Competition in Shipping, Trucking and Haulage Sector Study in East Africa

Transportation plays a critical role in the global economy as it facilitates and interlinks regions across the globe. Cargo transportation is a key determinant of market access and contributes to Regional Economic Integration by creating efficient linkages that facilitate regional and global trade. For it to perform the role effectively, there is need for it to be both cost-efficient and effective (reliable, fast). On a Regional level, the Northern Corridor is a key transportation artery for goods destined to and from the East African Community (EAC) and the Common Markets of Eastern and Southern Africa (COMESA) Region. The transport sector contributes between 5 to 15 % of the GDP among the Northern Corridor countries (KRB, 2015). However, the impact of transport goes well beyond its direct contribution to the economy as it serves as an intermediary service to all sectors and is therefore critical to economic growth and poverty alleviation. Provision of adequate transport infrastructure and comprehensive functioning of transport markets is a key component of a country’s competitiveness. The overall objective of this study is to identify potential competition concerns occasioned by the infringement of the competition law and government regulation, with a view of proactively addressing them and hence minimizing the cost of doing business in Kenya and in the Region. The study assesses, analyses and documents evidence of the status of competition in the liner shipping industry using the Port of Mombasa, the trucking and haulage industries operating along the Northern Corridor, and proposes recommendations.