Economics at your fingertips  

Determinants of a regional port-centric logistics hub: The case of East Africa

Hercules Haralambides, Simme Veldman (), Eric van Drunen () and Miaojia Liu
Additional contact information
Hercules Haralambides: Center for Maritime Economics and Logistics, Erasmus University Rotterdam, The Netherlands
Simme Veldman: ECORYS Nederland, Watermanweg 44, 3067 GG Rotterdam, The Netherlands.
Eric van Drunen: ECORYS Nederland, Watermanweg 44, 3067 GG Rotterdam, The Netherlands.
Miaojia Liu: Center for Maritime Economics and Logistics, Erasmus University Rotterdam, The Netherlands

Maritime Economics & Logistics, 2011, vol. 13, issue 1, 78-97

Abstract: Demand for port capacity in East Africa is rising rapidly, and possibilities for expansion in the existing ports are limited. Studies indicate that, by 2016, a new port north of Dar es Salaam (Tanzania) should be operational, serving, as a regional hub, the needs of the total (captive and non-captive) hinterland of East African ports. The objective of this article is to assess the economic potential, in terms of logistics costs of alternative hub-port locations. To that effect we first describe the flow of goods in the Nairobi – Durban port range and the landlocked countries; the available inland transport options; and the related transport costs and quality of service aspects. The inland and maritime transport costs are investigated and compared next, for the import-export routings of 18 different trade combinations between six landlocked countries (Uganda, Rwanda, Burundi, DRC Great Lakes/Copper Belt, Zambia and Malawi) and five ports (Mombasa, Dar es Salaam, Durban, Beira and Nacala). The article estimates the parameters of a multinomial logit model by comparing the differences in logistics costs of routings via Dar es Salaam and other ports. A port demand function is derived as a result. The article concludes that, in view of its distance from the arterial maritime container trade routes, the new port could only function as a regional lower-tier hub and distribution centre for the trade of Tanzania and Kenya, and of landlocked countries ranging from Uganda in the north to Zambia in the south. At present, this role is mostly played by ports in the Middle East, whereas East African ports serve merely as transit points.

Date: 2011
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link) Link to full text PDF (application/pdf) Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41278/PS2

Access Statistics for this article

Maritime Economics & Logistics is currently edited by Hercules E. Haralambides

More articles in Maritime Economics & Logistics from Palgrave Macmillan, International Association of Maritime Economists (IAME) Contact information at EDIRC.
Series data maintained by Sonal Shukla ().

Page updated 2017-09-29
Handle: RePEc:pal:marecl:v:13:y:2011:i:1:p:78-97