# Presentation: 826717

## Cross Border Transport in the GMS

- Chiang Mai March 18th 2008
- Paul Apthorp

## Modes of Transportation

## GMS  Economic Corridors

**GMS  Economic Corridors**

## TNT  - Road Network Development 

- 1

- 2

- 3

- 4

- 5

## TNT European Road Network  

**TNT European Road Network**

## TNT Middle East Road Network

**BAHRAIN**

**Kuwait**

**      ****Jeddah**

**Riyadh**

**Dhahran**

**Doha**

**Muscat**

**          ****AUH**

**DXB**

**JBA**

**Saudi Arabia**

**Yemen**

**Oman**

**United Arab Emirates**

**Sila/Batha**

**IRAN**

**Jordan/Levant**

## ARN Phase 2

**Singapore**

**Kuala Lumpur**

**Phnom Phen**

**Hanoi**

**Malaysia**

**Bangkok**

**Ho Chi Minh**

**Thailand**

**Vietnam**** **

**Cambodia**** **

**Laos**** **

**Myanmar**** **

**China**** **

**Danang**

**Nanning**** **

**ARN Phase 2**

## Routing Map

## Cross Border Operations

- Between GMS Countries
*The Current Situation !!*

**The Infrastructure is in Place**

**New Roads and Bridges**

##  Costly Border Transshipment  ..still exists

##  “Did You Bring Any  Help” ? 

**Transshipment -Costing Time and Money**

**2 Trucks + Labour ..when 1 will do  !**

**Transshipment on the EWEC in Laos**
**Time consuming  &  costly **
**	****	**

**Why is this Necessary ?**

**Different Vehicle Dimensions :**
** ****Makes Transshipment  difficult and time consuming**

**Vietnamese Vehicle**

**Thai Vehicle**

**3 Extra Tons of Iron on Each Truck**

## Slide 18

## Don’t Waste the Investment  !

**Integral ****trailers** :    Lighter ; Higher Payload ;  Fuel Efficient

- 13.6 Meter  GRP  Lightweight  Trailer

## 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

- 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

-  **The Cost of Transport**

## 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

- 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

-  **The Certainties in Transportation**

## 
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 

- 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

**Transport – Achieving Economies of Scale**

## 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 @ 1981 value)
Channel tunnel
No permits
Reduced customs procedures
13.6 Meter Trailers
24 ton maximum pay load
$ 0.0375   per kilo			($0.1275 @ 1981 value )

- 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    ( $2300 @ 1981 value)
- Channel tunnel
- No permits
- Reduced customs procedures
- 13.6 Meter Trailers
- 24 ton maximum pay load
**$ 0.0375   per kilo****	****	****	****($0.1275 @ 1981 value )**

**Updating Transport – Competition and Moderisation**

## 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 !

## 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

## 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**

## 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

##  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 !

##  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

## 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

## Don’t waste the investment