Trademark East Africa’s David Stanton on ways to reduce transportation cost

In March last year, Trademark East Africa in collaboration with the Uganda Revenue Authority introduced the regional electronic cargo tracking system in East Africa. The system was designed to reduce transit time, enhance cargo safety, help traders better predict the arrival of goods, and ultimately cut the cost of shipping in the region. The initiative targeted the two major road corridors in East Africa: the Mombasa to Kigali corridor, known as the Northern Corridor, and the Dar es Salaam to Burundi corridor, known as the Central Corridor. Before the implementation of the electronic system, there was no effective way to track activities on these corridors. This lack of surveillance led to increased shipping costs due to the need for constant supervision and cargo escorting. With the introduction of the tracking system, the entire corridor is now under constant supervision and surveillance. The system has been installed in Uganda, Kenya, and Rwanda, enabling real-time tracking of all trucks on the corridor. This has proven to be beneficial for both the Revenue Authorities and trucking companies. Revenue Authorities can monitor truck movements, increasing efficiency and reducing costs. Trucking companies can ensure accountability from their drivers, leading to cost savings and operational improvements. David Stanton, Director General of Trademark East Africa, highlighted a specific incident in Uganda where the tracking system prevented a significant cargo theft. A consignment of sugar being transported from Kampala to Rwanda was almost stolen, but the electronic seal on the truck alerted authorities of the breach. The quick response led to the recovery of the sugar and prevented a substantial loss. Additionally, valuable cargo that previously required police escorts due to the risk of theft can now be transported without extra security measures. The electronic system has significantly reduced theft and eliminated the need for police escorts, streamlining the transportation process and saving costs. Stanton emphasized the importance of continuous improvement to further enhance regional trade. One of the initiatives underway is the economic operators scheme, which aims to expedite the movement of goods for compliant companies. By rewarding businesses that adhere to regulations and pay their dues promptly, the scheme aims to optimize the transit of goods along the corridors. This approach allows authorities to focus on higher-risk entities, improving overall efficiency. Another focus area is the integration of export and import documentation across East Africa, reducing delays and paperwork for goods destined for international markets. By harmonizing electronic systems and streamlining processes, the goal is to deliver fresher goods to export markets at lower costs. Stanton also addressed the challenges faced by construction projects in the region. Despite occasional delays due to contractual or construction complexities, Trademark East Africa has successfully completed projects, such as the one-stop border post at Busia between Kenya and Uganda. The project significantly reduced cross-border transit time and increased efficiency, showcasing the positive impact of infrastructure development in facilitating trade. Stanton emphasized the importance of close collaboration with governments and the private sector in driving regional development. He expressed confidence in the potential for further progress in enhancing trade facilitation in the region.