REGIONAL SEMINAR ON DEVELOPMENT OF EFFICIENT AND EFFECTIVE LOGISTICS SYSTEMS 7-8 May 2013, Hangzhou, China

Transcription

1 REGIONAL SEMINAR ON DEVELOPMENT OF EFFICIENT AND EFFECTIVE LOGISTICS SYSTEMS 7-8 May 2013, Hangzhou, China Mohammad Shoaib Director (Road Transport) Ministry of Communications Government of Pakistan 1

2 PAKISTAN s GEO-STRATEGIC LOCATION TURKEY SYRIA IRAQ GEORGIA CASPION SEA ARMENIA AZERBAIJAN ARAL SEA UZBEKISTAN TURKMENISTAN KAZAKHSTAN KYRGYZSTAN MANGOLIA KOREA JAPAN TAJIKISTAN IRAN AFGHANISTAN CHINA SAUDIA ARABIA UAE PAKISTAN NEPAL BHUTAN TAIWAN YEMEN OMAN INDIA BANGLADESH MYANMAR LAOS THAILAND CAMBODIA BANG`KOK VIETNAM To Europe SRILANKA MALASIA SINGAPOR

3 PAKISTAN Area = 796,096 Sq- km Population = 180 million Road Density = 0.32 Km/sq-km Currency = Pak Rupee Roads have dominant share in both transport of passengers (94%) and the Goods (97%) followed by rail. Total Number of Vehicles are more than 9.7 million 56% are two Wheelers and 44% four Wheelers (including Cars) Annual Cumulative Growth rate over is 9.3% Karachi, the largest city has two ports- Karchi port and port Qasim with road and rail linking to upcountry North Third port i.e. Gawadar port near Iranian Border operationalized to further facilitate and enhance movement of transit-traffic. The country offers the most attractive transit route to the land locked Central Asian countries.

4 PAKISTAN

5 Pakistan s Trade & Transport Sector Vision Improve competitiveness of Pakistani trade internationally Enhance Pakistan s share of world trade (currently only 0.2%) Increase Pakistan s exports from US$ 20 billion to between US$ billion by 2030 Establish an efficient logistics chain and well integrated transport system that will facilitate the development of a competitive economy Reduce transport costs and enhance affordability Ensure safety in mobility Improve regional connectivity (links with China, Afghanistan / CARs, Iran etc.) sustain high growth smooth interface between the public and private sectors,

6 National Trade Corridor Improvement Program (NTCIP) In addition, Pakistan s National Trade Corridor Improvement Program (NTCIP) carries a reform agenda to revamp the prime areas of transport, trade policy, trade facilitation and energy. NTC development adopts a Holistic and Integrated Approach to: Reduce the cost of doing business by improving trade logistics to international standards

7 I R A N I R A N Taftan NATIONAL HIGHWAYS & MOTORWAYS Province Km %age Punjab Sindh Khyber Pakhtunkhwa Gabd Pleri Gwadar Jiwani Indus Jhelum Chenab Sutlej Ravi Karimabad S-1 Chitral Kalam GILGIT Sazin Drosh N-35 Chilas Dir Besham Jalkhad Chakdara Saidu N-15 Naran Jalalabad Malakand Muzaffarabad M-1 Mansehra S-3 Torkham Abbotabad S-2 Parachinar PESHAWAR Murree Kohala Chakothi N-75 Hasanabdal Kohat ISLAMABAD KhushalGarh Rawalpindi Jhelum Kharian Karak Gujrat Wazirabad Sambarial Gujranwala Pindi DI Khan Bhattian Mughal Kot M-3 LAHORE Zhob Faisalabad Chaman Retra Okara QilaSaifullah Kuchlak Taunsa Sahiwal Mianchannu QUETTA Loralai DG Khan Multan Khanewal Muzaffargarh Mastung Sibi Lodhran Nushki Dadhar Bahawalpur Kalat Rajanpur Dalbandin Nok Kundi Surab DeraMuradJamali Jacobabad Rahimyar Khan Shikarpur Ubauro 100 Besima Khuzdar Nag Ratodero Ghotki 90 Sukkur 80 Wad Larkana Khairpur Punjgur 70 Ranipur Kotri Kabir Dadu Naushero Firoz % 40 M-8 Kararo Moro Turbat Awaran 30 Hoshab Bela 20 Kakkar Liari Uthal Hala 10 S I N D Mirpurkhas 0 Duregi N-120 Khokhropar Kotri Pasni Hyderabad Ormara Umarkot ROAD KARACHI Gharo Thatta N-110 Keti Bandar N-40 N-10 N-85 M-8 N-30 N-25 M-8 N-55 N-65 N-50 N-70 B A L U C H I S T A N ARABIAN SEA Balochistan Gilgit-Baltistan AJK Total National Highways Motorways Planned N-25 N-25 E-7 M-9 E-6 Super Highway Naudero N-5 N-5 N-105 Lakhi N-55 F A T A Indus N-55 Kabul E-5 N-45 N-80 N-5 E-5 N-95 N-90 M-2 Khuber Pakhtunkhwa P U N J A B N-5 M-4 E-3 Sust G I L G I T 97%94% Freight Traffic ROAD Passenger Traffic Khunjrab Pass Dambu Skardu C H I N A K2 8611m DISPUTED TERRITORY Karakoram Pass 5575m J A M U & K A S H M I R Indus Leh Total roads = 260,000 Km NHA network = 12,131 Km (4 %) Carries 80% of commercial traffic N-5 carries 65% of this load 5% 8% RAIL RAIL 0%2% AIR

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9 CROSS BORDER ROAD TRAFFIC Almost 95% of trade is sea-borne and volume of cross-border road traffic is very low at present. Only Torkham (Border with Afghanistan) has higher level of traffic with almost 400 vehicles a day and 700,000 tons of goods per year. This constitutes almost 70% and 50% of the total crossborder traffic of vehicles and goods tonnage respectively. International transit traffic is expected to increase manifold in the near future under bilateral and multi-lateral transport Agreements ASIAN HIGHWAY ROUTES IN PAKISTAN 9 4

10 Key Government Initiatives There is growing recognition within the Government of Pakistan (GOP) that the country s ability to realize its economic potential is closely linked to the efficiency of its transport system. Accordingly, the Government has initiated a number of actions to address the key constraints faced by the sector. These include: A new integrated National Transport Policy. Increase of infrastructure investments, including in transport, Roads are increasingly being viewed as a service and a business and National Highway Authority (NHA) has set up a dedicated road fund account through which significant fund allocation is being made for network conservation. A National Highway Safety Ordinance has been enacted to provide the legal basis for establishing the Highway and Motorway Police (NH&MP) Force under the federal Ministry of Communications. This measure expands the role of the very successful Motorway Police to the National Highway System, in a phased manner. 10

11 Key Government Initiatives The qualifications and level of professional competence of Freight Forwarders are being raised through trainings to meet the challenges posed by the requirements of modern supply chain as per FIATA international standard to freight forwarders under the banner of PIFFA. To reduce transaction cost and expedite clearance of goods in ports, Pakistan Customs is implementing a single fully computerized Customs clearance system at all Customs Stations in Pakistan. Web based One Custom (WeBOC) has already been introduced at Karachi Airport and Port Qasim including QICT. We are working on arranging harmonized formats for producing electronic version of all important international trade documents to facilitate electronic transactions. Once this is achieved the Customs clearance time and transaction costs should get considerably reduced to facilitate the trade. 11

12 NATIONAL TRANSPORT POLICY The broad objectives are to: Provide safe, reliable, effective, efficient, affordable, accessible, sustainable and fully integrated transport system that will best meet the needs of freight & passenger access and mobility requirements and will be aimed at improving levels of service and cost effectiveness in a fashion that supports governments goal of increasing public welfare through economic growth, and social improvement, poverty reduction and infrastructure and development while being environmentally and economically sustainable and energy efficient.

13 GOALS OF TRANSPORT POLICY To support the goals of reconstruction, modernization and development program and beyond for meeting basic needs, growing the economy, improving efficiencies, developing human resources, and facilitation of decision making. To enable customers requiring transport for people or goods to access the transport system in ways that best satisfy their chosen criteria and meets their needs. To improve our competitiveness and that of transport infrastructure and operations through greater effectiveness and efficiency, and to better meet the needs of different customer groups, both locally and globally. To invest in infrastructure and transport systems in cost effective ways that satisfy social, economic or strategic investment criteria and satisfy the Government s broad development objectives. To achieve the above objectives in a manner that is economical, environmentally sustainable, energy efficient and minimizes negative externalities i.e. side effects.

14 SECTORS UNDER NTP This National Policy covers an overview of vision, mission and strategic objectives of following eleven areas: 1. Road Infrastructure 2. Road Services 3. Railway Sector 4. Ports and Shipping Sector 5. Airport and Civil Aviation Sector 6. Pipeline Transportation 7. Water Transport on Rivers and Canals 8. Transport Logistics and Custom 9. Urban Transport 10. Inter Modal Transfer 11. Legal

15 Transport Logistics and Custom Facilitate and enhance the expansion of international trade and tourism in general, and exports in particular. Ensure that economic decisions are, as far as is possible, left to market forces, subject to general competitive principles applicable to all industries, with a view to maximizing consumer choice, need satisfaction and job creation. Promote the development of an efficient and productive our transport industry capable of competing in international markets. Standards of supply chain efficiency shall be set as objectives for the logistics industry based on a reliable performance-monitoring system. Government shall facilitate development of logistics centers through public-private partnerships. The freight-forwarding industry shall operate under Government approved regulations and otherwise be self regulated.

16 An automated commercial community single-window (one-stop) system shall be developed through a public-private partnership. Legislation shall be introduced that permits a bill of lading facilitating door-to-door (D-to-D) or terminal-to-terminal (T-to-T) shipments under a single document. Freight transport insurance and financial regulations and practices related to freight-forwarding shall facilitate D- to-d/t-to-t operations. Implementation of the Transports Internationaux Routiers (TIR) Concention & other international Customs Conventions shall be completed after a full assessment of implications for Pakistan. Efforts shall be made to implement the Transit Transport Agreements Monitoring of performance: Government will develop and specify key performance indicators with respect to its strategic objectives. The indicators will facilitate monitoring of the progress of various authorities in implementing the mission to ensuring compliance with legislation and promoting sustainability and competitiveness. 16

17 Problems In Logistics Sector A Logistics Cost Study carried out highlighted the following problems stated by European importers in the Pakistan context: Agreed delivery times are very often exceeded Total lead time is rather long Emergency replenishment orders are very difficult to get through Full quality compliance percentage is low No up-to-date communication vehicle Ex-factory charges are often fluctuating Damage and pilferage happens frequently Image problem of freight forwarders House Bill of Lading has created problems 17

18 NATIONAL TRADE FACILITATION STRATEGY With the developments in WTO and globalization of trade, trade facilitation has become an important tool for improving the competitive edge of a country in the international market place. Completion of all transaction requirements for the international supply chain to achieve just-in-time delivery within the shortest possible lead time and at the least cost of doing business requires adoption of trade facilitation measures with cooperation and coordination of all the concerned parties, and appropriate measures have to be adopted to remain in the competitive international market. After taking into consideration the international developments and the situation in Pakistan, National Trade facilitation Strategy has been evolved. The measures that need to be adopted have been identified. An Action Plan indicating the targets for executing various strategy objectives has been set-forth. 18

19 Transport Legislation To modernize legislation of Pakistan relating to carriage of goods, the following Bills have been introduced, and are at present at different stages of its deliberation: Carriage by Air Bill, 2011 Carriage of Goods by Road Bill, 2012 Carriage of Goods by Sea Bill, 2012 Sea Carriage Shipping Documents Bill, 2012 Marine Insurance Bill,

20 Draft Logistics Service Providers Regulatory Authority Bill 2013 In order to resolve the issues between the exporters and importers and logistics services providers like shipping agents, freight forwarders and container terminal operators regarding the shipping charges levied by logistics service providers, a draft Logistics Service Providers Regulatory Authority Bill 2013 has been prepared in consultation with all the stakeholders. The key objectives of this authority are: to promote a modern system of logistics services in Pakistan. to coordinate with all government systems for efficient functioning of logistic services to prepare model standard trading conditions for logistic services providers to prescribe, regulate or implement measures and standards for licensing or any matter related to logistics services 20

21 THANK YOU 21

22 BILATERAL/MULTILATERAL TRANSPORT AGREEMENTS Pakistan has signed following Bilateral / Multilateral Transport Agreements with different countries in the region: Quadrilateral Agreement on Traffic in Transit among Pakistan, Kyrgyzstan, Kazakhstan and China (In Operation since May 2004) Bilateral Agreement between Pakistan and China on International Road Transport (In Operation since April 2005) Bilateral Agreement between Pakistan and Uzbekistan on Cooperation in the field of Road Transport (To be operationalized in near future) ECO s Transit Transport Framework Agreement (TTFA) Between Azerbaijan,Afghanistan,Pakistan,Turkmenistan,Tajikistan, Contd.. Kyrgyzstan, Kazakhstan, Uzbekistan, Iran & Turkey (To be

23 BILATERAL/MULTILATERAL TRANSPORT AGREEMENTS Bilateral Agreement on Road Transportation between Pakistan and Iran (In Operation since 1992) Bilateral Agreement between Pakistan and Turkey on Road Transportation (To be operationalized in near future) Agreement on Pak-India Bus Services (In Operation) Lahore New Delhi (3 times a week from each side) Lahore Amritsar (2 times a week from each side) Nankana Sahib Lahore Amritsar (2 times a week from each side) Agreement on the commencement of Bus Services between Pakistan and Afghanistan Peshawar Jalalabad (In Operation since May 2006) Quetta Qandhar (Yet to be operationalized due to security concerns) Contd..

24 BILATERAL/MULTILATERAL TRANSPORT AGREEMENTS Proposed Agreement between the Government of Islamic Republic of Pakistan and the Republic of Turkmenistan on transit traffic (Proposed by Pakistan - under Negotiation) Proposed Trilateral Agreement between the Governments of Pakistan, Afghanistan and Tajikistan on Transit Trade (Proposed by Pakistan - under Negotiation) Proposal for Pakistan s joining to CAREC Cross-border Transport Agreement (CBTA)