2017年-世界发展银行全球_Rail_Transport_and_Firm_Productivity___Evidence_from_Tanzania_34页_1mb

Summary of "Rail Transport and Firm Productivity: Evidence from Tanzania"

Core Content

This working paper investigates the impact of rail transport on firm productivity in Tanzania using micro-level data. The study highlights the importance of rail transport for large-volume, long-haul freight operations, despite challenges such as outdated infrastructure and unreliable service. It also explores the trade-offs between rail and road transport, emphasizing the cost and reliability differences.

Main Points

• Rail Transport Advantages:

  • Rail transport is generally more cost-effective for long-haul freight due to economies of scale and lower unit rates for longer distances.
  • Rail is considered a greener alternative to road transport, with potential environmental benefits.
  • Rail infrastructure in Tanzania is extensive but in poor condition due to lack of maintenance.

• Cost and Reliability Trade-offs:

  • Firms using rail face higher inventory costs due to unreliable operations, which increases total costs.
  • The demand elasticity for transport services is estimated to be between -1.01 and -0.52, indicating high sensitivity to price changes and strong competition with truck transport.
  • Rail transport is more cost-effective for long-haul shipments from and to the hinterland of Northern and Western Tanzania.

• Firm Location and Rail Use:

  • Proximity to rail infrastructure is a key determinant of rail usage.
  • Firms located far from Dar es Salaam are more likely to use rail.
  • Inventory levels are higher among rail users, possibly due to service unreliability.

• Transport Costs and Modal Share:

  • Road user costs in Tanzania are generally higher than rail tariffs, especially for long-haul shipments.
  • Rail freight accounts for about 9% of total freight demand globally, but its modal share varies significantly across countries.
  • In Tanzania, rail freight volumes have declined over time, representing only 13% of the peak demand in the early 2000s.

• Firm Characteristics and Rail Use:

  • Rail users are more likely to be foreign-owned and operate in global or national markets, as opposed to local markets.
  • Rail users are primarily light manufacturers and agribusinesses.
  • The average total cost for rail users is significantly higher than for road users, and their transport cost share is also greater.

Key Information

• Rail Network in Tanzania:

  • Total rail network: 3,557 km (operated by TRL and TAZARA).
  • TRL: 2,582 km, mostly narrow-gauge.
  • TAZARA: 1,860 km, mostly Cape-gauge.
  • Most rail lines are over 100 years old and require rehabilitation.

• Transport Costs:

  • Road user costs range from US$0.05 to US$0.12 per ton-km.
  • Rail tariffs are lower, especially for long-haul shipments.
  • For example, rail tariffs for TRL are TSh1.5 million per large wagon for the first 100 km, but drop to TSh3.9 million per wagon for distances over 1,000 km.

• Data and Methodology:

  • The study uses micro data from Tanzanian firms.
  • To address endogeneity, instrumental variable (IV) techniques and three-stage least squares (3SLS) estimation are applied.
  • Four IVs are constructed:
    • Distance to TRL line (KMTRL)
    • Distance to TAZARA line (KMTAZARA)
    • Slope angle of terrain (SLOP)
    • Level of elevation (ELEV)

• Firm Productivity and Inventory:

  • Firms using rail tend to have higher inventory levels due to unreliable service.
  • Inventory is costly and limits operational flexibility.
  • The economic order quantity model and $(S,s)$ model suggest that inventory levels are influenced by transportation costs and other firm-specific factors.

• Policy Implications:

  • Controlling for firm-specific heterogeneity is crucial for accurate estimation.
  • Improving rail infrastructure and reliability could reduce inventory costs and enhance firm productivity.
  • The study emphasizes the need for better maintenance and investment in rail networks to support economic growth.

Conclusion

The paper concludes that while rail transport offers cost advantages for long-haul freight, its unreliability leads to higher inventory costs for firms. The impact of rail on firm productivity is complex and influenced by factors such as location, firm type, and market orientation. The findings underscore the importance of investing in rail infrastructure to improve connectivity and reduce overall transportation and trade costs in Tanzania and other African countries.