TRANSPORT costs along the Northern Corridor have significantly dropped in the last three years making it the most efficient route in the East and Central Africa region, latest data show. According to the East Africa Logistics Survey 2015, the average cost of transporting a forty-foot container from Mombasa to Nairobi is down dropped to $1,000 (Sh102,360) last year from a high of $ 1,300 (Sh133,069) in 2011. Transport cost from Mombasa to Kampala came down to $2,500 (Sh255,901) from $3,400 (Sh348,026) over the same period. This is lower compared to the Central Corridor mainly served by the port of Dar-es-Salaam, where rates recorded a marginal increase, placing Mombasa as the cheapest entry point for goods into the region.

Data by the Shippers Council of East Africa shows the cost of transport from Dar es Salaam to Kampala have increased from $2,507(Sh256,618) in 2011 to $4,500 (Sh460,623) in 2015. This has been coupled with low compliance at weighbridges, time taken at the data processing centres and cargo dwell time at the port. “The general drop in price can be attributed to a drop in fuel prices and also an increase in the supply of trucks, which lead to cut throat competition among the truckers. Northern Corridor is currently cheaper than the Central Corridor to various destinations in the East and Central African region,” the report released last week reads. The route with the highest rate of decline was Mombasa-Juba at 44 per cent, dropping from a high of $9,800 (Sh1.0 million) to $5,500 (Sh562,984), with the overall transport costs on the Northern Corridor declining by 28 per cent over the last five years.

Along the Central Corridor, average transport rates increased by 39 per cent over the same period. Kampala rates increased by 79 per cent while Bujumbura remained relatively stable at three per cent. The region is mainly served by the two corridors. The 1,700 kilometre long Northern Corridor that serves Kenya, Uganda Rwanda, Burundi and Eastern D.R. Congo, with an exit and entry point at the port of Mombasa. The 1,300 kilometre long Central Corrido serves Tanzania, Rwanda, Burundi, Uganda and Eastern D.R. Congo, with an exit and entry point at the port of Dar-es- Salaam. The two corridors facilitate export and import activities within the EAC region on a combination of rail, road and lake transportation networks.

Source: The Star

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