Strengthening Railway Transport Connectivity in the South and Southwest Asia March 2017, New Delhi

Transcription

1 Strengthening Railway Transport Connectivity in the South and Southwest Asia March 2017, New Delhi S.M. NAZMUL HASAN Director BIMSTEC Secretariat, Dhaka, Bangladesh

2 An Overview of BIMSTEC Established as a Regional Organization on 06 June, BIST-EC to BIMSTEC Economic bloc to Multi-Sectoral Org Myanmar joined on 22 Dec 1997 Nepal and Bhutan joined in Feb 2004 Bridge between SA and SEA A platform for intra-regional cooperation between SAARC & ASEAN

3 An Overview/Contd. Member States- 07 Secretariat was established in 2014 Some basic facts: billion (22% of Global population) - Combined GDP- US$ 2.7 trillion - Trade potential-us$ 59 billion - Average Eco Growth -6.5% - Intra-regional trade US$ 77 billion (SAARC- US$ 44 billion, 2013)

4 Eastern Indian Ocean regional trade networks, c Adopted from Ports-of-Trade, Maritime Diasporas, and Networks of Trade and Cultural Integration in the Bay of Bengal Region of the Indian Ocean: c Kenneth R. Hall. Journal of the Economic and Social History of the Orient 53 (2010)

5 Objectives of BIMSTEC Promote Free Trade Area Increase cross border connectivity, investment and tourism Promote technical cooperation

6 BIMSTEC Areas of Cooperation Sector Trade and Investment Technology Energy Transport and Communication Tourism Fisheries Agriculture Cultural Cooperation Environment and Disaster Management Public Health People-to-People Contact Poverty Alleviation Counter-Terrorism and Transnational Crime Climate Change Lead Country - Bangladesh - Sri Lanka - Myanmar - India - India - Thailand - Myanmar - Bhutan - India - Thailand - Thailand - Nepal - India - Bangladesh

7 The idea of Connectivity Connectivity is flattening the world Connectivity is a cornerstone of regional economic cooperation and integration Enhanced Connectivity could result in: - ASEAN and East Asia s cumulative gain could be over 5% of GDP for Cambodia, Myanmar, Thailand and Viet Nam and over 2% for India [Economic Research Unit 2011]. Improved connectivity along with trade facilitation can significantly enhance regional trade by reducing transportation time and trade costs

8 7-Key drivers shaping Connectivity Physical connectivity (Road, Rail, Air, Maritime) Trade and transport connectivity (production and distribution network, value chains etc.) Energy connectivity Significance of population dynamics Nurturing of knowledge-based society ICT advancements (digital connectivity) People-to-people exchanges

9 Connectivity Matters Global flows (trade, people, finance and data) add between $250 billion to $400 billion (15% to 25%) to global GDP growth each year Most connected countries can expect to increase GDP growth from flows up to 40% more than the least connected countries Connectedness Index 2012: 1. Germany 2. Hong Kong 3. USA 4. Singapore 5. UK India and Brazil jumped 15 and 16 ranks respectively because of participation in global flows of services Global interconnectedness re-writing the rules of business and inter-state relations Source: No Ordinary Disruption by R Dobbs et al, 2015

10 BIMSTEC Transport Infrastructure and Logistics Study (BTILS) First raised at the 51st BWG Meeting in Bangkok, in July BTILS was agreed and commissioned in February 2007, Commencement in April Study was completed in November 2007 and 12 th BIMSTEC Ministerial Meeting in December 2009 endorsed the Final Report and its recommendations. The BWG in 2011 requested ADB to conduct an update and enhancement of the BTILS since there had been significant changes ( ) ADB submitted the Draft Report on Updating and Enhancement of the BIMSTEC Infrastructure and Logistics Study in July 2014 reflecting those changes and extending the planning timeframe forward to 2020.

11 Sectors Identified by the BTILS The first BTILS report proposed to constitute the following five Expert Groups to coordinate, monitor and review the progress of implementation of projects: Road development Railways Maritime transport Aviation & Trade facilitation and Logistics

12 Outcome of the updated BTILS Report Finalized Policies and Strategies for BTILS Prepared a Long List of projects (165) in the area of connectivity including a short list (66) of priority projects Finalized a Monitoring and Follow up mechanism for implementation of projects Finalized Institutional Mechanism for monitoring Proposed Work Plan for

13 Recommended BTILS Rail Policies Rail connectivity to landlocked countries Strategy: Development of rail links between India and the landlocked Member States of Bhutan and Nepal. Enhanced rail connectivity between ports and their hinterland Strategy: Prioritize rail access to new and existing ports especially for bulk cargoes and the transit of container traffic between the ports and ICDs

14 BTILS identified 12 projects. 5 projects [India- Nepal] and 7 projects [Ban-5, Ind-1, Thai-1] BANGLADESH: i. Tongi Bhairab Bazaar extra tracking ii. Second bridges at Bhairab Bazaar and Titas iii. Short List of BIMSTEC Priority Rail Projects, more lines Dhaka Tongi and Tongi Joydevpur iv. Double tracking Laksham Akhaura link v. Bridge parallel to Bangabandhu Bridge

15 Short list/contd. INDIA: Eastern Dedicated Freight Corridor NEPAL: 5 new rail connections with India THAILAND: Chachoengsao Klong 19 Kaeng Khoi project Some projects are completed while some inprogress

16 Soft infrastructure The number of soft structure projects has increased (trade and transport facilitation). Soft infrastructure projects are related to: Increased automation in customs through system upgrades Reductions in trade documentation Training of border personnel Development of national single windows Transport planning in Myanmar Port and road planning in Bangladesh

17 Inception Meeting of the BTCWG Member States submitted their comments on the Draft Final Report of the BTILS and Draft ToR. The implementation of the recommendations of the Study was discussed at the Inception Meeting of the BTCWG, held in Bangkok (30-31 Aug, 2016). BTCWG finalized the ToR, adopted proposed Work Plan, Implementation Measures and Monitoring Framework.

18 SOM Approval SOM approval required for implementation of all Meeting decisions 17 th SOM, after 03 Years Endorsed the BTCWG Report and BTILS Report

19 Leaders Retreat, India, 2016 Outcome Document (14 areas) Agenda of Action (16 points)

20 Retreat Outcome Document Being convinced that the development of connectivity in various forms and manifestations is the key to promote regional integration, we express satisfaction at the continuing efforts and initiatives to advance multi-modal physical connectivity (air, rail, roads and waterways) in the BIMSTEC region. We note with satisfaction the progress achieved in implementation of the recommendations of the BIMSTEC Transport Infrastructure and Logistics Study. We agree to explore the possibility of having a BIMSTEC Motor Vehicle Agreement.

21 Leaders Agenda of Action Transport and Communication i. Coastal Shipping Agreement ii. Greater physical and economic connectivity iii. Master plan for BIMSTEC Connectivity iv. Economical, Technical and Infrastructure Cooperation

22 Leaders Agenda of Action/Contd. Trade and Investment i. BIMSTEC Framework Agreement on Transit, Transshipment and movement of Vehicular Traffic ii. BIMSTEC Trade Facilitation Agreement iii. Fast track BIMSTEC FTA negotiations iv. Discuss BIMSTEC Mutual Assistance on Customs Matters

23 Key BIMSTEC Trade Routes In the context of surface transport, there are 3 dominant existing/potential BIMSTEC trade routes: Route 1: Kolkata Siliguri Guwahati Imphal - Moreh/Tamu Mandalay Bago - Myawaddy/Mae Sot Tak Bangkok - Laem Chabang; Route 2: Kolkata - Petrapole/Benapole Jessore - Dhaka - Chittagong; and Route 3: Kolkata Raxaul/Birgunj - Kathmandu

24 BIMSTEC Trade Routes

25 Thank You