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  • Publication
    Transport and Logistics in Djibouti : Contribution to Job Creation and Economic Diversification
    (Washington, DC, 2013-02) World Bank
    The objective of this policy note is: (i) assessing the current situation of the transport and logistics sector in Djibouti, in particular regarding employment; (ii) examining the potential of the sector for creating jobs and generating new activities; and (iii) analyzing the constraints and making recommendations to alleviate. The note is divided into three chapters: (1) a diagnosis of transport and logistics; (2) opportunities and strategic priorities for the future; and (3) a suggested action plan. This policy note deals with transport and logistics and provides key input to the Djibouti New Growth Model study. The note relies on the findings of the World Bank mission that visited Djibouti in January 2012 to collect data and interview various representatives of the public and private sectors, as well as on a literature review. The note concludes that transport and logistics have a relatively limited potential for reducing unemployment since port activities are capital-intensive; the trucking industry serving the corridor to Ethiopia is totally dominated by Ethiopians; and the ongoing improvement of the supply chain s efficiency tends to cut jobs for a given volume of trade.
  • Publication
    Study on Regulation of Private Operators in the Port of Djibouti
    (Washington, DC, 2012-06) World Bank
    Within a partnership framework with the Emirate of Dubai, the government of Djibouti has developed, during the last decade, an outstanding port and logistics hub with few precedents in other African countries. The objective of the present study is to strengthen the competitiveness of the ports of Djibouti (old port of Djibouti and new port of Doraleh) and ensure their medium-term and long-term development by designing a modern and efficient regulation system for private port operators, and specifically addressing issues related to the quality of service and pricing, in addition to institutional related issues. The port of Djibouti's competitiveness can be measured by its capacity to counter competition from other ports through the quality of its infrastructures and services, performance and port costs. Real or potential competition facing the port of Djibouti concerns non-captive traffic and its two components, transit and transshipment traffic. The port of Djibouti's natural competitors for Ethiopia's transit traffic are the ports of Berbera, Assab, Massawa, Port Soudan and Mombasa due to landlocked Ethiopia's extensive terrestrial borders with Somalia, Eritrea, Soudan, and Kenya. But this competition remains potential and very marginal due to the unfavorable geopolitical context and/or the inferior quality of infrastructures of these ports. Conditions of competition regarding transit traffic could nevertheless evolve as it is in Ethiopia's natural interest to diversify its sea-access routes so as not to depend on a single port that may be tempted to abuse of its dominant position with non-competitive tariffs. Contrary to existing competition on container transshipment traffic, potential competition on transit traffic will have a more considerable impact on all Djibouti port operators in terms of tonnage handled and revenue loss, as it will affect all types of traffic (conventional and containerized, liquid and dry bulk) and because transit charges are considerably more lucrative than transshipment charges. Port activities that need to be regulated to reinforce the port of Djibouti's competitiveness are the commercial services for cargos and vessels provided by port operators.