TRANSPORT NOTES TRANSPORT RESULTS INITIATIVE THE WORLD BANK, WASHINGTON, DC Transport Note No. TRN-34 August 2006 Transport as a Factor in the Investment Climate Naomi Aoki and Peter Roberts This Note shows how, through a process of consultation between the World Bank Transport Sector and Private Sector Department, some focus on transport has been introduced into the Global "core" module of the Investment Climate Survey. The Note also shows the scope for achieving much more focus on specific transport constraints in Investment Climate Assessments for countries where these are expected to be particularly important. Examples are given of questionnaires which have been developed to complement the "core" module and specifically to meet the needs of two Regions, Africa (AFR) and Latin America and the Caribbean (LAC), where different aspects of transport have been identified as significant considerations for investors. For Africa the focus is on the availability of suitable transport services. For Latin America the emphasis is rather on the role of transport in influencing the location of enterprises. Application of these revised questionnaires will provide more data on the contribution of transport to doing business in different countries. Transport sector skills are required to help interpret the findings. These skills can also help to identify the specific transport issues which are likely to be of most significance for investment decisions in those Regions which have not yet focused on this. The Transport Results Initiative team is ready to assist with the further development of specific modules in these cases. This Technical Note has been prepared as part of the World Bank's Transport Results Initiative. This is led by the central Transport Unit (TUDTR) and is supported partly by the Japan Consultancy Trust Fund and partly through the trust fund provided by the United Kingdom's Department for International Development under the Transport and Rural Infrastructure Learning and Sharing Programme (TRISP) with the Bank. The findings, interpretations, and conclusions expressed here are those of the authors and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. Introduction requirements. The Note then presents how more detailed transport information has been introduced in the The World Bank's central Transport Unit (TUDTR) has questionnaires for national investment climate surveys in committed to strengthen client countries' transport sector two Regions. indicators under the Transport Results Initiative (TRI). To achieve this goal, the TRI team has started with reviewing Transport Role in the Investment Climate and improving the current set of diagnostic indicators in consultation with other colleagues of the TUDTR and other There are several factors that contribute significantly to a departments of the World Bank. The TRI responds to the country's investment climate at the aggregate level. It is Infrastructure Action Plan (World Bank, 2004b). increasingly being recognized that transport is one of these. As one component of the Initiative, the TRI team has Other factors include government policies, macroeconomic helped to improve the quality and quantity of transport stability, property rights, regulation, taxation, financial indicators in the area of investment climate. To begin with, markets, labor markets and other infrastructure (World the TRI team has provided the Bank's investment climate Bank, 2005). The quality of the aggregate "package" of teams with advice to formulate a core questionnaire which these components in turn influences companies' decisions better reflects the contribution of transport indicators and to invest based on their expectations of being able to return measures. profits. Advice has also been given on the design of more detailed Transport contributes to national and sub-national questionnaires for modules to match the specific conditions competitiveness in terms of key activities such as of two Regions. These modules have been prepared for production, employment, domestic and international trade. investment climate assessment teams to use in Africa and This is because the quality and coverage of the transport Latin America. network significantly affect the costs of inputs, production and distribution. These determine the market size, The objective of this note is to introduce the TRI in the area distance to input and output markets, and the economies of of investment climate along with the TUDTR's important scale and scope for certain business activities. function to support the Regions. The Note first discusses the significance of transport sector to business and its In order for client countries to improve their investment perceptions of the investment climate in terms of core climate, quality transport indicators are essential. Quality indicators have clear policy implications and help policy Page 2 Transport Note No. TRN-34 August 2006 makers identify the priority areas of reform. Nonetheless, shipment of goods. Surveys on port and logistics have been the availability of transport indicators has been weak, developed for this topic (World Bank, 2006). particularly in low- and middle-income countries. Early in FY 2006 the TRI team cooperated with Private Sector Issues to Be Addressed for Improvement Development (PSD) colleagues to strengthen the inclusion of transport in investment climate initiatives. The core ICS team expressed strong interests in improving the global core ICS and additional transport questionnaires, Bank Initiatives on Investment Climate and Transport both of which were to be incorporated into ICA surveys in AFR and LAC. In helping this effort, the TRI team's initial Initiatives on the investment climate are designed to discussions with PSD focused on the issues and identify key factors which facilitate or hinder business shortcomings which had been identified with the current activities. By doing so, they help policy makers to identify investment climate surveys. The ICAs provided useful priority areas for investment and/or reform. The following information in this respect, having critically commented investment climate instruments address the transport that the transport indicators generated by the current ICSs sector in relevant questionnaires. are: Investment Climate Survey (ICS) This generates Generic. An ICA for India argues that there are only a few statistical information for formal assessments of the questions in the ICS, and these are not specific enough to investment climate in international and regional be informative regarding the quality of transport (World perspectives based on interviews of large random samples Bank, 2004a). This generic nature of ICS indicators is of enterprises. A global core ICS allows for some consistent considered unavoidable because the survey must be brief to global comparisons, while permitting regional and national limit its cost and to avoid respondent fatigue, thereby flexibility through modules that can be tailored to country- limiting measurement errors. Thus, the ICS can cover only specific ICSs. questions in general priorities. Even so, there may be a better way to formulate questions so as to generate more The standard ICS module includes three types of questions telling indicators on the quality of transport. which are related to transport (See Appendix I). They are: Qualitative. The ICS indicators are qualitative rather than (1 )What percent of the value of the products shipped quantitative in nature. It is possible that perceptions of the for direct export was lost while in transit?; same transport network may vary depending on the types (2) What was the average number of days/the longest of business surveyed. For example, an ICA for Bangladesh time, in days, that it took from the time goods arrived points out that "technologically advanced enterprises might to their point of exit/entry until the time you could be more vulnerable to infrastructure problems than less claim these goods from customs?; advanced ones, making them more likely to rate (3) How problematic is transportation to the operation infrastructure as a significant problem" (World Bank, 2003). and growth of this establishment (enterprise)? Each country has different types of business, and hence, the indicators are not comparable. This makes a cross- Investment Climate Assessment (ICA) This is a country comparison more difficult. comprehensive country report that draws upon the results of ICSs and other diagnostic studies. ICAs are used to Misleading. The current ICS indicators could provide cross-country comparisons of investment climate "underestimate" the actual constraint on transport in indicators because the investment climate is now seen as certain circumstances according to an ICA for Cambodia an important component of international competitiveness. (World Bank, 2004c). This is because: These surveys and assessments feed into World Bank operations and technical assistance. · Businesses that would be intensive users of transport services may be under-represented since ICAs can highlight transport constraints on doing business their establishment would be constrained from the together with ICSs and other diagnostic studies. The outset in those situations where the transport coverage of transport varies, depending on whether the services/infrastructure are inadequate; country's ICS identifies transport as a major constraint in doing business, and whether the country team considers · High profile or visible improvements to transport transport as an important component during the services/infrastructure (e.g. construction of a new preparatory mission or a pilot study. national airport) may improve the short-term perception but actually under-represent the overall Doing Business Project This produces reports on the constraints in the transport system; and costs of doing business for a defined hypothetical firm and transaction based on the views of selected experts, such as · The private sector may have extensively invested in lawyers and accountants. The indicators include measures transport services and/or infrastructure to of regulation (e.g. number of procedures) and regulatory compensate for weak public transport systems; with outcomes (e.g. time and cost) associated with starting and the result that enterprise may not perceive transport closing a business, hiring and firing workers, enforcing a as obstacle. contract, and obtaining credit. Lacking Indicators for Rural Business. Transport Doing Business in 2006 has introduced a new topic "Trading network often does not extend to the remote rural areas Across Borders," that provides measures of time and where the poverty rate is high. Yet, the current investment administrative complexity (in terms of documentation and climate surveys are biased towards urban contexts. As a signature requirements) for trading a standardized result, they may not capture constraints facing the rural Page 3 Transport Note No. TRN-34 August 2006 poor. By addressing transport issues facing rural business, terminology of the questionnaires. (See Appendix III for current investment climate surveys may establish greater new transport questions in the actual surveys.) poverty relevance in those countries where rural/urban differentiation is pronounced. Overall, the following are major changes: Reviewing Transport Aspects of Investment Climate I. Improved Questions on Transport Cost. In the Surveys previous ICS, transport was addressed as a part of "all other costs." It was proposed to identify "transport" Having identified the issues raised by the ICA teams, the separately. This is because it was recognized that TRI team took steps to review the current set of ICSs and inadequate transport infrastructure and services often improve the quality and quantity of transport impose particularly high costs on firms. Hence, it is questionnaires as follows: justified to address transport as a distinct factor. Both AFR and LAC accepted this change in their Manufacturing Step 1: Consider the common interests between the Module. investment climate surveys for the Global and Regional Survey teams and in relation to the Transport Result II. New Indicators of the Degree of Transport Service Initiative. Provision. The AFR Region included questions to ask whether firms have to establish in-house transport capacity. Step 2: Review existing questions on transport in ICS The significance of this step is that the answer to this in terms of presentation and content (See Appendix I). question would reflect firms' responses to the quantity and quality of available transport services. In countries where Step 3: Suggest ways to reformulate the existing the transport services are weak, the government should questions to better capture constraints on transport, consider implementing measures to stimulate competition and agreeing on a revised questionnaire with the and encourage better management of services, for instance Global Survey Team (See Appendix II). by fostering the development of agents for shipping and other transport services. Step 4: Receive reactions to the proposals, through the Global Core Survey Team, from meetings with regional III. Questions with a Sub-sectoral Focus. The AFR new ICA teams (LAC and AFR) to exchange ideas and Manufacturing Module asks specific question about the road discuss the formalization of their ICA questionnaires. sector. This is an important focus in view of the particular importance of road transport in many low-income countries. Step 5: Obtain feedback from the Global Core Survey A question that addresses the overall transport network or Team on the changes to be incorporated in the ICS logistics would not tell policy makers which sub-sector is core questionnaire and to be adopted for the regional the source of problems. ICAs. IV. Questions on Transport as a Factor in the Location Figure 1 illustrates this process. of Manufacturing Capacity. The LAC Region adopted three questions that examine the main factors influencing the location of manufacturing capacity. For example, one Figure 1: Consultation for "core" and "regional" of the questions is: "What was the most important factor in Investment Climate questionnaires deciding to locate the establishment at this current site?" and optional responses include "Access to Means of Consultation Transportation" (See Appendix III). TUDTR Central Investment Climate Global Survey Team Coordination Challenges Coordination & & Consultation Consultation Knowledge There is often a need for more specific and detailed Exchange transport-related data to clarify significant issues which Region/Country Region/Country ICA Team ICA Team affect investment decisions. However, collecting this data Consultation always involves trade offs from the survey-implementation perspective. The following are some of the challenges which are commonly encountered in this respect. Phrasing of the questions. It is important to make sure that the question is unambiguous in identifying an Transport Changes in the Investment Climate important aspect of transport for the investment Surveys climate indicator that gives policy makers idea of where the problem is. During this process, both LAC and AFR Regions expressed strong interest in improving their transport questionnaires. Selection of questions. Excessively long surveys Each Region prepared a core survey and additional cause respondent resistance or fatigue, which would manufacture and service modules. They revised and added result in measurement errors and impose unnecessary transport questionnaires mostly in the manufacturing costs. To avoid this, it is necessary to be highly modules. The regional teams finalized their questionnaires, selective in choosing additional questions and taking the transport suggestions into consideration. In this modifying or dropping existing ones. way they remained in control of the content, design and Page 4 Transport Note No. TRN-34 August 2006 Consultation with users. The Investment Climate team in the LAC Region had sought Transport Sector advice before formalizing its revised questionnaires, REFERENCES but apparently they did not receive any response. By the time contact was established through the World Bank. 2003. Improving the Investment Climate in Transport Results Initiative engaging with the Private Bangladesh. Washington, D.C. Sector Department, it was too late to amend the revised LAC transport questionnaires. This indicates World Bank. 2004a. Improving the Investment Climate in the value of ensuring systematic engagement of the India. Washington, D.C. regional transport sector team with their counterparts responsible for designing and implementing World Bank. 2004b. "Infrastructure Action Plan." Available assessments of the investment climate. On-line at: http://siteresources.worldbank.org/INTTRM/Resources/Infr Conclusion astructureActionPlan.pdf This Note shows that, through a process of consultation World Bank. 2004c. Seizing the Global Opportunity: with PSD, some focus on transport has been introduced Investment Climate Assessment and Reform Strategy for into the Global "core" module of the Investment Climate Cambodia. Washington, D.C. Survey. World Bank. 2005. World Development Report 2005: A The Note also shows the scope for achieving much more Better Investment Climate for Everyone. focus on transport constraints in Investment Climate Assessments for countries where these are expected to be World Bank. 2006. Doing Business in 2006. Washington, particularly important. Examples are given of D.C. questionnaires which have been developed to complement the "core" module and specifically to meet the needs of two Regions where different aspects of transport have TO LEARN MORE been identified as significant considerations for investors. For Africa the focus is on the availability of suitable Doing Business Database is available on-line at: transport services. For Latin America the emphasis is http://www.doingbusiness.org/ rather on the role of transport in influencing the location of enterprises. Investment Climate Assessments are available on-line at: Application of these revised questionnaires will provide http://www.ifc.org/ifcext/economics.nsf/Content/IC- more data on the contribution of transport to doing InvestmentClimate business in different countries. Transport sector skills are required to help interpret the findings. These skills can also Investment Climate Surveys are available on-line at: help to identify the specific transport issues which are likely http://iresearch.worldbank.org/ics/jsp/index.jsp to be of most significance for investment decisions in those Regions which have not yet focused on this. The TRI team Transport Infrastructure Notes and Transport Notes is ready to assist regional transport and private sector staff are available on-line at: and country teams with the further development of specific http://www.worldbank.org/transport modules in these cases. Urban Infrastructure Notes and Urban Notes are available on-line at: http://www.worldbank.org/urban Page 5 Transport Note No. TRN-34 August 2006 APPENDIX I a) Investment Climate Survey: Questions Relevant to Transport Prior to TUDTR's Contribution · In the last fiscal year, when this establishment exported goods directly, what was the average number of days that it took from the time your goods arrived to their point of exit (e.g., port, airport) until the time these goods cleared customs? · In the last fiscal year, when this establishment exported goods directly, what was the longest time, in days, that it took from the time your goods arrived to their point of exit (e.g., port, airport) until the time these goods cleared customs? · In the last fiscal year, what percent of the value of the products shipped for direct export was lost while in transit? · In the last fiscal year, what percent of this establishment's material inputs and supplies were: Of domestic origin? % Of foreign origin? % · In the last fiscal year, when this establishment imported goods, what was the average number of days that it took from the time goods arrived to their point of entry (e.g. port, airport) until the time you could claim these goods from customs? · In the last fiscal year, when this establishment imported goods what was the longest time, in days, that it took from the time goods arrived to their point of entry (e.g. port, airport) until the time you could claim these goods from customs? · How problematic are these different factors to the operation and growth of this establishment? No Minor Very obstacl obstac Moderate Major Severe Don't e le obstacle obstacle Obstacle Know Transportation 0 1 2 3 4 5 · Of all the above alternatives listed, which three constitute the biggest obstacle in order from greatest obstacle to least difficult? Telecommunications 1 Electricity 2 Transportation 3 Access to land 4 Tax administration 5 Customs and trade regulations 6 Labor regulations 7 Business licensing and permits 8 Access to financing 9 Political and/or macroeconomic instability 10 Corruption 11 Street crime, theft and disorder 12 Informal practices 13 Functioning of the judiciary 14 Other ? Page 6 Transport Note No. TRN-34 August 2006 First Second Third b) Investment Climate Survey: Questions Relevant to Transport Prior to TUDTR's Contribution · Please provide the following information about this establishment (in thousands of local currency units): Fiscal Year 0 Fiscal Year -1 Total sales 000s LCUs 000s LCUs Total purchases of raw material and intermediate goods used in production 000s LCUs 000s LCUs Total purchase of finished goods for re-sale 000s LCUs 000s LCUs Total cost of labor, including wages, salaries and bonuses 000s LCUs 000s LCUs Electricity 000s LCUs 000s LCUs Fuel 000s LCUs 000s LCUs All other costs, i.e.: utilities, transport, overhead 000s LCUs 000s LCUs expenses, etc Total sales is the value of all sales including manufactured goods and goods the establishment has bought for trading. If a firm makes blue jeans and also imports blue jeans to sell, total sales is the value of all blue jeans sold, both produced and imported. Purchase of raw materials and intermediate goods are all the costs of the raw materials and intermediate goods purchased during the fiscal year, whether or not they were used in production Total cost of labor, including wages, salaries and benefits is the total wages and all benefits, including food, transport, social security (i.e. pensions, medical insurance, unemployment insurance). H 3-237A Total Inventory of finished goods held at end of fiscal year includes all finished held in inventory on the final business day of the fiscal year. · What was the net book value of the following at the end of last fiscal year? Fiscal Year 0 Fiscal Year -1 Machinery and equipment (including transport) 000s LCUs 000s LCUs Land, buildings and leasehold improvements 000s LCUs 000s LCUs · Whether you rent or own your land, buildings, and machinery and equipment, at the end of 2004, if you had to purchase back the following in its current condition, how much would it have cost? Value in thousands of Local Currency Units Last Fiscal Year Machinery and equipment (including 000s LCUs transport) Land, buildings and leasehold improvements 000s LCUs Page 7 Transport Note No. TRN-34 August 2006 APPENDIX II a) Revision to the Core Investment Climate Survey 1. We propose to separate "transport" from "All other costs." Inadequate transport infrastructure and services often impose high costs on firms. If that is the case, data on transport costs will help policy makers to identify whether transport is a priority area of reform. Transport costs could be expressed as a percentage of the total for comparisons ­ between establishments, locations or over time - indicating changes in the impact of transport constraints. It may be appropriate to combine "electricity" and "fuel" as "energy (excluding fuel used for transport)." Q9. Please provide the following information about this establishment (in thousands of local currency units): Fiscal Year 0 Fiscal Year -1 Total sales 000s LCUs 000s LCUs Total purchases of raw material and intermediate goods used in production 000s LCUs 000s LCUs Total purchase of finished goods for re-sale 000s LCUs 000s LCUs Total cost of labor, including wages, salaries and bonuses 000s LCUs 000s LCUs Electricity 000s LCUs 000s LCUs Fuel (excluding fuel used for transport) 000s LCUs 000s LCUs Transport 000s LCUs 000s LCUs All other costs, i.e.: utilities, overhead expenses, etc 000s LCUs 000s LCUs 2. The question below is ok. It could to be complemented in the ICA surveys. (See 3.1 under the "Additional Questions to the ICA Surveys.) Q.7. How problematic are these different factors to the operation and growth of this establishment? No Minor Moderate Major Very Don't obstacle obstacle obstacle obstacle Severe Obstacle Know Transportation 0 1 2 3 4 5 b) Additions to the Core Investment Climate Survey 1. The following set of four questions is important to determine the nature of transport demands for different businesses. a. Does your firm export products to oversea markets? (yes/no) b. Does your firm import goods from overseas? (yes/no) c. Does your firm market goods and/or services domestically? (yes/no) d. Does your firm procure domestic goods and/or services? (yes/no) 2. The following question reflects firms' reponses to the quantity and quality of available transport services. By doing so, it indicates to policy makers whether the government should implement measures to strengthen competition and encourage better management of services, for instance by fostering the development of shipping and other transport agents. In the last fiscal year, how did you meet the largest part of your establishment's transport needs? (a) With in-house transport capacity; (b) Direct contracting of transport services (c) Through agents for transport services Page 8 Transport Note No. TRN-34 August 2006 c) Additional Transport Questions for the Investment Climate Assessment Regional Surveys Q.1. In the last fiscal year, if this establishment exported goods directly, what was the average number of days that it took from the time your goods arrived at their point of exit (e.g., port, airport) until the time these goods cleared customs? 1. In addition to the existing question above, the following question identifies the efficiency at the port as opposed to customs clearance. It generates an important indicator with a policy relevance to the port sector. The problem is that the response rate for the above question on customs has been already low, and the majority of the firms may not be able to answer this question either. In the last fiscal year, when this establishment exported goods directly, what was the average number of days that it took from the customs clearance to completion of loading onto the vessel? 2. The following questions help policy makers to identify the constraints on within-country transport. 2.1. In the last fiscal year, what was the delivery point (warehouse, distribution centre) for the largest volume of your domestic sales or the gateway port (sea/air/river) for the largest volume of your international shipment? (name/km) 2.2. In the last fiscal year, what was the most common mode of transport to ship your goods and/or services to the delivery point (warehouse, distribution centre) for the largest volume of your domestic sales or the gateway port (sea/air/river) for the largest volume of your international shipment? (Note: If a firm used mixed transport modes, take the one that it used more.) a) Road b) Rail c) Water Transport d) Air 2.3. In the last fiscal year, what was the average number of hours that it took to ship your goods/services to the delivery point (warehouse, distribution centre) for the largest volume of your domestic sales or to the gateway port (sea/air/river) for the largest volume of your international shipment? 2.4. In the last fiscal year, what was the longest number of hours that it took to ship your goods to the delivery point (warehouse, distribution centre) for the largest volume of your domestic sales or to the gateway port (sea/air/river) for the largest volume of your international shipment? 3. The following question is important because it reveals which components of transport services are perceived as obstacles and need improvements. 3.1. How problematic are these different factors of transport services to the operation of this establishment· No Minor Moderate Major Very Don't obstacle obstacle obstacle obstacle Severe Obstacle Know Loss of goods 0 1 2 3 4 5 Damage of goods 0 1 2 3 4 5 Unreliable timing of collection 0 1 2 3 4 5 Unreliable time of delivery 0 1 2 3 4 5 Excessive costs of transport 0 1 2 3 4 5 Other (specify) 0 1 2 3 4 5 Page 9 Transport Note No. TRN-34 August 2006 4. Alternatively, the following questions can provide more objective data on the issues covered in question 3.1: 4.1. In the last fiscal year, what percentage of your domestic sales arrived late at the final destination in comparison with your planned schedule? 4.2. In the last fiscal year, what percentage of your exported goods arrived late at the final destination in comparison with your planned schedule? 4.3. In the last year, what percentage of the value of the goods shipped for domestic sales was lost or damaged? 4.4. In the last year, what percentage of the value of the goods shipped for direct export was lost or damaged? 4.5. Have you received compensation by the transport provider for the loss and damage? Page 10 Transport Note No. TRN-34 August 2006 APPENDIX III a) New Global Core Survey (Adopted by LAC & AFR) · Is the transportation of goods, supplies and inputs "No Obstacle," a "Minor Obstacle," a "Major Obstacle," or a "Very Severe Obstacle" to the current operations of this establishment? · Please tell me the three that you think are currently the biggest problems, beginning with the most difficult obstacle of all. The list includes "transportation," and ranks include "most serious obstacle," Second most serious obstacle," and "Third most serious obstacle." b) New Questions in Manufacturing Module for LAC · What was the most important factor in deciding to locate the establishment at this current site? Important Factor Accessibility to outputs and inputs markets 1 Workforce education, skills and working habits 2 Access to Means of Transportation (e.g. roads, ports, airports) 3 Tax Exemptions and other Local Government Benefits or Concessions 4 Quality of Public Services (e.g. water, electricity, etc.) 5 The owner(s) or major shareholder(s) are from this city 6 Other, SPECIFY ___________________________________ 7 · If you could relocate this establishment to another site, what is the most important factor that you would take into consideration when considering other sites? Important Factor None, would not relocate 1 Accessibility to outputs and inputs markets 2 Workforce education, skills and working habits 3 Access to Means of Transportation (e.g. roads, ports, airports) 4 Tax Exemptions and other Local Government Benefits or Concessions 5 Quality of Public Services (e.g. water, electricity, etc.) 6 Other, SPECIFY ________________________________________ 7 · What is the main reason for never having exported? Main reason Administrative procedures for exporting (e.g. licenses, permits, customs) 1 Transport and logistic costs 2 Tariffs, quotas or other barriers to entry in export markets (e.g. sanitary regulations) 3 Distribution channels in export markets 4 Access or cost of export finance 5 Production costs and/or quality of products not competitive in foreign markets 6 Not applicable since we expanded exports 7 · In fiscal year [insert date of the last complete fiscal year], did this establishment use its own transport to make shipments to its customers? Page 11 Transport Note No. TRN-34 August 2006 · In fiscal year [insert date of the last complete fiscal year], what percent, in terms of annual revenue, of shipments to its customers were transported by this establishment's own transport? · In fiscal year [insert date of the last complete fiscal year], what was the name of the primary destination (in terms of sales) of this establishment's main product? · In fiscal year [insert date of the last complete fiscal year], did this establishment transport the main product to the primary destination using third party providers? · If the primary destination is abroad, what is the name of the point of exit for the last shipment of the main product? · For the last shipment of the main product to the primary destination, what was the mode of transportation used to deliver the establishment's main product to the mentioned primary destination? Road 1 Rail 2 Air 3 River Transport 4 Maritime Transport 5 A combination of the above. SPECIFY _________ 6 · For the last shipment to the primary destination of the establishment's main product, what was its size? · What was the transportation cost for the last shipment of the establishment's main product to its primary destination? · What was the total value of the last shipment of the establishment's main product to its primary destination? · If the primary destination is outside the country, what's included in that value? FAS (Free Alongside) 1 FOB (Free on Board) 2 CIF (Cost, Insurance, and 3 Freight) None 4 Don't know -9 · For the last shipment, how long did it take to transport the last shipment of the establishment's main product to its primary destination, from the time the product left the establishment until it was delivered to the client? · For fiscal year [insert date of the last complete fiscal year], please provide the following information about this establishment (in thousands of local currency units): Total annual revenue Total annual cost of labor (including wages, salaries, bonuses, social payments) Total annual cost of raw materials and intermediate goods used in production Total annual costs of electricity (from public grid only) Total annual costs of communications services Total annual costs of fuel Total annual costs of transport for goods and workers (not including fuel) Total annual costs of water Total annual cost of rental of land/buildings, equipment, furniture Page 12 Transport Note No. TRN-34 August 2006 c) New Questions in Manufacturing Module for AFR · In fiscal year [insert date of the last complete fiscal year], did this establishment use its own transport to make shipments to its customers? · In fiscal year [insert date of the last complete fiscal year], what percent of shipments, in terms of all annual shipments to customers, were transported by this establishment's own transport? · In fiscal year [insert date of the last complete fiscal year], what was the main point of origin of the main production input that this establishment needed to be transported in by road? In the case of imported inputs, what was the point of entry into this country? · For the last road shipment of the main production input from the main point of origin, what was the cost of transporting this input? In the case of imported inputs, what was the cost of transporting this input by road from the point of entry into this country? · For the last road shipment of the main production input from the main point of origin, how long did it take to transport the last shipment of this input from its point of origin to this establishment? In the case of an imported input, how long did it take to transport the last shipment from its point of entry to this country to this establishment?