The use of tracking technology for improved management of trade corridors

Abstract

The sub-Sahara African economy is suffering from the inefficient management of trade corridors. Long delays experienced at weigh bridges and border posts are a big contributor towards the slow average movement of freight. Weigh bridge and cross-border operations are complicated by the conflicting law-enforcement objectives of authorities versus efficiency objectives of transport operators. It furthermore suffers from illegal practices involving truck drivers and officials. This paper provides proof that the efficiency of trade corridor operations can be improved based on the availability of more accurate and complete information supported by currently available tracking technologies. We firstly quantify the size of the problem and estimate the potential economic benefits that will be created by improved trade corridor operations. Secondly we propose a combined GPS/RFID system that can provide the required level of visibility to support improved operational management, resulting in a simultaneous increase in the efficiency of law enforcement and commercial freight operations. A cost-benefits analysis is performed to show that an attractive return on investment can be achieved if the majority of industry players will participate in such a system