Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition?
What are the main determinants of transport costs: network access or competition among transport providers? The focus in the transport sector has often been on improving the coverage of "hard" infrastructure, whereas in reality the cost o...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091117145646 http://hdl.handle.net/10986/4325 |
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okr-10986-4325 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS ROADS ACCESSIBILITY AGGLOMERATION BENEFITS AGGLOMERATION ECONOMIES AIR ARTERIES ASPHALT ASPHALT ROADS AVAILABILITY OF TRANSPORT AVERAGE DAILY TRAFFIC BAUXITE BETTER ROAD BETTER TRANSPORT BOTTLENECK BOTTLENECKS BRIDGE CAPITAL INVESTMENTS CITY SIZE CONGESTION COST OF TRANSPORT DEPOSITS DOMESTIC TRANSPORT DRIVERS ECONOMIES OF SCALE ENGINES EXTERNALITIES FEEDER ROAD FEEDER ROADS FEEDER ROADS CONNECTING VILLAGES FIXED COSTS FLEETS FOOTPATH FOOTPATHS FOREIGN EXCHANGE FREIGHT FREIGHT TRAFFIC FREIGHT TRANSPORT FUEL FUEL COST FUEL COSTS GENERATORS GOOD TRANSPORT GPS GRANITE HDM4 HIGH TRAFFIC VOLUMES HIGH TRANSPORT HIGHWAY HOUSING IMT INCOME INFRASTRUCTURE IMPROVEMENTS INFRASTRUCTURE INVESTMENT INTERMEDIATE MEANS OF TRANSPORT INTERNATIONAL FREIGHT TRANSPORT INTERNATIONAL TRANSPORT JOURNEYS LABOR MARKETS LAND USE LANES LARGE CITIES LOADING LONGER DISTANCES LORRIES LORRY LOWER TRAFFIC VOLUMES MAIN ROAD MAIN ROADS MEANS OF TRANSPORT MIGRATION MILEAGE MOBILITY MODES OF TRANSPORT MOTORIZED TRANSPORT MOTORWAYS PAVEMENT POOR ROAD POPULATION DENSITIES POPULATION DENSITY PORTS PRICE SETTING PRODUCTIVITY PROFIT MARGINS PUBLIC POLICIES PUBLIC SECTOR INVESTMENT RAIL RAILROADS RECONSTRUCTION ROAD ROAD ACCESSIBILITY ROAD AUTHORITY ROAD CLASS ROAD CONDITIONS ROAD INVESTMENTS ROAD LENGTH ROAD LINKS ROAD MAINTENANCE ROAD NETWORK ROAD NETWORKS ROAD QUALITY ROAD ROUGHNESS ROAD SURFACE ROAD TRAFFIC ROAD TRANSPORT ROADS ROUGHNESS ROUTE ROUTES RURAL ACCESSIBILITY RURAL AREAS RURAL HOUSEHOLDS RURAL MOBILITY RURAL ROUTES RURAL TRANSPORT RURAL TRANSPORT INFRASTRUCTURE SANITATION SAVINGS SECONDARY ROADS SHARING SOCIAL SERVICES SPEED SPEEDS STRUCTURES TAX TERRAIN TERTIARY ROADS TRACKS TRADE VOLUME TRAFFIC TRAFFIC DATA TRAFFIC DEMAND TRAFFIC FLOWS TRAFFIC VOLUME TRAFFIC VOLUMES TRANSPORT BURDEN TRANSPORT CHARGES TRANSPORT COST TRANSPORT COSTS TRANSPORT GEOGRAPHY TRANSPORT IMPROVEMENTS TRANSPORT INDUSTRY TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENT TRANSPORT INVESTMENTS TRANSPORT MARKETS TRANSPORT NETWORK TRANSPORT PRICE TRANSPORT SECTOR TRANSPORT SERVICE TRANSPORT SERVICE PROVIDERS TRANSPORT SERVICES TRANSPORT VOLUME TRANSPORTATION TRANSPORTATION INDUSTRY TRAVEL TIME TRAVEL TIMES TRIP TRIP DISTANCE TRIPS TRUCKING TRUCKS URBAN DEVELOPMENT URBANIZATION VEHICLE VEHICLE COSTS VEHICLE OPERATING VEHICLE OPERATING COSTS VEHICLE TRANSPORT VEHICLES WALKING |
| spellingShingle |
ACCESS ROADS ACCESSIBILITY AGGLOMERATION BENEFITS AGGLOMERATION ECONOMIES AIR ARTERIES ASPHALT ASPHALT ROADS AVAILABILITY OF TRANSPORT AVERAGE DAILY TRAFFIC BAUXITE BETTER ROAD BETTER TRANSPORT BOTTLENECK BOTTLENECKS BRIDGE CAPITAL INVESTMENTS CITY SIZE CONGESTION COST OF TRANSPORT DEPOSITS DOMESTIC TRANSPORT DRIVERS ECONOMIES OF SCALE ENGINES EXTERNALITIES FEEDER ROAD FEEDER ROADS FEEDER ROADS CONNECTING VILLAGES FIXED COSTS FLEETS FOOTPATH FOOTPATHS FOREIGN EXCHANGE FREIGHT FREIGHT TRAFFIC FREIGHT TRANSPORT FUEL FUEL COST FUEL COSTS GENERATORS GOOD TRANSPORT GPS GRANITE HDM4 HIGH TRAFFIC VOLUMES HIGH TRANSPORT HIGHWAY HOUSING IMT INCOME INFRASTRUCTURE IMPROVEMENTS INFRASTRUCTURE INVESTMENT INTERMEDIATE MEANS OF TRANSPORT INTERNATIONAL FREIGHT TRANSPORT INTERNATIONAL TRANSPORT JOURNEYS LABOR MARKETS LAND USE LANES LARGE CITIES LOADING LONGER DISTANCES LORRIES LORRY LOWER TRAFFIC VOLUMES MAIN ROAD MAIN ROADS MEANS OF TRANSPORT MIGRATION MILEAGE MOBILITY MODES OF TRANSPORT MOTORIZED TRANSPORT MOTORWAYS PAVEMENT POOR ROAD POPULATION DENSITIES POPULATION DENSITY PORTS PRICE SETTING PRODUCTIVITY PROFIT MARGINS PUBLIC POLICIES PUBLIC SECTOR INVESTMENT RAIL RAILROADS RECONSTRUCTION ROAD ROAD ACCESSIBILITY ROAD AUTHORITY ROAD CLASS ROAD CONDITIONS ROAD INVESTMENTS ROAD LENGTH ROAD LINKS ROAD MAINTENANCE ROAD NETWORK ROAD NETWORKS ROAD QUALITY ROAD ROUGHNESS ROAD SURFACE ROAD TRAFFIC ROAD TRANSPORT ROADS ROUGHNESS ROUTE ROUTES RURAL ACCESSIBILITY RURAL AREAS RURAL HOUSEHOLDS RURAL MOBILITY RURAL ROUTES RURAL TRANSPORT RURAL TRANSPORT INFRASTRUCTURE SANITATION SAVINGS SECONDARY ROADS SHARING SOCIAL SERVICES SPEED SPEEDS STRUCTURES TAX TERRAIN TERTIARY ROADS TRACKS TRADE VOLUME TRAFFIC TRAFFIC DATA TRAFFIC DEMAND TRAFFIC FLOWS TRAFFIC VOLUME TRAFFIC VOLUMES TRANSPORT BURDEN TRANSPORT CHARGES TRANSPORT COST TRANSPORT COSTS TRANSPORT GEOGRAPHY TRANSPORT IMPROVEMENTS TRANSPORT INDUSTRY TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENT TRANSPORT INVESTMENTS TRANSPORT MARKETS TRANSPORT NETWORK TRANSPORT PRICE TRANSPORT SECTOR TRANSPORT SERVICE TRANSPORT SERVICE PROVIDERS TRANSPORT SERVICES TRANSPORT VOLUME TRANSPORTATION TRANSPORTATION INDUSTRY TRAVEL TIME TRAVEL TIMES TRIP TRIP DISTANCE TRIPS TRUCKING TRUCKS URBAN DEVELOPMENT URBANIZATION VEHICLE VEHICLE COSTS VEHICLE OPERATING VEHICLE OPERATING COSTS VEHICLE TRANSPORT VEHICLES WALKING Lall, Somik V. Wang, Hyoung Munthali, Thomas Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition? |
| geographic_facet |
Africa Africa Sub-Saharan Africa Southern Africa Malawi |
| relation |
Policy Research working paper ; no. WPS 5133 |
| description |
What are the main determinants of
transport costs: network access or competition among
transport providers? The focus in the transport sector has
often been on improving the coverage of "hard"
infrastructure, whereas in reality the cost of transporting
goods is quite sensitive to the extent of competition among
transport providers and scale economies in the freight
transport industry, creating monopolistic behavior and
circular causation between lower transport costs and greater
trade and traffic. This paper contributes to the discussion
on transport costs in Malawi, providing fresh empirical
evidence based on a specially commissioned survey of
transport providers and spatial analysis of the country s
infrastructure network. The main finding is that both
infrastructure quality and market structure of the trucking
industry are important contributors to regional differences
in transport costs. The quality of the trunk road network is
not a major constraint but differences in the quality of
feeder roads connecting villages to the main road network
have significant bearing on transport costs. And costs due
to poor feeder roads are exacerbated by low volumes of trade
between rural locations and market centers. With empty
backhauls and journeys covering small distances, only a few
transport service providers enter the market, charging
disproportionately high prices to cover fixed costs and
maximize markups. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lall, Somik V. Wang, Hyoung Munthali, Thomas |
| author_facet |
Lall, Somik V. Wang, Hyoung Munthali, Thomas |
| author_sort |
Lall, Somik V. |
| title |
Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition? |
| title_short |
Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition? |
| title_full |
Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition? |
| title_fullStr |
Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition? |
| title_full_unstemmed |
Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition? |
| title_sort |
explaining high transport costs within malawi : bad roads or lack of trucking competition? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091117145646 http://hdl.handle.net/10986/4325 |
| _version_ |
1764390934302162944 |
| spelling |
okr-10986-43252021-04-23T14:02:17Z Explaining High Transport Costs within Malawi : Bad Roads or Lack of Trucking Competition? Lall, Somik V. Wang, Hyoung Munthali, Thomas ACCESS ROADS ACCESSIBILITY AGGLOMERATION BENEFITS AGGLOMERATION ECONOMIES AIR ARTERIES ASPHALT ASPHALT ROADS AVAILABILITY OF TRANSPORT AVERAGE DAILY TRAFFIC BAUXITE BETTER ROAD BETTER TRANSPORT BOTTLENECK BOTTLENECKS BRIDGE CAPITAL INVESTMENTS CITY SIZE CONGESTION COST OF TRANSPORT DEPOSITS DOMESTIC TRANSPORT DRIVERS ECONOMIES OF SCALE ENGINES EXTERNALITIES FEEDER ROAD FEEDER ROADS FEEDER ROADS CONNECTING VILLAGES FIXED COSTS FLEETS FOOTPATH FOOTPATHS FOREIGN EXCHANGE FREIGHT FREIGHT TRAFFIC FREIGHT TRANSPORT FUEL FUEL COST FUEL COSTS GENERATORS GOOD TRANSPORT GPS GRANITE HDM4 HIGH TRAFFIC VOLUMES HIGH TRANSPORT HIGHWAY HOUSING IMT INCOME INFRASTRUCTURE IMPROVEMENTS INFRASTRUCTURE INVESTMENT INTERMEDIATE MEANS OF TRANSPORT INTERNATIONAL FREIGHT TRANSPORT INTERNATIONAL TRANSPORT JOURNEYS LABOR MARKETS LAND USE LANES LARGE CITIES LOADING LONGER DISTANCES LORRIES LORRY LOWER TRAFFIC VOLUMES MAIN ROAD MAIN ROADS MEANS OF TRANSPORT MIGRATION MILEAGE MOBILITY MODES OF TRANSPORT MOTORIZED TRANSPORT MOTORWAYS PAVEMENT POOR ROAD POPULATION DENSITIES POPULATION DENSITY PORTS PRICE SETTING PRODUCTIVITY PROFIT MARGINS PUBLIC POLICIES PUBLIC SECTOR INVESTMENT RAIL RAILROADS RECONSTRUCTION ROAD ROAD ACCESSIBILITY ROAD AUTHORITY ROAD CLASS ROAD CONDITIONS ROAD INVESTMENTS ROAD LENGTH ROAD LINKS ROAD MAINTENANCE ROAD NETWORK ROAD NETWORKS ROAD QUALITY ROAD ROUGHNESS ROAD SURFACE ROAD TRAFFIC ROAD TRANSPORT ROADS ROUGHNESS ROUTE ROUTES RURAL ACCESSIBILITY RURAL AREAS RURAL HOUSEHOLDS RURAL MOBILITY RURAL ROUTES RURAL TRANSPORT RURAL TRANSPORT INFRASTRUCTURE SANITATION SAVINGS SECONDARY ROADS SHARING SOCIAL SERVICES SPEED SPEEDS STRUCTURES TAX TERRAIN TERTIARY ROADS TRACKS TRADE VOLUME TRAFFIC TRAFFIC DATA TRAFFIC DEMAND TRAFFIC FLOWS TRAFFIC VOLUME TRAFFIC VOLUMES TRANSPORT BURDEN TRANSPORT CHARGES TRANSPORT COST TRANSPORT COSTS TRANSPORT GEOGRAPHY TRANSPORT IMPROVEMENTS TRANSPORT INDUSTRY TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENT TRANSPORT INVESTMENTS TRANSPORT MARKETS TRANSPORT NETWORK TRANSPORT PRICE TRANSPORT SECTOR TRANSPORT SERVICE TRANSPORT SERVICE PROVIDERS TRANSPORT SERVICES TRANSPORT VOLUME TRANSPORTATION TRANSPORTATION INDUSTRY TRAVEL TIME TRAVEL TIMES TRIP TRIP DISTANCE TRIPS TRUCKING TRUCKS URBAN DEVELOPMENT URBANIZATION VEHICLE VEHICLE COSTS VEHICLE OPERATING VEHICLE OPERATING COSTS VEHICLE TRANSPORT VEHICLES WALKING What are the main determinants of transport costs: network access or competition among transport providers? The focus in the transport sector has often been on improving the coverage of "hard" infrastructure, whereas in reality the cost of transporting goods is quite sensitive to the extent of competition among transport providers and scale economies in the freight transport industry, creating monopolistic behavior and circular causation between lower transport costs and greater trade and traffic. This paper contributes to the discussion on transport costs in Malawi, providing fresh empirical evidence based on a specially commissioned survey of transport providers and spatial analysis of the country s infrastructure network. The main finding is that both infrastructure quality and market structure of the trucking industry are important contributors to regional differences in transport costs. The quality of the trunk road network is not a major constraint but differences in the quality of feeder roads connecting villages to the main road network have significant bearing on transport costs. And costs due to poor feeder roads are exacerbated by low volumes of trade between rural locations and market centers. With empty backhauls and journeys covering small distances, only a few transport service providers enter the market, charging disproportionately high prices to cover fixed costs and maximize markups. 2012-03-19T19:14:01Z 2012-03-19T19:14:01Z 2009-11-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091117145646 http://hdl.handle.net/10986/4325 English Policy Research working paper ; no. WPS 5133 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Sub-Saharan Africa Southern Africa Malawi |