Performance of cross-border corridors in East Africa considering multiple stakeholders

Abstract

Cross-border corridors with proper conditions, facilities and institutions are one solution for reducing transport costs and times for landlocked developing countries. The stakeholders of cross-border corridors such as roads, railways, and ports, manage their own infrastructure, hence, stakeholders may desire to gain more benefit by obtaining more cargo from/to the hinterland countries. This study develops a simulation model to evaluate the performance of multiple stakeholders to understand how stakeholders determine their investment of transport infrastructure in cross-border corridors. East Africa including four landlocked countries is selected to be used as a case study which has two major cross-border corridors: the northern corridor and central corridor. In the railway expansion scenario, the road capacity increases marginally compared with the base case. While the capacity of all stakeholders rise, the highest regional net surplus is achieved in the case of progressive investment of the organizational restructuring scenario, where the net surplus of landlocked countries increases markedly.