RAILWAY PRICING IN DEVELOPING COUNTRIES. A COMPARATIVE ANALYSIS OF THE TARIFFS AND UNIT COSTS OF THE TAZARA AND OF COMPETING ROUTES IN SOUTHERN AFRICA.

IN THIS PAPER THE TARIFFS AND CAPITAL AND OPERATING COSTS OF THE TANZANIA-ZAMBIA RAILWAY (TAZARA) ARE EXAMINED. THE UNIT COSTS ARE COMPARED WITH THE CORRESPONDING TARIFFS FOR VARIOUS DISTANCES. IT IS SHOWN THAT SOME OF THE GOODS ARE CONVEYED AT LOW RATES IN VIEW OF THE ACTUAL AND POTENTIAL COMPETITION FROM THE ALTERNATIVE ROUTES TO THE MOZAMBICAN, SOUTH AFRICAN AND ANGOLAN PORTS, NOT TO MENTION THE PARALLEL HIGHWAY. THE INEFFICIENCY, LONG DELAYS AND PILFERAGE AT DAR ES SALAAM PORT UNDERMINES FURTHER THE TAZARA'S COMPETITIVENESS. FURTHERMORE IT IS SHOWN THAT ALTHOUGH RAIL TRANSPORT IS CHEAPER THAN ROAD TRANSPORT, SUBSTANTIAL TRAFFIC IDEALLY MORE ATTUNED TO RAIL TRANSPORT IS HANDLED BY ROAD. THIS UNDERSCORES THE INCREASING IMPORTANCE OF MODAL "SERVICE CHARACTERISTICS" IN WHICH ROAD TRANSPORT HAS A COMPARATIVE ADVANTAGE.(Author/publisher).