Transport Trunk Corridor and Feeder Network Model Developing a Master Plan
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1 Transport Trunk Corridor and Feeder Network Model Developing a Master Plan Strengthening Railway Transport Connectivity in South and South West Asia New Delhi March 2017 Saroj Ayush
2 The Criticality of Connectivity for Southern and Central Asia Changed external context and increasing criticality of regional economic integration Despite geographical contiguity, least integrated region Untapped intra-regional trade potential in Southern and Central Asia, is estimated at more than 50 per cent of potential Southern and Central Asian subregion has also lagged behind in terms of poverty reduction Southern and Central Asia together accounts for 36 percent of world s extreme poverty Poor transport connectivity and facilitation prevents the subregion from exploiting benefits of geographical contiguity, scale economies, potential for regional production networks Prevents from benefiting from leveraging the strategic geographic location
3 Challenges to Connectivity Transport infrastructure gap is huge for Southern and Central Asian countries o Investments up to US$ 2.5 trillion may be required to cover the overall infrastructure gap in South Asia alone o Require increase in spending up to about 9% points of GDP annually until 2020 Transport infrastructure development scattered across disconnected subregional projects in the Southern and Central Asia o ECO, SAARC, BIMSTEC and ASEAN corridors are proceeded in isolation Poorly developed soft connectivity and facilitation Lack of region-wide transit and transport agreements High trade costs are significantly higher for intra-regional trade than for overall trade of Southern and Central Asian countries o Intra-regional trade costs in South Asia is markedly higher at about 114% compared to that of South East Asia at 76% and East Asia at 51% o Intra-regional trade costs in Central Asia is prohibitively high at 121% Hinders formation of regional value chains
4 Transport Network Options in the region Dependence on maritime transport Efficient and dominant mode of transport Single mode choice loads its inefficiency on to trade Huge hinterlands necessitates land transport adding to handling storage and movement costs Landlocked countries depend on huge land transit routes to ports Road transport Very vital role for small distances and last mile connectivity Important for bilateral and small regional groupings trade Not a viable option for long distances high volume trade Rail Transport Viable alternative to maritime shipping specially for landlocked and huge hinterland countries
5 Multilateral and Subregional Corridor Development ECO o o Facilitated by ECO Transit Transport Framework Agreement signed in 1998 and the ECO Transit Trade Agreement signed in 1995 Multimodal; both transport and trade facilitation coverage SAARC o SAARC Regional Multimodal Transport Study adopted in 2006 o Multimodal routes identified (10 road corridors and 6 rail corridors); Limited trade facilitation coverage BIMSTEC o BIMSTEC Transport Infrastructure and Logistics Study (BTILS) adopted in 2007 ASEAN o Master Plan on ASEAN Connectivity adopted in 2010 o Multimodal, comprehensive coverage including all dimensions of connectivity and trade facilitation measures
6 Multilateral and Subregional Corridor Development International North South Transport Corridor (INSTC) o 11 Member States BCIM Corridor o Cross-border transport project under Bangladesh-China- India- Myanmar Forum for Regional Cooperation SASEC Corridors South Asia Subregional Economic Cooperation o Covers 6 Countries - Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka o Facilitated by Trade and Transport Facilitation Monitoring Mechanism o Multimodal; broad coverage BBIN Cooperation o BBIN Motor Vehicles Agreement provides transit across Bangladesh, Bhutan, India and Nepal India-Myanmar-Thailand Trilateral Highway (IMT-GT) o Trilateral Motor Vehicle Agreement expected to be signed in 2016
7 Benefits of Broadening Connectivity Promote development of regional production networks o Wider connectivity networks enhance sourcing options for upstream firms and chances of market participation for downstream firms in the value chain o Efficiency of regional sourcing of inputs will increase proportionately with reach of regional transport networks to as many downstream production units as possible Maximize network externalities Strategic location of Southern and Central Asian subregion offers immense possibilities of inter-regional connectivity with EU and ASEAN o Besides facilitating intraregional trade can make Southern Asia a hub of East-West trade Major boost for least developed and landlocked countries in Central Asia and South Asia like Afghanistan, Bhutan, Nepal, Kazakhstan, Uzbekistan, Turkmenistan, Ajerbaijan and Tajikistan Easier to mobilize resources for infrastructure and institutional development in a broader regional framework o Synergies between overlapping corridor development programmes o Avoid duplication of investments
8 Contours of the Trunk Transport Corridor Feeder Route Master Plan Integration of subregional corridors into regional corridors by harmonizing both hard (physical) and soft (policy) infrastructure Asian Highway (AH) and Trans-Asian Railway (TAR) route networks at the Asia- Pacific level can guide the integration of transport corridors Collaboration between subregional organizations for coordination of subregional transport development projects Follow a building block approach as a part of an agreed Connectivity Master Plan Easier to mobilize resources for regional projects and helps prioritise infrastructure investments Leads to development of Economic Corridors when coupled with National Plans of Industrial Cluster Developments across identified routes
9 Three Asia-Europe Continental Land Bridges Southern corridor is the least integrated Southern corridor passes through the most populous subregions of the world Southern corridor has the maximum potential for consolidating factory Asia 9
10 ITI-DKD-Y Inter-modal Container Corridor Istanbul-Tehran-Islamabad-Delhi-Kolkata-Dhaka-Yangon Forms the trunk route of Southern Corridor Part of AH and TAR Networks Provides Multimodal transport links Linked with INSTC, CAREC, BCIM, and other important subregional corridors Gwadar Minimal infrastructural improvement required
11 Inter-Linkages of Regional Transport Corridors 11
12 ITI DKD route with INSTC Has the potential to serve as an integrated multimodal transport trunk corridor connecting South, South West Asia and Central Asia With the missing links in South East Asia being completed it can serve to connect East Asia with Europe adding to the development of trade network As the route serves the main population centres it can be developed as a vibrant economic corridor. The extension routes and the branch routes forming the feeder network of the trunk corridor on TAR connects the ports and industrial centres as well as caters to sub regional connections which include border crossings It integrates the hub and spoke model at regional levels and offer potentials for countries to develop as international transit hubs. It leverages the efficiency of maritime, rail and road transports.
13 ESCAP s Pillars of Multimodal Connectivity in the Asia-Pacific Asian Highways Network o Intergovernmental Agreement adopted on 18 November 2003 Trans-Asian Railways Network o Intergovernmental Agreement adopted on 11 June 2011 Dry Ports Network o Intergovernmental Agreement opened for Signature on 8 June 2013
14 UNESCAP Regional Cooperation Frameworks for Integrated Transport and Trade Facilitation Regional Cooperation Framework adopted for AH and TAR networks; Framework for Dry Ports under development Models for secure and efficient border-crossings and transit Provide policy guidelines for integrating transport and trade facilitation programmes Guidelines for formulating bilateral/subregional agreements to standardize operations Guidelines for adoption of new technologies Guidelines for simplifying intermodal interfaces Encourage participation of member countries in international transport conventions 14
15 Building Blocks for Inter-regional Connectivity Provide platform for cooperation between subregional organisations Common member states can play a vital role in advancing this process Taking stock of parallel developments in different parts of Southern and Central Asia o Recent developments include BBIN Motor Vehicle Agreement o Extension of Afghanistan Pakistan Trade Transit Agreement (APTTA) to include Tajikistan 15
16 Towards A Connectivity Master Plan Elements of the Connectivity Master Plan Stock taking of physical infrastructure requirements of trunk corridors and their feeder network Strategy for institutional cooperation between governmental agencies and multilateral bodies for implementing region wide transit and transport agreements Plan for building synergies between ongoing corridor development projects in the Southern and Central Asia subregion Plan for ICT development and digitization of documentation required for cross-border transit and transport in the subregion Plan for resource mobilization and framework for cooperation in this regard between governmental and multilateral agencies and the private sector 16
17 Regional Policy Dialogues The Way Forward Connectivity Master Plan Container train trial runs Facilitate Production Hubs and Processing Centers for Key Locations alongside the Corridors Platform for Coordination amongst subegional frameworks 17
18 Thank you 18
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