Transcript Regional Connectivity in the Greater Mekong

Regional Connectivity in the
Greater Mekong Subregion
GMS Freight Transport Association
(FRETA)
Presentation to Regional Forum on
ASEAN SME Regional Gateway – GMS
SME Biz Network, Khon Kaen, Thailand,
6-10 September 2010
By
Rattanatay Luanglatbandith, PhD
Asian Development Bank
Thailand Resident Mission
1
Scope
1. GMS Infrastructure Connectivity
2. Cross- Border Transport
Agreement (CBTA)
3. Logistics status in the GMS
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The Greater Mekong Subregion (GMS)
People’s Republic of China
Land area: 633 thou sq km
Population: 93.8 M
GDP per capita: US$1,032
Myanmar
(figures for Yunnan and Guangxi only)
Land area: 677 thou sq km
Population: 54.8 M
Viet Nam
GDP per capita: US$255
Land area: 332 thou sq km
Population: 83.1 M
Thailand
GDP per capita: US$622
Land area: 513 thou sq km
Population: 65.3 M
Lao PDR
GDP per capita: US$2,727
Land area: 237 thou sq km
Population: 5.6 M
The GMS in 2005
GDP per capita: US$491
Land area: 2.6 M sq km
Population: 316 M
Cambodia
GDP per capita: US$1,102
Land area: 181 thou sq km
Population: 13.8 M
GDP per capita: US$393
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The Economic Corridor Approach
Infrastructure is developed in specific geographical
areas based on economic potential.
Usually starts with transport links, but extends to other
infrastructure as well as the “software” for their
optimal use.
Some Characteristics of Economic Corridors:
• Create links to major markets;
• With nodal points – centers of enterprise development;
• Extend the benefits of improved transport linkages to
remote locations and integrates them with more prosperous
areas;
• Open up investment opportunities;
• Promote synergies through the clustering of projects;
• Provide demonstration effects.
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Existing Corridors
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North-South Economic Corridor
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East-West Economic Corridor
VIE: East-West Corridor
(Lao Bao-Dong Ha)
LAO: East-West Corridor
(Phin-Dansavanh)
With assistance from
the Royal Thai
Government
JBIC-assisted 2nd
Mekong International
Bridge
JBIC-assisted Hai Van
Tunnel Construction and
Da Nang Port
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Improvement
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GMS Southern Economic Corridor
Mostly 4-lane highways;
not a constraint to crossborder traffic.
Upgrading to be
completed by 2009 with
ADB and Japan
assistance.
Roads
Upgrading of a section in
Cambodia (70 km) to be
completed by 2010 with
assistance from Viet Nam;
Financing requested for
remaining sections.
Upgrading completed in
2007 with PRC
assistance.
Mostly 4-lane highways;
not a constraint to crossborder traffic
In good condition
Upgrading completed in
2007 with Thailand,
Korea, World Bank and
ADB assistance.
Upgrading to be completed
by 2010 with ADB, Korean,
and Australian assistance.
Upgrading to be
completed by 2008 with
ADB and Japan
assistance.
Bridge over Mekong to
be financed by Japan
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All GMS Corridors
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The GMS Cross-Border Transport
Agreement (CBTA)
What is the CBTA?
• Multilateral agreement ratified by all six GMS
countries
• Purpose is to eliminate non-physical barriers to
cross-border transport in the GMS
• Includes references to existing international
conventions (such as the KYOTO)
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The GMS Cross-Border Transport
Agreement (CBTA) (cont.)
• Covers in one document all the relevant aspects of crossborder transport facilitation, which includes:
 Facilitation of cross border movement of goods
 Single-stop/single-window inspection
 Harmonization/integration of systems
 Exchange of traffic rights
 Provision for transit traffic
 Cross-border movement of persons
• Has 20 implementing annexes and protocols that:
- Applies to selected and mutually agreed routes and points
of entry and exit in the six countries.
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Cross-Border Transport Agreement (CBTA)
Coverage
• Exchange of
Traffic Rights
Lao PDR
Viet Nam
C-L,C-V Q-L,Q-V
“No-Man’s Zone”
Physical Inspection
C-Customs
L-Lao PDR
I-Immigration
V-Viet Nam
Q-Quarantine
CCA
• Facilitation of
Frontier-Crossing
Formalities
Export/Transit Cargo
As required
C-L+V
Q-L+V
I-L+V
I-V+L
QV+L
CV+L
Components
• Framework
Agreement
• Annexes and
Protocols (A&P)
• MOUs for Pilot
Implementation
Export/Transit Cargo
As required
C-L,C-V
Q-L,Q-V
Physical Inspection
CCA
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Objectives of CBTA
• Facilitation of border crossing formalities (single
window and single stop customs inspection,
coordinating of hours of operation; and exchange
of advance information and clearance)
• Facilitate cross-border movement of people
(multi-entry visa, recognition of driver license)
• Facilitate cross-border movement of goods
(regional transit regime, phytosanitary and
veterinary inspection)
• Exchange of traffic rights
• Requirements for admittance of road vehicles
• Institutional Arrangements
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POTENTIAL NEW
BORDER CROSSING
POINTS PLAN: BY 2009
FULL IMPLEMENTATION
Geographic
Coverage of CBTA
•
Mukdahan – Savannakhet
•
Lao-Bao – Dansavanh
YOUYIGUAN (PRC)
- HUU NGHI (VIE) •
SECOND PHASE
(commencing in 2007)
Aranyaprathet – Poipet
•
Bavet – Moc Bai
•
Hekou – Lao Cai
•
Myawaddy – Mae Sot
THAKHEK
(LAO) – •
FIRST PHASE
HA TINH in
(VIE)
(commencing
2005/06)
THIRD PHASE
(commencing in 2008/2009)
LORK (CAM) –
XA XIA (VIE)
Mae Sai – Tachilek
•
Chongmek – Wang Tao
•
Houayxay – Chiang Khong
•
Nam Phao – Cau Treo
•
Nongkhai – Thanaleng
•
Mohan – Boten
•
•
Hat Lek – Cham Yeam
Veune Kham – Dong Kralo
•
Ruili – Muse
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Status of CBTA Implementation
• All GMS countries signed 20 Annexes and
Protocols of CBTA.
• PRC, Cambodia, Lao PDR and Vietnam signed
and ratified all 20 Annexes and Protocols of
CBTA.
• Thailand Ratified 11 Annexes and protocols,
while Myanmar will ratify all of the Annexes
and Protocols when it is ready to implement
CBTA.
• CBTA implementation very slow:- GMS
Leaders in 2008 asked to expedite CBTA
implementation to facilitate cross-border
trade, investment and tourism in the GMS.
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Status of CBTA Implementation
• Single-Window Inspection(SWI) being implemented
at Savannakhet (Lao PDR) and Mukdahan (Thailand)
border checkpoints, and at Hekou (PRC)-Laokai
(Vietnam) border checkpoints.
• Single-Stop Inspection (SSI) being implemented at
Dansavanh (Lao PDR) and Lao Bao (Vietnam) border
checkpoints.
• Tripartite Exchange of traffic rights along the EastWest Economic Corridor to commence on 11 June
2009.
• GMS Customs Transit System (CTS) and GMS
temporary transport permit in place along the EastWest Corridor but not widely used by operators,
especially in Thailand due high cost/high guarantee
deposit required by Board of Trade of Thailand.
• Exchange of traffic rights along the Southern
Economic Corridor at Bavet(Cambodia) and Mocbai
(Vietnam) being implemented with quota increased
from 40 to 150 in May 2009.
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Status of CBTA Implementation
• Addendum to implement exchange of traffic rights
along the Southern Economic Corridor at Aranyaprathet
– Poipet with quota 40 signed on 17 September 2009.
Thailand and Cambodia need to reach agreement on
location of new border checkpoints at Aranyaprathet –
Poipet, and possibly reinstate rail link at Aranyaprathet
– Poipet.
• GMS Customs Transit System (CTS) and GMS
temporary transport permit in place along the EastWest Corridor but not widely used by operators,
especially in Thailand due high cost/high guarantee
deposit required by Board of Trade of Thailand
• Manual Advance information Exchange being
implemented at Dansavanh-Laobao border checkpoints;
• Exchange of traffic right between PRC and Vietnam
discussed and revised in July 2010. Agreement that
Vietnamese truck can now run up to Senzhen and
Chinese truck can run up to Hanoi and Haiphong
reached.
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Key Implementation Issues of CBTA
• Ratification of the annexes and protocols
• Capacity building at national and border levels
• Establishment of required border infrastructure
• Development of ICT/MIS for efficient border
management
• Passage of new legislation to establish various
transport facilitation regimes
• Continue to strengthen goodwill and trust among GMS
countries
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•
•
•
Key constraints in freight (road)
transport in the GMS
Inconsistent standards of freight vehicles
lack of ongoing road maintenance;
trans-shipment of cargo at the borders creating
additional costs due to increased touch points along the
supply chain;
•
lack of complementary arrangements, such as
container freight depots, at border crossing points to
facilitate a hub & spoke model, bonded warehousing;
•
lack of professional industry standards for freight
management, vehicle maintenance, driver control,
technology awareness, Health-Safety & Environment
etc,
•
Low economic volume and thus low freight traffic, with
border-crossing trade more than transit.
The absence of standardization in freight transport business
can be the biggest impediment in the progress of the
regional trade.
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Logistics in the GMS
• Different degrees of logistics development among
GMS countries with PRC more advanced followed by
Thailand. CLVM lack behind.
• Logistics services providers, shippers, transport
operators and freight forwarders are mainly national
centric with little or no regional orientation. High
competition with international logistics services
providers
• Overall lack of institutional and legal framework
governing logistics development in most GMS
countries, and no single agency or institutional entity
responsible for logistics development at the national
level.
• No coherent regional logistics development policy
and plan.
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Logistics in the GMS
• Border crossing remains the weakest link in the corridors.
• Lack of cooperation network within GMS and between
logistics service providers
• Distribution network is limited in the GMS, with little ICDs
in the nodal centers along the corridors
• Difficult to guarantee logistics service quality and
reliability.
• Bilateral and trilateral exchange of traffic rights must be
effectively expanded
• Routes of the corridors under CBTA limited, must be
expanded; and quota issue must be revised.
• Logistics information dissemination and sharing limited.
• Capacity development for all, providers/operators, usersimporter-exporter, manufacturer and traders; legal and
institutional capacity, competitive logistics skills needed.
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THANK YOU
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