under the 1962-64 Plan was not rigorously adhered to; some of the original  -2- projects were abandoned and new ones initiated. In many cases, budget allocations were committed and not used for the project involved, in other cases expenditures exceeded allo- cations, in some cases payments were made on projects which had no allocations. Assessment of the investment problem is also obstructed by the lack of basic traffic and other information. -Ioi:ever, the sector's share of gross fixed capital formation, amounting to about 11-1/2 percent over 1960-64, appears to have been on the low side as compared to many otnier countries. This probably reflects not only that Tunisia's transportation network is already reasonably well developed, but also that investment in transport equipment (motorcars, etc.) has been inadequate. (See ,nnexes 1 and 2). 6. The 1965-68 Plan envisages investments in transport and communications amounting to Dinars 55 million in net investments and to Dinars 67 million in gross investments (See Annex 3). lWnile the total amount of investment is probably reasonable in view of over-all traffic needs, the Plants provisions for replacement are obviously insufficient. On the other hand certain economies seem possible in investments planned for new projects. The mission suggests that this matter be carefully studied, taking into account some of the specific suggestions contained in this report, 7. As described in the Plan, all road and bridge projects are related to projects in other sectors of the economy (agri- culture, industry, tourism). Their justification therefore cannot be arrived at independently. The mission could not always clearly ascertain the criteria used by the Highway Department for the classification of the various roads under the sector headings concerned; some of the roads in the program should probably be considered general rather than special purpose roads. The urban development projects incorporated in the Plan will require further investi-ation by competent consultants in order to study their economic justification and to prepare the necessary engineering designs. 8. The most important commercial port project, La Goulette (Tunis), is already under construction with the help of IBRD financing. Another important project would be the commercial port of Ghennouch (Gabes), as a part of the proposed chemical complex at the same place. The construction of the new fishing port at La Goulette, for which financing is expected from Europe, is also planned. Among the less urgent projects should be mentioned the fishing and com,mercial port of Tabarka. Important amounts are allocated in the plan for the purchase of ships for the Compagnie Tunisienne de Navigation.  9. The main item in the airport projects is the terminal building complex at the Tunis El Aouina airport. Ihe justification of this project prepared by consultants on the basis of its expected financial returns, seems of a doubtful character from the point of view of the national economy. Important amounts are allocated in the Plan for the procurement of additional airplanes for Tunis air. 10. Railway investments are primarily for replacement of rolling stock and track, although they are shown in the Plan under the heading of net investments. The replacement pro- visions seem insufficient; the mission generally feels that more attention should be given to modernization projects to improve efficiency. 11. Major projects in telecommunications include the cable Tunis-France, and the new inland cables. The telecommunica- tions program must be considered as flexible; the investments concerned can, if necessary, easily be adjusted in scope and timing to changes in budget allocations. 12. About 31,000 people are employed in transport, ac- counting for 2-1/2 percent of the total labor force in 1964. Employment in the sector is expected to increase at the same rate as the total labor force, i.e. by 10 percent during 1965-68. On the basis of a planned 33 percent increase in the value added by the sector, an increase in labor producti- vity of about 20 percent is thus implied by the Plan projections. Major Transport Problems Introductory Comment 13. 'he following discussion on Tunisia's principal trans- port problems is the result of the evaluation of information collected by the mission during its journey in 'Y'unisia. The amount of information received in the various fields was not even: in some cases comprehensive data could be obtained, in others only scarce indications. This uneveness of information is reflected in the report; more attention could be given to themes for which documentation was more abundant. Personnel 1I. Executive and managerial positions are filled by small but capable staffs. however, there is an acute shortage for specialized personnel (administrative, accountants, foremen, etc.) below the management level. Skilled labor is also a problem, especially in Tunis where alternative job opportunities in other sectors are often more attractive. Training programs exist, but they are hardly sufficient to fill skilled labor needs. Rigid salary policies in the public and semi-public sector make it difficult to retain skilled manpower.  Cost Accounting and Control 15. Accounting procedures of the administration are primarily designed for budgetary purposes. or in the case of the public and semi-public transport enterpiises, for bookkeeping. Nc records exist by which expznditures can properly be charged against various operating functicns. Therefore, no adequate knowledge of real transport costs exists. Tnis deficiency has over the years obstructed tariff setting, transport coordination and investment planning. Also, the respon- sibilities for spending budget funds and for controlling budget expenditures are not clearly separated in the admi- nistration. Condition of Facilities and Equipment 16. There is progressive antiquation of the facilities and rolling stock of the national railways, and of the road fleet. A lag of about 10 years exists in rail renewal, and 65 percent of the national railway's freight cars are 35 years old or older. The workshlops of both the national and Sfax-Gafsa railways were only partially re-adapted to dieselization when this mode of traction was introduced. The average age of the road fleet is high, many vehicles being older than 10 years. This trend toward antiquation is, of course, dangerous because it increases transport costs unduly; ultimately the transport sector will no longer be able to meet efficiently the requirements of the oconomy. 17. Efficient use of facilities and equipment is also made difficult because of the lack of standardization. Attempts to standardize equipment have in recent years often been hampered by Drocurement being deterrined by source of finance. Data Collection 18. Information on road traffic is nonexistent, and statistical information on the road fleet is inaccurate. As the Highway Department does not collect transport statis- tics at all, and as no adequate knowledge exists on over-all transport costs, sound investment planning is difficult. Tariffs 19. Both rail and road tariffs, which are obligatory, were fixed in the 1950's and have been frozen since. The transport enterprises know little about the relationship of transport costs and prices; consequently, there exists no insight into the adequacy of the rate structure. The inflexi- bility of rates hampers sound transport competitions retards incentives for efficient management, and discourages operation of transport enterprises in a businesslike manner.  - 5 - Transport Policy and Coordination 20. The Govermnent, which is responsible for transport policy, is in a position to influence investments, rate structures and transport regulations so as to try to mini- mize real national transport costs. Unfortunately Tunisia does not yet appear to have an explicit policy toward trans- port coordination. Thought needs to be given to the nature and scope of government action which could encourage the allocation of traffic to the most efficient transport modes, and eliminate unnecessary red tape in transport management, inadequate tariff structures, duplication of infrastructure and cperaticns, etc. Transport Planning 21. Transport investments in Tunisia have not been based on a systematic transport plan which takes into account needs and resources on a national scope. Even in the selection of individual projects, the systematic comparison of costs and benefits to assure that a reasonable rate of return on the investments concerned can be expected is in general not sufficiently practiced. Planning of road construction in Tunisia usually proceeds from lists of desired projects established by local authorities and submitted to the central government for budgeting. In appraising them the dynamic approach of the H-Iighway Department aimed at generating work for its forces seems to play an important role. The rail- way administration tends to refrain from taking long-range prospects into consideration, restricting themselves to bare upkeep of the existing operations. The public road transport companies have been created only recent:Ly and for that reason do not yet have estab.ished any tradition or methods of planning. Recommendations 22. Officials in the Government are generally aware of most of the critical problems in transport, and strongly feel the need for a more systematic approach to planning, and for a reassessment of the role of the central govern- ment in the management of the transport sector. Their approach is substantially pragmatic. The need for basic information and studies to guide their decisions toward rational solutions is also recognized; some of these studies are now being initiated, but foreign assistance is needed to help coordinate them and carry them out properly. For this purpose the mlission suggests as its most important recommendation of a long-term nature with respect to the transport sector that Tunisia obtain competent foreign assistance in order to help develop a Hlaster Plan for trans- portation. Such a plan should focus on the follcwing major areas:  - 6 - 1. A long-term investment plan based on the nature and volume of traffic which the future economic development of the country will involve, and on the allocation of traffic to the most economic transport modes. Such a study should also out- line frcm the above plan specific projects to be carried out in the short run. 2. Recommendations to improve the Government admi- nistration of transport, including especially the organization for transport planning. 3. The improved management and operation of various transport enterprises. B. HIGHIAYS The Road System and Classification 23. The development of the Tunisian road system for motor vehicle use originated in tne 1890's, parallel with the country's economic revolution at the end of the 19th century. The first cycle of road expansion ended in the second decade of the 20th Century; at that time the road system comprised 1,100 kms. of macadam roads and 2,600 kms. of earth roads and trails. A new period of expansion and modernization of xoads took place in the 1930's and continued up to the present. This period is characterized by the exten- sive bituminization of roads, at a steady rate of about 180 kms. per year, and a sharp increase in the total length of feeder roads and trails. The present road system consists of 6,650 kms. bituminized roads, 1,100 kms. macadam roads and 7,800 kms. earth roads and trails. (total 15,550 kms, see map 1) 24. The classification of roads is closely related to the country's administrative subdivisions, rather than to traffic densities or standards. A Grand Parcours (GP) net- work, connecting the main administrative centers, is inter- woven with Moyenne Communication-(MC) and Route Vicinale d'Etat (RiVE) networks. The Highway Department is responsible for the whole road system; municipal authorities are respon- sible for urban networks, but they often rely on the assist- ance of the .Uepartment. The national road system covers the whole country with the exception of the southern desert part. The highest road densities are found in the north and along the Sousse-Sfax-Hedenine-Ben Gardane coastal strip. These regions, with about 60 percent of the total population, account for about one-third of Tunisia's total area. A comparison of ratios of cars per km. of road and kms. per population with other Mediterranean countries provides a-useful. perspective:  -7- No. of Cars Kms. Road per Country Per Km. Road 1,000 Inhabitants Tunisia 4.7 3.7 Algeria 2.7 6.8 Morocco 2.9 4.4 Spain 8.5 4.2 Yugoslavia 2.1 3.2 Greece 1.8 1.8 Syria 3.7 1.8 The Highway Department 25. Organization. The Highway Department comes under the authority of the State Secretary for Public Works and Housing. The Department is headed by a Chief Engineer; it has central divisions in Tunis and 16 regional subdivisions located in the various administrative centers of the country (see Orga- nization Chart). The Chief Engineer is also in charge of the construction of airports and seaports (except the ports which were recently transferred under the National Port Authority). An Economic and Technical Studies Division has recentLy been authorized but is not yet staffed; the Department contemplates engaging consultants to assist in the economic planning and feasibility studies of road invest- ments. 26. P