Fourth GMS Economic Corridors Forum (ECF-4): 5.c Session1-Initial Assessment of Road Transport Infra; Transport Services in GMS

7/31/2019 Fourth GMS Economic Corridors Forum (ECF-4): 5.c Session1-Initial Assessment of Road Transport Infra; Transport Services in GMS

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M R . R O B E R T A N D E R S O N

A N D

M R . A N T H O N Y B A Y L E Y

INITIAL ASSESSMENT OF ROAD

TRANSPORT INFRASTRUCTURE ANDTRANSPORT SERVICES IN GMS


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Road Corridors Operating Conditions

Location Asset Management Status

CAMBODIA Core issues include lack of road maintenance and truck overloading.

Periodic maintenance using private sector contractors for pavement

overlays moving forward.

LAO PDR Many road sections and bridges pose reliability risks due to shortfall in

funding of routine and periodic maintenance. The Road Fund concepthas taken hold and showing signs of success.

MYANMAR General lack of road and bridge maintenance along most major road

corridors. Lack of bridge capacity at numerous large river crossings.

Inadequate road geometry on many corridors.

PRC Major corridors served by existing and planned expressways. Road

corridors generally in good operating condition and adequatelymaintained, although roads in Yunnan funded at 70% of required level.

THAILAND Best developed and maintained road network in GMS. Major corridor

roads are high speed 4-lane and 6-lane highways. Controlled access

expressway network development has not been developed.

VIET NAM National roads absorb disproportional amount of maintenance budget

funding; little remains for secondary roads. Traffic safety and coastalflooding of highways are also core problem areas.


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Transport Corridor Network

Corridor Termini (Countries served) Importance to GMS Trade

North-South Connectivity (5 corridors)

North-South Kunming, Bangkok

(PRC, MYA, LAO, THA)

GMS trade facilitation backbone corridor in north-

south direction

Eastern Kunming, Nanning, Hanoi, Haiphong/

HCMC (PRC, VIE)

GMS trade facilitation section important between

Kunming and Haiphong and in vicinity of HCMC

Central Kunming ,Vientiane, Sihanoukville

Laem Chabang

(PRC, LAO, CAM, THA)

Important GMS trade section is Vientiane to

Bangkok/Laem Chabang, and from Phnom Penh

to Sihanoukville

Western Tamu, Mawlamyine

(MYA; a link to N-S Corridor in THA)

Will become important for GMS trade particularly

road sections serving Yangon city and portNorth-

eastern

Thanh Hoa, Bangkok, Laem Chabang

(VIE, LAO, THA)

Somewhat ill-conceived corridor. Not likely to

facilitate much GMS trade in near or long term

East-West Connectivity (4 corridors)

Northern Nanning, Kunming, Tamu

(PRC,MYA)

Well-conceived corridor for regional cooperation /

connectivity, but not likely to facilitate much GMS

trade.

East-

West

Mawlamyine, Dong Ha, with Da Nang link

(MYA,THA,LAO,VIE)

Well-conceived corridor for regional cooperation/

connectivity, but limited as a driver of GMS trade.

Southern Dawei, Bangkok, Phnom Penh, Quy

Nonh/ HCMC, Vung Tau (MYA,CAM,VIE)

GMS trade facilitation backbone corridor in east-

west direction (following central subcorridor only)

Southern

Coastal

Bangkok, Laem Chabang, Sihanouk-ville,

Nam Can (THA, CAM, VIE)

Minor corridor for GMS trade facilitation, except

near vicinity of port of Laem Chabang and to

lesser extend near port city of Sihanoukville.


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Primary Trade Routes: Constraints and Gaps -1

Identified Trade Route Bottlenecks and Gaps

Trade Route 1: North-South Corridorvia Lao PRD, near Bangkok/Laem

Chabang and south extension of

corridor at Malaysian border

Bottleneck along the southern extension of North-

South Corridor, between Hat Yai and Sadao at

Thai-Malaysian border.

Trade Route 2: Southern Corridorbetween Bangkok and Ho Chi Minh

City via AH1, on Thai and Vietnamese

sections

Bottlenecks at

Aranyaprathet-Poipet Border Crossing along

Southern Corridor

Phnom Penh at the convergence of the Southern

and Central Corridors, and the Mekong River

Trade Route 3: Thailand section ofCentral Corridor between

Bangkok/Laem Chabang and Vientiane

via AH2

Bottleneck along congested Highways 3 and 7

near Laem Chabang Port; and

Potential bottleneck at Luang Prabang where the

Central and Northeast Corridors and the Mekong

River all converge

Trade Route 4: Yangon-Mandalayroute (AH1), incorporating the Payagi -

Meiktila section of Western Corridor

No major bottlenecks or gaps initially identified
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Primary Trade Routes: Constraints and Gaps - 2

Identified Trade Route Bottlenecks and Gaps

Trade Route 5: Bangkok to Payagi viaMae Sot-Myawaddy combining North

South and Western Corridors

Gap along East-West Corridor and Western

Corridor requiring upgrading of the Kawkareik to

Thaton and Thaton to Payagyi Roads

Bottleneck at the Mae Sot-Myawaddy Border

Crossing

Possible bottlenecks in access roads to YangonPort

Trade Route 6: Northern Corridorbetween Kunming and Nanning


Trade Route 7: Eastern Corridorbetween Kunming and Haiphong via

AH14


Trade Route 8: Central Corridorbetween Phnom Penh and

Sihanoukville via AH11

Bottleneck at Phnom Penh at the convergence of

the Southern and Central Corridors, and the

Mekong River (also identified under Trade Route 2)
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Assessment of Transport Services

in GMS Trade


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Role of Freight Transport

Efficient transfer on cargo between point of despatchand point of delivery, either domestically orinternationally

Transport is a demand responder not a traffic creator

but can have indirect impact on demand based onefficiency

Modal competition is based on service standardswhich are in turn based on cost/time/reliability

(C/T/R) parameters Competition is mainly within modes rather than

between modes


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GMS Airfreight

Growing but volumes small

Only minimal intra-GMS traffic

Demand concentrated mainly inThailand and Vietnam

Good international connectivity


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GMS Maritime Transport

Maritime transport not linear thus making tradingwith distant markets as attractive as closer markets

Carries 90% GMS overall trade by weight with

volumes dominated by bulk shipments of oil and oilproducts, coal, cement, steel and rice

Carries 75% of intra-GMS trade by weight due bulkshipments, lower transport costs and dominance of

demand along seaboards Major growth in size and reliability of container

services and ports (Laem Chabang and Saigon Port)


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GMS Road Transport

Dominance of small entities with low performancelevels in many countries with shortage of largemodern transport fleets, except in Thailand and tolesser extent in Vietnam

High cost due to traffic imbalances and choke points

Lack of through transport is constraint but majorproblem is limited demand for international services

and slow improvements in trade facilitation


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GMS other transport modes

Rail Not a major freight carrier due to limited

international connectivity

Not yet competitive in C/T/R terms Inland Waterways

Important in movement of aggregates, rawmaterials and rice in Vietnam, Cambodia

and Myanmar but limited application inother countries Problem of seasonal water levels


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Implications of assessment on GMS corridordevelopment concept

Busiest trade freight sections of GMS corridors tend to be closeto the ports

Maritime transport is and will continue to be dominant even forintra-GMS trade

Dominant role of road transport is feeding traffic to and fromports, rather than through land borders

Importance of connectivity between port and corridors linked toindustrial/manufacturing, agro-industrial centers

Consideration of concept of ports as gateways and corridors aslinks along supply chains and concentrations of demand


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Thank you

Documents

Fourth GMS Economic Corridors Forum (ECF-4): 5.c Session1-Initial Assessment of Road Transport Infra; Transport Services in GMS