Regional Conference/Forum for Logistics Service Provider
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1 Regional Conference/Forum for Logistics Service Provider Jakarta, Indonesia, 23 June 2016 Formulating Transport Logistics Policy for Sustainable Development in Lao PDR Sengsavang PHANDANOUVONG Senior Advisor Lao International Freight Forwarders Association (LIFFA) & Lao Logistics Group(LLG)
2 Contents: I. Introduction II. III. IV. Current Transport Situation in Lao PDR Special Needs and Challenges for Transport and Logistics Development in Lao PDR National Logistics Development Policy V. Conclusion and Recommendations
3 Background I. Introduction Lao PDR as a sole landlocked and least developed country (LLDC) in both ASEAN & GMS with its population about 7 million( Geographical Constraint, no direct territorial access to the sea and remoteness Isolation from Global Markets; cumbersome transit procedures and inadequate transport infrastructure and high logistics connectivity costs Weak logistics related coordination mechanism Limited available logistics related statistics data Lack of officials with required logistics knowledge Available primary raw materials, limited domestic market and a very limited number of commodities for export earnings Poorly integrated regional logistics Logistics as a key role supporting both national and regional economic development
4 II. Current Transport and Logistics Situation in Lao PDR Regional/Subregional Cooperation Association Southeast Asia Nation (ASEAN) Greater Mekong Subregion (GMS) Connectivity and Integration Asian High Way (AH), Trans-Asian Railway (TAR) and Dry Ports Intergovernment Transport Agreements and International Conventions Linking LLDC with Transit Countries and the rest of the World Logistics Perception Index Score (LPI 2014; World Bank)
5 III. Special Needs and Challenges for Transport and Logistics Development in Lao PDR Lao PDR as the Least and Locked Developed Country in ASEAN and GMS. LLD DryPort (LAOS): -Thanaleng, Vientiane -Houyxai, Bokeo -Laksao, Borikhamsai -Luangprabang, Luangprabang -Nateuy, Luangnamtha -Oudomsai, Muangxai -Pakse, Champasack -Seno, Savanakhet -Thakhek, Khammouane and GMS
6 III. Special Needs and Challenges for Transport and Logistics Development in Lao PDR Special Needs : Infrastructure and Facilities/ICT Technical Assistances (TA) Technology Transfer; Capacity Building; Financial Support - Integration of Border Management - Regional Facilitation Corridors/Land bridges
7 III. Special Needs and Challenges for Transport and Logistics Development in Lao PDR Challenges of Transport Developments in the LLDC - Effective Integration into Regional and Global Economy/FTA - Commitment Arrangement and Competition - Development Gaps between LLDC and its Transit Neighbors - Transport Infrastructure and Logistics Facilities/Enhancing Intermodal and Multimodal Transport Infrastructure and Investment - Institution and Coordination Mechanism of Transport Services - National Data Tools/ICT - High Transportation Costs/ unimode (Road) - Poorly Integrated Regional Logistics - Green Logistics/Reverse Logistics
8 III. Special Needs and Challenges for Transport and Logistics Development in Lao PDR (Cont.) Challenges of Transport Services in Integration and Competition GMS Infrastructure Characteristics; compiled from industry survey data Road Port IWT Airport Railway Guangxi, China Fair/Good Fair Fair Good/Fair Good/Fair Cambodia Fair/Poor Fair Fair Poor Lao PDR Fair/Poor Poor Poor Poor Poor Myanmar Poor Poor Fair Poor Fair Thailand Good Fair Fair Fair/Good Fair Viet Nam Fair/Good Fair Fair Fair Fair Yunnan, China Fair/Good Fair Fair Fair/Good Fair/Good
9 III. Special Needs and Challenges for Transport and Logistics Development in Lao PDR (Cont.) Challenges of Transport Services in Integration and Competition GMS Logistics Service Providers(LSPs) GMS LSP Issues Reflected in LPoA Cambodia Lao PDR Myanmar Guangxi, China Thailand Viet Nam Yunnan, China Limited capacity of local LSPs Weak professional organisation Limited information technology usage Low Logistics Service Quality level Weak international and GMS coverage Consolidated GMS LSPs Issues X X X X X X X X X X X X X X X Limited intra-gms logistics service coverage Limited levels of logistics service quality (LSQ)
10 III. Special Needs and Challenges for Transport and Logistics Development in Lao PDR (Cont.) ASEAN Transport and Logistics Services Commitments
11 III. Transport Connectivity Development (Cont.) Key Problems on Transport Services in Laos - Empty return haulage - Higher logistics cost - Limited transport volume - Limited business opportunities in small market - Difficulty in re-investing due to financial limitations of transport and logistics companies - Aged Fleet - Lack of Transport and Logistics Hub/Dry port - Inadequate resources for infrastructure investment and maintenance - Lack of institutional operation mechanism/segmented section
12 IV. National Logistics Development Policy Logistics Development Strategy in Lao PDR Implementation Plan Strengthening of Domestic Logistics Business: To assist LIFFA to set up Guarantee Scheme; and Strengthen its Function
13 IV. Conclusion and Recommendations Lao PDR as the Landlocked and Least Developed Countries in ASEAN and GMS continues to be less developed than their transit neighbors that border the sea. Poorer/Lower economic performance (LPI) of Landlocked and Least Developed Country (LLDC) attributed to geographical distance from the cost, the transport services become more complicated. Inadequate physical infrastructure development; and lack of private participation Strengthening Domestic Transport and Logistics Business-Building Sub/Regional (GMS/ASEAN) logistics HRD and Capacities Development of GMS/ASEAN Common Core Curriculum for Logistics Management Technical Assistance and Financial Support needed (Design insurance system; and financial supports / funding or guarantee ) Advice to LIFFA on set up of guarantee organisation ; and reliability support LIFFA strengthening program, including development of training program and implementation Enhancing multimodal transport infrastructure and investment Consolidated GMS logistics system: - Infrastructure - Institutional framework - Traders/manufacturers; and - Service providers
14 Thank you For your kind attention
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