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Review of Development of Transport and Logistics Network in North-East Asia

Madan B. Regmi, DEng.Transport DivisionUNESCAP, Bangkok

Seminar on Development of a Comprehensive Transportand Logistics Network in North-East Asia Subregion

21-22 March 2013, Seoul

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Outline:Rio+20 Outcome (Transport and Logistics)Integrated International Intermodal Transport

Asian HighwayTrans-Asian RailwayDry Ports of International Importance

Logistics PerformanceIntermodal Transport CorridorsThe Way Forward

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Rio+20 Outcome (Transport-Logistics)

Three pillars of sustainabilityEconomicSocialEnvironmental

Transport and mobility are key to Sustainable DevelopmentEfficient movement of goods and peopleEnergy efficient multimodal transport systemClean fuels and vehiclesIntegrated approach to planningAffordable and sustainable transportSustainable transit transport- need of landlocked and transit countriesCapacity development

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The Vision for Asia and the Pacific

Development of an international integrated intermodal transport and logistics system

Busan Declaration, 2006Ministerial Conference on Transport, 201210 Thematic Areas including:

Transport infrastructure developmentTransport logisticsSustainable transport developmentInter-island shipping

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Status of Transport Development in NEA

2576.3%3.1%105,565 ROK

31,200 DPRK

2066.20%1.20%1.14 mRus. Fed.

3191.80%0.50%1.2 mJapan

2712.5%6.2%4 mChina

480.8%49,250Mongolia

car/1000 pop.

Veh. growth

Rd Growth

Length, Km

Country

Road Railway

1,43560.4%3,575ROK

1,43581%5,235DPRK

1,520 51%85,200 RF

1,067, 1,435 61%20,000 Japan

1,435 46%91,000 China

1,5201,810Mongolia

Gauge, mmElectrified

Length, KmCountry

Railway considered more environmental friendlyStill majority of investment is in Highways (75% road, 7-15% railway, 3-7% IWTHigh speed railway developmentsLimited use of inland water transport and coastal shipping in Asia

(ESCAP, 2011)

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143,000 km, 32 countries

•Intergovernmental Agreement on AH•29 Parties•Obligations of the Parties•Negotiating mechanism•Working Group on the AH

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AH Conformity to Design Standards (2010)

Primary 20,915 km

15%

Class I24,044 km

17%

Class II55,809 km

38%

Class III31,300 km

22%

Below III10,003 km

7%

Other1,038 km

1%

Need investment to upgrade 10,000 km of AH routes

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Upgrading the Asian Highway networkProgress of network development

14%

9%

15%

26%

37%

13%7%

22%

39%

17%

0%

10%

20%

30%

40%

50%Primary Class I Class II Class III Below III

20062010

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Trans-Asian Railway

•22 signatories•18 Parties•Entered into force on 11 June 2009•Working Group on TAR

117,000 km, 28 countries10,500 Km Missing Links

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Myanmar - ThailandMyanmar - India

China - Kyrgyzstan

ASEAN - China

Islamic Republic of Iran – Azerbaijan

(ongoing)

Thailand - Cambodia

Cambodia - Viet Nam

Thailand - Lao PDR(inaugurated March 2009)

Turkey - Georgia

(ongoing)

Islamic Republic of Iran – Armenia

Islamic Republic of Iran – Pakistan

(completed end 2008)

Building the missing linksCompleting the Trans-Asian Railway Network

Islamic Republic of Iran – Afghanistan(ongoing)

US$ >25 billion

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Intermodal Transport and Integration

Transport LinksIntegration of road (AH), rail (TAR), inland waterways, shipping and port networks

Transport NodesIntermodal nodes/interfaces (ICDs, Dry ports, Airports, Ports, River Ports)

Transport ServicesPrivate/public sector

Integration of transport modesDevelopment of logistics centres and dry portsFacilitate and promote modal shift

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Dry Ports: Concept

Concept is to develop facility similar to ports away from ports in inland areasAsia- early stage of development -12 landlocked countriesIdeally connected by railways Climate change and environmental aspects

Relieve congestion and ports and roadsPotential of mode shift (Road to rail) and emissions reduction

Consolidation – reduce less than truck loads runs and reduce number of trucksImproved logistics can reduce 10-20% emissions (OECD, 2010)Consolidation and distribution centres in UK have combined 25.7% emissions reduction (Zanniand Bristow, 2009).Replacement of trucks by freight train from port to dry port in Sweden led to 25% CO2 emission reduction (Roso, 2007).

Regional economic development: industrial centres, free trade areas43% of freight modal shift to railways, 30% less CO2 emission (Laos-Thailand corridor)

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Development of Logistics Centres and Dry Ports

Intergovernmental Cooperation- AgreementPromote development of dry ports of international importanceFacilitate recognition of dry ports and investmentImprove operational efficiency of intermodal freightEnhance environmental sustainability of freight transport- mode shift

Structure of the AgreementMain textAnnex I: List of dry ports of international importance in countries Annex II: Guiding principles for development and operation

ProgressThe Committee on Transport, 10-12 October 2012, Bangkok, approved the finalized text of the AgreementAdoption at the 69th session of Commission in April 2013Opening for signature- 4-8 November 2013, Bangkok, Forum of Asian Minister of Transport

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Dry Ports of International Importance (NEA)

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Logistics Performance Index, 20121. Customs, 2. Infrastructure, 3. International shipments, 4. Logistics competence, 5. Tracking and tracing, 6. Timeliness

(World Bank, 2012)

LPI, 2012

4.13

3.93

3.52 3.7

2.25 2.

58

1.61

00.5

11.5

22.5

33.5

44.5

Singapor

e

Japa

n

China ROK

Mongo

lia

Russian

F.

Burund

i

LPI I

ndex

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What are possible solutions to improve logistics performance?

Integrated transport planningImprovement of infrastructure and servicesHarmonization of rules and processTransport and trade facilitation measuresApplication of ICT

container tracking-RFID, GPS border crossing and securitycustoms clearance technology-EDI

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Intermodal transport corridorsCorridor based approach

InfrastructureFacilitationOperation

Review of condition of infrastructure, process and procedures and analysis of operation time, costsNeed to measure and continuously work to improve efficiencyImprovement and upgrading of infrastructure is an ongoing process- need resources and timeImproving operations and facilitation measures needs COMMITMENTS

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International Transport Corridor Study in NE & CE Asia(2010)International Transport Corridor Study in NE & CE Asia(2010)

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2

3

4

5

6

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Corridor 1: Incheon-Ulaanbaatar

(Data from private sector and Govt. Dec 2010)

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Corridor 1 & 3: Zamin Uud-Yekaterinburg

(Data from private sector and Govt. Dec 2010)

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The Way Forward to Improve Transport and Logistics

Integrated transport planningEnsuring economical, environmental, and social sustainability of transport system and servicesInnovating financing of transport and logistics system-engaging private sectorPromoting development of intermodal transport corridorsTransport facilitation and logisticsUtilize transport infrastructure for cross-border tradeCapacity developmentSharing and exchange of good practices

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