Bhutan’s Status of Transport Connectivity including Transit

Facilitation in South and South-West Asia

Tshering Wangdi Chief Engineer

Department of RoadsMinistry of Works & Human Settlement

Pema WangchenJoint Collector

Department of Revenue & CustomsMinistry of Finance

Royal Government of Bhutan

COUNTRY LOCATION

BHUTAN AT A GLANCE(2013)

Area (sq.km) - 38,394- Dzongkhags /Districts - 20- Geogs (blocks) - 205- Capital - Thimphu- Population (2012) - 7,20,679 - Currency - Ngultrum- National Language - Dzongkha- Per capita GDP - Nu.138,132

(2012)- GDP growth rate - 4.6% (2012)- Forest cover - 72.5%

ROAD TRANSPORT VISION 2020 MILESTONES

Bring 75% of rural population within half-day’s walk from nearest road

Upgrade current national trunk roads to carry30-ton capacity trucks

Complete second transnational highway (Southern E-W Highway)

Construct “dry ports” at Phuentsholing, Gelephu, and Samdrupjongkhar

Introduce domestic air services Improve external air links with full ILS

capacity

ROAD SECTOR MASTER PLAN(2007 – 2027)

Construction of Southern East-West highway (794 km) –Primary National

H/way)

New construction : 506 km

Upgradation : 288 km

Secondary National H/way : 537 km(inter Dzongkhag connectivity)

Dzongkhag Roads : 2654 km

TRANSPORTATION SYSTEM

Road is the principle mode of transport in the country

Construction began in early sixties and the national road network expanded over 10,000km

All twenty districts are connected by road network Road construction in the country is costly and

challenging due to rugged mountainous terrain Air services operate to nine destinations in five

countries: Delhi, Kolkata,Gaya,Guwahati,Bagdogra (all in India)

TRANSPORTATION SYSTEM CONTD.

Air services operate to nine destinations in five countries:Delhi,Kolkata,Gaya,Guwahati,Bagdogra (all in India) Dhaka,Katmandu,Bangkok and Singapore.

A private airline has been licensed and commenced operation in 2013

Domestic air services commenced since December 2011

No rail transport, no inland water transport and no dry port

Passenger and freight in land transport fully privatized

TRANSPORTATION SYSTEM CONTD.

Motorization has been rapid with the number of vehicles increasing from 13,584 in 1997 to 67,499 in 2012 with an annual increase of about 11%

Overall 100 vehicles for every 1000 population Vehicle model split Trucks/Buses -14% Light vehicles/passenger cars -58% 2Wheelers -14% Taxis -08% Others -06%

HIGHWAY NETWORK

ROAD NETWORK IN KM(June 2013)

Expressway - 6 Primary National Highway - 1860

Secondary National Highway - 578 Dzongkhag Road - 1178 Thromde (Urban) Road - 350 Farm Road - 5376 Access road - 1230

---------------------------Total: 10578 -----------------------------

11th 5 YEAR PLAN PROGRAMMES(July 2013 to June 2018)

Construction of Primary National H/way - 305 km

Upgradation of National Highways - 562 km

Construction of Dzongkhag Road - 122 km

PHUENTSHOLING – THIMPHU HIGHWAY (AH48)

Year of construction -1968 Length (km) -179

Section Length No. of Lanes Class

Phuentsholing-Chukha 82.5 km 2 II

Chukha-Damchu 43.5 km 1 IIIDamchu-Thimphu 53.0 km 2 II

Present traffic volume - 1500-2000 vpd

ASIAN HIGHWAY (AH48) FROM PHUENTSHOLING TO THIMPHU

STATUS:

Phuentsholing to Chukha (82.5km) - completed

Chukha to Damchu Bypass (24 km):

Formation cutting - 98% completeBlacktopping - 44% completeCompletion date - 2015

Damchu toThimphu (53km) - completed

CONSTRUCTION OF SOUTHERN EAST-WEST HIGHWAY (SEWH) - 723 km

Existing - 338 km Missing links - 385 km

Connect economic hubs in southern part of the country and onward connection to India

Link to the Asian Highway Network in the sub-region and beyond

TRANSPORT LOGISTICS - INTERNATIONAL CONNECTIVITY

International Airport (Paro) - 1 No. Domestic Airports - 3 Nos.

(Bumthang, Yonphula, Gelephu) Nearest international sea-port is Kolkata in

India (750 km by road from Phuentsholing) Nearest railway stations from Bhutan:

-Rangia, Bongaigaon, Kokrajhar (Assam, India)-Hashimara, Alipurduar, New Jalpaiguri (W.Bengal, India)

ROAD LINKAGE TO NEIGHBORING COUNTRIES

Point in BHUTAN Point in INDIAPhuentsholing Jaigaon

Samtse ChamurchiGelephu DadghariSamdrupjongkhar DarrangaNganglam PathsalaGomtu (Pugli) Birpara

AH48 Thimphu-Phuentsholing in Bhutan

AH48 &AH2 (for connectivity with India,Nepal & Bangladesh)

Phuentsholing-Jaigoan-Hashimara-Phulbari-Panitanki-Kakarvita for Bhutan, India & Nepal

Phuentsholing-Jaigoan-Hashimara-Changrabandha-Burimari-Banglabandha for Bhutan, India & Bangladesh

INTERNATIONAL CONNECTIVITY

CORRIDORS IDENTIFIED UNDER SASEC ROAD CONNECTIVITY PROJECT

Nganglam-Dewathang H/way (75km) Pasakha Access Road (2km) Northern bypass in Phuentsholing

(2.7km) Mini Dry Port at Phuentsholing Study for links for regional

connectivity from Gomtu/Pugli to Dalmore/Birpara and Motanga(Bhutan)/Bokajuli(India)

CORRIDORS IDENTIFIED UNDER SAARC REGIONAL MULTIMODAL TRANSPORT STUDY (SRMTS)

Road corridors:1. Thimphu-Phuentsholing-Jaigaon-

Hashimara-Kolkata/Haldia2. Thimphu-Phuentsholing-Jaigaon-

Burimari(Bangladesh)-Mongla/Chittagong3. Samdrup Jongkhar-Guwahati-Shillong-

Shilhet(Bangladesh)-Dhaka-Kolkata4. Thimphu/Paro-Phuentsholing-Hashimara-

Siliguri-Kakarvita (Nepal)

CORRIDORS IDENTIFIED UNDER SAARC REGIONAL MULTIMODAL TRANSPORT STUDY (SRMTS)

Rail corridor:Pasakha-Toribari-Hashimara (India)Feasibility study being carried by

Government of India to connect five border towns in Bhutan from the nearest Indian railheads.

CROSS-BORDER TRAFFIC MOVEMENT

Being landlocked, sub-regional, regional and international connectivity by land transport is possible through India only

Phuentsholing near Jaigaon in West Bengal is the main gateway for international trade (over 82%)

About 55%import and 94% export takes place with India Trade with other countries within the SAARC region is marginal Transport connectivity with Nepal and Bangladesh is possible

through India only Sea port in India (Kolkata and Haldia) are the main Maritime

gateways for international trade with other countries other than Nepal and Bangladesh

KEY CHALLENGES FOR ROAD INFRASTRUCTURE

DEVELOPMENT AND TRANSIT TRANSPORT OPERATION

High construction and maintenance cost due fragile, rugged mountainous terrain and winding roads

Shortage of fund Fledgling construction industry Lack of appropriate construction technology Shortage of trained manpower Transport and transit through India in absence of Inland

container depot Small volume of cargo makes it unfeasible to book railway

wagons or use bigger containers to and from the sea port.

SUB- REGIONAL AND REGIONAL TRADE FACILITATION INITIATIVES

Accession to the Revised Kyoto Convention (RKC)

-ADB assistance being sought under ADB funded SASEC Trade Facilitation Program to assess and update Bhutan’s legal and regulatory regime for accession to RKC;

Automated customs management

-Automated Customs Systems (ACS) being replaced by Revenue Administration Management Information System (RAMIS) being developed under ADB funded TA

SAARC Regional Multimodal Transport Study adopted in 2007

South-Asian Sub-Regional Economic Cooperation Program of the ADB completed in 2005 covering 4 countries: India, Nepal, Bangladesh and Bhutan

Bay of Bengal Initiative for multi-Sectoral Technical and Economic Cooperation or BIMSTEC Transport Infrastructure and Logistics Study covering Bangladesh, Bhutan, India, Myanmar, Sri-lanka and Thailand.

Bilateral Trade and Transit Agreement

Agreement on Trade and Commerce with India.Allows free trade between the two countries through designated entry and exit pointsTransit of cargo from sea-ports are subject to very minimal checksThere is also free movement Bhutan registered vehicles in India

Agreement on Trade and Commerce with BangladeshInternational trade takes place through 6 entry and exit points from the Indian side and 8 from the Bangladesh side

Agreement on Trade and Commerce with NepalNo formal trade and transit agreement so far.Panitanki near Siliguri in India is designated as the transit route for Bhutan-Nepal trade

Bhutan Customs: Current Status

For Third country Imports- majority of the goods are transported in containerized cargo.

Goods coming from India- are transported in open trucks

Free entry and exit of vehicle to the country within proximity 7-10 KM

Multi-enforcement agencies involved to clear the goods

BHUTAN CUSTOMS: CHALLANGES

Lack of tracking equipments for tracking the movement of good for predictability purpose

Goods transported in open truck rather than in containerized vehicle.

Lack of multi-access bypass from importing country to exporting countries.

Bad road condition. Multi check post on the highways (local

authorities) Timely border coordination meetings

THANK YOU

&

TASHI DELEK