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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
Bilateral agreement 4 3
Double registration 1 3
Of trailer x x Accession to international convention
4 4
Bilateral agreement 3 3
Double registration 1 3
Of container x x x Accession to international convention
3 3
Bilateral agreement 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)
Multilateral permits for the facilitation of international road transport (cont’d)
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.
Multilateral permits for the facilitation of international road transport (cont’d)
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.
Multilateral permits for the facilitation of international road transport (cont’d)
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
Multilateral permits for the facilitation of international road transport (cont’d)
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.
Multilateral permits for the facilitation of international road transport (cont’d)
ECMT permit system (cont’d)
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
Multilateral permits for the facilitation of international road transport (cont’d)
ECMT permit system (cont’d)
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?