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UNCTAD Expert Meeting on Design and Implementation of Transit Transport Arrangements

UNCTAD Expert Meeting on Design and Implementation of Transit Transport Arrangements. Practical Transit Problems Encountered by a Carrier in Africa 24 – 26 November 2004. Types of carriage. Merchant haulage. Carrier delivers in port of discharge under B/L.

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UNCTAD Expert Meeting on Design and Implementation of Transit Transport Arrangements

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  1. UNCTADExpert Meeting on Design and Implementation of Transit Transport Arrangements Practical Transit Problems Encountered by a Carrier in Africa 24 – 26 November 2004

  2. Types of carriage Merchant haulage • Carrier delivers in port of discharge under B/L • Receiver makes own arrangements for inland haulage • Receiver pays container deposit to cover any detention Carrier haulage • Carrier delivers at inland destination under • Through Bill of Lading • Carrier organises all transit formalities

  3. Practical Transit Problems Encountered by a Carrier in Africa • Customs transit clearance • Transport Infrastructure • Transport regulations • Equipment cost • Documentation

  4. Customs Transit Clearance • Procedures are not transparent and sometimes • complicated resulting in delays, fines and penalties • Inviting for interpretation and often a source for extortion • Clearing of bond / bank guarantees are taking to long • (financial constraints + cost) • Seal integrity

  5. Transport Infrastructure • Congestion • Capacity constraints • Draft restrictions in ports • Poor conditions due to lack of maintenance • Lack of railway equipment resulting in cargo shifting to • road transportation

  6. Transport regulations • Do not apply to all operators • e.g. weight restrictions • International carriers are maintaining minimum standards • and hence out priced by operators maintaining lower • standards

  7. Equipment cost • Turnaround time is high • Higher maintenance and repair cost • Imbalance cost

  8. Problems resulting in • Higher risk • Higher insurance • Uncertainty for importers in their planning and hence • too high inventory cost

  9. The way forward from a carrier point of view • Door to door solutions, covered by Through bills of lading, • one contract of transport from origin to destination • Transparent and easy Customs transit procedures • Improve the transport infrastructure (through bilateral aid) • Privatisation of container terminals, railway operators • and ICD

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