Coastal Shipping in Thailand and Regional Cooperation on Coastal Shipping

Transcription

1 Coastal Shipping in Thailand and Regional Cooperation on Coastal Shipping Presented by Ms. Kamolwan Kularbwong Senior Specialist in Maritime Transport (Economics) Maritime Promotion Division Ministry of Transport THAILAND

2 Contents Situation of coastal shipping in Thailand Initiative on coastal shipping from the eastern region of Thailand to the south of Cambodia and Viet Nam (TCV Coastal Shipping) BIMSTEC Coastal Shipping Coastal shipping agreements proposed by other countries Issues and challenges

3 Situation of Coastal Shipping in Thailand

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5 Geographical Characteristics Length of coastline : 3, km Cover 23 coastal provinces in eastern and southern regions Length of coastline along the Gulf of Thailand : 2, km Length of the Andaman coastline : 1, km

6 Thailand s Sea Areas Type of Sea Areas Gulf of Thailand coastline Areas (Sq.Km.) Internal waters 54, , Territorial waters 29, , Contiguous zone 23, , Exclusive economic zone (EEZ) , Joint Thailand-Malaysia development area (part of EEZ) 7, Total areas 202, , Total Thailand s sea areas 323, Andaman coastline and near Straits of Malacca

7 Domestic Freight Volume Classified by Modes of Transport in

8 Proportion of cargo classified by type of cargo and modes of transport

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10 Location of Coastal Ports in Thailand

11 Coastal Shipping Routes in Thailand

12 Routes and amount of Domestic Coastal and Inland Water Transportation

13 Relevant authorities Ministry of Transport (MOT) / Office of Transport and Traffic Policy and Planning (OTP) : Policy development (now promoting the use of rail and water transport) Marine Department (MD) : infrastructure development (port development, channel dredging development and maintenance), port safety and security, port licensing, port clearance Department of Treasury : landlord, port ownership and management Port Authority of Thailand (PAT) : Ranong Port, Klong Yai Port

14 Relevant Laws and Regulations Thai Vessels Act, B.E (1938) Definition of trading in Thai waters reserves domestic coastal shipping (transportation of cargo between two points in Thai waters) for registered Thai vessels (cabotage). Section 7 stipulates that only registered Thai vessels with at least 70% of Thai equity (for domestic shipping) with 100 per cent Thai national crew on board and registered Thai vessels with at least 51% of Thai equity (for international shipping) can do trading in Thai waters Section 47 stipulates that foreign registered vessels can be allowed to do trading in Thai waters if (1) international agreements or treaties signed by Thailand agreed to do so, and (2) it is proved that certain type of Thai vessels is not sufficient and will adversely affect the country s economy (this will be approved by the Minister of Transport case by case for a period of one year).

15 Recent Study on Coastal Shipping Office of Transport and Traffic Policy and Planning (OTP) conducted a a Study on Upgrading Thailand s Coastal Transport Service and Infrastructure System Efficiency in 2016 Problems found: Insufficient depth of water channels Limited areas for coastal port construction Protest by local communities due to environmental concern Lack of sophisticated port facilities and equipment due to short period of concession Lack of hinterland and supported industries Lack of efficient inland transport linkages

16 Recent Study on Coastal Shipping (cont.) Recommendations: Port infrastructure development and management approach (PPP) Promotional measures and incentives to divert from road transport to coastal shipping Develop hinterland and supported industries Improve inland transport linkages Improve water channels by sub-contract to private sector Provide information on benefits and advantages of coastal port development to local community Request the Department of Treasury to extend the concession period to allow private port operators to invest in modern port equipment and facilities

17 Other Issues and Challenges of Domestic Coastal Shipping in Thailand Cargo owners / consignees / logistics operators prefer road transport to coastal shipping due to the advantage of door-to-door services and to avoid double handling and incentives/subsidy for cargo owners to divert from road transport to coastal shipping. Marine Department vs Department of Treasury on different port management approach. Ranong Port has been underutilized due to unfavorable geographical conditions. Customs Department plans to introduce E-Coasting Trading System to facilitate Thai vessels engaged in domestic coastal shipping to report cargo declaration to the Department by electronic system using NSW gateway.

18 Initiative on Coastal Shipping of Thailand-Cambodia-Viet Nam (TCV)

19 Background of TCV Coastal Shipping In 2014 Thai and Viet Nam Prime Ministers agreed to promote coastal shipping along the eastern region of Thailand to the south of Viet Nam by utilizing small and medium-sized ports. Cambodia was invited to join the coastal shipping as the coastal route also passes through its southern region with some potential coastal ports. The Tripartite Task Force (TTF) on TCV Coastal Shipping was established in 2015.

20 1 st TTF Meeting on Coastal Shipping of TCV 1 st TTF Meeting on Coastal Shipping of TCV was held on March 2016 in Bangkok, Thailand. The three countries exchanged information on current situation of coastal shipping in their respective countries and agreed in principle to promote coastal shipping along the eastern region of Thailand to the south of Cambodia and Viet Nam. The Meeting discussed on possible coastal routes and ports and agreed to conduct a preliminary survey by questionnaires (prepared by Viet Nam) to be distributed to 4 stakeholders, i.e. exporters/importers, coastal ship operators, coastal port operators and freight forwarders/logistics providers, the results of which will be the basis for designating coastal ports and routes.

21 1 st TTF Meeting (cont.) The Meeting agreed that coastal vessels should have certain standards, which may not equal to those of the International Maritime Organization (IMO). Similarly, ship crew working on board coastal vessels must also have commonly agreed standards. The Meeting agreed that each respective country should designate one coastal port for one-stop inspection for customs clearance and immigration.

22 2 nd TTF Meeting on Coastal Shipping of TCV 2 nd TTF Meeting was held on November 2017 in Hanoi, Viet Nam. Before the 2 nd TTF Meeting, Viet Nam circulated the draft MOU on Coastal Shipping of TCV to Cambodia and Thailand for consideration. The Meeting considered and discussed the draft MOU prepared by Viet Nam and agreed to have a form of legal instrument that could be accepted by all three countries. Cambodia informed the Meeting that, since coastal shipping involves the work of several ministries, such legal instrument should be in the form of Agreement, according to their constitution.

23 2 nd TTF Meeting (cont.) The Meeting requested Cambodia to prepare the draft Agreement on Coastal Shipping and circulated the draft to Thailand and Viet Nam at the earliest opportunity. At the initial stage, the respective countries agreed upon a coastal shipping route for cargo and passenger transportation with the following designated coastal ports: Cargo ports : Klong Yai (Thailand) Sihanoukville (Cambodia) Kampot (Cambodia) Ha Tien (Viet Nam) Phu Quoc (Viet Nam) Passenger ports : Klong Yai (Thailand) Koh Kong (Cambodia) - Sihanoukville (Cambodia) Kampot (Cambodia) Ha Tien (Viet Nam) Phu Quoc (Viet Nam) Additional designated coastal ports can be included at a later stage. Thailand proposed Klong Yai Port as the one-stop inspection.

24 Map of routes Cargo Transportation Klong Yai Trad (Thailand) Sihanoukville (Cambodia) Kampot (Cambodia) - Ha Tien (Viet Nam) - Phu Quoc Islan (Viet Nam) Klong Yai Trad Sihanoukville Kampot Ha Tien Phu Quoc Island 24

25 Map of routes Marine Tourism Klong Yai Trad (Thailand) Koh kong (Cambodia) - Sihanoukville (Cambodia) Kampot (Cambodia) - Ha Tien (Viet Nam) - Phu Quoc Islan (Viet Nam) Klong Yai Trad Koh kong Sihanoukville Kampot Ha Tien Phu Quoc Island 25

26 Designate one-stop inspection Klong Yai Port has been chosen to be one-stop inspection for coastal shipping for the following reasons: Has both cargo and passenger terminals Full facilities for customs and immigration clearance Middle size port in accordance with the Coastal Shipping Initiative Suitable location for coastal shipping Situated in the Eastern Economic Corridor (EEC), priority area for investment privileges MOT has assigned PAT to manage and operate the port PAT is now considering appropriate management approach and conditions for port management

27 Klong Yai Multipurpose Terminal Consists of a multipurpose terminal, a fishing pier and a jetty for government patrol boats - Multipurpose Terminal Dimension: 120 m. long x 60 m. wide x 5.5 m. deep (or 4 m. at lowest low water) Designed to receive vessels of 450 GRT, 4 m.wide, 20 m. long and 3 m. deep (9 cargo vessels and 2 passenger vessels simultaneously) - Fishing Pier Dimension: 50 m. long x 25 m. wide x 5 m. deep (3 m. at lowest low water) - Jetty for Government Patrol Boat Designed to receive 2 naval patrol boats and 3 government boats simultaneously Dimension: 18.6 m. x 2,058 m. with 4 traffic lanes 27

28 2 nd TTF Meeting (cont.) Thailand submitted the draft safety standards of cargo vessels engaged in coastal shipping (adopted and modified from the Safety Standards of Non-Convention Vessels developed by IMO) to the Meeting for consideration at the 3 rd TTF Meeting. Viet Nam would also submitted the standards and regulations of passenger vessels and qualifications of seafarers working on board such vessels for consideration. Cambodia will host the 3 rd TTF Meeting in the last quarter of 2018 after the national election.

29 Work Progress after the 2 nd TTF Meeting Cambodia circulated the draft Agreement to Thailand and Viet Nam in February Marine Department set up a working group to consider the draft Agreement and has already completed consideration. It is now preparing to have a meeting with relevant authorities and private sectors in order to seek views on the draft Agreement and its proposed revisions in October It is expected that the final proposed revisions can be submitted to Cambodia and Viet Nam by first week of November Port Authority of Thailand (PAT) has been assigned to manage and operate Klong Yai Port. It is now considering an appropriate form of management and conditions (if contract-out).

30 Proposed Agenda for the 3 rd TTF Meeting Finalization of the draft Agreement Finalization of designated coastal ports and coastal shipping route. Determining appropriate size of coastal vessels and sailing distance from coastline Consideration of the proposed safety standards of cargo vessels engaged in coastal shipping Consideration of standards and regulations for passenger vessels Qualifications of seafarers working on board coastal vessels

31 Contents of the Draft Agreement State Competent Authority : Ministerial level Designated coastal routes and ports (Annexes I & II) Coastal shipping license required Establishment of the National Coastal Shipping Facilitation Committee Cabotage in one Contracting Party is allowed for vessels of the other Contracting Party upon approval. Ship documents, pilotage, crew members, assistance to vessels in distress, tariff to be collected, criminal jurisdictions, facilitation, maintenance of aids to navigation and navigation channels, dispute settlement

32 Role of Private Sector The Cambodia-Vietnam-Thailand Economic Corridor Cooperation Conference (CVTEC) was established with the 1 st CVTEC Meeting on August 2018 in Phu Quoc, Viet Nam, and Sihanoukville, Cambodia. Private sectors from coastal provinces in Cambodia and Viet Nam agree to promote southern maritime connectivity corridor Thai CVTEC Meeting was held by the Thai Chamber of Commerce on 8 October The 2 nd CVTEC will be held on 14 November 2018 in Cambodia and CVTEC Cooperation MOU will be signed by representatives of private sectors of three countries.

33 BIMSTEC Coastal Shipping Agreement

34 Ranong Phuket Dawei Yangon Chittagong Chennai Colombo

35 Background BIMSTEC coastal shipping agreement was mentioned during the 1 st BTCWG in August 2016 in Bangkok, Thailand. BIMSTEC Summit agreed to have coastal shipping agreement as one of priority activities, another one is BIMSTEC Transport Connectivity Master Plan. India hosted the First Working Group Meeting to discuss and finalize the Draft Text of the Coastal Shipping Agreement among BIMSTEC Member States prepared by India on November 2017 in New Delhi. The Draft Standard Operating Procedure (SOP), as part of the draft Agreement, was prepared by India and circulated to BIMSTEC Member Countries in early 2018.

36 Contents of the Draft Agreement National treatment in levying port dues and other dues, access to waters and ports, berthing, embarkation-disembarkation, services at ports, etc. Apply to coastal vessels plying within 20 nautical miles from the coastline Compromised Port State Control Inspection (can do if deemed necessary) Vessels of non-imo standards but meet SOP shall operate within the limits of 20 nautical miles from the coast Recognition of ship and crew documents Standard Operating Procedure (SOP) as a tool to activate, operate and facilitate the Agreement

37 Contents of the Draft Agreement Measurement of vessels Facilitation measures for vessels in and out of ports Assistance of vessels in distress Criminal jurisdiction Crew members provisions, etc Establishment of a Joint Shipping Committee

38 Contents of the Draft SOP All technical matters relating to ships, crews and ports such as the following: Conservancy and pilotage Port dues and charges, handling facilities, supply of bunkers, purchase of stores and provisions Repairing facilities Assistance to vessels in distress Removal of wreck Submission of voyage forecast for voyage permission to use waterways Recognition of ship and crew certificates and other documents Sharing of inter-country trade and transported cargo Common freight rates Etc.

39 Work Progress Marine Department s relevant internal units have considered the draft DOP with some views and comments. A meeting with relevant authorities and private sectors will be convened to consider the draft and how to implement this Agreement before the 2 nd WG on the Draft Text of Coastal Shipping Agreement is convened (December 2018?) Thailand needs more time to consider the draft SOP due to a lot of technical details. This means Thailand is not ready to sign the Agreement in 2018 as proposed by India.

40 Coastal Shipping Agreements proposed by other countries

41 Proposed Thailand and India Coastal Shipping Agreement Proposed by India in 2013 during the JC Thai India. India submitted the Coastal Shipping Agreement between Thailand Bangladesh as a proposed draft for consideration. Preliminary consideration by Marine Department found several provisions that are not acceptable

42 Proposed Thailand and Bangladesh Coastal Shipping Agreement Proposed by Bangladesh Ambassador during the meeting with the Minister of Transport of Thailand in October 2016 MOT of Thailand tasked PAT to consider some form of legal instrument to be concluded with Bangladesh (agreement on port-toport cooperation) MD was tasked to reconsider the draft maritime transport agreement between Thailand and Bangladesh in order to modify and make use of this instrument.

43 Issues and challenges

44 Issues and challenges What are (should be) the characteristics of coastal shipping? (ship size, sailing distance from shore, etc.) Impact on cabotage? What kind of provisions should a coastal shipping agreement contain? (Need for Model Coastal Shipping Agreement) No clear guideline for coastal shipping cooperation Different domestic laws, regulations and procedures of each country F/S or agreement should come first? Fishing and fishing-related vessels should be excluded due to strict IUU measures. How can two countries with no adjacent territorial waters conclude a bilateral coastal shipping agreement?

45 THANK YOU FOR YOUR ATTENTION