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Why Cargo Dwell Time Matters in TradeThe international community has been increasing investment in projects that promote trade facilitation and improve logistics in the developing world, including in ports. In Africa, a key motivation for such projects has been a presumption that poor infrastructure and inefficient border control agencies are the major causes of extended delays in sub-Saharan Africa (SSA) ports. Based on new data and analysis, this note argues that collusion between controlling agencies, port authorities, private terminal operators, logistics operators, and large shippers is an important part of the problem. Decreasing dwell times in ports requires governments to combat collusive practices between the private sector and public authorities and recognize that large-scale investments in infrastructure are not sufficient to reduce logistics delays. Infrastructure gaps and high transport costs are critical factors hindering growth and poverty reduction in SSA. Efficient, lowcost transport systems are prerequisites for African countries to become competitive in the global market. Hummels (2001) demonstrates empirically that increased transport time dramatically reduces trade. Without rapid import processes, trade based on assembly operations for export is impossible: delays and unpredictability increase inventories and prevent integration into global supply networks. The automotive industry in South Africa listed barriers to reducing inventories as the most important of 12 major impediments to business.
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