UBC Theses and Dissertations

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UBC Theses and Dissertations

Transportation and economic development in Tanzania. Mkama, Jumanne 1968

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TRANSPORTATION AND ECONOMIC DEVELOPMENT I N TANZANIA "by JUMANNE MKAMA BoA. , H o n s „ , U n i v e r s i t y o f E a s t A f r i c a : M a k e r e r e U n i v e r s i t y C o l l e g e , 1966 K a m p a l a , U g a n d a A THESIS SUBMITTED I N P A R T I A L FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n t h e S c h o o l o f COMMUNITY AND REGIONAL PLANNING We a c c e p t t h i s t h e s i s as c o n f o r m i n g t o t h e r e q u i r e d s t a n d a r d . THE U N I V E R S I T Y OF B R I T I S H COLUMBIA M Y , 1968 In p r e s e n t i n g t h i s t h e s i s i n p a r t i a l f u l f i l m e n t o f the r e q u i r e m e n t s f o r an advanced degree at the U n i v e r s i t y o f B r i t i s h C o l u m b i a , I agree t h a t the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s t u d y . I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g of t h i s t h e s i s f o r s c h o l a r l y p urposes may be g r a n t e d by the Head o f my Department o r by h i s r e p r e s e n -t a t i v e s . I t i s u n d e r s t o o d t h a t c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n . Department n f C o m m u n i t y a n d J R e g i o n a l P l a n n i n g The U n i v e r s i t y o f B r i t i s h Columbia Vancouver 8, Canada M a y , 1968 I ACKNOWLEDGEMENTS The a u t h o r w o u l d l i k e t o t h a n k - t h e G o v e r n m e n t s o f C a n a d a , a n d U n i t e d R e p u b l i c o f T a n z a n i a , f o r t h e s c h o l a r s h i p w h i c h h a s made t h e u n d e r t a k i n g o f t h i s s t u d y p o s s i b l e o A p p r e c i a t i o n i s e x t e n d e d t o P r o f e s s o r V . S . P e n d a k u r , f o r h i s g u i d a n c e a n d c o n -s t r u c t i v e c r i t i c i s m . S p e c i a l a c k n o w l e d g e m e n t i s g i v e n t o t h e M i n i s t r y o f C o m m u n i c a t i o n s , L a b o u r , a n d W o r k s , t h e E a s t A f r i c a n R a i l w a y s a n d H a r b o u r s ; a n d L i n t a n d S e e d M a r k e t i n g B o a r d i n U n i t e d R e p u b l i c o f T a n z a n i a , f o r c o o p e r a t i o n i n a n s w e r i n g q u e s t i o n s o n t h e . s u b j e c t a n d s u p p l y i n g t h e r e l e v a n t d a t a . . L a s t , b u t n o t l e a s t , t o my w i f e , f o r c o l l e c t i n g a n d p o s t i n g t h e . r e s t o f t h e d a t a r e q u i r e d on T a n z a n i a . ABSTRACT B e f o r e e c o n o m i c d e v e l o p m e n t can. t a k e p l a c e i n a c o u n t r y , t h e r e must be a m i n i m a l amount o f s o c i a l a n d e c o n o m i c i n f r a s t r u c t u r e . Good t r a n s p o r t a t i o n i s r e g a r d e d a s one o f t h e p r e r e q u i s i t e s t o r a p i d e c o n o m i c g r o w t h . To be e f f e c t i v e , h o w -e v e r , i t must be r e l a t e d t o n e e d s o f t h e c o u n t r y c o n c e r n e d . I n t h e e a r l y d e v e l o p m e n t o f T a n z a n i a , t r a n s p o r t a t i o n f a c i l i t i e s were b u i l t m o s t l y f o r s t r a t e g i c a n d a d m i n i s t r a t i v e p u r p o s e s . E c o n o m i c m o t i v e s were s e c o n d a r y , a n d p a r a m o u n t o n l y i n c a s e s where t h e r e was hope f o r i m m e d i a t e r e t u r n s , l i k e t h e e x p l o i t a t i o n o f a new m i n e . The o n l y o t h e r e c o n o m i c r e a s o n . w a s t o f a c i l i t a t e t r a d e , i n r a w m a t e r i a l s a n d m a n u f a c t -u r e d g o o d s 'between t h e m e t r o p o l i t a n p o w e r , o t h e r i n d u s t r i a l -i z e d c o u n t r i e s , a n d T a n g a n y i k a . I t was a l s o b e l i e v e d t h a t t h e p r o v i s i o n o f r a i l w a y s w o u l d l e a d t o r a p i d e c o n o m i c d e v e l o p -m e n t . H o w e v e r , t h e p r o v i s i o n o f r a i l w a y s i n t h e hope t h a t t h e y w o u l d g e n e r a t e e c o n o m i c g r o w t h was u n s u c c e s s f u l . I n s t e a d , r a i l w a y s became a b u r d e n t o t h e c o u n t r y b e c a u s e t h e y o p e r a t e d a t a l o s s a n d h a d t o be s u b s i d i z e d . A t t h e same t i m e , t h e l o a n s b o r r o w e d t o b u i l d t h e r a i l w a y s h a d t o be a m o r t i z e d a t a n a n n u a l r a t e o f b e t w e e n 4- ~ 4 - 1 / 2 % . T h u s , t h e r a i l w a y s p r o v e d t o o c o s t l y a mode f o r i n i t i a t i n g e c o n o m i c g r o w t h . ( i i i ) The " c o s t o f c a p i t a l 1 1 u s e d t o b u i l d r a i l w a y s was t o t a l l y b e y o n d t h e means o f t h e c o u n t r y i n i t s e a r l y s t a g e s o f e c o n o m i c g r o w t h . I t c r i p p l e d t h e f i n a n c i a l a n d c a p i t a l . a v a i l a b i l i t y f o r e c o n o m i c d e v e l o p m e n t i n g e n e r a l . N o t o n l y h a d t h e c o u n t r y l i m i t e d c a p i t a l f o r d e v e l o p m e n t , b u t o t h e r d i s a d v a n t a g e s , s u c h as b e i n g a M a n d a t e T e r r i t o r y , w h i c h r e -s u l t e d I n f u r t h e r f l i g h t o f c a p i t a l . T h u s , t h e t o t a l amount o f c a p i t a l u s e d t o r e p a y t h e r a i l w a y d e b t b e f o r e 194-8, d i v e r t e d c a p i t a l w h i c h s h o u l d h a v e b e e n i n v e s t e d i n o t h e r s e c t o r s o f t h e economy t o e s t a b l i s h a b a s e f o r f u t u r e d e v e l o p -ment . I t was a t t h i s s t a g e t h a t r o a d s came t o be p r e f e r r e d a s a l e s s c o s t l y mode t h a n r a i l w a y s f o r o p e n i n g up new a r e a s f o r d e v e l o p m e n t . The p o l i c y a d o p t e d was t o p r o v i d e a " c o u n t r y - w i d e L o w - C o s t " r o a d s y s t e m . F i r s t , t h i s p o l i c y p l a c e d t o o much e m p h a s i s o n b u i l d i n g t r u n k r o a d s a t t h e e x -p e n s e o f f e e d e r r o a d s . S e c o n d , i t o v e r l o o k e d t h e g e o g r a p h -i c a l c h a r a c t e r i s t i c s o f t h e c o u n t r y . F i n a l l y , t h e r o a d s w h i c h were b u i l t w e r e o f t o o l o w a s t a n d a r d . The n e t r e s u l t was t h e r o a d s y s t e m d i d n o t p r o v i d e e f f e c t i v e l i n k s t o t h e r u r a l a r e a s , t h e m a i n s t a y o f t h e p o p u l a t i o n a n d economy o f t h e c o u n t r y . A l s o , a r e a s w i t h h i g h g r o w t h p o t e n t i a l h a d i n -s u f f i c i e n t number o f r o a d s , w h i l e l e s s p r o s p e r o u s a r e a s were o v e r s u p p l i e d w i t h t h e m . B u t , e v e n more s o , t h e r o a d s d e t e r -i o r a t e d v e r y f a s t w i t h t h e r a p i d i n c r e a s e i n v o l u m e o f h e a v y v e h i c l e s a n d t r a f f i c . C o n s e q u e n t l y , m a i n t e n a n c e c o s t s r o s e ( i v ) v e r y r a p i d l y , c a l l i n g f o r i n c r e a s e d e x p e n d i t u r e . T h i s l i m i t e d t h e amount o f money w h i c h c o u l d be s p e n t i n f u r t h e r r o a d c o n -s t r u c t i o n , s u c h a s t h e b u i l d i n g o f r u r a l f e e d e r r o a d s . I n -c r e a s e d m a i n t e n a n c e c o s t s d i v e r t e d c a p i t a l r e s o u r c e s f r o m o t h e r s e c t o r s o f t h e economy, t h e r e b y i n h i b i t i n g b a l a n c e d e c o n o m i c g r o w t h * I n c o n t r a s t , o t h e r f a c t o r s , t h o u g h a c c o u n t i n g f o r l e s s c a p i t a l i n v e s t m e n t , have b e e n v e r y c r u c i a l i n t h e e c o n o m i c g r o w t h o f t h e c o u n t r y * The most i m p o r t a n t f a c t o r h a s b e e n w o r l d p r i c e s f o r e x p o r t c r o p s , e s p e c i a l l y t h a t of . s i s a l . T h i s c r o p became i m p o r t a n t a f t e r t h e f a l l o f r u b b e r p r i c e s a t t h e b e g i n n i n g o f t h i s c e n t u r y , a n d n o t w i t h t h e b u i l d i n g o f t h e r a i l w a y s t o w h i c h i t i s u s u a l l y a t t r i b u t e d . S i n c e t h e n , f l u c t u a t i o n i n t h e w o r l d p r i c e o f s i s a l h a s a f f e c t e d t h e r e v e n u e o f t h e c o u n t r y a n d l e v e l s o f e x p e n d i t u r e o n new c a p i t a l w o r k s . D u r i n g t h e K o r e a n boom, when p r i c e s f o r t h i s c r o p were f a v o u r a b l e , i t p r o v i d e d s u f f i c i e n t r e v e n u e and e n -c o u r a g e d i n c r e a s e d e x p e n d i t u r e ' i n c a p i t a l w o r k s , i n w h i c h r o a d d e v e l o p m e n t r a n k e d v e r y h i g h . O t h e r f a c t o r s w h i c h a c c o u n t e d f o r a s t a b l e g r o w t h i n -c l u d e t h e c e n t r a l i z a t i o n o f m a r k e t i n g o f c a s h c r o p s t h r o u g h c o o p e r a t i v e s a n d m a r k e t i n g b o a r d s . The e s t a b l i s h m e n t o f t h e s e i n s t i t u t i o n s made p o s s i b l e t h e payment o f h i g h p r i c e s d u r i n g y e a r s o f u n f a v o u r a b l e w o r l d p r i c e s f r o m f u n d s a c c u m u -l a t e d when w o r l d p r i c e s were g o o d . T h i s h a s e n c o u r a g e d i n -c r e a s e d a g r i c u l t u r a l p r o d u c t i o n , r e s u l t i n g i n a r i s e o f i n c o m e t o t h e f a r m e r s and h e n c e demand f o r c o n s u m e r i t e m s , e s p e c i a l l y i m p o r t s . T h e s e i n s t i t u t i o n s a l s o u n d e r t a k e t o p r o c e s s , a u c t i o n , a n d s h i p t h e c r o p s o f t h e f a r m e r s t o m a r k e t s o v e r s e a s , i n r e t u r n f o r a m i n i m a l c h a r g e o n t h e f a r m e r s ' i n c o m e . T h i s h a s e n a b l e d t h e s u b s i s t e n c e f a r m e r t o p r o d u c e h i s c r o p s a t a much more e c o n o m i c a l b a s i s t h a n i f he was o n h i s o w n . D e s p i t e d e f i c i e n c i e s i n t h e t r a n s p o r t a t i o n s y s t e m , t h e economy o f t h e c o u n t r y g r e w . B u t t h e l e v e l s o f g r o w t h a c h i e v e d h a v e r e m a i n e d l o w b e c a u s e o f i n a d e q u a c i e s i n o t h e r s e c t o r s o f t h e economy. I n a g r i c u l t u r e , t h e c o n t i n u e d u s e o f p r i m i t i v e methods o f p r o d u c t i o n h a s b e e n t h e m a j o r l i m i t i n g f a c t o r i n i n c r e a s e d l e v e l s o f p r o d u c t i o n . The f a i l u r e t o t a k e c o g n i z a n c e o f t h e s e p r o b l e m s i n t h e p a s t h a s ' l i m i t e d t h e e f f e c t i v e n e s s o f t r a n s p o r t a t i o n o n e c o n o m i c d e v e l o p m e n t a n d h a s r e s u l t e d i n a n u n b a l a n c e d g r o w t h . The i m p a c t o f t r a n s p o r t a t i o n h a s a l s o b e e n l i m i t e d b e c a u s e i t d e p e n d e d o n i m p o r t s f o r e q u i p m e n t a n d o t h e r e s s e n t i a l s . A l o c a l t r a n s p o r t i n d u s t r y , a s i n t h e c a s e o f t h e d e v e l o p e d c o u n t r i e s , i s s t i l l f a r f r o m b e i n g e s t a b l i s h e d . T h i s h a s b e e n c o n f i n e d t o r a i l w a y r e p a i r s h o p s , g a r a g e s a n d g a s s t a t i o n s . The above a r e t h e f i n d i n g s f r o m t h e e x a m i n a t i o n o f t h e t h e s i s o f t h i s s t u d y , i n t h a t : R a i l a n d R o a d t r a n s p o r t a t i o n as i n i t i a l l y d e v e l o p e d , a n d d e s p i t e i n c r e a s e d i n v e s t m e n t i n t h e f a c i l i t i e s o f t h e s e two m o d e s , was n o t as c o n d u c i v e t o e c o n o m i c ( v i ) d e v e l o p m e n t a s ' c o m p a r e d t o o t h e r f a c t o r s a c c o u n t i n g f o r l e v e l s o f e c o n o m i c g r o w t h a c h i e v e d . I n v i e w o f t h i s , a n d o f l i m i t e d c a p i t a l r e s o u r c e s f o r d e v e l o p -m e n t , i n c r e a s e d i n v e s t m e n t a n d e x p e n d i t u r e o n r a i l a n d r o a d t r a n s p o r t a t i o n d i v e r t e d s c a r c e r e s o u r c e s f r o m o t h e r e s s e n t i a l s e c t o r s o f t h e economy, s u c h a s a g r i c u l t u r e . A l s o , b e c a u s e t h e t a n g i b l e b e n e f i t s f r o m r a i l a n d r o a d t r a n s p o r t a t i o n were l e s s t h a n i t s c o s t s , t h e o p p o r t u n i t y c o s t o f i n v e s t e d c a p i t a l was . h i g h . T h i s was t h e c a s e f o r c a p i t a l i n v e s t e d , i n r a i l w a y s b e f o r e 194-8, a n d i n r o a d s t h e r e a f t e r . T h i s s t u d y a l s o p o i n t s t o t h e f a c t t h a t t h e r o l e t r a n s -p o r t a t i o n c a n p l a y i n t h e e c o n o m i c d e v e l o p m e n t o f a d e v e l o p i n g c o u n t r y i s d i f f e r e n t f r o m t h a t e x p e r i e n c e d i n t h e d e v e l o p e d c o u n t r i e s . I n a d d i t i o n , i n t h e l i g h t o f g r o w t h b a s e d o n p l a n n e d d e v e l o p m e n t , a s e c t o r i a l a p p r o a c h t o t r a n s p o r t a t i o n i s n o t e n o u g ho T r a n s p o r t a t i o n h a s t o be e v a l u a t e d i n t e r m s o f how i t c a n a s s i s t i n r a p i d f u l f i l m e n t o f t h e g o a l s o f t h e F i v e Y e a r P l a n . I n m a k i n g d e c i s i o n s o n f u t u r e i n v e s t m e n t s i n t h e economy, p r i o r i t y s h o u l d be g i v e n t o t h o s e s e c t o r s o f t h e economy w h i c h a r e c e n t r a l i n e n a b l i n g t h e a c h i e v e m e n t o f g o a l s o f t h e F i v e Y e a r P l a n . W i t h i n t h e t r a n s p o r t s e c t o r , d e c i s i o n s o n f u r t h e r i n -v e s t m e n t s s h o u l d be b a s e d o n a p r o p e r e v a l u a t i o n o f t r a n s p o r t n e e d s o f t h e c o u n t r y . I t s h o u l d a l s o be g u i d e d b y t h e r o l e t r a n s p o r t a t i o n h a s p l a y e d i n t h e p a s t t o a s s i s t r a p i d g r o w t h * ( v i i ) F o r e x a m p l e , a c l o s e r e x a m i n a t i o n a n d a s s e s s m e n t o f p a s t p e r -f o r m a n c e s ox r a i l and r o a d s i n t h e d e v e l o p m e n t o f t h e c o u n t r y w i l l p r o v i d e g u i d e l i n e s f o r a t r a n s p o r t a t i o n s y s t e m t o s e r v i c e i n c r e a s e d p r o d u c t i o n . I t w i l l a l s o e n a b l e t h e p l a n n e r t o d i s -c o v e r where t h e d e f i c i e n c y l i e s i n t h e economy a s a w h o l e . The i n a d e q u a c y o f a t r a n s p o r t a t i o n s y s t e m may be due t o l a c k o f o t h e r f a c i l i t i e s , s u c h as s t o r a g e , o r a p r o c e s s i n g p l a n t a s h a s b e e n t h e c a s e i n some p a r t s o f T a n z a n i a . I n f u t u r e , o r g a n i z a t i o n o f t r a n s p o r t , e s p e c i a l l y r a i l a n d r o a d . , s h o u l d be pur-sued t h r o u g h p o l i c i e s w h i c h w i l l f a c i l -i t a t e c o o r d i n a t i o n a n d i n t e g r a t i o n o f t h e two m o d e s . A n o t h e r i m m e d i a t e n e e d i s a t r a n s p o r t a t i o n p l a n t o a s s i s t i n d e v e l o p -i n g a w e l l b a l a n c e d t r a n s p o r t s y s t e m . I n v i e w o f t h e f o r m a -t i o n o f t h e E a s t A f r i c a n C o m m u n i t y , t h i s s h o u l d be done b o t h a t N a t i o n a l ( m i c r o ) a n d R e g i o n a l ( m a c r o ) l e v e l s . A N a t i o n a l T r a n s p o r t B o a r d s h o u l d be f o r m e d t o c a r r y o u t t h e above f u n c t i o n s c The i s s u e o f w h e t h e r t o d e v e l o p r a i l o r r o a d a s t h e most s u i t a b l e mode f o r f u r t h e r d e v e l o p m e n t s h o u l d a l s o be p r o p e r l y e v a l u a t e d . I t w o u l d a p p e a r , h o w e v e r , t h a t b o t h modes h a v e a r o l e t o p l a y b e c a u s e o f t h e i r c o m p l e m e n t a r y n a t u r e , t h e g e o g r a p h i c a l c h a r a c t e r i s t i c o f t h e c o u n t r y , a n d i n a s s i s t i n g t h e f o r m a t i o n o f a R e g i o n a l E c o n o m i c G r o u p i n c l u d i n g K e n y a , T a n z a n i a , U g a n d a . R u a n d a , U r u n d i , Z a m b i a , S o m a l i a a n d E t h i o p a . T r a n s p o r t a t i o n s h o u l d a l s o be made a n i n t e g r a l p a r t o f t h e "U jamaa V i l l a g e " p l a n n i n g p r o c e s s . F i n a l l y , t h e r e s h o u l d be ( v i i i ) c o n t i n u i n g r e s e a r c h i n a p p r a i s i n g t r a n s p o r t a t i o n p r o b l e m s i n d e v e l o p i n g c o u n t r i e s , so as t o e s t a b l i s h a t h e o r y f o r t r a n s -p o r t r e s e a r c h a n d d e v e l o p m e n t . ( i x ) TABLE OF CONTENTS Page ABSTRACT . . . . . . . . i i i LIST OF TABLES ' x i i i LIST OF FIGURES . xv LIST OF MAPS x v i INTRODUCTION . . . . . . . . . . . . . . . x v i i Chapter I. TRANSPORTATION AND ECONOMIC DEVELOPMENT . . 1 The Function of Transportation . . . . . . 1 The P r o v i s i o n of Modern Transportation i n a Developing Area . . . . . . . . . . 2 The Nature of Transport Investment . . . . 3 Transport and Economic Growth ". . 5 Organization of Transportation . . . . . . 6 I I . THE EVOLUTION OF RAIL AND ROAD TRANSPORTATION LN TANZANIA . . . . . . . . 8 Introduction . . . . . . . . . 8 The Development of Railways ; . 9 The Development of Roads 16 Road Maintenance and Construction Costs . 28 Organization of R a i l and Road Transportation . . . . . . . . . . 32 The Transportation Problem of Tanzania . . 37 I I I . RAIL AND ROAD COMMUNICATION AND ECONOMIC GROWTH . . . . . . 42 Railways and Economic Growth i n the United States . 42 Railways and Economic Growth i n India . . 43 R a i l and Road Communications i n the Economic Grov/th of Tanzania . . . . . . 45 (x) TABLE OF CONTENTS C h a p t e r P a g e I V . CASE STUDIES 74 S i g n i f i c a n c e o f T r a n s p o r t C o s t s i n t h e P r o d u c t i o n o f M a i n E x p o r t C r o p s . . . . S i s a l 74 C o f f e e a n d C o t t o n . . ° . . . . . . . . 81 R a i l w a y a n d R o a d T r a n s p o r t as F a c t o r s i n t h e E c o n o m i c G r o w t h o f S . E . T a n z a n i a : M t w a r a and Ruvuma R e g i o n s . . . . . . . 89 V . THE ROLE OF TRANSPORTATION I N T A N Z A N I A ' S ECONOMIC GROWTH . . 96 T r a n s p o r t I n v e s t m e n t B e n e f i t s 96 The P a s t R o l e o f T r a n s p o r t i n T a n z a n i a ' s E c o n o m i c G r o w t h : A n A s s e s s m e n t . . . . 104 V I . TRANSPORTATION AND ECONOMIC DEVELOPMENT . . 116 O b s e r v a t i o n a n d C o n c l u s i o n s . . . . . . . 116 F r a m e w o r k f o r T r a n s p o r t P l a n n i n g a n d t h e C h o i c e o f Mode f o r F u t u r e D e v e l o p m e n t . 127 T r a n s p o r t a n d U j a m a a V i l l a g e s . . . . . . 133 APPENDIX . . 137 A . D e v e l o p m e n t P l a n : 1955-1960 R o a d Programme 137 B . F i v e Y e a r P l a n - R o a d E x p e n d i t u r e C a r r i e d o v e r f r o m T h r e e Y e a r P l a n and E s t i m a t e d R o a d E x p e n d i t u r e b y 1 9 6 6 / 6 7 • • 138 C . G r o w t h o f T a n g a n y i k a ' s E x p o r t s , 1913/1959 . 14-5 ( x i ) TABLE OP CONTENTS APPENDIX Page D. M a r k e t i n g of C o f f e e and C o t t o n i n T a n z a n i a , and. the d i f f e r e n t modes o f T r a n s p o r t used i n moving the c r o p from farm t o e x p o r t i n g p o r t . . . . . 147 E . A Framework D e t e r m i n i n g N a t i o n a l and R e g i o n a l T r a n s p o r t Needs . . . . . . . . . 148 BIBLIOGRAPHY 14-9 ( x i i ) LIST OF TABLES Table Page 1. Five Year Plan - J u l y 196VJune 1969, Proposed Railway Expenditure 13 2. Railway Mileage of Track i n Tanzania i n 1966, by C l a s s i f i c a t i o n 14 3. C l a s s i f i c a t i o n of Roads, by 1936 . . . . . . . 18 4. (a) Proposed Expenditure Under 1955/1960 Development Plan . . . . . . . . 21 4. (b) Proposed Expenditure Under 1955/1960 Development Plan - Roads . . . 22 5. Mileage of C l a s s i f i e d Roads - 1950-1963 . . . 23 6. Five Year Plan - 1964/1969 , Proposed Expenditure on Roads '26 7. Road Construction Costs . . . . . . . . . . . 28 8. Road Maintenance Costs . . . . . . . 29 9. Operating Speeds f o r Vehicles 30 10. The Growth of Licensed Motor Vehicles, 1953 - 1963 35 11. 1906 - 1912: Expansion of Trade of German East A f r i c a 48 12. Government of Tanganyika: Revenue and Expenditure between 1948 - 1959 60 13. (a) Government of Tanganyika -Development Plan 1955/1960 . . . . . . . . 63 ( x i i i ) L I S T OF TABLES T a b l e P a g e 13. ( b ) Government o f T a n g a n y i k a - C a p i t a l E x p e n d i t u r e s o n E c o n o m i c & S o c i a l S e c t o r s , 1948/50, 1955/56, 1958/59, and E s t i m a t e s f o r 1960/1961 64 13. ( c ) Government o f T a n g a n y i k a -* E x p e n d i t u r e o n E c o n o m i c A c t i v i t i e s 1948 - 1958/59 . . . 65 1 4 . ( a ) Government o f T a n g a n y i k a - E x p e n d i t u r e o n S e l e c t e d E c o n o m i c a n d S o c i a l S e r v i c e s , 1961 - 1964 . 68 • 1 4 . ( b ) Government o f T a n g a n y i k a - P r o p o s e d E x p e n d i t u r e f o r D e v e l o p m e n t P l a n -1961/62 - 1963/64 . . . . . . . . . . . . . 70 15. S i s a l P r o d u c t i o n , L a b o u r a n d C a p i t a l C o s t s , P e r T o n , 1962 and 1963 . . . . . . . . . . ?8 1 6 . ( a ) K i l i m a n j a r o N a t i v e C o - O p e r a t i v e U n i o n L t d C o f f e e S e l l i n g S e c t i o n - 1961/62 S e a s o n 8 ? 1 6 . ( b ) A c c o u n t f o r P u r c h a s i n g C o t t o n L i n t b y t h e L i n t . a n d S e e d M a r k e t i n g B o a r d f o r 1961-62 C r o p S e a s o n . 88 17. E x p o r t T r a d e o f F o r m e r S o u t h e r n P r o v i n c e , 1951 - 1963 . . 93 1 8 . P r o p o r t i o n o f P u b l i c D e b t A c c o u n t e d f o r T e r r i t o r i a l a n d R a i l w a y S e r v i c e s , 1931/32 97 19. P r o p o r t i o n o f Debt C h a r g e s t o D o m e s t i c E x p o r t s a n d Revenue - 1928-1935 96 ( x i v ) L I S T OF FIGURES F i g u r e P a g e 1. Vo lume o f T r a f f i c o n S e l e c t e d Road S e c t i o n s a n d J u n c t i o n s . . . . . . . . . . 33 2. G r o w t h o f I m p o r t T r a d e - 1925-1938 . . . . . 52 3o E x p e n d i t u r e o n R o a d M a i n t e n a n c e a n d D e v e l o p m e n t . . . . . . . . . . . . . . . 99 4. A C o m p a r i s o n o f E x p e n d i t u r e o n R o a d M a i n t e n a n c e a n d Revenue f r o m M o t o r V e h i c l e L i c e n c e s . . . . . . . . . . 100 5 . V a l u e o f I m p o r t s o f R a i l & R o a d • T r a n s p o r t E q u i p m e n t . . . . . . ,102 6. A C o m p a r i s o n o f V a l u e s o f I m p o r t s & I m p o r t D u t i e s o n R a i l & R o a d E q u i p m e n t 103 LIST OF MAPS Map Page 1 . Railways B u i l t Between 1894 and 1965 • • ° » • 15 2 . Development and Improvement of Trunk Roads, 1955 ~ I960 . 20 J. Development and Improvement of Roads Under Five Year Plan - 1964-69 . . . . . . 27 • 4 . Volume of T r a f f i c on T e r r i t o r i a l and Local Main Roads . . . . . . . . . . . . 31 5 . S i s a l , Cotton) Coffee Growing Areas: Railroad F a c i l i t i e s and Pattern of Economic A c t i v i t i e s , Mtwara and Ruvuma Regions . . . 75 ( x v i ) INTRODUCTION S t a t e m e n t o f t h e P r o b l e m  a n d i t s I m p o r t a n c e The m a j o r i t y o f t h e d e v e l o p i n g c o u n t r i e s a r e s e e k i n g t o a c c e l e r a t e t h e i r e c o n o m i c g r o w t h t h r o u g h p l a n n e d d e v e l o p -ment b a s e d o n p r i o r i t i e s a n d a l l o c a t i o n o f r e s o u r c e s i n p r o -j e c t s , w h i c h w i l l e n s u r e t h e h i g h e s t b e n e f i t s a n d f u l f i l m e n t o f t h e g o a l s s e t o u t i n t h e d e v e l o p m e n t p l a n . Two f a c t o r s w h i c h u n d . e r l i e t h i s t y p e o f d e v e l o p m e n t a r e : f i r s t , t h e t i m e f a c t o r , s i n c e most o f t h e s e d e v e l o p m e n t p l a n s r e l a t e t o a p e r i o d o f f i v e t o s e v e n y e a r s ; a n d s e c o n d , t h e c a p i t a l , w h i c h t e n d s t o be l i m i t e d . T h u s , p r o p e r e v a l u a t i o n o f p r o p o s e d p r o j e c t s i n d i f f e r e n t s e c t o r s o f t h e economy becomes i m p e r a -t i v e i n o r d e r t c a l l o c a t e s c a r c e c a p i t a l r e s o u r c e s where i t i s most u r g e n t l y n e e d e d . A d i s t i n c t i v e f e a t u r e o f r e s o u r c e a l l o c a t i o n i n t h e d e v e l o p i n g c o u n t r i e s , h a s b e e n t h e l a r g e amount o f c a p i t a l b e i n g i n v e s t e d i n t r a n s p o r t a t i o n . I n N i g e r i a , a t one t i m e , t r a n s p o r t a t i o n c o n s t i t u t e d 46 .5% o f t h e p u b l i c s e c t o r i n v e s t -1 m e n t . I n I n d i a , i n t h e f i r s t t h r e e d e v e l o p m e n t p l a n s , e x -p e n d i t u r e o n r a i l v r a y s was 47% i n t h e f i r s t p l a n , 67% i n t h e s e c o n d p l a n , a n d 60% i n t h e t h i r d p l a n . E x p e n d i t u r e on r o a d s 1 0 w e n , to"., S t r a t e g y f o r M o b i l i t y ( W a s h i n g t o n , D . C . : B r o o k i n g s I n s t i t u t i o n : T r a n s p o r t R e s e a r c h P r o g r a m m e , 1 9 6 4 ) , p . 4-5. ( x v i i ) CHAPTER I TRANSPORTATION AND ECONOMIC DEVELOPMENT 1. The. P u n c t i o n o f T r a n s p o r t a t i o n The f u n c t i o n o f t r a n s p o r t a t i o n i s t o move p e o p l e a n d g o o d s f r o m one p l a c e t o a n o t h e r . B y so d o i n g , f r i c t i o n i n s p a c e i s overcome a n d f a c t o r s o f p r o d u c t i o n a r e made m o b i l e , i n r e s p o n s e t o m a r k e t f o r c e s . T r a n s p o r t a t i o n , as a f a c t o r i n 1 p r o d u c t i o n , t h e r e f o r e , c r e a t e s " p l a c e u t i l i t y " , b y m o v i n g g o o d s f r o m where t h e y a r e p r o d u c e d t o where they a r e w a n t e d f o r c o n s u m p t i p n , A n e f f i c i e n t t r a n s p o r t a t i o n s y s t e m o u g h t t o p r o v i d e t h i s s e r v i c e i n t h e s h o r t e s t p o s s i b l e t i m e a n d a t t h e l o w e s t e c o n o m i c c o s t . The way a t r a n s p o r t s y s t e m d e v e l o p s a n d i t s s u b s e q u e n t i m p r o v e m e n t w i l l d e p e n d on t h e p h y s i c a l e n v i r o n m e n t o f t h e c o u n t r y , i t s e c o n o m i c , s o c i a l , a n d p o l i t i c a l c h a r a c t e r i s t i c s . T h e s e f a c t o r s i n one c o u n t r y may l e a d t o t h e d e v e l o p m e n t o f a s u c c e s s f u l t r a n s p o r t s y s t e m , w h i l e i n a n o t h e r much l e s s s o . . T r a n s p o r t a t i o n i s n o t a n i n d e p e n d e n t v a r i a b l e i n e c o n o m i c d e v e l o p m e n t . I t s r o l e , i n a s s i s t i n g r a p i d e c o n o m i c g r o w t h , w i l l n o t o n l y d e p e n d o n t h e " e c o n o m i c s o f t r a n s p o r t a t i o n " , b u t " ' " F a i r , L . M . a n d W i l l i a m s , V / . , E c o n o m i c s o f T r a n s p o r -t a t i o n (New Y o r k : H a r p e r a n d B r o t h e r s ) , p™ 3* ~ 2 how t h e s e a r e i n f l u e n c e d b y p h y s i c a l , e c o n o m i c , • s o c i a l , a n d p o l i t i c a l f a c t o r s . 2 . The P r o v i s i o n o f M o d e r n T r a n s p o r t a t i o n i n  a D e v e l o p i n g A r e a The e s t a b l i s h m e n t o f m o d e r n t r a n s p o r t a t i o n i n t h e d e v e l o p i n g c o u n t r i e s was t o p r o v e s u p e r i o r t o p r i m i t i v e m e t h o d s o f t r a n s p o r t w h i c h p r e v a i l e d i n t h e s e a r e a s . The m a j o r r e a s o n i s t h a t m e c h a n i z e d t r a n s p o r t was c a p a b l e o f o v e r c o m i n g t h e v a s t d i s t a n c e s q u i c k l y a n d c h e a p l y a s c o m p a r e d t o p o r t e r a g e , w h i c h was i n e f f i c i e n t and e x p e n s i v e . Thus t h e n e e d t o l i n k h i n t e r l a n d s t o p o r t s a n d , s u b s e q u e n t l y , t o o v e r -s e a s m a r k e t s , made r a i l w a y s s u p e r i o r t o p o r t e r a g e b o t h i n t e r m s o f c o s t a n d t i m e s a v e d . I n t h e c a s e o f U g a n d a , f o r e x -a m p l e , t h e a r r i v a l o f t h e r a i l w a y a t t h e b e g i n n i n g o f t h i s c e n t u r y r e d u c e d t r a n s p o r t a t i o n c o s t s f r o m s i x s h i l l i n g s p e r t o n m i l e t o t w e n t y c e n t s p e r t o n m i l e , a n d t r a v e l t i m e f r o m o v e r h a l f a y e a r t o b e t w e e n two o r t h r e e d a y s b y p o r t e r a g e 2 a n d r a i l w a y , r e s p e c t i v e l y . A s shown a b o v e , t h e i m p a c t o f a m o d e r n a n d e f f i c i e n t t r a n s p o r t s y s t e m i s e v a l u a t e d b y t h e e x t e n t t o w h i c h i t makes r e d u c t i o n i n t r a n s p o r t c o s t s a n d t r a v e l t i m e p o s s i b l e . I n -c r e a s e d s p e e d l e a d s t o c a p i t a l s a v i n g s w h i c h c a n be c h a n n e l l e d f o r d e v e l o p m e n t i n o t h e r s e c t o r s o f t h e economy. I t I s now o v e r h a l f a c e n t u r y s i n c e m o d e r n means o f 2 H a w k i n s , E . K . , R o a d a n d R o a d T r a n s p o r t i n a n U n d e r -d e v e l o p e d C o u n t r y : A C a s e S t u d y o T Uganda ( L o n d o n : C o l o n i a l R e s e a r c h ~ S t u d i e s N o . 3 2 , H e r M a j e s t y ' s ~ S t a t i o n e r y O f f i c e , 1 9 6 2 ) , p . 2 5 . ' 3 transport were provided i n developing countries. But i n these countries, the p i c t u r e i s s t i l l a mixture of p r i m i t i v e and modern modes of t r a n s p o r t a t i o n . This r e f l e c t s the immaturity, i n the t r a n s p o r t a t i o n system of these countries and t h e i r i n a b i l i t y to provide an a l l round modern transport system due to l i m i t e d c a p i t a l . Although e s t a b l i s h i n g a modern transpor-t a t i o n system i s the goal of p r a c t i c a l l y every developing country now engaged i n the modernization of her economy, i t i s u n r e a l i s t i c to overlook the p r i m i t i v e transport methods altogether f o r two reasons. F i r s t , the establishment of a modern transport system w i l l take a long time i n the mean-time, dependence w i l l be on the p r i m i t i v e methods of trans-port which are gradually being replaced. Second, p r i m i t i v e transport methods may s t i l l s a t i s f y c e r t a i n types of demand more economically and e f f i c i e n t l y than modern means of t r a n s -por t . This has been pointed out i n r e l a t i o n to some economic 3 a c t i v i t i e s i n West A f r i c a . 3» The Nature of Transport Investment The establishment of a modern and e f f i c i e n t transpor-t a t i o n system involves considerable c a p i t a l investments. The magnitude of t h i s investment i s f u r t h e r complicated by the f a c t that, once the money has been invested, i t can only be recovered e i t h e r from revenue or s o c i a l b e n e f i t s which are 3 -United Nations, Transport Problems i n R e l a t i o n to Economic Development i n West A f r i c a {'E/OITT^T/KOT) ^ V 3 transport were provided i n developing countries. But i n these countries, the p i c t u r e i s s t i l l a mixture of p r i m i t i v e and modern modes of tr a n s p o r t a t i o n . This r e f l e c t s the immaturity i n the t r a n s p o r t a t i o n system of these countries and t h e i r i n a b i l i t y to provide an a l l round modern transport system due to l i m i t e d c a p i t a l . Although e s t a b l i s h i n g a modern transpor-t a t i o n system i s the goal of p r a c t i c a l l y , every developing country now engaged i n the modernization of her economy, i t i s u n r e a l i s t i c to overlook the p r i m i t i v e transport methods altogether f o r two reasons. F i r s t , the establishment of a modern tx-ansport system w i l l take a long time — i n the mean-time , dependence w i l l be on the p r i m i t i v e methods of trans-port which are gradually being replaced. Second, p r i m i t i v e transport methods may s t i l l s a t i s f y c e r t a i n types of demand more economically and e f f i c i e n t l y than modern means of tr a n s -po r t . This has been pointed out i n r e l a t i o n to some economic 3 a c t i v i t i e s i n West A f r i c a . 3 . The Nature of Transport Investment The establishment of a modern and e f f i c i e n t transpor-t a t i o n system involves considerable c a p i t a l investments. The magnitude of t h i s investment i s f u r t h e r complicated by the f a c t that, once the money has been invested, i t can only be recovered e i t h e r from revenue or s o c i a l b e n e f i t s which are 3 "United Nations, Transport Problems i n R e l a t i o n to  Economic Development i n West A f r i c a 02/TJN. l V ^ J ) , ' p. 22'.' 4 i n t a n g i b l e . T h i s f a c t o r i s s i g n i f i c a n t i n areas w i t h l i m i t e d c a p i t a l f o r economic development and i s f a r more r e l e v a n t t o -day t h a n i n the p a s t , when t h e a d m i n i s t r a t i o n of most of the d e v e l o p i n g c o u n t r i e s was i n t h e hands of c o l o n i a l powers . I n the p a s t , d e c i s i o n s t o i n v e s t i n t r a n s p o r t a t i o n were m o t i v a t e d by immediate r e t u r n s i n the form of p r o f i t s by t h e e x p l o i t a -t i o n o f m i n e r a l s . I n the p r e s e n t s i t u a t i o n , b o t h l o c a l and o u t s i d e c a p i t a l f o r development i s s c a r c e and i n b i g demand by a l l the d i f f e r e n t s e c t o r s o f the economy. M o r e o v e r , c a p i t a l from o u t s i d e s o u r c e s i n t h e form of a i d and l o a n s i s i n c o m p e t i t i o n between a l l t h e d e v e l o p i n g c o u n t r i e s . A l s o , the s o c i o - p o l i t i c a l p r i n c i p l e s adopted by some o f the c o u n t r i e s have tended t o f r i g h t e n away p r i v a t e c a p i t a l . Thus , the r e s p o n s i b i l i t y o f p r o v i d i n g the i n f r a s t r u c t u r e l i e s s o l e l y w i t h the n a t i o n a l government o r p u b l i c l y owned a g e n c i e s . D e s p i t e l i m i t e d c a p i t a l funds f o r development , however, t r a n s p o r t a t i o n i s b e i n g a l l o c a t e d a b i g g e r p r o p o r t i o n t h a n o t h e r s e c t o r s of the economy. T h i s has been p o i n t e d out as an i n d i c a t i o n of t h e importance o f the t r a n s p o r t s e c t o r i n the 5 over a l l economy. I t can a l s o be argued t h a t t h i s i s a " f o r c e d i n v e s t m e n t " , because many of the d e v e l o p i n g c o u n t r i e s have i n h e r i t e d a t r a n s p o r t a t i o n system w h i c h does not ^Fromm, G . , ( e d . ) , T r a n s p o r t Investment and Economic Development ( B r o o k i n g s I n s t i t u t i o n : T r a n s p o r t R e s e a r c h Programme, W a s h i n g t o n , D . C . , 1965) , p p . 3 6 - 3 7 . x Owen, W. , T r a n s p o r t a t i o n and Economic Development: Highway R e s e a r c h R e c o r d , No. 115 (The N a t i o n a l Academy of S c i e n c e s - N a t i o n a l R e s e a r c h C o u n c i l , W a s h i n g t o n , D . C , 1966) , p . 1 . f a c i l i t a t e r a p i d i n t e r n a l m o b i l i t y . , S i n c e one o f t h e d e v e l o p -ment o b j e c t i v e s i s t o e x p a n d i n t e r n a l m a r k e t s f o r i m p o r t s u b -s t i t u t i o n i n d u s t r i e s , t h e r e i s no a l t e r n a t i v e e x c e p t t o e s t a b l i s h a n i n t e r n a l t r a n s p o r t s y s t e m w h i c h w i l l e n a b l e q u i c k movement o f p e o p l e a n d g o o d s a t r e d u c e d c o s t s . When d e a l i n g w i t h t r a n s p o r t p r o b l e m s i n a d e v e l o p i n g c o u n t r y , i t may be n e c e s s a r y t o d i s t i n g u i s h b e t w e e n t r a n s p o r t p r o b l e m s c o n n e c t e d w i t h f a c i l i t a t i n g e x t e r n a l l i n k s a n d t h o s e w h i c h a r e f o r i n t e r n a l movement . The f o r m e r a r e u s u a l l y w e l l e s t a b l i s h e d a n d t h e p r o b l e m i s n o t o f p r o v i d i n g c o m p l e t e l y -new f a c i l i t i e s , b u t o f i m p r o v i n g t h e e x i s t i n g o n e s . T h i s i s n o t t h e c a s e w i t h p r o b l e m s r e l a t e d t o i n t e r n a l l i n k s i n w h i c h no f a c i l i t i e s may be p r e s e n t . 4-e T r a n s p o r t a n d E c o n o m i c G r o w t h T r a n s p o r t a t i o n i s a n e c e s s i t y , b u t i t i s n o t a s u f f i -c i e n t c o n d i t i o n f o r e c o n o m i c d e v e l o p m e n t . T h i s a p p e a r s t o be t h e c u r r e n t v i e w p e r t a i n i n g i n most s t u d i e s o n t r a n s p o r t a t i o n a n d e c o n o m i c d e v e l o p m e n t . F o r e x a m p l e , Heyman a t t r i b u t e s t h e A m e r i c a n d e v e l o p m e n t n o t so much t o t h e p r o v i s i o n o f t r a n s p o r -t a t i o n b u t r a t h e r : b y t h e g o l d e n o p p o r t u n i t i e s , t h e p o w e r f u l a t t r a c t i o n s o f t h e w e s t : the v i s i o n o f d e n s e r f o r e s t s , r i c h e r m i n e s , w i d e r f i e l d s a n d b u s i e r t o w n s t h a t p u l l e d t h e t r a p p e r , t h e l u m b e r m a n , t h e m i n e r , f a r m e r and. t h e c a t t l e m a n i r r e s i s t a b l y w e s t w a r d . 6 A s u r v e y o f l i t e r a t u r e o n t h e e c o n o m i c d e v e l o p m e n t o f ^Eromm, o p . c i t . , p . 31 t h e d e v e l o p i n g c o \ i n t r i e s t e n d s t o l e a d one t o a s i m i l a r c o n -c l u s i o n . The hope f o r q u i c k r e t u r n s f r o m t h e e x p l o i t a t i o n o f h i d d e n " E l D o r a d o s " i n u n e x p l o r e d p a r t s o f r e g i o n s l i k e A f r i c a , was a n i m p o r t a n t f o r c e e n c o u r a g i n g i n v e s t m e n t i n r a i l w a y s . B u t t h e r e a r e o t h e r f a c t o r s , t o o , w h i c h o u g h t t o be o v e r c o m e . T h e s e may be e n v i r o n m e n t a l , e c o n o m i c , s o c i a l o r p o l i t i c a l . A t r a n s p o r t a t i o n f a c i l i t y w h i c h i n f l u e n c e s a g r e a t number o f p e o p l e , as w e l l a s b e i n g a p p r e c i a t e d as t o what i t 7 m i g h t a c c o m p l i s h , a n d f o l l o w e d b y i m p r o v e m e n t i n methods o f a g r i c u l t u r a l p r o d u c t i o n , b e t t e r m a r k e t i n g f a c i l i t i e s , a n d s t a b l e p r i c e s , w i l l h a v e a g r e a t e r i m p a c t o n t h e e c o n o m i c d e v e l o p m e n t t h a n t h e one w h i c h d o e s n o t c o n s i d e r t h e o v e r a l l economy. I n v e s t m e n t i n t r a n s p o r t a t i o n s h o u l d be b a l a n c e d w i t h i n v e s t m e n t i n o t h e r s e c t o r s o f t h e economy. 5. O r g a n i z a t i o n ' o f T r a n s p o r t a t i o n T r a n s p o r t a t i o n i s a s e r v i c e t o t h e l a n d ; i t i s a l s o a l i n k b e t w e e n a l l s e c t o r s o f t h e economy a n d c a n c o n s t i t u t e a s e p a r a t e e n t i t y o f t h e economy. A s a t r a n s p o r t a t i o n s y s t e m p r o g r e s s e s t o m a t u r i t y , c o m p e t i t i o n t e n d s t o d e v e l o p b e t w e e n t h e d i f f e r e n t m o d e s . I n t h e c a s e o f r a i l a n d r o a d , e a c h mode h a s s p e c i f i c a d v a n t a g e s f o r c a r r y i n g p a r t i c u l a r k i n d s o f t r a f f i c e c o n o m i c a l l y i n r e s p e c t t o t h e l e n g t h o f h a u l a g e i n -v o l v e d . R a i l w a y s a r e w e l l s u i t e d f o r movement o f b u l k y g o o d s 7 ' W i l s o n , G . W . , a n d o t h e r s , The I m p a c t o f H i g h w a y  I n v e s t m e n t on D e v e l o p m e n t ( B r o o k i n g s I n s t i t u t i o n : T r a n s p o r t R e s e a r c h P r o g r a m m e , W a s h i n g t o n , . D . C . , 1955 ) , p . 193* 7 at l o n g d i s t a n c e s w h i l e road t r a n s p o r t i s s u i t a b l e f o r s h o r t d i s t a n c e movement of l e s s b u l k y items. I n the case of r a i l and r o a d , t h i s c o m p e t i t i o n has r e s u l t e d i n the former l o s i n g h i g h p r i c e d t r a f f i c t o the l a t t e r , w i t h c o n s e q u e n t i a l l o s s i n p r o f i t s and, i n some i n s t a n c e s , r e s u l t i n g i n uneconomic opera-t i o n s . T h i s phenomenon i s c h a r a c t e r i s t i c of the mature t r a n s -p o r t environment i n the developed c o u n t r i e s . C o n t r o l was ex-e r c i s e d i n order t o a v o i d m i s a l l o c a t i o n of r e s o u r c e s and t o safeguard the revenue of r a i l w a y s , e s p e c i a l l y I f these were p u b l i c l y owned. Based on the experience of the developed c o u n t r i e s , i t was f e a r e d t h a t the above s i t u a t i o n would occur i n the develop-i n g c o u n t r i e s i n the process of r a i l and road development. The tendency was, t h e r e f o r e , t o discourage c o m p e t i t i o n and safeguard r a i l w a y revenue by r e s t r i c t i n g and r e g u l a t i n g road t r a n s p o r t . In the former B r i t i s h C o l o n i e s ( e . g . , East A f r i c a ) , the method used was r e s t r i c t i v e v e h i c l e l i c e n s i n g on the model 8 operated i n the U n i t e d Kingdom. This move was premature because of the inadequacy of t r a n s p o r t f a c i l i t i e s . In develop-i n g c o u n t r i e s , u n l i k e the developed areas, p o l i c i e s were needed which would have maximized the use of a l l modes of t r a n s p o r t a t i o n i n such a manner as t o f a c i l i t a t e c o - o r d i n a t i o n . Hawkins, op. c i t . , p. 136. CHAPTER I I 1. THE EVOLUTION OF R A I L AND ROAD TRANSPORTATION I N TANZANIA I n t r o d u c t i o n The f i r s t a t t e m p t t o e s t a b l i s h a m o d e r n t r a n s p o r t s y s t e m i n T a n g a n y i k a d a t e s b a c k t o t h e 1870's. I n 1876, M a c k i n n o n a n d B u x t o n u n d e r t o o k t o c o n s t r u c t a r o a d f r o m D a r - e s - S a l a a m t o L a k e N y a s a , a s a n a t t e m p t t o o p e n up t h e i n t e r i o r t o m o d e r n commerce t o r e p l a c e t h e s l a v e t r a d e . The r o a d e x t e n d e d i n l a n d f o r s e v e n t y - t h r e e m i l e s b u t b e c a u s e o f 1 t s e t s e f l y i t p r o v e d t o be o f l i t t l e u s e . A t t e m p t s t o u s e 2 b u l l o c k s f o r t r a n s p o r t a t i o n were a l s o u n s u c c e s s f u l . The l a s t a t t e m p t t o o p e i i up t h e m a i n l a n d was when t h e S u l t a n o f Z a n z i b a r , . S e y y i d M a j i d , who c l a i m e d s u z e r a i n t y o v e r t h e a r e a , g r a n t e d M a c k i n n o n a n d h i s f r i e n d s a c o n c e s s i o n — The M a c k i n n o n C o n c e s s i o n . T h i s c o n c e s s i o n i n c l u d e d among o t h e r p r i v i l e g e s , " t h e e x c l u s i v e r i g h t t o r e g u l a t e t h e n a v i g a t i o n C o u p l a n d , R . , The E x p l o i t a t i o n o f E a s t A f r i c a : The S l a v e T r a d e a n d t h e S c r a m b l e ( F a b e r a n d F a b e r L t d . " , 2A R u s s e l S q u a r e , L o n d o n ) , p p . 3 0 2 - 3 0 3 . 2 S m i t h , E . W . , The E a r l i e s t Ox-Wagons i n T a n g a n y i k a -A n E x p e r i m e n t W h i c h F a i l e d . P a r t I : T a n g a n y i k a N o t e s and R e c o r d s , V o l . 4 0 , S e p t . 1955, p p . 1 - 1 4 ; P a r t I I : T a n g a n y i k a N o t e s and R e c o r d s , V o l . 4 1 , D e c . 1955, ( G o v e r n m e n t P r i n t e r , D a r - o s - S a l a a m ) , p p . 1 - 3.5-9 of r i v e r s and lakes and the construction of roads, railways 3 and telegraphs". The scheme never came o f f the ground. The development of a modern i n f r a s t r u c t u r e had to w a i t - u n t i l a f t e r the scramble f o r East A f r i c a was s e t t l e d by the Heligoland Treaty i n 1890, when Tanganyika became a German Colony. The i n i t i a l development of the Colony was under-taken by the German East A f r i c a Company. A. The Development of Railways 1. 1894 - 1919 The German East A f r i c a Company b u i l t the f i r s t r a i l -way l i n e , the Nordbahn (Tang'a L i n e ) . The l i n e was constructed from 1896 to 1911? during which time 220 miles of railway track was l a i d . The slow construction of t h i s l i n e i s a t t r i b -uted l a r g e l y to the inadequacy of funds. Work on the l i n e had to stop f o r f i v e years a f t e r the i n i t i a l year of construction. The Imperial Government had no i n t e r e s t i n the l i n e , although 4 i n the end i t came to the rescue of the railway. In contrast, the"Mittlelandbahn" (Central L i n e ) , was b u i l t at a speed and excellence of construction nowhere equalled i n T r o p i c a l A f r i c a . Proper f i n a n c i a l arrangements, i n which the railway company operated v i r t u a l l y l i k e a p u b l i c •^Coupland, op. c i t . , p. 307. 4 Eberlxe, R.F., The German Achievements i n East A f r i c a ; Tanganyika Notes and Records, No. 55, Sept. I960 (Government P r i n t e r , Dar-es-Salaasa)"," pp. 196-197. 10 5 c o r p o r a t i o n , e n s u r e d t h e r a p i d c o n s t r u c t i o n o f t h e l i n e . T h i s l i n e h a s r e m a i n e d t h e most i m p o r t a n t u n d e r t a k i n g i n t h e r a i l w a y h i s t o r y o f T a n z a n i a i n t e r m s o f m i l e a g e . The l i n e b e g i n s a t D a r - e s - S a l a a m h a r b o u r o n t h e I n d i a n O c e a n a n d ends a t K i g o m a on L a k e T a n g a n y i k a , a d i s t a n c e o f 780 m i l e s . I t d i v i d e s t h e c o u n t r y a l m o s t i n t o two h a l v e s . O t h e r r a i l w a y s b u i l t d u r i n g t h e German A d m i n i s t r a t i o n i n c l u d e d t h e T a b o r a -Kahama l i n e , w h i c h was p a r t o f a p r o j e c t e d r a i l w a y l i n e t o t h e s o u t h west ' p a r t o f L a k e V i c t o r i a a n d R u a n d a U r u n d i ; a n d a t r a m l i n e o f 60 c e n t i m e t r e gauge f r o m L i n d i t o some 55 m i l e s i n l a n d . A l i n e f r o m K i l o s a t o I r i n g a - a n d s u b s e q u e n t l y t o 6 Mbeya a n d M b o z i was a l s o p r o p o s e d . B u t t h e F i r s t W o r l d W a r , w h i c h was t o r e s u l t i n t h e t r a n s f e r o f German E a s t A f r i c a t o B r i t a i n ( T a n g a n y i k a ) a n d B e l g i u m ( R u a n d a - U r u n d i ) , e n d e d German p l a n s a n d m a r k e d t h e e n d o f t h e f i r s t e r a o f r a i l w a y d e v e l o p m e n t . 1920 - 1945 The s e c o n d e r a o f r a i l w a y d e v e l o p m e n t was b e g u n b y t h e r e c o n s t r u c t i o n o f t h e r a i l w a y l i n e s , e s p e c i a l l y t h e C e n t r a l L i n e w h i c h was d e s t r o y e d d u r i n g t h e German r e t r e a t . I n t h i s p e r i o d , r a i l w a y c o n s t r u c t i o n was m o s t l y i n t h e ^ I b i d . , p p . 201-202 . ^ G i l l m a n , C . , A S h o r t H i s t o r y o f T a n g a n y i k a R a i l w a y s : T a n g a n y i k a N o t e s and R e c o r d s , J u n e 1942 ( G o v e r n m e n t P r i n t e r , D a r - e s - S a l a a m ^ , p p . "2^"3"0. 11 f o r m o f e x t e n s i o n o f e x i s t i n g l i n e s . The T a h o r a - K a h a m a l i n e , -s t a r t e d "by t h e G e r m a n s , was e x t e n d e d t o Nwanza o n t h e s o u t h o f L a k e V i c t o r i a , f r o m F e b r u a r y 1925 t o A p r i l 1928. A t o t a l o f 236 m i l e s o f r a i l w a y l i n e s were b u i l t . The T a n g a l i n e was e x t e n d e d t o A r u s h a i n 1929 > a d i s t a n c e o f 55 m i l e s f r o m M o s h i . The o n l y new r a i l w a y l i n e b u i l t a t t h i s p e r i o d was t h e M a n y o n i - K i n y a n g i r i b r a n c h l i n e s t a r t e d i n 1930 a n d c o m -p l e t e d i n 1 9 3 3 . The l i n e was 93 m i l e s l o n g , - b r i n g i n g t h e t o t a l r a i l w a y m i l e a g e c o n s t r u c t e d i n t h i s p e r i o d t o 384. The M a n y o n i - K i n y a n g i r i r a i l w a y , h o w e v e r , p r o v e d t o be u n e c o n o m i c 7 a n d was r e m o v e d b e t w e e n 1944 a n d 1 9 4 7 . 1945 - 1961 A t o t a l o f 280 m i l e s o f r a i l w a y was b u i l t i n t h i s p e r i o d . The f i r s t 135 m i l e s o f r a i l w a y c o n s t r u c t i o n b e t w e e n 1946 a n d 1950 wa-s p r e c i p i t a t e d b y t h e d i s c o v e r y o f l e a d a t M p a n d a . The a r e a was l i n k e d t o t h e C e n t r a l l i n e a t K a l i v f a . The o t h e r 145 m i l e s o f r a i l w a y l i n e were a s s o c i a t e d w i t h t h e G r o u n d n u t Scheme. The scheme l e d t o t h e c o n s t r u c -t i o n o f t h e S o u t h e r n R a i l w a y a n d a new p o r t a t M t w a r a b e t w e e n 1948 a n d 1 9 5 4 . A f t e r t h e abandonment o f t h e G r o u n d n u t Scheme, t h e l i n e was n e v e r o p e r a t e d a t a p r o f i t . I t h a d t o be s u b s i -d i z e d b y t h e g o v e r n m e n t u n t i l i t was r e m o v e d i n 1962. A s h o r t e r l i n e f r o m t h e C e n t r a l l i n e t o K o n g w a , a l s o a s s o c i a t e d w i t h t h e s c h e m e , was r e m o v e d and r e p l a c e d b y a r o a d . ' I b i d . , p . 112. ( f o r d e t a i l s , see C h a p t e r I V , C a s e S t u d y H o . 2 ) . 12 An important feature of railway development i n 1948 was the amalgamation of the Tanganyika Railway system, t o -gether with that of Kenya-Uganda railway, to form the East A f r i c a Railways to he administered by the East A f r i c a High Commission. The s i g n i f i c a n c e of t h i s amalgamation w i l l be discussed i n d e t a i l l a t e r . But the move was described by the East A f r i c a Royal Commission i n 1953, as:. a most necessary f i r s t step i n the r a t i o n a l i z a t i o n of transport i n East A f r i c a , and i t i s very doubt-f u l whether without i t Tanganyika could have r a i s e d the loan c a p i t a l which has since been authorized f o r expenditure on the Tanganyika Section. 8 Since 1948, therefore, the railways of Tanganyika became part and p a r c e l of the East A f r i c a n Railway System. It ceased to be a r e s p o n s i b i l i t y of the Tanganyika government, although the government undertakes to guarantee loans on i n t e r n a t i o n a l markets borrowed by the East A f r i c a n Railways and Harbours Administration. 1961 to Present Between 1961 and 1965, a t o t a l of 141 miles of r a i l -ways have been b u i l t . The Ruvu-Knyusi Link Line, providing a l i n k between the Tanga and Central Lines, has a t o t a l length of 120 miles. The l i n e was begun i n I960 and opened to t r a f f i c i n August 1963. The other r a i l c onstruction i s the Mikumi-Kidatu extension into the Kilombero V a l l e y b u i l t . ^East A f r i c a Royal Commission 1953-1955 Report (London: H.M. Stationery^fTTceTTTJmd. 94^5, p. I24T" • !3 'between February 1963 and June 1965. This l i n e now forms part of the proposed Tanzania-Zambia Railway. Over h a l f of the investment to be spent on railway development during the Five Year Plan was f o r the Mikumi-Kidatu railway extension. The t o t a l expenditure during the plan p e r i o d , i n c l u d i n g funds c a r r i e d over from previous a l l o c a t i o n s , i s as follows: TABLE 1 F.Y.P. - 1964-69 PROPOSED RAILWAY EXPENDITURE Pro j e c t £'000 1. Completion and extension of railway £ 6,410 2. Moshi/Kalambweni c u t - o f f . . . . . . . . . . . . . . . 1,100 3- R.OHlIT££ S"fcOC3\.o oeocooooocooooeoocvoooooo 1,120 4. Tr a i n C o n t r o l , Hwanza/Tabora........... 22 Air-brake conversion. 115 6. B a l l a s t i n g , C e n t r a l Line 100 7 . 2,600 T o t a l £11,46? F.Y.P. - Five Year Plan. •^Tanganyika Five Year Plan f o r Economic and S o c i a l Development, 1st J u l y ? 1964 - 30th June, 1969 , p. 57 . 14 The railways b u i l t between 1896 and 1965 a^e shov;n on Map 1 . Table 2 summarizes the t o t a l number of railway track miles i n Tanzania at the end of 1966. TABLE 2 ' RAILWAY MILEAGE OF TRACK IN TANZANIA IN 1966, BY CLASSIFICATION I. Main Lines: Dar-es-Salaam - Kigoma Tanga - Moshi Mnyusi-Ruvu Link I I . P r i n c i p a l Lines: Tabora - Mwanza I I I . Minor Branch Lines: Moshi - Arusha K i l o s a - Hikumi - Kidatu Kaliwa - Mpanda Running Lines 779 . ;+8 218.68 117.06 255 .99 55.62 66.85 130.86 T o t a l Mileage of Single Track, i n c l . sidings 919.08 257 .72 119 .51 265.55 59 .02 74 .65 135.78 T o t a l 1,602.54 1,831.31 Source: East A f r i c a n Railway and Harbours Annual  Report 1966 (Nairobi, Kenya: Government P r i n t e r ) , Statement No. 14, p. 5 5 . 16 • B. The Development of Roads The development of roads was not as syste m a t i c a l l y c a r r i e d out during the German .colonial administration as was the case with the railways. V i r t u a l l y no important road development took place during the German administration.. The Germans concentrated t h e i r e f f o r t s on providing bridges, f e r r i e s and r e s t houses on important caravan routes, as we l l as s e t t l i n g s o l d i e r s on small holdings which supplied food to 10 t r a v e l l e r s . 1920 - 194-5 A f t e r the F i r s t World War, roads were made by improv-ing tracks made h u r r i e d l y to f a c i l i t a t e the movement of war supplies. Lack of funds made any extensive road programme impossible. Despite poor road standards, road t r a n s p o r t a t i o n began to assume importance and by 1938 long distance porterage had almost disappeared as buses and l o r r i e s became a f a m i l i a r 11 feature i n settlements and main roads. The e a r l i e s t major road improvement was undertaken on 12 the m i l i t a r y track between K i l o s a and Iringa. Unfortunately, t h i s road passed through a tsetse i n f e s t e d area, thus making a choice of another route necessary. In 1 9 2 7 , the f i r s t 1 0Harlow, V., C h i l v e r , E.M. , and Smith, A. (eds.), A H i s t o r y of East A f r i c a , V o l . I I (Oxford: Clarendon Press, 1965), p. 143. i : L I b i d . , pp. 625-626. 1 2 M o f f e t , I . P . (ed.), Handbook of Tanganyika 2nd E d i t i o n (Dar-es~Salaam: Government P r i n t e r , 1958), p. 92. 17 survey of the route, which was to form part of the Great North Road, was undertaken between Iringa and Mwenzo, and 13 from Dodoma to Arusha. In the same year, a d e c i s i o n was made 14 to b u i l d the Dar-es-Salaam - liorogoro Road. The construc-t i o n of the Great North Road was completed i n 1 9 3 2 . The t o t a l length of t h i s road i s more than 800 miles, and has remained, the most important road work ever to be b u i l t i n the tr a n s p o r t a t i o n h i s t o r y of Tanzania. I t s outstanding feature a r i s e s from the f a c t that both i t s sections, l y i n g north and south of the C e n t r a l l i n e , x-zere b u i l t through some of the most d i f f i c u l t (but also b e a u t i f u l ) high t e r r a i n associated with the Great R i f t V a l l e y . A number of roads were' also b u i l t to provid.e access to gold mining areas. The road from I t i g i to Chunya, some 15 2 5 0 miles i n length, was completed i n 1937« In 1 9 3 9 , a road was b u i l t to l i n k the Urwira g o l d f i e l d s with the r a i l -16 way at Uvinza. By t h i s period, a l l the important gold mining areas of the time — such as those i n the Musoma D i s t r i c t — 1 ^ I b i d . , p. 9 7 . Ibid. ^ I b i d . , p. 1 17 . " ^ P r o v i n c i a l Commissioners' Annual Report 1959 (Dar-es-Salaam: Government P r i n t e r ) , p. 1 0 0 . had been provided with reasonable road communications, some 17 of which were reported to be a l l weather roads. By 1936, a t o t a l of 13,928 miles of roads were 18 reported, c l a s s i f i e d as follows: TABLE 3 CLASSIFICATION OF ROADS, BY 1936 Class of Road Miles 213 D i s t r i c t Headquarters Ros.cis 000000 97 Main Roads............ > o o o o c o o o o e o 2,784 D i s t r i c t Roads, Grade -A. • 0 0 0 0 0 0 4 * 0 1,478 D i s t r i c t Roads, Grade 23 00000*000 9,356 T o t a l 13,928 By 1945 only a rudimentary road system had been developed, mostly on an ad hoc b a s i s . 1945 - 1961 A d e f i n i t e p o l i c y f o r road development came into force with the adoption of the f i r s t Development Plan i n 1946. A number of f a c t o r s had contributed to t h i s . F i r s t , 'Stockley, G.M., "Outline of the Geology of Musoaa D i s t r i c t : Being a Preliminary Geological Survey of Musoma Goldf i e l d s with the exception of the N i g o t i and Ilcoma Areas" , Geological Survey Dept., B u l l e t i n No. 7 ~ 1935 (Dar-es-Salaarn: Government P r i n t e r ) , p p « 3 -4-An Economic Survey of C o l o n i a l Empire, 1.9.3,6, C o l o n i a l Studies No. 149 (London: H.M. Stationery O f f i c e ) , p. 46. the f a i l u r e of the Hanyon-Kinyangiri railway l e d to the b e l i e f that road construction provided a l e s s expensive 1.9 method of opening up new areas f o r development. Second, with the t r a n s f e r of railways to the East A f r i c a n High Commission i n 1948, the r e s p o n s i b i l i t y of the Government i n providing communications was confined to road development. The main p o l i c y objective f o r road development was to provide a 20 country-wide "Low-Cost Road system. The aim was to develop a p a t t e r n i n the form of: a " g r i d " of trunk roads, four running from north to south, and three from east to west. To these trunk routes, main feeder roads must be provided, and to these l a t t e r d i s t r i c t feeder roads to the out l y i n g markets and productive areas. 21 There i s no explanation given i n the "Development Plan" f o r adopting the " g r i d " p a t t e r n of trunk routes, a l -though the World Bank Report a t t r i b u t e s i t to "the f a c t that the n a t u r a l flow of t r a f f i c c a r r y i n g the t e r r i t o r y ' s main ex-port crops and the bulk of the trade i n imported and l o c a l l y 22 produced goods i s along l a t e r a l routes". Thus, the road pa t t e r n was complementary to the railway system which runs from east to west. The North-South trunic routes were to ^Development Plan 1955-1960, C a p i t a l Works  Programme (Dar-es-Salaam: Government P r i n t e r , 1^55"), P» 12. 20 IBRD., The Economic Development of Tanganyika (Dar-es-Salaam: Government P r i n t e r , T^DO ), p. 155• 2 1Development Plan 1955-1960, op. c i t . , p. 13. 22 IBRD., op. c i t - , p. 155. 20 21 provide f o r movement i n a north-south d i r e c t i o n . The system also evolved as a r e s u l t of l i n k i n g roads which were already i n existence at the promulgation of the 1955-1960 "Development Plan". In f a c t , the major feature of road development at t h i s period was the improvement and upgrading of the e x i s t i n g roads, rather than the construction of new ones. Map 2 shows the proposed pattern of Trunk Roads under the above-mentioned, Plan. The proposed expenditure under t h i s Plan was a l l o c a t e d 23 as follows: TABLE 4 (a) PROPOSED EXPENDITURE UNDER 1955-1960 DEVELOPMENT PLAN 1 . Development of Natural Resources ....... £ 4 , 9 5 0 , 0 0 0 2 . Communication ... 7,4-70,000* 3 . Urban Development ...«..,.....„ 3*215,000 Q m ElGCtlC'lCX'ty ooo»«f>o*ooooo*oo»««oooeoeooo } 000 ^ 000 5 . S o c i a l Services 5 , 2 9 3 , 6 6 7 6 . P u b l i c Buildings ...... 1 , 9 5 0 , 0 0 0 7 « A f r i c a Housing 970 ,000 T o t a l £25,848 , 667 * Of the approximate s £ 7 » 5 m i l l i o n a l l o c a t e d f o r p r o v i s i o n of communications, roads accounted f o r over 50% of t h i s t o t a l , 24 which was to be spent as shown i n Table 4 (b) fol l o w i n g . ^Development Plan 1955-1960, op. c i t . , p. 4. 24 Ibid., p. 14. 22 TABLE 4 (b) PROPOSED EXPENDITURE UNDER 1955-1960 DEVELOPMENT PLAN - ROADS 1 . Trunk Routes £ 2 , 2 4 3 , 0 0 0 2. Feeder Roads ( i n c l . T e r r i t o r i a l main and l o c a l roads) .................. 1,289 ,000 3« Urban Roads ................ 0.. 588 ,000 4. Reserve f o r unforeseen roads ......... 150 ,000 T o t a l £ 4 , 2 7 0 , 0 0 0 Appendix A gives a d e t a i l e d a n a l y s i s on how much was to be spent on Trunk, Main and Local feeder roads during the plan period. By 1950, the country had a t o t a l number of 17 ,012 miles of c l a s s i f i e d roads. • This number was increased to 21 ,459 miles at the end of 1962. The t o t a l increase of T e r r i t o r i a l , Local and D i s t r i c t main roads between 1950-1962 was 4 , 183 miles. Within the three c l a s s e s , the greatest i n -crease was that of Loca l ( p r o v i n c i a l ) main roads. There was an increase of 3 ,194 miles of Local main roads, as compared to 722 miles of T e r r i t o r i a l roads and 167 miles of D i s t r i c t (feeder) roads. The high increase of Local main roads was l a r g e l y f o r administrative reasons rather than f o r encourag-ing a g r i c u l t u r a l development, i n view of the lack of feeder ( D i s t r i c t ) roads l i n k i n g them to the r u r a l areas. Table 5 , on the following page, summarizes the number of miles of roads b u i l t between 1950 and 1962. It i s of i n t e r e s t to note at t h i s stage that the p o l i c y of concentrating on the p r o v i s i o n of main roads at the expense 23 j TABLE 5 MILEAGE OF CLASSIFIED ROADS 1950 - 1963 Year Town-ship Roads Other Settle-ment Roads T e r r i -t o r i a l Main Roads Local Main Roads Dis t r i c t Roads Total 1950 338 87 3,039 3,055 10,493 17,012 1956 502 126 3,506 3,993 11,055 19,182 1957 490 135 3,517 4,319 10,934 19,395 1958 490 135 3,593 4,521 11,029 19,768 1959 490 138 3,588 4,781 11,033 20,030 I960 495 186 3,774 5,176 10,833 20,464 1962 486 203 3,861 6,249 10,660 21,459 1963 - - 4,005 6,105 -Sources The United Republic of Tanzania, S t a t i s t i c a l Abstract 196J. (Central S t a t i s t i c a l Bureau - Directorate of Development and Planning - 1965, Government Printer, Dar-es-Salaam), p. 61. 24 of feeder roads was pra i s e d by the World Bank Report: Up to the present, the Government's p o l i c y has been to b u i l d up the main road system to a l l weather standard, passable at a l l seasons, and to attend to feeder road improvement at a s t r i c t l y l i m i t e d s c a l e This was the r i g h t p o l i c y to s t a r t with; a feeder road could serve l i t t l e improvement u n t i l the main road could take i t s t r a f f i c . The a l t e r n a t i v e of providing a complete system of main and feeder roads area by area, would have prejudiced the economic development of important areas of the t e r r i t o r y and would have severely hampered administration. 25 1961 to Present Road development since independence i s f i r s t marked by a f u r t h e r change i n p o l i c y during the Three Year Plan 1961/62 - 1963/64. This Plan had three main ob j e c t i v e s , one of which, was the development of communications with -oarticu-26 l a r emphasis on providing feeder roads i n the r u r a l areas. The a l l o c a t i o n of the t o t a l c a p i t a l expenditure under the Plan is•shown on Table 14 (b), Page 70» Chapter I I I . Of the £ 6 . 9 m i l l i o n a l l o c a t e d f o r communications, power and works, about two-thirds of i t was f o r road develop-ment. Trunk roads were a l l o c a t e d £ 3.2 m i l l i o n as compared to 27 £ 9 5 0 , 0 0 0 f o r feeder roads. The r a t i o n a l e guiding these a l l o -cations i s discussed i n d e t a i l on page 7 1 . However, the -'IBRD. , op. c i t . , pp. 155-56 . Smith, H., Readings i n the Economic Development and Administration of TanzanTaQInstitute of P u b l i c Administra-tion,' t f n l v e r s i t y College; Dar-es-Salaam: Oxford U n i v e r s i t y Press, 1965), p. 349-Ibi d . , p. 54 . 25 extent to which the road programme under the Three Tear Plan could he implemented was l i m i t e d by the amount of finance a v a i l a b l e . Not a l l the money needed to accomplish the road programme under the Plan was obtained. This has- necessitated the carrying forward of road programmes of the Three Year Pl a n to be included i n the present Five Year Plan, (see Appendix B) Under the Five Year Plan, the p o l i c y proposed f o r road development i s s t i l l that of providing a country-wide 2 8 "Low-Cost Road". The four objectives set out i n the plan 29 are: a) The trunk and major link.roads w i l l be developed as necessary to meet t r a f f i c requirements. b) Major feed.er roads w i l l be improved, or constructed to provide f o r the economic transport of an ever-increasing quantity of produce and other goods. c) Minor feeder roads w i l l be improved or constructed to provide s a t i s f a c t o r y access to developing areas. d) To ensure the economic soundness of each major p r o j e c t , preliminary f e a s i b i l i t y studies w i l l be undertaken as required. Objectives (b) and (c) of the Plan shoiild be commended since they r e f l e c t the government's i n t e n t i o n to provide economic transport to the peasant farmer, as w e l l as access Five Year Plan, op. c i t . , p* 53 • 2 9 I b i d . . , p. 54 . 26 to areas with growth p o t e n t i a l — two f a c t o r s overlooked i n past road planning programmes. The expenditure under the Five Year Plan on d i f f e r e n t roads i n the country i s as follows: TABLE 6 FIVE YEAR PLAN - I 9 6 4 A 9 6 9 . . PROPOSED EXPENDITURE ON ROADS Roads P r o v i s i o n 1. Great North Route £ v 98,500 2. Western Trunk Route 1,000,000 3. Eastern Trunk Route 928,000 4. Central Trunk Route 2 3 1 , 9 0 0 5. Northern Trunk Route l j 1 7 3 , 3 7 5 6. Southern Trunk Route 2 5 7 , 0 0 0 T o t a l s - Trunk Routes £ 3,688,775 7. Major Link Roads 1,515,625 T o t a l - Trunk & Major Link Roads £ 5,204,400 8. Major Feeder Roads £ 4,890,600 9. Minor Feeder Roads 9 3 5 , 0 0 0 T o t a l Feeder Roads £ 5,825,600 1 0 . Miscellaneous £ 7 7 0 , 0 0 0 Grand T o t a l £11,800,000 The t o t a l expenditure envisaged during the Plan period i s approximately £ 2 2 . 9 m i l l i o n , of which £ 2 . 1 m i l l i o n i s a 30 carry-over from the Three Year Plan. Appendix B gives the Ib i d . , p. 5 5 . 28 phasing of expenditure on the d i f f e r e n t roads. Map 3 shows the actual Five Year road development programme. Road Maintenance and Construction Costs On the whole, the p h y s i c a l geography of Tanzania does not provide a very d i f f i c u l t t e r r a i n f o r road construction. Highland areas are confined to p e r i p h e r a l areas and, i n par-t i c u l a r , to the southern part of the country. The only other p h y s i c a l obstacles worthy of mention are the R i f t V a l l e y and Swamp areas of the Malagarasi and R u f i j i River Basins.. Because the country lacks s u i t a b l e road b u i l d i n g materials (e.g., "murrum" gravel found i n Uganda), i t i s dependent upon imported ones, e s p e c i a l l y f o r b u i l d i n g hard surface roads. But p r i c e s of construction materials have been r i s i n g , and hence construction costs. At present market prices,, construc-31 t i o n costs f o r d i f f e r e n t types of surfaces are: TABLE 7 ' ROAD CONSTRUCTION COSTS Pavement _Tj^es T e r r a i n Cost per Mile - £ Bitumen Bitumen Gravel Gravel P l a t & r o l l i n g country H i l l y country P l a t & r o l l i n g country H i l l y country 10 - 15 ,000 13 - 25 ,000 3 - 10 ,000 10 - 20 ,000 J Personal L e t t e r from the M i n i s t r y of Communications, Labour and Works, The United Republic of Tanzania. Ref. TtTo. CW.44019/72. August 12 , 1967. Most of the roads i n Tanzania are of earth surfaces. Of the t o t a l 9 ,727 miles of roads maintained by the Central Government i n 1962, only 871 miles were of bitumen surface. Gravel surface accounted f o r 1 ,556 miles and the remaining 7 ,398 miles were of earth surface. The standard of roads i n Tanzania has been very much conditioned by the low standards of roads i n i t i a l l y provided. These are u s u a l l y badly destroyed by heavy r a i n s i n the wet season. With the r a p i d increase i n volume of t r a f f i c and use of heavier v e h i c l e s , road conditions d e t e r i o r a t e d very f a s t , causing increased maintenance expenditure. Maintenance costs 32 have increased from under £-281,000 i n 1951 to £ 1 . 5 m i l l i o n 33 i n 1963/64. The average annual cost of maintenance of d i f f e r -34 ent pavement types now i s : TABLE 8 ROAD MAINTENANCE COSTS TypTof Road ~~ Cost perl^iTe" . per year - £ Bitumen ................ 450 Engineered Gravel ..... 220 Earth/Gravel 1 2 0 - 1 4 0 y Tanganyika Government, S t a t i s t i c a l Abstract 1959 (Dar-es-Salaam: Government Printer.), p. 102. ~ •'-'Statistical Abstract 1964, op. c i t . , p. 111. Personal L e t t e r , Ref . CW. 44019/72, OP. c i t . 3 0 The low standard of roads has r e s t r i c t e d v e h i c l e speed, while operating costs have tended to be high on the earth roads, depending on the si z e of the v e h i c l e . Operat-ing speed on d i f f e r e n t road surfaces given i n the Tanzania-3 3 Zambia Highway study are: TABLE 9 OPERATING SPEEDS FOR VEHICLES R o a d C I a s s i f i c a t i o n Type of Vehicle Bitumen Engin-eered Gravel Improved Earth Unimproved Earth Cars & Land-rovers 5 0 40 3 5 < 3 5 Trucks and Buses 4 5 3 5 3 0 < 3 0 R e l i a b l e f i g u r e s on v e h i c l e operating costs on a country-wide basis do not e x i s t . But just to give an idea on how these vary with road standards and t e r r a i n , operating costs f o r East A f r i c a n Railway Road Services i n the southern part of the country have been quoted. These have declined from 1/86 s. ( s h i l l i n g ) * i n I960 to 1/63 s. i n 1963, per 36 v e h i c l e mile, a reduction of about 12%. Most of the roads *^AID., Tanzania-Zambia Highway Study (Stanford Research I n s t i t u t e , VT$6), AID 3/00702"9?l, p. 56. •''^Personal L e t t e r from the A s s i s t a n t General Manager's O f f i c e , East A f r i c a n Railway and Harbours, Dar-es-Salaam, Tanzania. Ref. No. ACM48, October 10, 1967. * 1 East. A f r i c a n s h i l l i n g equals approx. t h i r t y Canadian cents. 31 32 i n t h i s part of the country are of s t a b i l i z e d earth standard. The reduction i n operating costs i s due to the tremendous improvements done on the Great North Road between Morogoro and Iringa, and on sections passing through d i f f i c u l t t e r r a i n , a l l . o f which have been brought up to engineered gravel or bitumen standard. The volume of t r a f f i c on the main roads i s s t i l l low. As Map 4- i n d i c a t e s , i n 1962 the number of v e h i c l e s , per day, on most roads was s t i l l l e s s than 3 0 0 , except near or between urban centres where, i n some places, the number exceeded 5 0 0 . The growth of t r a f f i c volumes on selected road sections and junctions i s shown on Figure 2. Thus, road t r a n s p o r t a t i o n has been growing i n importance. This i s f u r t h e r r e f l e c t e d i n the steady increase i n number of motor v e h i c l e s shown i n Table 10 on the following page. The greatest increase has been i n p r i v a t e v e h i c l e s and, i n p a r t i c u l a r , automobiles. The other reason f o r the predominance of p r i v a t e motor v e h i c l e s i s due to the l i c e n s i n g system, by which p r i v a t e commercial v e h i c l e s are r e g i s t e r e d under "C" l i c e n c e . But i t should be noted from the Table, too, that the government owns the second l a r g e s t number of v e h i c l e s . 0. Organization of R a i l and Road Transportation In East A f r i c a (Tanzania, Kenya, Uganda), railways are oxmed by the "East A f r i c a n P u b l i c " and organized as one of the self-contained services within the East A f r i c a n Common J., F i g u r e ' 1 : Volume of T r a f f i c on Selected Road-Sections & Junctions ' v 33 hWii: vovu«i Of tunic cw »uicttp to*o ;nciiom «wo JUwc?iom • c a v a 4 DOOOMA m 9aM5TM09to*JUt5*f i^iitr.tAii.iii^iVa-.iiit:firttt 1 !ON«M • A*UtM* Off • »T»«« f|t»T.-. «a»33 3fe 51 5» 59 60 61 62 65 »34 » 5fc 5T 3» 59 60 61 W. fcS *»4 » 3fc 37 3» 39 W  felt* 64 f»4»»*7M5>a>6t 6265 64 B«a5 3«67 0859 60fol 6*65&< tR9| 35 3fc5? 5* » 60616165 li.il IM * t A IS jSouree: M i n i s t r y of Communications, Labour & Works, T r a f f i c Census Records, i Drawing;No.'s 5355/R/^L-/HO.(1965 & 1966) 34 S e r v i c e s O r g a n i z a t i o n s . Thus, the Railway A d m i n i s t r a t i o n i s a p u b l i c c o r p o r a t i o n r e s p o n s i b l e t o a l l of the three East A f r i c a n governments. I n c o n t r a s t , road o p e r a t i o n s are organ-i z e d on a p r i v a t e b a s i s , e i t h e r by i n d i v i d u a l s or busi n e s s f i r m s . The Railway A d m i n i s t r a t i o n a l s o operates bus and t r u c k i n g s e r v i c e s i n the Southern p a r t of Tanzania. The r a p i d groirbh i n volume of motor v e h i c l e s l e d t o e a r l y concern about r a i l / r o a d c o m p e t i t i o n . T h i s concern was accentuated by the poor performance of r a i l w a y s , which operated at a l o s s . Thus, by.1931> l e g i s l a t i o n was passed t o c o n t r o l road t r a n s p o r t . I n t h a t y e a r , the "Ca r r i a g e of Goods by Motor ( C o n t r o l ) Ordinance" was passed. I t sought by means of h i g h p r i c e d l i c e n c e s t o a f f o r d some measure of comoensation t o the government r e s u l t i n g from l o s s of revenue 37 by r a i l w a y and, a l s o , t o discourage c o m p e t i t i o n . The o r d i n -ance was not e f f e c t i v e . I t was re p e a l e d i n 1934, and r e -p l a c e d by the "Car r i a g e of Goods by Motor ( P r o h i b i t i o n ) Ordinance 1934", which was designed to p r o h i b i t c o m p e t i t i o n of 38 motor t r a f f i c w i t h the r a i l w a y on c e r t a i n scheduled roads. *Since 1961, f o l l o w i n g the achievement of Independ-ence by a l l the East A f r i c a n c o u n t r i e s , the E.A. High Commission was r e p l a c e d by the E.A. Common S e r v i c e s Organiza-t i o n , r e s p o n s i b l e f o r r a i l w a y s and harbours, telecommunica-t i o n s , a i r w a y s , customs and e x c i s e and income t a x , t o mention but a few examples. R e c e n t l y the E.A. Common S e r v i c e s Organ-i z a t i o n has been r e p l a c e d by the E.A. Community, w i t h the Railway now separated from the Harbours forming one of the P u b l i c C o r p o r a t i o n s . 37An Economic Survey of the C o l o n i a l Empire 1933, C o l o n i a l flbTTc^ l L o n d o n T ~ T O T r ^ a t i o n ^ ^ #4. ^ I b i d . TABLE 10: THE GROWTH OF LICENCED MOTOR VEHICLES 1953 - 1963 1953 1954. 1955 1956 1957 1958 1959 I960 1961 1962 1963 Private (Licence) Motor Vehicles 19,000 22,000 24,316 26,205 29,675 32,057 35,046 37,046 38,893 41,526 45,620 Government Motor . Vehicles 1,680 1,817 1,986 2,231 2,215 2,546 2,613 2,742 3,151 3,406 3,631 Total 20,680 23,817 26,302 28,436 31,890 34,603 37,659 39,788 42,044 44,932 49,251 Total - a l l types of Vehicles* 20,809 23,928 26,421 28,545 32,019 34,712 38,527 39,968 - - ,_491674 Sources: (a) Tanganyika: S t a t i s t i c a l Abstract 1959 (Government Printer, Dar-es-Salaam), p. 55. (b) United Republic of Tanzania: S t a t i s t i c a l Abstract 1964 (Central S t a t i s t i c a l Bureau: Directorate of Development and Planning, 1965, Government Printer, Dar-es-Salaam), p. 60 tt cars, landrovers, light vans, trucks and heavy t r a i l e r s , tankers, motorcycles and scooters, etc. 36 A f t e r the Second World War, road r e s t r i c t i o n was continued through the mechanism of l i c e n s i n g . The reasons f o r c o n t r o l 39 were: - • (1) to discourage competition within the industry; (2) to safeguard the m i s a l l o c a t i o n of resources f o r r e s t r i c t i n g free entry i n t o the industry by unsuccessful operators; (3 ) to enable the p r o v i s i o n of a b e t t e r organization of the industry; (4) to l i m i t competition with other modes — e s p e c i a l l y railways. In the I960's, road r e s t r i c t i o n was not s t r i c t l y en-forced, although the p o l i c y t o o l s f o r doing so were there. However, r a i l / r o a d competition i s s t i l l causing concern, though not from the government c i r c l e s t h i s time but the 40 Railway Administration, and was a subject of a recent study. Present government a t t i t u d e on the issue seems to favour the encouragement of road t r a n s p o r t a t i o n , e s p e c i a l l y by A f r i c a n operators, organized on a co-operative b a s i s . There i s no l e g i s l a t i o n l i m i t i n g the movement of goods along routes running p a r a l l e l with the railway. The formation of a Tanzania National Co-Operative Transport Company i s f u r t h e r r e f l e c t i o n of government i n t e n t i o n to encourage road trans-p o r t a t i o n . (This experiment, however, has proved a f a i l u r e ^Hawkins, op^^cijt^, pp. 136-139 . azelwood, A., R a i l and Road i n East A f r i c a : Transport Coordination i n Under-d'eveloped Countries XOxford, B a s i l BlackwiTT^ 1964). because the company went bankrupt — but i t i s s t i l l the declared p o l i c y of the government to e s t a b l i s h a new National Transport Company, once the causes which l e d to the f a i l u r e have been i n v e s t i g a t e d ) . In the Five Year Plan, a p r o v i s i o n of £300,000 has been a l l o c a t e d to provide c r e d i t to purchase v e h i c l e s by 42 transport co-operatives. D„ The Transportation Problem of Tanzania A f t e r the h i s t o r i c a l n a r r a t i v e of the evolution of railway and road t r a n s p o r t a t i o n , the question to be answered i s whether .there i s a t r a n s p o r t a t i o n problem i n Tanzania. How serious i s i t and which components c o n s t i t u t e the major problem i n the system? In 1961, the Ivor Id Bank Report held the view that lack of transportation f a c i l i t i e s as an impediment to econ-43 omic development was exaggerated. I t appears the World Bank Report confined the t r a n s p o r t a t i o n problem to f a c i l i t i e s i n terms of miles of roads and railways. To appreciate the problem, and. to measure i t s si z e i n terms of present and future needs f o r economic development, the e n t i r e system must be examined: t e c h n i c a l l y , e.g., a l l the elements i n the system, the way, v e h i c l e and motive power; a d m i n i s t r a t i v e l y , 42 Five Year Plan, o p . c i t . , p. 55. 4* •'IBRD., op. c i t . p. 135. 38 from the point of view of organization of the i n d i v i d u a l modes as well as t h e i r co-ordination; and, l a s t l y , the s p a t i a l operation of each mode. In assessing the problem, the views of shippers suggest where the problem l i e s . One view i s that of the L i n t and Seed Marketing Board and hence tr a n s p o r t a t i o n r e -quirements of the cotton industry of Tanzania. Up to 1962, i t was not p o s s i b l e to move a l l the cotton grown i n the Lake Regions of Tanzania along the C e n t r a l Line and export i t v i a Dar-es-Salaam. Part of the crop had to be moved v i a Kisumu and along Kenya-Uganda railway to Mombasa f o r export. The reasons f o r d i v e r t i n g part of the t r a f f i c was due to lack of s u f f i c i e n t wagons along the C e n t r a l Line. The construction of the Ruvu-Mnynsi Link Line was, therefore, a necesary improvement i n the East A f r i c a n Railway System, because i t enabled the t r a n s f e r of wagons from Kenya-Uganda-Tanga Lines 44 45 to the Central Line. This objective has been f u l f i l l e d . But i t i s s t i l l not possible to move a l l the cotton crop from the Lake Region along the C e n t r a l Line. It i s not implied here that a l l the cotton from the Lake Region should be moved along the Central Line, However, t h i s i s p r e f e r r e d by the L i n t and Seed Marketing Board as i t w i l l save them the problem 44 The L i n t and Seed Marketing Board: Report and Accounts f o r the Year ended ^Oth J u n e , 1962 (Printed by Tanganyika Standard, Dar-es-SalaamJT"]?. !?• ^ L e t t e r , Ref. No. ACM4S, op. c i t . of paying f o r storage f a c i l i t i e s i n Mombasa by u s i n g t h e i r own at Dar-es-Salaam harbour. The d i v e r s i o n of not o n l y c o t t o n but other t r a f f i c , t o o , t o the Kenya-Uganda L i n e , thereby easing c o n g e s t i o n along the C e n t r a l L i n e , does not r e l i e v e the i n c r e a s e d cost of shipment of c o t t o n by the L i n t and Seed Marketing Board due t o storage charges at Mombasa. A g r i c u l t u r a l p r o d u c t i o n seems to have grown f a s t e r than a n t i c i p a t e d , making the a v a i l a b l e stock of wagons i n -s u f f i c i e n t , . T h i s has combined w i t h l a c k of storage f a c i l i -t i e s at Dar-es-Salaam harbour to aggravate the s i t u a t i o n . Because of l a c k of storage f a c i l i t i e s , p a r t of the a l r e a d y inadequate supply of wagons are delayed at the wharf a w a i t i n g 46 d i r e c t l o a d i n g on t o the ship.. Congestion along the C e n t r a l L i n e i s another problem. 47 I t i s a t t r i b u t e d t o i n s u f f i c i e n t motive power. Improvement of motive power on the C e n t r a l L i n e has been slow compared to the Kenya-Uganda L i n e . The l a t t e r l i n e i s g i v e n p r i o r i t y because i t f o l l o w s a route w i t h a d i f f i c u l t t e r r a i n , i n some pl a c e s r e a c h i n g an a l t i t u d e of 9,000 f e e t . I n c o n t r a s t , the o n l y d i f f i c u l t s e c t i o n along the C e n t r a l L i n e i s Saranda, which i s h a r d l y 5,000 f e e t h i g h . The other reason i s the volume of t r a f f i c . The Kenya-Uganda. L i n e has a h i g h e r l e v e l ^ ^ P e r s o n a l L e t t e r from the L i n t and Seed Marketing Board, Dar-es-Salaam, Tanzania, Ref. 105, V o l . V (51), Sept. 25, 1967. ^ L e t t e r Ref. No. ACM48, op. c i t . 40 of t r a f f i c than, the C e n t r a l L i n e because of the predominant use of Mombasa harbour f o r both export and import t r a f f i c of East A f r i c a as a whole. The f i r s t schemes of d i e s e l i z a t i o n of the East A f r i c a n Railway System was c o n f i n e d t o the Kenya-Uganda L i n e , and was due t o be i n t r o d u c e d on the C e n t r a l L i n e between Dar-es-Salaam 48 and Morogoro. Congestion, as w e l l as the disadvantages assoc-iated, w i t h u s i n g a mixture of steam and d.iesel engines, might have t o be t o l e r a t e d d u r i n g the P l a n p e r i o d , s i n c e the improve-ment w i l l take some time because i t i n v o l v e s not o n l y the o r d e r i n g of more locomotives but r e p l a c i n g e x i s t i n g r a i l w a y t r a c k w i t h h e a v i e r r a i l s . The main problem i n ' road t r a n s p o r t a t i o n i s the absence of f e e d e r roads due t o p a s t p o l i c i e s of c o n c e n t r a t i n g on b u i l d i n g trunk roads. T h e r e f o r e , the present road system does not p r o v i d e e f f i c i e n t l i n k s t o the mainstay of the r u r a l p o p u l a t i o n and the s u b s i s t e n c e economy of Tanzania. The poor standard, of roads i s another problem. The p o l i c y of c o n s t r u c t i n g "Country-Wide Low-Cost Roads" , d e s c r i b e d by the World Bank as d e f e n s i v e , was t o p r o v i d e , i n the m a j o r i t y of cases, poor roads which i n the r a i n y season became impassable thereby c u t t i n g o f f r u r a l s e t t l e m e n t s from urban and main supply c e n t r e s . Next i s the problem of o r g a n i z i n g and c o - o r d i n a t i n g (E.A.R. & H.) Annual Report, I9S7> op. c i t . , p. 17. 41 r a i l and road t r a n s p o r t . The problem t o be r e s o l v e d i n p o l i c y f o r m u l a t i o n as regards the two modes, i s : (1) t o m a i n t a i n the p r i n c i p l e s under which the r a i l w a y w i l l continue t o p r o v i d e cheap means of t r a n s p o r t , as w e l l as r e c e i v i n g s u f f i c i e n t revenue f o r operat-i n g and, m a i n t a i n i n g the system; (2) t o encourage an o r d e r l y development of road t r a n s -p o r t a t i o n which does not c o n s t i t u t e a t h r e a t t o the economical o p e r a t i o n of the r a i l w a y s . I t i s here t h a t the -problem of making the. two modes complement — r a t h e r than compete -— becomes s i g n i f i c a n t . As f a r as the d i f f e r e n t modes of t r a n s p o r t a t i o n ( r a i l , road and i n l a n d waterways) i n Tanzania are concerned, i n most cases they are complementary r a t h e r than c o m p e t i t i v e . Both export and import t r a f f i c move by r a i l or road; at one time or another, before r e a c h i n g t h e i r d e s t i n a t i o n . The World Bank 49 emphasized the need t o s t r e n g t h e n t h i s f e a t u r e i n the system. The t r a n s p o r t a t i o n problem of Tanzania i s v a r i e d . I t ranges from the need t o modernize the r a i l w a y s by improving motive power, the inadequacy of wagons, c o n g e s t i o n on the C e n t r a l L i n e d u r i n g the crop season, and l a c k of storage f a c i l t i e s at the p o r t s ; t o substandard roads, l a c k of a w e l l developed feeder roads system, and o r g a n i z a t i o n of r a i l and road t r a n s p o r t t o ensure economic o p e r a t i o n s and e f f i c i e n t use of l i m i t e d f a c i l i t i e s and equipment t o meet the demand of r i s i n g t r a f f i c . .^IBRD. , op. c i t . , p. 153-CHAPTER I I I RAIL AND ROAD COMMUNICATIONS AND ECONOMIC GROWTH A b r i e f examination of the r o l e t r a n s p o r t a t i o n has pla y e d i n the economic growth i n other p a r t s of the worl d w i l l p r o vide a g e n e r a l framework upon which the achievement of Tanzania may be compared. The U n i t e d S t a t e s and I n d i a have been s e l e c t e d f o r i l l u s t r a t i o n purposes. Railways and Economic Growth Tn the"TJnited S t a t e s I t was p o i n t e d out e a r l i e r r e g a r d i n g the viex^ t h a t r a i l w a y s were r e s p o n s i b l e f o r opening up new l a n d i n the 1 2 west was not w h o l l y t r u e . P o g e l has shown i n another study t h a t r a i l r o a d s were not the cheapest means of t r a n s p o r t a t i o n as compared t o water t r a n s p o r t , which had preceeded r a i l w a y development. The o n l y advantage r a i l r o a d s had over r i v e r t r a n s p o r t i s t h a t they e l i m i n a t e d wagon haulage and hence i t s c o s t . Thus he concludes: I t i s v e r y l i k e l y t h a t even i n the absence of r a i l -roads the p r a i r i e s would have been s e t t l e d and ex-p l o i t e d . Cheap t r a n s p o r t a t i o n r a t h e r than r a i l r o a d s ^ u p r a , p. 5. 2 Po g e l , R.W., R a i l r o a d s and American Economic Growth: Essay i n Economic E T s t o r y ( B a l t i m o r e , John Hopkins Press', 1964), p. 214. 43 was the necessary c o n d i t i o n f o r the emergence of the Worth C e n t r a l S t a t e s as the granary of the N a t i o n . The r a i l r o a d was undoubtedly the most e f f i c i e n t form of t r a n s p o r t a t i o n a v a i l a b l e t o the farmers of the n a t i o n . But the combination of wagon and water t r a n s -p o r t a t i o n c o u l d have p r o v i d e d a r e l a t i v e l y good sub-s t i t u t e f o r the f a b l e d i r o n horse. 3 The r o l e of r a i l w a y s i n the economic growth of the U n i t e d S t a t e s cannot be c o n f i n e d t o the examination of the l e v e l of s e r v i c e alone. I t must be extended to the opportun-i t y they o f f e r e d on the growth of the i r o n and s t e e l i n d u s t r y and f u e l s , such as c o a l and o i l , by p r o v i d i n g a ready and ex-panding market. Between 1840 and 1860 a l o n e , consumption of i r o n and s t e e l by r a i l r o a d s rose from 4 .3 t o 25.2 thousand t o n s , r e s p e c t i v e l y . Such.were the i n d i r e c t b e n e f i t s from r a i l w a y b u i l d i n g . The development of the r a i l w a y i n the U n i t e d S t a t e s d i d not depend on imports f o r b u i l d i n g m a t e r i a l s and r o l l i n g s'tock. R a i l w a y s , i n a d d i t i o n t o p r o v i d i n g an e f f i c i e n t t r a n s p o r t system, opened new o p p o r t u n i t i e s f o r ex-p l o i t i n g the country's n a t u r a l resources and hence economic expansion and d i v e r s i f i c a t i o n . Railways and Economic Growth I n i I n d i a There are two schools of thought on the p a r t p l a y e d 4 by r a i l w a y s i n the e a r l y economic growth of I n d i a . One ^ I b i d . , p. 219. 4 Anstoy, V., The Economic Development of I n d i a (Longmans, Green and *<Toiirpany, P5T6; 3rd editionJ7~ppr~l3 3 -144. 44 s c h o o l of thought condemns the development of the r a i l w a y s f o r having d i s r u p t e d the indeginous cottage i n d u s t r i e s and. r e p l a c i n g them w i t h the f a c t o r y system, Railways p r o v i d e d access of B r i t i s h goods t o the I n d i a n market, and i n so doing making i t d i f f i c u l t f o r the craftsmen t o compete p r o f i t a b l y . . The other school of thought sees n o t h i n g wrong i n the d i s r u p t i o n of the indeginous I n d i a n socio-economic o r g a n i z a -t i o n ; s i n c e t h i s was compensated by l i n k i n g the country t o the r e s t of the w o r l d . I t p r o v i d e d an e f f e c t i v e system t o d e a l w i t h the famine problem, by l i n k i n g v i l l a g e s and i n c r e a s -i n g contact between people and p l a c e s . While perhaps the former school of thought has a case t o prove a g a i n s t r a i l w a y development, i t i s l o g i c a l t o concur w i t h the l a t t e r view. The i s s u e to be examined, t h e r e f o r e , i s t o what degree d i d r a i l w a y development b e n e f i t I n d i a and not the m e t r o p o l i t a n power which r u l e d her at t h a t time? The volume of trade which developed and which was o r i e n t e d towards B r i t a i n , minimized the b e n e f i t s which would otherwise have accrued had the r a i l w a y s t i m u l a t e d markets f o r the development of i n t e r n a l resources of I n d i a . As Lansing arguesz "...the I m p e r i a l Government i n the c o n s t r u c t i o n of r a i l w a y s i n I n d i a i n the 19th century d i d not seek p r i m a r i l y the economic development of the country. . . ."In the d e t a i l s of the p l a n n i n g and o p e r a t i o n of the system other c o n s i d e r a t i o n s were paramount." 5 The economic p o l i c y which shaped the t r a n s p o r t a t i o n 5 ^ L a n s i n g , J.B, , T r a n s p o r t a t i o n and Ecjono_mic_ P o l i c y , (The Free F r e e s , New York: . 196*6T7 p. 136T™" 4-5 system of I n d i a served o u t s i d e i n t e r e s t s — u n l i k e t h a t of the U n i t e d S t a t e s , which was geared towards opening up new areas and s t i m u l a t i n g economic growth from w i t h i n . Defence 6 c o n s i d e r a t i o n s , f o r example, over-shadowed economic ones. Where economic f a c t o r s counted, these were designed t o main-t a i n the r o l e of I n d i a as an e x p o r t e r of raw m a t e r i a l s and 7 importer of manufactured, goods. Thus, the l i n k i n g of p o r t s t o the i n t e r i o r areas was g i v e n more pref e r e n c e than i n t e r n a l t r a n s p o r t a t i o n f a c i l i t i e s . These few examples are intended t o show t h a t the de f a c t o p o l i t i c a l s t a t u s of I n d i a i n the 19th Century and f i r s t h a l f of the 20th Century, made the economic e f f e c t s of r a i l -way development not e n t i r e l y b e n e f i c i a l t o her. i n'thjySconomic Growth of Tanzania I n t r o d u c t i o n The examination of the p a r t p l a y e d by r a i l and road communication v i s - a - v i s o t h e r f a c t o r s a f f e c t i n g the economic growth of Tanzania has been broken up i n f o u r p e r i o d s : 1904-1919, 1920-1948, 1949-1960, ana 1961-64. The l a s t y e a r s of these p e r i o d s mark times (except f o r the l a s t p e r i o d ) when s i g n i f i c a n t changes o c c u r r e d , which i n f l u e n c e d the Saxena, K.K., I n d i a n Railways - Problems^and P r o s -p e c t s (Vora & Co., P u b l i s h e r s , PVT^iiimJ.ted, Bombay, IndTaJ, P . 6. rp ' I b i d . 46 t r a n s p o r t and economic development; namely, the t r a n s f e r of the country from German to B r i t i s h A d m i n i s t r a t i o n , Tanganyika Railways to East A f r i c a n Railway A d m i n i s t r a t i o n . The l a s t p e r i o d (1961-1964) r e p r e s e n t s the f i r s t f o u r years of Tanzania Independence. 1904-1919 E a r l y r a i l w a y "building i n Tanzania has "been a t t r i b -u ted to s t r a t e g i c reasons. While the r a i l w a y s d i d f u l f i l t h i s o b j e c t i v e , commercial motives were a l s o paramount. "P e a c e f u l p e n e t r a t i o n through c o m p e t i t i v e development and 8 capture of t r a f f i c " f e a t u r e d more as a s t i m u l u s t o r a i l w a y development than s t r a t e g y . L i k e many other c o l o n i a l powers of the time, Germany needed c o l o n i e s as sources of raw m a t e r i a l s f o r her domestic i n d u s t r i e s and markets f o r manu-f a c t u r e d good.s. Railways were b u i l t t o meet t h i s requirement. German p o l i c y i n Tanzania was geared on d e v e l o p i n g p l a n t a t i o n a g r i c u l t u r e i n the areas where the Tanga L i n e was to be c o n s t r u c t e d ; based on rubber, c o t t o n , c o f f e e and s i s a l . Much r e s e a r c h was c a r r i e d out — what one h i s t o r i a n has 9 d e s c r i b e d as "the Age of S c i e n t i f i c C o l o n i z a t i o n " — t o f i n d out what crops were s u i t e d t o the environmental c o n d i t i o n s of the country. G i l l m a n , op. c i t . , p. 15-q ^ E b e r l i e , op. c i t . , p. 11. 4-7 Coffee p l a n t a t i o n s were u n s u c c e s s f u l as compared t o n a t i v e grown c o f f e e i n Bukoba, which accounted f o r the g r e a t e r p a r t of the export of t h i s commodity, Favourable p r i c e s i n the w o r l d market l e d t o r a p i d ' e x p a n s i o n of rubber on a p l a n -t a t i o n b a s i s . However, the sudden f a l l i n rubber p r i c e s , d u e t o o v e r - p r o d u c t i o n i n Southeast A s i a , doomed the rubber i n d u s t r y and r e s u l t e d i n most of the rubber e s t a t e s b e i n g converted i n t o s i s a l p l a n t a t i o n s . From t h i s d ate, s i s a l grew i n importance and became the dominant export crop i n the economy of the country. The success of p l a n t a t i o n a g r i c u l t u r e a l s o depended on the a v a i l a b i l i t y of l a b o u r . T h i s problem was s o l v e d by r e s o r t i n g t o compulsory l a b o u r — the s o - c a l l e d " W i l h e l m s t a l 10 System" — by which A f r i c a n s had a choice of e i t h e r working on a p l a n t a t i o n or on a p u b l i c works programme one month out of every f o u r . Attempts t o grow c o t t o n on a- p l a n t a t i o n b a s i s were u n s u c c e s s f u l . A f r i c a n s agreed t o grow i t when the government guaranteed a minimum p r i c e h i g h e r than the wor l d p r i c e , which 11 had dropped i n 1908. The present "Cotton B e l t " i n the Lake Regions, d u r i n g t h i s p e r i o d , was not a b l e f o r peanut produc-t i o n and exported v i a Mombasa along the Kenya-Uganda Railway. Harlow, op_«_.c.it^ , p. 189. •Ibid. , p. 144. 48 Between 1906 and 1912, export and import t r a d e i n -creased as shown below. The import trad,e was accounted f o r by r a i l w a y c o n s t r u c t i o n m a t e r i a l , requirements f o r c i v i l a d m i n i s t r a t i o n and p l a n t a t i o n s . ~ TABLE 11 1906-1912: EXPANSION OF TRADE OF GERMAN.EAST AFRICA 1906 1907 1908 1909 1910 1911 1912 Exports 52.2 23.8 25.8 33.9 38.7 45.9 50.3 Imports 11.0 12.5 1.0.9 13.1 20.8 22.4 310 4 T o t a l 63.2 36.3 36.7 47.0 59-5 68.3 81.7 ( i n m i l l i o n marks) Source: Harlow, V. and o t h e r s , H i s t o r y of East A f r i c a , (Oxford: Clarendon P r e s s , 196TT7~lX7~'i53. The Germans l a i d the f o u n d a t i o n f o r the be g i n n i n g of a modern economy i n Tanzania, i n which p l a n t a t i o n a g r i c u l -ture, p layed a l e a d i n g r o l e . G i l l m a n concludes, i n r e s p e c t t o the Tanga L i n e , t h a t the r a i l w a y was a great s t i m u l a n t t o 12 r a p i d expansion of p l a n t a t i o n e n t e r p r i s e . On the other hand, 13 Henderson a t t r i b u t e s the success to s e v e r a l f a c t o r s , i n -c l u d i n g the r a i l w a y , s p e c i a l t a r r i f p r i v i l e g e s , labour supply and c r e d i t f a c i l i t i e s . I t i s t r u e a l l these f a c t o r s G i l l m a n , op. c i t . , p. 21. 'Harlow, op. c i t . , p. 190. 49 were r e s p o n s i b l e f o r e s t a b l i s h i n g the i n i t i a l economic growth of Tanzania. As f o r f u t u r e y e a r s , the d e c i s i v e f a c t o r was the f a l l i n rubber p r i c e s . T h i s , r a t h e r than the r a i l w a y , e s t a b l i s h e d s i s a l as the major export crop of the country. This p e r i o d was brought t o an end by the F i r s t World War, d u r i n g .which time great damage was done on the r a i l w a y s , and the i n c i p i e n t economic base was d i s r u p t e d . 1920 - 1948 The immediate t a s k a f t e r the war was t o r e - e s t a b l i s h l i n e s of communication by r e h a b i l i t a t i n g the r a i l w a y s and up-grading the t r a c k s t o motorable roads. ' The extent t o which r e c o n s t r u c t i o n c o u l d be e f f e c t e d , t o e s t a b l i s h a base f o r f t i r t h e r development, was l i m i t e d by the amount of c a p i t a l a v a i l a b l e . As a mandate t e r r i t o r y , Tanganyika c o u l d not borrow money on the London Market — the country had t o depend 14 on loans and g r a n t s . But the o n l y type of l o a n which c o u l d be r a i s e d under the P a l e s t i n e and East A f r i c a n Loans Ac t s of 1926, 1928 and 1931, ' r e s p e c t i v e l y , were f o r e i t h e r b u i l d i n g 15 r a i l w a y s or roads. Thus, she was able t o r a i s e about £3 m i l l i o n , under the above-mentioned A c t s , t o be spent on r a i l w a y c o n s t r u c t i o n . The Mwanza branch l i n e was b u i l t by c a p i t a l from these l o a n s . "^Cameron, ox-, c i t . , p. 69. -\Leubuseher, C , Tanganyika T e r r i t o r y : A Study of Economic P o l i c y under Manda^Eey^xf o r o T l J n i v e r s i t y P r e s s ,"l94~4") , p. 158. 50 The w o r l d d e p r e s s i o n between 1930 and 193^ r e t a r d e d f u r t h e r development. The f a l l i n the p r i c e of pri m a r y products a f f e c t e d the revenue of the country and the purchas-i n g power of the p o p u l a t i o n . The p r i c e f o r s i s a l f e l l from £23 i n 1930 t o £12 per t o n i n 1934; t h a t of c o f f e e f e l l from £35 t o £34 per t o n at t h a t time, and bees wax p r i c e s f e l l 16 from £107 to£80 per t o n . Demand f o r imports d e c l i n e d a f f e c t -i n g revenue from customs d u t i e s . Revenue f e l l from £709,670 17 i n 1929-30 t o £411,354 i n 1951-32. Throughout t h i s p e r i o d , t h e r e was u n c e r t a i n t y about the p o l i t i c a l f u t u r e of the country. The f e a r t h a t Tanganyika was going t o become "a pawn on the i n t e r n a t i o n a l chessboard" r e p e l l e d c a p i t a l from the countr y . S i m u l t a n e o u s l y , t h e r e was a campaign t o u n i t e Tanganyika w i t h Kenya and Uganda. T h i s u n i o n was e f f e c t e d i n 1923? and f u r t h e r strengthened i n 1927 • The Customs Union, however, proved a l a r g e disadvantage t o the development of the country. Ey c r e a t i n g a Free Trade area and a Common T a r r i f between the three c o u n t r i e s , Tanganyika l o s t revenue; w h i l e p r i c e s f o r some consumer items imported from Kenya were h i g h e r than those imported from o u t s i d e East 18 A f r i c a . The other disadvantage t h i s u n i o n had was on the d i s c o u r a g i n g growth of l o c a l p r o c e s s i n g i n d u s t r i e s , such as te a and sugar, as a r e s u l t of p r o v i d i n g p r o t e c t i o n t o those 1 6 M o f f e t , op. c i t . , p. 106. ^ I b i d . Smith, A.,• F j m a n c i a l M i s s i o n t o Tanganyika (London: H i s Majesty's S t a t i o n e r y O f f i c e , 1932) Cmd. 4182, pT 22. 51 19 of Kenya and Uganda. I t was at t h i s time t h a t the t r a d e imbalance, l a r g e l y f a v o u r i n g Kenya, was i n i t i a t e d ; thereby c r e a t i n g much f r i c t i o n among the three c o u n t r i e s , x^hich was r e f l e c t e d i n t h e i r e f f o r t s t o c r e a t e an East A f r i c a n Common Market. The q u e s t i o n of c l o s e r u n i o n was s i g n i f i c a n t i n the development and c o - o r d i n a t i o n of t r a n s p o r t on an East A f r i c a n l e v e l . I t was regarded as e s s e n t i a l f o r d e c i d i n g a f u t u r e p a t t e r n of r a i l and road communication, as w e l l as 20 p r o v i d i n g a b e t t e r framework f o r f i n a n c i n g such p r o j e c t s . E f f o r t s t o use r a t e p o l i c i e s as a means to f o s t e r economic growth were d i s c r i m i n a t o r y i n t h a t the d i f f e r e n t i a l r a t e system used charged low and h i g h r a t e s on export and import t r a f f i c , r e s p e c t i v e l y . The system has been c r i t i c i z e d because i t d i d not r a i s e h i g h enough revenue f o r the r a i l w a y . In p a r t i c u l a r , i t was of a d i s c r i m i n a t o r y nature i n t h a t i t tended to s u b s i d i z e those economic a c t i v i t i e s i n which . 21 Europeans were engaged at the expense of the n a t i v e people. As the country was beg i n n i n g t o rec o v e r from the shocks of the F i r s t V/orld War, the Second V/orld'War set i n . I s Leubuscher, op. c i t . , p. I l l , 20 Report of the Commission on C l o s e r Union of the Dependencies i n East and C e n t r a l A f r i c a ~ ^ L o n d o n : H i s Majesty's S t a t i o n e r y O f f i c e , 1939") Cmd. 5234, pp. 107-129. 21 Leubuscher, op. c i t . , p. 113. Figure 2.: Growth of Import Trade - 1925-1938 oj £ ' 0 0 0 , 0 0 0 - .. . ... ' . . ir\ 5 Source: Leubuscher, 0. , Tanganyika Territory; A Study of Economic Policy  under Mandate (London: Oxford University Press, 194ZH Table CI, p. 205. 53 Although, t h i s time Tanganyika was not used as a b a t t l e ground, t h e r e was government p r e s s u r e put on the country t o meet war demands. Notable among these was food p r o d u c t i o n , namely, maize. I t was at t h i s time t h a t the road s e r v i c e s by the Railway Administration-was e s t a b l i s h e d t o encourage the p r o -d u c t i o n of maize and r i c e i n the Southern H i g h l a n d , where development had been r e t a r d e d by inadequate t r a n s p o r t f a c i l -22 i t i e s . The government a l s o i n s t i t u t e d a system of s u b s i -d i z e d p r i c e s , which encouraged, the c u l t i v a t i o n of food crops i n areas which had not been brought under c u l t i v a t i o n because of h i g h t r a n s p o r t c o s t s . The need t o meet war requirements overlooked the economics of p r o d u c t i o n and resource a l l o c a -t i o n . A heavy s t r a i n was put on the i n f r a s t r u c t u r e of the country and. the t r a n s p o r t system proved inadequate. The improvements which were c a r r i e d out d u r i n g t h i s p e r i o d were c o s t l y and had l i t t l e b e a r i n g t o the p a t t e r n of economic growth t a k i n g p l a c e . Indeed, t r a n s p o r t a t i o n f a c i l i t i e s were improved at the expense of other e s s e n t i a l community needs 23 l i k e e ducation. Import t r a d e i n c r e a s e d i n p e r i o d s b e f o r e and a f t e r the d e p r e s s i o n , as shown on the graph ( F i g u r e 1). The l i s t of imports was dominated by c o t t o n goods, mostly from Japan. Being a mandate t e r r i t o r y , Tanganyika c o u l d not pursue a 2 2 M o f f e t , op. c i t . , p. 124. 23 ^Harlow, op. c i t . , p. 618. 54 d i s c r i m i n a t o r y t r a d e p o l i c y . The p o l i c y enforced at t h i s t i m e , opened the Tanganyika market t o import t r a d e from a l l o t h e r p a r t s of the w o r l d , w h i l e i n r e t u r n she had o n l y l i m i t e d items to export t o these c o u n t r i e s . Thus, the "Open Door-Trade P o l i c y " , l i k e the East A f r i c a n Customs Union p o i n t e d out e a r l i e r , was t o the advantage of other areas and — i n p a r t i c u l a r — Japan. The problem i n r a i l w a y development at t h i s p e r i o d was t h a t the l i n e was o p e r a t i n g at a l o s s and because r a i l w a y r e c e i p t s were included, i n g e n e r a l revenue, i t a f f e c t e d the f i n a n c i a l p o s i t i o n of the country as a whole. The l o s s of 24 r a i l w a y revenue had been caused: (1) by the l o s s of the copper t r a f f i c from the Congo i n the 1950 ss, which had been d i v e r t e d from •Dar-es-Salaam t o L o b i t o ; (2) the movement of export and import t r a d e f o r areas around Lake V i c t o r i a , which moved along the Kenya-Uganda r a i l w a y ; (5) the r a i l w a y a d m i n i s t r a t i o n s t a f f was a c o s t l y one; (4) the heavy burden of the r a i l w a y debt. In the f i n a n c i a l year 1931-32, out of the t o t a l debt 25 of o v e r £ 8 m i l l i o n , t w o - t h i r d s was accounted f o r by r a i l w a y s . 24 Smith, A. , c^__£it._, p«. 84 2 ^ I b i d . , p. 46 55 The unhealthy f i n a n c i a l s i t u a t i o n of the c o u n t r y , which Armitage Smith a t t r i b u t e d t o a p r o v i s i o n of an expens-i v e economic and s o c i a l i n f r a s t r u c t u r e comparable t o those of r i c h c o u n t r i e s , r e s u l t e d i n h i s recommending the p r o v i s i o n of low standard, roads i n the f u t u r e expansion of t r a n s p o r t f a c i l -26 i t i e s i n s t e a d of r a i l w a y s . The f a i l u r e of the Manyoni-K i n y a n g i r i branch l i n e t o operate at a p r o f i t vras t o c o n f i r m f u r t h e r 1 t h a t r a i l w a y s were too expensive as modes of t r a n s -p o r t f o r a s s i s t i n g economic growth. The amalgamation of Tanganyika r a i l system w i t h t h a t of Kenya and Uganda i n 1948, was a d e s i r a b l e development as f a r as the f i n a n c e and the c o n d i t i o n s of the r a i l w a y s were concerned. "The s i g n i f i c a n c e of t h i s move i n the growth of Tanganyika, apart from e l i m i n a t i n g the burden of o p e r a t i n g the r a i l w a y , was t h a t the government was saved the problem of p r o v i d i n g new r a i l w a y f a c i l i t i e s , and was thereby enabled 27 i n r e c o v e r i n g £414,000 loaned t o the r a i l w a y department. There were two other s i g n i f i c a n t developments. F i r s t , the newly formed r a i l w a y a d m i n i s t r a t i o n was t o f u n c t i o n on a commercial p r i n c i p l e and, i n p a r t i c u l a r , p r o v i d e cheap t r a n s -p o r t t o a s s i s t a g r i c u l t u r a l , mining and i n d u s t r i a l development 28 i n the three East A f r i c a n t e r r i t o r i e s . Despite t h i s d e c l a r e d 2 6 I b i d . , p. 85-27 'East A f r i c a Royal Commission, op. c i t . , p. 125. 28 Hawkins, op. c i t . , p. 32. 56 o b j e c t i v e , the r a t e p o l i c y which was d e v i s e d was no d i f f e r e n t from the past one: namely, t h e " d i f f e r e n t i a l t a r r i f " . The low r a t e s were geared to a s s i s t a g r i c u l t u r a l , mining and i n -d u s t r i a l development, and the h i g h r a t e charged on import t r a f f i c was t o make up f o r the l o s s . The p a t t e r n of the r a i l system of the t h r e e c o u n t r i e s p r o v i d e d e f f e c t i v e l i n k s t o Kenya and Uganda and o n l y i n -d i r e c t l y t o Tanganyika. In view of t h i s , i t perpetuated the l o s s of export and import t r a f f i c from the Lake areas of the country as p o i n t e d out e a r l i e r . The second aspect was the i n t e r n a t i o n a l : n a t u r e of the r a i l w a y s . By making i t a s i n g l e system, i t became poss-i b l e t o d i s t r i b u t e the g a i n s , f o r example, of moving the „• Tanganyika export and import t r a f f i c of the Lake areas from a c e n t r a l f i n a n c i a l p o o l , upon which Tanganyika c o u l d draw f o r improvement of her r a i l system. 'Towards the end of the p e r i o d under d i s c u s s i o n , a n t i c i p a t i o n of p r o s p e r i t y a f t e r the war, and, i n p a r t i c u l a r , w i t h the p a s s i n g of the C o l o n i a l Development and Welfare Act i n 1940, a "Development P l a n " was drawn up i n 1944. The p l a n envisaged the expenditure o f £ 12 .5 m i l l i o n over a p e r i o d of t h r e e years f o r Resource, S o c i a l S e r v i c e and Communication 29 development. Tv/o other p l a n s came i n t o being i n 1946 and 1947, 29 -'Burke, F.A. , Tanganyika: P r e - P l a n n i n g (New York: Syracuse U n i v e r s i t y Press," ItyP?), p. 46. which were r e v i s e d v e r s i o n s of the 1944 and 1946 p l a n s , r e s p e c t i v e l y — w i t h the r e v i s e d p l a n p e r i o d extending f o r t e n y e a r s . The.Ten Year P l a n of 1946 i s s i g n i f i c a n t i n t h i s d i s c u s s i o n because i t put great emphasis on communication. O n e - f i f t h of the £10.6 m i l l i o n proposed was a l l o c a t e d f o r r a i l w a y development. Although the r e v i s i o n of t h i s p l a n i s 30 a t t r i b u t e d t o i n c r e a s e d p r o s p e r i t y of the country, the war time p r e s s u r e s mentioned above cannot be overlooked. As p o i n t e d out e a r l i e r , the emphasis on communication was geared t o the war r a t h e r than f o r s t i m u l a t i n g economic growth. 1949 - I960 This p e r i o d saw C o l o n i a l P l a n n i n g come i n t o f u l l swing. The type of p l a n n i n g b e i n g r e f e r r e d t o here was not comprehensive. I t was a "conglomeration of ad hoc schemes 31 and p u b l i c work p r o j e c t s " t o be completed over a s p e c i f i e d p e r i o d of time. The process was aided by the Korean boom which reached i t s peak i n Tanganyika i n 1954. During t h i s p e r i o d , the p o p u l a t i o n of the country i n -creased by 1.5 m i l l i o n ; f r o m 7 .4 m i l l i o n people i n 1948 t o 8.7 m i l l i o n people i n 1957« ^he gross domestic product i s estimated t o have grown at a r a t e of 6.5% per annum, g i v i n g a net growth f o r t h i s p e r i o d of 5%. 3 1 I b i d . , p. 54. 32 I b i d . , p. 51. 58 P r o d u c t i o n of main export crops i n c r e a s e d throughout the p e r i o d , as shown i n Appendix C.. H i g h i n c r e a s e s were i n s i s a l , c o f f e e , c o t t o n and cashew n u t s . Diamond dominated p r o d u c t i o n i n the mining s e c t o r . There was an o v e r a l l i n c r e -mental change i n a g r i c u l t u r a l p r o d u c t i o n of 64% "between 1949 and 1955, but t h i s dropped t o 6% by 1958. Rapid i n c r e a s e i n export p r o d u c t i o n i s a t t r i b u t e d t o p r i c e changes. T h i s d i d not o n l y a f f e c t p r o d u c t i o n , but i t l e d t o s i g n i f i c a n t changes i n terms of value of the main a g r i c u l t u r a l e xports towards the end of the p e r i o d . S i s a l remained the most important export crop, but i t s r e l a t i v e importance d e c l i n e d from more than 50% i n 1949-50 t o about 30% i n 1960-61, as compared t o t e a , meat and cashew n u t s , which i n c r e a s e d i n importance be-53 cause of f a v o u r a b l e p r i c e s compared t o those of s i s a l . The importance of s i s a l i n the economy of Tanzania, and hence the r e p e r c u s s i o n i t had on the revenue of the country, i s d e a l t w i t h i n the "Case S t u d i e s " s e c t i o n f u r t h e r on. But i t should be mentioned i n p a s s i n g t h a t , d u r i n g t h i s p e r i o d , Tanganyika had the h i g h e s t annual r a t e of growth of 7% i n the q u a n t i t y of a g r i c u l t u r a l p r o d u c t i o n , as compared to t h a t of Kenya and Uganda. But because of ini f a v o u r a b l e p r i c e s f o r s i s a l , the r a t e of growth by value was l e s s . The p r i c e index f o r Tanganyika remained at the same l e v e l i n 34 1962-63 as i t had been i n 1949-30, namely, 108. - ^ K e y s i m i r a , Y., A g r i c u l t u r a l Export Development i n E. A f r i c a . I n s t i t u t e of S o c i a l Research, Conference .Papers, 1965, kMakerere U n i v e r s i t y C o l l e g e , Kampala, UggnTLa), p . -gt . ^ I b i d . , Table 2c, p. 17. 59 Other f a c t o r s which e x p l a i n i n c r e a s e d a g r i c u l t u r a l p r o d u c t i o n , e s p e c i a l l y f o r c o f f e e and c o t t o n , were — f i r s t , the c o n t r o l imposed over p r o d u c t i o n and marketing of cash crops d u r i n g the war; second, the development of N a t i v e Co-o p e r a t i v e Marketing S o c i e t i e s and Marketing Boards, encouraged by the government. The f i r s t c o - o p e r a t i v e s o c i e t y , the K i l i m a n j a r o N a t i v e Co-Operative Union, came i n t o b eing i n 1932. U n t i l 1952, the c o t t o n from Tanganyika was s o l d by c o n t r a c t t o the Raw Cotton Commission i n B r i t a i n . I n t h a t y e a r , the L i n t and Seed Marketing Board became r e s p o n s i b l e f o r s e l l i n g the crop. T h i s Board, t o g e t h e r w i t h the V i c t o r i a F e d e r a t i o n of Co-o p e r a t i v e Union, became the main agents f o r h a n d l i n g the c o t t o n crop as w e l l as s u p e r v i s i n g and encouraging b e t t e r p r o d u c t i o n techniques. Co-operative h a n d l i n g of crops e l i m i n a t e d middlemen, w h i l e the Board s t a b i l i z e d c o t t o n p r i c e s . I n years of f a v o u r -able p r i c e s , the Board accumulated funds which were used t o s u b s i d i z e the farmers i n years of poor p r i c e s . I n re c e n t y e a r s , the Board has extended i t s a c t i v i t i e s by c h a n n e l l i n g some of i t s p r o f i t s i n t o b u i l d i n g and improving t r a n s p o r t 36 f a c i l i t i e s , such as feeder roads and storage f a c i l i t i e s . The f o r m a t i o n by c o f f e e and s i s a l e s t a t e s owners of the Tanganyika Coffee Growers A s s o c i a t i o n and Tanganyika S i s a l 'Letter, Ref. 105, V o l . V (51), op. c i t . 60 TABLE 12 GOVERNMENT OE TANGANYIKA: REVENUE & EXPENDITURE BETWEEN 194-8 - 1959 Year Revenue Expenditure 1948 6.7 5.8 1949 8.6 7.1 1950 10.4 8.2 1955/56 18.7 18.5 1956/57 17.5 17.8 1957/58 18 .8 18 .7 1958/59 19.2 19.5 F i g u r e s rounded and i n £'000,000. Source: IBRD., Economic Development of Tanganyika, op. c i t . , p. 25. 61 Marketing A s s o c i a t i o n , r e s p e c t i v e l y , a l s o p l a y e d s i g n i f i c a n t r o l e s i n marketing these crops as w e l l as improving t h e i r p r o d u c t i o n . a t a r a t e of 9% per annum. I t rose from £8.6 m i l l i o n i n 194-9 t o £22.1 m i l l i o n towards- the end of t h i s p e r i o d . The main sources of revenue were from r i s i n g expenditure from export e a r n i n g s . T h i s i n c r e a s e d demand f o r imports and hence i n c r e a s e d revenue from customs and e x c i s e d u t i e s . The l e v e l of economic growth achieved i n t h i s p e r i o d was r e f l e c t e d i n government expenditure. Between 1945 and 1954, revenue exceeded e x p e n d i t u r e , a f t e r which time expend-i t u r e tended t o o u t s t r i p revenue, as shown on Table 12. The i n c r e a s e was mostly f o r c a p i t a l works, i n which road c o n s t r u e -r e v i s e d a g a i n i n 1950, t o take i n t o account the i n c r e a s e i n road c o n s t r u c t i o n c o s t s , w h i l e the t r a n s f e r of r a i l w a y t o East A f r i c a n Railway A d m i n i s t r a t i o n a l s o made r e v i s i o n necessary. The 1950-1956 "Development P l a n " envisaged a c a p i t a l expenditure of £24.4 m i l l i o n , of which£2 . 7 m i l l i o n were t o he spent on c a p i t a l programmes. However, continued p r o s p e r i t y , which boosted the government purse, encouraged the government t o r e v i s e the The revenue of the country i n t h i s p e r i o d was r i s i n g 37 t i o n f e a t u r e d v e r y h i g h . Thus, the 1947 Revised P l a n was 38 37 IBRD., op. c i t . , p. 25. 58. M o f f e t , o-62 1950-1956 p l a n b e f o r e i t was completed i n 1956, by r a i s i n g proposed expenditure t o £25-8 m i l l i o n . T h i s new p l a n , which was t o cover the p e r i o d 1955 t o I960, i n c l u d e d an expenditure of £3 m i l l i o n f o r c o n s t r u c t i n g the Ruvu-Mnyusi R a i l L i n k . The p l a n tended t o i n c l i n e towards a l l o c a t i n g more money f o r s o c i a l s e r v i c e s , e s p e c i a l l y e d ucation. But i n aggregate terms, a l l o c a t i o n on communications and, i n p a r t i c u l a r , roads, was the h i g h e s t , as shown i n Table 13 ( a ) . Table 13 (b) compares expenditure on economic and s o c i a l i n f r a s t r u c t u r e ; and Table 13 ( c ) compares the t o t a l economic i n f r a s t r u c t u r e . As i t was. p o i n t e d out i n Chapter I I , the road p o l i c y aimed at p r o v i d i n g " q u a n t i t y " r a t h e r than q u a l i t y of good roads. N e i t h e r were the roads p r o v i d e d based on t r a n s p o r t needs, which e x i s t e d i n d i f f e r e n t p a r t s of the country. The road p a t t e r n " w h i c h f i n a l l y evolved was u n r e l a t e d to the p a t t e r n of economic a c t i v i t i e s of the country. I t has thus been c r i t i c i z e d as having been u n r e a l i s t i c , i n t h a t by: attempting t o spread i t s l i m i t e d resources over a v a s t t e r r i t o r y , and buying experience and knowledge at great c o s t , the Tanganyika Government p r o v i d e d t r a n s p o r t f a c i l i t i e s which were under u t i l i z e d i n backward areas and inadequate i n developing areas. By I960, Tanganyika found, i t s i n f r a s t r u c t u r e im-proved, yet incomplete and expensive t o m a i n t a i n . . . . The mere c r e a t i o n of p h y s i c a l c a p i t a l i s no guarantee of economic growth. Indeed the Tanganyika Government had, i n the groundnut scheme, ample and c o s t l y evidence t h a t i t c o u l d a c t u a l l y slow down the progress of the economy. 39 Smith, op.-...9it. , p. 13. TABLE 13 (a) GOVERNMENT OF TANGANYIKA - DEVELOPMENT PLAN 1955-1960 Item 1955-1960 £'000,000 Proportion of Expenditure - % 1955-60 compared to 1946-50 Plan 4.9 19.2 17.8 ' 7.4 23.9 35.9 Roads U.Z R a i l w a y s 3.0 Aerodomes 0.2 3.2 12.5 14.6 5.3 20.5 12.0 Public Building 2.0 7.5 14.2 2.0 7.7 -0.97 3.7 5.5 Total 25.S 100.0 100.0 Source: Development Plan 1955-1960: Capita .1 Works Expenditure 1Government Printer, Dar-es-Salasm, 1955), pp. 4 and 6. includes miscellaneous expenditure TABLE 13 (b) GOVERNMENT OF TANGANYIKA - CAPITAL EXPENDITURES ON ECONOMIC & SOCIAL SECTORS 1948-1950, 1955-1956, 1958-1959, AND. ESTIMATES FOR 1960-1961 - i n £'000 1955/ 1956/ 1957/ 1958/ 1960/ Category- 1948 1949 1950 1956 1957 1958 1959 1961 (est.) Economic Agriculture & Animal 169 229 359 90 72 147 247 217 140 162 168 311 470 492 634 715 112 180 1,094 1,172 939 906 849 1,386 71 301 113 208 85 90 140 401 Social 47 227 292 674 1,026 1,196 1,135 677 Township Development.. 73 104 450 570 1,292 993 810 721 Public Health & Social Welfare 65 • 9 44 346 419 309 291 303 Public Buildings and 272 341 906 707 942 1,253 966 1,471 47 134 13 6 38 68 87 289 Total 996 1,687 3,439 4,084 5,283 5,454 5,159 6,180 Source: I.B.R.D. - Economic Development of Tanganyika, • (Government Printer, Dar-es-Salaam, 1961), p. 28. TABLE 13 (o) GOVERNMENT OF TANGANYIKA - EXPENDITURE ON CERTAIN ECONOMIC ACTIVITIES 1948 - 1958/59 - i n £000,000 Year T o t a l Expenditure ( i n c l . Development) Roads & Bridges A g r i c u l t u r e and Veter inary Services Water Development 1948 6.8 0,3 0.5 0.1 1949 8.7 0.4 0.7 0.2 1950 11.6 1.4 0.8 0.2 1951 14.6 1.5 0.9 0.2 1952 18.3 2.2 0.8 0.3 1953 18.0 . 2.1 0.9 0.3 1954 Jan./June . 9 .1 0.9 0.5 0.2 1954 - 1955 19.8 1.9 0.9- 0.6 1955 - 1956 22.6 1.9 1.0 0.8 1956 - 1957 23.1 1.8 1.2 0.9 1957 - 1958 24.1 1.8 1.2 0.9 1958 - 1959 24.7 1.8 1.1 1.1 Source: Smith, H . E . , Readings on Economic Development and Adminis trat ion i n Tanzania ( I n s t i t u t e of Publ ic Adminis t ra t ion , U n i v e r s i t y Col lege , Dar-es-Salaam, London: Oxford U n i v e r s i t y Press , 1966), p . 16. 66 When the country achieved independence in.December 1961, i t had a d e f i c i e n t t r a n s p o r t system i n c a p a b l e of a s s i s t i n g r a p i d economic growth. 1.9.61 - 1964 In the f i r s t f o u r years of independence, the momentum of economic growth experienced i n the proceeding years continued. In 1961, the p o p u l a t i o n of the country was estimated t o be about 9*5 m i l l i o n people. The N a t i o n a l Income stood a t £172.5 m i l l i o n and rose t o £230.7 m i l l i o n i n 1964. The Gross Domestic Product i n c r e a s e d from £185-1 m i l l i o n i n I960 40 to £244.5 m i l l i o n i n 1964. The i n c r e a s e i n the value of Gross Domestic Product i n 1962 was 7.8% and 6.8% of I960 41 and 1961 i n c r e a s e s , r e s p e c t i v e l y . A g r i c u l t u r a l p r o d u c t i o n continued t o expand. The l a r g e s t i n c r e a s e s were i n c o t t o n , c o f f e e and cashew nuts — the l a t t e r i n c r e a s e d by 39%- The continued i n c r e a s e i n cashew nut p r o d u c t i o n d u r i n g t h i s p e r i o d was s t i m u l a t e d by s t a b l e market p r i c e s . C o n t r i b u t i n g t o t h i s s t a b i l i t y , was the f o r m a t i o n of the N a t i o n a l A g r i c u l t u r a l Products Board, which was made r e s p o n s i b l e f o r marketing cashew n u t s , as w e l l as other o i l seeds, maize and r i c e . I b i d . , p. 51. hi - L e y , C.,.and Robson, P., F e d e r a t i o n i n East A f r i c a :  Op-portunities and Pro_blems ( N a i r o b i ! Oxford' U n i v e r s i t y ~ P r e s s , "1965J7~Appendix IV, "p. 2"23". 67 Although i n a c t u a l f a c t the p r i c e of cashew nuts f l u c t u a t e d between £40 and £49, per t o n , i n I960 - 1964, these changes were not f e l t by the farmer. The i n c r e a s e i n c o t t o n p r o d u c t i o n a l s o r e f l e c t s a response t o f a v o u r a b l e p r i c e s , which were above w o r l d average, g i v e n t o growers i n 42 the Mwanza ar e a . S i s a l p r o d u c t i o n i n c r e a s e d by 7%: "but i t s p r i c e continued t o f a l l and was below £110 per t o n , thus the value r e a l i z e d was l e s s . Diamond p r o d u c t i o n continued t o dominate the mining s e c t o r accounting f o r 22% of the v a l u e of m i n e r a l p r o d u c t i o n . I n 1964, investment i n t r a n s -p o r t equipment and machinery accounted f o r 42% of the Gross 43 C a p i t a l f o r m a t i o n . ^ Government revenue and expenditure continued, t o i n -cr e a s e . Recurrent revenue i n c r e a s e d from about £27»9 m i l l i o n i n the f i s c a l year 1961-62, t o £ 34.0 m i l l i o n i n 1964-65. Recurrent expenditure f l u c t u a t e d b e t w e e n £ 24 .7 and £34.0 m i l l i o n , exceeding revenue by £ 2.8 and £ 0 . 5 m i l l i o n i n 1961-62 and 1964-65, r e s p e c t i v e l y . Expenditure on s o c i a l i n f r a s t r u c t u r e , n o t a b l y e d u c a t i o n , ranked h i g h , f o l l o w e d by expenditure on economic i n f r a s t r u c t u r e w i t h emphasis remain-i n g on t r u n k roads, as shown i n Table 14 ( a ) . The r a t e of expenditure on S o c i a l S e r v i c e s throughout t h i s p e r i o d was about 29% of annual t o t a l e x p e n d i t u r e , w h i l e — , - —•*-—— — - ~~- — • ~ Smith, op. c i t . , p. 54. 4 3 I b i d . , p. 59^ 68 TABLE 14- (a) EXPENDITURE ON SELECTED ECONOMIC AND SOCIAL SERVICES 1961 - 1964 ~ . 1960/ 1961/ 1962/ 1963/ 1964/ b e c t 0 1 126L_.. 1962. 1963. 1964> I Economic Seryi ce 3 Road & Bridge Maintenance...... 1.2 1.5 1.6 1.5 1»5 Agriculture......... 0.8 1.0 1.7 1.6 1.9 Water Supplies...... 0.02 0.10 - 0 . 2 - 0 . 3 0.2 II Social Ser^ces Education 3.3 3.9 4.4 4.9 5.9 Medical 1.8 1.9 2.1 2.3 2.5 Community . Development - 0.1 0.08 0.2 0.2 fi Approved estimate. Figures rounded and i n £*000,000. Source: The United Republic of Tanzania: S t a t i s t i c a l Abstract 1964 (Central S t a t i s t i c a l Bureau - Directorate of Development and Planning - 1965; Government Printer, Dar-es-Salaam), pp. 113-114. 69 that on economic services v a r i e d between 15% to 20%. An important aspect i n the development process of the country i n t h i s period, was the implementation of the Three Year Plan 1961/62 - 1963/64, based mostly on the V o r l d Bank Report of I960. The p l a n had three main ob j e c t i v e s . F i r s t , the development of a g r i c u l t u r e , l i v e s t o c k , water supplies, and i r r i g a t i o n ; second, the improvement and development of communications; and, f i n a l l y , the development of secondary 44 education. This period marks a departure from " C o l o n i a l Planning", to the beginning of comprehensive planning. The underlying economic objectives were to increase the per c a p i t a income of the population and the general standard of l i v i n g of the people. The p l a n envisaged an expenditure of £24 m i l l i o n i n contrast to £ 1 8 m i l l i o n recommended i n the World Bank Report. Expenditure on trunk and feeder roads was a l l o c a t e d the highest proportion of the development c a p i t a l . These accounted f o r about 17% of the t o t a l expend-i t u r e , i n contrast to 15.5% and 9«8% f o r Education and A g r i c u l t u r e , r e s p e c t i v e l y , as shown i n Table 14 (b). The p o l i c y guiding road development under the Three Year Plan was to continue b u i l d i n g trunk rather than feeder roads. This was i n c o n t r a d i c t i o n with the recommendation of the World Bank Report, which favoured the development of 44 Three Year Development Plan (reprinted i n Smith), op. c i t . , p. 349. 70 TABLE H (b) GOVERNMENT OF TANGANYIKA: PROPOSED EXPENDITURE FOR DEVELOPMENT PLAN - 1961/62 - 1963/64-oil* Too&l Main Category * Expenditure Expenditure 1. Communications, Power & Works... 6.9 28.8 3.2 1.0 0.2 1.8 13.5 4.0 0.8 7.5 5.7 24.0 3.3 13.7 2.2 9.1 1.3 5.4 1.3 5.2 1.2 5.2 1.1 4.6 1.0 4.0 Total 24.0 100.0 * Except i n 1. Figures rounded and i n £'000,000 Source: Smith, H.E., Ridings i n the Economic Development and Administration i n • Tanzania (Institute of Public Administration, University College, Dar-es-Salasm, Oxford University Press, 1966, London), pp. 357-S. 71 45 f e e d e r roads. The reason f o r not u n d e r t a k i n g a feeder road development programme. was t h a t t h e r e were i n s u f f i c i e n t surveyors who c o u l d undertake the j o b . The Trunk Road P r o -gramme was g i v e n p r e f e r e n c e because the system, as i t had been developed i n pre-independence p e r i o d , was not s e r v i n g the needs of the country adequately. S i n c e the road p a t t e r n was o r i e n t e d "outwards", i t f a c i l i t a t e d the o u t f l o w of pur-c h a s i n g power from the r i c h p r o v i n c e s , p a r t i c u l a r l y i n the n o r t h e r n p a r t of the country i n t o the n e i g h b o u r i n g Kenya and Uganda. I t d i d not p r o v i d e d i r e c t connections between the t h r e e most developed r e g i o n s i n the country, namely, West Lake and Northern Regions, as w e l l as l i n k i n g them w i t h the major seaports i n the c o u n t r y . The l a t t e r case was p a r t i c u -l a r l y t r u e i n the case of the two former areas which d i d not have a d i r e c t road l i n k w i t h Dar-es-Salaam. Thus, the areas depended e n t i r e l y on the r a i l w a y and, i n p a r t i c u l a r , on supply of t h e i r t r a d e from Kenya and Uganda. The Three Year P l a n road programme was designed t o e l i m i n a t e t h i s d e f i c i e n c y as w e l l as connect areas of a g r i c u l t u r a l and m i n e r a l produc-46 t i o n w i t h the main o u t l e t s i n Tanganyika. The i m p l i c a t i o n s of t h i s p o l i c y on the f u t u r e develop-ment of a t r a n s p o r t system i s t w o - f o l d . F i r s t , i t r e f l e c t s ^ IBRD., op. c i t . , p. 156. 46 Smith, op. c i t . , p. 358. 72 concern on the s i d e of a N a t i o n a l Government t o r e - o r i e n t a t e the t r a n s p o r t a t i o n system t o the i n t e r n a l needs of a c o u n t r y i t was b u i l t t o s e r v e ; and t o p r o v i d e more f a c i l i t i e s i n those areas most developed and w i t h p r o m i s i n g p o t e n t i a l f o r f u t u r e development. Second, i t was.a d e c l a r a t i o n t h a t road t r a n s p o r t should be made to p l a y the same r o l e as t h a t of r a i l w a y s . T h i s marked a departure from p a s t p o l i c i e s , which avoided p r o v i d i n g d i r e c t road connections t o seaports as a way of d i s c o u r a g i n g c o m p e t i t i o n between r a i l and road. Such a p o l i c y had worked a g a i n s t the development of i n t e r - r e g i o n a l t r a d e w i t h i n Tanzania. For example, both passenger and goods t r a f f i c between the Lake Regions and A r u s h a - K i l i i n a n j a r o Regions had t o f o l l o w a c i r c u i t o u s r a i l r o u t e through Kenya. Today, by completing the Sekenke road j u n c t i o n , i t i s q u i c k e r and cheaper e s p e c i a l l y f o r people t o t r a v e l between the two areas. In view of the r a p i d growth of manufacturing a c t i v i t i e s i n the two a r e a s , e s p e c i a l l y i n the Arusha - K i l i m a n j a r o Regions, i n t e r - r e g i o n a l t r a d e i n items such as beer, matches, sugar and t e x t i l e s , w i l l be h i g h l y encouraged and w i l l reduce the dependence of areas around Lake V i c t o r i a f o r the supply of these products from Kenya and Uganda. The v a l u e of having a d i r e c t road l i n k w i t h the main p o r t s , i s t h a t road haulage can be supplemented t o ease con-g e s t i o n at the p o r t s by moving the l e s s b u l k y and s h o r t - h a u l t r a f f i c i n l a n d . The use of l o r r i e s t o ease co n g e s t i o n at Mombasa i n r e c e n t years was p o i n t e d out i n the l a s t chapter. Although.no s i m i l a r development has been r e p o r t e d i n the case of Dar-es-Salaam, c o n g e s t i o n p r e v a i l e d a t the p o r t i n 47 1 9 6 5 » I n view of the l i m i t e d p o r t f a c i l i t i e s and the sudden dependence of Zambia f o r i t s import and export t r a d e v i a Dar-es-Salaam, which i s mostly t r a n s p o r t e d by roa d , t r a f f i c movement by road ought t o p l a y a b i g r o l e i n eas i n g conges-t i o n and, a l s o , e l i m i n a t i n g unnecessary and expensive delays of s h i p s i n the p o r t s . T h i s i n t u r n w i l l reduce expenses i n p o r t o p e r a t i o n s . P o l i c i e s i n f l u e n c i n g t r a n s p o r t development i n p o s t -independence days, and, i n p a r t i c u l a r , road t r a n s p o r t , are not concerned w i t h the number of road m i l e s per se. I t r e -f l e c t s a concern w i t h whether or not the e x i s t i n g ti'ansport system meets the needs of Tanzania adequately and, i n so do i n g , b e g i n t o e f f e c t those changes necessary t o e f f e c t i v e l y r e o r i e n t a t e the system t o meet i n t e r n a l t r a n s p o r t a t i o n needs. E.A.R. & H., Annual Report 1966, op. c i t . , p. 28. CHAPTER IV 1 CASE STUDIES 1. S i g n i f i c a n c e of Transport Costs i n the P r o d u c t i o n of Main Export Crops a) S i s a l S i s a l i s the most important export crop i n Tanzania. I t s c e n t r a l p o s i t i o n i n the economy of the country i s r e -f l e c t e d i n i t s p r o p o r t i o n a t e share i n the economy as a whole. S i s a l accounts f o r about 30% of the v a l u e of domestic e x p o r t s . I n 1964-, producers of s i s a l were the second l a r g e s t employers of the l a b o u r f o r c e , a f t e r the government, employing about 2 25% of the employed A f r i c a n l abour f o r c e . Most of the areas producing s i s a l were l o c a t e d along or near the f i r s t r a i l w a y l i n e t o be b u i l t i n the country. T h i s has l e d people t o b e l i e v e the crop was dependent upon cl o s e n e s s t o r a i l f a c i l i t i e s f o r s u c c e s s f u l economic p r o d u c t i o n . I t was a l s o p o i n t e d out e a r l i e r how the crop came to occupy i t s prominent p o s i t i o n i n the economy of the country, which was due to the f a l l i n rubber p r i c e s at the b e g i n n i n g of t h i s century. Since the crop i s not v e r y much i n f l u e n c e d by c l i m a t e (as i n the case of c o f f e e , c o t t o n or t e a ) , i n t h a t i t can w i t h s t a n d drought c o n d i t i o n s as w e l l as poor s o i l s , i t s l o c a -t i o n along the c o a s t a l b e l t i s not based on p h y s i c a l f a c t o r s . "4lap 5 has been p r o v i d e d f o r g e n e r a l r e f e r e n c e of areas r e f e r r e d t o i n the Case S t u d i e s . 2 G u i l l e b a u d , op. c i t . , p. 115. 73 ^ O >: t : l H * 1 COTTOW CO tf.|r O t f l W I M t « l l » i . l * l l > Q « g >NO M'M'" Of ICOHOWIC (HI V IC tot I i \ . 1 4 0 0 0 0 0 0 On the other hand, there seems t o be a c l o s e c o r r e l a t i o n be-tween important areas of p r o d u c t i o n and e a r l y German s e t t l e -s e t t l e m e n t . Tanga produces 56%, the C e n t r a l area ( c o a s t r e g i o n ) 26%, Northern area (Arusha and K i l i m a n j a r o ) 7.8%, and the Southern (Mtwara r e g i o n ) 5.3% of the p l a n t a t i o n s i s a l . The remaining 3.2% i s produced on a n o n - p l a n t a t i o n b a s i s (e.g., 3 hedge s i s a l ) , m ostly from the Lake zone. Tanga was the f i r s t t o be developed by the Germans, thus i t has maintained the l e a d e r s h i p because of h i s t o r i c a l reasons. S i s a l p r o d u c t i o n i s o n l y f e a s i b l e on a l a r g e - s c a l e b a s i s . I t i s both a c a p i t a l and l a b o u r I n t e n s i v e i n d u s t r y . The f a c t t h a t the prsent i n d u s t r y occupies o n l y about 1% of the t o t a l area of the country (361,800 sq. m i l e s ) , and the type of l a n d req.uired i s i n ample supply, l a n d cannot be regarded as a l i m i t i n g f a c t o r i n the expansion of the i n -d u s t r y . The minimum c a p i t a l investment f o r producing a t o n of s i s a l b efore the Second World War was £ 59- The comparable 4 f i g u r e at present market v a l u e i s £200. The t o t a l c a p i t a l i n v e s t e d i n the s i s a l i n d u s t r y of Tanzania i s over 5 E 2 0 m i l l i o n . T h i s has a l l come from p r i v a t e sources, not so much by borrowing, but by plowing back p r o f i t s earned from 3Ibid., Appendix Table C, p. 153. 4 I b i d . , p. 60. ^ I b i d . , p. 60. 77 i n c r e a s e d p r o d u c t i o n and good market p r i c e s . Thus, although the country has been f a c e d w i t h a shortage of c a p i t a l , the s i s a l i n d u s t r y has, by and l a r g e , been able t o f i n a n c e i t s own expansion. The a v a i l a b i l i t y of l a b o u r was p o i n t e d out e a r l i e r o as one of the u n d e r l y i n g reasons f o r the success of p l a n t a -t i o n a g r i c u l t u r e d u r i n g the German a d m i n i s t r a t i o n . Because of the p r e v a l e n t l i m i t e d mechanized nature of the p r o d u c t i o n p r o c e s s , the i n d u s t r y r e q u i r e s a l o t of l a b o u r . Supply of l a b o u r , as w e l l as i t s c o s t , i n terms of i n c r e a s e i n wages and other aspects r e l a t e d to. i t , w i l l i n f l u e n c e p r o d u c t i o n c o s t s . The l a b o u r f o r c e f o r the i n d u s t r y has remained r e l a t i v e l y s t a b l e . The i n d u s t r y r e t a i n e d much of the same 6 l a b o u r f o r c e through h i g h and low export e a r n i n g s . But l a b o u r i s becoming expensive because of i n c r e a s e i n wages and f r i n g e b e n e f i t s , such as s i c k pay, h o l i d a y s and annual p a i d leave. I n 1963, c o s t of l a b o u r r e p r e s e n t e d 58% of the net t o t a l e x p enditure. Between 1958 - 1963, the average net t o t a l e x p e n d i t u r e , per t o n , i n c r e a s e d by 58.8%, t h a t of 7 l a b o u r averaged 67% at the same p e r i o d of time. Table 15 shows the c o s t of l a b o u r compared to other major c o s t s of 1 g 1 1 1 1 1 1 ' ' - " •"' ' • , MacBean, Export I n s t a b i l i t y and Economic Development (London: A l l e n and Unwin, 1966), p. l55 ^ G u i l l e b a u d , op. c i t . , pp. 72-73. 78 p r o d u c t i o n of one t o n of s i s a l . The s m a l l p r o p o r t i o n of t r a n s p o r t c o s t s i s r e f l e c t e d by the f a c t t h a t t h i s i s i n -c l u d e d i n the heading of " A l l other c o s t s " . TABLE 15 SISAL PRODUCTION LABOUR AND CAPITAL COSTS PER TON 1962 and 1963 S h i l l i n g s P e r Ton C o s t 1962 1963 Increase Labour 30.6 33-2 + 2.6 D e p r e c i a t i o n 9.5 11.9 + 2.4 A l l o t h er c o s t s * ( i n c l . b u i l d i n g c o n t r a c t o r s ) 99.1 119.3 + 20.2 T o t a l 139.2 164.4 + 25-2 * ( i n c l u d e s s t o r e s , power, s t a f f , s a l a r i e s and commissions, a d m i n i s t r a t i v e expenses, t r a n s p o r t t o p o r t , s i s a l c ess) Source: G u i l l e b a u d , C.V., An Economic Survey of the S i s a l I n d u s t r y of Tanganyilca~TEngIand:~ James N i s b e t & Co. L t d . , 1966;', p." 69 The co s t of t r a n s p o r t must be weighed a g a i n s t the cost of lab o u r t o have any s i g n i f i c a n c e at a l l i n the t o t a l p r o d u c t i o n c o s t s of s i s a l . Two types of t r a n s p o r t c o s t should be d i s t i n g u i s h e d . F i r s t , i s the cost of t r a n s p o r t i n g s i s a l from the p l a n t a t i o n s t o the p o r t e i t h e r at Tanga, Iitwara, or Dar-es-Salaam. Second, i s the c o s t of s h i p p i n g the s i s a l from the p o r t t o i t s d e s t i n a t i o n (e.g., c . i . f . or f . o . b . ) . Only the f i r s t c o s t s are of concern here. Most of the s i s a l i s moved b y ' r a i l w a y t o the p o r t s of 8 Tanga or Dar-es-Salaam. The r a i l w a y t a r r i f r a t e i s "tapered" Thus r a t e s charged on t r a f f i c decrease w i t h i n c r e a s i n g d i s t a n c e . In other words, t a r r i f r a t e s are not p r o p o r t i o n a t e t o the l e n g t h of haulage. The t a p e r i n g of r a t e s and the low v a l u e nature of s i s a l , r e q u i r i n g s u b s i d i z a t i o n by h i g h v a l u e t r a f f i c , combine t o reduce the s i g n i f i c a n c e of t r a n s p o r t c o s t s i n over a l l p r o d u c t i o n of the crop. Most of the p l a n t a t i o n s are w i t h i n one or two hundred m i l e s from the p o r t s , t h u s , they do not r e a l l y b e n e f i t from r e d u c t i o n i n f r e i g h t charges w i t h i n c r e a s i n g d i s t a n c e . A t o n of s i s a l from Morogoro t o Dar-es-Salaam, a d i s t a n c e of 125 m i l e s , c o s t s about £1.5 per m i l e t o t r a n s -p o r t . By comparison, s i m i l a r weight of s i s a l from Ngomeni t o Tanga, a d i s t a n c e of 15 m i l e s , c o s t s about a £1/4 t o 10 t r a n s p o r t . o Except i n the Southern (Mtwara) ar e a , where there i s no r a i l w a y , i n which case the product i s moved by road t o Mtwara. A l s o , i n a few i n s t a n c e s , i n the Tanga and C e n t r a l " s i s a l r e g i o n s " , where some e s t a t e s have begun t r a n s p o r t i n g t h e i r s i s a l t o sea p o r t s by road. Q 'Hazelxfood, op. c i t . , p. 83. The Economist I n t e l l i g e n c e U n i t : Investment O p p o r t u n i t i e s i n Tanganyika (The Government of the U n i t e d R e p u b l i c of T a n z a n i a ) , p. 28. the f i r s t c o s t s are of concern here. Most of the s i s a l i s moved by r a i l w a y t o the p o r t s of 8 Tanga or Dar-es-Salaam. The r a i l w a y t a r r i f r a t e i s "tapered". Thus r a t e s charged on t r a f f i c decrease w i t h i n c r e a s i n g d i s t a n c e . In other words, t a r r i f r a t e s are not p r o p o r t i o n a t e t o the l e n g t h of haulage. The t a p e r i n g of r a t e s and the low v a l u e nature of s i s a l , r e q u i r i n g s u b s i d i z a t i o n by h i g h v a l u e t r a f f i c , combine t o reduce the s i g n i f i c a n c e of t r a n s p o r t c o s t s i n over a l l p r o d u c t i o n of the crop. Most of the p l a n t a t i o n s are w i t h i n one or two hundred m i l e s from the p o r t s , t h u s , they do not r e a l l y b e n e f i t from r e d u c t i o n i n f r e i g h t charges w i t h increas-i n g d i s t a n c e . A t o n of s i s a l from Morogoro to Dar-es-Salaam, a d i s t a n c e of 125 m i l e s , c o s t s about £1.5 per m i l e t o t r a n s -p o r t . By comparison, s i m i l a r weight of s i s a l from Ngomeni t o Tanga, a d i s t a n c e of 15 m i l e s , c o s t s about a £1/4 t o 10 t r a n s p o r t . o Except i n the Southern (Mtwara) a r e a , where there i s no r a i l w a y , i n which case the product i s moved by road t o Mtwara. A l s o , i n a few i n s t a n c e s , i n the Tanga and C e n t r a l " s i s a l r e g i o n s " , where some e s t a t e s have begun t r a n s p o r t i n g t h e i r s i s a l t o sea p o r t s by road. o jHazelwood, op. c i t . , p. 85. ^ T h e Economist I n t e l l i g e n c e U n i t : Investment O p p o r t u n i t i e s i n Tanganyika (The Government of the Un: * m i t e d Republic of~7Fanzania"), p. 28. 80 On the other hand, i f the Railway A d m i n i s t r a t i o n were to adopt a "Cost-Tapered A c t u a l T a r i f f " , charges f o r s h o r t d i s t a n c e s w i l l be too h i g h ; consequently i n c r e a s i n g t r a n s p o r t c o s t s i n areas where most of the s i s a l i s now produced. Charges f o r medium d i s t a n c e w i l l be reduced s u b s t a n t i a l l y , and charges f o r d i s t a n c e s g r e a t e r than 400 m i l e s w i l l be i n -creased. But t r a n s p o r t charges as a percentage of the f.o.b. 11 value of the commodity w i l l s t i l l be s m a l l . But t h i s i s " i f " the t a r r i f r a t e s w i l l be changed. At the moment, how-ever, " s i s a l i s u n a f f e c t e d by the d i f f e r e n c e between charge-12 able and t r u e mileages." T h e r e f o r e , the view t h a t t r a n s p o r t c o s t s discourage the establishment of s i s a l e s t a t e s i s not a l t o g e t h e r j u s t i f i e d . I t would appear t h a t s i s a l e s t a t e owners have p r e -f e r r e d t o i n c r e a s e t h e i r p r o d u c t i o n by i n t e n s i v e r a t h e r than e x t e n s i v e methods. A l s o , wherever there has been a need t o b r i n g new l a n d i n t o p r o d u c t i o n , i t i s eco n o m i c a l l y cheaper t o make t h i s expansion i n areas where the i n d u s t r y i s a l r e a d y w e l l e s t a b l i s h e d , r a t h e r than i n new areas. The l a t t e r a l t e r n a t i v e would have i n v o l v e d new c a p i t a l investment to e s t a b l i s h s e l f - c o n t a i n i n g p r o d u c t i o n u n i t s . The i n c r e a s i n g p r o d u c t i o n from "hedge s i s a l " , growing i n sem i - w i l d c o n d i t i o n around south e a s t e r n p a r t s of Lake V i c t o r i a , i s another good 1 1Hazelwood, op. c i t . , pp. 98-99. 1 2 I b i d . , p. 98. 81 example t o i n d i c a t e t h a t t r a n s p o r t c o s t s do not i n f l u e n c e g r e a t l y the expansion of s i s a l p r o d u c t i o n . The a v a i l a b i l i t y of c a p i t a l from the V i c t o r i a F e d e r a t i o n of Cooperative Union has made p o s s i b l e the c o n s t r u c t i o n of a f a c t o r y t o c l e a n and b o i l "home d i e o r t i c a t e d " s i s a l . I t would appear, i n t h i s i n s t a n c e , l a c k of c a p i t a l t o b u i l d a f a c t o r y t o c l e a n and b a l e s i s a l has been the l i m i t i n g f a c t o r i n the development of an organized s i s a l i n d u s t r y around the Lake a r e a . The government i s now encouraging V i l l a g e s e t t l e m e n t s i n the Lake Zone, based on c u l t i v a t i o n of s i s a l which w i l l be processed and s o l d under the auspices of the V i c t o r i a F e d e r a t i o n of Cooperative Union. The a v a i l a b i l i t y of c a p i t a l and the cost of l a b o u r w i l l continue t o remain the most important f a c t o r s i n the p r o d u c t i o n of s i s a l . These f a c t o r s , i n c o n j u n c t i o n w i t h new markets, i n c r e a s e d demand, improvement i n the wo r l d p r i c e f o r s i s a l , and secondary use of s i s a l f o r paper p r o d u c t i o n , w i l l determine the r o l e the crop w i l l continue t o p l a y i n the economic growth of the country. Transport c o s t s , although they cannot be overlooked, do not c o n s t i t u t e an o b s t a c l e t o the expansion of the s i s a l i n d u s t r y . b) Coffee and Cotton U n l i k e s i s a l , c o f f e e and c o t t o n are peasant crops grown by farmers, the m a j o r i t y of whom belong t o co o p e r a t i v e 8 2 ^ 14 movements. The most important are the K.N.C.U., B.N.C.U., 15 16 V.F.C.U., and T.C.T.A. — which handle the c o f f e e crops of s m a l l e r c o f f e e unions i n d i f f e r e n t p a r t s of the c o u n t r y ; such as the l i e r u Union i n the Arusha Region, Rungwe and Mbozi Unions i n Mbeya Region, and Matengo Union i n Songea Region. The K.N.C.U. and V.JT.C.U., the two l a r g e s t c o o p e r a t i v e move-ments f o r c o f f e e and c o t t o n , r e s p e c t i v e l y , i n the K i l i m a n j a r o and Lake V i c t o r i a a r e a s , have been s e l e c t e d f o r i l l u s t r a t i o n s . 17 The producing u n i t i s the f a m i l y "shambas" averaging two t o three minimum acres per f a m i l y and employing f a m i l y l a b o u r . A f t e r h a r v e s t i n g the crop ( c o t t o n or c o f f e e ) , i t i s taken t o a buying s t a t i o n e i t h e r by porterage or b i c y c l e , and, i n some cases, on a l o r r y h i r e d by a group of farmers. The former method i s predominant i n the c o t t o n growing a r e a s , where i n Sukumaland, f o r example, b i c y c l e s are used extensive-, l y f o r t h i s purpose. I n c o f f e e areas, because of the mountain-ous t e r r a i n and h i g h ownership of l o r r i e s and vans among the Chaggo people, motor t r a n s p o r t i s becoming i n c r e a s i n g l y important. The c o s t of t r a n s p o r t i n the f i r s t stage of crop movement i s borne d i r e c t l y by the farmer. At the s t o r e , the 15 ^ K i l i m a n j a r o N a t i v e Cooperative Union. 14 Bukoba N a t i v e Cooperative Union. 15 ^ V i c t o r i a F e d e r a t i o n of Cooperative Union. "^Tanganyika Cooperative Trading Agency. 17 ' S w a h i l i word used f o r s m a l l peasant farms. 83 crop i s s o l d t o the Prim a r y Cooperative S o c i e t y , which i s r e s p o n s i b l e f o r d e l i v e r i n g i t t o a Union's g i n n i n g or c u r i n g works f o r p r o c e s s i n g and b a l i n g or bagging, depending on whether i t i s c o t t o n or c o f f e e . The cos t of t r a n s p o r t i n g the crop i n the second phase i s borne by the Union. A f t e r the second stage, the crops are i n the hands of the Market-i n g agencies — K.N.C.U., B.N.C.U., and T.C.T.A., and 1 8 J J . S . M . B . These agencies are r e s p o n s i b l e f o r a u c t i o n i n g the processed crop and f o r i t s f i n a l shipment t o the buyers over-seas. Thus, they meet the c o s t of storage and t r a n s p o r t of the l a s t phase — f r o m the c u r i n g f a c t o r y and g i n n e r i e s t o the seaports e i t h e r at Dar-es-Salaam or Mombasa. Although c o f f e e from the K i l i m i n j a r o area i s now auct i o n e d at Moshi, i t i s s t i l l exported through Mombasa i n s t e a d of Tanga, the nearest p o r t i n Tanganyika, because of the b e t t e r p o r t f a c i l -1 9 i t i e s of Mombasa as compared t o the l i g h t e r a g e p o r t of Tanga. Since c o f f e e , a h i g h r a t e d t r a f f i c , i s not s u b s i d i z e d l i k e c o t t o n or s i s a l , i t i s p o s s i b l e t h a t the cost of t r a n s -i t t o Mombasa may be-as h i g h as those of e x p o r t i n g i t through Tanga, p l u s a d d i t i o n a l c o s t s due t o poor h a n d l i n g f a c i l i t i e s of the p o r t . The major j u s t i f i c a t i o n f o r c o n t i n u i n g t o ex-p o r t the Tanzania c o f f e e through Mombasa, i s the l e a d i n g r o l e 1 o L i n t and Seed Marketing Board. 19 "\Hoyle, op. c i t . , p. 7 9 . 84 20 the c i t y p l a y s as a centre f o r " c o f f e e exchange" between Ea s t A f r i c a and wor l d markets. C o n t i n u i n g t o export p a r t of the c o t t o n grown i n the Lake area v i a Mombasa i s intended t o ease c o n g e s t i o n on the C e n t r a l L i n e and storage space at Dar-es-Salaam p o r t , as i t was p o i n t e d out e a r l i e r . The c o s t s i n c u r r e d i n h i r i n g storage f a c i l i t i e s a t Mombasa, by the L i n t and Seed Marketing Board, c o n s t i t u t e s an important p a r t of t r a n s p o r t a t i o n c o s t s of c o t t o n l i n t t o the buyers. Appendix D shows the g e n e r a l -i z e d p a t t e r n of the stages c o f f e e and c o t t o n pass through t o re a c h t h e i r d e s t i n a t i o n . As f a r as the c o f f e e grower i n the Southern p a r t of Tanzania i s concerned, the second stage, namely, from-the buy-i n g s t a t i o n of the prima r y s o c i e t y to the c u r i n g f a c t o r y , i s a great l i m i t i n g f a c t o r . Absence of a c u r i n g f a c t o r y i n the area has meant t h a t the perchment c o f f e e has t o be moved about 800 m i l e s t o Moshi -- by road i n the case of c o f f e e grown.in the Eungwe and Mbozi areas, or by road t o Mtwara then by sea to Tanga and r a i l t o Moshi. The cos t of t r a n s p o r t i n g c o f f e e along these two a l t e r n a t i v e r o u t e s are £ 1 1 - £12 f o r the 21 former route and s l i g h t l y h i g h e r f o r the l a t t e r r o u t e . The s i t u a t i o n of the c o f f e e p r o d u c t i o n i n the Southern 2 0 I b i d . , p. 79. 2 1Rowe, J.W.F., The World's C o f f e e : A Study of the Economics and P o l i t i c s of the Coffee I n d u s t r i e s of C e r t a i n  C o u n t r i e s and of I n t e r n a t i o n a l Problem (London: Her Majesty's S t a t i o n e r y O f f i c e , 1963), p. 136. 8 5 a r e a should not be confused. High t r a n s p o r t c o s t s f o r moving' c o f f e e t o c u r i n g works at Iio s h i are not the l i m i t i n g f a c t o r . I t i s the absence of a l o c a l c o f f e e c u r i n g f a c t o r y , thus n e c e s s i t a t i n g the long movements mentioned p r e v i o u s l y , which i s the l i m i t i n g f a c t o r . The t o t a l amount of c o f f e e now bei n g produced i n the area i s s t i l l too s m a l l t o support a c u r i n g works. The minimum economical through-put of a c u r i n g works 22 i s 5,000 to n s . I f p r o d u c t i o n can be i n c r e a s e d t o a l e v e l where a c u r i n g f a c t o r y w i l l be f e a s i b l e , and c a p i t a l found to c o n s t r u c t one, the long haulage t o Moshi and, hence, the t r a n s p o r t c o s t s i n v o l v e d w i l l be e l i m i n a t e d . As f o r the p r i c e g i v e n t o the farmer: i t i s c a l c u -l a t e d t o cover s e r v i c e s , such as t r a n s p o r t t o gi n n e r y or c u r i n g works, g i n n i n g and c u r i n g , b a l i n g , storage and bagging, undertaken on h i s b e h a l f by the Union. I n the case of c o f f e e t r a n s p o r t t o c u r i n g works, the cos t c o n s t i t u t e s 13% of the t o t a l cost ( t r a n s p o r t , c u r i n g , sampling and storage) and o n l y about 3% of o v e r a l l c o s t s i n c u r r e d by K.N.C.U. per bag of 23 perchment c o f f e e . The cos t f o r t r a n s p o r t of c o t t o n t o g i n n e r i e s c o n s t i t u t e s about 4% of o v e r a l l c o s t s ( t r a n s p o r t , bagging, g i n n i n g and b a l i n g ) . The L i n t and Seed Marketing Board pays about 7% l o r t r a n s p o r t and storage of l i n t c o t t o n 22 ^ I b i d . 27) ^ C a l c u l a t e d from f i g u r e s i n Euthenberg, H., A g r i c u l t u r a l Development i n Tanganyika ( B e r l i n : S p r i n g e r -V e r l e g , 1964;, T ^ L l e 2 ^ 7 T ^ C l . 24 b e i n g d e l i v e r e d t o the consumer. . Thus, on the whole, the burden of t r a n s p o r t c o s t s shouldered by the peasant farmer i s s m a l l . H i s major r e -s p o n s i b i l i t y i s . t o d e l i v e r h i s crop t o the primary s o c i e t y . From there on i t i s the job of h i s Cooperative Union and a f f i l i a t e d marketing agencies t o meet the remainder of the c o s t s . The two cents or so, which i s deducted from h i s income a f t e r s e l l i n g , t o cover the d i r e c t c o s t s f o r the s e r v i c e s which w i l l be rendered, are minimal compared t o the p r i c e he r e c e i v e s f o r h i s crop. Transport c o s t s , t h e r e -f o r e , are s i g n i f i c a n t t o the marketing agencies, such as the K.N.C.U. and L i n t and Seed Marketing Board. The import-ance of t r a n s p o r t c o s t s i n t o t a l c o s t s i n c u r r e d f o r p r o v i d -i n g a l l the necessary s e r v i c e s by the Union and Marketing agencies i n the .past i s g i v e n on Table 16.(a) and 16 ( b ) . In the case of c o f f e e , f a c t o r y expenses ( h a n d l i n g , c u r i n g and h a n d p i c k i n g ) , " c o s t " on i n t e r e s t s and bank charges, and f o r s i s a l bags, are h i g h e r than t h a t f o r t r a n s p o r t to c u r i n g works. I t i s p o s s i b l e f a c t o r y expenses i n c l u d e t r a n s -p o r t c o s t s t o a sea p o r t s i n c e these c o s t s are not v e r y obvious. As f o r c o t t o n , however, the c o s t s f o r t r a n s p o r t , weighing, l o a d i n g and storage rank h i g h , i f those c o s t s f o r I b i d . , Table 29, p. 102. 87 TABLE 16 (a) KILIMANJARO NATIVE GO-OPERATIVE UNION LIMITED COFFEE SELLING SECTION - 1961/62 SEASON PROCESSING Twine, labels, stencils & brushes.... ' £2 ,638 Sisal bags for collection -Transport, from Societies to Curing works... 9,763 Handling, curing 8c handpicklng 42,394 Sisal bags for export.... 17,4^6 £72,281 SELLING Warehouse rent, sampling & sorting.......... £ 1,075 Liquoring & technical services.............. 425 Auction expenses 751 Brokerage: Auctioneers 51 Economic Advisor 4,232 6,534 GENERAL Coffee cess £ -Interest & Bank charges .... 10 ?621 In sur ance 1,801 Maintenance of scales at Societies 947 Printing stationery, i n c l . Kalamsoo Equip... 8,628 Overtime 1,221 Accountancy & supervision fees 575 Sundry expenses 491 24,284 Total £103,099 Source: Kilimanjaro Native Co-Operative Union Limited, Thirtieth Annual Report 1961-1962 (M 0shi, Tanzania) Appendix C TABLE 16 (b) ACCOUNT FOR PURCHASING COTTON LINT BI THE LINT AND SEED MARKETING BOARD FOR 1961-1962 CROP SEASON PURCHASES H9,971 Bales A.R. Lint £7,153,699 11,549 Bales B.R. Lint 321,443 £7,415,1.32 Delivery incentive paid to unions...... 68,875 Ginning quality bonus 8,615 Transport, weighing, loading storage & sundry charges 40,682 Bank charges «... 18,682 Classification expenses 7,464 Claires Paid! Quality £ 6,649 Bale Measurement.. 80 6,729 TOTAL £7,626,265 Source: Lint and S 3ed Marketing Board, Tanganyika. Report on Account for the Year endad 30th June. 1962 (Printed by Tanganyika Standard, Dar-ss-Salaam), Appendix I, p. 32. p u r c h a s i n g l i n t and f o r d e l i v e r y i n c e n t i v e s p a i d t o the Unions are overlooked. Bank charges c o n s t i t u t e the second h i g h e s t category of c o s t s . I n comparing these two Tables (mentioned p r e v i o u s l y ) , i t should be borne i n mind t h a t , u n l i k e the L i n t and Seed Marketing Board, the K.N.C.U. i s b o t h a Coop-e r a t i v e Union and a Marketing Agency comparable t o T.C.T.A. Thi s combines the f u n c t i o n s performed. byV.F.C.U. and L i n t and Seed Marketing Board f o r c o t t o n . ' Because of t h i s , some c o s t s are not v e r y apparent as has been i n d i c a t e d above. In view of these other h i g h charges, which are necess-ary i f the farmer i s t o continue t o b e n e f i t from the e x i s t e n c e of c o o p e r a t i v e and marketing board i n s t i t u t i o n s , r e d u c t i o n i n t r a n s p o r t c o s t due t o d e l a y and l a c k of storage f a c i l i t i e s — as was p o i n t e d out e a r l i e r — w i l l a s s i s t i n r e d u c i n g o v e r a l l expenditure and p r o v i d e a h i g h e r p r o f i t . One of the reasons f o r h i g h bank charges i n the case of the L i n t and Seed Market-i n g Board i s due t o the poor t r a n s p o r t f a c i l i t i e s and d e l a y s . 2. Railway and Road Transport as F a c t o r s i n the Economic Growth  of S.E. Tanzania: A s i g n i f i c a n t happening from an economic development and comprehensive p l a n n i n g view p o i n t i n the economic growth of Tanzania, was the Groundnut Scheme. "^Personal l e t t e r from L i n t and Seed Marketing Board, op. c i t . 90 T h i s Scheme-was a p l a n by the B r i t i s h Government, a f t e r the Second World War, t o grow peanuts i n the B r i t i s h dependencies f o r export t o England and Europe t o meet the shortage of vegetable o i l s . The l a r g e s t p o r t i o n of the scheme was t o be e s t a b l i s h e d i n Tanganyika, under the auspices of the 26 Overseas Food C o r p o r a t i o n , w i t h a c a p i t a l of £ 2 5 m i l l i o n . The Scheme i n v o l v e d the c l e a r a n c e of 20,000 a c r e s ; i n the former Western (Urambo), C e n t r a l (Kongwa) and Southern (Nachingwea) P r o v i n c e s . By 1950, however, the Scheme proved 27 a f a i l u r e and was abandoned. T h i s Scheme put a l o t of s t r a i n on the poor t r a n s p o r t system of the covmtry f o r moving an imported supply of heavy machinery. But i t a l s o l e f t the country w i t h t r a n s p o r t a s s e t s of a r a i l w a y and a new seaport at Mtwara i n the former Southern P r o v i n c e . From a p l a n n i n g p o i n t of view, the "consequence of the massive groundnut scheme i s the powerful r e i n f o r c e m e n t i t gave i n view t h a t m o d e r n i z a t i o n and development f o r Tanganyika 28 depends upon a n a t i o n a l l y planned a g r i c u l t u r a l development". One of the areas s e l e c t e d f o r the scheme was Naching-wea i n the former Southern P r o v i n c e . When the scheme f a i l e d , the r a i l w a y was r e t a i n e d w i t h the hope t h a t "by l o w e r i n g a M o f f e t , op. c i t . , p. 133. 27 'For d e t a i l s about the Groundnut Scheme, see Wood, A. The Groundnut A f f a i r (The Bodley Head, 1956). 28 Burke, op. c i t . , p. 39. 91 f r e i g h t c o s t s on both imports and exports i t w i l l encourage bus i n e s s e n t e r p r i s e and i n some p a r t s w i l l enable c e r t a i n . crops t o be grown e c o n o m i c a l l y which have not been worthwile 29 i n the past owing t o the h i g h c o s t of road h a u l " . The t r a f f i c t o be c a r r i e d by the r a i l w a y was estimated at 121,000 tons i n 1953, and was expected t o r i s e t o 242,000 tons by I960. A c t u a l t r a f f i c c a r r i e d , however, was 32,043 30 and 25,064 tons i n 1953 and I960, r e s p e c t i v e l y . I n the long r u n , the r a i l w a y became uneconomic t o operate. Between 1955 and i960, i t operated at an o v e r a l l l o s s of between £210,000 and £250,000 per annum, which had t o be made good by the Tanganyika Government t o the Railway A d m i n i s t r a t i o n . The l i n e was f i n a l l y c l o s e d and removed i n 1962. When the r a i l w a y was under c o n s t r u c t i o n , there was a d e t a i l e d programme f o r c o n s t r u c t i o n and improvement of roads, which i n c l u d e d a t r u n k road l i n k i n g the coast w i t h i n l a n d - 31 s e t t l e m e n t s and, i n p a r t i c u l a r , Songea. This road, when i t was completed and opened f o r p u b l i c use, p r o v i d e d a more f l e x i b l e s e r v i c e of moving t r a f f i c than the r a i l w a y . Road t r a n s p o r t , t h e r e f o r e , a t t r a c t e d more export and import t r a f f i c t han the r a i l w a y . For example: out of the 34,000 tons of 29 yA Review of D velopment P l a n s i n the. Southern P r o v i n c e (Dar-es-Salaam: Government P r i n t e r , 1953) 7~P- 42. 30 O'Connor, A.M., Railways and Development i n Uganda (E.A.l.S.R. - Oxford U n i v e r s i t y P r e s s , N a i r o b i , 1965), pT~T4"2. 31 Review of Development P l a n , op. c i t . , pp. 40-41. 92 cargo r e c e i v e d at the p o r t of L i n d i and Mtwara i n I960, l e s s 32 than 2,000 tons was moved i n l a n d on the r a i l w a y . The Southern P r o v i n c e , before i t was d i v i d e d i n t o the present two r e g i o n s of Mtwara and Ruvuma, formed the second l a r g e s t a d m i n i s t r a t i v e u n i t i n the country. Good i n t e r n a l communications were e s s e n t i a l both f o r a d m i n i s t r a t i o n and economic development. The area i s not p o o r l y endowed w i t h r e s o u r c e s , both a g r i c u l t u r a l and m i n e r a l , compared t o other p a r t s of Tanzania. I t has c o a l and i r o n ore d e p o s i t s , 400 and 45 m i l l i o n t o n s , r e s p e c t i v e l y , s t i l l awaiting.development when s u f f i c i e n t demand and c a p i t a l e x i s t . The World Bank' Report a t t r i b u t e d one of the reasons which impedes p r o d u c t i o n on a commercial b a s i s was the remoteness of the area from the 33 coast and from r a i l t r a n s p o r t f a c i l i t i e s . The area i s the l e a d i n g prodxicer of cashewnut, which has been shown to have i n c r e a s e d i n importance as a major export crop of the country. Despite i n c r e a s e i n p r o d u c t i o n , however, a great p r o p o r t i o n of the export t r a f f i c of t h i s crop d i d not move by r a i l . Out of the export p r o d u c t i o n of 30,000 t o n s , o n l y 7,775 tons moved by r a i l w a y — l e s s than a t h i r d of the t o t a l p r o d u c t i o n . The area produces about 5.3% of the t o t a l s i s a l of 32 O'Connor, A . M . , Railway C o n s t r u c t i o n and the P a t t e r n  of Economic Development i n East A f r i c a (paper now p r i n t e d i n T r a n s a c t i o n s of the I n s t i t u t e of B r i t i s h Geographers, Ko. 36, June 1965), p. 4. ^IBRD. , op. c i t . , p. 148. 95 the country. The p r o d u c t i o n of s i s a l i n the area i n c r e a s e d 34 35 from 8,074 tons i n 1947 t o 12,268 tons i n 1963. Export t r a d e of major products betv/een 1952 and 1962, shown i n the t a b l e below, i n c r e a s e d except f o r timber which s u f f e r e d a d e c l i n e by about 50%. TABLE 17 EXPORT TRADE OP FORMER SOUTHERN PROVINCE 1952 - 1963 Tons Exported Commodity 3& 1952 Cashewnuts 9,740 Cassava 16,927 S i s a l •. 11,159 Groundnuts 738 Coffee 196 Timber 4,540 The l e s s o n t o be l e a r n e d fro-m the f a i l u r e of the Southern Railway i s t h a t the l i n e , i n c o n t r a s t t o road development and improvement i n the are a , was not o r i e n t e d to 54 y Review of Development P l a n , op. c i t . , p.14. 35 "^Guide t o P r e p a r a t i o n of Regi o n a l F i v e Year P l a n -Mtwara Region ( D i r e c t o r a t e of Development and P l a n n i n g ) . 36 Review of Development P l a n , op. c i t . - , p. 14. ^ H o y l e , B.S.. The Seaports of East A f r i c a : A Geographical Study ( N a i r o b i : East A f r i c a n P u b l i s h i n g House, 1967), p. 70. 94 the l o c a l economy. The economic base, and p a t t e r n of economic a c t i v i t i e s had a l r e a d y been e s t a b l i s h e d when the r a i l w a y entered i n t o the p i c t u r e . There was no doubt by 1952 t h a t road t r a n s p o r t was p l a y i n g a l e a d i n g r o l e i n the a r e a , j u d g i n g from the l e v e l of 38 t r a f f i c which on most roads exceeded 100 v e h i c l e s , a day. Road improvement, which oc c u r r e d s i m u l t a n e o u s l y w i t h r a i l w a y c o n s t r u c t i o n , helped t o s t r e n g t h e n and make obvious the advantage the l o r r y had over the r a i l w a y of having been the f i r s t mode of t r a n s p o r t t o be e s t a b l i s h e d i n the area. U n l i k e the N orthern a r e a , where r a i l w a y preceeded motor t r a n s p o r t as the f i r s t modern means of t r a n s p o r t a t i o n , i n the Southern area motor t r a n s p o r t was the f i r s t and i s s t i l l the dominant mode ~ though not n e c e s s a r i l y the cheap-est i n some areas. Road improvement helped to reduce o p e r a t i n g c o s t s , thus e n a b l i n g motor f i r m s and operators t o charge the same r a t e s as those b e i n g charged by the r a i l w a y . C o n t r a r y t o the b e l i e f at the time of b u i l d i n g the Southern Railway, i t was the l e v e l of s e r v i c e , r a t h e r than l a c k of a cheaper mode of t r a n s p o r t , which was r e q u i r e d . The r a i l w a y d i d not meet t h i s requirement because ab i n i t i o , i t was not o r i e n t e d t o the needs of the area. I t o n l y served t o d i v e r t the a t t e n -t i o n of road programming and d e l a y i t s implementation. When t h i s was f i n a l l y e f f e c t e d , growth of the economy of the area 38 Review of Development P l a n , op. c i t . , p. 41. 95 v;as a c c e l e r a t e d . I f the l e v e l of development achieved i n the area was l e s s than i t should have been, the reason must be sought i n oth e r causes. N o t a b l y , i n those f a c t o r s other than inadequate t r a n s p o r t f a c i l i t i e s , which, t o date, s t i l l i n h i b i t r a p i d development of the economy of Tanzania as a whole. Even i f the Groundnut scheme had succeeded and managed t o p r o v i d e s u f f i c i e n t t r a f f i c f o r the l i n e , i t i s u n l i k e l y t h a t i t would have done much t o i n f l u e n c e the p o s i t i o n of road t r a n s p o r t i n the area. The r a i l w a y was p a r t of a superimposed scheme geared t o o u t s i d e needs. When the scheme f a i l e d , the r a i l w a y c o u l d not be made t o f i t i n t o a l o c a l economy which was geared t o road t r a n s p o r t a t i o n . CHAPTER V THE ROLE OP TRANSPORTATION IN TANZANIA'S ECONOMIC GROWTH 1- Transport Investment B e n e f i t s Exact f i g u r e s on the amount i n v e s t e d i n t r a n s p o r t a t i o n f o r Tanzania as a whole are hard t o a r r i v e a t , because of s c a r c i t y of d a t a , e s p e c i a l l y b e f o r e 1948. Only a s l i g h t attempt has been made here t o assess the magnitude of pre-1948 t r a n s p o r t investment. Roughly £11.1 m i l l i o n was spent i n b u i l d i n g r a i l w a y s , the p u r c h a s i n g of r o l l i n g s t o c k , r e h a b i l i -t a t i o n and compensation t o Germany between 1919 - 1939. Most of t h i s c a p i t a l was p r o v i d e d by l o a n s , the a l l o c a t i o n of which, between the t e r r i t o r y and i t s r a i l w a y s , i s shown on Table 18 o v e r l e a f . TABLE 19 PROPORTION OP DEBT CHARGES TO DOMESTIC EXPORTS AND REVENUE - 1928-1935 _ ' • % of Debt ~ ~ ~ Debt Domestic Charges t o Revenue % of Debt Year Charges Exports Domestic Charges to Exports Revenue 1928 158 3,873 4.1 1,973 8.0 1929 214. 3,722 5-7 1,993 10 . 7 1930 227 2,636 8.6 1,74-9 13.0 1931 311 1,645 18 .9 1,522 20.4 1952 189 2,190 8.6 1,291 14.6 1953 585 2,543 15-1 1,565 24.6 1954 425 2,646 16.1 1,720 24 .7 1955 451 , 3 , 4 4 5 12 . 5 1,974 21.8 F i g u r e s g i v e n i n £'000,00"OT~ Source: F r a n k i e l , H.S., C a p i t a l Investment i n A f r i c a (Oxford U n i v e r s i t y P r e s s , 1938), Tables B7, p. 179, B8, pp. 180-185. TABLE 1$ PROPORTION OF PUBLIC DEBT ACCOUNTED FOR TERRITORIAL AND RAILWAY SERVICES, 1931/32 Capital Amount Annual Service Charges Source and Type of Loan Territory Railways Expense & Discount Total Territory Railways"' Total Imperial Exchequer £ 761,4-00 £1,286,442 £ £2,047,342 £ 46,400 £ 70,186 £123,586 Imperial Exchequer (no interest chgs.) 556,983 518,525 - 1,075,508 - - -I Total £1,318,383 £1,804,967 £3,123,350 £ 46,400 £ 77,136 £123,586 II Guaranteed Loan 4--1/2, 1948/63 £ 144-, 411 £1,799,393 £126,196 £2,070,000 £ 8,761 £109,160 £117,921 III Guaranteed Loan IS, 1931-1971 638,863 2,122,794 233,34-3 3,000,000 36,062 119,838 155,900 IV Guaranteed Loan A%, 1932 651,224* 78,756 20,000 750,000 32,563 3,937 36,530j Total I - IV £2,752,901 £5,805,910 £334,539 £3,943,350 £123,786 £310,121 £433,907 V Colonial Develop-ment funds; Loans (1932 - 1941) £ 39,900 £ £ - £ 39,900 £ 5,279 (average) £ - £ 5,279 GRAND TOTAL £2,792,801 £5,805,910 £334,539 £8,933,250 £129,065 £310,121 £439,186 * (refers to £500,000 received by that time) Source; Smith, A., Financial Mission to Tanganyika , "(London": H.M. Stationery Office, 1932), Cmd. 4182, p. 46. vO 98 Railways were a l l o c a t e d t w o - t h i r d s of t o t a l c a p i t a l from l o a n s . I n view of the f a c t t h a t r a i l w a y s operated at a l o s s , these loans had t o be s e r v i c e d from General Revenue. Thus, although domestic exports and revenue i n c r e a s e d (except i n the p e r i o d of d e p r e s s i o n 1931-1932), debt charges consumed a f a i r p r o p o r t i o n of the export and revenue r e c e i p t s . Table 19 shows the p r o p o r t i o n taken by p u b l i c debt from export revenue and g e n e r a l revenue. By 1939* the per 1 c a p i t a debt charges had amounted t o £1. 13s. 9d. In c o n t r a s t , the net t o t a l revenue of the country i n the same p e r i o d was 2 o n l y £33 m i l l i o n or about £ 2-1/2 m i l l i o n per annum. ) Thus, i n these two decades the budget of the country was meagre i n comparison t o the needs and problems of the country. But t h i s s m a l l budget had t o accommodate the r a i l -way debt I A f t e r 1948, the investment r e f e r r e d t o , w i t h regards t o r a i l w a y s , i s t h a t which was i n c u r r e d by the government to s u b s i d i z e n o n - p r o f i t making: l i n e s . Between 1954 and I960 -1961, s l i g h t l y over £1 m i l l i o n was expended by the government 3 t o make good the l o s s e s of the Railway A d m i n i s t r a t i o n . Investment i n roads reached a t o t a l of about £1.4 m i l l i o n at the end of 1950. A f t e r t h a t y e a r , t h e r e was i n -c r e a s i n g expenditure f o r maintenance, r e a c h i n g a l e v e l of . ^Leubuscher, op. c i t . , p. 335* 2 M o f f e t , op. c i t . , p. 335. ^IBRD., op. c i t . , p. 20. F i g u r e 3: EXPENDITURE ON RO£D MAINTENANCE AND DEVELOPMENT 99 £»000 '• Development Expenditure l o g 1948 '49 r50 '55/6 '56/7 '57/8 '58/9 '59/60 '60/1 '6l/2 '62/3 '63/4 '64/5 Source: Stalisticai^Abstract 1 1959 & 1964, Central Statistical Bureau, (Bar-es-Salaam: Government Printer) Figure A COMPARISON OF EXPENDITURE ON ROAD MAINTENANCE AND REVENUE FROM MOTOR VEHICLE LICENCES £•000 1,500 . 1,300 . 1,100 . 900 _ 700 500 _ 300 _ Road Maintenance Expenditure — * Motor Vehicle Licence Revenue 100 i 1—- 1 1 1 1 1 1 r 1955/56 »56/7 '57/8 '58/9 ' 59/60 60/1 '61/2 '62/3 '63/4 ' 6 V 5 Source: S t a t i s t i c a l Abstract , op. c i t . 101 £1.6 m i l l i o n , i n 1961. E x p e n d i t u ^ on road development tended to d e c l i n e between 1955 - 1959-60, when i t went up a g a i n at the b e g i n n i n g of the Three Year P l a n . From 1962, i t s t a r t e d t o f a l l o f f a g a i n u n t i l the beginning of the F i v e Year P l a n . F i g u r e 5 d e p i c t s the t r e n d e x p l a i n e d above. The i n c r e a s i n g c a p i t a l expenditure on road, maintenance r e f l e c t s the r a p i d d e t e r i o r a t i o n of roads as t r a f f i c volume i n c r e a s e d and because of the sub-standard c o n d i t i o n of the roads. The money used f o r road improvement came from General Revenue. The. road users' c o n t r i b u t i o n t o t h i s p o o l was mostly i n the form of i n d i r e c t t a x a t i o n on imported motor v e h i c l e s and road t r a n s p o r t equipment, motor f u e l t a x , and, more i m p o r t a n t l y , from motor v e h i c l e l i c e n c e s . Because of the nature of the data on revenue obtained from these items, i t i s o n l y p o s s i b l e t o show the revenue d e r i v e d f o r the. l a s t item. Revenue from motor v e h i c l e l i c e n c e s i n c r e a s e d a l l the t i m e , as can be seen from F i g u r e 4-. But t h i s was o n l y h a l f of what road maintenance was c o s t i n g , which d i d not i n c l u d e c a p i t a l f o r new road development. I n p r a c t i c e , the balance needed to meet maintenance and the p r o v i s i o n of new roads had t o come from other sources. Thus, road maintenance con-sumed a s i z a b l e p r o p o r t i o n of the l i m i t e d r e s o u r c e s . By so d o i n g , l e s s had t o be spent i n other s e c t o r s of the economy or even f o r the c o n s t r u c t i o n of new roads, e.g., feeder roads. The d e c l i n e of expenditure on road development between 1956 and I960,- supports t h i s o b s e r v a t i o n (see F i g u r e 3 ) . 102 Figure 5: V^lue of Imports-of. R a i l and Ro?d Transport Equipment £'000 3,000 2,500 J 2,000 1,500 1,000 A 500 -I R a i l Road A /V , / \ s s 1950 «51 5^2 »53 '54- '55 ^ ~*57 *5l *59 *S5 ~»5 Source: St a t i s t i c a l Abstract, op. p i t . Figure 6: A C o m p a r i s o n o f V a l u e s o f I m p o r t s and Import D u t i e s on R a i l »nd Rond Equipment 103 £'000 1950 '51 '52 '53 '54 *5~5 ^ «57 '58 '59 '6b 6^1 '62 '63 Source: Statistical Abstract, op. c i t . 104 Both r a i l and road had t o depend (and s t i l l do) on imports f o r t h e i r equipment. To get t h e s e , the country had to pay i n f o r e i g n exchange. Although the post Second World War demand f o r t r a n s p o r t equipment has f l u c t u a t e d , p a r t i c u -l a r l y t h a t of r a i l w a y s , because of the lo n g l i f e of t h i s equipment, i t c o n s t i t u t e d a l a r g e investment as shown i n F i g u r e 5« T h i s demand c r e a t e d a market f o r f o r e i g n imported t r a n s p o r t equipment. Thus, the b e n e f i t s from l o c a l t r a n s p o r t manufacture i n d u s t r y was n o n - e x i s t e n t . Whatever b e n e f i t s arose accrued t o overseas s u p p l i e r s . The b e n e f i t t o Tanzania was mainly i n the form of i n d i r e c t t a x a t i o n on such imports. These, however, were s m a l l compared t o t o t a l v a l u e of both r a i l and road equipment imported i n t h i s p e r i o d , as F i g u r e 6 shows. To have charged h i g h e r import d u t i e s would have r e -s u l t e d i n the i n c r e a s e i n the p r i c e of the equipment and, a l s o , i n more f o r e i g n exchange payments. 2. The Past Role of Transport i n Tanzania's Economic Growth: An Assessment The e v o l u t i o n of r a i l and road t r a n s p o r t , and the economic growth of mainland Tanzania has been d i s c u s s e d . I f we take the b e g i n n i n g of the establishment of German C o l o n i a l A d m i n i s t r a t i o n as marking the s t a r t i n g p o i n t of a modern economic system of the c o u n t r y , i t i s important t o remember t h a t a l l t h i s has taken p l a c e i n a v e r y s h o r t p e r i o d of time — j u s t over 50 y e a r s . The f a c t t h a t the economic development 105 of Tanzania i s v e r y r e c e n t , has been s t r e s s e d by the World Bank Report. When a s s e s s i n g the r o l e of r a i l , road and other t r a n s p o r t f a c i l i t i e s i n g e n e r a l , t h i s f a c t should be borne i n mind. The r a i l w a y s , which i n Tanzania, preceeded-road-development, reduced t r a v e l l i n g time and c o s t s , p a r t i c u l a r l y between i n l a n d c e n t r e s and the c o a s t a l a reas. I t marked the end of long caravans of p o r t e r s to and from the c o a s t , which had been the f e a t u r e of p r e - r a i l w a y e r a . I n t e r n a l movement, however, r e l i e d on p o r t e r a g e , e s p e c i a l l y i n a n o r t h - s o u t h d i r e c t i o n ; and i t was not u n t i l the b u i l d i n g of roads a f t e r the F i r s t World War and the subsequent i n t r o d u c t i o n of motor t r a n s p o r t t h a t the d e f i c i e n c y was met. Porterage as a form of t r a n s p o r t a t i o n , p r i m i t i v e as i t i s , was not completely e l i m i n a t e d . I t s t i l l forms an important l i n k of the d i s t r i b u t i o n system, where i t i s more economical than r a i l or road t r a n s p o r t . I t should, t h e r e f o r e , be regarded as an i n t e g r a l p a r t of a "modern" t r a n s p o r t system r a t h e r than a l e g a c y of the p a s t . Although i t would appear t h a t i t s days are numbered i n view of the i n c r e a s i n g p o p u l a r -i t y of the b i c y c l e , - w h i c h ' p r o v i d e s a b e t t e r s e r v i c e and f l e x -i b i l i t y . The overcoming of d i s t a n c e i n space, which was achieved by the r a i l w a y s , was o r i e n t e d towards export (raw m a t e r i a l s ) and import (manufactured) t r a d e . The road system which evolved 106 i n p ost Second World War p e r i o d , accentuated i n a n o r t h - s o u t h d i r e c t i o n t h i s " l i n e a r " aspect of r a i l / r o a d t r a n s p o r t f a c i l -i t i e s . A network system i s y e t t o develop. Although the i n t e g r a t i o n between r a i l / r o a d was achieved p h y s i c a l l y , the absence of a feeder road system reduced i t s e f f e c t i v e n e s s . Thus the most important r o l e p l a y e d by r a i l w a y s was t o f a c i l -i t a t e export and import t r a d e . T h i s achievement was i n e v i t -a b le because i t ' w a s the r a i s o n d'etre f o r r a i l w a y c o n s t r u c t i o n . As i n I n d i a and many former c o l o n i a l t e r r i t o r i e s , the r a i l w a y l i n k e d Tanzania to i n t e r n a t i o n a l t r a d e as- a s u p p l i e r of raw m a t e r i a l s and consumer of manufactured goods. T h i s r o l e was strengthened by the "open door trade p o l i c y " pursued under the mandate system. By and l a r g e , the i n t e r n a l market v;as n e g l e c t e d . Road development, which c o u l d have been r e -garded as a more f l e x i b l e t r a n s p o r t mode f o r such development, was not developed t o open up the i n t e r n a l market. S i m i l a r to the r a i l w a y a f t e r 1948, the main road system was intended f o r a d m i n i s t r a t i o n , s t r a t e g y and i n t e r - t e r r i t o r i a l t r a d e . When a customs union between Kenya, Uganda and Tanganyika, was e s t a b l i s h e d w i t h a common t a r i f f , the presence of good i n t e r -t e r r i t o r i a l t r a n s p o r t r o u t e s opened Tanganyika as a market f o r Kenya goods and made the Northern p a r t of the country dependent upon the d i s t r i b u t i v e trade of Kenya and Uganda. I t i s not the argument here t h a t i f t r a n s p o r t f a c i l -i t i e s had been geared towards encouraging the expansion of 107 an i n t e r n a l market, t h i s would have f a c i l i t a t e d r a p i d growth. Other f a c t o r s , such as c a p i t a l and i n c r e a s e i n p r o d u c t i v i t y had t o be pr e s e n t . However, assuming f o r the moment t h a t the amount of c a p i t a l which flowed i n t o Tanzania, and the l e v e l of p r o d u c t i v i t y achieved i n the p e r i o d under review were above average, t r a n s p o r t f a c i l i t i e s o r i e n t e d t o i n t e r n a l market needs would have encouraged the establishment of those i n -d u s t r i e s f o r which the market e x i s t e d and hence reduced the i n c r e a s i n g dependency of the country t o Kenya im p o r t s . L o c a l raw m a t e r i a l s c o u l d have been used to manufacture these p r o d u c t s . The p o l i c i e s which guided the development of cus-toms union i n East A f r i c a d i d not favour Tanzania and thereby l i m i t e d an i n c r e a s e d l e v e l of economic growth i n a r e g i o n a l framework. Other f a c t o r s were more s i g n i f i c a n t than t r a n s p o r t a -t i o n i n the r a p i d growth of export t r a d e . The i n c r e a s e i n import trade was determined by the i n c r e a s e i n income from s e l l i n g export p r o d u c t s . The most important f a c t o r as f a r as export t r a d e i s concerned i s the wor l d p r i c e f o r primary products upon which Tanzania i s dependent f o r i t s revenue. The e f f e c t of the f l u c t u a t i o n i n the world p r i c e of s i s a l , the mainstay of the country's economy, has been and s t i l l i s important i n i n f l u e n c i n g the t r e n d i n the economic develop-ment of the country. The f a v o u r a b l e p r i c e s which were enjoyed by t h i s crop d u r i n g the Korean boom, p r o v i d e d revenue which 108 enabled the government t o embark on ambitious programmes and, i n p a r t i c u l a r , road development. To t h i s day, revenue ob t a i n e d from s i s a l by the government s t i l l a f f e c t s budgetary c o n s i d e r a t i o n i n a s s e s s i n g annual expenditure on development p r o j e c t s , as can be l e a r n e d from a r e c e n t budget speech: The g r e a t disappointment.has been s i s a l export t a x revenue, which we o r i g i n a l l y estimated would y i e l d £2.8 m i l l i o n . The f i n a l y i e l d i s not l i k e l y t o ex-ceed £800,000 — a s h o r t f a l l of £ 2 m i l l i o n . Taking a l l these f a c t o r s i n t o c o n s i d e r a t i o n , my r e v i s e d estimate of t o t a l revenue f o r the year i s £ 33 m i l l i o n as compared w i t h my budget estimate of £34 m i l l i o n . 4 I n a d d i t i o n , the v i a b i l i t y of the s i s a l i n d u s t r y i n terms of p r o d u c t i o n c o s t s has been the a v a i l a b i l i t y of c a p i t a l and l a b o u r . These two f a c t o r s have been more s i g -n i f i c a n t than t r a n s p o r t c o s t s ( I n l a n d ) . As shown above, the t a p e r i n g of r a i l w a y t a r r i f r a t e s and the closeness of the s i s a l p l a n t a t i o n s t o sea p o r t s , makes t r a n s p o r t a l e s s s i g -n i f i c a n t cost i n the o v e r a l l p r o d u c t i o n process up t o the time when s i s a l i s shipped overseas.- N e i t h e r can the present l o c a t i o n of the s i s a l p l a n t a t i o n s be a t t r i b u t e d s o l e l y to r a i l f a c i l i t i e s , as was shown e a r l i e r . I n the p r o d u c t i o n of other export c r o p s , namely, c o t t o n , c o f f e e and cashewnuts, wo r l d p r i c e s f o r these commod-i t i e s have e q u a l l y been important. However, the e s t a b l i s h -ment of c e n t r a l i z e d marketing through c o o p e r a t i v e s and. 4 U n i t e d R e p u b l i c of Tanzania, Speech by the  Honourable, the M i n i s t e r for Finance, i n t r o d u c i n g the •Est imates of Revenue and Expenditure 'T^6~^T€6 to N a t i o n a l Xssembly, on *IOth June, ''l^^r^Dar-es-ffaTaam: Government' P r i n t e r , 1965), p. 6. 109 marketing boards has been v e r y c r u c i a l i n t h a t they have i n -s u l a t e d the peasant farmer from the a f f e c t s of f l u c t u a t i o n i n w o r l d p r i c e s , and, i n so do i n g , p r o v i d i n g a s t a b l e p r i c e i n c e n t i v e f o r i n c r e a s e d p r o d u c t i o n . These i n s t i t u t i o n s a l s o c a r r y out. on b e h a l f of the peasant farmer those s e r v i c e s which would have been beyond the means of a s i n g l e farmer i f he were t o produce h i s c o t t o n or s i s a l e conomically and r e c e i v e a good r e t u r n . Although i n the o r y one can t a l k of t r a n s p o r t c o s t s i n su b s i s t e n c e p r o d u c t i o n ( w i t h the e x c e p t i o n of the i n i t i a l c o s t borne by the f a r m e r ) , these c o s t s are shared by many peasant farmers. T h e r e f o r e , the t r a n s p o r t c o s t s are a c t u a l l y a s m a l l percentage of the o v e r a l l income he r e c e i v e s , p l u s f r i n g e b e n e f i t s f o r b e i n g a member of a c o o p e r a t i v e s o c i e t y . These economic i n s t i t u t i o n s , developed t o meet the need of a peasant and l a r g e l y s u b s i s t e n c e economy, have been the key to the economic growth and. p r o s p e r i t y of the r u r a l a r e a s , and Tanzania i n g e n e r a l . I t must be remembered t h a t the achievement, though f a r from s a t i s f a c t o r y , has come about d e s p i t e an inadequate feeder road system, as w e l l as poor t r a n s p o r t s e r v i c e due t o inadequate wagons and storage f a c i l -i t i e s . A l s o , the l e v e l of economic growth achieved t o date, l a r g e l y by i n c r e a s e d a g r i c u l t u r a l p r o d u c t i o n , was by use of poor and p r i m i t i v e methods of p r o d u c t i o n . I n the l i g h t of 5 present knowledge of experimenting w i t h new farming methods, 5 ^Smith-, op. c i t . , pp. 51-52. 110 p r e s e n t l e v e l s of p r o d u c t i o n can be doubled and even t r e b l e d ( e . g . , c o t t o n p r o d u c t i o n ) . The p r e v a i l i n g low p r o d u c t i v i t y of the s u b s i s t e n c e s e c t o r , which c o n s t i t u t e s the l a r g e s t market, has been a l i m i t i n g f a c t o r , t o o . T h i s p r o v i d e d o n l y a s u b s i s t e n c e l e v e l of income and l i m i t e d demands t o b a s i c needs. At the same time, i t has minimized p r e s s u r e which would have been put on the poor t r a n s p o r t f a c i l i t i e s . Had t h i s happened, i t would have acted as a c a t a l y s t i n t r a n s p o r t improvement by e l i m i n a t -i n g those b o t t l e n e c k s , which c o n s t i t u t e s the p r e s e n t t r a n s p o r t problem of the country s t a t e d e a r l i e r . A l s o , although t h e r e was an i n c r e a s e i n the supply of c a p i t a l from l o c a l sources due t o i n c r e a s e i n export produc-t i o n , t h i s amount has been l e s s than what would have been achieved had l e v e l s of p r o d u c t i o n been h i g h e r . To be e f f e c t -i v e , t r a n s p o r t a t i o n imist be r e l a t e d t o p r o d u c t i v i t y and, above a l l , t o balanced growth. When e v a l u a t i n g the r o l e of t r a n s p o r t a t i o n i n a d e v e l o p i n g country, such as Tanzania, the most important f a c t o r i s the c o s t of these necessary s e r v i c e s . In the case of Tanzania, and t h i s i s much more r e l e v a n t t o r a i l w a y r a t h e r than road development, t h i s p r i c e was too h i g h . The "cost of c a p i t a l " used t o b u i l d r a i l w a y s were t o t a l l y beyond the means For a d e t a i l e d d i s c u s s i o n of the r e l a t i o n s h i p between P r o d u c t i v i t y , Market, T r a n s p o r t a t i o n and C a p i t a l , see: Nurske, R., Problems of C a p i t a l Formation i n Under- developed C o u n t r i e s ; and, Pattern's of Trade and Development. I O x f o r d U n i v e r s i t y P r e s s , 1967), pp. 4-31. I l l of the country i n i t s e a r l y stages of economic growth. An average of 4.48% i n t e r e s t had t o be set aside f o r a m o r t i z i n g loans borrowed t o b u i l d r a i l w a y s . T h i s c r i p p l e d the f i n a n c i a l as w e l l as c a p i t a l a v a i l a b i l i t y f o r economic development i n g e n e r a l . Although the h i g h c o s t of c a p i t a l was not c o n f i n e d 7 t o Tanganyika, the many disadvantages the country had as compared t o other p a r t s of A f r i c a , which r e s u l t e d i n f u r t h e r f l i g h t of c a p i t a l , meant t h a t a u s t e r i t y measures i n the a l l o c a t i o n of the a l r e a d y l i m i t e d amount of c a p i t a l was e s s e n t i a l t o achieve a balanced growth. The t o t a l amount of c a p i t a l used t o repay r a i l w a y debt before 1948, d i v e r t e d c a p i t a l which should have been i n v e s t e d i n other s e c t i o n s of the economy to e s t a b l i s h a base f o r f u t u r e development. Thus, when r a i l w a y s are compared t o roads, they i n h i b i t e d develop-ment because of d i v e r t i n g c a p i t a l to non-productive a c t i v -i t i e s . . The roads, on the ot h e r hand, were l a r g e l y f i n a n c e d from i n t e r n a l c a p i t a l . But, because the i n i t i a l road stand-ards were v e r y low, t h i s r e s u l t e d i n h i g h maintenance c o s t s . A f t e r 1948, i t was the roads r a t h e r than r a i l w a y s which c a l l e d f o r i n c r e a s i n g expenditure i n the government budget. The experience of Tanzania i n r a i l and road develop-ment poses two i s s u e s i n t r a n s p o r t a t i o n development. F i r s t , ^ F r a n k i e l , H., C a p i t a l I n v e s t m e n t i n A f r i c a (Oxford U n i v e r s i t y P r e s s , 1958), p. 174. 112 i n r e g a r d t o the r a i l w a y s , i s the s i z e of the country. Can i t he s a i d t h a t the i n i t i a l f a i l u r e of the r a i l w a y s was due t o the smallness of the cou n t r y , s i n c e the neighbouring Kenya-Uganda r a i l w a y , which served two c o u n t r i e s as w e l l as the Northern p a r t of Tanzania, operated on a p r o f i t ? A l s o , i t was p o i n t e d out t h a t one of the causes of l o s s of revenue f o r the Tanganyika r a i l w a y s was due t o the d i v e r s i o n of Congo t r a f f i c . The p o v e r t y of the country has a l s o been co n s i d e r e d 8 as having been an o b s t a c l e t o r a i l w a y development. When the amalgamation took p l a c e , the p r o p o r t i o n of t r a f f i c moved along the Tanganyika r a i l w a y s was. s t i l l l e s s than t h a t along the Kenya-Uganda r a i l w a y . I t was the d i s t r i b u t i o n of p r o f i t s from a c e n t r a l p o o l r a t h e r than the i n c r e a s i n g e a r n i n g capac-i t y of the l i n e which accounted f o r i t s solvency. As f a r as volume of t r a f f i c along the two main l i n e s i s concerned, the Tanzania s e c t i o n s t i l l c a r r i e s l e s s t r a f f i c than t h a t which o r i g i n a t e s from the h i n t e r l a n d w i t h i n the n a t i o n a l boundaries. The second p o i n t t o c o n s i d e r i s the d i v i s i o n of r e s p o n s i b i l i t y i n the p r o v i s i o n and maintenance of r a i l w a y s and roads. I n East A f r i c a , t h i s i s d i v i d e d between the R a i l -way A d m i n i s t r a t i o n , which i s a p u b l i c c o r p o r a t i o n , and the i n d i v i d u a l governments. I n the case of Tanzania, t h i s d i v i -s i o n enabled more money t o be spent on road development. I b i d . , p. 282. 113 But t h e r e was no i n t e r - t e r r i t o r i a l c o o r d i n a t i o n of road development, as was the case w i t h r a i l w a y development a f t e r 1948. The sug g e s t i o n t o e s t a b l i s h an East A f r i c a n Road C o r p o r a t i o n recommended by the Royal Commission of 1953-1955, d i d not m a t e r i a l i z e . Thus, each country developed d i f f e r e n t p o l i c i e s as regards r a i l and road development. In the case of Tanzania, t r a f f i c haulage by roads was r e s t r i c t e d . The problem i n due course has become not so much of c o n t r o l of road t r a n s p o r t f o r the b e n e f i t s of the r a i l w a y s , but the r o l e these two modes can p l a y i n the development of the country. Given proper c o o r d i n a t i o n , and w i t h the en-couragement b e i n g g i v e n t o road development, the two modes are complementary r a t h e r than l a r g e l y c o m p e t i t i v e . I t would appear t h a t t h e r e i s an i n c r e a s i n g need f o r c o o r d i n a t i o n be-tween r a i l w a y and road o p e r a t i o n s and, t h e r e f o r e , between the agencies i n v o l v e d . The s o l u t i o n of t h i s problem i n f u t u r e w i l l go a long way t o e l i m i n a t e wastage due t o uneconomic c o m p e t i t i o n between the modes and t o make them more e f f e c t i v e i n the economic development of the country. In other p a r t s of the w o r l d , the impetous p r o v i d e d by the development of r a i l and road was the market these s e r v i c e s p r o v i d e d f o r consumption of i r o n and s t e e l i n locomotive and t r u c k b u i l d i n g and the development of the automobile i n d u s t r y . No such developments took p l a c e i n Tanzania. A t r a n s p o r t a t i o n i n d u s t r y , as such, i s s t i l l i n the 114 adolescent stage, although i t s i n f l u e n c e i s b e g i n n i n g t o .appear i n the Gross Domestic Product. A l s o , r a i l w a y r e p a i r workshops are one of the most important employers i n East A f r i c a . But most of the employment b e n e f i t s have accrued t o Kenya, where the main workshop depot i s l o c a t e d at N a i r o b i . As f a r as road t r a n s p o r t i s concerned, the most important development has been i n the growth of gas s t a t i o n s and garages f o r r e p a i r , w h i l e t r u c k assembly and body b u i l d -i n g businesses are s t i l l few i n number. Sin c e a l l these a c t i v i t i e s depend mostly on imported items, Tanzania spends e x t r a on charges f o r f o r e i g n exchange. A l l these f a c t o r s combine to e x p l a i n why d e s p i t e i n c r e a s e d c a p i t a l investment i n t r a n s p o r t a t i o n , i t s impact has not been as great as was the case i n the developed areas. Not o n l y t h a t , but the wastage t h a t o c c i i r r e d because of war damages and p r o v i s i o n of t r a n s p o r t f a c i l i t i e s t o meet war demands, as w e l l .as a c t i v i t i e s u n r e l a t e d t o the economic development of the country, such as the groundnut scheme, l i m i t e d the r o l e t r a n s p o r t a t i o n would have p l a y e d i n the economic growth of Tanzania. How f a r does the r o l e of t r a n s p o r t a t i o n i n the past economic development become u s e f u l i n p l a n n i n g f o r f u t u r e development i n Tanzania, and. developing c o u n t r i e s i n general? 115 What should be the r o l e of t r a n s p o r t a t i o n i n the f u t u r e development of the country? These q u e s t i o n s , as w e l l as a framework f o r t r a n s p o r t p l a n n i n g at a n a t i o n a l and r e g i o n a l l e v e l ; t r a n s p o r t c o o r d i n a t i o n , and t r a n s p o r t as a t o o l t o f a c i l i t a t e the implementation of some of the n a t i o n a l o b j e c t i v e s , such as "Ujamaa V i l l a g e s " , are examined i n the f o l l o w i n g chapter. 5 ) CHAPTER VI TRANSPORTATION AND ECONOMIC DEVELOPMENT 1. Observation and Co n c l u s i o n s In a country, which was completely undeveloped toward the end of the 19th Century, w i t h porterage as the major form of t r a n s p o r t , r a i l w a y s were regarded as the p r e r e q u i s i t e t o any form of development. The o b j e c t i v e s g u i d i n g r a i l w a y development, and t r a n s p o r t a t i o n i n g e n e r a l , were mixed; the main ones b e i n g humanitari a n , p o l i t i c a l and economic. I n i t i a l l y , i n the case of Tanzania, s t r a t e g i c and a d m i n i s t r a t i v e reasons predominated, e s p e c i a l l y d u r i n g and immediately a f t e r the F i r s t and Second World Wars. Economic motives were secondary, and o r i e n t e d towards encouraging overseas trade f o r sources of raw m a t e r i a l s and markets f o r manufactured goods. The p a t t e r n of t r a n s p o r t r o u t e s which developed was t y p i c a l l y c o l o n i a l — l i n k i n g sources of raw m a t e r i a l s t o markets overseas and v i c e v e r s a . The r a i l w a y system of Tanzania s t i l l r e f l e c t s t h i s t r e n d , which i s be i n g perpetuated by v i r t u e of the country being a primary products e x p o r t e r . Mining and grandiose a g r i c u l t u r a l schemes a l s o l e d t o t r a n s p o r t development, e s p e c i a l l y r a i l w a y s . In Tanania, r a i l w a y s proved to be too expensive a 1 1 7 mode of t r a n s p o r t f o r i n i t i a t i n g economic development. I n developed c o u n t r i e s l i k e the U n i t e d S t a t e s and the U n i t e d Kingdom, where water t r a n s p o r t preceeded r a i l w a y s , the l a t t e r form p r o v i d e d b e t t e r s e r v i c e s but not n e c e s s a r i l y cheaper. In Tanzania, r a i l w a y s p r o v i d e d b e t t e r and cheaper s e r v i c e compared to p o r t e r a g e . But, they became a f i n a n c i a l burden to the country. The c a p i t a l f o r c o n s t r u c t i n g and m a i n t a i n i n g the system was beyond the f i n a n c i a l r e s o u r c e s of the country. The l i n e ceased t o be a l i a b i l i t y when i t was made p a r t of a r e g i o n a l r a i l w a y system. The q u e s t i o n of s i z e of the country as a f a c t o r holds good i n East A f r i c a , which i n essence c o n s t i t u t e s a w e l l d e f i n e d g e o g r a p h i c a l u n i t . S i n c e the two major r a i l w a y s of East A f r i c a were c o n s t r u c t e d by two r i v a l powers, German and B r i t i s h , s t r a t e g i c reasons overshadowed the g e o g r a p h i c a l u n i t y of the area. When'the whole of East A f r i c a came under B r i t i s h r u l e a f t e r 1919» events were t o l e a d t o the u n i f i c a -t i o n of the two r a i l w a y systems under one a d m i n i s t r a t i o n . The success of the East A f r i c a n Railway A d m i n i s t r a t i o n i n b e i n g able t o operate at a p r o f i t has made i t a v i a b l e p u b l i c u t i l i t y agency, w i t h the support o f the three East A f r i c a n governments, able t o f l o a t bonds on i n t e r n a t i o n a l markets as w e l l as borrow from the World Bank c a p i t a l f o r f u r t h e r t r a n s p o r t development. This i s a v e r y important aspect of t r a n s p o r t development i n East A f r i c a . The e x i s t e n c e of the Railway A d m i n i s t r a t i o n has removed o b l i g a t i o n f o r r a i l w a y 118 development from the i n d i v i d u a l t h r e e East A f r i c a n governments. Ho a l l o c a t i o n i s made f o r r a i l w a y s I n the n a t i o n a l budgets. But any development planned by the Railway A d m i n i s t r a t i o n f o r any one of the t h r e e East A f r i c a n c o u n t r i e s , and approved by a l l t h r e e governments, i s c o n s i d e r e d i n the over a l l annual development programmes. The h i g h c o s t of r a i l w a y s development favoured road investment f o r s t i m u l a t i n g economic development. The p o l i c y f o r road development was t o p r o v i d e country-wide low-cost roads, w i t h emphasis on Trunk roads forming a " g r i d " . T h i s p a t t e r n of main roads was achieved e a s i l y . But i t was not evolved as a f u n c t i o n of economic a c t i v i t i e s . I t s e f f e c t i v e -ness was f u r t h e r reduced by l a c k of f e e d e r roads. The i n i t i a l standard of roads p r o v i d e d , which c o u l d be improved as demand i n c r e a s e d w i t h the volume of t r a f f i c , were too low. Thus i t c a l l e d f o r h i g h e r maintenance c o s t s than would have been the case i f , f o r example, an a l l weather standard was adopted. I n view of the f a c t t h a t i t i s excess-i v e r a i n s which tend t o cause much damage to e x i s t i n g low standard roads, the c h o i c e of p r o v i s i o n of a l l weather roads would have been q u i t e i n order. The r e s u l t of p r o v i d i n g low standard roads was t h a t these consumed e x t r a r e s o u r c e s which c o u l d have been used f o r completing the m i s s i n g l i n k i n the system — the r u r a l feeder roads. An examination of the P i v e Year P l a n Road Programme shows t h a t at l e a s t a q u a r t e r of i t i s i n the form of road 1 1 9 improvements f o r upgrading e a r t h s u r f a c e s t o g r a v e l , and the l a t t e r type t o bitumen s u r f a c e . I n view of the h i g h demand f o r scarce c a p i t a l i n other s e c t o r s of the economy, road development p o l i c i e s should aim at p r o v i d i n g roads which can stand up t o weather c o n d i t i o n s of Tanzania; as w e l l as t o ensure r e d u c t i o n i n maintenance c o s t s . Even more important i s t h a t i t i s b e t t e r t o have few m i l e s of main roads of good sta n d a r d , complete w i t h f e e d e r roads, r a t h e r than t o have many m i l e s of substandard main roads, which are expensive t o m a i n t a i n , but at the same time incomplete because there are no feeder roads and are u n r e l a t e d t o e x i s t i n g economic a c t i v i t i e s . The o r g a n i z a t i o n of r a i l w a y and road t r a n s p o r t was i n f l u e n c e d by the d e s i r e t o c o n t r o l r a i l / r o a d c o m p e t i t i o n . On one hand, road development was encouraged as a b a s i s f o r developing new areas; on the other hand, i t was be i n g r e -s t r i c t e d so as t o ensure s u f f i c i e n t t r a f f i c f o r r a i l w a y s . The pursuance of a r e s t r i c t i o n p o l i c y on road development was based on the experience of developed c o u n t r i e s where r a i l w a y s were l o s i n g t r a f f i c t o roads. The p r e o c c u p a t i o n w i t h r a i l / r oad c o m p e t i t i o n r e t a r d e d the movement' of goods by roa d , e s p e c i a l l y l o n g d i s t a n c e haulage. Even more so, i t d i s t o r t e d the p i c t u r e of a t r a n s p o r t environment i n a dev e l o p i n g country. I n an area where one mode of t r a n s p o r t i s not enough f o r development, t r a n s p o r t p o l i c i e s should have been t o f o s t e r 120 the maximum use of e x i s t i n g c a p a c i t y of a l l modes of t r a n s -p o r t and make them complement r a t h e r than compete with.each o t h e r . T h i s approach would have r e s u l t e d i n a b e t t e r co-o r d i n a t e d t r a n s p o r t system than at pr e s e n t . I n view of the f a c t t h a t the i n t e r v a l between the establishment of one t r a n s p o r t mode (e.g. , r a i l w a y ) and another (e. g . , r o a d ) , has been r e l a t i v e l y s h o r t i n Tanzania, and the f a c t t h a t the m a j o r i t y of the people cannot a f f o r d t o buy t h e i r own v e h i c l e s , c o m p e t i t i o n t o the extent which has taken p l a c e i n the developed c o u n t r i e s i s u n l i k e l y to occur i n Tanzania. There are other f a c t o r s which suggest t h a t comple-mentary r a t h e r than competetive modes should be the g u i d i n g p r i n c i p l e i n t r a n s p o r t o r g a n i z a t i o n of Tanzania. The p e r i p h e r a l l o c a t i o n of p o p u l a t i o n and economic a c t i v i t i e s i s one reason. The p a t t e r n of wholesale and r e t a i l t r a d e i s another. I n the case of the l a t t e r , road t r a n s p o r t i s the most convenient mode f o r c o l l e c t i o n and d i s t r i b u t i o n , as t h i s i s on a c r o s s - c o u n t r y b a s i s and t r a n s p o r t e d i n s m a l l and l e s s b u l k y consignments. Road t r a n s p o r t i s a l s o i n c r e a s i n g i n p o p u l a r i t y f o r passenger movement even f o r l o n g d i s t a n c e s , because buses o f f e r a b e t t e r s e r v i c e than the r a i l w a y . R a i l -ways w i l l continue t o be important f o r b u l k y and l a r g e con-signments on lon g l i n e haulage and, i n p a r t i c u l a r , t o p o r t s and v i c e v e r s a . The understanding of the r o l e which d i f f e r e n t modes of t r a n s p o r t p l a y — i n t h i s case, r a i l and road — i n a 121 p a r t i c u l a r country i s e s s e n t i a l i f c o - o r d i n a t i o n and, f i n a l l y , i n t e g r a t i o n of the t r a n s p o r t network i s t o be achieved. The experience of the S o v i e t Union i n t h i s f i e l d i s worth n o t i n g . A c c o r d i n g t o Zvonkov: one of the fundamental p r i n c i p l e s of the p l a n n i n g of a j o i n t t r a n s p o r t i s t h a t t r a n s p o r t a t i o n be regarded as a u n i f i e d t e c h n o l o g i c a l process f o r the t r a n s f e r of commodities from the sphere of p r o d u c t i o n t o the sphere of consumption and not merely t h a t p a r t of t h i s process p e r t a i n i n g t o the o r i g i n a t i o n and t e r m i n a t i o n of goods on a s i n g l e medium of t r a n s p o r t a t i o n such as from one r a i l t e r m i n a l t o another. The u n i f i e d t e c h n o l o g i c a l t r a n s p o r t a t i o n process r e f e r s to the most e f f i c i e n t u t i l i z a t i o n of a l l the i n t e r - r e l a t e d t r a n s p o r t media, p e r s o n n e l , and o r g a n i z a t i o n s p a r t i c i p a t i n g i n the movement of commodities. This process i n c l u d e s a l l the components of a p a r t i c u l a r s e r v i c e , such as the type of equipment, transhipment t e r m i n a l s , s t o r a g e , buses, and the d i s t r i b u t i o n of commodities. 1 While perhaps t h i s d e s c r i b e s a v e r y s o p h i s t i c a t e d l e v e l of t r a n s p o r t i n t e g r a t i o n , t h e r e are other ways which a developing country l i k e Tanzania can adopt as a p o i n t of departure. The i n n o v a t i o n of a new technology i s a good ex-2 ample. The i n t r o d u c t i o n of wagon f e r r i e s on Lake V i c t o r i a , which p r o v i d e s a model combination of water and r a i l , i s an i l l u s t r a t i o n of the t e c h n o l o g i c a l changes t a k i n g p l a c e i n the development of t r a n s p o r t i n East A f r i c a . I n the case of r a i l and road, however, t r a n s p o r t p o l i c i e s w i l l s t i l l remain Taafe, R.N. ( e d . ) , P r i n c i p l e s of I n t e g r a t e d Trans-p o r t Development i n U.S.S.R. (De-partment of Geography^ ~ U n i v e r s i t y of Chicago;, p. 14. 2 East A f r i c a n Railwa_y_and Harbours Annual Report 1965 (Government PrinterVlI^roTr7~lTenya; , pT 3. ' 1 2 2 the most important t o o l s f o r c o - o r d i n a t i o n u n t i l such a time t h a t a t e c h n o l o g i c a l i n n o v a t i o n w i l l be i n t r o d u c e d (e.g., p i g g y b a c k s ) , which w i l l enable the i n t e g r a t i o n of r a i l and road. T h i s c o - o r d i n a t i o n can be achieved through the forma-t i o n of a N a t i o n a l Transport Board. The f u n c t i o n of the Board, however, w i l l not be c o n f i n e d to b r i n g i n g about co-o r d i n a t i o n between r a i l and roa d , but' w i l l i n c l u d e the im-p o r t a n t t a s k of t r a n s p o r t a t i o n p l a n n i n g on a n a t i o n a l l e v e l . The b a s i s f o r such a Board i s e x i s t i n g a l r e a d y , namely, the Transport L i c e n s i n g A u t h o r i t y . But i f i t can be formed on the b a s i s of the r e c e n t l y e s t a b l i s h e d "Regional Road Boards", i t w i l l be even b e t t e r . The R e g i o n a l Road Board Act (1967) enables the M i n i s t e r i n charge of communications t o e s t a b l i s h f o r any r e g i o n a R e g i o n a l Road Board. The f u n c t i o n of a R e g i o n a l Board i s t o make recommendations t o the . M i n i s t e r r e s p e c t i n g the c o n s t r u c t i o n , improvement, a l t e r a t i o n , r e c o n s t r u c t i o n , maintenance and s u p e r v i s i o n of roads, f e r r i e s and aerodromes, except f o r roads w i t h i n an area of j u r i s d i c t i o n of a c i t y or 3 m u n i c i p a l c o u n c i l . T h i s A c t , as can be gathered from above, i n c l u d e s the c o n s i d e r a t i o n of f a c i l i t i e s f o r other modes. The emphasis on roads i s a r e c o g n i t i o n of what c o n s t i t u t e s a b o t t l e n e c k i n the country's t r a n s p o r t a t i o n system. Due to the emphasis of developing t e r r i t o r i a l main roads mentioned ^Pe r s o n a l L e t t e r from M i n i s t r y of Communications, Labour and Works. The United R e p u b l i c of Tanzania. ' Ref. No. CW.44019/72, August 12, 1967. 123 e a r l i e r , i t meant t h a t l o c a l areas t remained uncoordinated t o the main road system of the country. R e g i o n a l Road Boards, t h e r e f o r e , are intended t o f i l l the gap by a s s e s s i n g t r a n s -p o r t a t i o n needs at a r e g i o n a l or l o c a l l e v e l and d e c i d i n g on 4 p r i o r i t i . e s f o r expenditure. A N a t i o n a l Transport Board can be formed by heads of 3 a l l R e g i o n a l Transport Boards. This wi11 b r i n g t o g e t h e r what amounts t o a l i s t of t r a n s p o r t problems and needs from d i f f e r -ent p a r t s of the country. I t w i l l r e f l e c t the type and magni-tude of t r a n s p o r t problems which e x i s t . The disadvantage of t h i s approach i s i n the a l l o c a t i o n of funds. There may be a tendency by r e g i o n a l r e p r e s e n t a t i v e s to' overlook n a t i o n a l p r i o r i t i e s by concerning themselves w i t h problems of the areas they r e p r e s e n t . I t i s here t h a t the second a l t e r n a t i v e i s advantageous. A N a t i o n a l Transport Board should be con-s t i t u t e d by members not connected w i t h R e g i o n a l Transport Boards. I t should i n c l u d e government o f f i c i a l s from the m i n i s t r i e s of: a ) Communication'and Labour; b) A g r i c u l t u r e ; c) I n d u s t r y , Mining and Power; d) Lands, Surveys, Water and Settlements. R e g i o n a l Road Boards have been e s t a b l i s h e d i n Mwanza, Mara and Shinyanga Regions, an important c o t t o n growing zone of Tanzania^ ^"Transport" v / i l l be a b e t t e r s u b s t i t u t e f o r "Roads'*, because i t covers a l l modes. 124 R e p r e s e n t a t i v e s should a l s o he i n c l u d e d from Railway Admin-i s t r a t i o n i n Tanzania, road t r a n s p o r t f i r m s , b u s i n e s s and i n d u s t r i a l f i r m s , c o o p e r a t i v e s and marketing boards. The Re g i o n a l Transport Boards w i l l send a l l t h e i r t r a n s p o r t needs and problems t o the N a t i o n a l Board. These items w i l l be ex-amined i n c o n j u n c t i o n w i t h the t r a n s p o r t requirements f o r development of the country as a whole and the funds a v a i l a b l e w i l l be a l l o c a t e d on the b a s i s of " n a t i o n a l t r a n s p o r t p r i o r -i t i e s " . How much t r a n s p o r t a t i o n does a developing country need t o ensure smooth economic development? Here a g a i n the experience of the S o v i e t Union i s r e l e v a n t s i n c e i t i s based on planned development. I n the S o v i e t economic development, funds were d i v e r t e d f o r t r a n s p o r t improvement o n l y when c a p a c i t y threatened to be a b o t t l e n e c k i n i n d u s t r i a l develop-6 ment, which was a p r i o r i i n the country's planned development. The S o v i e t t r a n s p o r t p o l i c y was also" geared towards improving r a i l w a y s at the expense of other modes, and concentrated on 7 the movement of f r e i g h t r a t h e r than passenger t r a f f i c . I n so d o i n g , the S o v i e t Union was able t o achieve an i n t e n s i v e u t i l i z a t i o n of t r a n s p o r t c a p a c i t y without too much investment of new c a p i t a l . Tanzania has embarked on planned economic and s o c i a l Rromm, op. c i t . , p. 124. ? I b i d . 125 development. U n l i k e the U.S.S.R., however, resources are l i m i t e d . The g o a l s are a l s o d i f f e r e n t . Tanzania aims at d o u b l i n g the income of the people, becoming s e l f - s u f f i c i e n t i n t r a i n e d manpower and i n d o u b l i n g the average l i f e expect-ancy, by 1980. Despite emphasis on s o c i a l i n f r a s t r u c t u r e , i t i s economic i n f r a s t r u c t u r e which i s g i v e n p r i o r i t y , w i t h the t r a n s p o r t s e c t o r r a n k i n g t h i r d and accounting f o r 16% of t o t a l 8 investment. In the case of the f i r s t g o a l , i t s r e a l i z a t i o n w i l l depend on i n c r e a s e d investment i n the a g r i c u l t u r a l s e c t o r which employs over 50% of the p o p u l a t i o n . I t was shown e a r l i e r t h a t had b e t t e r a g r i c u l t u r a l methods been used, h i g h e r l e v e l s of p r o d u c t i o n would have been r e a l i z e d than t h a t achieved t o date. Investment i n a g r i c u l t u r e should be a p r i o r i i n Tanzania. The a g r i c u l t u r a l t r a n s f o r m a t i o n approach advocated i n the p l a n can best be achieved w i t h i n the planned p e r i o d through investment i n b e t t e r methods of a g r i c u l t u r a l produc-t i o n , as w e l l as the - p r o v i s i o n of f a c i l i t i e s such as storage and c u r i n g f a c t o r i e s which i n some areas have l i m i t e d the expansion of c e r t a i n cash crops as w e l l as g i v i n g r i s e t o unnecessary long d i s t a n c e t r a n s p o r t demand. In c o n t r a s t to the S o v i e t Union, i n Tanzania t h e r e has been i n c r e a s e d a l l o c a t i o n of resources t o the t r a n s p o r t s e c t o r , w i t h a r i s e i n p r o d u c t i o n . This has been the case i n I n d i a , too. • ' 8 F a r e r , T.J. ( e d ) . F i n a n c i n g A f r i c a n Economic Develop-(M.I.T. P r e s s , 1965), p. 2>~ -tJ "~ ' * 126 Some of t h i s e x p e n d i t u r e , i n the case of Tanzania, was i n -tended t o e l i m i n a t e the " c o l o n i a l l egacy" i n the t r a n s p o r t s e c t o r , and not n e c e s s a r i l y r e f l e c t i n g i n c r e a s i n g demand f o r more t r a n s p o r t c a p a c i t y . T h i s investment i s j u s t i f i e d because i t i s geared towards o r i e n t i n g the t r a n s p o r t system i n t o i n -t e r n a l needs and, t h e r e f o r e , s t i m u l a t e l o c a l markets. I t i s t h i s type of expenditure which was r e f e r r e d t o at the begin n i n g (see Chapter I , p. 4 ) as a " f o r c e d i n v e s t -ment". I t seems to be unavoidable i f economic and s o c i a l o b j e c t i v e s of post independence are t o be f u l f i l l e d . The i n c r e a s i n g expenditure on t r a n s p o r t a t i o n i n dev e l o p i n g c o u n t r i e s i s not merely intended t o c r e a t e more c a p a c i t y or f o r m o d e r n i z a t i o n of r a i l w a y and upgrading roads, but i t i s a l s o due t o the r e o r i e n t a t i o n of the network t o meet economic, s o c i a l and p o l i t i c a l g o a l s . Transport needs i n c r e a s e w i t h r i s e i n economic growth. The h i g h e r the l e v e l of economic growth the more t r a n s p o r t a -t i o n a country needs. I n Tanzania, the supply of t r a n s p o r t c a p a c i t y ahead of demand was u n s u c c e s s f u l , as the f a i l u r e of the M a n y o n i - K i n y a n g i r i r a i l w a y showed. But i n the l i g h t of present planned development now t a k i n g p l a c e i n Tanzania, p r o v i s i o n of t r a n s p o r t c a p a c i t y ahead of demand would not n e c e s s a r i l y l e a d t o the same r e s u l t s . I t i s the s c a r c i t y of resources which makes " t h i s approach u n d e s i r a b l e . Resources spent on p r o v i d i n g t r a n s p o r t ahead of demand w i l l have g r e a t e r 127 b e n e f i t s i f used t o a l l e v i a t e problems i n other s e c t o r s of the economy and, i n so do i n g , f a c i l i t a t e balanced growth. The r o l e t r a n s p o r t can p l a y and i t s e f f e c t i v e n e s s i n economic development w i l l be determined by a l l the f a c t o r s d i s c u s s e d above. Thus, t o be e f f e c t i v e , t r a n s p o r t a t i o n must be planned c a r e f u l l y . Present and f u t u r e needs ought t o be determined. T r a f f i c should be a l l o c a t e d a c c o r d i n g to the r e l a t i v e advantage of one mode over the other f o r such t r a f f i c . New t e c h n o l o g i c a l p o s s i b i l i t i e s should be con-s i d e r e d . These, as w e l l as b e n e f i t s a c c r u i n g from new t r a n s -p o r t p r o j e c t s i n r e l a t i o n t o cost and the e f f e c t s on the country's balance of payments, employment p o s i t i o n and i n t e -g r a t i o n w i t h the e x i s t i n g t r a n s p o r t system, have t o be con-s i d e r e d i n a l l o c a t i n g resources f o r f u r t h e r t r a n s p o r t develop-ment. 2 . Framework f o r Transport P l a n n i n g  and the Choice of Mode f o r  Future Development The e f f e c t i v e r o l e of t r a n s p o r t i n f u t u r e development of Tanzania w i l l depend f i r s t on the extent which e x i s t i n g problems w i l l be overcome. The mode r n i z a t i o n of the r a i l w a y s from steam t o d i e s e l engines now underway, the p r o v i s i o n of adequate r o l l i n g s t o c k , storage f a c i l i t i e s , upgrading roads, and the p r o v i s i o n of feeder roads, are some of the problems which r e q u i r e immediate a t t e n t i o n . 1 2 8 P o r t c a p a c i t y and f a c i l i t i e s a l s o must be improved i f the needs of Zambia are not to cause a b o t t l e n e c k i n the c a p a c i t y of the system. I t a l s o depends on the f o r m u l a t i o n of good management p o l i c i e s which w i l l ensure the maximum use of l i m i t e d t r a n s p o r t f a c i l i t i e s and c a p i t a l r e s o u r c e s . A l l these c o n s i d e r a t i o n s w i l l r e q u i r e c a r e f u l p l a n -n i n g , not on l y of the Tanzania t r a n s p o r t system, but t h a t of East A f r i c a and Zambia as a whole. Thus the proposed Tanzania-Zambia r a i l l i n k has t o be consider e d i n p l a n n i n g the t r a n s p o r t s e c t o r t o meet f u t u r e needs. A t r a n s p o r t p l a n f o r Tanzania as such does not e x i s t . A l l t h a t i s i n d i c a t e d i n the F i v e Tear p l a n i s the amount t o be spent on d i f f e r e n t t r a n s p o r t p r o j e c t s and, i n p a r t i c u l a r , road p r o j e c t s . No attempt has been made t o estimate present or f u t u r e t r a n s p o r t needs f o r Tanzania. Transport p l a n n i n g f o r Tanzania can be approached e i t h e r on a micro or macro s c a l e . The f i r s t r e f e r s t o n a t i o n a l and the second, t o r e g i o n a l l e v e l . The approach s e l e c t e d w i l l depend on whether the p r o j e c t i n v o l v e s Tanzania alone or Tanzania and a neighbouring country. A l s o , whether the p l a n i s f o r r a i l , r o a d , water, a i r , p i p e l i n e or port-development. I n the case of r a i l , water, a i r , and p o r t , and because they are organ i z e d on a r e g i o n a l basis', the macro approach w i l l be the best t o use. Appendix E d e p i c t s a suggested framework f o r determining t r a n s p o r t needs at micro 129 and macro l e v e l s , and the f a c t o r s which should be c o n s i d e r e d . When p l a n n i n g t r a n s p o r t a t i o n t o meet f u t u r e needs, the choice of mode u s u a l l y a r i s e s . I n the case of Tanzania, t h i s i s r e f l e c t e d i n the proposed Tanzania-Zambia r a i l w a y which w i l l j o i n the C e n t r a l l i n e t o the Zambia r a i l w a y system. Although the d e c i s i o n to b u i l d i t has been a c c e l e r a t e d some-what by the Rhodesian c r i s i s , i t s t i l l p r o v i d e s a good ex-ample of the dilemma f a c i n g developing c o u n t r i e s i n d e c i d i n g whether f u t u r e investment i n the t r a n s p o r t s e c t o r should be i n r a i l or road.. The d i f f i c u l t y p a r t l y a r i s e s from the misunderstand-i n g of the r o l e r a i l w a y s have p l a y e d i n the p a s t . I n the case of the Tanzania-Zambia r a i l w a y , the s i t u a t i o n i s s l i g h t -l y more complicated. The crux of the problem i s not the mag-ni t u d e of the investment i n v o l v e d , but r a t h e r the e f f e c t t h i s r a i l w a y w i l l have on e x i s t i n g r a i l w a y s now p r o v i d i n g ( o r used t o ) o u t l e t t o Zambia, and depending f o r most of t h e i r revenue on the movement of Zambian copper and import goods. These •railways (Rhodesia and Benguela r a i l w a y ) , as w e l l as some other l e s s d i r e c t r o u t e s , are not being used at f u l l c a p a c i t y . Thus, i t w i l l be uneconomical t o a l l o c a t e scarce resources to pr o v i d e more t r a n s p o r t f a c i l i t i e s when the present ones are s t i l l u n d e r - u t i l i z e d . . The o p p o r t u n i t y c o s t s of i n v e s t i n g i n a r a i l w a y 130 f a c i l i t y i n s t e a d of a g r i c u l t u r e w i l l be v e r y h i g h — i f i t s b e n e f i t s w i l l not exceed c o n s t r u c t i o n c o s t s . A l s o , as f a r as the p r o v i s i o n of adequate t r a n s p o r t between Zambia and Tanzania i s concerned, i t i s argued t h a t the improvement of the e x i s t i n g road (the Great North Road) can best meet the a n t i c i p a t e d t r a d e between the two c o u n t r i e s . Resources, t h e r e f o r e , should be i n v e s t e d i n the upgrading of t h i s road to an a l l weather standard. The other reason a g a i n s t b u i l d i n g the r a i l w a y i s the gauge problem. The East A f r i c a n Railway system i s on a metre gauge, w h i l e t h a t of Zambia i s on a 3' 6" gauge. T h i s w i l l r e q u i r e a s w i t c h i n g s t a t i o n t o enable the t r a n s f e r of engines and wagons from one system t o the o t h e r , thereby i n c r e a s i n g o p e r a t i n g c o s t s . T h e r e f o r e , the World Bank d e c l a r e d the r a i l -way p r o j e c t uneconomic and favoured f i n a n c i n g the upgrading of the Great North Road. As f a r as Tanzania i s concerned, a "southern r a i l w a y " seems t o be overdue. The proposed r a i l w a y w i l l pass through the Kilombero V a l l e y " a n d the Southern H i g h l a n d , two areas of h i g h a g r i c u l t u r a l and m i n e r a l p o t e n t i a l s u f f e r i n g from l a c k of adequate t r a n s p o r t f a c i l i t i e s . The c o n s t r u c t i o n of t h i s l i n e w i l l make p o s s i b l e the e x p l o i t a t i o n of the c o a l and i r o n ore d e p o s i t s i n the Ruhuhu B a s i n . The proposed s t e e l 9 r o l l i n g m i l l w i l l p r o v i d e a ready market. ' A f r i c a n Research B u l l e t i n ( A f r i c a Research L i m i t e d , England), Vo. IV, No. 12, January 13, 1968, p. 903. • 1 3 1 I n the case of Zambia, p o l i t i c a l c o n s i d e r a t i o n s under-l i e the d e s i r e t o c o n s t r u c t the r a i l w a y so t h a t i t can have a r e l i a b l e o u t l e t , i n view of bei n g surrounded by " u n f r i e n d l y " 10 c o u n t r i e s , e s p e c i a l l y s i n c e U.D.I, by Rhodesia. But having committed i t s e l f t o the r a i l w a y , Zambia w i l l make sure t h a t i t moves most, i f not a l l , of i t s export and import t r a f f i c a l ong i t . Thus, the f e a r t h a t the new l i n e w i l l r u n at a l o s s i s unfounded. Nor w i l l the d i v e r s i o n of t r a f f i c by Zambia be c o n t r a r y t o what has been t a k i n g p l a c e i n the area. The p a t t e r n of t r a f f i c movement between the Rhodesia and Benguela r a i l w a y has not been determined by market f o r c e s o n l y . The predominant use of the Rhodesian r a i l w a y by Zambia, which i s a lo n g e r route t o markets than the Benguela r a i l w a y , has been determined by "agreements among p r i v a t e companies and r a i l -ways, by r a i l w a y t a r r i f p o l i c i e s , and ocean s h i p p i n g r a t e s , [and] p o l i t i c a l r e l a t i o n s among the c o l o n i a l powers or among 11 the c o u n t r i e s themselves". The p r o b a b i l i t y of d i v e r s i o n of t r a f f i c by Zambia t o the new l i n e i s the u n d e r l y i n g o b j e c t i o n t o the b u i l d i n g of t h i s r a i l w a y . The h i s t o r i c a l evidence p r o v i d e d by r a i l w a y development i n Tanzania shows t h a t the C e n t r a l L i n e s u f f e r e d " ^ U n i l a t e r a l D e c l a r a t i o n of Independence. •^Haefele, E . J . , S t e i n b e r g , E.B., Government C o n t r o l  on T r a n s p o r t , An A f r i c a n Case (Washington, D.C: Brookings I n s t i t u t i o n , Transport Research Programme), p. 1 0 . 132 a l o s s when copper t r a f f i c from the Congo was d i v e r t e d t o L o b i t o a f t e r the completion of the Benguela r a i l w a y . A sim-i l a r d i v e r s i o n of t r a f f i c w i l l t u r n these two r a i l w a y s , which are now o p e r a t i n g at a p r o f i t , t o a l o s s . The advantages of the r a i l w a y t o Zambia i n c l u d e the b e n e f i t which w i l l a r i s e from b e i n g able t o c o n t r o l at l e a s t h a l f of the proposed r a i l w a y and r o l l i n g s t o c k i n i t s own n a t i o n a l boundaries and those of a f r i e n d l y n a t i o n . The new employment c r e a t e d by the p r o j e c t , and above a l l the s t r o n g e r l i n k s w i t h East A f r i c a , w i t h which i t shares common p o l i t i c a l and economic o b j e c t i v e s , are a d d i t i o n a l b e n e f i t s . F u r t h e r , t h e r e i s the hope of bei n g admitted i n t o the East A f r i c a n 12 Economic Community ( i n c l u d i n g Kenya, Uganda, Tanzania, Ruanda, Urundi and Zambia; and p o s s i b l y Somalia and E t h i o p i a ) . To a p p r e c i a t e the nature of the proposed Tanzania-Zambia r a i l w a y , one must go beyond p o l i t i c a l f a c t o r s . I t i n -v o l v e s the q u e s t i o n of forming a l a r g e and uni f o r m R e g i o n a l Economic Group, e f f i c i e n t l y served by t r a n s p o r t f a c i l i t i e s t o expand the market f o r a g r i c u l t u r a l , i n d u s t r i a l and economic development i n g e n e r a l . The World Bank's r e f u s a l t o . f i n a n c e the p r o j e c t , how-ever, was not the end of the s t o r y . The Maxwell-Stamp r e p o r t has found the r a i l w a y economic and, therefore,' f e a s i b l e . T h i s f i n d i n g , as w e l l as the d e t e r i o r a t i o n of r e l a t i o n s be-tween Zambia and Rhodesia, has made the p r o j e c t a n e c e s s i t y . The Standard-Tanzania: No. 11538, 2nd December, 1961, p. 1. ~~~ ~ 135 The c o n s t r u c t i o n of the r a i l w a y has been brought c l o s e to. r e a l i t y by the r e a d i n e s s of the People's R e p u b l i c of China t o g i v e an i n t e r e s t f r e e l o a n t o the two governments f o r con-15 s t r u c t i o n of the l i n e . A p r o j e c t p l a n n i n g agency was formed 14 by the two c o u n t r i e s l a s t J u l y , t o examine t e c h n i c a l m a t t e r s , such as the gauge problem. An e n g i n e e r i n g study i s now b e i n g c a r r i e d out. A l l these events suggest t h a t the r a i l w a y w i l l be b u i l t . When the r a i l w a y , which has a t o t a l l e n g t h of 1,042 m i l e s , i s e v e n t u a l l y c o n s t r u c t e d , i t w i l l c o n s t i t u t e the b i g g e s t u n d e r t a k i n g ever t o be c a r r i e d out i n the present c e n t u r y , b o t h i n terms of m i l e s and the s i z e of c a p i t a l i n -vestment i n v o l v e d which i s about £100,000,000. The r a i l w a y w i l l take between f i v e t o seven years to b u i l d . 3. Transport..and .Ujamaa V i l l a g e s T r a n s p o r t a t i o n , when i t i s p r o p e r l y u t i l i z e d , i s an . e f f e c t i v e t o o l i n - a s s i s t i n g -the attainment of economic and s o c i a l o b j e c t i v e s . I n Tanzania, f o r example, t r a n s p o r t a t i o n has a r o l e t o p l a y i n " r u r a l t r a n s f o r m a t i o n " approach t o a g r i c u l t u r e , based on planned "Ujamaa" V i l l a g e s . The govern-ment w i l l a s s i s t i n the s e t t i n g up of these communities by •^The Standard-Tanzania, No. 11467, Sept. 11, 1967, p . l . 14 The Standard-Tanzania, No. 11415, J u l y 12, 1967, p. 1. 15 ^Por d e t a i l s on the p h i l o s o p h y g u i d i n g the s e t t i n g up of "Ujamaa V i l l a g e s " , the reader shotild c o n s u l t : Nyerere, J.K., S o c i a l i s m end.Rural. Development (Dar-es-Salaam: Government P r i n t e r , T9&7), 134 p r o v i d i n g c a p i t a l , and c a p i t a l equipment such as a g r i c u l t u r a l machinery, t e c h n i c a l a d v i s e r s i n a g r i c u l t u r e and animal husbandry, t e a c h e r s ; as w e l l as community f a c i l i t i e s l i k e s c h o o l s , h e a l t h c e n t r e s , and water s u p p l i e s . Many of the v i l l a g e s w i l l be based on the p r o d u c t i o n of a g r i c u l t u r a l commodities, and o r g a n i z e d on a c o o p e r a t i v e b a s i s . The l o c a t i o n of Ujamaa V i l l a g e s w i l l be determined by the a v a i l a b i l i t y of c a p i t a l , w i l l i n g s e t t l e r s t o undertake the i n i t i a l p i o n e e r work, the type of crop t o be grown, and, t h e r e f o r e , f a v o u r a b l e environmental f a c t o r s . Transport f a c i l i t i e s and demand a l s o have t o be examined b e f o r e f i n a l d e c i s i o n t o s e t up the v i l l a g e s i s made. Transport requirements w i l l v a r y from a c c e s s a b i l i t y of the proposed area f o r s e t t l e m e n t , e i t h e r by r a i l , road of water. The r e l o c a t i o n of people and other requirements f o r e s t a b l i s h i n g the s e t t l e m e n t s w i l l be i n f l u e n c e d by e x i s t i n g t r a n s p o r t f a c i l i t i e s . I n an area where these are absent or poor, i t i s bound t o i n c r e a s e i n i t i a l c a p i t a l c o s t s , espec-i a l l y i f new t r a n s p o r t r o u t e s have t o be surveyed and con-s t r u c t e d . C o n s i d e r a t i o n w i l l a l s o have t o be g i v e n t o the l e v e l of s e r v i c e b e i n g p r o v i d e d f o r passenger and goods t r a f f i c . D istance from major c e n t r e s of supply, as w e l l as t r a n s p o r t requirements f o r expected l e v e l s of p r o d u c t i o n from the s e t t l e m e n t s w i l l be of major c o n s i d e r a t i o n i n p l a n n i n g Ujamaa V i l l a g e s . Thus, t r a n s p o r t a t i o n should be 135 made an I n t e g r a l p a r t of the "Ujamaa V i l l a g e " p l a n n i n g p r o c e s s . The pronouncement t h a t t r a n s p o r t alone i s not enough f o r economical development has been p o i n t e d out time and time a g a i n . I n t h i s Study i t s t i l l h olds good. Transport as a means t o an end should he made t o serve the needs f o r which i t i s supposed t o p r o v i d e a. s e r v i c e . I t must not be developed i n such a way t h a t i t r e s u l t s i n m i s a i l o c a t i o n of scarce r e s o u r c e s . In d e v e l o p i n g c o u n t r i e s , such as Tanzania, where c a p i t a l f o r development i s s c a r c e , a u s t e r i t y measures should be p r a c t i s e d t o reduce i n c r e a s i n g a l l o c a t i o n of reso u r c e s now be i n g c h a n n e l l e d i n t o t r a n s p o r t a t i o n . But t h i s should be done a f t e r a thorough i n v e s t i g a t i o n of the whole economy has been made t o a s c e r t a i n what c o n s t i t u t e s the problem. As i t has been shown here , i n some cases i t i s the l a c k of storage f a c i l i t i e s or a p r o c e s s i n g f a c t o r y which g i v e r i s e t o unnecessary t r a n s p o r t demand; and, hence, i n c r e a s i n g expenditure on t r a n s p o r t a t i o n . « I t i s i n p o i n t i n g out such m i s d i r e c t i o n of reso u r c e s t h a t past investment i n t r a n s p o r t guides f u t u r e p l a n n i n g : but t h i s i s not the end of the task.. The process ought t o continue through r e a p p r a i s a l of the t r a n s p o r t problems of the developing c o u n t r i e s , and, i n p a r t i c u l a r , establishment of a theory f o r t r a n s p o r t r e s e a r c h and development. 136 APPENDIX A: DEVELOPMENT PLAN: 1955 - I960 ROAD PROGRAMME Proposed Expenditure Road 1955/56 1956/57_ 1957/60,... _ Total I The Great North Road (a} Aru3ha - Makuyuni (b) Porotos Deviation (c) Bridges (d) General Improvements £ 200,000 75,000 60,000 10,000 £ 75,000 175,000 20,000 10,600 £ - £ 90,000 70,000 275,000 340,000 80,000 90,000 Total £ 34-5,000 £280,000 £ 160,000 £ 785,000 II Other Trunk Routes (a) Dar-es-Salaam/Morogoro 20,000 (b) Morogoro - Iringa 279,000 (c) Southern Trunk Route: Lindi - Mtama 14,000 Other Sections • 15,000 (d) Eastern Trunk Routes: Coastal Road 15,000 (e) Tanga - Nrthn. Prov.: Korogwe Pare Border Sections 50,000 (f) East/West Trunk Route: Morogoro - Western Province 10,000 (g) Western Trunk Route: Uganda Border - Abercorn: -Bukoba Dist. S ection 25,000 -Westrn. Prov. n 10,000 (h) Lake Victoria/Lake Nyasa: Kenya Boi'der -Musoma Section 15,000 Muscma/fawanza S ect. 10,000 Mwanza/Tabora " 10,000 GNR/Lake Nyasa n 10,000 £ -20,000 50,000 50,000 . 20,000 25,000 10,000 20,000 20,000 10,000 10,000 5,000 300,000 £ 20,000 279,000 14,000 85,000 365,000 50,000 150,000 80,000 110,000 50,000 20,000 80,000 30,000 20,000 50,000 100,000 50,000 115,000 60,000 40,000 70,000 Total Trunk Routes £ 483,000 £235,000 £ 740,000 £1,458,000 137 APPENDIX A: DEVELOPMENT PLAN - 1955/60: ROAD PROGRAMME Road Proposed Expenditure I I I T e r r i t o r i a l Main Roads a) (b) (c) (d) (e) (f) (g) (h) ( i ) Mwansa - Biharamulo Ushashi - N a n 3 i o Feeder Roads to Southern Prov. Rlwy. Luiche Swamp - Kigomo Njombe Roads Kilombero V a l l e y Roads Mpui - Ilemba Dar-es-Salaam - Morogoro Rd. t o Handeni Other Major Roads Tota l T e r r i t o r i a l Main Rds.£ IV Other Road Prelects (a) Improvements T e r r i t o r i a l & D i s t r i c t Main Roads (b) B i tuminisa t lon Main M s . (c) Lake Prov. Cotton Roads (d) E a s t e m Prov. Cotton " (e) Northern Province R08&3 ( f ) Surveys (g) F e r r i e s (h) Minor Road Construction Improvements D i s t . Rds. Road of Access -A g r i c u l t u r a l Areas T o t a l Grand T o t a l * ( i ) (J) 1955/56 1956/57 1957/60 T o t a l £ 100,000 £150,000 £ e 250,000 10,000 — — 10,000 13,000 7,000 20,000 10,000 . 15,000 - 25,000 10,000 50,000 50,000 110,000 20,000 30,000 - 50,000 8,000 - - 8,000 „ 10,000 30,000 40,000 10,000 10,000 100,000 120,000 , 181,000 £272,000 £ 180,000 £ 633,000 £ 20,000 £ 20,000 £ 60,000 £ 100,000 20,000 20,000 80,000 120,000 20,000 20,000 40,000 80,000 20,600 20,000 40,000 80,000 80,000 10,000 10,000 100,000 8,000 5,000 7,000 20,000 10,000 10,000 20,000 40,000 8,000 28,000 24,000 40,000 8,000 12,000 36,000 56,000 2,000 5,000 13,000 20,000 £ 196,000 £130,000 £ 330.000 £ 656,000 £ 1 ,205,000 £917,000 £1,410,000 £3 ,532,000 * (excluding Urban unforeseen roads) Source: Develotsnent P lan : 1955-1960 C a p i t a l Works Programme (Dar-es-Salaam: Government P r i n t e r , 1955), pp. 16-17. APPENDIX B: F.Y.P ROAD .PROGRAMME - ROAD EXPENDITURE PARRIED OVER FROM T.Y.P.  AND ESTIMATED ROAD EXPENDITURE BY 1966/67 Route and Project Designation Capital T. Y. P. F. Y. P. 1966/67 Year Expenditure Carryr- Provision Approved F. Y.. P. over Estimate A. Main Roads 1. Great North Route Arusha (Dodoma Comer) r Babati ) Extension of, bitumen, towards j Babati Iringa - Makumbako -Extension..of ..bitumen towards Utete Programme Total 2. Western Trunk Route Uganda Border - Bukoba -Biharamulo: Build Kyka Bridge, blturalnization of Uganda  Border - Bukoba Nyakanazi - Uvinza - build  Malagarasi River , Bridge, Uvinza - Zambia Border - build Uvinza Bridge to replace_ferry 1968/9 £ 35,000 £ 1968/9 1966/7 1967/68 63,500 £ 35,000 £ 63,500 1968/69 £ 98,500 £ £ 98,500 £ 1964/66 1967/69 £ 750,000 $ 250,000 £ 500,000 £ 195,000 200,000 300,000 200,000 300,000 29,000 5,000 Programme Total 1964/68 £ 1,250,000 £ 250,000 £ 1,000,000 £ 229,000 APPENDIX B F.Y.P. ROAD PROGRAMME - ROAD EXPENDITURE CARRIED OVER FROM T.Y.P. AND ESTIMATED ROAD EXPENDITURE BY J966/67 ~ - " ~~ Capital T. Y. P. '. F. Y. P. 1966/67 Route and Project Designation Year Expenditure Carry- Provision Approved ; F. Y. P. o\*er Estimate 3. Eastern Trunk Route Kenya Border - Tanga - Segera Sigi River: Bridge and  Extension of bitumen towards  Kenya Border Segera - Chalinze: Bltuminlzation of (IDA scheme No. 3) Chalinze - Naganga: Survey of new alignment (stabilized earth standard) AID scheme Nanganga - Mingoyo - Mtwara; Complete engineering gravel  to Nanganga. Commence bitu-minization of Mingoyo to Nanganga. (Part I IDA Scheme No. 5) Programme Total 1964/66 £ 100,000 £ 22,000 £ 78,000 £ 1964/67 1964/65 & 1968/69 625,000 235,000 235,000 1968/69 -225,000 625,000 225,000 360,500 13,750 1964/69 £ 1,185,000 £ 257,000 £ 928,000 £ 384,250 APPENDIX B: AND ESTIMATED ROAD EXPENDITURE BY 1966/67 R o u t s and P r o j e c t D e s i g n a t i o n C a p i t a l T. Y. P. Y e a r E x p e n d i t u r e C a r r y -F. Y. P. o v e r F. Y. P. 1966/67 P r o v i s i o n Approved E s t i m a t e 4. C e n t r a l T r u n k Route Dodoma - S I n g i d a : S u r v e y and ) r e c o n s t r u c t i o n M a n y o n i - Issuma) t o e n g i n e e r i n g g r a v e l s t a n d a r d ) Programme T o t a l 5. N o r t h e r n T r u n k Route T a v e t a J u n c t i o n - S e g e r a : ) B l t u m i n i z a t i o n o f >Ikumbara._to ) K i s a n g i r o (IDA scheme No. 4T~ ) Programme T o t a l 6. S o u t h e r n T r u n k Route Nanganga - M a s a s i - Songea E n g i n e e r e d g r a v e l Nanganga -M a s a s i Songea - Njombe - Wino -K i f a n y a : R e a l i g n m e n t M t v a r a - Z a m b i a L i n k Road: t o r a i s e standard, o f e x i s t i n g  r u n n i n g s u r f a c e between Mtwara  and G.WR Programme T o t a l 1964/63 £ . 231,900 £ 231,900 £ 1964/68 £ 1,319,375 £ 146,000 £ 1,173,375 £ 930,000 1964/66 £ 221 ,000 £ 1964/66 £ 80,000 44,000 £ 221,000 £ 3 6 , 0 0 0 50,000 650,000 1964/67 £ 301,000 £ 44,000 £ 257,000 £ 700,000 APPENDIX B (F.Y.P. ROAD PROGRAMME CONT'D.) Route and Project Designation Capital T. Y. P. F. Y. P. 1966/67 Year Expenditure Carry- Provision Approved F. Y. P. over \ Estimate. B. Major Link Roads Mwanza - Usagara - Biharamulo:' Bltuminlzation of Usgara - Kikongo Nyakanga - Bunda - Mvanza: Complete Engineered gravel Mwanza-Nyakanga, bituminlzat&on of Mile 22.to Ma.gu. Morogora - Iringa - _BlturainizatIon of Morogoro Mile 38 to Mile 148. (IDA schemes No. 1 & 2) (has been reduced to engineering design) Makuyuni - Ngorongorq - Bariat i -Mwanza - Arusha, Link Road Feasibility Survey Kenya Border - Musoma: Engineered Gravel; ?4usoma to Mile 20'. Drain-age Mile 20 to Kenya^Border. TlDA scheme No. 9) Usagara -.Nzega: Bituminization  of 23 miles of road from Usagara  to Maguki Lindi - Masasi - IDA project completed; Dar-es-Salaam - Tunduma: Survey & Design for the section of GNR Tunduma - Iringa. AID project Programme Total 1967/68 £ 50,000 £ K,500 £ 35,500 £ I964/66 1964/67 1964/65 & 1968/69 1964/66 1967/68 240,000 50,000 187,500 186,250 60,000 977,875 101,500 180,000 876,375 50,000 187,500 136,250 13,500 100,255 1964/69 £ 1,691,625 £ 176,000 £ 1,515,625 £ 113,755 APPENDIX B (F.Y.P. ROAD PROGRAMME - CONT'D.) """ Capital T. Y. P.' F. Y. P. 1966/67 Year Expenditure Carry- Provision Approved F. Y. P. over Estimate Route and Project Designation C. Major Feeder Roads Magu-Bukwimba: Engineered gravel Magu - Bukvrimba Uyole - Itungi Port: to bitumen  s t a n d a r d 77 miles (IDA - No. 6 & 7' Kilondota - Bari a t i : Stabilized earth, Kilondoto-BariaU7TlD*F#8 Dar-es-Salaam K i b i t i : Extension of bitumen miles 4 to K i b i t i Mile~8S (IDA scheme No. 10) " .. Eunda - Nansio: E^gj^Qered. Gravel (AID Scheme) Eastern Trunk Route - Kilwa: Survey of new alignment stabilized earth^stanclard.. (Subject to AID Fea s i b i l i t y survey) Bukindo - Katunguru - Xarumo: Survey & Stabilized earth Buklndo-Buchenzi (32 miles); engineered  gravel B u c h e n z i - Karuma (49 miles Katunguru - Sengerema: Survey £  engineered gravel - 14 miles Kasemwa - Buyagu - Busisi: Survey & stabilized earth on hew alignment 1967/63 £ 130,000 £ 1964/67 1,071,875 310,000 991,250 1964/67 1964/65 1968/69 1965/69 130,000 1967/69 113,500 1968/69 126,225 3 0 , 0 0 0 23,000 630,000 216,000 167,000 167,000 £ 130,000 £ 500 9,000 1,062,875 308,072 780,000 130,000 113,500 126,225 5,000 963,250 573,500 414,000 268,860 62,510 8,875 4,450 2 2 , 0 0 0 APPENDIX E (F.Y.P. ROAD PROGRAMME - CONT'D.) 1966/67 Approved. Estimate Route and Project Designation Capital T. Y. P. - F. Y. P. Year Expenditure Carry- Provision F. Y. P. over C. Major Feeder Roads (cont'd.) Marangu - Usseri: Survey & bltu-minlzation of Mikuml - Nsolwa Mikumi - Ifakara: Survey & bitu-minization of Mikumi - Nsolwa Songea - Mbamba Bay: Survey &  engineered gravel (lOS miles) Dar-es-3alaam - Bagamoyo: Survey  and extension of bitumen Muheza - Amani: Survey & exten-sion of bituminization of 22 miles 1968/69 1968/69 1964/65 1968/69 1967/68 - 1964/65 196S/69 1964/68 1964/68 304,750 125,000 127,000 210,000 154,000 152,000 170,000 52,000 20,000 304,750 125,000 127,000 210,000 154,000 100,000 150,000 £ 13,000 12,500 32,700 Improvements to other major feeder  roads (Regional programmes to be submitted) Bituminization of other major  feeder roads (Regional programmes to.be submitted) Kiberege - Lupiro - Malinyi Mbeya (Tunduma) - Sumbawanga: minor improvement works * Rural Feeder Roads - Lake Region**) Programme Total * (To be included i n Feeder Roads programme when Road R. Laboratory's f i n a l report on Transportation has been received) ** (Funds provided to purchase materials for setting up of 40 road camps in association with the proposals to take over certain d i s t r i c t roads i n Mwanza, Mara and Shinganga Regions) - - - - 25,000 - - - 175,000 1964/67 £'5,412,600 £ 522,000 £ 4,890,600 £1,366,967 APPENDIX B (F.Y.P. ROAD PROGRAMME - CONT'D.) Capital T. Y. P. F. Y. P. 1966/67 Route and Project Designation Year Expenditure Carry- Provision Approved F. Y. P. oyer Estimate D. Feeder Roads i n Rural Areas; Miscellaneous Roadworks and Equipment Rural Feeder Roads, Provision of ) culverts & bridging "(AID & CAL) ) Surveys & Investigations ) Teconomic f e a s i b i l i t y study of a ) Ruanda - Tanzania Roa&Link was ) carried out under th i s scheme) ) Tourist Roads - Roads selected by) the National Tourist Board ) Cotton Roads Programme Total 1964/67 £ 1,520,000 £ 585,000 £ 935,000 £ 112,500 1964/69 1964/69 180,000 54,000 180,000 54,000 17,500 - • .. -.. 61,295.9 1964/69 £ 2,372,000 £ 667,000 £ 1,705,000 £ 191,295.9 * Grand Total 1964/69 £13,861,995 £2,062,000 £10,800,000 £4,015,267.9 * ( A l l project designations have not been shown, but Programme t o t a l i s for a l l projects) T. Y. P. - Three Year Plan: 1961/62 - 1963/64 ?. Y.. P. - Five Year Development Plan: 1964 - 1969 145 APPENDIX C GROWTH OP TANGANYIKA'S EXPORTS -QUANTITIES, SELECTED PRINCIPAL PRODUCTS Year Sisal «000 Tons Coffee •000 Tons Cotton «000 Tons Ground-nuts •000 Tons Cashew nuts '000 Tons Diam- -onds •000 carrats Total a l l Exports £'000.0( 1913 21 1.1 2.2 1919 17 1920 17 1921 8 3.8 1.1 1922 10 4.3 1.5 12.5 1.3 1923 13 4.0 1.5 16.5 1.7 1924 18 5.3 2.5 18.7 2.6 1925 18 6.0 4.5 9.1 2.9 1926 25 6.5 4.9 15.9 3.0 1927 33 6.6 3.9 14.1 3.3 1923 36 10.4 4.9 10.6 3.9 1929 46 8.9 4.9 7.8 23.3 3.7 1930 50 11.5 3.7 17.3 13.3 2.6 1931 56 9.3 2.4 3.1 7.8 1.6 1932 61 11.4 3.2 15.9 1.4 2.2 1933 70 12.7 5.1 19.2 1.4 2.5 1934 73 14.8 5.6 8.0 1.2 2.6 1935 83 18.6 10.0 I6.4 1.4 3.4 1936 81 12.1 11.3 22.8 2.7 4.5 1937 91 13.6 11.5 22.3 3.2 5.0 ) 1 4 6 APPENDIX C GROWTH OF TANGANYIKA'S EXPORTS - QUANTITIES, SELECTED PRINCIPAL PRODUCTS Year S i s a l '000 Tons Coffee '000 Tons Cotton «000 Tons Ground-nuts '000 Tons Cashew nuts '000 Tons Diam-onds '000 . carrats T o t a l a l l Exports £ '000 ,000 1938 101 13.7 8.9 3.8 3.6 3.7 1939 93 16.6 11.6 4.5 .9 3 .4 4.3 1946 112 10.0 4.0 .5 3.2 119. 1947 96 13.9 7.0 3.5 1.3 92. 11.1 1948 117 11.3 9.9 3.1 5.6 148. 16.2 1949 113 12.0 10.8 .8 3.6 131. 20.9 1950 120 15.0 7.0 .1 6.5 131. 24.0 1951 142 16.6 8.3 3.5 8.2 9. 40.5 1952 158 18.6 11.1 9 .4 11.5 332 47.4 1953 171 15.2 14.8 1.1 11.4 171 35.4 1954 168 19.4 12.1 2.5 16.3 330 37.3 1955 174 18.5 20.4 5.6 18.2 323 37.9 1956 186 21.6 27.9 15.1 16.7 353 47.0 1957 182 18.5 27.2 16.1 33.7 373 41-4 1958 198 22.2 32.1 12.6 31.3 515 44.3 1959 209 19.6 30.7 12.1 33.2 555 47.9 Note: T o t a l Value of Exports includes other minor commodities not shown on Table , e.g., Tea, Skins - Hides & Calf. , Fur , Source: Economic Development of Tanganyika "^Dar-es-Salaam: Government P r i n t e r , I960), pp. 12-13. -APPENDIX D Legend II III THE MARKETING OF COFFEE AND COTTON IN TANZANIA  AND THE DIFFERENT MODES OF TRANSPORT USED IN MOVING  THE CROP FROM THE FARM TO EXPORTING PORT Peasant farmer 1W~ Mt (Porterage, bicycle or Lorry (hired by.a group of farmers Buying Station Primary Society 1 J Benefits •:' M : (Trucking)%.. & Pecuniary / Ginning or Curing Factory U N I 0 N • - * VFCU , KNCU x -J 1 v _ 4-Proceed to farmer, i.e., benefits (Union and/or LSMB Revenue) (cost II, III & IV) Auctioning, storage transport to Shipping Port L & S M B Transportation Benefits Mt. - Mode of Transport V.F.C.U. - Victoria Federation of Cooperative Union K.N.C.U. - Kilimanjaro Native Cooperative Union L. & S.M.B. - Lint & Seed Marketing Board ^SsTrucking (e.g., depend-Water'" (ing whether i t R a i l (is exported via , (Mombasa or Dar-(es-Salaam R a i l to Mombasa Auctioning,' Transport to shipping port by "^j K N C U (Union) APPENDIX E: A FRAMEWORK FOR DETERMINING NATIONAL AND REGIONAL TRANSPORT NEEDS [148 | S3 [ ( M A C R 0)' • i m vXV<VVXXXXXXXXXV\X< I i REGIONAL TRANSPORT NEEDS' AGGREGATE TRANSPORT NEEDS ( e . g . , KENYA, UGANDA, TANZANIA, ZAMBIA) NATIONAL TRANSPORT NEEDS to, VXXXXXXVXXXXXXXXX vXXXXXXXN\XX^£$Sxwv\> • ( M I C R 0)|, PHYSICAL , CHARACTERISTICS i i 1.W.V.VA*. C"H A R A C T E R I S T I C S 0 F T H E E C O N O M Y POPULATION -PRESENT &. FUTURE AGRICULTURAL PRODUCTION INDUSTRIAL PRODUCTION PATTERN OF TRADE j G r o w t h , G e o g r a p h i c a l D i s t r i b u t i o n ( U r b a n / R u r a l ) , P o p u l a t i o n move-ment, P e r C a p i t a Income E x p o r t L o c a l C o n s u m p t i o n I n t e r n a l E x n o r t L o c a l foods 1 In m o r t e d Goods P r e s e n t | P l a n n e d I P r e s e n t ( P l a n n e d . P r e s e n t P l a n n e d P r e s e n t P l a n n e d P r e s e n t P l a n n e d P r e s e n t P l a n n e d T o t a l A g r i c u l t u r a l P r o d u c t i o n ; Type o f C r o p s ( c a s h St f o o d ) ; E x p o r t c r o p s ( b u l k y , p e r i s h a b l e ) C r o p s f o r L o c a l C o n s u m p t i o n -i n t e r - r e g i o n a l t r a d e ; L o c a t i o n o f new A g r i c u l t u r a l Schemes T o t a l I n d u s t r i a l P r o d u c t i o n ; Type o f goods p r o d u c e d ; L o c a t i o n o f e x i s t i n g I n d u s t r i e s ; New I n d u s t r i a l Schemes ( l o c a t i o n , t y p e and volume o f p r o d u c t i o n ) Demand f o r I m p o r t s ; Volume o f I m p o r t s ( i . e . , r e d u c t i o n due t o I m p o r t Sub-s t i t u t i o n I n d u s t r i e s ) ; Demand f o r L o c a l Goods; D i s t r i b u t i o n P a t t e r n ( i . e . , w h o l e s a l e and r e t a i l t r a d e ) NEW TRANSPORT NEEDS R a i l , r o a d , w a t e r , A i r , P i p e l i n e , P o r t s ; new T e c h n o l o g i c a l p o s s i b i l i t i e s ( e . g . , . i n c o m m u n i c a t i o n s , t e l e p h o n e , r a d i o , T.V.) - w i l l d e t e r m i n e A l l o c a t i o n o f r e s o u r c e s in T r a n s p o r t S e c t o r . TRAFFIC ASSIGNMENT P r e s e n t Future Goods and P a s s e n g e r s ( R a i l , R o ad, W a t e r , A i r , P i p e l i n e , P o r t s ) ':\*:*:vXv$& •:co•:•:«•:•x«•:««•:•:•:•:•-•>•'-,•, INVENTORY OF EXISTING TRANSPORT F A C I L I T I E S R a i l , Road, Water, A i r , Pipe Line, Ports; Storage fac i l i t ies 149 SELECTED BIBLIOGRAPHY A. TRANSPORTATION 1. Books a) General P a i r , L.M. and W i l l i a m s , W. Economics of T r a n s p o r t a t i o n . New York: Harper and B r o t h e r s . Promm, G. ( e d ) . Transport Investment and Economic Develop-ment. Washington, D.C.: Brookings I n s t i t u t i o n : . Transport Research Programme. 1965* G w i l l i a m , K.M. Transport and P u b l i c P o l i c y . London: George A l l e n and Unwin L t d . , 1964. Owen, W. S t r a t e g y f o r M o b i l i t y . Washington, D.C.: Brookings I n s t i t u t i o n : Transport Research Programme, 1964. Soberman, R. Transport Technology f o r Developing Regions: A Study of Road. 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