STATUS ON DRY PORTS DEVELOPMENT IN LAO PDR

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1 MINISTRY OF PUBLIC WORKS AND TRANSPORT. LAO PDR 1 st Meeting of Working Group on Dry Ports of International Importance Bangkok, November 2015 STATUS ON DRY PORTS DEVELOPMENT IN LAO PDR Phanthaphap Phounsavath Deputy Director, Division of Land Transport, Department of Transport Ministry of Public Works and Transport, Lao PDR

2 PRESENTATION OUTLINE I. Country Facts II. Policy and Legislation III. Progress on Development of Dry ports in Lao PDR IV. Challenges 2

3 I. COUNTRY FACTS Land Area : 236,800 km2 Population: 7.08 MIL (2015) Population density: 29.5 persons/km2 (growing at 1.68%pa ) Border length of 5,083 km - Myanmar 235 km - Cambodia 541 km - China 423 km - Thailand 1754 km - Viet Nam 2130 km The economy base is agriculture, mines hydro power and services GDP growth 7% pa GDP per capita 1,824 USD (2014) 3

4 II. POLICY AND LEGISLATION (TRANSPORT SECTOR) I. To provide an enabling, safe, and efficient transport throughout the country with low transport cost to support the Government effort to graduate from LDC by 2020 II. To transform from a land-locked country to a landbridge country in the GMS by: - Providing efficient and reliable transport infrastructure and facilities, particularly on transit transport routes; - Facilitating cross border transport of goods and people between and among neighboring countries 4

5 II. POLICY AND LEGISLATION (TRANSPORT SECTOR) 1. Domestic Road laws promulgated in Dec 2012: - Road Transport Law ; - Road Traffic Law; - Multimodal Transport Law. 2. Intergovernmental Cooperation - Agreement : Name of Agreement Contracting Parties Date Agreement on Road Transport Between Lao PDR and Vietnam Laos Vietnam 23 Apr 2009 Agreement on Road Transport Between Lao PDR and China Laos China 12 Mar 1993 Agreement on Road Transport Between Lao PDR and Thailand Laos Thailand 03 May 1999 Agreement on Road Transport Between Lao PDR and Cambodia Laos-Cambodia 21 Oct 1999 Framework Agreement on the Facilitation of Goods in Transit ASEAN 16 Dec 1998 Cross-Borders Transport Agreement GMS MoU on Road Transportation between and Among Cambodia Laos - Vietnam; - MoU on Road Transportation between and Among Laos Thailand - Vietnam; - Intergovernmental Agreement on Asian Highway Network; - Intergovernmental Agreement on Trans-Asian Railway Network; - Intergovernmental Agreement on Dry Ports signed on 7 Nov

6 ASIAN HIGHWAY THROUGH LAO PDR Road linked to bordering countries. Asian Highways : - AH3 : Houyxay Boten (251km) - AH11 : Vientiane Cambodia Border (861km) - AH12 : Thanaleng Nateuy (682km) - AH 13 : Muang Ngeun Oudomxay (391km) - AH15 : Ban Lao Vietnam Border (132km) - AH16 : Savannakhet Dansavan (240km) Total AH : 2,557km Remark: Only AH 3 & AH 16 have road bearing capacity max. 50tonnes. The other AH need to be upgraded. AH13 AH3 AH12 VIENTIANE AH15 AH11 AH16 6

7 III. PROGRESS ON DRY PORTS DEVELOPMENT IN LAOS 7 9 Dry ports nominated under the Intergovernmental Agreement on Dry ports MYANMAR Houay Xai CHINA Luang Namta Oudomsai Priority for detailed Feasibility study and construction of Thanaleng dry ports under 5 years development plan ( ). 1. Thanaleng, Vientiane 2. Nateuy, Luangnamtha 3. Seno, Savanakhet 4. Houyxai, Bokeo 5. Laksao, Borikhamsai 6. Luangprabang, Luangprabang 7. Oudomsai, Muangxai 8. Pakse, Champasack 9. Thakhek, Khammouane Status on Ratification: in the process of approval by the Minister of Public Works and Transport for approval before submitting proposal to the government Luang Prabang Vientiane THAILAND THAILAND International Logistics Hub Regional Logistics Hub Hub for Specific Product Losgitics Zone International Logistics Route VIETNAM Laksao Thakek Savannakhet Pakse CAMBODIA 7

8 8 Dry Ports Development Plan 1. Thanaleng, Vientiane Feasibility Study has been completed by Nippon Express Logistics Co. supported by JICA MYANMAR Final Report on FS has been submitted to Houay Xai the government for consideration and approval Negotiation committee will be established to negotiate on Loan Fund and PPP Procedure with JAPAN Cost for construction is about US$6.8 billion within reserved area of 45Ha. Container Yard supported by NEDA Thailand is under construction of 90% completed to support the future freight transport by rail. 2. Natuey, Luangnumtha Feasibility Study on location selection has been made by UNESCAP Signing of MoU for railway construction made on 13 Nov 2015, construction will start early in CHINA Vientiane Luang Namta Luang Prabang THAILAND THAILAND International Logistics Hub Regional Logistics Hub Hub for Specific Product Losgitics Zone International Logistics Route VIETNAM Thakek Savannakhet Pakse CAMBODIA 8

9 Plan view area of Vientiane Dry port Railway Plan of NEDA (Thailand) Freight Station of Chinese F/S Railway Plan of Chinese F/S Vientiane Dry port : 45 ha VLP(Vientiane Logistics Park) Thanaleng Terminal 9

10 Lay out of Vientiane Dry port 2 nd Phase 1 st Phase Customs Office Work Shop SPC Office Canteen Developed by NEDA Gate Customs Clearance on Chassis Bulk Storage temperature -controlled Gate Warehouse 10

11 11 Planned Project on Trans Asian Railways: 1). Boten Luangphrabang Vientiane (417 km); 2). Nongkhai Vientiane Thakhek Mu Dia (480 km); MYANMAR 3). Chong Mek (Lao - Thai border) Pakse Houay Xai Savannakhet Laobao (452 km); 4). Mukdahan (Lao -Thai border) Savannakhet Lao Bao (222 km). CHINA Luang Namta Oudomsai Luang Prabang Vientiane Boten railway: 417 km VIETNAM Vientiane Nongkhai THAILAND - Vientiane - Thakhek - Mu Da: 480 km THAILAND International Logistics Hub Thakek Laksao Savannakhet Mukdahan - Savannakhet - Lao Bao 222 km Regional Logistics Hub Chong Mek - Pakse - Hub for Specific Product Savannakhet Laobao 452 km Losgitics Zone Pakse 11 International Logistics Route CAMBODIA

12 Challenges Need of technology transfer both hardware and software Need of Human resource development Need of support on Technical cooperation and financial assistance from international development partners 12

13 Thank you for your kind attention! Phanthaphap Phounsavath Deputy Director, Division of Land Transport, Department of Transport Ministry of Public Works and Transport, Lao PDR Tel: (856-21)

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