logistics strategy and logistics development plan in lao pdr
TRANSCRIPT
Mr. Sonephet SOMEKHIT
Division of freight and logistics
Department of Transport1
MINISTRY OF PUBLIC WORKS AND TRANSPORT, LAO PDR
3rd Meeting of Working Group on Dry Ports
13-14 November 2019
Logistics Strategy and Logistics Development
Plan in Lao PDR
Outline
2
Background of Dry Port
Objective
Actions to Achieve
Status on Transport and Logistics Development
Vision 2030 and Strategic Plan (2016-2025)
Development Plan (2016 – 2020)
I
II
III
IV
V
VI
I. Background of Dry Port
• 2005, Studied by JETRO;
• 2011, Completed Master Plan Logistics systemsupported by JICA (identified and Pre-design of 3
Logistics parks in Lao PDR)
• 2012, the Strategy was started and improved throughconsultation procedures and also organizing meetingswith the relevant sectors;
• 2013 Signed Intergovernmental Agreement on Dry Port;(9 location of dry port identified)
• 2014 continued to finalise and submitted to governmentfor approval;
• 2015 approved by the government
II. Objectives
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• Transform from a land-locked to a land-
linked country in GMS Region by:
✓ Providing efficient and reliable
transport infrastructure and facilities,
especially on transit routes, e.g. Central
Corridor, and North-South Corridor.
✓Facilitating cross border transport on
goods and passengers between and
among neighboring countries.
Source: http://economists-pick-research.hk tdc.com/business-news/article/Research-Articles/The-ASEAN-Link-in-China-s-Belt-and-Road-Initiative/rp/en/1/1X000000/1X0A3UUO.htm
1. Domestic Road laws:
- Road Transport Law (revised in 2012);
- Road Traffic Law (revised in 2012);
- Multimodal Transport Law (newly developed 2012).
2. Intergovernmental Cooperation - Agreement :
- MoU on Road Transportation between and Among Cambodia – Laos - Vietnam;
- MoU on Road Transportation between and Among Laos – Thailand - Vietnam;
- Intergovernmental Agreement on Asian Highway Network;
- Intergovernmental Agreement on Trans-Asian Railway Network;
- Intergovernmental Agreement on Dry Ports.
Name of Agreement Contracting Parties Date
Agreement on Road Transport Between Lao PDR and Vietnam Laos–Vietnam 23 Apr 2009
Agreement on Road Transport Between Lao PDR and China Laos–China 12 Mar 1993
Agreement on Road Transport Between Lao PDR and Thailand Laos–Thailand 03 May 1999
Agreement on Road Transport Between Lao PDR and Cambodia Laos-Cambodia 21 Oct 1999
Framework Agreement on the Facilitation of Goods in Transit ASEAN 16 Dec 1998
Cross-Border Transport Agreement GMS 1999
III. Actions to achieve the Goal
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Road linked to bordering countries.
Asian Highways :
- AH 3 : Houyxay – Nateay (206km)
- AH11 : Vientiane – Pakse-Veunkham (853km)
- AH12 : Thanaleng – Boten (679km)
- AH13 : Muang Ngeun – Oudomxay (340km)
- AH15 : Ban Lao–Lak 20-Namphao (132km)
- AH16 : Savannakhet – Dansavan (242km)
- AH131: Thakhek-Ngommalad-Naphao (146km)
- AH132 : Phiaphay-Samakkhexay-Phoukeua (Lao-Vietnam
Border) (218km)
Total AH : 2,816 km
AH3
AH12
AH11
AH15
AH16
Remark : Only, AH 3 & AH 16 have road bearing
max. capacity 11 tones/axle. The other AH need to be
upgraded.
VIENTIANE
AH132
AH131
AH13
Border Crossing Points with neighboring countries
• Laos – Cambodia : 1 Border
• Laos – China : 1 Border
• Laos – Thailand : 10 Borders
• Laos – Vietnam : 15 Borders
III. Actions to achieve the Goal (Cont.)
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Bridges Construction
❖ 4 Laos-Thailand Friendship Bridges have
been completed
❖ 1 Laos-Myanmar Friendship Bridge
(Xiengkok - Khenglab) opened in May 2015
III. Actions to achieve the Goal (Cont.)
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RAILWAY DEVELOPMENT IN LAO PDR
1. Lao-China RW Project, starting from
Laos China Border to Vientiane
Capital: 414 km (under
construction).
2. Lao –Thailand RW Project:
2.1 Phase I: RW track 3.5 Km
(complete)
2.2 Phase II (Section 1): Container
Yard (complete)
2.3 Phase II (Section 2): RW track 7.5
Km (on going)
3. Savannaket–Laobao (Lao-Vietnam
border) RW Project: 220 km
4. Vientiane –Thakhek–MuGia (Laos-
Vietnam border) RW Project: 455 km
5. Thakhek–Savannaket–Pakse–
VangTao (Lao-Thai border): 345 km
6. Pakse–VeunKham (Lao–Cambodia
border): 150 km
MYANMAR
THAILAND
CAMBODIA
VIETNAM
CHINA
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Open in 2009 for only passenger
transport
Existing 3.5 km cross border railway
between Laos (Vientiane) and Thailand
(Nongkhai)
III. Actions to achieve the Goal (Cont.)
Open for goods transport
in August this year
IV. Status on Transport and Logistics Development
Challenges
Sectors related to transportation at central and local levels
don’t recognized or deeply understand the role of logistics,
don’t grasp the significant contents of the region’s treaties
and agreements on transportation;
Only infrastructure on communications - transportation, but
development of logistics such as: product collection and
distribution centers have not yet been developed, including
lack of business entrepreneurs in logistics;
OPPORTUNITY
Economic development in Asia and opportunity on
integration on trade and transport will encourage new model
of trade which will increase production and volume of goods
distribution which will lead to perfect condition for logistics
development;
Development of infrastructure to link neighboring countries
will facilitate future efficient transport.
IV. Current Transport and Logistics Situation (Cont.)
In the integration condition, domestic company will compete
and cooperate with foriegn company in order to upgrade
quality of service and labor.
To realize logistics development, we have laws on highways,
transport, multimodal, traffic and . . . etc.
OPPORTUNITY
IV. Current Transport and Logistics Situation
V. Vision 2030 and Strategic Plan (2016-2025)
Vision 2030
“Highly effective and efficient connectivity services,
domestic freight transport and logistics is
competitive and sustainable”.
• Improve domestic transport businesses, especially freight
transport and logistics companies by strengthening
company models allowing them to improve services and
capabilities to compete with foreign firms and link with
international transport companies along with improving
the transport association.
• Open more logistics transport businesses to make services
highly competitive and able to connect with local and
international markets while building high credibility and
confidence amongst domestic and foreign consumers.
V. Vision 2030 and Strategic Plan 2016-2025 (Cont.)
•Oudomsai
15
Dry port location in Lao PDR
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THAILAND
Luang Namta
Houay Xai
Luang Prabang
Vientiane
Thakek
Savannakhet
Pakse
International Logistics Hub
Regional Logistics Hub
Hub for Specific Product
Losgitics Zone
International Logistics RouteCAMBODIA
VIET NAM
CHINA
MYANMAR
Laksao
THAILAND
Vientiane – Boten
Nongkhai - Vientiane -Thakhek - Mu Da
Chong Mek - Pakse -Savannakhet – Laobao
Mukdahan -Savannakhet -
Lao Bao
1. Thanaleng, Vientiane (under FS)
2. Nateuy, Luangnamtha (under negotiation for
conducting FS)
3. Savanakhet, Savanakhet (in operation)
4. Pakse, Champasack (detailed designed)
5. Thakhek, Khammouane (under FS)
6. Laksao, Borikhamsai (under negotiation for
conducting FS)
7. Houyxai, Bokeo, (no proposal)
8. Luangprabang, Luangprabang, (no proposal)
9. Oudomsai, Muangxai, (no proposal)
1. Boten ICD (in operation)
2. Thakhek ICD (in operation)
Dry Port Location in Lao PDR
Example of a Dry Port
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Source: https://worklivelaos.com/lao-driving-test-to-be-computerised/
Savanakhet Dry port
Thakhek Dryport
Champasak Dry port
Thanaleng Dry port
Gate/ Weight StationOperation Office
Warehouse
Platform
Container Yard
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VI. Development Plan (2016-2020)
Focused group of projects on Infrastructure and
transport 2016 to 2020 as follows:
1) Highway improvement/Upgradation
2) Railway Construction
3) Development of dry port (logistics park), distribution centers,
truck terminal
4) Logistics Legislation and regulation development
5) Development project on Common Control Area.
6) Development of standard for border checkpoint
7) Border improvement and Border facilities improvement
8) Installment of IT system onto logistics services
Thank you
Mr. Sonephet SOMEKHIT
Division of Freight and Logistics
Department of Transport
Ministry of Public Works and Transport
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