ESCAP Transport Facilitation Tools
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1 Regional Conference for Logistics Services Providers Jakarta, Indonesia, 23 June 2016 ESCAP Transport Facilitation Tools Ms Virginia TANASE Chief, Transport Facilitation and Logistics Section Transport Division
2 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) Vision: to be the most comprehensive multilateral platform for promoting cooperation among member States to achieve inclusive and sustainable economic and social development in Asia and the Pacific; Convening power is used to bring countries together to address issues through regional cooperation, including issues that: all or a group of countries in the region face, for which it is necessary to learn from each other; benefit from regional or multi-country involvement; are transboundary in nature, or that would benefit from collaborative inter-country approaches; are of a sensitive or emerging nature and require further advocacy and negotiation
3 ESCAP Mandates Global eg United Nations Charter, General Assembly Resolutions Vienna Programme of Action for Landlocked Developing Countries for the Decade established six priority areas that should be tackled in order to help LLDCs overcome their geographical condition Three of them are the most relevant for transport (or transport is relevant for them Priority 1: Fundamental transit policy issues Priority 2: Infrastructure development and maintenance (a) Transport infrastructure [ ] Priority 4: Regional integration and cooperation Regional eg ESCAP Commission Resolutions, Ministerial Conference Specific requests from countries (public or private sector)
4 ESCAP: what we do and who does these? Regional think-tank, analytical and policy work, norm setting, good practices for development, knowledge sharing and technical assistance to member States in the implementation of the recommendations; Office of the Executive Secretary, seven substantive divisions, two «supporting» divisions, regional institutions, subregional offices; Transport Division: Office of the Chief, three Sections (Policy & Development, Infrastructure, Facilitation & Logistics), 26 persons Transport Facilitation and Logistics Section, supports countries in achieving regional operational connectivity for enhanced regional economic cooperation and integration through identification, assessment and elimination of non-physical barriers, to ensure seamless transport across the Region materialized in Transport Facilitation Tools and Recommendations
5 ESCAP Transport Facilitation Tools Overarching goal: to support countries in achieving effective regional operational connectivity by providing feasible harmonized, secure, efficient and reliable options for facilitated cross-border transport Applicability: specific or extended (national or international, corridors or entire networks), as needed
6 Existing Transport Facilitation Tools
7 ESCAP Transport Facilitation Tools(cont d) Two Regional Frameworks Regional Strategic Framework for the Facilitation of International Road Transport Regional Cooperation Framework for Facilitation of International Railway Transport Four mutually complementary models Time/Cost-Distance Methodology: identifying barriers and monitoring performance from starting to ending points Secure Cross-border Transport Model: providing real-time monitoring en-route Model on Integrated Controls at Border Crossings: simplified and streamlined procedures at border crossings Efficient Cross-border Transport Model: more efficient transport arrangement across borders Forthcoming: Standard Model for Logistics Information System, Model Bilateral and Subregional Road Transport Agreements, Model multilateral permits for international road transport
8 Regional Strategic Framework for the Facilitation of International Road Transport Long-term common targets/strategies for member countries and their development partners To increase effectiveness of facilitation policies, measures, projects To increase coordination and consistency among different facilitation measures, projects, efforts, initiatives, agreements Direction of future possible development Reference and guide Not legally binding like a treaty/agreement Sets objectives but leaves implementation with member States
9 Regional Strategic Framework for the Facilitation of International Road Transport (cont d) Common targets/strategies for essential issues 1 road transport permits & traffic rights 2 visas for professional drivers & crew 3 temporary importation of road vehicles 4 insurance of vehicles 5 vehicle weights & dimensions 6 vehicle registration & inspection certificates Common approaches for key modalities for facilitation 1 building an effective legal regime 2 wider application of new technologies 3 development of professional training 4 establishment/strengthening of national coordination mechanisms 5 promotion of joint control at border crossings 6 promotion of economic zones at border crossings, dry ports and logistics centres 7 further application of facilitation tools
10 Regional Cooperation Framework for Facilitation of International Railway Transport Identifies four fundamental issues for facilitation of international railway transport, indicates target and process Standards for railway infrastructure, facilities and equipment Break of gauge Different legal regimes for railway transport contracts Coordination of regulatory controls and inspections at border-interchange stations Identifies eleven priority areas for cooperation among member countries to facilitate railway transport in the region
11 Regional Cooperation Framework for Facilitation of International Railway Transport (cont d) Priority areas for cooperation among member countries to facilitate railway transport in the region participation in international railway organizations (OSZhD, OTIF) formulation of subregional and bilateral agreements on the facilitation of railway transport cooperation to standardize cross-border railway operations use of advance passenger/cargo information system(s) arrangements for the exchange of wagons use of new technologies in train operations as well as in container tracking developing human resources for cross-border railway operations (visas, training, conditions of service) establishment of logistics centres/dry ports and maintenance hubs at or near border interchange stations, particularly along railway freight corridors simplification of the intermodal interface of railways with maritime, air and road transport promotion of the corridor approach in the facilitation of international railway transport work towards paperless railway freight transport
12 Time/Cost-Distance Model Need to identify isolate address bottlenecks Methodology for international route analysis Sea transport Wait at sea port Time/ cost Transport to sea port Border crossing Transport to border Distance
13 Objective: straighten the transport line and decrease the time/cost angle Day 4 Day 3 Day 2 $400 $300 $200 These straight vertical lines illustrate periods where the goods are inactive in the transport chain and where there is an increase in time and/or cost Transport line Time/ Cost angle Day 1 $ km 1000 km 1500 km 2000 km
14 Secure Cross-border Transport Model
15 COMMON INTERFACE FOR GOVERNMENT AGENCIES Model on Integrated Controls at Border Crossings (Border Crossing Management Information System (BCMIS) for goods transport) Automatic system of weight and dimension control A1 Automatic vehicle plate number/container code recognition system C1-2 Automated passport control P1 Automatic radiation detection systems R1-3 Automatic fever scanner F1 MODULE 1 Data collected with automatic equipment MODULE 2 CUSTOMS A1, C1, C2, R1, R2, R3, E1, I1-7, D1-23, D26, D27, D29, D32, D33, D34, D35, D41, D44, H4, H5,H7 TRANSPORT A1, C1, I1, I2, I3, I4, I8, D1, D3, D12, D14, D15, D16, D18, D24, D25, D26, D27, D28, D29, D30, D31, D34, D35, D39, D40, D41, D43, D45,H4,H6 QUARANTINE R1, R2, R3, I6, D1, D6, D7, D8, D9, D10, D12, D19, D35, Electronic seals and vehicle tracking systems E1 In-depth inspection equipment I 1-5 Document and data processing systems MODULE 3 HEALTH R1, R2, R3, F1, I3, D6, D9, D12, D18, D19, D35, D36, H2,H3 Advance electronic information and/or data submitted by carrier D1-45 Data provided by government agencies H1-7 Shared database IMMIGRATION P1, D42, H5 POLICE R1, R2, R3, I3, I4, I7, D18, D19, D26, D27, D28, D29, D30,D43, D45, H4,H5, H6
16 Model on Integrated Controls at Border Crossings (BCMIS-based simplified workflow for the entry of goods) Advance Electronic Information BCP Entry Automatic Data Collection Equipment Passport Control Documentary Check (Customs, Quarantine, Health, Transport, etc) BCP Exit CUSTOMS COMMON DATA EXCHANGE PLATFORM TRANSPORT QUARANTINE HEALTH In-depth Inspection Area with Jointly Used Equipment POLICE Diagram key: OTHERS - Vehicle Movement - Information flow 1 - Sequence of control procedures
17 Efficient Cross-border Transport Models Issues Trailer swap Container swap Manual transloading No transloading Solution/Arrangement Difficulty Cost Transport permit for motor vehicle 1Identification x Multilateral agreement 5 of 5 issue Bilateral agreement 3 3 Temporary importation Of prime mover x Accession to 4 4 international convention 2 Evaluation of Bilateral agreement 4 3 solution(s) Double registration 1 3 Of trailer x x Accession to international convention 4 4 Bilateral agreement 3 3 Double registration 1 3 Of container x x x Accession to international convention 3 3 Bilateral agreement 3 3 Total number of issues Total difficulty points (min) Comparison of cumulative barriers Total cost points (min)
18 Efficient Cross-border Transport Models Factor Trailer Swap Container swap Manual transloading No transloading Difficulty Cost Efficiency Reliability Total Result: Understanding and comparison of OVERALL benefit and challenge Understanding factors underlying current practice Weighting can be adjusted to reflect situation of a corridor or a group of countries Model arrangements for trailer swap Model arrangements for passenger Model arrangements for railway goods Model arrangements for railway passenger Costs and benefits analysis
19 Forthcoming Transport Facilitation Tools
20 Logistics Information System A public platform that allows for harmonized and simplified information exchanges between transport and logistics service providers, relevant government agencies and private stakeholders at national and trans-national level B2B, B2G, G2G for all modes of transport Functions: o o o o Data interchange: documents and messages transmissions etc Information queries: database on service providers, track and trace etc Information service: information on regulations, rules, vessels schedules, statistics etc Administrative service: payment of duties, import export clearance etc Main benefits: transparency, traceability, efficiency, reduced cost Existing national and transnational systems in the ESCAP region:logink, COLINS, NACCs, Port-MIS, TradeXChange, NEAL-NET etc
21 Illustrative diagram of overall architecture of a Logistics Information System Logistics Service Providers eg Freight forwarders, 3PL etc Terminals eg seaports, airports, dry ports etc Public Entities eg customs, quarantine, revenue, infrastructure administrators etc Country C Carriers eg ship liners, cargo airliners, railway, trucks etc Warehouses Manufacturers Shippers/Buyers Consignor/ consignee National Logistics Information System (Country A) Banks Others as needed Country B Country D Transnational Logistics Information Platform Country E Standardized national logistics information systems will allow for easy linkage to transnational logistics information platform(s)
22 Regional Study The use of Logistics Information Systems for increased efficiency and effectiveness The Study includes examples of existing national and transnational systems, national experiences, recommended data and other technical standards and the Standard Model of Logistics Information Systems General Recommendations To utilize logistics information technology systems or other ICT resources related to logistics services, in order to establish national logistics information systems as a public platform providing effective and efficient information services as well as future transnational interchange To establish a regional mechanism promoting cooperation among countries in the development of national logistics information systems; ideally include therein the coordination of standards and the development of cooperation through a legal framework To consider government investment or public-private partnerships to fund the development of logistics information systems To adopt the Standard Model of Logistics Information Systems in the development of national system
23 Model agreements Model subregional agreement for international road transport Model bilateral agreement for international road transport Implemented with the support of a Model multilateral permit for international road transport
24 Regional Strategic Framework for the Facilitation of International Road Transport (cont d) Common targets/strategies for essential issues 1 road transport permits & traffic rights 2 visas for professional drivers & crew 3 temporary importation of road vehicles 4 insurance of vehicles 5 vehicle weights & dimensions 6 vehicle registration & inspection certificates Common approaches for key modalities for facilitation 1 building an effective legal regime 2 wider application of new technologies 3 development of professional training 4 establishment/strengthening of national coordination mechanisms 5 promotion of joint control at border crossings 6 promotion of economic zones at border crossings, dry ports and logistics centres 7 further application of facilitation tools
25 Road transport permits and traffic rights International road freight transport in ESCAP countries remains fragmented No (road transport) agreements => no traffic rights Bilateral agreements => limited traffic rights Multilateral (subregional) agreements (implementation remains challenging, positive effects below expectations) Differing standards (vehicle weights) => sub-optimal loading International movement of goods by road is largely confined to border areas and a limited number of roads Transport permits (if any) are issued for one single trip along one designated route by one specified individual vehicle Restrictions imposed on transit operations => goods carried by road often have to be trans-shipped at border => additional costs and delays
26 Road transport permits and traffic rights (cont d) Target Wider application of multiple-entry transport permits issued to a carrier for any compliant vehicle in its fleet Such permits, valid for one year, could be used on multiple routes or road networks for both interstate and transit transport operations In addition, multilateral transport permits should be promoted for wider application in parallel with bilateral transport permits Regional Strategic Framework for the Facilitation of International Road Transport, 2012
27 Multilateral permits for the facilitation of international road transport ASEAN Framework Agreement on Facilitation of Goods in Transit (1998) sets a package of facilitation measures including transit transport services and road transport permits / rights However, the ASEAN ideals are yet to be fully realized, though the target year for the liberalization of international road freight transport services was 2015 ECO Transit Transport Framework Agreement (1998), applies to transport in transit beginning or terminating in a Contracting Party by using designated roads Road transport permits are issued in accordance with domestic legislation However, the Agreement has never produced its expected positive effects
28 Multilateral permits for the facilitation of international road transport (cont d) GMS Agreement on the Facilitation of Cross-Border Transport (CBTA, 1999), a comprehensive multilateral instrument aimed to strengthen the facilitation process of international road transport Annex 9 explicitly deals with the exchange of permits for international operations as a crucial tool regulating access to international transport markets However, the implementation remains largely bilateral pilot exchange of permits between Cambodia and Thailand (usable at one border crossing) a certain exchange of permits between Viet Nam and the China (some routes opened for traffic without trans-shipment at the border) permits exchanged between Cambodia and Viet Nam (extended number of authorized border crossing points)
29 Multilateral permits for the facilitation of international road transport (cont d) Shanghai Cooperation Organization Agreement on the Facilitation of International Road Transport (2014, not yet in force): carriers have the right to perform international road transport operations by means of vehicles registered on the territory of one of the contracting parties, along designated routes The form of a multilateral permit is defined in an annex to the Agreement
30 Multilateral permits for the facilitation of international road transport (cont d) Intergovernmental Agreement on International Road Transport along the Asian Highway Network (negotiations concluded between China, Mongolia and Russian Federation in March 2016): carriers have the right to perform international road transport operations by means of vehicles registered on the territory of one of the contracting parties, along designated routes The form of a multilateral permit valid for one round trip within one calendar year is defined in an annex to the Agreement The quota of permits is determined by a Joint Committee
31 Multilateral permits for the facilitation of international road transport (cont d) ECMT permit system Permits can be used for freight transport operations by road between and in transit through territories of any member state One and the same permit scheme and distribution regime is valid for all participating countries Type of operations allowed Bilateral carriage of goods between any member countries Transit operations through territories of any member countries Third-country / triangular operations between any member countries (by this, transport efficiency has significantly increased thanks to a higher utilization rate of vehicles used in the system going hand-in-hand with a lower share of empty runs NOT allowed: cabotage and operations between a member country and a non-member country
32 Multilateral permits for the facilitation of international road transport (cont d) ECMT permit system (cont d) Permit-free operations: non-commercial transport, vehicles with a total laden weight below 35 tons, transport of damaged or broken-down vehicles, livestock transport, own-account transport, transport of objects of arts, etc Distribution of the basic quota: according to the weighted average of some of member countries main macro-economic indicators such as population and country area, GDP in absolute figures and annual growth rates, output of the road freight transport industry (in ton-km), external trade (total and only among ECMT member countries), etc Correction factors have been applied, the purpose being to mitigate extreme differences between member countries of widely differing sizes
33 Multilateral permits for the facilitation of international road transport (cont d) ECMT permit system (cont d) Vehicles: stricter technical requirements have been introduced simultaneously with the growth of the basic quota targeting the protection of the environment, aiming at the improvement of road transport safety and, last but not least, responding to growing concern of a number of stakeholders about sharpening competition on the market and the increasing modal share of the road as against other transport modes Requirements have been introduced gradually and the use of compliant vehicles has been stimulated by bonuses / permit multipliers of the national quotas assigned to the individual member countries Drivers: training requirements => professional competence
34 Multilateral permits for the facilitation of international road transport (cont d) ECMT permit system (cont d) Important to note: ECMT permit system is not the result of an intergovernmental road transport agreement, it is the result of political will and commitment of ministers meeting in an intergovernmental structure to facilitate road transport BSEC permit system The ECMT permit system is replicated at a smaller scale following a private sector initiative, in eight of the member states of Black Sea Economic Cooperation (BSEC, an intergovernmental organization) Initiator: Union of Road Transport Associations, a NGO in BSEC region Only difference from ECMT permit: BSEC permit is valid for one single road trip
35 ESCAP Model for a multilateral permit Diminishing transport permit problems, enhanced access to international road freight transport markets along Asian Highway Network and beyond Great impetus to vehicle fleet modernization, application of higher vehicle technical, environmental and safety standards thanks to bonuses and permit multipliers for using modern vehicles in the system (+ beneficial spin-off for domestic fleet development) Enhanced transport and logistics service quality thanks to regulatory requirements of the permit system (admission to the profession, work of crew, training) Abandonment of inefficient border trans-loading practices of high transport and logistics costs Reduced exposure to border crossing bureaucracy and possible illegal activities (rent-seeking, bribes, etc); increased physical cargo security; driver in full control from A to Z Uninterrupted contractual responsibility of the transport operator; improved relations of trust between business partners Governments continue keeping full control of issuing permits to domestic and foreign transport operators; they have the right to carry out regular checks of permit use and apply specific disciplinary action against non-complying operators
36 Way forward Model agreements for bilateral and subregional international road transport Submitted for approval to the Ministerial Conference on Transport in November 2016 ESCAP Model for a multilateral road transport permit Draft study sent to countries by mid-june Comments expected by mid-july Revised version sent to countries by end-july Final draft discussed and agreed at a meeting on 9-11 August 2016 Model submitted for approval to the Ministerial Conference on Transport in November 2016
37 Way forward (cont d) Foundation is established for an integrated intermodal transport and logistics system in our region, with stepping stones for seamless cross-border transport and transit by road (eg AHN, TARN, intergovernmental agreements, facilitation models) However, Doors are not yet open to move all types of goods where needed Our region s diversity is a strength but we could do much better together and individually if our standards, regulations and practices were not as diverse as they are, but harmonized global intergovernmental road transport norm setting organization similar to ICAO, IMO, OSZhD, OTIF? Regional transport operational connectivity is yet to be achieved more active participation of countries in ESCAP activities? improved countries capacity for implementation of existing agreements and models? what could ESCAP secretariat do more and better?
38 Thank you for your kind attention! For any further questions:
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