Asia Road Network Transit Time

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Cross Border Transport in the GMS Chiang Mai
March 18th 2008 Paul Apthorp


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Modes of Transportation
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GMS Economic Corridors
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TNT - Road Network Development
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4
2
3
5
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TNT European Road Network
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TNT Middle East Road Network
Jordan/Levant
Kuwait
IRAN
BAHRAIN
Dhahran
Doha
DXB
Riyadh
AUH
Sila/Batha
Muscat
JBA
United Arab Emirates
Jeddah
Saudi Arabia
Oman

Yemen
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China
Nanning
Myanmar
ARN Phase 2
Hanoi
Laos
Vietnam
Thailand
Danang
Bangkok
Cambodia
Phnom Phen
Ho Chi Minh
Malaysia
Kuala Lumpur
Singapore
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Routing Map
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Cross Border Operations

• Between GMS Countries
• The Current Situation !!

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The Infrastructure is in Place
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New Roads and Bridges
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Costly Border Transshipment ..still exists
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Did You Bring Any Help ?
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Transshipment -Costing Time and Money
2 Trucks Labour ..when 1 will do !
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Transshipment on the EWEC in Laos Time consuming
costly
Why is this Necessary ?
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Different Vehicle Dimensions Makes
Transshipment difficult and time consuming
Thai Vehicle
Vietnamese Vehicle
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3 Extra Tons of Iron on Each Truck
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(No Transcript)
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Dont Waste the Investment !
Integral trailers Lighter Higher Payload
Fuel Efficient
13.6 Meter GRP Lightweight Trailer
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The Cost of Transport

• Time is more expensive than distance ( asset
  utilisation)
• The easiest and quickest route is generally
  cheaper than a slower shorter route.
• Transport takes the route of least resistance
• Vehicles ( Trucks, Planes , Ships)
• Cost money standing still
• Freight rates are driven by market forces not
  distance

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The Certainties in Transportation

• Handling Costs Money
• Every time you stop, offload or Transship it
  costs money
• Handling Facilities have to be paid for !
• Cranes, Warehouses and Labour cost money
• The costs are passed on to the Customers !
• They go to the Cost Of Goods Sold !!
• Affecting the competitiveness of goods, imports
  or inputs

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Transport Achieving Economies of Scale

• Large vehicles are cheaper to run (per kg) than
  small
• Major costs elements of transport
• Vehicle depreciation / capital cost
• Driver
• Maintenance
• Fuel
• The only Major cost eliminated in a standing
  vehicle
• Fuel
• Holding up vehicles Increases Transport costs
• This cost goes back to the ( customer) SMEs !
• Reducing their competitive edge

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Updating Transport Competition and Moderisation

• London to Paris 1981 900 One way
• No channel tunnel .. Ferry costs 300 one way.
• No open market
• Permits required
• Customs clearance .. With costs
• 12 meter Trailers ( 40 ft)
• 18 ton maximum pay load
• 0.05 per kilo
• London Paris 2006 900 One way
  ( 2300 _at_ 1981 value)
• Channel tunnel
• No permits
• Reduced customs procedures
• 13.6 Meter Trailers
• 24 ton maximum pay load
• 0.0375 per kilo (0.1275 _at_ 1981 value )

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Cross Border Transport Agreement

• Signed but Not Implemented
• It Covers
• Annex 2 registration of Vehicles in
  International traffic
• Annex 9 Criteria for Licensing of Transport
  for Cross Border operations
• Eligibility, reliability, professional
  competency, financial solvency ..all covered !
• Annex 12 Border Crossing and Transit
  Facilities
• Annex 13b Criteria for Licensing Inter-modal
  operators
• Protocol 2 Transit Traffic
• It is there it needs to be implemented !

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What is Missing ?

• A Competitive Cross Border Transport Sector
• Poor vehicle Standards
• Overloading
• Breakdowns
• Poor driving standards
• Lack of access cross border access for vehicles
  of Good quality
• Smooth and efficient Border Processes

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No Excuses

• Left / Right Drive
• Not an issue UK Ireland in Europe for 50
  years !
• Vehicle Specifications
• Country Weights and Dimension .. Enforceable
• Vehicle Standards
• Certified by compliance with GMS Agreed
  Standards
• Driving Standards
• Issue GMS International Driving License

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Now The Good News Customs

• Vietnams Customs
• A pro-active approach to change
• Rapid Implementation of New process
• Actions that Facilitate Cross Border Trade
• Cambodia Customs
• Open to new Ideas
• Taking submission to improve processes
• Trying to overcome long established barriers

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Good News Customs cont

• Lao Customs
• Great progress being made after a slow start
• Transit tax finally being replaced
• Hampered by infrastructure
• Thailand Customs
• Was the regional leaded
• Leading with e-clearance technology and systems
  trials
• Has been stagnant for some time
• Expecting big things and significant effort to
  regain lead !

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Good News Customs cont

• China Customs
• A Very Large organization
• Heavy focus on Sea Air Exports
• GMS borders are only a very small part
• However
• Massive investment in Customs and Borders
• Sophisticated Customs System
• Willing to hear submission for change
• See the importance of trade with GMS

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Move Quickly TO

• Full Implementation of the CBTA
• Eliminate the requirement for border
  transshipment
• Encourage the cross border movement of freight
  vehicles that comply with International Standards
• Actively promote the introduction of modern ,
  light weight trailers to replace the old heavy
  FEU / Skeletal units in use

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Dont waste the investment