transport facilitation tools - homepage | escap · evaluation of solution(s) efficient cross-border...

Transport Facilitation Tools

Ms. Virginia TANASE

Chief, Transport Facilitation and Logistics Section Transport Division

Regional Meeting on Harmonization of Legal Instruments and Documentation for

Cross-border and Transit Transport by Road Dushanbe, Tajikistan, 25 and 26 May 2016

United Nations Economic and Social Commission for Asia and the Pacific

(ESCAP)

Vision: to be the most comprehensive multilateral platform for promoting cooperation among member States to achieve inclusive and sustainable economic and social development in Asia and the Pacific;

Convening power is used to bring countries together to address issues through regional cooperation, including issues that:

all or a group of countries in the region face, for which it is

necessary to learn from each other;

benefit from regional or multi-country involvement;

are transboundary in nature, or that would benefit from collaborative inter-country approaches;

are of a sensitive or emerging nature and require further advocacy and negotiation.

ESCAP Mandates

Global e.g. United Nations Charter, General Assembly Resolutions Vienna Programme of Action for Landlocked Developing Countries

for the Decade 2014-2024 established six priority areas that should be tackled in order to help LLDCs overcome their geographical condition. Three of them are the most relevant for transport (or transport is relevant for them

Priority 1: Fundamental transit policy issues

Priority 2: Infrastructure development and maintenance

(a) Transport infrastructure

[…]

Priority 4: Regional integration and cooperation

Regional e.g. ESCAP Commission Resolutions, Ministerial Conferences, Specific requests from countries

ESCAP: what we do and who does these?

Regional think-tank, analytical and policy work, norm setting, good practices for development , knowledge sharing and technical assistance to member States in the implementation of the recommendations;

Office of the Executive Secretary, seven substantive divisions, two «supporting» divisions, regional institutions, subregional offices;

Transport Division: Office of the Chief, three Sections (Policy & Development, Infrastructure, Facilitation & Logistics), 26 persons

Transport Facilitation and Logistics Section, supports countries in achieving regional operational connectivity for enhanced regional economic cooperation and integration through identification, assessment and elimination of non-physical

barriers, to ensure seamless transport across the Region

materialized in Transport Facilitation Tools and Recommendations

ESCAP Transport Facilitation Tools

Overarching goal: to support countries in achieving effective regional operational connectivity

by providing feasible harmonized, secure, efficient and

reliable options for facilitated cross-border transport

Applicability: specific or extended (national or international, corridors or entire networks), as needed

Existing Transport Facilitation Tools

ESCAP Transport Facilitation Tools(cont’d)

Two Regional Frameworks Regional Strategic Framework for the Facilitation

of International Road Transport

Regional Cooperation Framework for Facilitation of International Railway Transport

Four mutually complementary models Time/Cost-Distance Methodology: identifying barriers and

monitoring performance from starting to ending points

Secure Cross-border Transport Model: providing real-time monitoring en-route

Model on Integrated Controls at Border Crossings: simplified and streamlined procedures at border crossings

Efficient Cross-border Transport Model: more efficient transport arrangement across borders

Forthcoming: Standard Model for Logistics Information System, Model Bilateral and Subregional Road Transport Agreements, Model multilateral permits for international road transport

Regional Strategic Framework for the Facilitation of International Road

Transport

Long-term common targets/strategies for member countries and their development partners

To increase effectiveness of facilitation policies, measures, projects

To increase coordination and consistency among different facilitation measures, projects, efforts, initiatives, agreements

Direction of future possible development

Reference and guide Not legally binding like a treaty/agreement

Sets objectives but leaves implementation with member States

Regional Strategic Framework for the Facilitation of International Road Transport (cont’d)

Common targets/strategies for essential issues 1. road transport permits & traffic rights

2. visas for professional drivers & crew 3. temporary importation of road vehicles 4. insurance of vehicles 5. vehicle weights & dimensions 6. vehicle registration & inspection certificates

Common approaches for key modalities for facilitation 1. building an effective legal regime 2. wider application of new technologies 3. development of professional training 4. establishment/strengthening of national coordination

mechanisms 5. promotion of joint control at border crossings 6. promotion of economic zones at border crossings, dry ports

and logistics centres 7. further application of facilitation tools

Regional Cooperation Framework for Facilitation of International Railway

Transport

Identifies four fundamental issues for facilitation of international railway transport, indicates target and process

Standards for railway infrastructure, facilities and equipment

Break of gauge

Different legal regimes for railway transport contracts

Coordination of regulatory controls and inspections at border-interchange stations

Identifies eleven priority areas for cooperation among member countries to facilitate railway transport in the region

Regional Cooperation Framework for Facilitation of International Railway

Transport (cont’d)

Priority areas for cooperation among member countries to facilitate railway transport in the region participation in international railway organizations (OSZhD, OTIF)

formulation of subregional and bilateral agreements on the facilitation of railway transport

cooperation to standardize cross-border railway operations

use of advance passenger/cargo information system(s)

arrangements for the exchange of wagons

use of new technologies in train operations as well as in container tracking

developing human resources for cross-border railway operations (visas, training, conditions of service)

establishment of logistics centres/dry ports and maintenance hubs at or near border interchange stations, particularly along railway freight corridors

simplification of the intermodal interface of railways with maritime, air and road transport

promotion of the corridor approach in the facilitation of international railway transport

work towards paperless railway freight transport

Distance

Time/

cost

Transport to border

Border crossing

Transport to sea port

Wait at sea port

Sea transport

Time/Cost-Distance Model

Need to identify – isolate – address bottlenecks

Methodology for international route analysis

Objective: straighten the transport line and decrease the time/cost angle

Transport line

500 km 1000 km 2000 km 1500 km

Day 4

Day 3

Day 2

Day 1

$400

$300

$200

$100

Time/

Cost

angle

These straight vertical lines

illustrate periods where the

goods are inactive in the

transport chain and where

there is an increase in time

and/or cost.

Secure Cross-border Transport Model

CUSTOMS

A1, C1, C2, R1, R2, R3, E1, I1-7,

D1-23, D26, D27, D29, D32, D33,

D34, D35, D41, D44, H4, H5,H7

TRANSPORT

A1, C1, I1, I2, I3, I4, I8, D1,

D3, D12, D14, D15, D16,

D18, D24, D25, D26, D27,

D28, D29, D30, D31, D34,

D35, D39, D40, D41, D43,

D45,H4,H6

QUARANTINE

R1, R2, R3, I6, D1, D6, D7,

D8, D9, D10, D12, D19,

D35,

HEALTH

R1, R2, R3, F1, I3, D6, D9,

D12, D18, D19, D35, D36,

H2,H3

POLICE

R1, R2, R3, I3, I4, I7, D18,

D19, D26, D27, D28, D29,

D30,D43, D45, H4,H5, H6

IMMIGRATION

P1, D42, H5

Data provided by

government agencies

------------------------

H1-7

Advance electronic

information and/or data

submitted by carrier D1- 45

MODULE 1

Data collected

with automatic

equipment

MODULE 2

Document and

data processing

systems

MODULE 3

Shared

database

Automatic system of weight

and dimension control

------------------------

A1

Automatic vehicle plate

number/container code

recognition system

------------------------

C1-2

Automatic radiation

detection systems

------------------------

R1-3

Automatic fever scanner

------------------------

F1

Electronic seals and

vehicle tracking systems

------------------------

E1

In-depth inspection

equipment

------------------------

I 1-5

Automated passport control

------------------------

P1

Model on Integrated Controls at Border Crossings (Border Crossing Management Information System (BCMIS)

for goods transport)

CO

MM

ON

IN

TE

RF

AC

E F

OR

GO

VE

RN

ME

NT

AG

EN

CIE

S

Passport Control

COMMON DATA

EXCHANGE

PLATFORM

Documentary Check

(Customs,

Quarantine, Health,

Transport, etc.)

BC

P E

xit

Auto

matic

Data

Colle

ctio

n

Equip

ment

1 2 3 4

5 6

Advance Electronic

Information

Model on Integrated Controls at Border Crossings (BCMIS-based simplified workflow for the entry of goods)

CUSTOMS

In-depth Inspection

Area with Jointly

Used Equipment

TRANSPORT

QUARANTINE

HEALTH

POLICE

OTHERS

BC

P E

ntry

- Vehicle Movement - Information flow

Diagram key:

- Sequence of control procedures 1

Issues Trailer swap

Container swap

Manual transloading

No transloading

Solution/Arrangement Difficulty Cost

Transport permit for motor vehicle

x Multilateral agreement 5 5

Bilateral agreement 3 3

Temporary importation

Of prime mover x Accession to international convention

4 4


Double registration 1 3

Of trailer x x Accession to international convention

4 4


Double registration 1 3

Of container x x x Accession to international convention

3 3


.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Total number of issues 8 7.5 2.5 19

Total difficulty points (min) 14 16 6 46

Total cost points (min) 20 18.5 7 54

3. Comparison of cumulative barriers

1.Identification of issue

2. Evaluation of solution(s)

Efficient Cross-border Transport Models

Factor Trailer Swap Container

swap

Manual

transloading

No

transloading

Difficulty 2 2.25 1.25 4.5

Cost 2.5 2.5 1.5 5

Efficiency 1 3 5 1

Reliability 1 2 3 1

Total 6.5 9.75 10.75 11.5

Result: Understanding and

comparison of OVERALL benefit and challenge

Understanding factors underlying current practice

Weighting can be adjusted to reflect situation of a corridor or a group of countries

Model arrangements for trailer swap Model arrangements for passenger Model arrangements for railway goods Model arrangements for railway passenger Costs and benefits analysis

Efficient Cross-border Transport Models

Forthcoming Transport Facilitation Tools

Logistics Information System A public platform that allows for harmonized and simplified

information exchanges between transport and logistics service providers, relevant government agencies and private stakeholders at national and trans-national level.

B2B, B2G, G2G for all modes of transport

Functions:

o Data interchange: documents and messages transmissions etc.

o Information queries: database on service providers, track and trace etc.

o Information service: information on regulations, rules, vessels schedules, statistics etc.

o Administrative service: payment of duties, import export clearance etc.

Main benefits: transparency, traceability, efficiency, reduced cost

Existing national and transnational systems in the ESCAP region:LOGINK, COLINS, NACCs, Port-MIS, TradeXChange, NEAL-NET etc.

Illustrative diagram of overall architecture of a Logistics Information System

National Logistics

Information System (Country A)

Transnational Logistics Information Platform

Logistics Service

Providers e.g. Freight

forwarders, 3PL etc.

Carriers e.g. ship liners, cargo airliners, railway, trucks

etc.

Terminalse.g. seaports,

airports, dry ports etc.

Public Entitiese.g. customs, quarantine,

revenue, infrastructure

administrators etc.

Warehouses

Banks

Manufacturers

Shippers/BuyersConsignor/consignee

Country B

Country C

Country E

Country DOthers

as needed

Standardized national logistics information systems will allow for easy linkage to transnational logistics information platform(s)

Regional Study “The use of Logistics Information Systems for increased efficiency and effectiveness“

The Study includes examples of existing national and transnational systems, national experiences, recommended data and other technical standards and the Standard Model of Logistics Information Systems.

General Recommendations To utilize logistics information technology systems or

other ICT resources related to logistics services, in order to establish national logistics information systems as a public platform providing effective and efficient information services as well as future transnational interchange

To establish a regional mechanism promoting cooperation among countries in the development of national logistics information systems; ideally include therein the coordination of standards and the development of cooperation through a legal framework

To consider government investment or public-private partnerships to fund the development of logistics information systems

To adopt the “Standard Model of Logistics Information Systems” in the development of national system.

Model agreements

Model subregional agreement for international road transport

Model bilateral agreement for international road transport

Implemented with the support of a Model multilateral permit for international road transport

Regional Strategic Framework for the Facilitation of International Road Transport (cont’d)

Common targets/strategies for essential issues 1. road transport permits & traffic rights

2. visas for professional drivers & crew 3. temporary importation of road vehicles 4. insurance of vehicles 5. vehicle weights & dimensions 6. vehicle registration & inspection certificates

Common approaches for key modalities for facilitation 1. building an effective legal regime 2. wider application of new technologies 3. development of professional training 4. establishment/strengthening of national coordination

mechanisms 5. promotion of joint control at border crossings 6. promotion of economic zones at border crossings, dry ports

and logistics centres 7. further application of facilitation tools

Road transport permits and traffic rights

International road freight transport in ESCAP countries remains fragmented No (road transport) agreements => no traffic rights

Bilateral agreements => limited traffic rights

Multilateral (subregional) agreements (implementation remains challenging, positive effects below expectations)

Differing standards (vehicle weights) => sub-optimal loading

International movement of goods by road is largely confined to border areas and a limited number of roads

Transport permits (if any) are issued for one single trip along one designated route by one specified individual vehicle

Restrictions imposed on transit operations => goods carried by road often have to be trans-shipped at border => additional costs and delays

Road transport permits and traffic rights (cont’d)

Target

“Wider application of multiple-entry transport permits issued to a carrier for any compliant vehicle in its fleet. Such permits, valid for one year, could be used on multiple routes or road networks for both interstate and transit transport operations. In addition, multilateral transport permits should be promoted for wider application in parallel with bilateral transport permits”.

Regional Strategic Framework for the Facilitation of International Road Transport, 2012

Multilateral permits for the facilitation of international road transport

ASEAN Framework Agreement on Facilitation of Goods in Transit (1998) sets a package of facilitation measures including transit transport services and road transport permits / rights. However, the ASEAN ideals are yet to be fully realized, though the target year for the liberalization of international road freight transport services was 2015.

ECO Transit Transport Framework Agreement (1998), applies to transport in transit beginning or terminating in a Contracting Party by using designated roads. Road transport permits are issued in accordance with domestic legislation. However, the Agreement has never produced its expected positive effects.

Multilateral permits for the facilitation of international road transport (cont’d)

GMS Agreement on the Facilitation of Cross-Border Transport (CBTA, 1999), a comprehensive multilateral instrument aimed to strengthen the facilitation process of international road transport. Annex 9 explicitly deals with the exchange of permits for international operations as a crucial tool regulating access to international transport markets.

However, the implementation remains largely bilateral

pilot exchange of permits between Cambodia and Thailand (usable at one border crossing)

a certain exchange of permits between Viet Nam and the China (some routes opened for traffic without trans-shipment at the border)

permits exchanged between Cambodia and Viet Nam (extended number of authorized border crossing points)


Shanghai Cooperation Organization Agreement on the Facilitation of International Road Transport (2014, not yet in force): carriers have the right to perform international road transport operations by means of vehicles registered on the territory of one of the contracting parties, along designated routes.

The form of a multilateral permit is defined in an annex to the Agreement.


Intergovernmental Agreement on International Road Transport along the Asian Highway Network (negotiations concluded between China, Mongolia and Russian Federation in March 2016): carriers have the right to perform international road transport operations by means of vehicles registered on the territory of one of the contracting parties, along designated routes.

The form of a multilateral permit valid for one round trip within one calendar year is defined in an annex to the Agreement. The quota of permits is determined by a Joint Committee.


ECMT permit system

Permits can be used for freight transport operations by road between and in transit through territories of any member state. One and the same permit scheme and distribution regime is valid for all participating countries.

Type of operations allowed Bilateral carriage of goods between any member countries

Transit operations through territories of any member countries

Third-country / triangular operations between any member countries (by this, transport efficiency has significantly increased thanks to a higher utilization rate of vehicles used in the system going hand-in-hand with a lower share of empty runs.

NOT allowed: cabotage and operations between a member country and a non-member country


ECMT permit system (cont’d)

Permit-free operations: non-commercial transport, vehicles with a total laden weight below 3.5 tons, transport of damaged or broken-down vehicles, livestock transport, own-account transport, transport of objects of arts, etc.

Distribution of the basic quota: according to the weighted average of some of member countries’ main macro-economic indicators such as population and country area, GDP in absolute figures and annual growth rates, output of the road freight transport industry (in ton-km), external trade (total and only among ECMT member countries), etc. Correction factors have been applied, the purpose being to mitigate extreme differences between member countries of widely differing sizes.



Vehicles: stricter technical requirements have been introduced simultaneously with the growth of the basic quota targeting the protection of the environment,

aiming at the improvement of road transport safety and, last but not least,

responding to growing concern of a number of stakeholders about sharpening competition on the market and the increasing modal share of the road as against other transport modes.

Requirements have been introduced gradually and the use of compliant vehicles has been stimulated by bonuses / permit multipliers of the national quotas assigned to the individual member countries

Drivers: training requirements => professional competence



Important to note: ECMT permit system is not the result of an intergovernmental road transport agreement, it is the result of political will and commitment of ministers meeting in an intergovernmental structure to facilitate road transport

BSEC permit system

The ECMT permit system is replicated at a smaller scale following a private sector initiative, in eight of the member states of Black Sea Economic Cooperation (BSEC, an intergovernmental organization)

Initiator: Union of Road Transport Associations, a NGO in BSEC region

Only difference from ECMT permit: BSEC permit is valid for one single road trip

ESCAP Model for a multilateral permit

Diminishing transport permit problems, enhanced access to international road freight transport markets along Asian Highway Network and beyond

Great impetus to vehicle fleet modernization, application of higher vehicle technical, environmental and safety standards thanks to bonuses and permit multipliers for using modern vehicles in the system (+ beneficial spin-off for domestic fleet development)

Enhanced transport and logistics service quality thanks to regulatory requirements of the permit system (admission to the profession, work of crew, training)

Abandonment of inefficient border trans-loading practices of high transport and logistics costs

Reduced exposure to border crossing bureaucracy and possible illegal activities (rent-seeking, bribes, etc.); increased physical cargo security; driver in full control from A to Z

Uninterrupted contractual responsibility of the transport operator; improved relations of trust between business partners

Governments continue keeping full control of issuing permits to domestic and foreign transport operators; they have the right to carry out regular checks of permit use and apply specific disciplinary action against non-complying operators

Way forward

Model agreements for bilateral and subregional international road transport

Submitted for approval to the Ministerial Conference on Transport in November 2016

ESCAP Model for a multilateral road transport permit

Draft study sent to countries by mid-June

Comments expected by mid-July

Revised version sent to countries by end-July

Final draft discussed and agreed at a meeting on 9-11 August 2016

Model submitted for approval to the Ministerial Conference on Transport in November 2016

Way forward (cont’d) Foundation is established for an integrated intermodal transport

and logistics system in our region, with stepping stones for seamless cross-border transport and transit by road (e.g. AHN, TARN, intergovernmental agreements, facilitation models)

However,

Doors are not yet open to move all types of goods where needed. Our region’s diversity is a strength but we could do much better together and individually if our standards, regulations and practices were not as diverse as they are, but harmonized

global intergovernmental road transport norm-setting organization similar to ICAO, IMO, OSZhD, OTIF?

Regional transport operational connectivity is yet to be achieved

more active participation of countries in ESCAP activities?

improved countries’ capacity for implementation of existing agreements and models?

what could ESCAP secretariat do more and better?

Thank you for your kind attention!

For any further questions:

[email protected]

transport facilitation tools - homepage | escap · evaluation of solution(s) efficient cross-border...

Documents