The transportation market in Yemen is relatively well developed, hovewer not structured and transport companies operate under a consortium of pool of truck owners who register their trucks under cooperative office.
In the main logistical hubs transportation agents can access large trucking capacities by pooling together multiple truck owners, they charge transporters directly and there are no additional costs to users above quoted rates.
The capacities listed below refer to trucks that are wholly owned by the companies listed, most of the transporters can expand their listed capacities through sub-contractor arrangements.
In certain regions when tribal tensions are high; trucks may be hijacked for ransom or to pressurize tribal negotiations.
Tariff System contracting for primary route transport
Under the current operational context, WFP logistics unit envisages the continuity of applying the tariff system in the primary transport contracting process where a tariff can be established for multiple transporters for the same route to attend to WFP operational requirements. This can be attributed for the following points:
It is anticipated that the scale of operation (food to be uplifted) shall increase significantly (almost double) in the first six months of 2013 compared with the second six months of 2012.
Following to a quick market assessment, WFP local carriers still depend to a high extent on trucks subcontracting from the local market through established cooperative consortium offices. No single transporter has adequate truck capacity to accommodate multiple EDPs in the current tender.
Most of the WFP local carriers have limited financial capacity. Moreover, local banking is not helpful. Lending is only on high interest rates owing to the Yemeni central bank policy to keep the stabilisation of the exchange rate of the local currency.
Tariff system will allow multiple transporters to provide a combined capacity of transport service to WFP. This shall assist in building the local transport capacity and avoid unforeseen risk of transport cartels or semi-cartels.
Secondary transport definition and classification
In the Yemen operational context, the secondary transport service is meant to cover the cargo movement from WFP intermediate warehouses up to the FDP (final delivery point) where the food consignment custody transfer from WFP to its cooperating partner.
WFP Yemen CO applies standard contract for the secondary route transportation.
For more information on transporters contact details, please see the following documents: