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Dodging the Bullet: Protecting Food Aid from Civil Unrest International Food Aid Conference

Dodging the Bullet: Protecting Food Aid from Civil Unrest International Food Aid Conference Lisa Miller April 16, 2008. Uganda. Kenya. Mombasa. Rwanda. Tanzania. Dar es Salaam. Presentation Outline. Potential Issues Steps and Stopgap Measures Players Mitigating Factors.

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Dodging the Bullet: Protecting Food Aid from Civil Unrest International Food Aid Conference

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  1. Dodging the Bullet: Protecting Food Aid from Civil Unrest International Food Aid Conference Lisa Miller April 16, 2008

  2. Uganda Kenya Mombasa Rwanda Tanzania Dar es Salaam

  3. Presentation Outline • Potential Issues • Steps and Stopgap Measures • Players • Mitigating Factors

  4. Potential Issues • Port • Capacity and congestion • Tariff implications • Necessity of additional certificates • Port management • Transport • Road composition • Availability of trucks/railways • Potential bottlenecks

  5. Potential Issues • Cost • Ocean rate increases- port changes • Inland rate increases- escort services, surcharges • Programmatic • Delayed arrival times • Potential pipeline breaks • Legal • Contract amendments • New contracts

  6. UGANDA (MT) Corn Meal 300 Corn Soy Blend 1,020 Lentils 120 Vegetable Oil 110 Wheat 16,300 TOTAL 17,850 Total Value $12,281,940 RWANDA (MT) Bulgur 2,270 Corn Soy Blend 2,340 Vegetable Oil 2,600 TOTAL 7,210 Total Value $6,145,420 Title II Commodity at Risk

  7. Wagons which rioters attempted to open in route to Uganda Wheat damaged by rioters Riot police securing the area in the Kenya slums

  8. Steps and Stopgap Measures—Uganda • Verified information regarding situation • Analyzed transportation alternatives • Negotiated inland transport rates • Notified USAID/Kampala and Freight Forwarder • Determined Mombasa best alternative • Notified FFP/W • Amended inland transport contract • Modified freight account pipeline • FFPW/POD Office approved pipeline request

  9. Steps and Stopgap Measures—Rwanda • CRS/Rwanda alerted USAID/Kigali of Kenya unrest • USAID/Kigali informed FFP/W • USAID/Kigali advised ACDI/VOCA and WV Rwanda to investigate alternative transport options • Communicated with freight forwarder • Analyzed transportation alternatives • Determined to divert shipments to Dar es Salaam • Received approval for new route • Amended inland transport, discharge surveyor contracts and freight account pipeline • Currently monitoring discharge and inland transit • Documenting Dar operations

  10. Final Conclusions • Uganda • More economical to utilize security escorts from Mombasa • Timing met program needs • Previous experience with Dar unfavorable • Rwanda • Less risky to divert to Dar • Shipping line had priority placement • Timing met program need • Unsecured and uncertain transportation options in Kenya

  11. PVOs/WFP Freight Forwarder Food for Peace Mission AID Transportation Vessels Owners Inland Transporters Discharge Surveyors Host Country Government Officials USDA Commodity Office Players

  12. Mitigating Factors • Include different port options in agreement, freight tender and booking terms • Investigate different transport options during Bellmon Analysis • Develop contingency plan • Consider the pros/cons of using a through bill of lading • Ensure proper liability clauses in contractual agreements

  13. Consider containerized cargo Use variable costs Develop open communication channels Maintain strong relationships with other players Mitigating Factors

  14. Dodging the Bullet: Protecting Food Aid from Civil Unrest RIGHT • Each player is an integral part in making sure that the goods arrive safely at thetime in the condition for the cost and at theplace. RIGHT RIGHT RIGHT RIGHT

  15. Celebrating 45 years of empowering people to succeed in the global economy.

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