Transport /transit and traffic rights among CLMV-T countries

-study outlines-

Ms. Virginia TANASEChief, Transport Facilitation and Logistics SectionTransport Division

Workshop on Strengthening Transport Operational Connectivity among Cambodia,

Lao People’s Democratic Republic, Myanmar, Viet Nam and Thailand (CLMV-T)

Hanoi, Viet Nam, 30 November-1 December 2017

Elements keeping international road transport between CLMV-T countries sub-optimal;

Elements uniting CLMV-T countries in international road transport;

Options ahead

Guiding lines of the presentation

Real life situations (1/4)

Trigger issue: imbalanced trade!!! Main effect: over-protection of national services providers.

Category Common Problems

General issues ▪ Different language for administrative process and road signalization▪ Border controls and time at borders for transit inducing higher transportation costs▪ National protectionism

Policy support(Legal system)

Policy Mechanism: ▪ Lack of an integrated approach and comprehensive planning▪ Weak institutional and policy coordination, rivalries▪ Lack of proper cooperation and collaboration in implementing the adopted policies and assumed commitments▪ Lack of holistic strategies, master plans and framework

Legal System:▪ Differences between national legal systems- Few harmonized procedures▪ Different technical and operational standards (vehicles’ weights▪ Rigid legal framework compared to rapid evolution of transportmatters (entry/exit points)▪ It takes time to integrate all newly adopted facilitation laws

Even at national level, legislation contains overlapping provisions androles, functions and responsibilities are not clearly defined.

Real life situations (2/4)

Category Common Problems

Infrastructure network and development(Organizations / Stakeholders & Budget)

Organizational Structure▪ Development gaps between countries- No homogeneous infrastructures- No homogeneous development ▪ Heavy procedures at borders (time-consuming, costly, and creacongestions)▪ Poor enabling environment (e.g. ICT) ▪ Inadequate platforms for dialogue between private transport operators and public administration

Budget:▪ Limited budget from governments, while▪ Significant resources are needed in most cases (infrastructure,facilities, technologies)▪ Unsecured funding sources / Limited role of the private sector development partners in financing▪ Higher cost to meet sustainable standards

Real life situations (3/4)Category Common Problems

Transport facilitation andlogistics(Implementation & Assessment)

Implementation Structure▪ Premature operations- No priorities set, human resource not prepared▪ Disorganized controls▪ Weak operationalization of intermodal nodes▪ Need for wider geographical coverage▪ Restriction of using different border gates for entry/exit (Cambodia with Viet Nam for example)▪ No transport/transit rights: high rate of empty return haulage

Facilitation perspective▪ No full harmonization of technical and operational standards▪ Different transport documents and associated liability regimes▪ Lack of common standard for data exchange▪ Difficulty in coordination and cooperation▪ Compatibility of transfer facilities▪ The absence of guarantee system for transit transport operation hinders transport operators to regularly perform transit operation

Assessment/Feedback:▪ Master plans have been designed but remain just papers (sometimesmade by expensive consultants) or take long to implement▪ Field operations differ significantly from policy expectations▪ Each border point/corridor has its own specificities

Real life situations (4/4)

Category Common Problems

Other elements hinderingan integrated nationallogistics plan

▪ Local characteristics- Transport system is inextricably linked to land use

configuration and travel needs- Travel of goods is the result of a firm’s logistical needs- Silo-decision in route’s plan (State’s/central

Government exclusive decision excluding local say in the decisions, especially around borders)

▪ Transport habits▪ Approach to bribery and corruption (fatality or unacceptable)

Human resource Significant difference in the level of competence between professionals (civil servants, policy-makers, service providers (transport, logistics)) as well as in the level of understanding and acceptance by civil society in various countries

Eurasian transport corridors

– Intercontinental & multimodal routes– On the Asian Highway and Trans-Asian Railway networks– 23 countries– 48 inland border crossing points– 36 seaports

NORTHERN CORRIDOR

CENTRAL CORRIDOR

SOUTHERN CORRIDOR

Road permits for bilateral transport: comparing to other sub-regions

Treaty/Country KHM LAO MMR VNM THAWTO Yes Yes Yes Yes Yes

WTO’s Trade Facilitation Agreement (TFA) Yes Yes Yes Yes Yes

WCO’s International Convention on the simplification and harmonization of Customs procedures (as amended)

YesA2,B1,C

YesAll but C,H,K

No Yes0 Annex

Yes0 Annex

Intergovernmental Agreement on the Asian Highway Network

Yes Yes Yes Yes Yes

ASEAN Agreement on Customs Yes Yes Yes Yes Yes

ASEAN Framework Agreement on the Facilitation of Inter-State Transport

Yes Yes Yes Yes Yes

ASEAN Framework Agreement on the Facilitation of Goods in Transit

Yes Yes Yes Yes Yes

Protocols 1 (Designation of Transit Transport Routes and Facilities), 3 (Types and Quantity of Road Vehicles), 4 (Technical Requirements of Vehicles), 5 (ASEAN Scheme of Compulsory Motor Vehicle Insurance), 8 (Sanitary and Phytosanitary Measures to Implement AFAFGIT), 9 Dangerous Goods

Yes Yes Yes Yes Yes

International/(sub)regional treaties (1/2)

Treaty/Country KHM LAO MMR VNM THAGMS Cross-Border Transport Facilitation Agreement (CBTA)

Yes Yes Yes Yes Yes

CBTA Protocols ???

Convention on Road Traffic, 1949 Yes Yes No Yes Yes

Protocol on Road Signs and Signals, 1949 Yes No No No Yes

Convention on Road Traffic, 1968 No No No Yes No

Convention on Road Signs and Signals, 1968 No No No Yes No

Customs Convention on the Temporary Importation of Commercial Road Vehicles, 1956

Yes No No No No

Customs Convention on Containers, 1956 Yes No No No No

International Convention on the Harmonization of Frontier Controls of Goods, 1982

No Yes No No No

International/(sub)regional treaties (2/2)

Do trial runs, pilots- until you gain self-confidence and build trust in each other;

Start with «low-hanging fruits» and progressgradually, but respect the timelines;

Take a corridor-based approach: MoU for the operation of corridor, Steering Committee;

Use ESCAP Frameworks and Models and ANY existing experience, be open to advice;

Involve at all stages all those concerned to ensure sustainability of the policies;

Options ahead (1/2)

Make clear what is not negotiable and agree on what you negotiate-quickly, to ensure relevance of what you have just agreed;

Do not commit just for the sake of the moment, assess well your capabilities to implement;

The more advanced: be willing to lower your requirements to a decent, trade-off level;

The less advanced: be willing to make an effort to reach a mutually acceptable level;

TALK, TALK, TALK between and among you, anytime and anywhere possible!!!

Options ahead (2/2)

Thank you for your kind attention!

tanase@un.org