Policies and Issues Relating to the development of Dry Ports
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1 First meeting of the Working Group on Dry Ports Agenda item 5 Bangkok, November 2015 Policies and Issues Relating to the development of Dry Ports Document E/ESCAP/DP/WG(1)/2
2 Policies and issues relating to dry ports ESCAP study on Planning, Development and Operation of Dry Ports of International Importance An assessment of trends in the development of dry ports, and policies underlying their development, in selected countries of the UNESCAP region Information obtained during fact-finding missions to: o o o o o Albury/Wodonga and Canberra. Australia; Kunming and Beijing, China; Dadri, New Delhi and Whitefield/Bangalore; India, Uiwang and Sejong City, Republic of Korea; and Lat Krabang, Thailand
3 Content What is the presentation about? Definition of dry ports Policies and issues influencing dry port development: a) Function and location issues b) Dry Port ownership c) Dry port development incentives Lessons learnt 3
4 Definition A dry port of international importance: refers to an inland location as a logistics centre connected to one or more modes of transport for the handling, storage and regulatory inspection of goods moving in international trade and the execution of applicable customs control and formalities. (Article 1 of Inter-governmental Agreement on Dry Ports) 4
5 Function of dry ports Terminology: Dry Ports Inland Container Depots Inland Clearance Depots Container Freight Stations All of the above share the common characteristic that their main functions are to: (a) (b) complete customs and other border crossing formalities for traded cargo, and to transfer this cargo between the different modes used for transportation between a port origin and an ultimate inland destination, or vice versa 5
6 Location Note: TGL = trade generating location Maritime border TGL 1a TGL 1b TGL 1c Inland port 1 Seaport 1 Local road transport distance, no more than km from inland port Rail or Inland Waterway Transport (possibly also Long Distance Road Haulage): distance usually 300 km Seaport 2 Dotted lines show future direct flows of customs clearance procedures and documentation between Inland Ports Inland port 2 TGL 2a TGL 2b TGL 2c
7 Location The distances between dry ports and seaports or other trade origins or destinations may be short or long, for example: China, India: Some major inland manufacturing and commercial centres may be 1,400 1,800 km from the sea ports Central Asia: About 1,000 8,000 km between origin and outlet to the sea South Korea, Thailand: Distance between trade origins or destinations and sea ports are in the range of km 7
8 Location Considering intermodality to maximise international trade and minimize total transport costs Railways can offer significant cost efficiency for freight (including container) haulage over distances in excess of 300 km It may be supported in this role by truck transport which assumes a local feeder role, involving the local distribution of traded commodities between inland ports stations and the trade originating and terminating locations, over distances which rarely exceed 50 km 8
9 Location Dry ports are normally located in the vicinity of: What is an ideal location for a dry port? (a) inland capitals, provincial/state capitals; and/or (b) existing and/or potential production and consumption centres with access to highways and/or railways including the Asian Highway and/or Trans-Asian Railway, as appropriate. Dry ports have transport connections to other dry ports, border posts/land customs stations/integrated check posts, seaports, inland waterway terminals and/or airports. With dry ports being seen to have a main function of supporting the movement of international trade between inland origins or destinations and seaports, for which purpose they need to be located within, or close to, the sources of trade, with high quality links for local transport and to seaports. 9
10 Dry Port Ownership Various approaches Full ownership by the public sector; Full ownership by the private sector; Joint public/private sector ownership; Public/Private Partnerships (PPPs). 10
11 Dry Port Ownership Example of PPP model: Moorebank Intermodal Terminal, Australia Source: Qube holdings Ltd., Investor Presentation, June 2015, Moorebank Integrated Precinct 11
12 Dry Port Ownership Example of joint-venture model: CONCOR ICD at Dadri, India Leasing of CFS area to Joint Venture Partners, Dadri ICD Joint venture partner Total area leased (m 2 ) Albatross Inland Ports Pvt.Ltd. 90,000 CMA-CGM Logistics Park (Dadri) Pvt.Ltd. 60,000 Allcargo Logistics Park Pvt.Ltd. 40,000 APM Terminals (Star Track Terminals Pvt.Ltd) 67,000 Total 257,000 Source: Shri M K Nabi, Chief Manager of ICD Dadri, Noida, 19 October
13 Dry Port Ownership Example of joint-venture model: CONCOR ICD at Dadri, India 13
14 Dry Port Development Incentives Governments can encourage the establishment of dry ports through a range of incentives designed to attract private sector investment: Provision of low cost land Subsidised infrastructure development Tax holidays or waivers Provision of preferential freight rates 14
15 Dry Port Development Incentives Financial incentives generally applicable at the level of provincial and local governments All terminal land is owned by the government and payment for its use is recovered in the form of land taxes, payable by terminal operators Often, railway freight rates are used in order to modify the level of demand for rail transport, and hence the demand for rail served inland ports The example from Yunnan Province, China 15
16 Dry Port Development Incentives The Inter-Ministerial Committee (IMC) for ICDs and CFSs assesses and approves applications for the development of ICDs No direct incentives are provided in India for the development of inland ports, except that the activities of state government agencies in securing land for terminal development may succeed in delivering land parcels at less than market rates The case of India 16
17 Developing dry ports Lessons to remember Efficient planning is critical as intermodal facilities in transport infrastructure are large and complex; they reach full maturity over a long period and require favourable conditions to develop well; Governments need to formulate context specific strategies for intermodal development, including public infrastructure funding priorities; Crucial to build effective partnerships and climate of confidence among all public and private stakeholders. 17
18 - Th nk you Info.: escap-ttd@un.org 18
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