Assessing the economic benefits of transit trade: The case of Tanzania - Phase 2

The Government of Tanzania, through the Planning Commission, is keen to support initiatives aimed at transforming transit corridors into economic corridors such that the ongoing and planned transport infrastructure become more beneficial to the local communities. Such a policy priority needs a clear understanding of various dimensions through which transit trade impacts on the economy, and which policies could be deployed to amplify them.

This project assesses the economic/business opportunities that exist along the central railway line, as well as filling the current gap(s) in knowledge by identifying policies (actions/reforms) for amplifying them. This builds on a previous study which assessed the benefits that transit trade has to the transit country.

The analytical framework proposed by Donaldson (2010) in the studies of railroads provides analytical motivation for undertaking the current study. Following, the study will seek to answer two main questions:

• First, what are the benefits of increased access to towns and cities brought about by the central railway line and the upgrading of the infrastructure?
• Second, what is the impact of a train as the technology of choice vis-a-vis other alternative transport technologies?

Given the broad benefits of transit trade to a transit country as identified in the previous study, this study will examine impact of railroad as the preferred mode of transit vis-a-vis road/truck transport. This study will add valuable knowledge in informing the Government preparation and implementation of development plans, especially the various efforts by the Government in harnessing economic benefits of Tanzania’s geographical location, including the on-going efforts to construct a standard gauge railway line along the central corridor.