ESCAP Efficient Cross-Border Transport Models

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1 Policy Dialogue on Economic and Transport Development in Border Areas in Eastern South Asia Shillong, India, 4-5 December 2013 ESCAP Efficient Cross-Border Transport Models Mr Sandeep Raj Jain Economic Affairs Officer Transport Facilitation and Logistics Section Transport Division

2 Outline Existence of non-physical barriers impedes movement of goods and vehicles across borders Efficient cross border models provides methodology to analyze challenges and alternatives to provided appropriate solutions Transport facilitation measures can complement and magnify effect of other border development policies on growth of these areas

3 1Background of Models Many non-physical barriers hinder transport in the region Operational environment always unique, with its particular challenges Multiple solutions with competing benefits and challenges Different views in private and public sector Benefits and costs of solutions not directly comparable No agreed methodology for assessment of most appropriate approach Often no thorough assessment Waste of resources Continuation of ineffective practices

4 2Efficient Cross-border Transport Model ESCAP Efficient Cross-border Transport Models can provide: Analytical framework Systematic assessment of specific operating environment Solutions through regional analysis Freight and passenger transport for road and rail

5 Methodology: Identification of barriers Institutional requirements and challenges, eg Transport permit for motor vehicle Permission for foreign trailer to enter the country Third party liability insurance of vehicle (for prime mover/trailer/truck) Temporary importation (of prime mover/trailer/container/truck) Mutual recognition of driving license Mutual recognition of vehicle certificates/registration Side of steering wheel Visa requirement Possible route limitations Guarantee for trailer and container Operational requirements and challenges, eg Use of compatible vehicles and equipment Compliance with local standards regarding weight and dimensions Compliance with local emission regulations Compliance with local laws Requirement for transloading equipment Transloading labour Requirement for local partner Risk of damage or loss of goods or container Market access Local knowledge throughout route Road safety Access to local services Use of containers

6 Methodology: Identification of Solutions For each barrier, a set of solutions are considered Can include institutional, operations and commercial solutions Permission for foreign trailer to enter the country Compliance with local standards regarding weight and dimensions Multilateral agreement Bilateral agreement Double registration Harmonization of regulations Adjustment of fleet/transport equipment

7 Methodology: Selection of Alternatives (1) All operational alternatives appropriate for the considered route, Not limited by current agreements and conditions Eg for freight transport by road, Trailer swap: Trailer is detached from the prime mover and attached to another prime mover Container swap: Container is moved from one trailer to another, with cargo inside Manual transloading: Cargo transferred by hand or equipment from container or truck to another No transloading: Cargo carried by the same trailer and prime mover in both countries

8 Methodology: Selection of Alternatives (2) Truck and container Manual transloading Truck and trailer

9 Methodology: Rating Issues Trailer swap Container swap Manual transloading No transloading Solution/Arrangement Difficulty Cost Transport permit for motor vehicle x Multilateral agreement 5 5 Bilateral agreement 3 3 Temporary importation Of prime mover x Accession to international convention 4 4 1Identification of issue Of trailer x x Accession to international convention Of container x x x Accession to international convention Bilateral agreement 4 3 Double registration Bilateral agreement 3 3 Double registration Bilateral agreement Evaluation of solution(s) Total number of issues Total difficulty points (min) Total cost points (min) Comparison of cumulative barriers

10 Methodology: Output Factor Trailer Swap Container swap Manual transloading No transloading Difficulty Cost Efficiency Reliability Total

11 Methodology: Benefits Understanding and comparison of overall benefit and challenges Incorporating both institutional and operational issues, public and private sector perspectives Understanding factors underlying current practice, Eg why is manual transloading popular in many countries? Understanding the way forward in terms of selected alternative, Including requirements for implementation and distribution of cost and benefit Weighting can be adjusted to reflect situation and priorities of a corridor or a group of countries

12 Possible applications Use of regional model Freight Transport by road: Model arrangements (technical, institutional and operational) for trailer swap Passenger transport by road: Model arrangements for a two-bus service, where two operators cooperate to provide a jointly owned international service Rail transport: Discussion of regional good practices in the arrangement of freight and passenger transport Use of methodology for planning of facilitation projects

13 3Special Border Policies (1) Border areas often economically and socially less developed compared to capital and economic hubs Transport facilitation measures can be introduced at border area only to support efficient cross-border transport practices Encourages trade through border Economic and trade opportunities for border areas Can be introduced in Special Economic Zone/Free Trade Area/Special Commercial Area frameworks

14 Special Border Policies (2) Transport: abolishment or relaxation of transport permit or technical requirements, mutual recognition of registration, mutual recognition of vehicle identification Immigration: Border area as visa free zone, streamlined processes for border area (visa on entry, multiple entry visas) Insurance: The special border area can be considered within range of insurance services in both countries and covered by operator s national insurance scheme Customs: Requirement for deposit or fee can be waived for operations at border area Support of business ventures: Tax incentives for capital investment for dry ports and other facilities for transshipment operations, business matching for transport operations, business and logistics services in the area

15 Thank you Efficient Cross-border Transport Models: Contact: