proceedings of the fifteenth meeting of the gms subregional transport forum

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September 2011 REG: Greater Mekong Subregion Economic Cooperation Program Summary of Proceedings: 15 th Meeting of the GMS Subregional Transport Forum (STF-15) The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.

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Page 1: Proceedings of the Fifteenth Meeting of the GMS Subregional Transport Forum

September 2011

REG: Greater Mekong Subregion Economic Cooperation Program Summary of Proceedings: 15th Meeting of the GMS Subregional Transport Forum (STF-15) The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.

Page 2: Proceedings of the Fifteenth Meeting of the GMS Subregional Transport Forum

Fifteenth Meeting of the GMS Subregional Transport Forum Vientiane, Lao People’s Republic

14-15 September 2011

SUMMARY OF PROCEEDINGS

Introduction 1. The Fifteenth Meeting of the Subregional Transport Forum (STF-15) was held in Vientiane, Lao People’s Democratic Republic, on 14-15 September 2011 The Meeting was jointly organized by the Ministry of Public Works and Transport, Lao PDR and the Asian Development Bank (ADB). The objectives of the Meeting were: (i) to review and monitor the progress on priority GMS transport projects; (ii) to review the draft report of the Regional TA for Planning the GMS Railway Coordination Office; and (iii) to apprise the Forum on key initiatives in other related sectors and areas of cooperation, related to the transport sector. (The Meeting Program and Agenda is attached as Appendix 1). 2. The Meeting participants included delegations from the Kingdom of Cambodia, the People’s Republic of China (PRC), the People’s Republic of China (PRC), the Lao People's Democratic Republic (Lao PDR), the Union of Myanmar, the Kingdom of Thailand, the Socialist Republic of Viet Nam, and ADB. Representatives from various development partner organizations also attended the Meeting. (The list of participants is attached as Appendix 2). 3. The Meeting was chaired by Mr. Math Sounmala, Director General, Department of Planning and Cooperation, Ministry of Public Works and Transport, Lao PDR, and co-chaired by Mr. James P. Lynch, Director, Transport and Communications Division, Southeast Asia Department, ADB. Day 1 Proceedings: 14 September 2011

I. Opening Session 4. His Excellency, Mr. Sommad Pholsena, Minister of Public Works and Transport of the Lao PDR, welcomed the participants. In his Welcome and Opening Remarks, he said that in line with the Lao Government’s goal of gradually eradicating poverty and meeting the MDGs, the MPWT has focused its plans toward the development of an efficient and reliable transport system to help create a favorable condition for sustainable economic growth and poverty reduction, as well as environmental protection and regional integration. The Ministry’s main focus is to improve road transport, since roads are the dominant mode of transport in the country and are very critical to its socio-economic development. Apart from hard infrastructure development, the Lao Government has also been working on legal instruments to fully utilize its transport infrastructure. He noted, however, that while there has been good progress in putting in place bilateral agreements, there was a need to speed up the implementation of the mutilateral GMS Cross Border Transport Agreement (CBTA). He encouraged the Forum to work toward making the transport corridors more attractive for trade and tourism flows. His recommendations for priority projects in this regard include the construction of the Laos-

Greater Mekong Subregion Economic Cooperation Program

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Myanmar Mekong Bridge between Xieng Kok and Kyaing Lap, and the development of a corridor connecting Vientiane, Luang Prabang (Lao PDR), Chiang Mai (Thailand), Mandalay and Bagan (Myanmar). He also informed the meeting that the Lao Government has recently completed the National Transport Logistics Master Plan consisting of three major strategies namely Cargo Flow Integration; Business Stimulation and Market Expansion, and which includes more than 20 projects. (A copy of the Minister’s statement is in Appendix 3). 5. Mr. Math Sounmala, Chair, in his opening remarks, noted that the GMS Transport Forum is a key instrument for regional cooperation and integration under the GMS Program, and that substantial progress has been achieved not only in infrastructure development as represented by the near completion of the main GMS transport corridors, but also in the software aspects of subregional transport development. For instance, the CBTA is already in operation at certain borders between Lao PDR and its neighbors, and various agreements on exchange of traffic rights are also underway. Cooperation is also being considered to be extended to other modes of transport, particularly railways. For Lao PDR, developing transport links with its neighboring countries is crucial, since being a landlocked country, this is the only way that Lao PDR can integrate with the regional and global economy. He also expressed appreciation for ADB’s support for transport cooperation in the GMS. (A copy of his statement is in Appendix 4). 6. Mr. James Lynch, Co-Chair, in his opening statement, gave a brief background on the beginnings and achievements of the GMS Subregional Transport Forum, emphasizing the important role of transport cooperation in the GMS Program’s overall “3 Cs” strategy of enhanced connectivity, improved competitiveness, and a greater sense of community. Despite these substantial achievements, however, recent global and regional trends and challenges call for even stronger cooperation and decisive action going forward. Among these challenges are the ever-increasing competition in global markets that call for closer regional economic integration, greater efficiency through the development of multimodal and intermodal transport, the need to mitigate and adapt to climate change, transformation of transport corridors into full-fledged economic corridors, coordination of transport development with other sectors, and the development of the necessary software and institutional capacities. (A copy of his statement is in Appendix 5).

II. Session 1. Country Status Reports on Priority Transport Projects 7. The GMS delegations presented their respective country reports, which provided updates on the priority transport projects of their respective countries, particulalry those included in the Vientiane Plan of Action as well as other GMS-related projects considered high priority by their governments. Presentations were made by the following participants: (i) Mr.Hong Sinara, Deputy Director General, Ministry of Public Works and Transport, Cambodia; (ii) Mr. Li Guoliang, Project Officer, Ministry of Transport, PRC; (iii) Mr. Laokham Sompheth, Director General, Department of Roads, Ministry of Public Works and Transport, Lao PDR; (iv) Mr. Aung Myint Hlaing, Deputy General Manager, Ministry of Rail Transportation Myanmar; (v) Dr. Siriphan Jitprasithsiri, Director of International Highways Development Division, Department of Highways; and (vi) Mr. Nguyen Ngoc Thuyen, Deputy Director General, International Cooperation Department, Ministry of Transport, Viet Nam. (The GMS delegations’ respective country reports are in Appendices 6-A to 6-F).

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III. Proposed GMS Railway Coordination Office (RCO)

Background on the Issues and Rationale for the Proposed establishment of the RCO 8. Mr. Peter Broch, Senior Transport Economist with ADB’s Southeast Asia Department presented the background on the key develoopments, issues and rationale behind the proposal to establish the RCO. This a key recommendation of the the Strategic Framework for Connecting GMS Railways endorsed by the GMS Ministers in their 16th Ministerial Meeting in 2010. (A copy of his presentation is in Appendix 7). Presentation on the Proposed Plans and Key Issues Regarding the RCO 9. Mr. W. Gregory Wood, Consultant, Regional Technical Assistance for Planning the RCO, gave a presentation on the key issues involved as well as options that may be considered in establishing and operating the RCO. His presentation also included: the experience of existing international organizations involved in railway integration and the lessons learned from their experience; the experience in ASEAN and individual GMS countries and pairs of countries toward linking railways, and lessons learned from this experience; key questions that have to be answered to serve as basis or inputs for planning the RCO. The issues, questions, and options were grouped into several areas, among which were: the RCO’s mandate and functions, organization/structure, membership, legal standing, location, staffing, and financing. (A copy of his presentation is in Appendix 8). Reactions from Discussants: 10. Mr. Mukul Mathur, representative from the International Union of Railways (UIC), gave some suggestions, among which were: (i) on the RCO’s mandate, it could identify key rail projects for strengthening rail connectivity in the region, provide technical standards to address interoperability issues to be suggested for adoption by member countries, prepare the legal framework, organize training/capacity building activities, and liase with international agencies; on the other hand, the RCO should not be involved in project planning, fund allocation, and arbitration; (ii) on the RCO’s organization, it should be financially supported by all the member countries to function effectively, starting with a bare minimum staff, have legal standing preferably as a non-profit entity and possibly as an international organization covered by the immunities/privileges of the United Nations; the RCO should avoid any duplication with ASEAN and taking on any commercial venture, and should not be involved in recommending any specific technology vendor/supplier; (iii) on staffing, the RCO should be staffed initially through secondments with the parent organizations (presumably government and international organizations) bearing the cost of seconded staff, but recruitment from the market could be considered for certain specialized expertise unavailable through secondment; (iv) the start up cost has to come as a grant from financial institutions or as seed money from members; considering the small number of GMS members, the viability of running the office purely on membership subscription has to be studied further; (v) on location, the office should be located in one of the member countries; Bangkok seems to be a logical option in view of central location and facilities, but much would depend on the kind of support that the (Thai) Government can provide. He said that UIC can provide assistance in terms of setting standards and addressing training needs. 11. Mr. David Kerr, Chief Executive Officer, Toll Royal Railway shared his views on the proposed RCO and also described some of the key features of the restructured railway in Cambodia, which his firm, a joint venture between Toll Holdings of Australia and the Royal Group of Cambodia, is operating under a 30-year concession agreement. He suggested that the

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RCO should focus on setting standards for railway operations, such as locomotive standards, wagon standards, drivertraining standards, safety standards, and so on. He said that an efficient RCO is imperative for the success of the GMS railway strategy. (A copy of his presentation is in Appendix 9.) Open Discussion 12. In response to a question from the Co-Chair, Mr. Mathur reiterated that UIC can help in the RCO’s establishment and operations of the RCO in terms of providing technical expertise in setting standards and in the training aspects. 13. Mr. Paul Apthorp, TNT International and GMS-BF Board member, noted that for railways to be able to compete with other transport modes, they must be able to provide guaranteed and competitive transit times. Co-Chair agreed, commenting that railways are not about building tracks but instead about providing a needed service. 18. Thailand noted that there are several bodies that are working on railway integration in the region, e.g., the working group on the Singapore-Kunming Railway Link (SKRL) under ASEAN, but it has been difficult to establish the line connections due to lack of funding. It was suggested, therefore, that the RCO focus on resource mobilization, for instance by preparing feasibility studies on the needed connections. Thailand also suggested that at the initial stage, the RCO can start as a small office that could perhaps be located in the ADB office in Bangkok. However, given that the initial work will be mostly on setting technical standards, there may be no need for a single location, as such work can be supported rom various locations. Viet Nam and Cambodia supported the proposal that at the initial stage, say for the first year, the RCO be supported by ADB and be located in Bangkok. 14. Cambodia suggested that “Railway Coordination Office” be replaced by a more interesting name. Co-chair requested the countries to give their suggestions.

Summary of the Session 15. Mr. Broch summed up the results of the session, as follows:

• The countries (particularly those that have not yet given any written comments) will give their further comments on the RCO paper that has been circulated, if possible, within the first three weeks of October; the report will be revised in early November;

• Expressing his own views on the RCO’s mandate, he said that the office’s ultimate purpose is to help facilitate cross-border trade, not building railways/missing links per se; he agreed that if railways are already able to provide guaranteed transit times, then they would be used;

• The key questions that need to be answered are: (i) what is the RCO’s role and mandate; what it should not do? (ii) how do we finance its establishment and operations; (iii) who should comprise the RCO – government? railway authorities? the railway industry? – He expressed the view that industry should be involved in a central way. Ultimately, these questions should be answered based on what the GMS countries themselves thing they need and on what is practical.

• As regards the office’s location, he invited offers from any country who may be interested in hosting it, say, through provision of office space.

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IV. Session 3. Briefings on Transport and Trade Facilitation (TTF) Initiatives in the GMS

Session 3-A. Updates on GMS TTF Initiatives 16. Mr. Alfredo Perdiguero, Principal Economist, Thailand Resident Mission, ADB briefed the meeting on the status, issues, challenges and possible options regarding the implementation of transport and trade facilitation (TTF) measures in the GMS. This included updates on the implementation of the GMS Cross-Border Transport Agreement (CBTA), with particular focus on the customs transit system, exchange of traffic rights, and the pilot implementatation along the East-West Economic Corridor (EWEC). (A copy of his presentation is in Appendix 10.) Open Discussion 17. Mr. Apthorp commented that the customs transit system (CTS) does not work anywhere, and therefore to accelerate the implementation of the CBTA as a whole it might be necessary to de-link it from the CTS. Mr. Perdiguero noted that the CTS is really the most difficult part of the CBTA, but he informed the meeting that there is an ongoing assessment of the CTS and that after said assessment, the results will be presented for consideration by the private sector. He added that there may be need to hold more technical meetings, as against full-scale ones, to discuss specific issues on the CBTA (e.g., possible amendments to Protocol 1). 18. Mr. Pradeep Srivastava, Senior Regional Cooperation Specialist, Regional Cooperation and Country Coordination Division Southeast Asia Department, ADB, said that if there are specific issues to be discussed, such small meetings could be held, an example being the meeting held in June 2011 among Lao PDR, Thailand and Viet Nam on the the extension of the EWEC. He then asked Mr. Apthorp if he was aware of any case where the CTS is divorced from transport agreements. Mr. Apthorp replied that the usual case is that licensed brokers that are already recognized and guaranteed by customs authorities perform the functions that are intended to be provided by the CTS. Session 3-B. Briefing on the Establishment of a GMS Freight Transport Association (FRETA) 19. Mr Oudet Souvannavong, Secretary-General, GMS Business Forum briefed the meeting on a specific transport facilitation measure that is currently being pursued and led by the private sector, namely, the establishment of the GMS Freight Transport Association (FRETA). He presented the rationale and background of the FRETA, which was initiated at the Business and Investment Dialogue held at the 3rd GMS Summit in Vientiane in 2008; its proposed membership, which will include carriers, forwarders, and logistics firms operating in the GMS; its proposed objectives, terms of reference and activities. Among the the things that the FRETA wants to achieve is to give the private sector a voice in the design and implementation of TTF measures, for instance by institutionalizing its participation in the National Transport Facilitation Committees; to ensure that trans-shipment, if could not be avoided, takes place in a safe, orderly and well-managed manner; and to help in accelerating the implementation of the CBTA. (A copy of his presentation is in Appendix 11.)

V. Wrap Up of First Day Sessions

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20. Co-Chair wrapped up the first day sessions, as follows: • The country reports on their respective priority transport projects showed that much

progress is being achieved; it is noteworthy that most of the additional projects being proposed are in Myanmar.

• The discussion on the RCO showed that There is a need for such a coordination body for railways. There has been a lot of international experience from which efforts to set up the RCO can benefit, and the useful insights presented by the representatives from UIC and Toll Royal in this regard are much appreciated. Suggestions from countries on an appropriate and interesting name for the office would be appreciated; further comments from the countries on the paper on the issues and proposed plans for the office are encouraged.

• We have gained a better understanding of the issues and problems regarding transport and trade facilitation efforts in the GMS. Certain difficult issues have also been raised, such as the possibility of separating the CTS from the CBTA; this will need further consideration.

• We have been made aware of an important and practical measure that is being pursued, namely, the establishment of the FRETA.

Day 2 Proceedings: 15 September 2011

VI. Session 4. Briefings on Transport-Related Initiatives in Other GMS Sectors Session 4-A: Presentations on Road Asset Management in the GMS, with Focus on Axle Load Control 21. Mr. Shihiru Date, Senior Transport Specialist, Transport and Communications Division, Southeast Asia Department, ADB gave an overview presentation on road asset management, with particular focus on axle load control, including its basic principles and theoretical underpinnings, practices and trends, and key challenges. (A copy of his presentation is in Appendix 12). 22. Mr. Pheng Sovicheano, Deputy Director General, Ministry of Public Works and Transport of Cambodia, gave apresentation on the experience of the National Comprehensive Axle Overload Control Program, which is the program that has been addressing the problem of overloading along Cambodia’s national and provincial roads since 2007. (A copy of his presentation is in Appendix 13). 23. Mr. Chan Darong, Director General, General Directorate for Technical Affairs, Ministry of Rural Development of Cambodia presented the initiatives and innovations on axle load control along the rural roads of Cambodia, including the legal, regulatory and institutional framework as well as the innovative approaches and mechanisms, such as the use of portable weighing scales, procedures and tools that ensure transparency, and various means to enhance public awareness of the program. (A copy of his presentation is in Appendix 14). 24. Mr. Boualith Pathoumthong, Deputy Director General, Department of Transport, Ministry of Public Works and Transport of Lao PDR presented the experience on axle load control in his country, including the early programs implemented in the 1990s that had little success up to the current program being implemented by the Transport Control Division, which is being supported by the World Bank under the Road Maintenance Project (1 and 2). He discussed the achievements as well as the remaining problems and challenges of the program. (A copy of his presentation is in Appendix 15).

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25. Ms. Nguyen Nguyet Nga, International Cooperation Department, Ministry of Transport of Viet Nam presented (on behalf of Mr. Nguyen Duc Thang, Deputy Director General, Directorates for Roads) the Viet Nam experience in road asset management in general and in axle load control in particular. This includes the establishment of axle load control stations in 1993, the suspension of their operations in 2003-2007, and the renewed efforts under the Master Plan of Road Transport, including the pilot implementation of two axle load control stations, one along NH1 in Dong Nai province and the other along NH18 in Quang Ninh province. (A copy of her presentation is in Appendix 16). Open Discussion 26. In response to a question from Mr. Apthorp on how the authorities in the countries deal with corruption in the implementation of rules against overloading, Mr. Sovicheano replied that in Cambodia they are instituting measures such as installing equipment that record all details of transactions at axle load stations to ensure transparency, providing incentives to dissuade officials/staff from committing acts of corruption, and establishing a complaints mechanism. In addition, it is important to determine the most strategic locations for the weighing stations so that trucks could not just change their routes to avoid them. In cases where portable weighing scales are used, it should not be pre-announced where they will be installed. 27. Viet Nam stated that in the case of their country, the authorities have recognized the existence of corruption and in fact have suspended the operation of their axle load stations in 2003-2007 because of this. They said corruption works in two ways in bringing harm to society as a whole, by increasing transport costs due to bribes and by damaging the roads. In their current piloting of their new axload control system, they are introducing measures to prevent corruption. Thailand informed that in most of the main roads in their country weight control stations have been set up and commented that a distinction should be made between what is acceptable axle load for bridge structures as against road pavements, as the former are more weight sensitive. 28.The meeting also called attention to the need to address the differences in the axle load limits across countries (e.g., 9.1 tons in Lao PDR, 11 tons in Thailand and Viet Nam, 10 tons in Cambodia). Session 4-B: Presentation on the Initiative to Develop Carbon-Neutral Transport Corridors (CNTC) in the GMS 29. Ms. Naeeda Crishna of the GMS Environment Operations Center, gave a presentation on the Initiative to Develop Carbon-Neutral Transport Corridors in the GMS, a new initiative that is being developed for initial application along the East-West Economic Corridor (EWEC). The initiative focuses on possible interventions in transport and in forestry to reduce and control carbon/greenhouse gas emmissions toward mitigating the harmful impact of the development of economic corridors on the environment. (A copy of her presentation is in Appendix 17). Open Discussion 30. Lao PDR informed that under their Clean Development Mechanism (CDM), incentives are provided to trucking companies for them to purchase and use new trucks; for instance, they are given credits for the fuel and carbon emissions that they save. Mr. Apthorp commented that: shipping freight by air may actually produce more carbon emmissions than shipping them by trucks; as the EWEC becomes more efficient, it will attract more traffic and therefore more

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emmissions; and the use of new trucks benefits both the freight transport operators and society as a whole.

VII. Session 5: Statements/Updates from Other Development Partners 31. The Chair acknowledged the important role that development partners play in the GMS transport sector, as they provide financing assistance to priority subregional transport infrastructure projects and also increasingly share their experience, knowledge and expertise in establishing and implementing effective software toward greater efficiency and beneficial impact of sector initiatives. 32. Mr. Fedor Kormilitsyn, Economic Affairs Officer, Transport Facilitation and Logistics Section, Transport Division, UN Economic and Social Commission for Asia and the Pacific (UNESCAP) presented his organization’s initiatives in the transport sector in the region, and focused particularly on the proposed Regional Strategic Framework for Road Transport (RSF). The RSF, which was first discussed at the UNESCAP Regional Meeting on Cooperation for Facilitation of International Road Transport ( Beijing, PRC, 30 May - 1 June 2011) and targeted for adoption at the UNESCAP Ministerial Conference on Transport (Bangkok, 14-18 November 2011), aims to provide long-term common targets and strategy for member countries and their development partners toward coordinating and increasing the effectiveness of their transport facilitation measures as well as help in setting long-term common targets for essential issues, such as road permits/traffic rights, visas, vehicle insurance, etc. (A copy of his presentation is in Appendix 18). 33. Ms. Yoko Hattori, Japan International Cooperation Agency (JICA)- Laos, expressed appreciation for the progress that has been achieved in the subregion on both hardware and software aspects of transport development. She stated that the Government of Japan has always endeavored to provide support for the sector. Among the projects it has assisted are the Second International Mekong Bridge between Lao PDR and Thailand; and the axle control and road maintenance program in Lao PDR, including assistance for capacity development up to 2016, for which the Government of Lao PDR has shown strong ownership. She expressed hope that this assistance will help in accelerating economic development in the subregion.

VIII. Session 6: Briefing on the Proposed New Strategic Framework and Preparation of a Supporting Regional Master Plan

34. Mr. Pradeep Srivastava, Senior Regional Cooperation Specialist, Regional Cooperation and Country Coordination Division, Southeast Asia Department, ADB, briefed the Forum on the new GMS Strategic Framework covering the period 2012-2022 (the new SF), the draft of which was reviewed by the 17th GMS Ministerial Conference (Phnom Penh, Cambodia, 4-6 August 2011) and the final version being readied for endorsement by the 4th GMS Summit (Nay Pyi Taw, Myanmar, December 2011). The new SF is geared toward addressing the new and emerging issues, threats and challenges in the coming decade and to ensure the long-term sustainablity of the GMS Program through the development and implementation of a second generation of responsive and innovative interventions. Mr. Srivastava also presented a proposed results framework for the GMS transport sector for consideration and further development by the Forum, outlining the subregional bodies and groups involved, the possible interventions, their expected outputs, outcomes, and overall impact. He also apprised the meeting on the forthcoming efforts to prepare a regional master plan (RMP) to support the implementation of the new SF, outlining the various steps toward the completion of the RMP,

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which is targeted for presentation to the next GMS Ministerial Conference that will likely be held toward the end of 2012. (A copy of his presentation is in Appendix 19).

IX. Other Matters 35. In line with the tradition of rotating the venue of the STF among the GMS members according to the alphabetical order of country names, the Myanmar delegation was requested to make appropriate consultations with their authorities for the holding of the Sixteenth Meeting of the GMS Subregional Transport Forum in Myanmar in 2012, and to advise ADB of the outcome as soon as possible.

X. Closing 36. The Chair and Co-Chair noted that the meeting has been very successful, raising the Forum’s general awareness on developments and trends both within the transport sector and in a wide array of fields that have a bearing on the sector. It also brought to the fore key issues that need to be addressed to further advance transport cooperation and development in the GMS. They thanked the participants for their active and fruitful participation in the meeting. The delegations from the GMS countries and the ADB thanked the host, the Government of Lao PDR, for the hospitality accorded to the participants as well as the excellent arrangements for the Fifteenth Meeting of the Subregional Transport Forum. The Chair formally closed the meeting.

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Fifteenth Meeting of the GMS Subregional Transport Forum

Vientiane, Lao PDR 14-15 September 2011

PROVISIONAL PROGRAM AND AGENDA

Proposed Meeting Theme:

Building and Sustaining 15 Years of Transport Cooperation in the GMS

Objectives:

1. To review and monitor the progress on priority GMS transport projects; 2. To review the draft report of the Regional TA for Planning the GMS Railway Coordination

Office;

3. To apprise the Forum on key initiatives in other related sectors and areas of cooperation, related to the transport sector.

First Day

0830-0900 Registration 0900-0930 Opening Session Welcome Remarks

H. E. Mr. Sommad Pholsena Minister Ministry of Public Works and Transport, Lao PDR

Opening Remarks Chair, Mr. Math Sounmala

Director General, Department of Planning and Cooperation Ministry of Public Works and Transport, Lao PDR

Co-Chair, Mr. James Lynch

Director, Transport and Communications Division, Southeast Asia Department, Asian Development Bank (ADB)

0930-0945 Group Photo Session 0945-1230 Session 1. Status Reports on Priority Transport Projects

[The session provides the venue for monitoring the progress on the Transport Sector projects in the Vientiane Plan of Action (VPOA) for GMS Development (2008-2012. It aims to: (i) obtain updates on actual developments/ status of the various action items/projects contained in the VPOA pertaining to each country; and (ii) apprise the STF on any issues, concerns, and needed actions regarding the

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projects.] Presentor: Each Country Delegation [Twenty-five (25) minutes will be allotted for each country presentation.]

0945-1045 Presentations by: Cambodia and the People’s Republic of China

1045-1100 Coffee/tea Break

1100-1230 Presentations by: Lao People’s Democratic Republic, Myanmar,

Thailand, Viet Nam

1230-1400 Lunch 1400-1615

Session 2. Proposed GMS Railway Coordination Office (RCO)

1400-1415 (2-A): Background on the Issues and Rationale for the Proposed establishment of the RCO Presentor: Mr. Peter Broch Senior Transport Economist Transport and Communications Division Southeast Asia Department, ADB

1415-1500 (2-B): Presentation on the Proposed Plans and Key Issues Regarding the RCO Presentor: Mr. W. Gregory Wood Consultant Regional TA for Planning the RCO

1500-1515

1515-1545

Reactions from Discussants:

1. Mr. Mukul Mathur International Union of Railways (UIC)

2. Mr. David Kerr Chief Executive Officer Toll Royal Railway Open Discussion

1545-1600

Coffee/tea Break

1600-1615

Summary of Agreements on the Proposed Plans for the RCO and Next Steps Mr. Peter Broch Transport and Communications Division Southeast Asia Department, ADB

1615-1715 Session 3. Briefings on Transport and Trade Facilitation

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Initiatives in the GMS

1615-1645 (3-A): Briefing on the Program of Action on Transport and Trade Facilitation (TTF) in the GMS Presentors: Mr. Alfredo Perdiguero Mr. Pradeep Srivastava Principal Economist Thailand Resident Mission ADB

Senior Regional Cooperation Specialist Regional Cooperation and Country Coordination Division Southeast Asia Department, ADB

Open Discussion

1645-1715 (3-B) Briefing on the Establishment of a GMS Freight Transport Association (FRETA) Presentor: Mr. Oudet Souvannavong, Secretary-General, GMS Business Forum Open Discussion

1715-1745 Wrap Up of First Day Sessions By Co-Chairs

1900-2100 Dinner (Hosted by ADB) Venue: Settha Palace Hotel, Vientiane

Second Day 0830-1030 Session 4. Briefings on Transport-Related Initiatives in Other

GMS Sectors

0830-1000 (4-A): Presentations on Road Asset Management in the GMS, with Focus on Axle Load Control [The session will brief the meeting on practices/ measures to address the problem of overloading in GMS countries, including the experience of Cambodia, Lao, and Viet Nam. It will also look at GMS requirements for a future unified system of regulations and practices.] I. Background on Trends and Practices Facilitator: Mr. Shihiru Date Senior Transport Specialist Transport and Communications Division

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Southeast Asia Department, ADB II. Country Experiences in Road Asset Management: (i) Cambodia

(a) Axle load control in Cambodia: National and Provincial Roads

Presentor: Mr. Pheng Sovicheano Deputy Director General Ministry of Public Works and Transport.

(b) Innovative measures in axle load control for rural roads in Cambodia Presentor: H.E. Chan Darong Director General Ministry of Rural Development (ii) Lao PDR

Presentor: Mr. Boualith Pathoumthong Deputy Director General Department of Transport Ministry of Public Works and Transport (iii) Viet Nam Presentor: Mr. Nguyen Duc Thang Deputy Director General, Directorates for Roads, Viet Nam Open Discussion

1000-1015 Coffee/tea Break

1015-1045 (4-B): Presentation on the Initiative to Develop Carbon-Neutral

Transport Corridors (CNTC) in the GMS Presentor: Ms. Naeeda Crishna GMS Environment Operations Center Open Discussion

1045-1115 Session 5: Statements/Updates from Other Development

Partners Moderated by Co-Chairs

1115-1145 Session 6: Briefing on the Proposed New Strategic Framework and Preparation of a Supporting Regional Master Plan

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Presentor: Mr. Pradeep Srivastava Senior regional Cooperation Specialist Regional Cooperation and Country Coordination Division Southeast Asia Department, ADB

1145-1200 Session 7. Other Matters

1200-1215 Wrap Up of the Meeting

1215-1330 Lunch 1400-1800 Site Visit

(TBC)

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GREATER MEKONG SUBREGION 15TH MEETING OF THE SUBREGIONAL TRANSPORT FORUM

Vientiane, Lao PDR 14-15 September 2011

LIST OF PARTICIPANTS

CAMBODIA 1. Mr. Chan Darong (H.E.) (Presentor) Director General

General Directorate for Technical Affairs Ministry of Rural Development Tel: 855-12-599599 Fax: 855-23-885746 Email: [email protected] 2. Mr. Pheng Sovicheano Deputy Director General of Public Works Ministry of Public Works and Transport Tel. 855-12-900760 Fax: 855-23-724595 Email: [email protected] 3. Mr. Hong Sinara (Head of Delegation) Deputy Director General

General Department of Public Works Ministry of Public Works and Transport

Tel/Fax: 855-23-723028 / 855-23-427397/597 Email: [email protected]

4. Mr. Soeung Sokong Director of Planning Department Ministry of Public Works and Transport Tel: 855-12972027

Email: [email protected] 5. Mr. Suon Vanhong Deputy Director of Land Transport Department

Ministry of Public Works and Transport Tel: 855 23-864-098 / 12-844-098

Fax: 855 23 864 098 Email: [email protected] 6. Mr. Ouk Ourk

Deputy Director, Railway Department Ministry of Public Works and Transport Tel: 855-12-879-926 Fax: 855-23-723028 Email: [email protected]

PEOPLE’S REPUBLIC OF CHINA 7. Mr. Li Guoliang Projector Officer Ministry of Transport, PRC

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Tel: 86-10-65292211 Fax: 86-10-65292248 Mobile: 18801154599 Email: [email protected] 8. Mr. Ge Fengliang Projector Officer Ministry of Railways 9. Mr. Wang Conggui Associate Counsel CAAC Soutwest Regional Administration LAO PDR 10. Mr. Sommad Pholsena (Head of Delegation) Minister Ministry of Public Works and Transport Tel: 856-21-412 251 Fax: 856-21-412 859 Email: [email protected] 11. Mr. Math Sounmala (Chair) Director General Department of Planning and Cooperation Ministry of Public Works and Transport Fax: 856-21-412265 Email: [email protected] 12. Mr. Viengsavath Siphandone Director General Department of Transport Ministry of Public Works and Transport Tel: 856-21-412272 Fax: 856-21-415563 Email: [email protected] / [email protected] 13. Mr. Sompong Pholsena Deputy Director Railway Authority 14. Mr. Somsana Rassapong Director Railway Management 15. Mr. Boualith Pathoumthong (Presentor)

Deputy Director General Department of Transport Tel. 021-412272 Fax: 021-415563 Email: [email protected] 16. Mr. Heuan Chanphana

Assistant Head GMS National Secretariat

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Tel: 856 21 243701 Fax: 856 21 243700 Email: [email protected]

17. Mr. Bounta Onnavong Acting Director

Division of Transport Techniques & Environment Department of Transport Ministry of Public Works and Transport Tel: 021-412264 Fax: 021-453187 Mob: 020-55466466 E-mail: [email protected]

18. Mr. Vilayphanh Sayavong

Deputy Director, Land Division Department of Transport, MPWT Tel: 856 21 412287 Fax: 856 21 415563 Email: [email protected] 19. Mr. Yakua Lopangkao

Director General Department of Civil Aviation, MPWT

20. Mr. Phanthaphap Phounsavath Land Division, DOT 21. Mr. Viengsomath Sounmala DOT 22. Ms. Vanhdavone Kittavong DOT 23. Ms. Souksavanh Phaipanya

DOT 24. Ms. Vena Ngonvorarath

GMS Consultant

25. Phetsamone Viraphanth

26. Mr. Laokham Sompheth

MYANMAR 27. Mr. Aung Myint Hlaing (Head of Delegation) Deputy General Manager (Passenger) Myanma Railways Ministry of Rail Transportation Tel: 95-67-77081 / 95-98-300343 Fax: 95-67-77118 Email: [email protected]

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28. Mr. Thant Sin Lwin Director Central Equipment Statistics and Inspection Department Ministry of National Planning and Economic Development Tel: 95-67-406167 / 95-09-8304272 Fax: 96 67 406077 29. Mr. Maung Maung Naing Deputy Director Directorate of Water Resources and Improvement of River System Ministry of Transport Tel: 95-1-292840 Fax: 95-1-290230 Email: [email protected] THAILAND 30. Ms. Jatuporn Wongta Chief of Regional and Neighboring-Countries Cooperation Group International Cooperation Bureau Ministry of Transport Tel: 66-2-2833075 Fax: 66-2-2814829 Email: [email protected] 31. Mr. Chat Phaikaew Transport Technical Officer International Cooperation Bureau

Ministry of Transport, Tel. 66 2 280 3468 Fax. 66 2 280 1714 Email: [email protected] and [email protected]

32. Mr. Thanadech Asipong Transport Technical Officer International Cooperation Bureau Department of Highways 33. Dr. Siriphan Jitprasithsiri Director of International Highways Development Division Bureau of International Highway Cooperation Department of Highways Tel: 662 644-4441 Fax: 662 354 6901 Email: [email protected] Department of Land Transport 34. Ms. Nonglak Wongsuksiridacha Director of International Transport Affairs Division Department of Land Transport Tel: 66-22718407 Fax: 66-22718409 Email: [email protected]

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35. Ms. Phacharang Praprutitum Transport Technical Officer Planning Division Department of Land Transport

Tel/Fax: 662-271-8409 Email: [email protected] State Railway of Thailand 36. Mr. Suprapas Senivongse na Ayudhaya Assistant Governor I State Railway of Thailand Tel: 662 220 4182 Fax: 662 225 3801 Email: [email protected] Ministry of Foreign Affairs 37. Ms. Nitivadee Manitkul

Director of Economic Relations and Cooperation Department of International Economic Affairs Ministry of Foreign Affairs Tel: 084-751-5615 / 662 643 5239 Fax: 662-6435040 Email: [email protected] National Economic and Social Development Board 38. Mrs. Phavina Assawamaneekul

Policy and Plan Analyst

39. Ms. Chompunuch Ramanvongse Policy and Plan Analyst

40. Ms. Pipong Phimphachama VIET NAM 41. Mr. Tran Phi Thuong

Deputy Director General Vietnam Railway Department, MOT

42. Mr. Nguyen Ngoc Thuyen (Head of Delegation)

Deputy Director General of ICD Ministry of Transport Tel: 84-4-39412700 Fax: 84-4-39421436 Email: [email protected] and [email protected]

43. Mr. Nguyen Duc Thang

Deputy Director General Directorates for Roads of Vietnam

Ministry of Transport Tel: 84 4 38571647 Fax: 84 4 38571440 Email: c/o: [email protected]

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44. Ms. Nguyen Thi Nguyet Nga Deputy Director Department of Science & Technology, Environment and International Cooperation Directorates for Roads of Vietnam Ministry of Transport Fax: 84 4 38 571 440 Tel: 84 4 38 571 647 Email: [email protected] and [email protected]

45. Mr. Luu Manh Ha Deputy Head of Transport Division Viet Nam Railway Tel: 84 4 39426334 Fax: 84 4 394266620

46. Mr. Le Duc Trung Official, Department of International Cooperation Ministry of Transport Tel: 84 4 3942 3417 Fax: 84 4 3942 1436 Mob: 84 986 986 818 Email: [email protected] / [email protected]

AUSAID 47. Mr. Michael Wilson

Minister-Counsellor for Mekong and Regional Hanoi Tel: 84 4 3774 0106 Fax: 84 4 3831 7 Email: [email protected]

48. Mr. Mark Barrett Tel: 61 2 6206 4623 Fax: 61-2-6206 4870 Email: [email protected] 49. Mr. Alexander Marks Tel: 856 (0) 21 353 800 x 144 Fax: 856 (0) 21 353 831 Email: [email protected] 50. Mr. Monyrath Nuth JICA 51. Yoko Hattori JICA, Laos Tel: 856-21-241100, 21-241095-9 Fax: 856-21-241101-2 Email: [email protected] 52. Noriyuko Mori Planning Advisor to Cabinet, MPWT (JICA Expert) Email: [email protected]

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53. Masahiko Matsumoto First Secretary, Embassy of Japan-Laos

UNESCAP 54. Mr. Fedor Kormilitsyn (Presentor) Economic Affairs Officer Transport Facilitation and Logistics Section Transport Division Economic and Social Commission for Asia and the Pacific Bangkok, Thailand Tel: 66-2-288 2496 Fax: 66-2-288-1020 Email: [email protected] UIC 55. Mr. Mukul Mathur Head - Asia Regional Unit International Union of Railways Fax: 91 11 26738542 Email: [email protected] GMS-Business Forum 56. Mr. Oudet Souvannavong (Presentor) Secretary General GMS Business Forum Tel: 856 21 720 437 Fax: 856 21 720 438 Email: [email protected] 57. Mr. David Kerr (Presentor) Chief Executive Officer Toll Royal Railway Tel: 855-23-992379 Mobile: 855-77-777843 / 614-01-008556 Email: [email protected] 58. Mr. Paul F. Apthorp

GMS-BF Board Member from TNT Worldwide Express Email: [email protected]

59. Mr. Khamla Sayavong Head of Secretariat of GMS-Business Forum (GMS-BF) Tel: 856-21 720438 Fax: 856-21 720437 Email: [email protected]

World Bank 60. Mr. Sombath Southivong

Senior Infrastructure Specialist The World Bank Tel: 856 21 45 00 10 ext. 6228 Fax: 856 21 41 42 10 Email: [email protected]

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GMS Environment Operations Center 61. Naeeda Crishna

Carbon Footprint Specialist GMS Environment Operations Center Tel: 66 2 207 4423 Fax: 66 2 207 4400 Email: [email protected]

CONSULTANT 62. Mr. Gregory Wood (Presentor) Mobile: 01244264481 Email: [email protected] ADB 63. Mr. James P. Lynch Director, Transport and Communications Division Southeast Asia Department 64. Mr. Peter Broch Senior Transport Economist 65. Mr. Shihiru Date Senior Transport Specialist 66. Mr. Antoine Kunth Infrastructure Specialist 67. Mr. Alfredo Perdiguero Principal Economist 68. Mr. Xiaoxin Chen Transport Specialist 69. Ms. Teresa Mella Operations Officer 70. Mr. Rodrigo Castelo Consultant 71. Pradeep Srivastava Senior Regional Cooperation Specialist Regional Cooperation and Country Coordination Division 72. Phomma Chanthirath Senior Project Officer (Infrastructure), LRM 73. Ms. Marilou Hemady-Reyes Senior Operations Assistant

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Welcome Statement Delivered by H.E. Mr. Sommad PHOLSENA Minister of Public Works and Transport, Lao PDR

15th GMS Subregional Transport Forum 14-15 September 2011

Lao Plaza Hotel, Vientiane, Lao PDR -------------------------------------------------------------------------------

- Mr. James Lynch, Director of Infrastructure and Urban Development Division, Southeast Asia Department, Asian Development Bank (ADB);

- Honorable Delegates from ADB and Transport Sectors of Greater Mekong Subregion Countries;

- Representatives from Development Partners and International Agencies; - Distinguished guests, Ladies and Gentlemen; - Sabaidee and Good Morning!

It is my great honor and pleasure having an opportunity on behalf of the Ministry of Public Works and Transport (MPWT) of the Lao PDR, as a host of the Fifteenth Subregional Transport Forum (15th STF) to extend our warm welcome to all of you to Vientiane and Lao PDR. As you may be aware Lao PDR is one of the most active countries participating in the Greater Suregional Mekong (GMS) Economic Cooperation Program particularly in transport sector. Since participating, we have progressed quite satisfactorily both in number of transport corridors established crossing Lao territories as well as the number of projects funded by the Asian Development Bank (ADB). In this regards, I would like to take this opportunity on behalf of the Lao people and government express our sincere appreciation to ADB for significantly contributing to the development of transport infrastructures in our country. Progress in developing the economic corridors will constitute a key indicator of the success of the GMS Economic Cooperation Program.

With the Ninth Congress of the Lao People’s Revolution Party successfully

concluded, the Lao Government is now actively translating the resolutions into strategies, plans and projects, and sets out very important directives and measures to guide every economic and social sectors to vigorously focus their attention in a breakthrough manner how to realize and meet the people desire and needs, in particular to gradually eradicate poverty, and very specifically to meet MDG. In response to the Government’s directives and measures, MPWT has focused its development plan accordingly, and the emphasis to the development of the transport infrastructure still remains since the efficient and reliable transport system helps to create a favorable condition for sustainable economic growth and poverty reduction, as well as environment protection and regional integration. In this regard, the Ministry’s main focus is to improve road transport, since this mode is the dominant mode of all transport and very critical to the national socio-economic development of

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the Lao PDR. With the tropical storms recently hit our country and the region that causes severely damages to the transport infrastructures becomes new challenge for us in fighting with the natural disasters to achieve sustainable transport infrastructure development.

Besides the hard infrastructure development, Lao government has been trying hard to work on legal instruments to fully utilize the transport infrastructures. We have so far entered into many bilateral and multilateral transport agreements with most of the countries in the region including the GMS Cross Border Transport Agreement (CBTA). But in practice only those bilateral ones have been successfully implemented while the GMS CBTA has achieved very little because after the showcase launched back in 2009 in Savannakhet transport business return to the same situation that is transshipment and Single Stop Inspection (SSI) could be further operated. We must confess that all these difficulties still existed because there are still lacking of proper transport facilities, soft infrastructures and some members have not gone through its domestic clearances to facilitate full implementation of the CBTA. In this regards, I would like encourage the Forum to discuss on how to develop route approach infrastructures and services to make the transport corridors more attractive transport covering trade, tourism, historical and cultural areas in different countries. One of the priority projects to be recommended is the Laos-Myanmar Mekong Bridge.

I would like to inform the Forum that we have recently completed the National

Transport Logistics Master Plan consisted of three major strategies namely Cargo Flow Integration; Business Stimulation and Market Expansion. Under this master plan, there are more than 20 projects still seeking for funding which ADB should kindly consider.

I learnt that, at this Forum, we will not only be discussing on road transport but will also discuss and seek possibility for establishing the Railway Coordination Office to find effective mechanisms on railway cooperation in the region. I hope in the future all other modes of transport will be included in order to speed transforming transport corridor into multimodal transport, logistics and finally economic corridors. Thus, I would like to urge the forum to discuss how to further sustain and strengthen the development of the economic corridors in the region by charting future action in infrastructure, logistics, transport facilitation in the economic corridors. May I request ADB to mobilize sufficient funds to help us in upgrading and completing all corridors as soon as possible to realize the regional connectivity and achieve economic integration. In conclusion, may I wish all the delegates and friends have a pleasant stay in Vientiane. I wish the Forum a great success. Thank you for your kind attention.  

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Opening Remarks By Mr. Math Sounmala

Director General, Department of Planning and Cooperation Ministry of Public Works and Transport, Lao PDR

and Chair Fourteenth Meeting of the GMS Subregional Transport Forum

Vientiane, Lao PDR, 14-15 September 2011

Distinguished Participants, Ladies and Gentlemen:

I am very happy and honored to chair this 15th Meeting of the GMS

Subregional Transport Forum. The Lao People’s Democratic Republic is

also very pleased to host this year’s STF meeting. I also hope that you

have a pleasant and enjoyable stay in our capital city, Vientiane.

Our meeting today and tomorrow is certainly a very important one. It

will determine the way forward for transport cooperation in the GMS.

The GMS Transport Forum is a key instrument for regional cooperation

and integration under the GMS Program. Putting aside my modesty, I

would like to say that I have been one of the earliest participants in this

Forum. I took part in its meetings when the first GMS cross-border

transport projects, such as the Phnom Penh-Ho Chi Minh City Highway

Project and the East-West Corridor Project were just being discussed, as

well as the Cross Border Transport Agreement, the first GMS transport

software project.

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The success of GMS transport sector cooperation is undisputed. Today,

the main GMS transport corridors are almost complete. We have also

made substantial progress in the software aspects, with the CBTA

already in operation at the borders between Lao PDR and Viet Nam at

Dansavanh-Lao Bao, and with Thailand at Mukdahan-Savannakhet.

Various agreements on exchange of traffic rights under the CBTA

framework among other pairs or groups of GMS countries are also

underway. We are also now looking into extending cooperation in other

modes of transport, particularly railways.

For Laos, developing transport links with our neighboring countries is

crucial. Being a landlocked country, this is the only way that we can

integrate with the regional and global economy. Certainly, the links that

have been built between us and our neighbors, for instance, through the

East-West Corridor, the North-South Corridor, and now also by rail with

Thailand, have certainly boosted the flow of people and trade across our

borders.

Despite the successes, however, transport cooperation in the GMS now

faces a lot of challenges. We have to act fast and decisively to address

them. We have to speed up the completion of the transport corridors, the

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development of multi-modal transport, and the implementation of the

CBTA and other transport facilitation measures. We must work harder to

transform the transport corridors into economic corridors. We also have

to address other important transport-related issues, such as road safety,

cross-border spread of communicable diseases, and, of course, climate

change.

Excellencies, Ladies and Gentlemen,

As we now enter this new and challenging decade, let us therefore

further strengthen our commitment not only to sustain transport

development in the GMS, but also to make transport a truly effective

means for reaching the overall goal of an integrated, prosperous, and

harmonious subregion.

Thank you for your kind attention.

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1

GMS Subregional Transport Forum STF

Building and Sustaining 15 Years of Transport Cooperation in the GMS

Beginnings of the STF

•  STF was first sector-specific GMS working body

•  An outcome of the 1993 transport sector study

•  Approved at 4th GMS Ministerial Conference in 1994

•  STF’s TOR: •  Technical coordination & project planning

•  Software & cross-border issues

•  Catalyzing financing and cofinancing

•  Training & human resource development

•  Information exchange & dissemination

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3

Transport and Overall GMS Strategy

• “3 Cs” • enhanced connectivity •  improved competitiveness • greater sense of community

•  infrastructure links and software •  integrating markets •  promoting trade and investment

•  GMS Road Network (1992)

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•  GMS Road Network (2010)

• GMS Road Network (2015―2020)

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7

ADB-assisted GMS Projects

(1992- June 2011)

No. of Financing (US $ millions)

Projects Total Cost ADB Government Cofinancing

All GMS Projects 55

13,850.6

4,987.7

4,311.5

4,551.5 Of Which:

Transport 34

11,788.8

4,418.4

4,127.7

3,242.7

8

New Challenges and Demands

•  Increased global competitiveness •  Need for greater multimodal & intermodal

capabilities •  Increased energy efficiency •  Climate change adaptation and mitigation •  Transform transport corridors into

economic corridors •  Coordination across multiple sectors &

emphasize software development

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9

Leveraging Success – New Generation of Transport Projects

•  Tremendous experience, goodwill and progress achieved over the years

•  Must strive to: • Forge new sector linkages • Widen stakeholder participation with

private sector, local authorities and communities

• Mobilize resources thru innovative channels •  New GMS Strategic Framework

10

GMS Railway Coordination Office

• Strategic Framework for Connecting GMS Railways recommended study of GMS Railway Coordination Office

•  First step toward long-term objective of an integrated GMS railway system

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11

STF-15 15th Meeting of the GMS Subregional

Transport Forum Building and Sustaining 15 Years of Transport Cooperation in the GMS

Vientiane, Lao PDR

14-15 September 2011

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14-15 September 2011 Vientiane, Lao PDR

15Th Meeting of GMS Sub-regional Transport Forum

Country Report Cambodia

The development vision of the Royal Government of Cambodia is to have reducing poverty by promoting sustainable economic growth and better governance. On going reform program is crucial for achieving higher economic growth, diversification from garments to other types of basic manu-facturing and development of tourism potential sector.

15th STF/GMS 2

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Further development of rural infrastructure will help rural and remote communities, which include the poor, facilitate market access and put essential services of the most needy. Improving the access of the poor to education and health services, improving the income earning potential, improving the quality of lives, those are crucial priorities of the Government.

15th STF/GMS 3

Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Cambodia 4 4 5.3 5.2 5 5.4 13.4 7.2 10.1 5 -1.5 6

GDP - real growth rate (%)

15th STF/GMS 4

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15th STF/GMS 5

Shortcut to GMS.lnk

15th STF/GMS 6

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1- GMS: Southern Coastal Corridor Project(2008-2014 ), Financed by ADB (loan $7 M); Australia (grant $8 M); Government of Cambodia ($3.7M) total 18.7M. �  Contract Signed on 20 May 2011 for Rehabilitation of

15.8 Km of NR33 (Kampong Trach-Prek Chak). �  Bids for Upgrading Cross Border Facility at Prek Chak/

Hatien (Cam/VN) was opened on 5 September 2011. Bid evaluation is on going.

�  Maintenance of 51 Km of NR33 (Kampot-Kg. Trach) in Design Stage

15th STF/GMS 7

◦  Bids are being issued for rehabilitation of 29 km of NR56A financed by ADB; Bid closing date is 15 September 2011. ◦  Bids are being issued for rehabilitation of 84 Km of

NR56B financed by EDCF; Bid closing date is 30 September 2011.

15th STF/GMS 8

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Japan grant-aid to Cambodia of $131M for the construction of: – Stage1: construction of 2 bridges of NR1

(completed in 2006). – Stage2: reconstruction of 43km of NR1 from Neak

Loeung to PK13 from Phnom Penh (completed). – Stage3: reconstruction of the 9,1 km section to

Phnom Penh PK 4, Completed. – Stage 4: from PK4 to Monivong Bridge (MOU on

project preparation signed on September 6, 2011). – Neak Loeung cable stayed Bridge is under

construction and expected to be finished in 2015.

15th STF/GMS 9

4- NR 78: from O Paong Moan to O Yadav ( Cam -VN) border is 191 km (Loan from Chinese $73.3 M, Loan from Viet Nam $22.12M):

◦  Section 1 going from O Paong Moan to Ban Lung is 124 km long, 2 lanes with DBST. ◦  Section 2 going from BanLung to O yadav with 70

km long, AC pavement with two lanes.

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•  Northern Sub-corridor : Siem Reap-Preah Vihear - Stung Treng-Rattanakiri-O Yadav [Cam] – Pleiku – Gia Lai further connection to Quy Nhon [VN Sea Port]/local investment 28 MUSD, Chinese loan 132MUSD. –  Section from Seam Reap to Koh Ker private

investment by 105 km (BOT Scheme), –  From Srayung Koh Ker- Tbeng Menchey 34km was

completed by using Chinese loan with DBST pavement.

– From Tbeng Meanchey- Chhep –Thala barivat to Stung Treng 143.4 km and the construction of upper Mekong bridge at Stung Treng, the civil work will be carried out by Chinese company.

15th STF/GMS 11

}  Rehabilitation of NR5 betwen Prek Kdam and Sisophon 337 km 201. ◦  Under survey by JICA team, will be completed in March

2012 ◦  Prek kdam – Thleamaom 130km ◦  Thleamaom-Battambang 68 km ◦  Battambang-Sisophon 68 km 2012-2017, loan

request from JICA •  Project widening 4 lance of NR5 from Phnom Penh

to Prek Kdam 30 km, 2012-2014 ($36M, Chinese loan).

15th STF/GMS 12

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}  Construction of New Container Terminal of Phnom Penh Autonomous Port (2010-2012), by Chinese Loan of $28.22 M ◦  Located along the Mekong River at30km from

Phnom Penh NR1. ◦  The design annual throughput of this port is

120,000TEUs.

15th STF/GMS 13

}  Total cost $141.6M (Original Project: $73.0M, Supplementary Financing $68.6M

}  Financed by: ADB $42.0M, OFID $13.0M, Gov. of Malaysia $2.8M (Grant) Cambodia Gov. $15.2M

}  Supplement Financing: ADB $42.0 Gov. Australia $21.5M (Grant), Gov. Cambodia $5.1M 

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A-Status of Implementation of Railway

•  Southern Line 266 km to Sea Port Terminal , will be completed at the end of July 2012.

•  Section from PPenh to Toukmeas about 120km was completed and operating by Toll Royal Railway.

•  The construction for Section from Toukmeas-Sihanoukville 143Km is on going and will be completed by 2012.

•  Northern Line 385 km(Phnom Penh-Poipet) will be

completed by 2013. •  Section Poipet – Sisophon of 48km is expected to be

completed in 2012: some works has been done such as: –  Mine clearing –  Leveling –  Embankment –  Culvert installation

15th STF/GMS 15

•  Section Sisophon-Phnom Penh (338Km): ◦  Detail measurement survey on resettlement is completed

and the civil work is in progress.

◦  Site inspection of structure (bridges and culverts), track, embankment and ballast on both railway lines is done.

◦  Railway connecting point between: ◦  Cambodia/ Thailand: The MPWT of Cambodia and State

Railway of Thailand continue to discuss for the reconstruction of the railway bridge at the border.

•  Cambodia/ Viet Nam: MPWT and MOT has signed the agreement of Railway connecting point at Trapeang Sre (Cambodia)/ Hoa Lue (Viet Nam).

15th STF/GMS 16

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Current Status of Railway Restructuring and Concession Agreement :

}  The TOR of the TA 4645-CAM was to advise and assist the RCG on all aspects of restructuring the railway and the successful creation and launch of the railway operator, including advice on structural reform. The TA started in January 2006 up to now, and was extended until January 31, 2011.

15th STF/GMS 17

•  In June 2006 the TA Consultant recommended to the RGC the urgent need for the RRC reform and advised the strategy for successful reform.

  •  On July 17, 2006 the RGC issued the Policy letter No 1997 MPWT on

Restructuring of the Railway in Cambodia. And on 12 September, 2007 the RGC issued Sub-Decree No 124 on Concession of the Royal Railway of Cambodia. The Policy and Sub-decree were the key legal frameworks for processing the privatization of the Royal Railway of Cambodia.

  •  On December 13, 2006 the RGC issued Sub-Decree No 119 on

establishment the Concession management Unit (CMU). (Later on it was changed to Concession management committee (CMC) under Sub-Decree No 124 dated September 12, 2007.) This committee had responsibilities for the procurement process, contract negotiation with successful bidder and managing the concession agreement.

  •  Following an international competitive bidding process, Toll Holding Ltd.

(Australia) was selected as the preferred bidder in November 2007.   •  Negotiations of Concession Agreement with the Toll Holdings Ltd.

Commences in January 2008 and were partially completed on October 15, 2008 with the signing of the main text of the concession agreement. Negotiations on many technical issues continued from then until final signing in June 2009.

15th STF/GMS 18

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•  On June 12, 2009 a Concession Agreement between the RGC (represented by the Ministers of Economy and Finance and Public Work and Transport) and Toll Cambodia Co. Ltd was signed.

•  The term of this agreement is for a period of 30 years. The RGC concedes to a private rail operator (Concessionaire) exclusive rights to operate and maintain existing and moveable assets (conceded asset).

•  Finally, the signed Railway Concession Agreement, on June 12, 2009 was declared to be effective as of October 22, 2009.

•  Under Sub-Decree No 163 ANK/BK dated October 01, 2009 the Railway Government of Cambodia decided to establish a Railway Department within the Ministry of Public Works and Transport. Among key responsibilities, this Department will take over the function of the CMC and responsibility for the assets and staff of RRC.

15th STF/GMS 19

}  On February 01, 2011, the Ministry of Public Works and Transport signed the contract of consultants’ services with CANARAIL Consultants Inc. to develop and strengthen the capacity of Railway Department. Now, the consultants’ services are in progress.

15th STF/GMS 20

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Programme objectives:

1.  Assist in the transformation of the CMC from an ad-hoc committee to a component unit of the Railway Department.

2.  Assist in developing the capacity of the Railway Department to carry out its functions, in particular developing the Department’s capacity to manage to the rehabilitation of the railway and to carry out the monitoring functions defined in the CA.

3.  Provide on-going assistance to the Department in building its relationship with Toll.

4.  Develop the scope and content of required training programs, deliver training to staff and assist the evaluation of the effectiveness of training.

5.  Assist in arranging study tours for selected staff at foreign railway institutions and entities.

15th STF/GMS 21

6.  Prepare manuals for the department’s operations, including safety monitoring, infrastructure and rolling stock inspection, international relations (for the rail links with Thailand and, in the longer term, Vietnam) and non-concession asset management.

7.  Assist in the development of the framework for the development and regulation of the rail network in Cambodia and in developing relationships with other countries in the Greater Mekong Sub-region (GMS) related to the rail sector.

8.  Assist the Department in the assessment of proposals for the development of other railway lines and, if necessary, in the drafting and negotiation of agreements.

9.  Undertake long term benefit monitoring, in collaboration with the Benefits and Outcomes Monitoring Consultant provided through a separate technical assistance.

15th STF/GMS 22

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48 Km Missing Link

264km Phnom Penh-Sihanouk Ville

105km Serei Saophoan SiemReap Propose new link

239km Siem Reap-SKun

Propose new link

255km Bat Doeng-Loch Nich

(Vietnam Border). Propose new link

338Km Phnom Penh-Sisophon

48Km Sisophon-Poipet

273km Snoul-Strung Treng to Laos Border. Propose new

link

Cambodian Railway Plan

Private ) Chinese_

Understudy

I-Viet Nam •  Agreed to increase quotas of commercial vehicles (Buses

and Trucks) from 150 to 300 vehicles in 2010. •  Had agreed 7 International Border Gates in total, which 5

were opened for cross border transport operation including:

•  1- Bavet - Moc Bai: 30 September 2006. •  2–Tpapeang Plong – Xa Mat : 30 September 2009 . •  3- Phnom Den- Tinh Bien : 05 October 2009. •  4- Prek Chak- Xa Xia : 07 October 2009. •  5- Trapeang Sre- Hoa Lue: 29 July 2011 •  The remaining Border Gate: Oyadav (Cam)- Le Thanh (VN)

along the Northern sub-corridor, both parties will be organize the opening ceremony in 2012.

15th STF/GMS 24

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II. Lao PDR •  Cambodia and Laos have Agreed to operate in total 40

quotas of trucks (exchange documents). •  Each country also agreed to have 5 routes for bus operation

and each route consist of 5 buses. •  Those routes are:

–  Phnom Penh – Pakse - Phnom Penh –  Phnom Penh - Vientiane - Phnom Penh –  Siem Reap – Pakse – Siem Reap –  Siem Reap – Vientiane – Siem Reap –  Stung Treng - Pakse – Stung Treng

•  Cambodia and Laos hold the opening ceremony for implementation of cross-border transport agreement at Trapeang Kriel / Nong Nokhien border gate on 9 April 2009.

•  Both parties also agreed to have new route connecting from Pakse - What Phu [Laos] / Preah Vihear – Siem Reap [Cambodia] via new border gate for tourism promotion.

15th STF/GMS 25

III. Thailand : Cambodia and Thailand signed the MOU of Poipet/Arranyaprathet on Road Transport Operation, which allowed for 40 quotas of each country. …

15th STF/GMS 26

Thank you for your kind attention

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Greater Mekong Subregion Economic Cooperation Program 14th Meeting of the GMS Subregional Transport Forum

Country Report

on Priority Transport Projects

The People’s Republic of China

Vientiane, Lao PDR 14-15 September 2011

Roads Railways

Airports Channel Improvement

Projects included in the Vientiane Plan of Action

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Ⅰ. Roads

1.North-South Economic Corridor International Mekong River Bridge

u  The Project ongoing u  MOU among PRC, Lao PDR and Thailand u  A 50-50 cost sharing between PRC and Thailand u  Detailed design Completed in June 2008 u  A grant from Thailand of about $1.2M u  Commenced in February 2010 & expected to be completed by 2012

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Longling

Ruili

2. Western Yunnan Roads Development Project II (Longling-Ruili)

l Estimated cost: 1678.9 million USD l Included in the ADB RCOBP for GMS

(for a loan of $ 250 M under the 2010 pipeline) and COBP for PRC

l Negotiating meeting on ADB loan ended &Agreement on loan signed in June, 2011

l The construction will commence by the end of 2011.

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l Total Length: 259.18 KM l Estimated cost: 2937 million

USD l Financed by PRC government l Commenced in December 2009 l 4 years period l 15% investment finished by Oct

2010

Lijiang

Dali

3.Dali-Lijiang Road Upgrading

n  Estimated cost: 1,554 million USD n  Financed by PRC government n  Implemented by two sections: Baise-Debao-

Jingxi section started on September 25, 2009; Jingxi to Longbang started in December 2010

4.Baise-Debao-Longbang Expressway

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Ø Estimated cost: 1,841 million USD Ø Total length: 180 KM Ø Financed by PRC government Ø To be started in 2011

5.Hechi-Baise Expressway

Hechi

Baise

Ø Estimated cost: 370 million USD Ø To be financed by PRC government Ø Commenced in April 2010 Ø To be completed by 2013

6.Fangcheng–Dongxing (54km)

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Ⅱ. Railways

l Implemented by 2 sections l The 133.6-KM section from Dali to Baoshan was

started in 2008 and is to be completed in 2013 with 45.4% of the total investment finished by the end of June, 2011.

l To be financed by the PRC Government l 939 million USD(for The 133.6-KM section from

Dali to Baoshan) l The section from Baoshan to Ruili is under

preliminary design.

1.Dali-Ruili Railway Line (PRC)

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2. Mengzhi-Hekou Railway Line (PRC)

Estimated Cost:1,300 Million USD and to be financed by PRC Government

Started at the end of 2009, with a total length of 141.4 KM and

To be completed in 2013;

32.3% of the total investment finished by the end of June, 2011

l Estimated cost:12,900 million USD l To be financed partly by ADB loan and the

rest by PRC Government l Feasibility study report has been

submitted to the National Development and Reform Committee.

3.Nanning-Kunming Railway Capacity Expansion (PRC)

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Ⅲ. Airports

p Estimated cost: 937 p To be financed by the PRC government p Feasibility study report has been

submitted to the National Development and Reform Committee.

p Planned to be Started in 2011 and completed in 2013

1.Nanning International Airport Improvement

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l  Estimated cost: 469 million USD

l  To be Financed by the PRCgovernment

l  Upgrading project for A380 type airplane started in September, 2008

l  Upgrading project for the new main building to be started in 2013 and completed in 2015

l  Preliminary feasibility study has been completed and is being examined for approval.

2. Guilin International Airport Improvement

Ⅳ. Channel Improvement

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Myanmar

Yunnan

Vietnam Laos

Thailand

Cambodia

Improvement and Maintenance of Navigation Channels along the Lancang-Mekong River

p The Quadripartite Agreement on Commercial Navigation on the Lancang-Mekong River signed by PRC, Lao PDR, Myanmar and Thailand in April 2000

p 10th Meeting of the Joint Committee on Coordination of Commercial Navigation (JCCCN) held last week in Yunnan, China

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The Upper MeKong River Navigation Channel Improvement Project conducted from 2002 to 2004 with a grant of $5M by PRC government

At the 12th Ministers’ Meeting of GMS Region, Asian Development Bank (ADB ) agreed to include Chinese government’s proposal for navigational cooperation

into its transport cooperation and work out a strategic planning for water transport.

ADB is expected to expedite this process.

Financial assistance from ADB under GMS framework needed for further improvement and maintenance of the navigation channel

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Thank you.

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Projects Included in the Vientiane Plan of Action for

GMS Development, 2008-2012

Bridge over Mekong betweenXiengkok and Kyainglap

including Access Road from Tarlay to Kyainglap

(Lao PDR and Myanmar)

* Construction of suspension bridge has been proposed

* Lao PDR & Myanmar are seeking financial assistance for Construction of the bridge.

* The access road from Tarlay- Kyainglap (Myanmar side) is under Construction

2. TRN . 024

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3. TRN . 038 Dawei Deep Sea Port and Road Link to Thailand.

KAWTHOUNG

DAWEI

MYEIK

MAWLAMYINE

YANGONYANGONPATHEIN

THANDWE

KYAUKPYU

SITTWE

KAWTHOUNG

DAWEI

MYEIK

MAWLAMYINE

YANGONYANGONPATHEIN

THANDWE

KYAUKPYU

SITTWEThai company has signed contract with

Myanmar Port Authority to develop the Dawei Deep Sea Port Project. The Project Development Agreement (PDA) has been approved in November 2010.

- After project Development Agreement, Soil boring work for soil Investigation in both sea and land.

- Hydrographic Survey & Land Survey works are still undertaking now.

- Consultants companies for port, road link and industrial estate need to study in project area in detail.

- May be end of this year, the design stage will be completed.

This project includes the following works

(1)  Development of a new deep sea port

(2)  Ship building and maintenance service facility

(3) Industrial estate

(4) Petrochemical complex

(5) Oil refinery

(6) Steel mill

(7) Hydropower project

(8) Road and railway link between Dawei and Bangkok

(9) Oil pipe line and etc

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v  The Project will be implemented under three phases

within ten years.

v  Dawei Deep Seaport, Industrial Estate and Road & Rail

Link to Thailand Construction Project is the first-ever

Special Economic Zone in Myanmar.

v  The 170 km each long motor road and railroad that will link D a w e i D e e p S e a p o r t t o Myanmar-Thai border will be built phase by phase. The road will reach GMS Southern Corridor that leads to Vung Tau and Quy Nhon of the Socialist Republic of Vietnam through Sisophon of Cambodia via Bangkok of Thailand.

v  The 220 meter-wide road includes an eight-lane highway t o g e t h e r w i t h r a i l r o a d , pedestrian lane, Local road, Union road and Traffic islands. Oil and Natural Gas pipelines will be laid in parallel wit motor road and railroad.

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4. TRN. 040

Improvement and Maintenance of Navigation Channels along the Lancang – Mekong River (PRC, Lao PDR, Myanmar, and Thailand)

The improvement of Khon Phi Laung Shoal was included in the navigation channel improvement project on the Upper Mekong River which was approved by the four countries and could be conducted as soon as the boundary demarcation between Laos and Thailand is completed.

R3 Tachileik-Kyaington-Mongla Road (256 km) (Myanmar)

(Along North-South Corridor)

Completed

Lashio-Muse (176 km) (Myanmar)

(Along Northern Corridor)

Completed

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1. TRN . 021

East – West Economic Corridor

Thinganyinaung - Kawkareik

(Myanmar)

Maesot

Kawkareik

Myawady Thingannyinaung

Myawady – Thingannyinaung Upgraded Portion

Upgrading of the first (18 km) section of Maesot / Myawady to Thingannyinaung, with grant aid of Thai Government, was completed in June, 2006.

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11

AH1 at Myawady

34 35

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13

A

C

B

Kawkareik

Myawady

Thingannyinaung

Thingannyinaung – Kawkareik New Alignment

Selected

This project involves construction on the new alignment between Thingannyinaung and Kawkareik.Detailed design was completed in 2008 with Thailand’s grant of about Baht 15 m.

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(b). China-Myanmar Rail link (Rueli-Muse-Lashio-Mandalay-Kyaukphyu)

Progress of Implementation - After signing MoU between Ministry of Rail Transportation of Myanmar and China Railway Engineering Corporation (CREC), a feasibility study for construction of new standard-gauge railway line from Rueli to Kyaukphyu (a deep sea port in the Bay of Bangal) was being conducted. Further negotiation between two sides will be proceeded for BOT concession agreement.

Indicative Time Line - Within 5 Years

Estimated Cost - 20 Billion USD

Sources and Status of Financing - BOT

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14-15 September 2011 Vientiane, Lao PDR

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Chiang Rai Mae Sai

Chiang Khong

Pha Yao

Lampang Uttaradit

Phitsanulok

Bangkok

Mae Sot

Tak

Sukhothai

Khon Kaen

Kalasin

Mukdaharn

Laem Chabang

Chachaengsao

Sa Kaeo Aranyaprathet

Rayong Chanthaburi Trat

North-South

East-West

Southern

R3: Chiang Rai - Kunming Road Improvement via Myanmar and Lao PDR

R2: Myanmar - Thailand - Lao PDR - Viet Nam (East - West Corridor) Project

R1: Bangkok - Phnom Penh - Ho Chi Minh City - Vung Tau Road Improvement Project

R10: Southern Coastal Corridor Project

GMS Road Projects in Thailand

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North – South Economic Corridor (R3)

in Thailand

Chiang Rai Mae Sai

Chiang Khong

Pha Yao

Lampang Uttaradit

Phitsanulok

Bangkok

Thailand – Lao PDR – PRC (R3E) Road • Bangkok – Chiang Rai (830 km) – 4-lane or more • Chiang Rai – Chiang Khong – 2-lane highway, Plan to (110 km) widen to 4-lane in next 5 years Bridge

• Mekong Bridge - TA (by ADB) completed at Chiang Khong - Thailand & PRC share the construction cost - Detailed design (DD) completed in June 2008 with a grant from Thailand.

- Construction period 2010 – 2012 Thailand – Myanmar – PRC (R3W) Road

• Bangkok – Mae Sai (890km) – 4-lane or more

• New Mae Sai Bypass (8km) – Completed (April 2007)

Bridge

• Second International Bridge – Completed (January 2006)

across Sai River

Thailand

Myanmar

Southern China

Chiang Rai

Keng Tong

Jinghong

Houayxay

Louang Namtha

Kunming

Muang Xai

Huai Kon

Yuxi

Yuanjiang

Pu’er

Simao

Mae Sai Tachilek

Louang Prabang

Mohan

R3E R3W

R3

R3W

R3E

Lao PDR

Dalua

R3 Chiang Rai - Kunming Road Project via Lao PDR and Myanmar Road R3E Thailand Chiang Rai – Chiang Khong – 2-lane highway, Plan to (110 km) widen to 4-lane in next 5 years

Lao PDR

Houayxay-Boten (228 km) – 2-lane highway PRC Mohan-Jinghong (240 km) – 2-lane or more Road R3W Thailand Chiang Rai – Mae Sai (60 km) – 4-lane highway Mae Sai Bypass (8 km) Myanmar Tachileik-Kyaington -Mongla (256 km) – 2-lane highway PRC

Daluo – Jinghong (130 km) – 2-lane highway Jinghong–Kunming (620 km) –Expressway 4-6 lanes

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7

Yangon

Pa-an

Mawalamyine Mywaddy Mae Sot

Tak Sukothai

Phitsanulok A. Chumpae

Khon Kaen

Kalasin Mukdaharn/

Savannaket

Seno

Maung Pin

Dansavan/ Lao Boa Dong Ha

Danang

The East-West Economic Corridor Project [Viet Nam - Lao PDR - Thailand – Myanmar]

Myanmar

Existing 2-lane Highways Upgraded 2-lane Highways Upgraded 4-lane Highways (335 km.) Under upgrading to 4-lane Highways (167.376 km.)

HAI VAN PASS TUNNEL

Mottama Bridge

Thailand

Cambodia

Lao PDR

Vietnam

Haivan Pass Tunnel

• Danang Port

2nd Friendship Bridge

A. Lomsak

Thanlwin Bridge

Nakhon Phnom-Khammouane Bridge

Mae Sot/Myawaddy -Thingannyinaung (Dawna Range) 17.35 km.

THAILAND

Completed in June 2006

Myawaddy/Mae Sot

Thingannyinaung – Kawkareik 28 km. - D/D completed in October 2008 - Construction budget approved, Exchange of Note under preparation between Thailand and Myanmar

Myawaddy

Kawkareik

Mae sot

Existing road

New Alignment

Foot of Dawna range

Thingannyinaung

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Siem Reap

Vung Tau

Ho Chi Min City

Bangkok Aranyaprathet

Southern Economic Corridor R1 : Bangkok - Phnom Penh - Ho Chi Min City - Vung Tau

9

Phnom Penh

Total Length 1,000 Km. • Thailand = 300 Km. • Cambodia = 570 Km. • Viet Nam = 140 Km.

Bangkok Aranyaprathet

Nakhon Nayok

304

304

305

33

33

Kabin Buri

Phanom Sarakham

Sa Keaw

359

Prachin Buri

Remark: 4 - lane Highways 2 - lane Highways Upgraded 4 - lane Highways Upgrading to 4 – lane Highways

Rangsit

Thailand Section: Bangkok - Aranyaprathet

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Bangkok

Laem Chabang

Rayong Chanthaburi Trat

4 lanes or more

Under widening to 4 - lane

Plan to widen to 4 lanes

2 lanes

Thailand

• Bangkok – Trat (290 km) - 4-lane highways

• Trat – Hat Lek (89 km) - Next 5-year widening plan

- 4-lane highways (18.1 km.)

- Under widening to 4 lanes

(14.625km.)

Cambodia

•  Koh Kong – Sre Amble (151 km) - Thailand’s assistance

+ 4 major bridges

(Construction of the road and the bridges completed

and officially opened on 14 May 2008)

Hat Lek

R10: Bangkok – Trat – Koh Kong – Sre Amble – Ca Mau

Nakhon Sawan

Bang Pa-In

Bangkok

Ang Thong

Sing Buri

Chai Nat

Uthai Thani

Northern Linkage

Bangkok

Chon Buri

Pattaya

Rayong Chanta Buri

Trat

ESB

Eastern Linkage

Pak Tho

Phetchaburi

Cha-am

Ban Pong Bangkok

Chon Buri

Samut Songkhram

Samut Sakhon

Southern Linkage

Road Development in Thailand Supporting to GMS Program

Remark:

4 - lane Highways Upgraded 8 - lane Highways

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Route Alternatives for SKRL Project

1. Singapore – Malaysia – Bangkok – Aranyaprathet – Cambodia – Vietnam – China

1

2. Singapore – Malaysia – Bangkok – Three Pagodas Pass – Myanmar – China

3. Singapore – Malaysia – Bangkok – Nong Khai – Lao PDR – Vietnam – China

4. Singapore – Malaysia – Bangkok – Nong Khai – Lao PDR – China

5. Singapore – Malaysia – Bangkok – Ubon Ratchathani – Lao PDR – Vietnam – China

6. Singapore – Malaysia – Bangkok – Bua Yai – Mukdaharn – Lao PDR – Vietnam - China

2

3

4

5 6

7

7. Singapore – Malaysia – Bangkok – Chiang Rai – Chiang Khong/Houy Sai – Lao PDR – China

Rail Transport

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3. Singapore – Malaysia – Bangkok – Nong Khai – Lao PDR – Vietnam – China

Nongkhai

Thanaleng

1. Thanaleng – Nongkhai 3.5 km. ( Funded by Thai Government : 30% grant and 70% soft loan) is completed and the opening ceremony was held on 5 March 2009.

2. Thanaleng-Vientiane Railway Extension : the detailed design work was completed in May 2010 (9 million baht granted by Government of Thailand). The estimated investment costs is 1,650 million baht approximately and now under consideration for assistance contract between NEDA of Thailand and LRA of Lao PDR.

Thailand – Lao PDR Railway link ::

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MIDDLE EAST, EUROPE,…

On-going Improvement/Development Project

SOUTH ASIA

JAPAN, CHINA PACIFIC, USA,…

49

Water Transport Chiang Saen Port

Dawei

Chiang Sean I Port

•  Completed construction in 2003 by Marine Department

•  Accommodate 8 vessels of 25-meter long simultaneously

•  Managed by the Port Authority of Thailand

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Chiang Sean Port

Chiang Saen II Port

Location of Chiang Sean II Port

Chiang Khong

Golden Triangle

R3A

Lao PDR

Myanmar

Flood way

Mekong River

Port Office Quay Wall

Birth with Ramp (S) Birth with Ramp (N) Flood Plain

Kok River

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Laem Chabang Port Operation Programme for Phase 2 Development (Phase II)

Stage Terminal Function Berth Length (m)

Operation Year

1 C3 Container Terminal 500 2004

2 C0 Passenger Terminal 400 2006

2 C1+C2 Container Terminal 700+500 2007

3 D1+D2+D3 Container Terminal 700+ 500+ 500 October 2011

The Development of Dawei Deep Seaport

•  Thai company and Myanmar Port Authority signed contract to develop the Dawei Deep Sea Port Project, PDA has been approved.

•  MOU between Thailand and Myanmar on the Development of Dawei Deep Seaport and Road link to Bangkok (signed on 19 May 2008 at Singapore).

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ChiangSaen ChiangKhong

MaeSai

ChiangRai

ChiangMai HuayKhon (Nan)

LuangPhabang

ChaingTung

Jinghong

Improvement and Maintenance of Navigation Channel along the Lancang-Mekong River

Myanmar PRC

LaoPDR

Thailand

Vietnam

•  Commercial Navigation Agreement signed on 20 April

2000 in Myanmar

•  Official inauguration on 6 June 2001 in PRC

•  The 9th JCCCN meeting during 10-11 August 2010 discussed possible alternatives to conduct survey on the need for improvement and maintenance of Lancang-Mekong River and all parties will report the outcomes of the domestic consultation on the proposed alternatives at the next JCCCN meeting.

•  The Emergency Plan to Handle and Coordinate the Navigation-related Unexpected Accidents on the Lancang-Mekong River among China, Laos, Myanmar and Thailand has been signed during the Sixteenth ASEAN Transport Ministers Meeting on November 2010 in Brunei.

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Promoting the GMS CBTA

Completed: •  2 Workshops for driving instructors on training for driving

on different sides of the road. •  2 Seminars to distribute GMS CBTA details to relevant

officials and Transport Operators .

Ongoing: •  1 Training local authorities that have duties relevant to

cross-border activities at border province. •  1 Seminar to promote the knowledge of GMS (Venue

TBC)

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Vietnam Country report STF 15, Vientiane, Laos

Presenter: Mr. Nguyen Ngoc Thuyen Deputy Director General Department of International Cooperation

14 September 2011

GMS Ha Noi – Lang Son Expressway project

•  130 km/4-6 lanes expressway •  2011-2013 •  $ 1.300 M •  To be co- financed by ADB

(900 M), EDCF (140 M) and the Government of Viet Nam (260 M);

•  The F/S of Ha Noi-Lang Son Expressway Project is being prepared by Consultants. Bid for detailed design is under preparation.

14 September 2011

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GMS: Ha Long-Mong Cai Expressway

•  144 km/4 lanes expressway •  $ 1.100M •  ADB consultants

recommended to delay the investment after 2015 when Hanoi – Haiphong Expressway completed.

•  ADB consultants completed final report on PPTA

14 September 2011

Second GMS Northern Transport Network Improvement Phase I : Luangprabang -Thanh Hoa.

•  2010-2016 •  $ 97,4 M •  To be financed by ADB

$ 75M, and Vietnamese government $22.4 M.

•  Loan Agreement is signed by 1st Quarter 2011; civil works will be commenced by 4th Quarter of 2011.

14 September 2011

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Ben luc – Long Thanh Expressway •  57,8 km/ 4 lanes expressway •  2010-2014 •  $ 1,608.0 M •  Co-financing by ADB, JICA and

the Government of Viet Nam. Amount to be financed by ADB of $636M, JICA 635 M and the Government of Viet Nam 337 M.

•  Project investment has been approved in October 2010.

•  Detail Design Contract was signed in November 2010;

•  Now project in land acquisition progress.

14 September 2011

Ho Chi Minh – Long Thanh – Dau Giay Expressway

•  55km/4 lanes expressway. •  2009 -2014 •  $992.17 M •  Co-financing by JICA $

516.5M, ADB $410.2M and counterpart funding from the Government of Viet Nam $5.7M

•  The construction work commenced in October 2009 and will be completed by the end of 2014.

14 September 2011

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GMS Southern Coastal Corridor Project (1st component ) •  2009-2014 •  $ 400M •  Financed by ADB (loan

$75 M); EDCF (Korea) $220 M; Australia ($ 25 M); and the Government of Viet Nam ($80 M).

•  For ADB & Australia’ funded components, civil works commenced by January 2011;

•  For 2 EDCF’ funded components (Korea) civil works will commence by 2st Quarter 2011;

14 September 2011

Central Mekong Delta Transport Connectivity Phase I •  2011-2015 •  $ 751 M: $130M

financed by the Australian Gov; $220M to be financed by ADB; $ 200 M to be financed by the Korean Gov; The rest $ 201 M will be financed by Vietnamese GoV.

•  As planned detailed design contract will be signed by June 2011

•  Construction work will be started by 2nd Quarter of 2012 and will be completed by 2015.

14 September 2011

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Bien Hoa – Vung Tau expressway Bien Hoa – Vung Tau expressway and widening NH51: length 69km, 6 lanes; commenced at the end of 2009 and will be completed in 2013

•  Total investment: $ 679.0 M •  The project is under BOT

scheme •  1st phase of the Project’s

has been carrying by a domestic corporations including Idico + BIDV+Song Da.

14 September 2011

Da Nang – Quang Ngai Expressway (chưa) •  130 Km 4 lanes expressway •  2011- 2014 •  $ 1.472M •  Co-financing from WB

632M, JICA 678M and the Government of Viet Nam 162M.

•  F/S has been approved in Sep. 2010;

•  Project in land acquisition progress

14 September 2011

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Country report of Viet Nam 15th Meeting of the GMS

Sub-regional Transport Forum 14-15 September 2011

Presenter: Mr. Nguyen Ngoc Thuyen Deputy Director General Department of International Cooperation

14 September 2011 1

Background information on Existing railway

•  Railway operates over 2,600 route-km, comprising seven main lines and several branch lines.

•  Network is all of single track with 1,000mm gauge (85.5%), 1,435 mm gauge and dual-gauge sections.

•  VR has two divisions: Transport and Infrastructure

•  VR is an independent SOE under the government

14 September 2011 2

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Issues •  Lack of market orientation •  Low utilazation of assets •  Huge backlog of

infrastructure maintenance •  Lack of modern business

tools •  Inadequate financial/

performance agreement between railway and the government

14 September 2011 3

Master plan up to 2020 1. Development of railway transport: •  Until 2020: Railway transportation should account for 13% in terms of the

demand on passenger transport and 14% in terms of the demand on goods transport.

2. Infrastructure development

Until 2020: Completing the improvement and upgrading the existing railway network to gain the standardized national railway Grade 1; completing the linkage of railways with international ports such as Cai Lan, Lach Huyen, Van Phong, Cai Mep - Thi Vai, and with industrial zones, mines and tourism areas; striving for the completion of Lao Cai - Hanoi - Hai Phong railway route and Hanoi - Dong Dang railway route; connecting with Singapore – Kunming Rail Link.

•  For new construction, railways with the standardized gauge 1,435mm should be prioritized The Hanoi - Lao Cai route, Hanoi - Hai Phong route and Hanoi - Dong Dang route are to be constructed with the standardized gauge 1.435 mm.

14 September 2011 4

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Ha Noi – Lao Cai Railway Upgrading •  Total length: 296 km, Rehabilitation

and upgrading of the section as follows:

•  Replacement of super structure, rehabilitation of weak bridges, realignment of some sections, set up some new stations...

•  Financing: Co-financing $ 60M from ADB, $ 80M from the Government o f F r a n c e a n d $ 2 0 M f r o m Vietnamese Government with the total cost of USD 160 mil. Bidding for construction work is under preparation.

•  Implementation period: 2010-2013.

14 September 2011 5

Yen Vien – Cai Lan Railway Project •  130 km long, dual-gauge

track (1000 & 1435mm) is under construction, with the total cost of USD 400 mil. (Vietnamese Government funding) and is expected to be complete in 2015

14 September 2011 6

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Di An – Loc Ninh Project Length: 129 km including 12 stations,

from Hoa Lu to Di An, its F/S has been completed. Double track, standard gauge, electrification.

-  Railway connecting point with Cambodia at Hoa Lu Border Gate.

-  First Phase: construction of single t r a c k w i t h 1 . 0 0 0 m m g a u g e (embankment standard gauge) to connect with North – South Railway line.

-  Estimated cost: USD 740 Million

14 September 2011 7

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Establishing the GMS Railway Coordination Office

15th Meeting of the Subregional Transport

Forum

Vientiane, Lao PDR 14-15 September 2011

Peter Broch

Senior Transport Economist, Transport and Communications Division, Southeast Asia Regional Department, ADB

•  Facilitate economic development by enabling efficient trade by railway across borders

•  Reduce congestion and negative social impacts of transport

•  Reduce fuel dependency and CO2 emissions

The Purpose

Traffic Growth 2004-2

015

0 2000 4000 6000

Aviation

Private truck

Public truck

Shipping

Rail

Carbon Footprint per Ton/Km

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Current Railway Activities in the GMS

National

•  High Speed Networks are being built in PRC and are being considered in Thailand and Viet Nam

•  Expansion and Upgrading of Existing Networks is ongoing in all GMS countries

•  Urban Light-Rail and Metro systems are being built or considered in Cambodia, Myanmar, PRC, Thailand, and Viet Nam

Cross-border Connections

•  Existing Links between PRC and Viet Nam, and between Laos and Thailand are being upgraded or expanded

•  New Links are being built or are being considered from Cambodia to Thailand and Viet Nam; from Laos to PRC, Thailand and Viet Nam; and from Myanmar to PRC and Thailand

Planning of the GMS Railway Coordination Office

Status

•  We have had the good fortune to secure the services of Mr. Greg Wood

•  Greg is an internationally recognized expert in railway development and has extensive prior experience in the GMS

•  Greg has:

ü  Completed the first round of consultations with the countries

ü  Prepared the first draft of his recommendations for establishing the GMS Railway Coordination Office, which we shall discuss presently

Related Development

•  ADB and the International Union of Railways (UIC) have negotiated a MOU for cooperation

•  When signed, the MOU will enable the GMS Railway Coordination Office to draw on the UIC’s unique expertise about practical cross-border railway integration

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Thank You

Greg, your turn!

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15th  GMS  Subregional  Transport  Forum  

Issues  and  Op>ons  for  Establishment  of  a  Railway  

Coordina>on  Office  

Presenta>on  

•  Background  •  Interna>onal  Experience  •  GMS  /  ASEAN  Experience  •  Issues  for  Considera>on  

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Background  

•  GMS  Ministers  endorsed  the  Strategic  Framework  for  Connec>ng  the  GMS  Railways  (Strategic  Framework)  at  the  GMS  Ministerial  Mee>ng  in  Hanoi  in  August  2010.    

•  The  Strategic  Framework  proposed  to  establish  a  GMS  Railway  Coordina>on  Office  to  facilitate  planning  and  crea>on  of  anintegrated  GMS  sub-­‐regional  railway  system,  and  suppor>ng  the  crea>on  and  future  opera>on  of  ins>tu>ons  and  opera>onal  procedures  required  to  enable  efficient  cross-­‐border  railway  traffic.  

Background  

•  The  Strategic  Framework  proposed  to  address  these  issues  by:    –  developing  sub-­‐regional  interconnec>on  standards  for  technical  and  opera>onal  integra>on  of  the  na>onal  railways;    

–  developing  the  ins>tu>ons  and  procedures  required  to  effec>vely  integrate  the  na>onal  railways;    

–  developing  na>onal  adapta>on  plans  aimed  at  preparing  the  na>onal  railways  to  par>cipate  effec>vely  in  cross-­‐border  railway  traffic  in  physical,  opera>onal  and  procedural  terms;    

–  establishing  the  first  opera>ng  mul>-­‐country  GMS  railway  line  no  later  than  year  2020;  and    

–  establishing  a  GMS  Railway  Coordina-on  Officeto  coordinate  and  facilitate  these  ac>vi>es  and  the  subsequent  opera>on  and  development  of  the  GMS  railway  system.  

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Interna>onal  Experience  -­‐  AAR  

North  American  Experience  •  Associa>on  of  American  Railways  (AAR)    –  AAR  ensures  that  the  rail  industry  meets  transporta>on  needs  efficiently  and  professionally  by  working  with  elected  officials  in  Mexico  City,  Washington,  D.C.  and  O]awa  on  cri>cal  transporta>on  and  related  issues.      

–  AAR  is  not  an  official  intergovernmental  body  but  rather  an  associa>on  of  members  with  an  interest  and  a  commitment  to  rail  transport.      

–  AAR  is  also  the  standard  se^ng  organiza>on  for  North  America's  railroads  with  its  main    focus  on  improving  the  safety  and  produc>vity  of  rail  transporta>on.    

Interna>onal  Experience  –  AAR    

•  AAR  members  are  divided  into  full  members;  mainly  the  class  I  railways  in  North  America,  Amtrak;    Affiliate  members  who  are  non  class  I  railways  and  commuter  railroads;  and  Associate  Members  who  are  mainly  companies  that  do  business  with  the  railway  industry.  

•  All  levels  of  membership  are  allowed  to  join  the  technical  commi]ees  but  any  member  is  limited  to  only  two  commi]ees.      

•  Commi]ee  work  is  voluntary  and  self  financed  including  travel  to  commi]ee  mee>ngs.    

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Interna>onal  Experience  –  AAR  

•  AAR  has  a  wide  publica>ons  program  and  provides  industry  manuals  and  guides  for  all  key  ac>vi>es  affec>ng  the  members.      

•  AAR  also  operates  an  industry  standard  test  track  in  Pueblo  Colorado  that  tests  all  major  innova>ons  to  track  or  equipment  before  allowing  those  innova>ons  to  enter  normal  railway  use.  

•  AAR  also  operates  a  real  >me  shipment  tracking  system  and  a  database  of  all  member  equipment.  

Interna>onal  Experience  -­‐  AREMA  

American  Railway  Engineers  and  Maintenance  of  Way  Associa>on    

•  AREMA  is  a  sister  organiza>on  to  the  AAR  and  is  more  targeted  at  specific  technical  issues  of  importance  to  its  members.    Many  organiza>ons  are  members  of  both  AAR  and  AREMA  

•  While  AAR  focuses  on  policy,  standards  and  guidelines,  AREMA  focuses  on  the  technical  details  of  infrastructure  or  equipment.    For  instance,  AREMA  will  set  wear  limits  for  all  the  different  kinds  of  rail  used  on  member  railways  in  terms  of  head  loss  and  configura>on.    

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Interna>onal  Experience  -­‐  EC    

European  Commission  The  Commission  is  proposing  the  following  measures:  •  to  examine  the  scope  for  improving  interoperability  on  

major  interna>onal  routes  in  cost-­‐effec>ve  ways;  •  to  study  how  to  eliminate  delays  at  fron>ers  for  freight  

traffic;  •  to  assess  what  infrastructure  improvements  need  to  be  

made  to  develop  freight  transport;  •  to  assess  policy  instruments  to  reduce  railway  noise;  •  to  emphasize  socio-­‐economic  study  proposals  to  support  

the  transi>on  from  several  na>onal  railway  systems  to  one  European  system.”    

Interna>onal  Experience  -­‐  ERA  

European  Railway  Agency  •  Established  in  2004  in  Valenciennes,  France  Mandate  to:  •  prepare  new  and  updated  legisla>ve  acts  for  adop>on  by  the  Commission  and  to  give  other  technical  support  to  the  Commission  on  ma]ers  related  to  movement  of  goods  throughout  Europe  by  rail.  

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Interna>onal  Experience  -­‐  ERA  

•  Ac>vi>es  –  Develop  common  standards  for  safety,  safety  regula>on  and  accident  inves>ga>on;  

–  Improve  technical  and  opera>onal  harmoniza>on,  including  condi>ons  for  mutual  acceptance  of  railway  equipment;  

–  Facilitate  informa>on  exchange  by  improved  networks,  registers  and  databases  and  implementa>on  of  standard  regula>ons;  

–  comply  with  the  Community  regula>on  and  internal  control  requirements.    

Interna>onal  Experience  -­‐  UIC  

Interna>onal  Railway  Union  •  UIC  was  established  in  Paris  in  1922.      •  UIC  has  82  ac>ve  members  (including  the  railways  from  

Europe,  Russia,  the  Middle  East,  North  Africa,  South  Africa,  India,  Pakistan,  China,  Japan,  Korea,  Kazakhstan,  and  companies  opera>ng  worldwide  such  as  Veolia  Transport),    

•  80  associate  members  (including  railways  from  Asia,  Africa,  America  and  Australia)  and    

•  35  affiliate  members  (related  or  ancillary  rail  transport  businesses  or  services).  

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Interna>onal  Experience  -­‐  UIC  

The  key  objec>ves  in  the  UIC  mission  are  to:  •  Promote  rail  transport  world  wide;  •  Promote  interoperability,  crea>ng  new  standards  for  

railways  and  intermodal  opera>ons;  •  Develop  and  facilitate  interna>onal  coopera>on  among  

members  including  sharing  of  best  prac>ces  (benchmarking);  

•  Support  new  business  development  and  new  areas  of  ac>vity;  

•  Propose  ways  to  improve  technical  and  environmental  performance,  boos>ng  compe>>veness  and  reducing  costs.  

Interna>onal  Experience  -­‐  UIC  

UIC  exists  through  and  for  the  benefit  of  its  members.  •  Member’s  needs  shape  projects  run  by  the  UIC  plamorms  

and  forums.    •  Technical  commi]ees  create  standards  through  review  

and  professional  study  by  the  commi]ees  to  improve  opera>on,  safety  and  performance  and  issue  Leaflets  on  technical  and  policy  ma]ers  to  guide  members.      

•  This  is  par>cularly  important  for  GMS  countries  where  only  now  is  it  becoming  important  to  consider  common  technical  standards  for  equipment,  track  and  opera>ons.  

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Interna>onal  Experience  -­‐  OSJD  

Organisa>on  for  Coopera>on  of  Railways  (OSJD)    •  OSJD  was  established  in  1956  by  the  railway  ministers  of  

Albania,  Bulgaria,  Hungary,  Vietnam,  East  Germany,  China,  North  Korea,  Mongolia,  Poland,  Romania,  the  USSR,  and  Czechoslovakia.      

•  ministers  decided  to  establish  a  special  inter-­‐governmental  organiza>on,  the  execu>ve  body  of  which  started  opera>ons  in  Warsaw,  Poland  on  1  September  1957.      

•  Currently  OSJD  consisted  of  27  member  countries  with  six  observers  and  17  commercial  members.  

Interna>onal  Experience  -­‐  OSJD  

•  OSJD  is  an  intergovernmental  body  responsible  for  concluding  and  policing  interna>onal  railway  agreements  and  related  ma]ers,  as  well  as  for  coordina>on  of  opera>ng  condi>ons  and  tariffs.  

•  Supports  joint  work  by  ministries  of  transport,  customs,  immigra>on,  and  by  railway  administra>on  to  create  more  favourable  condi>ons  for  moving  passengers  and  freight  across  fron>ers.      

•  This  is  partly  achieved  by  ensuring  comparability  between  the  legal  frameworks  of  the  affected  members  to  ensure  interoperability  of  infrastructure  and  rolling  stock.  

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Interna>onal  Experience  -­‐  Summary  

Lessons  Learned  •  non  government  and  railway  members  strengthen  technical  commi]ees  by  

incorpora>ng  the  experience  of  professionals  in  the  supply  and  consul>ng  industry  and  academics;  

•  Member  Government  involvement  allows  for  a  more  direct  decisions  on  legal  structure  as  is  the  case  for  the  OSJD;  

•  Technical  commi]ees  se^ng  industry  standards  is  a  very  important  role  including  publishing  findings  and  manuals  for  the  industry;  

•  Training  and  outreach  ac>vi>es  are  also  important.    Training  centres  ensure  widespread  knowledge  about  and  ability  to  apply  the  common  technical  standards;  

•  The  organiza>ons  are  self  financing  from  their  memberships  -­‐  from  membership  subscrip>ons  to  government  subven>ons.    Organiza>ons  run  on  a  professional  and  cost  accountable  basis  that  reports  annually  on  achievements  and  with  professional  audit  of  revenue  and  spending;  

•  Staff  are  open  professionals,  hired  on  the  open  market  or  seconded  from  the  members  who  remain  with  the  organisa>on  for  a  limited  >me.    Salaries  paid  for  staff  are  comparable  to  private  sector  salaries.  

GMS  Experience  –  ASEAN  

ASEAN  •  Since  1967  ASEAN  has  aimed  for  efficient  goods  and  people  

movement  across  member  borders.    Since  1992  free  trade  agreement,  ASEAN  has  completed  a  number  of  protocols  related  to  the  safe  movement  of  goods  and  people.  These  are  listed  as  :  –  Designa>on  of  Transit  Transport  Routes  and  Facili>es;  –  Designa>on  of  Fron>er  Posts;  –  Railways  Border  and  Interchange  Sta>ons;  –  Customs  Transit  System;  –  Sanitary  and  Phytosanitary  Measures;  –  Dangerous  Goods.  

•  Given  ASEAN  on  the  requirements  for  border,  customs  and  interchange  rules,  the  development  of  a  GMS  standard  could  be  based  on  the  ASEAN  standards  to  ensure  that  no  confusion  exists  between  the  two  organiza>ons.  

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GMS  Experience  –  PRC:VN  

•  modern  interchange  agreement  was  nego>ated  and  signed  in  1992.    

•  annual  mee>ngs  elaborate  or  amend  the  the  1992  agreement.      

•  Many  of  those  clarifica>ons  are  technical  and  form  a  common  protocol  to  supplement  the  main  agreement.      

•  The  most  recent  protocol  is  dated  2010  and  is  available  as  a  separate  translated  document.  

GMS  Experience  –  PRC:VN  

•  The  gauge  change  between  P.R.  China  and  Viet  Nam  con>nues  to  be  a  challenge.      

•  current  track  in  Viet  Nam  needs  upgrading.    A  standard  gauge  track  is  under  construc>on  from  the  P.R.  China  border  to  Kunming.    Con>nua>on  to  HaiPhong  is  planned  by  VNR  by  2020.  

•  The  current  logis>cs  at  the  border  crossing  –  par>cularly  the  Nanning  to  Hanoi  crossing,  impose  a  heavy  >me  burden  on  travelers  and  goods  with  open  long  delay.  Dual  inspec>on  is  now  used  but  single  stop  inspec>on  is  possible  for  future  implementa>on.  

•  All  provisions  of  the  interchange  of  traffic  between  Viet  Nam  and  P.R.  China  are  governed  by  the  agreements  reached  by  OSJD,  of  which  both  countries  are  members.    

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GMS  Experience  –  Thai:Cam  

•  rehabilita>on  of  the  48  km  gap  between  Thailand  and  Cambodia  on  the  Cambodian  side  is  likely  to  be  open  by  mid/late  2012.    Pressure  is  now  on  to  close  the  six  km  gap  on  the  Thai  side  of  the  border.  

•  State  Railway  of  Thailand  planning  staff  indicated  that  the  construc>on  of  the  missing  six  km  of  track  will  be  part  of  a  larger  track  strengthening  program  that  is  currently  under  nego>a>on  and  wai>ng  for  approval.  

•  This  is  an  important  link  because  it  will  allow  Cambodia  access  not  just  to  Thailand  but  also  the  whole  of  Malaysia  and  Laos.    

GMS  Experience  –  Thai:Mal  

•  Thailand  and  Malaysia  have  operated  the  most  successful  interchange  agreement  in  the  region  for  over  40  years.  

•  Traffic  has  successfully  moved  across  the  border  in  both  direc>ons  and  it  is  possible  to  take  one  train  from  Bangkok  toJohor  Bahru.      

•  Joint  border  sta>on  allows  for  efficient  transit.  Staff  are  allowed  to  work  on  both  sides  of  the  border.    Exis>ng  agreement  gives  good  basis  for  equipment  interoperability.  

•  But  future  full  interoperability  requires  effort  to  improve  the  track  condi>on,  improve  locomo>ve  power  and  ensure  safe  opera>ng  standards.    

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GMS  Experience  –  Thai:Laos  

•  Laos  –  Thailand  agreement  is  very  new.    •  Noteworthy  for  establishment  of  Interna>onal  Sta>on  in  

Laos  for  joint  opera>on  and  customs  inspec>on.    However,  the  agreement  is  not  being  followed  in  prac>ce.  

•  mainly  a  haulage  agreement  whereby    SRT  agrees  to  haul  trains  on  behalf  of  Laos.      

•  op>on  exists  for  Laos  to  purchase  its  own  running  stock  and  develop  its  own  trains.    For  instance,  unit  trains  to  and  from  LaemChabang  Port.  

•  Agreement  is  reciprocal  so  expansion  of  the  Lao>an  rail  network  will  allow  SRT  trains  on  Lao  tracks.    

GMS  Experience  

Lessons  Learned  •  Closing  the  gaps  in  the  system  to  achieve  a  true  network  structure  

remain  a  stubborn  objec>ve  but  actual  achievement  of  results  lags  badly  behind  hopeful  statements.    More  tangible  effort  is  needed  if  those  gaps  are  ever  to  be  closed;  

•  Standards  between  and  among  the  member  railways  will  remain  a  problem  for  quite  some  >me  and  a  very  useful  focus  for  the  new  RCO  will  be  to  examine  those  standards  with  the  view  of  establishing  a  base  that  can  be  achieved  across  the  GMS  region;  

•  Track  condi>on  is  a  challenge  in  the  region.    Both  Vietnam  and  Thailand  recognize  the  limits  of  their  current  track  and  have  plans  in  hand  to  improve  the  track  condi>on.    But  if  effec>ve  interline  traffic  volumes  are  to  be  achieved  in  the  future,  be]er  track  and  more  reliable  locomo>ve  power  is  a  pre-­‐requisite.  

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Key  Issues  -­‐  Mandate  

What  should  be  the  mandate  or  role  of  the  RCO?  •  Coordina>on  of  monitoring  and  planning  to  ensure  selec>on  of  most  cost  

effec>ve  and  prac>cal  cross  border  connec>on;  •  Coordinate  agreement  on  sources  of  finance  and  alloca>on  of  

responsibility  for  missing  links;  •  Development  of  technical  and  opera>ons  standards  for  applica>on  across  

the  member  railways;  •  Development  of  agreements  and  protocols  for  ongoing  interchange  of  

goods,  people,  and  equipment  across  na>onal  borders;  •  Provide  clearing  house  services  to  allow  funds  alloca>on  from  

compensa>on  for  loss  and  damage  to  equipment  or  track  or  to  allocate  revenue  from  through  shipments  and  facilitate  discussions  on  insurance;  

•  Form  subject  focused  technical  or  opera>onal  review  teams  to  determine  cause  and  liability  for  any  major  issue  or  dispute  between  the  member  railways;  

Key  Issues  –  Mandate  (cont’d)  

•  Technical  Assistance  studies  to  review  issues  or  standards  and  coordinate  implementa>on  of  the  results  based  on  the  agreement  of  the  member  governments  and  the  study  sponsors;  

•  Develop  a  training  and  technical  support  program  to  train  locomo>ve  drivers,  dispatchers,  commercial  and  accoun>ng  staff  and  marke>ng  staff  on  the  procedures  and  approaches  to  use  for  regional  cross  border  traffic.  

•  Determine  and  develop  a  set  of  safety  standards  and  guidelines.  •  Assist  member  countries  in  achieving  and  maintaining  ISO  

accredita>on  in  rail  opera>ons.  •  Determining  and  developing  a  set  of  opera>ng  protocols  for  cross  

border  rail  opera>ons,  locomo>ves,  wagons  and  train  crew.  •  Transla>on  of  safety  standards  and  opera>ng  systems  into  na>ve  

tongue  or  the  training  of  the  relevant  personnel  in  English  as  the  recognized  rail  safety  language  

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Key  Issues  -­‐  Mandate  

•  Should  any  of  the  above  roles  not  be  assigned  to  the  RCO?      

•  What  other  roles  should  the  RCO  carry  out  on  behalf  of  the  members?  

Key  Issues  -­‐  Organisa>on  

What  type  of  organiza>on  should  the  RCO  be  and  how  should  it  develop?The  op>ons  for  ini>ally  establishing  the  RCO  are  as  follows:  

 i)  Standing  commi]ee  of  GMS  member  country  plus  Malaysia  

representa>ves  with  no  formal  structure;  ii)  Coordina>on  office  located  within  ADB  to  support  the  development  of  the  

missing  links  and  to  help  ini>ate  more  formal  discussions  on  developing  common  regional  standards  for  infrastructure,  equipment,  opera>ons  and  cos>ng.    This  office  could  ini>ally  be  funded  by  the  ADB  for  a  limited  >me  and  then  expanded  to  become  a  stand  alone  office  with  professional  staff;  

iii)  a  small  core  office  to  coordinate  planning  for  the  missing  link  routes;  for  iden>fying  and  organizing  sources  of  finance;  with  developing  policies  for  the  efficient  movement  of  goods  an  people  and  for  se^ng  up  commi]ees  to  create  common  technical  standards  and  guidelines  for  applica>on  across  the  member  countries.  

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Key  Issues  -­‐  Organisa>on  

Considera>ons  •  all  members  will  not  be  linked  to  the  regional  network  ini>ally.    •  Not  reasonable  to  expect  that  all  countries  will  be  willing  to  pay  to  

support  the  RCO.      •  During  the  ini>al  period  will  need  to  be  kept  as  small  as  possible  with  as  

much  volunteer  input.    •  For  ini>al  period  needs  a  small  organisa>on  with  limited  outside  support.  •  Since  mul>  country  movements  are  already  possible  through  the  GMS  and  

Malaysia  network  and  soon  between  Thailand  and  Cambodia,  there  already  exists  a  need  to  begin  to  establish  principles  for  interchange  of  equipment  and  standards  for  physical  works  and  equipment.    Establishment  of  technical  commi]ees  can  begin  now.      

•  Once  the  linkage  between  P.R.  China,  Viet  Nam  and  Thailand  –  either  via  Laos  or  via  Cambodia  has  been  completed,  then  the  second  stage  organisa>on  with  larger  staffing  and  expanded  mandate  to  include  more  technical  issues  will  be  needed.    

Key  Issues  -­‐  Organisa>on  

•  From  the  above  op>ons  then,  either  op>on  two  or  more  likely  op>on  three  is  the  most  prac>cal  but  with  the  provision  that  the  ini>al  establishment  will  be  supported  by  member  countries  with  help  from  one  or  more  donor  agencies  for  a  limited  period  of  >me.    

•  Do  member  delegates  have  a  different  view  of  the  development  of  the  RCO?    How  fast  should  it  be  set  up?      

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Key  Issues  -­‐  Membership  

Who  should  be  members  of  the  RCO  and  under  what  umbrella  should  the  RCO  be  established?  

•  Malaysia,  in  par>cular  Port  Klang  is  a  prime  des>na>on  for  GMS  cargo  and  as  traffic  begins  to  build  throughout  the  region,  Malaysian  traffic  will  certainly  be  part  of  that  growth.  If  Malaysia  is  part  of  the  RCO  membership,  then  Singapore  also  should  be  a  member.      

•  Given  ASEAN  wide  protocols  it  may  be  logical  to  extend  the  membership  of  the  RCO  to  all  of  ASEAN  countries.      

•  All  countries  in  the  GMS  region  with  the  excep>on  of  P.R.  China  are  also  members  of  ASEAN  and  ASEAN  offers  and  organiza>onal  home  that  could  accommodate  the  RCO.  

Should  the  membership  of  the  RCO  be  open  to  Malaysia  and  Singapore?    Should  the  RCO  be  established  as  an  ASEAN  organisa>on?    

Key  Issues  –  Organisa>on  Structure  

•  The  RCO  must  have  an  organiza>onal  structure  –  a  stand  alone  company  with  shareholding  by  the  members,    –  a  non  for  profit  corpora>on  registered  in  one  of  the  member  countries,    –  a  registered  associa>on,    –  a  unit  of  one  of  the  donor  agencies  such  as  the  ADB  or  it  may  be    –  an  interna>onal  organisa>on  under  one  of  the  other  recognized  bodies.  

•  Normally  organisa>ons  that  hold  property,  manage  money,  establish  a  bank  account  must  be  a  legal  person.    That  means  registra>on  as  a  legal  en>ty.    Many  forms  of  associa>on  exist  around  the  world.      

Should  the  RCO  remain  for  the  >me  being  as  just  an  ad  hoc  office  with  no  legal  standing?    Should  the  RCO  be  established  as  a  legal  en>ty  in  the  country  where  it  will  be  resident?    Should  the  RCO  be  established  with  a  linkage  to  ASEAN?  

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Key  Issues  -­‐  Loca>on  

Where  should  the  RCO  be  located?  •  Criteria  for  successful  opera>on  include:  –  Linkage  to  other  GMS  Ci>es  –  Quality  of  Support  Services  –  Availability  of  Office  Space  –  Use  of  English  –  Access  to  Interna>onal  Schools  –  Impact  of  RCO  on  Country  –  Access  to  Internet  –  Ease  of  Delegate  Travel  to  RCO  

Key  Issues  -­‐  Loca>on  

•  The  ranking  of  each  city  against  the  above  criteria  can  produce  a  picture  of  each  ci>es  desirability.    

•  Of  the  poten>al  host  ci>es  Bangkok  stands  out  as  having  the  most  posi>ve  characteris>cs  and  par>cularly  since  Bangkok  is  within  the  ASEAN  region,  ease  of  access  for  delegates  as  well  as  a  wide  selec>on  of  available  air  connec>ons  make  Bangkok  a  desirable  loca>on  for  the  establishment  of  the  RCO.  

 Is  Bangkok  the  most  logical  loca>on  for  the  RCO?    Are  there  

strong  reasons  why  another  city  should  be  considered  in  addi>on  to  Bangkok?  

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Key  Issues  -­‐  Staffing  

How  should  the  RCO  be  staffed?  •  The  size  and  complement  of  staff  will  depend  directly  on  the  

agreed  list  of  responsibili>es  as  above.    The  size  could  range  widely  depending  on  the  mandate  selected  and  approved  by  the  members.  

•  The  objec>ve  should  be  to  match  fixed  cost  to  the  requirements  of  the  mandate  with    a  >ght  core  team  structure  supplemented  by  academics  and  consultants  for  specialised  focused  work.      

Should  the  RCO  have  a  core  unit  of  professional  staff  or  exist  only  as  a  collec>on  of  voluntary  staff  working  through  a  commi]ee  structure?      

Do  members  agree  that  as  the  RCO  expands,  most  of  the  staffing  will  be  through  secondment  of  staff  from  the  members?  

Key  Issue  -­‐  Financing  

How  should  the  RCO  be  financed?  •  Start  up  cost  and  Seed  Money.    Some  GMS  countries  will  not  gain  

much  benefit  from  the  forma>on  of  the  RCO  for  the  first  year,  so  unlikely  to  be  willing  to  fund  its  crea>on.    This  may  be  overcome  by  providing  seed  money  to  get  the  RCO  registered  and  key  core  staff  hired  under  a  grant  from  one  of  the  major  interna>onal  financial  ins>tu>ons.      

•  Fixed  cost  for  the  first  10  years  for  office  rental,  opera>ons,  administra>on  staff,  permanent  technical  staff,  seconded  staff  and  allowances  may  come  ini>ally  from  a  membership  subscrip>on  fee  combined  with  a  fixed  percentage  levy  on  annual  revenue  by  member  railways  as  reported  in  the  audited  annual  reports.  

•  Fixed  cost  aBer  10  years  or  aper  traffic  reaches  a  minimum  threshold.    The  actual  interchange  traffic  moved  could  be  the  basis  on  which  part  of  the  RCO  is  paid  over  the  longer  term  -­‐  similar  to  a  toll  fee  paid  on  the  basis  of  the  transfers.    

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Key  Issues  -­‐  Financing  

•  Variable  cost  for  event  specific  ac-vi-es  like  technical  review  of  derailments  of  disputes  over  maintenance  cost  between  two  or  more  railways.    Cost  would  be  covered  by  a  direct  bill  to  the  affected  railways.    No  charge  would  apply  to  any  railway  not  directly  affected;  

•  Technical  assistance  for  special  studies.    Cost  for  technical  ac>vity  such  as  management  of  a  GMS  related  infrastructure  should  be  paid  out  of  the  cost  of  the  project  or  through  donor  funding  or  as  a  charge  against  overhead  if  it  is  a  GMS  wide  issue  or  paid  directly  by  affected  railways  if  the  issue  is  limited  in  scope  to  one  or  more  affected  railways.  

•  Training  /  Workshops.  Specialised  training  programs  or  workshops  can  be  held  by  the  RCO  and  can  be  paid  directly  by  the  par>cipants.      

•  Publica-ons.  Usually  publica>ons  are  set  up  in  a  way  that  they  can  recover  their  own  costs.  This  can  be  done  through  specific  individual  pricing  of  documents  or  through  annual  subscrip>on  fees.      

Key  Issues  -­‐  Financing  

•  Does  the  above  framework  for  financing  the  RCO  meet  the  needs  of  the  members?    Do  members  disagree  with  the  philosophy  of  self  financing  of  the  RCO  by  the  members?    Is  the  above  financing  outline  consistent  with  the  approach  used  in  other  regional  bodies?  How  else  could  the  RCO  be  financially  supported?  

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Key  Issue  –  Closing  the  Gaps  

•  Comple>ng  the  missing  link  from  Phnom  Penh  to  HCMC  will  cost  in  the  range  of  US$  1  billion.      

•  Will  allow  traffic  among  most  of  the  GMS  countries  and  with  Malaysia  and  Singapore,  but  the  benefits  of  that  traffic  for  Cambodia  are  ques>onable.      

•  Cambodia  is  likely  to  become  a  transit  railway  which  essen>ally  takes  a  toll  from  the  passing  traffic.      

•  Given  that  likely  role,  it  does  not  seem  likely  that  Cambodia  will  agree  to  assume  the  full  burden  of  the  debt  financing  needed  to  complete  the  missing  link.      

•  Other  countries  with  more  to  gain  from  the  link  will  need  to  assume  at  least  part  of  that  debt  burden  on  behalf  of  Cambodia.  

Key  Issue  –  Closing  the  Gaps  The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

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Key  Issue  –  Closing  the  Gap  

•  The  solu>on  is  to  find  a  way  to  jointly  and  severally  guarantee  the  borrowing  needed  to  complete  the  missing  link.    Sovereign  guarantees  will  be  needed  from  the  benefi>ng  railways,  in  a  minimum  P.R.  China,  Vietnam,  Thailand  and  Malaysia  in  addi>on  to  Cambodia  or  Laos.      

Given  that  both  Laos  and  Cambodia  are  not  likely  to  be  the  main  recipients  of  benefits  that  flow  from  the  new  lines,  is  it  logical  for  other  member  countries  to  jointly  support  the  development  of  the  missing  links  across  either  Laos  or  Cambodia?    Is  this  op>on  one  of  the  first  jobs  of  the  RCO?  

 

                                   Thank  you  

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Toll Royal Railway Fifteenth Meeting of the GMS Subregional Transport Forum

David Kerr September 2011

Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 2

Contact David Kerr, CEO, [email protected] www.tollroyalrailway.com

Personnel 150 including 3 ex Pats with extensive international railway experience

Service Offerings Bagged cement rail freight between Phnom Penh and Touk Meas commenced October 2010, containerized rail freight and bulk fuel deliveries Phnom Penh to Sihanoukville by early 2012, and containerized and bulk rail freight between Phnom Penh, Pursat, Battambang and Poipet and Cambodia and Thailand by late 2012

Toll Royal Railway Overview

Toll Royal Railway §  Joint Venture between Toll and the Royal Group

§  Concession is to Operate and Maintain the Cambodian Railway

§  All documentation and Safety Management System in English

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Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 3

Snapshot of Toll Royal Railway

§  Accredited Safety Management System §  30 Year Concession §  ISO 9001, 2008 Accreditation as a Commercial Rail Operator §  B-Double commitment from the Cambodian Government §  98Ha Samrong Terminal and Warehouse development §  Direct Port Access in Sihanoukville §  Service Offerings:

§  bagged cement rail freight between Phnom Penh and Touk Meas commenced October 2010

§  containerised rail freight and bulk fuel deliveries Phnom Penh to Sihanoukville by Mid 2011,

§  containerised and bulk rail freight between Phnom Penh, Pursat, Battambang and Poipet and Cambodia and Thailand by Mid 2012

Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 4

GMS Railway Coordination – key points

§  Locomotive standards §  Wagon standards §  Train Driver training standards – competency assessments §  Safety standards, colour of rollingstock, stopping distances, visibility, lighting

standards §  Uniforms, colour, standards, Hi Visibility, PPE, footwear §  National Medical Standards §  Drug, alcohol, fatigue §  Insurance, limits, Business Interruption Risk, Incremental Cost of Working §  IT, Systems, GPS monitoring §  Commercial matters, compliance auditing, customs clearance, facilitation fees

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Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 5

FRETA - Multimodal

Benefits §  Cost effective §  Quicker response times for customers §  Lower levels of inventory required by stores reducing duplication of transport processes §  Home deliveries direct from the warehouse Sectors §  Agricultural and Machinery Tools §  Machinery for food processing §  Construction materials §  Furniture and domestic appliances §  Medical, Hospital and pharmacy supplies §  Food and beverage suppliers

Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 6 6

Toll Royal Railways Warehouse and Road Transport

 

 

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Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 7 7

Cambodia – Two Missing Links

 

Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 8

Safety is Our No. 1 Priority Staff are all in uniform Training is ongoing

Toll Royal Railway Safety and Training

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Toll Royal Railway The Complete Solution for Cambodia's Supply Chain Logistics 9 9

Conclusion

Conclusion Toll Royal Railways business plan is based on a platform of Corporate Governance, Safety and Transparency in all of our business Operations. The vertical integration of the business and the developing of full 3PL Logistics (Road, PuD, Warehousing, Cross Docking, Freight Forwarding, LCL and FCL). An efficient and effective RCO is imperative to the success of the GMS Railway Strategy

The benefits for Cambodia and GMS are significant

 

Thank you

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2

 Outline  

 I.  Issues  II.  The  Cross-­‐Border  Transport  Agreement  (CBTA)  III.  Status  of  CBTA  Implementa=on  -­‐  Customs  Transit  System  -­‐  Traffic  Rights  Exchange  -­‐  Pilot  Implementa=on  along  EWEC  IV.  Challanges  V.  The  Way  Forward:  CBTA  and  beyond  

     

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I.  Issues  

�  90%  of  the  $14  billion  GMS  program  were  invested  in  transboundary  transport  projects,  however  roads  are  not  used  as  much  as  expected  

�  There  are  many  non-­‐physical  barriers  that  impede  movement  of  goods  and  people  across  the  subregion  

�  Many  GMS  roads  are  built  without  considering  border  and  logis=c  constraints  

�   Worldwide,  border  delays  account  for  40%  of  the  =me  lost  in  transporta=on  and  add  15%  to  the  cost  of  goods.  No  data  for  the  GMS,  but  it  could  be  worse  

�  Transporta=on  and  trade  data  are  not  collected  regularly  (modes  of  transport  used,  traffic  in  specific  corridors,  types  of  products  transported  by  each  mode)  

�  Tariff  barriers  have  been  significantly  reduced  and  have  raised  the  importance  on  non-­‐tariff  barriers  

   

 

4

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Nonphysical  Impediments  to  the  Cross-­‐border  Movement  of  Goods  and  People  

•  Inconsistent  and  complex  border  crossing  formali=es  and  procedures  (inspec=on  of  same  goods  by  several  agencies)  

•  Restric=ve  visa  requirements  for  drivers  and  crew  •  Restric=ons  on  entry  of  motor  vehicles  (different  vehicle  weights  and  dimensions)    

•  Different  standards  on  vehicles  and  drivers  across  countries  

•  Transit  traffic  difficult/not  allowed    

Ø  Comprehensive Integrated solution to urgent need for Transport and Trade Facilitation

-- covers transport, customs, immigration, and quarantine inspection (TCIQ)

Ø  Compatible with other similar systems -- GMS CTS is a simplified TIR system to meet GMS realities Ø  Conforms with international best practices: on transport and trade

facilitation: --7 international conventions promoted by UNESCAP

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7

With  CBTA….    

1. Trucks, drivers and goods could go to any GMS country 2. Goods with trucks could transit without reloading

3. Shortened clearance times and costs at borders and improve reliability of road transport

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•         Exchange  of  traffic  rights  •         Cross  border  movement  of  persons  for  those  involved  in  transport      opera=ons  •         Transit  traffic  regimes,  including  exemp=ons  from  customs  inspec=ons,  bond  deposits,  escort  and  agricultural  and  veterinary  inspec=ons  •         Requirements  for  vehicles  to  be  eligible  for  cross  border  traffic  •         Standards,  including  road  and  bridge  design  standards,  road  signs  and  signals.  • Single  window  and  single  stop  clearances  

   

III.  CBTA  Implementa=on-­‐  An  Overview  

�  4  countries  ra=fied  all  20  annexes  and  protocols  of  the  CBTA.  Thailand  ra=fied  14  and  Myanmar  is  the  process  of  ra=fying  

 �  6  Borders  (2  pairs  of  3)    are  implemen=ng  the  CBTA              �  Legal  Framework  on  GMS  Customs  Transit  System  (CTS)  established    �  Interim  Agreement  between  Customs  and  Guarantee  organiza=ons  and  

Interim  Agreement  among  Guarantee  organiza=ons  of  Viet-­‐Lao-­‐Thai  signed  by  June  2009  

 �  Pilot  implementa=on  of  GMS  Road  Transport  Permit  System  to  operate  

together  with  GMS  Customs  Transit  System  (EWEC)    

10

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11

1999-2003 CBTA Framework

Agreement – Signed & Ratified 2006-2011

CBTA (pilot) Implementation Arrangements Signing of CBTA

LAO – Nov. 1999 THA – Nov. 1999 VIE – Nov. 1999 CAM – Nov. 2001 PRC – Nov. 2002 MYA – Sept. 2003

Ratification of CBTA by 31 December, 2003

2003-2005 20 Annexes &

Protocols (A&P) - Negotiation

2013 CBTA

Implementation

Signing of 20 A&P 16 A&P signed signed by all countries 2007

CBTA Road Map

Initial Implementation at key borders

- Hekou – Lao Cai commenced -  Lao Bao-Dansavanh commenced - Mukdahan-Savannakhet commenced

Ratification of 20 A&P by 2011 CAM – PRC – LAO – MYA – n/a THA – 14 ratified VIE – 16 ratified All ratified

All ratified All ratified

All ratified

Customs Transit System

GMS CTS operation and NSC in 2010

•  GMS Road Transit Permit •  Customs Transit Document for Goods, Vehicles, and Containers •  Guarantee Organization •  CTS operation in EWC in 2009

12

Initial Implementation at Key Border Crossings

Lao Bao-Dansavanh

Start Implemntation (2005)

Single Stop Inspection

Customs Transit System Pilot Operations in 2009 Mukdahan (Thailand) -

Savannakhet (Lao PDR)

Implementation started in 2006

Single Window Inspection

Customs Transit System Pilot Operations in 2009

Hekou (China)-Lao Cai (Viet Nam)

Start Implementation ( 2007)

Single Window Inspection

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13

GMS  Customs  Transit  System  (CTS)  Forms    for  Goods,  Vehicles  and  Containers,    

 

Annex 6: Transit provisions for goods

Annex 8: Temporary Admission of Motor Vehicles

Annex 14: Container Customs Regime

with English, Lao, Thai and Vietnamese instructions.

Model of the GMS Customs Transit System

Thai transport operators

Lao transport operators

Viet Nam transport operators

Viet Nam Customs

Lao Customs

Thai Customs

Transit Goods Movements

TIFFA, BoT LIFFA VATA

Bank Guarantee/

Deposit

Bank Guarantee/

Deposit

Bank Guarantee/

Deposit

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Ø  (Interim)  Agreement  signed  between  Customs  and  Guarantee  Organiza=ons  

       -­‐-­‐  Viet  Nam  Customs    with  Viet  Nam  Automobile  Transport  Associa=on            -­‐-­‐    Lao  Customs  with  Lao  Interna=onal  Freight  Forward  Associa=on            -­‐-­‐    Thailand  Customs  with  Board  of  Trade  (Thai  Chamber    of  Commerce)    

Ø  (Interim)  Agreement  signed  among  Guarantee  Organiza=ons  (VATA,  LIFFA  and  BoT)        

16

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GMS  Road  Transport  Permit  System    �  From  permit  system  to  free  market  system  �  All  six  countries  agreed  on  the  format  of  the  permit    �  Issued  by  transport  authori=es    �  Each  country  could  issue  up  to  500  permits    �  Pilot  implementa=on  by  Thailand,  Lao  PDR  and  Viet  Nam  along  the  East-­‐West  Corridor    

 

   

 17

Traffic  Rights  Exchange

18

Implemented Lao  PDR-­‐Thailand-­‐Viet  Nam    (East  West  Corridor)  

Pilot  stage  only,  Under  quota  system  (up  to  400)  

Cambodia-­‐Viet  Nam  

Under  quota  system    (up  to  300)  5  Border  gates  

Lao  PDR-­‐Thailand Without  quota Lao  PDR-­‐Viet  Nam

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Traffic  Rights  Exchange

19

In  Progress PRC-­‐Viet  Nam Internal  approval  in  

progress Thailand-­‐Lao  PDR-­‐Viet  Nam  (Extension  of  EWEC  to  GMS  capitals)

Under    preparation  .  MOU  to  be  signed  in  GMS  Summit

Cambodia-­‐Thailand Initial  stages  (40  for  each  country)  

Others?

20

Road opened March 2004

Da Nang Port Completed in

2004

Hai Van Tunnel

opened in Jun 2005

completed

Second Mekong Bridge

opened in early 2007

Widening completed by

2007

Road constructed

Exchange of Traffic Rights/

CTS on Piloted on June 2009

Pilot of CBTA Fast Track on

June 2009

MOU for IICBTA Prepared

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21

Pilot  Implementa=on  at  EWEC  -­‐  Challenges  No Demand to use the CBTA system and documentation

Ø  Low traffic along the EWEC Ø  Lack of economic complementarily among the EWEC

countries. High truck transport charges (empty returns) Ø  EWEC route is too limited and not attractive for transport

operators Ø  Low level of awareness of CBTA by transport operators, Ø  Weak Guarantee Organizations and not enough business

volume to generate their interest Ø  Low capacities and awareness in Customs and other border

authorities Ø  CTS documents are difficult to use and expensive Ø  Competition from maritime transport

Cost  of  Mari=me  transport  compe==on  

•  Traffic  between  Thailand  and  Vietnam  –    Mari=me    8,500  TEU/month  THA-­‐>VN  –     Mari=me  2,000  TEU/month  VN-­‐>THA  –  Freight  rate  $900  Bangkok  -­‐  Hanoi  –  Handling  $600  –  Total    $1,500  (10-­‐15  days)    Road:  $3000  (3-­‐4  days)  

 

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Possible  SoluFons    

•  Increase  range  of  collec=on/delivery  points.  Extend  the  EWEC  route  

•  Minimize  delays  and  costs  at  borders  and  increase  reliability  •  Capture  return  loads  to  extent  possible  •  Provide  logis=cs  facili=es/dry  ports  •  Reduce  costs  and  complexity  of  CTS  Docs  

24

Extension  of  EWEC  to  Promote  Traffic  

Ø  Thailand, Lao PDR, and Viet Nam agreed to extend the EWEC route on 9 June 2011

Ø  Three GMS capitals: Bangkok, Hanoi, Vientiane Ø  Two deep sea ports: Haiphong and Laemchabang

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The  Way  Forward:  Accelerate  CBTA  implementaFon    �  Thailand  and  Myanmar  ra=fy  all  Annexes  and  protocols  �  Incorporate  CBTA  provisions  into  na=onal  laws/regula=on    (TTF  Na=onal  Ac=on  

Plans)  �  Strengthen  “ownership”  of  the  CBTA  by  Customs  and  other  government  agencies  �  Strengthen  coordina=on  of  NTFC  and  Joint  Commikee  in  monitoring  CBTA  

implementa=on  (more  regular  mee=ngs)  and  strengthen  the  transport    facilita=on  subcommikee  

�  Collect  ideas  and  promote  ac=ve  par=cipa=on  of    the  private  sector  (transport  associa=ons,  logis=c  companies,  etc)  

�  Prepare  implementa=on  details  of  MOUs  between  Customs  and  Guarantee  organiza=ons  

�  Capacity  building  for  CBTA  implementa=on  at  central,  provincial  and  border  level  �  Disseminate  informa=on  on  CBTA  to  customs  and  provide  training  �  Support  to  the  weakest  Guarantee  Organiza=ons  �  Increase  transparency  to  eliminate  discriminatory  charges  and  levies  �  Expand  CBTA  to  other  corridors  �  Expand  the  number  of  exchange  of  traffic  rights  and  implement  them  (how  to  

priori=ze?    Iden=fy    problems  for  implementa=on)     25

The  Way  Forward:  Beyond  the  CBTA    �  Align  GMS  TTF  with  ASEAN  TTF  and  ASEAN-­‐FTA  and  consider  other  op=ons  for  

CTS  (TIR,  EU  New  Computarised  Transist  System  (NCTS))  �  Establish  a  Corridors  Performance  and  Measurement  Monitoring  system  to  

gather  =me  and  cost  data,  border  and  transit  transport  and  trade  sta=s=cs,  and  to  iden=fy  key  cargo  transport  routes  and  boklenecks.  

�  Compare  GMS  corridors  with  other  land  routes,  rail,  mari=me  and  mul=modal  corridors  and  develop  mul=modal  transport  

�   Invest  more  in  technology  (automa=on  of  customs  documenta=on,  e-­‐seals  with  GPS  tracking  to  facilitate  transit  traffic,  single  portals  with  TTF  informa=on)  

�  Improve  logis=cs:  develop  dry  ports  and  inland  container  depots  �  Support  local  transport  industry  (Laos,  Cambodia,  Myanmar)  �  New  TTF  Ac=on  Plan  (2011-­‐2015)  approved  by  GMS  countries  in  2010  �  TA  Support  from  ADB,  Australia  and  Japan  (coordinated  border  management,  

SPS,  logis=cs)  2012-­‐1015  

26

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QuesFons  Ø  How do you incorporate the software aspects (TTF) in the

analysis and project design to develop new corridors?

Ø  Should GMS countries invest more on TTF to increase the effectiveness of their investments in hardware?

Ø  What could NTFC do to implement the CBTA and (collect

transport data?)

Ø  How can ADB assist national NTFC and the regional Committee and Subcommittees better?

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GMS-BF Briefing on the Establishment of the GMS

Freight Transport Association (FRETA)

Oudet Souvannavong Secretary General of the GMS-BF

15th Meeting of the GMS Sub-regional Transport Forum 14-15 September 2011, Vientiane, Lao PDR .

Rationale: Why GMS-FRETA is

needed?

n  The Governments of the GMS want to facilitate, and increase the volume of international trade within the GMS.

n  They recognize that trade between the countries can only increase if transport, especially land transport, between those countries becomes fast, easy and efficient.

n  GMS Governments funded the infrastructure improvement which has now largely been completed for road transport

n  The procedural changes needed to make transport fast and easy were worked out carefully and listed in the Cross Border Transport Agreement (CBTA) and its annexes. This agreement have been signed and ratified by nearly all countries of the GMS.

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Rationale: Why GMS-FRETA is

needed?

n  But, as we all know, on the ground very little has changed. Trucks and cargo still do not circulate freely

n  The GMS-BF have travelled around the GMS countries and have spoken to truckers , forwarders, customs brokers, traders and associations in every country

n  They all say the voice of the private sector is not being heard by the government officials concerned, and it needs to be heard.

Rationale : Existing Associations

are not Suitable for Purpose n  FRETA is an organization which is different from other regional

organizations q  Includes both trucking and freight forwarding elements

(actually also customs brokers and traders) q  Focuses specifically on routes and issues within the GMS and

other regional links. q  Comprises only members operating within the GMS. q  Is supported and targeted by GMS governments and the ADB

to tackle the exact issues which concern us all.

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Rationale: The initiation of FRETA

n  At the 3rd GMS Summit in 2008 the Leaders supported the proposal to found FRETA. At the GMS Ministers’ Meeting in August 2010 the Ministers accepted the “Consensus” agreed at the GMS Seminar in Nanning calling for the early establishment of FRETA.

n  The GMS-BF Board Meeting in Kunming on February 2011 agreed on preparing the institutionalization. ADB provided assistance in the preparation of legal documents and in the consultation with major stakeholders during March-June 2011.

n  GMS-BF Board of Directors signed a Memorandum of Agreement (MoA) at the 2nd Board Meeting on July 2011. The progress was reported to the 17th GMS Ministerial Meeting in Phnom Penh on August 2011, and a letter for the establishment of FRETA’s Office in Lao PDR was sent to the GMS Minister in Lao PDR.

- Proposed Constitution of GMS-

FRETA : Purpose & Objective

n  The GMS-FRETA is an international non-governmental and non-profit organization uniting the GMS-BF with carrier, freight forwarder and logistics associations of the GMS countries as well as with Freight Transport companies of any nationality operating within the region and having offices registered within that region.

n  The GMS-FRETA may also develop contacts to organizations outside the GMS if that is deemed beneficial. GMS is not limited in its area of operations.

n  The GMS-FRETA is registered in Vientiane, Lao PDR, initially under the umbrella of the GMS-BF.

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Proposed Constitution of GMS-

FRETA : Membership

n  Founder Members are to be the GMS-BF plus representatives of each country of the GMS

n  Members within each country will fall into 2 categories: o  Trade associations ( truckers, freight forwarders, customs brokers,

others..) whether state owned or not. There may be more than one from each country

o  Individual companies from each country who would like to be members in their own right

n  Multi-national companies who are operating in more than one country of the region but are headquartered in none, may also become members.

Proposed ToR of GMS-FRETA

n  To act as a central body conveying to the highest Authorities in the GMS the concerns and wishes of the private sector trade and transport industries of all the GMS countries

n  To advise the Authorities of practical and simple ways in which trade and transport can be facilitated.

n  To assist in the establishment of free, fast, open and efficient transport across Land Borders within the GMS

n  To set, agree and monitor unified high standards of technical and professional training and operations in all countries allowing efficient operations and fair competition within the region.

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Proposed ToR of GMS-FRETA

n  To assist and coordinate members in collecting high quality data for the GMS corridor Performance Monitoring program.

n  To identify training and investment needs and either provide or coordinate efforts to provide such training and investment (new equipment/facilities)

n  To function as a neutral accreditation facility monitoring and certifying conformity of vehicles, employees and systems of member companies and groups of companies with regionally agreed norms and standards

Activities of GMS-FRETA

n  Organizing meetings, conferences and informal contacts to ensure

that GMS ministers are well informed of the actual situation on the ground and of the practical steps which need to be undertaken

n  Agreeing and setting international standards for acceptable and environmentally sustainable vehicles, equipment, staff and procedures

n  Training and certification of member companies’ staff up to the above standards

n  Inspection and certification of member companies’ vehicles and equipment up to the above standards

n  Leading and coordinating actual on-the-ground implementation of the CBTA and subsequent legislation

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Rationale: What We Want to Achieve –

Benefit to GMS-FRETA Members?

n  GMS-FRETA members’ trucks and goods should be allowed to operate across countries: i.e. from Kunming to Bangkok; from Nanning to Ho Chi Minh City etc.

n  GMS-FRETA trucking and freight service standard should be raised and mutually recognized. ISO based standards, harmonization and training of management and truck drivers.

n  Cross Border Green Lanes to be established for GMS-FRETA by GMS Governments at all border crossing points

n  GMS-FRETA members to cooperate B2B for exchange of truck heads, for return loads and for cargo consolidation

n  And other benefits

Rationale: What We Want to Achieve –

View of the Stakeholders? n  GMS-FRETA’s institutionalization and activities is incorporated

into the GMS programs especially into the activities of the National Transport and Trade Facilitation Committees.

n  A step-by-step and area-focus approach needs to be taken in planning the road map for the activities of GMS-FRETA. q  The focus will start with the inland road transport of goods and

subsequently expanded to cover multimodal transportation including air, sea, river and rail transportation.

n  As the full implementation of the CBTA and the harmonization of GMS’s CTS will take time to complete, GMS-FRETA shall, in parallel, focus on short term targets, practical measures. q  which would reduce cross-border freight and transport costs, allow secure

under-shade trans-loading of goods, and enhance business-to-business networking to guarantee return loads.

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Rationale: What We Want to Achieve –

View of the Stakeholders?

n  GMS-FRETA shall facilitate access to finance for business operators in Cambodia, Myanmar, Lao PDR and Vietnam, in order that they can up-grade trucking and logistic facilities to meet with internationally required standards.

n  GMS-FRETA shall prepare harmonized GMS standards in accordance with which the members must operate. q  All GMS government institutions shall recognize the standard

certification. q  An independent professional private certification body such as SGS or

equivalent shall operate the GMS-FRETA standard certification under the supervision of and at the direction of the GMS-FRETA.

Rationale: What We Want to Achieve –

View of the Stakeholders?

n  GMS-FRETA’s effectiveness in advocacy and problem solving will depend on the capacity of the association to operate on the ground in each country. q  It is recommended to establish GMS-FRETA branches and offices in all

important ports and at all important border crossing points. q  To avoid duplication it is recommended to use trucking or freight forwarder

associations’ offices as locations for the GMS-FRETA offices.

n  Strengthening the capacity of local trucking and freight forwarder association, among other things by such co-locations, shall be one of the main roles of GMS-FRETA.

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Rationale: What We Want to Achieve –

View of the Stakeholders?

n  GMS-FRETA shall not be a shipment transit guarantee organization but shall rather be an organization to achieve and certify the conformity of its members to high standards of corporate governance, conduct and professional technical excellence for international and national insurance companies and customs organizations.

n  The current national shipment transit guarantee system using bilateral transport rights and national customs transit agreements is not a critical constraint on the movement of cargo for the private sector and replacing it through a multilateral system, whilst desirable, is not a high priority for the private sector.

Rationale: What We Want to Achieve –

View of the Stakeholders?

n  There is also a potential important role for GMS-FRETA to support its members and represent their interests in cases of conflict between GMS countries. q  Such conflicts virtually never spring from disputes over international

transport but border closures and transit stoppages often result from the conflicts.

n  It is important that GMS-FRETA engage to agree with the governments concerned procedures, which allow mutually beneficial trade to continue whilst always fully respecting the national security concerns of the countries concerned.

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Follow-up Activities

n  GMS-BF is in the process for resource mobilization (membership, man-power and finance)

n  GMS-FRETA Office is under the process to be established in Vientiane.

n  FRETA Legal Documents (Constitution, Article of Association, Activity Plan, etc.) are improved to fit the recommendation of stakeholders.

n  FRETA’s Article of Association will be signed in front of the Leaders at the GMS Summit in Myanmar on December 2011.

n  FRETA activities will start its activities in January 2012.

Thank You

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Road Asset Management: Background on Trends and

Practices

Shihiru Date Senior Transport Specialist

Asian Development Bank

Road Economics

•  Roads have two costs: Construction cost and Maintenance cost

•  These give you - Road user savings - For companies - you spend less on fuel

and vehicle maintenance and have more for expanding business

- For families, you have more money to meet education costs

“manage road assets…”

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Asset Management vs. Overloading The road is a structure – it deflects (bends) under

the weight of truck axles.

Overloaded trucks destroy the roads, and very quickly.

One truck overloaded with the goods of two trucks does the same damage as 30 trucks!

NOT THE DAMAGE OF TWO TRUCKS!

Biggest single cause of excessive wear and tear on roads

Overloaded trucks are not safe on the roads

They cannot be steered correctly, and

They cannot STOP.

They cause accidents.

Safety…

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Unfair Competition

Gross overloading is unfair to majority of law-abiding operators An operator overloading a truck daily can earn additional profits of several thousands of $ yearly

Why we have regulations?

•  To protect our roads from excessive wear and rapid deterioration

•  To ensure heavy trucks are used safely on our roads and are not a danger to others.

•  To stop unfair competition

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Trucks are regulated worldwide

In Europe and USA for example.

The vehicle at a weight on an axle or on an axle group as defined by the manufacturer and plated on the vehicle,

or

as declared by the road agency.

They are usually the same.

Load Limits of Various Countries

Country   Front   Rear  1   Rear  2   Gross  Vehicle  Weight  

Cambodia   6   19   (on  group)   25  

Lao  PDR   4.6   8.2   8.2   21  

Vietnam   -­‐   10   10   -­‐  

UK  (Europe)   plated   weight   and    <  11.6  

25  

USA    Washington  

DC  

9   15   (on  group)   24  

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Challenges…

Governance

Transparency

Political issues

GMS considerations for a unified regulation

Thank you!

For More Information

([email protected])

Web site: www.adb.org

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1

KINGDOM OF CAMBODIA MINISTRY OF PUBLIC WORKS AND TRANSPORT

GENERAL DEPARTMENT OF PUBLIC WORKS

Presented by PHENG Sovicheano Deputy Director General of Public Works

Vice Chair of National Permanent Axle Overload Control Committee (PAOCC)

14-15 September 2011

CAMBODIA AXLE OVERLOAD CONTROL PROGRAM SUCCESS

SO FAR

2

CONTENTS Ø Six Basic Principles for Success:

1.  National Comprehensive Axle Overload Control Program (Plan of Overload Equipment / Stations 2007-2011)

2.  Physical Infrastructure – Construction of Practical Permanent Weight Stations (PWS)

3.  Axle Overload Control Legal Tools 4.  Human Resources Capacity Development 5.  Ministry’s Strong Commitment & Good

Cooperation from Stakeholders 6.  Incentives Program

Ø  The Way Forwards

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Comprehensive Axle Overload

Control Program 2007-2011

Ø National Comprehensive Axle Overload Control Program was completed in Mar 2007

Ø  Distribution Plan (NCOCP) of Overload Equipment/ Stations (DPOES) was completed in Oct 2007

3

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National Comprehensive Axle Overload Control Program continued

Ø DPOES prepared in line with the Cambodia Road Development Master Plan (CRDMP) for the period of 2007-2011

Ø DPOES provides strategic locations of Permanent Weight Stations (PWS) and Portable Weight Scales Stations (PWSS)

Ø Road development in Cambodia within 2006 – 2010 faster than CRDMP

7

Physical Infrastructure –

Permanent Weight Station (PWS)

Ø Nine PWSs have been built so far, Seven financed by ADB and Two financed by JICA

Ø Four more PWSs to be built within the next 3-4 years

Ø PWSs have been and will be built on GMS routes or their diversion routes

8

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Overload Physical Infrastructure –

Permanent Weight Station (PWS) (continued)

Ø Design of PWSs: l  Practical and simple / easy to repair and

maintain •  Fast Weight in Motion (FWIM) with red/blue lights ;

save times for non-overload trucks •  Low Speed Weight in Motion (SWIM) with red/blue

lights for law enforcement l  PWSs are well equipped with roofing, all

necessary office equipment, communication equipment, cash safe, among others

l  CCTV Camera for good governance issue 10

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VIEW OF WEIGH STATION

HIGH-SPEED WIM

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Traffic Lighting for H-Speed WIM

LOW-SPEED WIM UNDER 5Km/H

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Traffic Lighting for H-Speed WIM

EQUIPMENT IN CONTROL OFFICE

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UNLOADING

Overload Control Legal Documents

Ø  Traffic Law , Chapt. 54 on overload limits & 84 on

penalty Ø  Sub-decree No. 141 dated 31 Aug 2009 on

establishment of (i) the National Axle Overload Control Committee (Policy Level), (ii) Permanent Axle Overload Control Committee (Management Level), & (iii) Overload Operation Team (Operation Level)

Ø  Prokas No. 411 dated 2 Sept 2009 on Load limits allowed on road network in Cambodia

Ø  Joint Prokas No. 536 dated 22 Sept 2010 on Penalty Application

Ø  Technical Operational Guidelines of PWS Ø  Equipment Operation & Maintenance Manual Ø  Internal Rules for Codes of Conducts 18

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AXLE LOAD REGULATION

19Ton

6Ton

10Ton

11Ton

24Ton

TOTAL LOAD REGULATIONS

25Ton

35Ton

16Ton

21Ton

30Ton35Ton

35Ton

40Ton

40Ton

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TECHNICAL OPERATION GUIDELINES OF PWS

Vehicle Management System (VMS)

Operation and Maintenance Manual

KINGDOM OF CAMBODIA

SINGAPORE TECHNOLOGY INVESTMENT CENTER

SAMIN DATA SYSTEM

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Human Resources Capacity

Development

Ø Gradual change of PWS staff mindset l  PWS is an working office l  Staff must wear uniform during working hours l  Staff to adhere to Internal Rules during

working hours Ø Continuing training of PWS staff in Axle

Overload Regulations, Technical Operational Guidelines, Equipment Operation and Maintenance Manual

Ø  33

Human Resources Capacity Development (continued)

l  Internal Rules, and Report Writing

l Axle Overload Control Forum with Transport Operators

l On and off media campaigns via TV and News Papers

34

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01- October-2009

01-October-2009

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02-October-2009

06-September-2010

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08-September-2010

Strong Commitment & Good

Cooperation among Stakeholders Ø MPWT to set Right Policy and Strategy

Ø Strong support, commitment, and critical understanding the overload issues by ADB

Ø Continuing support to the overload program by ADB and JICA

Ø Restructuring the PAOCC to meet the new challenges, e.g. re-structuring PAOCC, delegation of power to PDPWTs and Provincial Authorities

40

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Incentives Program

Ø Incentives of 60/40 percent, but it is gradually fade away due to decrease of overload activities

Ø Permanent Incentives regardless of bonus from penalties

41

The Way Forwards Ø Upgrade National Comprehensive Axle

Overload Control Program 2011- 2015 Ø Reform the Current Overload Structure

when needed to meet challenges Ø Address Good Governance Issue Ø Awareness Campaign to Truck Operators

on Overload Issue Ø Upgrade and maintain PWS Facilities Ø Regular Capacity Building

42

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43

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Innova&ons  of    Ministry  of  Rural  Development  

(MRD)  

Dr.  CHAN  Darong,  Director  General    Ministry  of  Rural  Development    

   

STATUS  OF  RURAL  ROADS

§  The  length  of  the  rural  road:  38,527km        (more  than  75%  of  the  total  road  network  :  44,300  km)  

§ Management  of  Rural  Roads:  Ministry  of  Rural  Development  (MRD)  

§  Na&onal  and  Provincial  Roads:  Ministry  of  Public  Works  and  Transport  (MPWT)

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RURAL  ROADS  IMPROVEMENT  PROJECT

§  The  project  improve  505.4  kilometers  of  priority  rural  roads  in  Seven  Provinces.  

§  Upgrade  road  surface  from  earth/latorite  to  Double  Bituminous  Surface  Treatment(DBST)    

§  Provide  reliable  all-­‐year,  all-­‐weather  access  to    agricultural  rural  areas  

§  Serving  about  560,000  beneficiaries.  

PROJECT  LOCATION  MAP

Target Provinces for Improvement of Rural Roads

LEGEND

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Overloaded  truck  damaging  road  surfaces  

STOP!  

Overloading!  

Damaged  roads!  

MRD  

CURRENT  SITUATION    ON  RURAL  ROADS

What  do  we  to  do?  

NEED  SUBDECREE    For  

AXLE  LOAD  CONTROL  ON    

RURAL  ROADS      

Mobile  Weigh  Scales  

Enforcement  

AXLE    LOAD    CONTROL    ON  RURAL  ROADS  

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AXLE LOAD CONTROL SUBDECREE���

Both  should  be  fined  and  unloaded  

Single  axle  overloaded    Over    10  ton  

Total  weight  overloaded  

Proposed  Ins&tu&onal  Structure  

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Implementation Scheme

Portable  Weigh  Scale  Accurate as Permanent

Weigh Station

Monitoring and Audit on Operation Schedules And Financial reports

To Ensure Transparency

Maintain Axle Load Data in

Attached Recorder

GOOD

Governance!!!

Overloaded trucks are fined

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MONITORING  AND  AUDIT  MECHANISM

1. Axle Load Control Data Recording

All measured axle load data will be recorded in the device attached to a mobile weigh scale together with the coordinates of location obtained by handheld GPS equipment.

2. Recording the Trace of Axle Load Mobile Unit

Operating trace of Axle Load Control Vehicle will be obtained by a GPS Positioning Recording Device attached to the vehicle of mobile unit.

3. Data Analysis and Audit

Axle load control data (Time and location) and the vehicle operating trace of mobile unit will be cross checked and analyzed.

Public  Awareness  

Leaflets  on  Opera&ons  of    Axle  Load  Control  

Newspaper  Ads  

Seminars  to  truck  drivers  and  truck  companies  

TV  commercials  

MRD  Hotline  for  complaints  

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COMMUNITY  PARTICIPATION

§  The  local  villagers  can  inform  MRD  the  appearance  of  heavily  loaded  trucks  on  rural  road  network  through  the  HOTLINE  of  MRD  shown  in  the  poster/leaflet  distributed  to  every  village.  

§  District  and  Commune  level  workshop  and  seminar  will  enhance  community  par&cipa&on.  

§ Protect  our  road  assets  ourselves!!!

Thank you !

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ENG. NGUYEN DUC THANG DEPUTY GENERAL DIRECTOR

DIRECTORATE FOR ROADS OF VIETNAM

Road Maintenance and Axle Load Control

Station Management in Vietnam

contents

Part 1. Road maintenance Management

P2. The overview of the axle load control station on roads

P3. The operations of axle load control stations in Viet Nam.

P4. The two pilot axle load control stations, NH1, Dong Nai province and NH18, Quang Ninh province.

P5. REcommendations

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“Directorate for Roads of Viet Nam (DRVN) is an government agency to advise and assist the Minister of Transport in state management on road transport and

implement state management tasks on road transport in the whole country.

DRVN’s duty and responsibility are defined according to the decision No 107/2009/QD-TTg dated 26 August 2009

of Prime Minister”

Directorate for Road Of Vietnam

Main tasks Ø  Researching strategy, planning and program- ming for the development of road transport; Ø  Participate in the setting up legislation regar- ding to road transport sector; Ø  Managing and maintaining the road network; Ø  Administrating road transportation sector, vehicle and the works of training, examina- tion for the issuing driver licence.

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Leadership

Planning and Investment

Dept.

Transport &

Legislation Dept.

Infrastructure &

Road Safety Dept.

Vehicle & Driver

Management Dept.

Road Management

& Maintenance Dept

Cabinet

Science,Technology, Environment

& Int’l Cooper’n Dept.

Financial Dept.

Personnel Dept.

Road Inspector

Road Construction

& Management Administration

Two Training Schools of Road

Technician: North

& Sourth

Driver Vocational

School

Five Road Project Management

Units: No.2, 4, 5 & 7

Road Transport Vocational

School

Road Maintenance & Management

Companies: 2xx, 4xx, 5xx & 7xx

Organisation of DRVN

Road Engineering

Center

Four Road Engineering

Centers: No. 2, 4, 5 & 7

Legend:

According to the decision No. 107 by Prime Minister Others

Four

Regional Road Management

Units: No. 2, 4, 5, 6 & 7

Total length: 280,008 km

0 100

Kilometers

200

Vietnam Road Network

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0 100

Kilometers

200

16,839

25,449

212,857

17,025 7,837

National  R oad Provincial  R oad Distrist/Commune  R oadUrban  R oad Specialized  R oad

Composition by Kilometers

Vietnam Road Network

Classification by Lengths

0 100

Kilometers

200

8.8%

18.6%

19.6%15.0%

16.2%

21.8%

Class  I C lass  I I C lass  I I IC lass  IV C lass  V C lass  V I

Vietnam Road Network

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0 100

Kilometers

200

Vietnam Road Network

Classification by Surface Types (km)

1.00% 10.00%12.00%

28.00%

49.00%

Cement  Concrete A tphalt  Concrete BituminousGravel E arth  R oad

National Road

Total Length: 16,839 km

0 100

Kilometers

200

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6

National Road

0 100

Kilometers

200

23.8%

18.6%

19.6%

15.0%

16.2%6.8%

Class  I C lass  I I C lass  I I I C lass  IVC lass  V C lass  V I

Classification by Lengths

B¶o  Léc§ång   Xoµi

Sãc  Tr ¨ng

Hßn  R¸ i

Cöu   Long

S©n  C h©u

Hång   C«ngMa  Cao

Qu ¶ng  C h©u

Ng«  Ch©u

Nam   Nin h

HuÕ

H¹  Long

B»ng   T-­‐êng

H¶ i   D-­‐ ¬ng

Thanh   Hãa

Nam   §Þnh

Th¸ i   Nguyªn

Vi Öt  T r×

Vi eng  C han

Louang   Pr a  Bang

Nh a  Tr ang

Qu y  Nh ¬n

§µ   L¹t

Bu«n  Ma  Th uét

Bi ªn  H oµ

CÇn   Th¬

C«n   §¶o

Phno mpen h

HuyÖ n   ®¶o  P hó  Q uèc

Mòi   Cµ  Mau

Xi  Ha   Nóc   Vi n

B¸ t  Tam  ban g

§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng

Vòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  Tµu

TP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  Minh

Hµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  Néi

VinhVinhVinhVinhVinhVinhVinhVinhVinhVinh

H¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  Phßng

0 100

Kilometers

200

ASEAN routes

International Roads in Vietnam

Total length: 4237 km There are eight routes: AH-1 : 1786 km (QL:1+22) AH-13 : 504 km (QL:6+279) AH-14 : 428 km (QL:5+1+3+2+70) AH-15 : 82 km (QL:8) AH-16 : 82 km (QL:9) AH-17 : 1018 km (QL:51+13+14+14b) AH-131 : 147 km (QL:12A) AH-132 : 190 km (QL:24+40)

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7

Asia routes

B¶o  Léc§ång   Xoµi

Sãc  Tr ¨ng

Hßn  R¸ i

Cöu   Long

S©n  C h©u

Hång   C«ngMa  Cao

Qu ¶ng  C h©u

Ng«  Ch©u

Nam   Nin h

HuÕ

H¹  Long

B»ng   T-­‐êng

H¶ i   D-­‐ ¬ng

Thanh   Hãa

Nam   §Þnh

Th¸ i   Nguyªn

Vi Öt  T r×

Vi eng  C han

Louang   Pr a  Bang

Nh a  Tr ang

Qu y  Nh ¬n

§µ   L¹t

Bu«n  Ma  Th uét

Bi ªn  H oµ

CÇn   Th¬

C«n   §¶o

Phno mpen h

HuyÖ n   ®¶o  P hó  Q uèc

Mòi   Cµ  Mau

Xi  Ha   Nóc   Vi n

B¸ t  Tam  ban g

§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng

Vòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  Tµu

TP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  Minh

Hµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  Néi

VinhVinhVinhVinhVinhVinhVinhVinhVinhVinh

H¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  Phßng

0 100

Kilometers

200

Total length: 2570 km There are five routes: AH-1 : 1905 km (QL:1+22) AH-14 : 428 km (QL:5+1+3+2+70) AH-15 : 82 km (QL:8) AH-16 : 82 km (QL:9) AH-17 : 73 km (QL:51)

International Roads in Vietnam

Transit Transport Corridors

International Roads in Vietnam

B¶o  Léc§ång   Xoµi

Sãc  Tr ¨ng

Hßn  R¸ i

Cöu   Long

S©n  C h©u

Hång   C«ngMa  Cao

Qu ¶ng  C h©u

Ng«  Ch©u

Nam   Nin h

HuÕ

H¹  Long

B»ng   T-­‐êng

H¶ i   D-­‐ ¬ng

Thanh   Hãa

Nam   §Þnh

Th¸ i   Nguyªn

Vi Öt  T r×

Vi eng  C han

Louang   Pr a  Bang

Nh a  Tr ang

Qu y  Nh ¬n

§µ   L¹t

Bu«n  Ma  Th uét

Bi ªn  H oµ

CÇn   Th¬

C«n   §¶o

Phno mpen h

HuyÖ n   ®¶o  P hó  Q uèc

Mòi   Cµ  Mau

Xi  Ha   Nóc   Vi n

B¸ t  Tam  ban g

§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng§µ  N½ng

Vòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  TµuVòng  Tµu

TP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  MinhTP.Hå  ChÝ  Minh

Hµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  NéiHµ  Néi

VinhVinhVinhVinhVinhVinhVinhVinhVinhVinh

H¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  PhßngH¶i  Phßng

0 100

Kilometers

200

Three routes: CK CÇu Treo - C¶ng Cöa Lß (QL:8+1+46) CK Lao B¶o - C¶ng §µ N½ng (QL9+1) CK Méc Bµi - C¶ng Vòng Tµu (QL22+51) CK Lµo Cai - C¶ng H¶i Phßng (QL70+2+3+1+5) CK Xµ XÝa - C¶ng N¨m C¨n (QL80+63+1)

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Annual Road Maintenance Allocation

Source: DRVN

Part 1. Road Maintenance Management

Maintenance Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Routine Maintenance 190 180.548 182.677 243.99 284.2 326.175 433 469.797 524.307 551.959 655.072 749.035

Periodic Maintenance 308 329.452 416.483 621.63 662.33 661.665 938.46 1 405.02 1 381.74 1 438.38 1 847.33 1 836.14

Total Planning 498 510 599.16 865.62 946.53 987.84 1 371.46 1 874.81 1 906.05 1 990.34 2 502.41 2 585.18

Total Implementation 676.334 738.111 826.832 1 157.23 1 320.53 987.84 1 371.46 1 874.81 1 906.05 1 990.34 2 502.41 2 585.18

Total Km 15 425 15 425 15 425 17 295 17 295 17 295 17 295 17 002 16 839 16 763 16 747 16 700

main issues

-  The Government budget for maintenance is low, about 40% - 50% of need for national roads. It concentrates only on the new investment, without the maintenance in the proper way.

-  The new technology, materials are not updated.

-  The management method by quantity-payment acceptance is inadequate. It does not encourage the diligence and creation of labor.

-  The existing road & bridge system is rapidly degrading (about 600 weak bridges, 60 - 70% national highways is low classes.

Part 1. Road Maintenance Management

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I. Allocation Solutions for Road Maintenance

1.  Increasing the Government budget for the management and maintenance.

2. Using the ODA capital in the management and maintenance according to the advice of sponsors.

3. Implementing the concession of toll collection right of improved highways and new highways.

4. Borrowing the loan for investment and repayment of loan through toll collection (borrow - build - toll collection and money return).

5. Socializing the management and maintenance to reduce the cost and permit other organizations to maintain the road.

6. Ensuring the long term and sustainable budget for the management and maintenance, the Road Maintenance Fund should be established.

Part 1. Road Maintenance Management

II. Road maintenance Renovation toward the modernization and efficiency

1.  Using the new technology and new materials such as raking, recycling, using the atphalt carbon, bitumen.

2. Doing pilot PBC projects in order to use the efficient capital and reduce the cost.

Part 1. Road Maintenance Management

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0 100

Kilometers

200

National Road Cầu Kiền, NH10

Đường NH 5

Đường NH22a (AH1)

Đường Pháp Vân – Cầu Giẽ

Cầu Mỹ Thuận (NH1)

Some pictures of completed projects

Main issues -  The road network has many kind of classes and constructed

according to various specifications and design standards.

-  It is damaged and shortened service life due to the affect of overloading vehicles.

-  Report of WB (2006): 1,000 vehicles on per day/night (accounting for 20%-30% out of the total number of vehicles on this route) is violated on overloading . In which, many vehicles contain their loads up to 80 tons or some with load axle is up to 54 tons (see table 1).

P2. The overview of the axle load control station on roads

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Table 1: Overload vehicles from 1995-2003

1995 1996 1997 1998 1999 2000 2001 2002 10 months of 2003

No of vehicles at the weight control stations

1,508,081

2,242,685

1,833,044

2,309,963

2,186,718

3,125,617

2,741,344

2,645,146

1,765,944

No of overload vehicle

288,429

5,277

2,691

2,536

2,723

3,292

4,149

3,110

3,006

The quantity of offload goods (ton)

6,044

13,858,220

10,470,810

% overload vehicles

19.13

0.24

0.15

0.11

0.12

0.11

0.15

0.12

0.17

(Source: The proposal on the weight control station by DRVN 2010)

P2. The overview of the axle load control station on roads

WHY to Establish the AXLE LOAD control stations on roads ?

- The overloading on roads has made a large number of

road routes, bridges degraded and shorten service life in comparison with their design life.

- Funds are inadequate to maintain road.

Establishment of axle load control station is necessary accordance with Article 28 and 51 in Road Law 2008 (re-edited).

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- 27 axle load control stations established in 1993

- After 10 year operations, the axle load control stations have performed well and efficiently in preventing from violated overloading. The proportion of overloading has reduced from 19.13% in 1995 up to 0.17% in 2003.

- 2003 - 2007: the axle load control station is stopped due to the corruption.

- Master Plan of weigh control station system on highway network established accordance with the Master Plan of Road transport toward 2010 and direction to 2020.

P3. The operations of axle load control stations in Viet Nam.

1. The technology of equipment - The equipments have met with the operation and management

requirement of Viet Nam.

- Reduction of human impacts and traffic jam thank to automation.

- The quality of equipment met the demand in the average level in comparison with the other axle load control stations in region.

- The basic equipment system (axle load in motion, permanent axle load detecting vehicles, camera and internet) has met its technical requirements.

- The Vietnamese software updated and adjusted to geographic condition and operation in Viet Nam.

P4. The two pilot axle load control stations, NH1, Dong Nai province and NH18, Quang Ninh province.

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2. The operation of two stations - They have been constructed under the organizing process

and they have been operating in 24/24 hrs and continuously through the weeks and months

- The co-ordination mechanism has done well between the axle load control stations, Transport Inspection, Transport Police, and Military Control. This mechanism has signed by Quang Ninh People Committee, Dong Nai People Committee, DRVN, and MOT.

P4. The two pilot axle load control stations, NH1, Dong Nai province and NH18, Quang Ninh province.

3. Disadvantages: - Lack of construction standards of axle load control station.

- The improper location of stations.

- Ununiformed equipment, low stability and low accuracy to delay operation of this station for maintenance and fixing problems.

P4. The two pilot axle load control stations, NH1, Dong Nai province and NH18, Quang Ninh province.

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4. General overview - Raising awareness of the drivers, vehicle owners.

- Limiting violations by detecting overload and over side vehicles.

- Reducing number of overload vehicles on national highways and. As reported in Dau Giay axle load station, the number of the overload vehicles down from 23.35% in 2009 to 19.17% in 2010 (see table 2).

P4. The two pilot axle load control stations, NH1, Dong Nai province and NH18, Quang Ninh province.

Quảng Ninh Dầu Giây

2010 2009 2010 No The total

vehicle volume

% The total vehicle volume

% The total vehicle volume

%

1 The total vehicle volume 1,981,228 100.00 5,376,076 100.00 6,066,847 100.00

2 The violated vehicles at the weight in motion

90,111 4.55 95,785 1.78 34,839 0.57

3 The total vehicles under the permanent weight control

4,196 4.66 54,783 57.19 44,548 127.87

4 The violated vehicles 2,667 63.56 41,990 76.65 36,010 80.83

5 The violated vehicles be fined 1,523 36.44 12,793 23.35 8,538 19.17

Table 2: The data of the axle load control stations

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1. MOT submit the Prime Minister for acceptance of construction

the axle load control station accordance with the Master Plan of weigh control.

2. Upon the experiences of the two pilot stations, DRVN will review the operation of above two pilot stations and consider station locations before further implementation.

3. The technology standards from the European COST-323 and the United Stated ASTM 1318 should be applied nationally for the axle load control station system. It should be followed the model: axle load in motion è Low speed axle load in motion è permanent axle load.

P5. REcommendations

4. The EPC contract for one project should be applied.

Priority on the Vietnamese devices and equipment ensure the Vietnamese enterprises to be active in maintenance work afterwards.

5.  The two pilot stations have been operated under the temporary mechanism while awaiting approval from Prime Minister to implement the Master Plan of weight control station to continue operate continuously these two stations.

6.  Viet Nam will implement different phases of this Master Plan, it is necessary to secure funds from international finance institutions.

P6. REcommendations

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THANK YOU.

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DEVELOPMENT OF CARBON NEUTRAL TRANSPORT CORRIDORS:

Study on low carbon freight and forestry (EWEC)

15th September 2011 Naeeda Crishna, Carbon Footprint Specialist,

GMS Environment Operations Center

•  GMS  ECP  is  delivering  economic  growth  in  the  GMS  through  developments  in  transport,  energy,  tourism,  agriculture  and  other  sectors  

•  Transport  corridors  are  expected  to  result  in  increased  transport  and    increased  Greenhouse  Gas  Emissions  (GHGs)  

Focus:  East-­‐west  Economic  Corridor  (EWEC)  

•  Transport  is  responsible  for  9%  of  GHG  emissions  in  the  GMS  (exc.  PRC).  •  LogisIcs  consItute  5.5%  of  global  GHG  emissions,  and  increasing  year  on  year  

especially  freight  transportaIon  

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Carbon  impact  of  road  transport  in  the  GMS  Development  of  sub-­‐regional  roads  in  the  GMS  come  with  significant  environmental  impacts,  parIcularly  increasing  GHGs.  

Direct  impact:    Increased  traffic  is  associated  with  increased  fuel  use  (e.g.  diesel,  petrol)  and    carbon  

emissions    

Indirect  impact:  Road  development  facilitates  

deforestaLon    and  land  use  change  –  this  leads  to    less  carbon  stocks  

Carbon  emissions  from  EWEC  

•  Emissions  from  EWEC  (transport  only)  ~  1  million  tCO2  in  2005  (freight  transport  ~  0.6  million  tCO2)  

•  Emissions  projected  to  increase  to  ~  3  mtCO2  by  2025  •  Overall,  55%  aWributed  to  freight  transport    

0.0 5.0 10.0 15.0 20.0 25.0

TH  -­‐ 1TH  -­‐ 2TH  -­‐ 3TH  -­‐ 4TH  -­‐ 5TH  -­‐ 6LAO  -­‐ 7LAO  -­‐ 8VN  -­‐ 9VN  -­‐ 10

1000'  tCO2  /  km  /  year

EWEC  -­‐ carbon  intensity  across  different  sections

*  Excludes  Myanmar

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 What  is  a  Carbon  Neutral  Transport  Corridor?  

•  CNTC  iniLaLve  has  a  dual  focus:  –  Transport    –  Forestry  

•  Transport  focuses  on  increasing  freight  efficiency,  reducing  freight  fuel  costs  

WHATProposed  CNTC  

definition

Net  zero  GHG  emissions

Increasing  fuel  efficiency  of  

freight  transport

Offset  emissions  through  

reforestation

HOWProposed  CNTC  feasibility  study

Baseline  /  carbon  footprint  assessment

Transport  policy  /  freight  

study

Carbon  sequestration  feasibility  study

Define  CO2  baseline,  projections  and  

target

Assess  policy,  pilot  activities  to  reduce  freight  emissions

Identify  forestry  carbon  

sequestration  projects

WHATProposed  CNTC  

definition

Net  zero  GHG  emissions

Increasing  fuel  efficiency  of  

freight  transport

Offset  emissions  through  

reforestation

HOWProposed  CNTC  feasibility  study

Baseline  /  carbon  footprint  assessment

Transport  policy  /  freight  

study

Carbon  sequestration  feasibility  study

Define  CO2  baseline,  projections  and  

target

Assess  policy,  pilot  activities  to  reduce  freight  emissions

Identify  forestry  carbon  

sequestration  projects

Increasing  fuel  efficiency  along  logisIcs  supply  chain  

Fleet  /  asset  Management  and  

opImisaIon    

• OpLmize  loads  • Vehicle  maintenance  

• Fleet  upgrade  /  retrofit  

• Use  of  alternate  fuels  

• Training  and  communicaLon  –  driver  programs  

Freight  Management    

• Freight  consolidaLon  

• Goods  monitoring    

• Packaging  

Warehousing  and  Inventory  

Management  

•  Building  Management  

•  Inventory  Management  

•  Use  of  energy  efficient  technology  

Network  

•  Reduce  blockages  e.g.  CBTA    &  customs  procedures  opLmizaLon  

•  Speed  management  

•  Freight  modal  split  

LogisIcs  can  be  divided  into  4  broad  areas  of  operaIons  where  improvements  or  measures  can  be  adopted  /  taken  to  reduce  GHG  emissions  and    fuel  costs:    

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Transport  policy  and  freight  assessment  study    

•  LogisLcs  costs  –  administraLon,  inventory  /  holding,  transport  

•  High  logisLcs  costs  in  the  region,  esLmated  at  ~  18%  of  GDP,  partly  aWributable  to  the  cost  of  transport  

•  LogisLcs  performance  affects  compeLLveness  of  corridors,  countries  

 

0.0%

5.0%

10.0%

15.0%

20.0%

2004 2005 2006 2007 2008

%  of  G

DP

Logistics  costs  in  Thailand   /  GDP

Logistics  Admin.

Inventory  Holding  

Transportation

Source:  NESDB,  2010  

Source:  World  Bank,  2010  

Lao  PDR Thailand Viet  Nam

Customs   113 39 53Infrastructure 132 36 66Logistics  quality  and  competence 137 39 51

Timeliness 89 48 76Overall  global  ranking 118 35 53

Logistics  performance  -­‐  World  ranking  out  of  155  countries

Transport  policy  and  freight  assessment  study    

Some  iniLal  findings  from  interviews  with  freight  companies  in  Thailand,  Lao  PDR,  Viet  Nam:  

•  Empty  running  -­‐  25%  to  50%,  beWer  logisLcs  management  capacity  needed  

•  Fuel  consumpLon  the  main  factor  affecLng  operaLng  costs  -­‐  need  for  fuel  efficiency  measures  

•  Vehicle  fleet  in  countries  need  improvement,  average  truck  life  over  20  years  

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Transport  policy  and  freight  assessment  study    

Business  barriers  and  fuel  efficiency  needs  vary  by  country  

Major  business  barriers Preference for  FE   schemes

-­‐ Thailand   • Not  enough  well  trained  drivers • CNG  supply  limited  in  some  areas,    costs  to   businesses  in  terms  of  delays • CompeLLon  from  bigger  companies

LogisLcs  management,   driver  training  

Viet  Nam • Not  enough  demand,  load  ( Da Nang),   • CompeLLon  from  other  companies,   • High  interest  rates    inhibits  vehicle  purchase  

Access  to  funding  for  new   vehicles,    capacity  building   in  fleet  management

Lao  PDR • Fuel  costs  are  a  big  proporLon  of  operaLng  costs • Access  to  financing  for  new  trucks  are  needed

Retrofiing  vehicles  with   fuel  efficient  technologies,   access  to  funding  (interest   rates  very  high)

Forestry  -­‐  carbon  sequestraIon  study  

•  Prefeasibility  in  2007  esLmated  tree  plantaLon  area  required  to  sequester  CO2  emissions  from  freight  (to  2015)  ~  150,000  ha    

•  Current  study  focus  on  Lao  PDR,  idenLfied  large  areas  of  degraded  forest  /  shrub  land    within  EWEC  provinces  that  could  be  planted  for  mulLple  benefits  

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PotenIal  outputs  and  acIviIes  in  a  CNTC  

•  Improve  load  occupancy,  strengthen  safeguards  

Avoid  fuel  use  /  GHG  emissions  

• With  manufacturers,  improve  access  to  insLtuLonal  finance,  guarantee,  insurance    etc.  for  clean  tech  /  fuel    

• With  operators,  establish  financial  models  to  upgrade  /  retrofit    fleet  •  Improve  driver  behavior  to  reduce  fuel  use  (example,  regularized  vehicle  maintenance)  

• Policy  iniLaLve  to  promote  fuel  efficiency  standards  (example,  through  FRETA,  GMS  governments)  

Reduce  fuel  use  /  GHG  emissions  

• Pilot  agreements  to  capture  funds  from  infrastructure  projects  (e.g.  carbon  levy)  to  ‘compensate’  for  carbon  sink  loss  which  could  be  used  to  fund  reforestaLon/  conservaLon  projects  

• Establish  community  level  mechanisms  for  forest  protecLon/  restoraLon    

Offset  GHG  emissions  /  reforestaIon  

Next  steps  

•  Technical  meeLngs  with  policy  makers  to  discuss  policy  barriers  

•  Workshop  for  freight  operators  to  validate  results  of  study  and  recommendaLons  for  freight  sector  

•  IdenLficaLon  of  possible  private  sector  transport  companies  could  be  involved  in  future  stages  of  work.  

•  Development  of  pilot  project  design  •  CDTA  on  low  carbon  transport  and  safeguards  for  Thailand  in  2013  

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Environmental  Safeguards  •  NaLonal  and  Development  partners’  environmental    policies  are  

subjecLng  infrastructure  development  project  to  stronger  safeguard  measures  

•  Thailand’s  road  and  highway    sub-­‐sector  safeguards  requirements    are  at  par  with  internaLonal  best  pracLces  (broad  framework  of  environment  laws  and  regulaLons)  

•  Monitoring  and  compliance  capacity  of  DOH’s  environment  unit  needs  to  be  strengthened    –  Project  screening  process  –  InnovaLve  miLgaLon/offset  mechanisms  –  Involuntary  reseWlement  policies  and  implementaLon  of  guidelines  –  Stronger  public  parLcipaLon  –  Environmental  performance  monitoring    –  OccupaLonal  health  and  safety  standards  and  guidelines  

•  Trainings  to  technical  staff  of  DOH  environment  unit  

THANK YOU!

[email protected]

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Integrated approach to addressing facilitation issues in international

land transport

Fifteenth Meeting of the GMS Subregional Transport Forum Vientiane, Lao PDR, 14-15 September 2011

Mr. Fedor Kormilitsyn

Economic Affairs Officer Transport Facilitation and Logistics Section Transport Division

2

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3

The Need for a Regional Strategic Framework

o  Results of facilitation efforts in 20 years n  Findings in latest UNESCAP study and other studies n  Some progress but limited and slow n  Int’l road transport still very difficult due to numerous non-

physical barriers

o  International conventions: limited participation o  Subregional agreements:

n  Long negotiation/ratification, yet implemented n  Legal conflicts in some areas in overlapped countries

o  Bilateral agreements: n  Quick negotiation/ratification n  Difficulties in formalities other than transport n  Constraints in transport services

o  Fragmented facilitation measures/projects

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What the Regional Strategic Framework can do?

o  Long-term common targets/strategy for member countries and their development partners (incl. UNESCAP) n  To increase effectiveness of facilitation measures/

projects n  To increase coordination among different facilitation

measures/projects n  To avoid inconsistency in facilitation efforts n  To avoid conflict between different facilitation

agreements/measures o  Direction of future possible development o  Reference and guide

n  Not legally bound like agreement n  No commitment required for implementation n  No timetable for implementation

Proposed Regional Strategic Framework (RSF)

o  Long-term common targets for essential issues n  road transport permits & traffic rights n  visas for professional drivers & crew n  temporary importation of road vehicles n  insurance of vehicles n  vehicle weights & dimensions n  vehicle registration & inspection certificates

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Proposed Regional Strategic Framework(RSF)

o  Strategies on key modalities for facilitation of international road transport n  Building an effective legal regime n  Wider application of new technologies n  Development of professional training n  Establishment/strengthening of national facilitation

coordination mechanisms n  Promotion of joint control at border crossings n  Promotion of economic zones at border crossings, dry

ports and logistics centres n  Further application of facilitation tools

RSF History o  First discussed at UNESCAP Regional Meeting

on Cooperation for Facilitation of International Road Transport, Beijing, China, 30 May - 1 June 2011

o  Further discussed at the Expert Group Meeting on Preparation for the UNESCAP Ministerial Conference on Transport, Bangkok, 14-15 July 2011

o  To be considered and adopted at the UNESCAP Ministerial Conference on Transport, Bangkok, 14-18 November 2011

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Specific issues relating to facilitation of International Railway Transport

o  Requirements for int’l railway transport n  Common laws/regulations/standards n  Close cooperation in operation

o  Systems used in the region n  Inter-Governmental Organization for International

Carriage by Rail (OTIF) n  Organization for the Cooperation of Railways (OSJD) n  Bilateral arrangements

o  Immediate need for unification n  Inter-Governmental Agreement on the Trans-Asian

Railway Network, entered into force in 2009 n  Priority shift to railway transport n  Initiatives on railway links

Common CIM/SMGS Consignment Note

o Common CIM/SMGS consignment note n  Applicable with effect from 1 Sept. 2006 n  Conditions of use

o  The CIM/SMGS consignment note may be used as a CIM consignment note in the area in which the CIM applies and as an SMGS consignment note in the area in which the SMGS applies. The same principle also applies to the use of the CIM/SMGS consignment note as a customs document

o Difficulties n  Contractual arrangements (legal provisions

and requirements) under CIM and SMGS and domestic laws

n  Limited use

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Unification of railway laws

o  Starting place: Pan Europe & Euro-Asian transport corridors

o  Facilitator(s): UNECE (and UNESCAP?) o  Step-by-step approach

n  MOU or resolution or declaration on general terms and conditions for Euro-Asian rail transport contracts including common consignment note

n  Model regulations for international rail transport n  International convention on international rail

transport o  Opportunity for the region:

n  Common system for more efficient railway transport across the region and with Europe

Thank you.

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GMS  :    New  Strategic  Framework  2012-­‐22  

15th  Mee9ng  of    GMS  Subregional  Transport  Forum  

14-­‐15  September  2011  Vien9ane,  Lao  PDR  

Vision  and  Goals  •  Mekong  sub-­‐region:  more  integrated,  prosperous  and  equitable  

•  GMS  Program  will  contribute  sub-­‐region  through:  – Enabling  policy  environment  and  effecAve  infrastructure  linkages  -­‐  facilitate  cross-­‐border  trade,  inv,  tourism  and  other  econ  cooperaAon;  

– The  development  of  human  resources  and  skills  competencies  

•  To  ensure  that  this  development  process  is  equitable  and  sustainable,  environment  and  social  interests  will  be  fully  respected  in  the  formulaAon  and  implementaAon  of  the  GMS  Program  

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Areas  for  Fine-­‐Tuning  

•  More  aEenAon  to  mulA-­‐sector  coordinaAon  and  cross-­‐sector  links  –including  balancing  development  with  concern  for  environment    

•  More  effecAve  focus  on  soGware  aspects  of  Program  –  as  complement  to  conAnued  focus  on  hardware;  also  recogniAon  that  new  SF  and  Program  will  be  more  knowledge  intensive  

•  More  selecAvity  and  more  prioriAzaAon  of  focus  areas  within  sectors  +  some  rebalancing  of  aEenAon  and  resources  across  sectors  to  enhance  overall  effecAveness  and  impact  of  Program  

•  Increased  links  with  broader  regional  integraAon  agenda  –  leading  to  more  clarity  on  what  regional  issues  will  be  covered  by  GMS  and  what  beEer  leG  to  other  regional  organizaAons  

GMS  Program  to  con9nue  to  focus  on  broad  range  of  sectoral  and  mul9sectoral  priori9es  

•  Developing  the  GMS  economic  corridors    •  Strengthening  road  and  rail  linkages  •  Developing  an  integrated  approach  to  deliver  sustainable,  secure  

and  compeAAve  energy  •  Improving  telecommunicaAons  linkages  across  the  GMS  countries  •  Developing  and  promoAng  tourism  in  the  Mekong  as  a  single  

desAnaAon  •  PromoAng  compeAAve,  climate-­‐friendly  and  sustainable  agriculture  •  Enhancing  environmental  performance  in  the  GMS  •  SupporAng  HRD  iniAaAves  that  facilitate  the  process  of  GMS  

integraAon  while  addressing  the  negaAve  consequences  of  greater  integraAon  

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GMS  Corridor  Development  •  New  SF  anchored  on  corridor  development  approach  •  Strategies  and  acAon  plans  prepared  for  each  corridor  that  

recognizes  inter-­‐linkages  across  sectors  while  focusing  on  few  high-­‐profile  iniAaAves,  including:  –  Further  infrastructure  development,  including  in  border  towns  and  

towns  along  the  corridors;  also  rural  road  development  to  feed  into  corridors  

–  Improvements  in  transport  and  trade  facilitaAon  (TTF);  comprehensive  approach  now  in  place  

–  BeEer  investment  promoAon  for  special  economic  zones  established  along  borders  

•  Further  development  of  corridors  also  needs  to  take  account  of  food  and  energy  security  and  climate  change  concerns  

•  ECF  will  conAnue  to  focus  on  development  of  corridors;  role  may  be  redefined  to  include  broader  range  of  cross-­‐sectoral  responsibiliAes  

Transport  •  Will  remain  criAcal  component  of  GMS  Program;  guided  by  

Transport  Strategy  2006-­‐15,  including  review  and  updaAng  •  Focus  on  encouraging  mulA-­‐modalism,  parAcularly  inclusion  of  

railways  (both  hardware  and  soGware),  improving  road  safety,  mainstreaming  climate  change  consideraAons  into  transport  development  etc  

       Energy •  Focus  on  both  hardware  and  soGware  -­‐-­‐  regional  power  

market;  energy  efficiency,  development  of  renewable  energy  sources  and  promoAon  of  clean  technologies;  and  promoAng  realizaAon  of  GMS  segments  of  trans-­‐ASEAN  gas  pipeline  

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TelecommunicaAons  •  Updated  sector  strategy  will  be  prepared  to  strengthen  sector  cooperaAon,  idenAfy  and  prioriAze  superhighway  network  infrastructure  needs,  build  capacity  for  use  of  advanced  technology,  and  promote  ICT  applicaAons  

 

Tourism  •  Guided  by  refocused  GMS  Tourism  Strategy  •  Focus  now  on  implementaAon  of  three  consolidated  programs  :  Tourism-­‐related  Human  Resource  Development,  Pro-­‐poor  Sustainable  Tourism  Development,  and  Sustainable  MarkeAng  and  Product  Development  Program  

 

Agriculture  •  GMS  countries  agreed  on  new  strategic  direcAons  in  agriculture  –  as  reflected  in  Core  Agricultural  Support  Program  Phase  II  

 Environment and Bio-diversity    •  Focus  on  bio-­‐diversity  conservaAon  and  poverty  alleviaAon,  climate  change  adaptaAon  and  miAgaAon,  and  capacity  development  

•  Capacity  Building  and  InsAtuAonal  Development;  Sustainable  Development  Planning  and  Decision  Support  Systems;  Strengthening  of  Country  Safeguard  Systems;  Ecological  Landscape  Management  

 

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Human  Resource  Development  •  Strategic  Framework  and  AcAon  Plan  approved  in  2009  aims  to  support  iniAaAves  that  directly  facilitate  process  of  sub-­‐regional  cooperaAon  and  integraAon  and  address  cross-­‐border  issues  directly  linked  to  GMS  integraAon  

•  AcAon  plan  covers  five  areas:  –  PromoAng  regional  cooperaAon  on  educaAon  and  skills  –  FacilitaAng  safe  labor  migraAon  within  the  GMS  –  SupporAng  communicable  disease  control  in  the  GMS  –  Enhancing  regional  cooperaAon  in  social  development  –  Strengthening  human  resource  development  cooperaAon  in  the  GMS  

ImplemenAng  the  SF  (1)  

•  Resource  MobilizaAon  – Financing  needed  for  further  hardware  investments:  mulAsector  investments,  roads,  railways,  energy,  telecommunicaAons  

–  In  addiAon  to  further  financing  from  ADB,  need  to  tap  into  other  official  sources  (bilateral,  mulAlateral,  global  funds)    

– More  private  financing  also  criAcal  including  through  public-­‐private  partnership  modaliAes  

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ImplemenAng  the  SF  (2)  

•  Knowledge  Plaborm:  –  Complex  soGware  and  second  generaAon  issues  require  high  quality  analyAc  work  and  effecAve  consensus  building  processes  

–  To  address  these  requirements,  knowledge  plaborm  should  be  established  as  integral  part  of  Program  and  necessary  resources  mobilized  

•  Strategic  Alliances  and  Partnerships:  –  GMS  should  help  drive  some  of  the  broader  objecAves  related  to  ASEAN  integraAon  

–  Program  also  needs  to  work  more  closely  with  other  sub-­‐regional  organizaAons  such  as  MRC,  BIMSTEC,  and  ACMECS    

ImplemenAng  the  SF  (3)  •  Capacity  Building  

–  Program  will  maintain  focus  on  capacity  building,  parAcularly  for  lower  income  countries  

–  Phnom  Penh  Plan  will  remain  a  priority  –  Other  sectoral  iniAaAves  will  also  have  capacity  building  as  major  component  

•  Engagement  with  Private  Sector  and  Other  Stakeholders  –  Program  recognizes  criAcal  role  of  private  sector  as  engine  of  development  

–  Enhanced  role  of  a  more  inclusive  GMS  Business  Forum  –  Program  will  reach  out  more  effecAvely  to  other  stakeholders  –  ConsultaAve  mechanisms  in  design,  implementaAon  and  monitoring  of  GMS  projects  will  be  emphasized  

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ImplemenAng  the  SF  (4)  •  Sectoral  Forums  and  Working  Groups  

–  Most  GMS  forums  and  working  groups  taken  steps  to  enhance  effecAveness  

–  May  be  desirable  to  establish  separate  secretariats  for  more  working  groups  (as  is  now  in  place  for  tourism  and  environment  working  groups)  

–  More  major  insAtuAonal  change/strengthening  needed  in  some  cases  e.g.  establishment  of  Regional  CoordinaAon  Center  for  power  trade  

•  Role  of  External  Partners  –  ADB  requested  to  retain  its  secretariat  role  –  Member  countries  also  requesAng  other  external  partners  to  more  acAvely  support  Program  –  as  financiers,  knowledge  partners  etc  

ImplemenAng  the  SF  (5)  

•  Monitoring  and  EvaluaAon  –  Absence  of  good  informaAon  and  effecAve  use  of  such  informaAon  constraining  effecAveness  of  GMS  iniAaAves  

–  Processes  for  monitoring  and  evaluaAng  ADB  supported  GMS  projects  very  helpful  but  not  subsAtute  for  good  overall  monitoring  and  evaluaAon  system  for  GMS  Program  as  a  whole  

–  New  SF  will  focus  much  more  specifically  on  results  to  be  expected  from  each  of  sectoral  iniAaAves  and  Program  as  whole  

–  Expected  results  will  be  carefully  monitored  by  Working  Groups,  GMS  senior  officials  and  GMS  Ministers  

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Results  Focus  of  the  new  GMS  SF  •  Common  framework  that  links  various  sectoral  forums  and  working  groups  to  specific  intervenAons,  specific  results  and  eventual  improvements  in  GMS  level  outcomes  and  impacts  

•  Five  levels  of  change  are  involved:  –  Level  1  –  GMS  Bodies  and  InsAtuAons  –  Level  2  –  GMS  IntervenAons  –  Level  3  –  Changes  in  Sector  Outputs  –  Level  4  –  Changes  in  Sector  Outcomes  –  Level  5  –  Regional  Impacts  

GMS    Bodies  

Sector  Outputs  

Sector    Outcomes  

Regional  Impacts  

GMS  Strategic  Framework:  Results  Framework –  Transporta9on  

Transport  Forum  

Common  technical  standards  for  interoperability,  operaAng  rules,  and  safety  standards  for  rail  

Priority  road  transport  corridors  in  place  

All  GMS  countries  connected  to  a  GMS  rail  network  

GMS      Inter-­‐

venAons  

Increased  road  and  rail  safety  

Increased  cross  border  movement  of  people  and  goods  

Increased  use  of  lower  carbon  transportaAon  systems  

Increased  mulAmodal  infrastructure  

Increased  resilience  of  transportaAon  infrastructure  to  climate  change  

Streamlined  and  harmonized  procedures  for  cross  border  movement  by  rail  

GMS  Rail  CoordinaAon  Office  

Technical  assistance  to  prepare  naAonal  rail  strategies  and  investment  studies  and  funding  strategies  

Upgrading  capacity  of  exisAng  rails  lines  

Sustainable  infrastructure  maintenance  throughout  GMS  transport  network  

Open  market  for  transport  services  across  GMS  borders  for  all  modes  

Increased  role  of  private  sector  in  operaAons  of  port,  mariAme,  rail,  and  road  subsectors  

Sub-­‐regional  transportaAon  infrastructure  and  systems  planning  

PromoAon  of  increased  efficiency  in  transportaAon  systems  

PromoAon  of  investment  in,  use  of,  and  compeAAon  between  transport  modes  on  routes  /  corridors  

Reduced  travel  costs  and  Ames  

Increased  economic  growth    and  reduced  poverty  across  the  GMS  

Controlled  GHG  emissions  

Improved  ecosystems  and  biodiversity  

Increased  climate  change  resilience  

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GMS  Strategic  Framework:  Overall  Results  Framework  

Tourism  Working  Group  

Tele-­‐communicaAons  Forum  

Transport  Forum  

Working  Group  on  Agriculture  

Working  Group  on  Human  Resource  Development  

Working  Group  on  Environment  

Sub-­‐regional  Energy  Forum  

Increased  use  of  energy  by  all  sectors  and  communiAes  parAcularly  the  poor  

Increased  cross-­‐border    flows:  investment,  traffic,  labour  migraAon,    with  reduced  human  trafficking  

Increased    access  to  informaAon  and  communicaAons  

Increased  tourism  with  reduced  negaAve  impacts  

Increased  sustainable  agricultural  producAon  

Economic  Corridors  Forum  

Increased  conservaAon  of  nature  

GMS    Bodies  

Sector  Outputs  

Sector    Outcomes  

Regional  Impacts  

GMS      Inter-­‐

venAons  

Economic  corridors  established  

All  GMS  countries  connected  to  a  GMS  rail  network  

Increased  generaAon  of  energy  from  indigenous,  low  carbon,  and  renewable  sources  

Increased  connecAon  of  GMS  country  power  systems   funcAoning  of  regional  power  market  

Improved  tele-­‐communicaAons  linkages  amongst  GMS  countries  

Improved  tourism  infrastructure  (pro-­‐poor,  pro-­‐women,  and  environmentally  friendly)  

Science  based  regional  safety  standards  operaAonal  

Increased  resilience  of  agriculture  to  climate  change  

Strengthened  protected  area  networks  

Enhanced  labor  migraAon  management  systems  and  social  protecAon  for  migrant  workers  

PromoAon  of  development  of  economic  corridors  and  trade  facilitaAon  insAtuAons  

PromoAon  of  environmentally  friendly  oil  and  natural  gas  logisAcs  and  network  

PromoAon  of  environmentally  sustainable  regional  power  trade  planning  

Capacity  building  and  promoAon  of  informaAon  and  communicaAon  (ICT)  technology  especially  for  rural  dwellers  

Upgrading  of  tourism  training  faciliAes  

Capacity  building  and  training  of  government  officials  ,  tourism  and  hospitality  enterprises  

Regional  sustainable  biofuel  and  biomass  policy  

DraGing  of  science-­‐based  harmonized  GAP  and  food  safety  standards  

EOC  operaAng  as  GMS  environmental  referral  and  service  center  

Strengthening  WGE  and  NSUs  

SupporAng  communicable  disease  control  and  HIV  and  AIDS  prevenAon  

PromoAon  of    regional  cooperaAon  in  educaAon  and  skills  development  

Sub-­‐regional  transportaAon  infrastructure  and  systems  planning  

Increased  economic  growth,  reduced  poverty,  and  environmental  sustainability    across  the  GMS  

Looking  Ahead    

•  SOM/TF  on  1  Nov  – Final  review  – Review  of  preliminary  indicaAve  investment  plan  

•  4th  GMS  Summit  19-­‐20  December,  Myanmar  – Endorsement  and  adopAon  

•  Regional  master  planning  exercise    

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Looking  Ahead  (2)    •  RMP  –  2  phases,  overlapping;  18th  MC  

– Phase  1:  DiagnosAcs;  AnalyAcal  assessment  at  regional,  naAonal,  sector  and  subnaAonal  levels;  macro  framework  (Jan-­‐Dec  2012);  pilot  GMS  Knowledge  Plaborm,  $  2  million  ADB  RETA  

– Phase  2:  Sector  and  mulAsector  planning;  project  prioriAzaAn;  select  pre-­‐project  feasibility  studies;  investment  financing  plans;  (July  2012-­‐Mar  2013)  

–  InsAtuAonal/capacity  strengthening  +  post-­‐planning/implementaAon  support  

 

                               THANK  YOU!