Strengthening Railway Transport Connectivity in the South and Southwest Asia - S.M. NAZMUL HASAN - United Nations ESCAP
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Strengthening Railway Transport Connectivity
in the South and Southwest Asia
15-16 March 2017, New Delhi
S.M. NAZMUL HASAN
Director
BIMSTEC Secretariat, Dhaka, Bangladesh
dir_bd@bimstec.org
www.bimstec.orgAn Overview of BIMSTEC Established as a Regional Organization on 06 June, 1997. BIST-EC to BIMSTEC • Economic bloc to Multi-Sectoral Org • Myanmar joined on 22 Dec 1997 • Nepal and Bhutan joined in Feb 2004 Bridge between SA and SEA A platform for intra-regional cooperation between SAARC & ASEAN
An Overview/Contd.
Member States- 07
Secretariat was established in 2014
Some basic facts:
- 1.5 billion (22% of Global population)
- Combined GDP- US$ 2.7 trillion
- Trade potential-US$ 59 billion
- Average Eco Growth -6.5%
- Intra-regional trade US$ 77 billion
(SAARC- US$ 44 billion, 2013)Eastern Indian Ocean regional trade networks, c. 1300-1500 Adopted from © Ports-of-Trade, Maritime Diasporas, and Networks of Trade and Cultural Integration in the Bay of Bengal Region of the Indian Ocean: c. 1300-1500. Kenneth R. Hall. Journal of the Economic and Social History of the Orient 53 (2010) 109-145
Objectives of BIMSTEC Promote Free Trade Area Increase cross border connectivity, investment and tourism Promote technical cooperation
BIMSTEC Areas of Cooperation
Sector Lead Country
• Trade and Investment - Bangladesh
• Technology - Sri Lanka
• Energy - Myanmar
• Transport and Communication - India
• Tourism - India
• Fisheries - Thailand
• Agriculture - Myanmar
• Cultural Cooperation - Bhutan
• Environment and Disaster Management - India
• Public Health - Thailand
• People-to-People Contact - Thailand
• Poverty Alleviation - Nepal
• Counter-Terrorism and Transnational Crime - India
• Climate Change - BangladeshThe idea of Connectivity
Connectivity is ‘flattening’ the world
Connectivity is a cornerstone of regional economic cooperation and
integration
Enhanced Connectivity could result in:
- ASEAN and East Asia’s cumulative gain could be over 5% of GDP for
Cambodia, Myanmar, Thailand and Viet Nam and over 2% for India
[Economic Research Unit 2011].
Improved connectivity along with trade facilitation can
significantly enhance regional trade by reducing transportation
time and trade costs7-Key drivers shaping Connectivity • Physical connectivity (Road, Rail, Air, Maritime) • Trade and transport connectivity (production and distribution network, value chains etc.) • Energy connectivity • Significance of population dynamics • Nurturing of knowledge-based society • ICT advancements (digital connectivity) • People-to-people exchanges
Connectivity Matters
Global flows (trade, people, finance and data) add between $250
billion to $400 billion (15% to 25%) to global GDP growth each
year
Most connected countries can expect to increase GDP growth
from flows up to 40% more than the least connected countries
Connectedness Index 2012:
1. Germany 2. Hong Kong 3. USA 4. Singapore 5. UK
• India and Brazil jumped 15 and 16 ranks respectively because of
participation in global flows of services
Global interconnectedness re-writing the rules of business
and inter-state relations
Source: No Ordinary Disruption by R Dobbs et al, 2015BIMSTEC Transport Infrastructure and
Logistics Study (BTILS)
First raised at the 51st BWG Meeting in Bangkok, in July 2005.
BTILS was agreed and commissioned in February 2007,
Commencement in April 2007.
Study was completed in November 2007 and 12th BIMSTEC
Ministerial Meeting in December 2009 endorsed the Final Report
and its recommendations.
The BWG in 2011 requested ADB to conduct an update and
enhancement of the BTILS since there had been significant
changes (2007-2011)
ADB submitted the Draft Report on “Updating and Enhancement
of the BIMSTEC Infrastructure and Logistics Study” in July 2014
reflecting those changes and extending the planning timeframe
forward to 2020.Sectors Identified by the BTILS The first BTILS report proposed to constitute the following five Expert Groups to coordinate, monitor and review the progress of implementation of projects: • Road development • Railways • Maritime transport • Aviation & • Trade facilitation and Logistics
Outcome of the updated BTILS Report Finalized Policies and Strategies for BTILS Prepared a Long List of projects (165) in the area of connectivity including a short list (66) of priority projects Finalized a Monitoring and Follow up mechanism for implementation of projects Finalized Institutional Mechanism for monitoring Proposed Work Plan for 2014-20
Recommended BTILS Rail Policies 2014-20 Rail connectivity to landlocked countries • Strategy: Development of rail links between India and the landlocked Member States of Bhutan and Nepal. Enhanced rail connectivity between ports and their hinterland • Strategy: Prioritize rail access to new and existing ports especially for bulk cargoes and the transit of container traffic between the ports and ICDs
Short List of BIMSTEC Priority Rail Projects,
2014–2020
BTILS identified 12 projects. 5 projects [India-
Nepal] and 7 projects [Ban-5, Ind-1, Thai-1]
• BANGLADESH:
i. Tongi–Bhairab Bazaar extra tracking 2014–2015
ii. Second bridges at Bhairab Bazaar and Titas 2014–
2016
iii. 2 more lines Dhaka–Tongi and Tongi–Joydevpur
2014–2015
iv. Double tracking Laksham–Akhaura link 2016–2019
v. Bridge parallel to Bangabandhu Bridge 2016–2020Short list/Contd. • INDIA: Eastern Dedicated Freight Corridor 2014–2019 • NEPAL: 5 new rail connections with India 2014–2020 • THAILAND: Chachoengsao–Klong 19–Kaeng Khoi project 2014–2016 Some projects are completed while some in- progress
‘Soft’ infrastructure The number of ‘soft’ structure projects has increased (trade and transport facilitation). Soft infrastructure projects are related to: • Increased automation in customs through system upgrades • Reductions in trade documentation • Training of border personnel • Development of national single windows • Transport planning in Myanmar • Port and road planning in Bangladesh
Inception Meeting of the BTCWG Member States submitted their comments on the Draft Final Report of the BTILS and Draft ToR. The implementation of the recommendations of the Study was discussed at the Inception Meeting of the BTCWG, held in Bangkok (30-31 Aug, 2016). BTCWG finalized the ToR, adopted proposed Work Plan, Implementation Measures and Monitoring Framework.
SOM Approval SOM approval required for implementation of all Meeting decisions 17th SOM, after 03 Years Endorsed the BTCWG Report and BTILS Report
Leaders’ Retreat, India, 2016 Outcome Document (14 areas) Agenda of Action (16 points)
Retreat Outcome Document “Being convinced that the development of connectivity in various forms and manifestations is the key to promote regional integration, we express satisfaction at the continuing efforts and initiatives to advance multi-modal physical connectivity (air, rail, roads and waterways) in the BIMSTEC region. We note with satisfaction the progress achieved in implementation of the recommendations of the BIMSTEC Transport Infrastructure and Logistics Study. We agree to explore the possibility of having a BIMSTEC Motor Vehicle Agreement.”
Leaders’ Agenda of Action
• Transport and Communication
i. Coastal Shipping Agreement
ii. Greater physical and economic
connectivity
iii. Master plan for BIMSTEC Connectivity
iv. Economical, Technical and Infrastructure
CooperationLeaders’ Agenda of Action/Contd.
• Trade and Investment
i. BIMSTEC Framework Agreement on
Transit, Transshipment and movement of
Vehicular Traffic
ii. BIMSTEC Trade Facilitation Agreement
iii. Fast track BIMSTEC FTA negotiations
iv. Discuss BIMSTEC Mutual Assistance on
Customs MattersKey BIMSTEC Trade Routes In the context of surface transport, there are 3 dominant existing/potential BIMSTEC trade routes: Route 1: Kolkata – Siliguri – Guwahati – Imphal - Moreh/Tamu – Mandalay – Bago - Myawaddy/Mae Sot – Tak – Bangkok - Laem Chabang; Route 2: Kolkata - Petrapole/Benapole – Jessore - Dhaka - Chittagong; and Route 3: Kolkata – Raxaul/Birgunj - Kathmandu
BIMSTEC Trade Routes
Thank You
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