Wednesday, March 17, 2010

Inter-modal Linkages in Africa's Transport Sector

Intermodal transitions (in which freight is transferred from trucks to trains, trains to ships, or other modal combinations) is particularly time consuming and inefficient throughout Sub Saharan Africa (SSA).  In many cases, intermodal links are the main bottleneck for freight movement and for many SSA countries, the freight forwarding industry is entirely reliant on manual loading and unloading for intermodal transitions. This is in stark contrast to more developed economies.   

For example, improving intermodal links was a major factor in the export-driven development of Southeast Asian countries. Starting in the 1980s, these countries restructured their transport sectors into multimodal supply chain management sectors that took advantage of containerization and the internationalization of production.   Improvements in intermodal links in Southeast Asia were correlated with increased trade flows (especially of intermediate goods), increased integration into global production networks, and growth in domestic manufacturing sectors.

Intermodal connections can facilitate the vertical integration of commodity chains since logistics sectors typically evolve from a three-stage system of transporting commodities (from rural hinterlands to marketplaces, from marketplaces to ports, and then from ports to overseas markets) to integrated door-to-door supply chains;  a highly efficient system.  

Logistics and intermodal transitions are clearly areas where African countries need to enhance their transport sector efficiencies further.

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