�ݺ�ߣ

Transport Sector Development in Ethiopia: Performance,
Policies and Its Role in the Economy

Presented by:
Amin Abdella
On
The Tenth International Conference on the Ethiopian Economy
19-21 July 2012

PRESENTATION OUTLINE

? Evolution of the Transport System,
? The Current State of the Transport Sector,

? Policy , Strategy, programs, regulatory issues

? Transport -Economy Linkage Analysis

? Transport and Agriculture
? Transport and Industry
? Transport and Trade
? Transport, Energy, Safety, and Environment,

EVOLUTION OF THE TRANSPORT SYSTEM

? Global Perspective
? Five different stages through which transport system has
passed
? Pre industrial Rev.

? Industrial Rev

? Emergence of Modern Transportation Systems (1870-1920)

? Fordism, the period 1920 -1970

? Post 1970 era

? National Perspectives
? Brief account of the introduction of the four modes of transport
into Ethiopia

THE CURRENT STATE OF THE TRANSPORT SECTOR

? The sector is broadly categorized under two : the
transport infrastructure(which includes roads,
railways, airports and dry ports) and the transport
services (services and transport equipment)

ROAD INFRASTRUCTURE
TRENDS IN THE ASPHALT, GRAVEL AND RURAL ROADS (GROWTH IN %)

16.00
14.00
Asphalt
12.00
10.00
8.00
6.00 Gravel
4.00
2.00
0.00 Rural
-2.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-4.00

Road Length, Road Density, Condition of Road and Access to
Road

%
Indicators 1997 2011
Change
Road Length (in km) excluding Wereda
26,550 53,143 100
Roads
Road Length (in km) including Wereda
26,550 53,997 103
Roads
49.1
Road Density 1/1000 sq.km 24 km 105
km
0.49 0.66
Road Density 1/1000 population 35
km km
Proportion of Area more than 5 km from
79% 61.20% 23
All Weather Road

Average Distance to all weather road 21km 10.2km 51

INVESTMENT IN THE ROAD SECTOR, BY FINANCERS

100%
90% 21.0 24.4 26.8
33.3 28.8 28.8
80% 42.3 49.5 45.8
70% 58.2
60%
50%
40%
63.9 66.3
30% 54.0 56.6 55.2 62.5
43.9
20% 32.8 34.7 35.9
10%
0%

Government Road Fund Donors

RAILWAY INFRASTRUCTURE
? In the last many decades no improvement has been made
on the existing 781 km long metre-gauge railway ,
? Recently, however, 8 railway routes have been identified for
construction with total length of 4793 km. Of which, 2395 km
railway will be constructed during GTP implementation
period,
? The construction of light rail transit service in Addis Ababa is
underway.

DRY PORTS AND AIRPORTS

? Dry ports
? Semera and Modjo dry ports have started providing services;
? Airports
? Developments have been made in expanding airports;
including upgrading of domestic airports into international and
expansion of bole international air port;

TRANSPORT SERVICE
TRENDS IN TRANSPORT , SERVICE SECTOR AND GDP, GROWTH IN %

30.0
25.0
20.0
15.0
10.0
5.0
0.0
-5.0
-10.0

Transport Service GDP

SHARE OF GDP

? GDP CONTRIBUTION
? Share of GDP remained at about 4.4 percent over the
last ten years,

? FOREX CONTRIBITION
? Forex generation is limited to the services of ESL & EAL
, EAL accounting for over 95 %
? EMPLOYMENT CONTRIBUTION
? According to the 2005 LFS, the sector generated
employment for about 0.5 percent of the total employed
population aged ten years and above

CONTRIBUTION OF TRANSPORT TO GDP, BY MODES
80.00
75.00
70.00
65.00
60.00
55.00
50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
(5.00)

Road Railway Water Air Others

ROAD TRANSPORT VA BY FREIGHT AND PASSENGER, SHARE
IN %

70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Passenger Freight

15
35

10
20
25
30
40

0
5
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00

Transport cons/transport total
TRANSPORT EQUIPMENT IMPORT

2000/01
2001/02
2002/03
CONSUMPTION AND CAPITAL TRANSPORT

2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
Transport total/Import

2009/10
2010/11

INVESTMENT IN CAR ASSEMBLY AS OF MARCH 2012

Operational Total

Types Capital Capital
N0. of % No. % in N0. of
in ' 000 in 000
Projects in total total Projects
birr birr

Domestic 1 2.6 55,798 8.2 39 683,538

Foreign 3 33.3 60,989 41.8 9 145,989

Grand Total 4 8.3 116,787 14.1 48 829,527

CONTRIBUTION TO TAX REVENUE
TAX FROM IMPORTS OF VEHICLES AND ACCESSORIES
4,500.00
4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-

MARITIME TRANSPORT SERVICES
120.0
100.0
80.0
60.0
40.0
20.0
0.0
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
Incoming Own Vessel in incoming(%)
Out-goining Own vessel in outgoing(%)

INTERNATIONAL AND DOMESTIC PASSENGERS GROWTH IN %

35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
(5.0)

International Domestic

URBAN TRANSPORT IN ADDIS ABABA

Three surveys were conducted in Addis Ababa
on public transport
? Observation of Commuters�� behavior at
bus/taxi stops
? Passengers�� interview and

? Drivers�� interview were conducted

SURVEY FINDINGS

? Transport problem is significant in the city specially during
the business opening and closing,
? The manners people enter into taxi is full of pushing and
hugging affecting women children and disabled segment
of the population,
? Workers usually arrive late to their workplaces,
? The total cost of being late to the economy is estimated at
Birr 274.1 thousand per day in lost working hours in Addis
Ababa,
? Passengers have, on the average, indicated their
willingness to pay higher price for better transport service
compared to the existing one,
? The business of transport service is considered as
unattractive compared with other businesses,

POLICIES, STRATEGIES, PROGRAMS AND REGULATORY
FRAMEWORK

? Ethiopia has not yet issued any transport policy to
guide the overall development of the sector.

? The emphasis before GTP was on infrastructure
component of transport sector after GTP
however, both infrastructure and service
components as well as institutional and
management arrangements of all modes of
transport has obtained attention.

STRATEGIES AND PROGRAMS

? A number of sub sector strategies have been
designed and implemented

? A series of sector development programs has been
designed and implemented, and currently on IVth
RSDP,

Regulatory Framework and Institutional issues

? During the last 20 years, government institutions have been
merged/mixed, separated, reorganized, and in some
cases, dissolved in one way or another. This measure has
created instability in the overall transport sector,

? For instance,
? the former Ministry of Infrastructure comprised
transport, communication and construction sub sectors.
? Later on, this Ministry was split into the Ministry of Transport and
Communication on one hand, and the Ministry Works and Urban
Development on the other.
? Immediately thereafter, the Ministry of Transport and Communication
was split into two independent ministries: Ministry of Communication
and Ministry of Transport.

TRANSPORT AND ECONOMY: LINKAGE ANALYSIS

? Transport and Agricultural activity location

? the productivity of areas with access o transport to the nearest
zonal markets (i.e. nearer to major towns/markets) is 17 quintals
per hectare, while others 13 quintals per hectare;

? An increase in the cost of transport, due to the length of
distances traveled or limited transport services, for
example, would reduce the probability of cash crops being
chosen by farmers relative to the base-group (i.e. cereals);

TRANSPORT AND INDUSTRIAL ACTIVITY LOCATION
? According to the survey, manufacturing industries, on the average, are
located within 2.5 km, 20.4km and 34.3 km from highways, railways
and airports, respectively,

? According to the survey, for 32 percent, 16.7 percent, 15.3 percent
and 15.3 percent of the manufacturing industries, the major location
decision was taken based on proximity to market, proximity to raw
materials, availability of transport and access to skilled
labor, respectively ;

? According to the estimation, the cost of transport in the overall cost of
production is, on the average, 8.7 percent. The cost
share, however, ranges from less than 1 percent for some sub-sectors
to 24 percent for others

TRANSPORT AND TRADE
? The survey indicates that the transport cost on asphalted road is
0.53 Birr per ton per KM, gravel is 25 percent higher than
asphalt roads rural road is 0.78 Birr per ton per KM, which is 45
percent higher than the cost on asphalted roads;
? Transport tariffs vary across different products for different
reasons. Transport tariffs for coffee are higher than those for
other commodities because of the risks involved in transporting
it.
? According to the survey, the transport cost margin in coffee
export is found to be less than 5 percent of its FOB price as of
May 2012.

TRANSPORT AND ENERGY

? Transport sector is entirely reliant upon petroleum with
the exception of railway transport, which uses electrical
power.

? In Ethiopia, the share of fuel consumption by transport
sector has been increasing from time to time,

? The share of fuel in transport to total fuel import has
increased from 91.2 percent in 1997/98 to 95.6 percent in
2010/11 leaving only less than 5 percent for other
sectors.

TRANSPORT AND SAFETY
? According to WB, Ethiopia had 3 vehicles per 1000
population just next to Bangladesh, Togo and Sao Tome
and Principe which had 2 vehicles per thousand
populations in 2007.

? Despite the low per capita vehicle ownership, the
country��s accident record is very high. The number of
deaths, serious and slight injuries has been
increasing, on average, by 6 percent 4.5 percent and
3.6 percent, respectively in the period 2002/03-2010/11.

? The reported accident is less than the actual one since a
number of cases remain unreported, especially when it
involves minor injuries in rural areas.

TRANSPORT AND ENVIRONMENT
? Transport has undesirable environmental consequences,
? According to the Climate Resilient Green Economy
(CRGE), of the total GHGs emissions of 150 MT in
2010, transport accounts for 3 percent,

End of Presentation

Thank You

�ݺ�ߣ

Eea energy - development

Recommended

More Related Content

Similar to Eea energy - development (20)

Recently uploaded (20)

Eea energy - development