West African Transport Challenges Proposed from Another Region Tamerlane

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    Your Emerging Markets Business Partner

    West Africa Transportation Challenges

    & Solutions Proposed from Another Region

    Jim OBrien

    President & CEO of Tamerlane Global Services

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    The Challenges of TransnationalTransportation

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    Delays contribute to more than just

    National Revenue Lost

    Figure 9, pg. 8,

    17th Road Governance Report: UEMOA

    Q3 Data, 2011

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    Unique Similarities BetweenCentral Asia & West Africa

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    Extended Supply LinesAre Not Unique

    Average transit time in Central Asiato Afghanistan is 8 hours for every100 KM!

    Average transit time in SW Asia toAfghanistan is 2 days for every100KM!!

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    So Different Yet So Similar

    Interior Central Asia

    United Trade Bloc that is theoreticallydesigned to expedite materialmovements

    Minimal Rule of Law in areas far fromnational/international authorities

    Disaggregated Trucking (i.e., OwnerOperator Environment)

    Hostile locations with entrenched

    criminal and/or militant activity Poor transnational Communications

    from the ports to the borders

    Everyone speaks Russian

    Interior West Africa

    United Trade Bloc that is theoreticallydesigned to expedite materialmovements

    Minimal Rule of Law in areas far fromnational/international authorities

    Disaggregated Trucking (i.e., OwnerOperator Environment)

    Hostile locations with entrenched

    criminal and/or militant activity Poor transnational Communications

    from the ports to the borders

    Everyone speaks Russian

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    Problems of the US Armywith Logistics in the AFPAK Corridor

    Loss ratios upwards of 30%

    Translated into $180 million in stolen goods PER YEAR

    Operational Disruptions due to insufficient materials

    Operations postponed due to loss directly attributable to logistics challenges

    Extended delays in transit caused materials to arrive damaged due to naturalexposures

    Minimal ability to coordinate with regional national agencies

    Uzbekistan Challenges at Termez post-Andijon

    Pakistan Challenges due to multiple US-Pakistani Political Challenges

    Kyrgyzstan renegotiation of its treaty with the United States

    Terror disruptions/Active Conflict Zone

    Criminal Elements

    Rampant Corruption/Minimal Rule of Law

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    Solutions Proposed

    Increase coordination between national governments

    Doesnt work well

    Train Customs officials to better recognize Customsdocumentation and understand transit protocols

    Doesnt work well

    Advanced Customs clearance coordination

    Doesnt work well

    Impose stricter penalties on Customs officials whom extractbribes

    Doesnt work well

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    Solutions Required

    Create the Delays

    Recognized Documentation Repository

    Physical Team Presence at Border Points

    Utilization of GPS and GSM tracking devices Greater interaction with the truckers

    Documentation Teams in Key Capitals and at Key Border Points

    Training

    Creation of Managed Transit Points

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    Typical Simple Management Yard

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    Fully Integrated Documentation

    Repository and KPI Dashboard Created a simple to use, mobile and web-based app

    Users needed information at the touch of a button

    Simplicity was key!

    Document repositoryrecognized by stakeholders

    System capable of downloading and uploading BOLs, AWBs, TaxCertificates, etc

    System capable of sharing pictures of trucks, drivers, identifications, etc

    Captured a number of Key Performance Indicator

    Many users are illiterate

    60 days to stand up

    2 weeks to train key users

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    Client Data Portal

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    Efficiencies

    Clients can watch transit of goods in real-time

    Catch abnormal and/or unauthorized routing and potential theft

    Revenue Agents can verify truck data against documents provided at the portor point of loading

    Documentation can be brought up with a touch of a buttoneasing and/oreliminating paper transfers

    Information can be shared in a multilingual platform, at multiple borderpoints at the same time

    Supply chain intelligence can ease decision making

    Share threats, weather challenges, and information pertaining to fuelshortages, etc.

    Key Performance Indicators can be captured and shared with KeyStakeholders

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    Results in a War Zone

    Delivery Speed Increased: FOB to Port moved from 12 weeks to 3 weeks

    Some locations became Same Day

    Reduced Cost Able to SAVE approximately 15% on the overall cost of

    trucking

    Loss Ratio since 2010 ZERO!

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    [email protected]

    mailto:[email protected]:[email protected]