Document 2700139

ESCAP is the regional development arm of the United Nations and serves as the main economic
and social development centre for the United Nations in Asia and the Pacific. Its mandate is to
foster cooperation between its 53 members and 9 associate members. ESCAP provides the
strategic link between global and country-level programmes and issues. It supports
Governments of the region in consolidating regional positions and advocates regional
approaches to meeting the region’s unique socio-economic challenges in a globalizing world.
The ESCAP office is located in Bangkok, Thailand. Please visit our website at www.unescap.org
for further information.
The shaded areas of the map represent ESCAP members and associate members.
Part Two ---- IV. Urban Transportation
i
REVIEW OF DEVELOPMENTS IN
TRANSPORT IN ASIA AND THE PACIFIC
2011
New York, 2011
ii
Review of Developments in Transport in Asia and the Pacific 2005
REVIEW OF DEVELOPMENTS IN
TRANSPORT IN ASIA AND THE PACIFIC 2011
United Nations publication
Sales No. E.12.II.F.8
Copyright © United Nations 2011
All rights reserved
Manufactured in Thailand
ISBN: 978-92-1-120642-5
e-ISBN: 978-92-1-055352-0
ST/ESCAP/2623
Acknowledgements: This document was prepared by the Transport Division of ESCAP with data inputs,
research and analysis contracted from GHD Pty., Limited.
The designations employed and the presentation of the material in this publication do not imply the
expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the
legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its
frontiers or boundaries. Mention of firm names and commercial products does not imply the endorsement
of the United Nations.
The term “ESCAP region” is used in the present document to include Afghanistan; American Samoa;
Armenia; Australia; Azerbaijan; Bangladesh; Bhutan; Brunei Darussalam; Cambodia; China; Cook Islands;
Democratic People’s Republic of Korea; Fiji; French Polynesia; Georgia; Guam; Hong Kong, China; India;
Indonesia; Islamic Republic of Iran; Japan; Kazakhstan; Kiribati; Kyrgyzstan; Lao People’s Democratic
Republic; Macao, China; Malaysia; Maldives; Marshall Islands; Micronesia (Federated States of);
Mongolia; Myanmar; Nauru; Nepal; New Caledonia; New Zealand; Niue; Northern Mariana Islands;
Pakistan; Palau; Papua New Guinea; Philippines; Republic of Korea; Russian Federation; Samoa;
Singapore; Solomon Islands; Sri Lanka; Tajikistan; Thailand; Timor-Leste; Tonga; Turkey; Turkmenistan;
Tuvalu; Uzbekistan; Vanuatu; and Viet Nam. The term “developing ESCAP region” excludes Australia,
Japan and New Zealand. The term “Central Asia” in this publication refers to Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
The term “billion” signifies a thousand million.
Unless otherwise stated, current United States dollars have been used throughout.
This publication has been issued without formal editing.
Contents
iii
CONTENTS
Page
ABBREVIATIONS ............................................................................................................................
I.
II.
III.
IV.
V.
VI.
INTRODUCTION: TRANSPORT DEVELOPMENT PROSPECTS AGAINST
A BACKDROP OF ECONOMIC UNCERTAINTY ......................................................
1
RAILWAYS ..........................................................................................................................
13
A.
B.
C.
D.
E.
National Railway Sector Development ........................................................................
Railway Traffic Trends .................................................................................................
Rail Services .................................................................................................................
Trans-Asian Railway Network Development ...............................................................
Selected Investment Projects in the Railway Sector ....................................................
13
15
19
23
29
ROADS AND HIGHWAYS ...............................................................................................
35
A.
B.
C.
D.
E.
National Road Sector Development .............................................................................
Road Vehicle Fleets and Motorization Trends ..............................................................
Road Freight .................................................................................................................
Asian Highway Network Development .......................................................................
Selected Investment Projects in the Road Sector .........................................................
35
37
40
42
45
MARITIME PORTS AND DEVELOPMENTS IN SHIPPING ..................................
51
A.
B.
C.
D.
Trends in Maritime Trade .............................................................................................
Container Port Throughput ...........................................................................................
Shipping Trends ............................................................................................................
Selected Investment Projects in Maritime Ports ...........................................................
51
54
57
62
DRY PORTS, INTERMODAL TERMINALS AND LOGISTICS
DEVELOPMENT ...............................................................................................................
67
A.
B.
Development of Dry Ports and Intermodal Terminals in the ESCAP Region ..............
Logistics Development in the ESCAP Region .............................................................
67
74
FACILITATING TRANSPORT ACROSS BORDERS .................................................
81
A.
Implementation of International Conventions and Agreements Relating to Transport
Facilitation and the Movement of Goods and Services across Borders .......................
Subregional Approaches to Transport Facilitation .......................................................
81
85
SAFE AND SUSTAINABLE TRANSPORT ...................................................................
91
B.
VII.
vii
A.
B.
Road Safety ..................................................................................................................
Sustainable Transport Development .............................................................................
91
103
iv
Review of Developments in Transport in Asia and the Pacific 2011
CONTENTS (continued)
Page
List of Tables
I-1
I-2
I-3
II-1
II-2
II-3
II-4
II-5
II-6
II-7
II-8
II-9
II-10
III-1
III-2
III-3
IV-1
IV-2
IV-3
V-1
V-2
V-3
V-4
VI-1
VI-2
VII-1
VII-2
VII-3
VII-4
VII-5
VII-6
VII-7
VII-8
VII-9
Annual GDP growth rates (%) for ESCAP, 2002-2011 ........................................................
Direction of exports for selected economies and subregions (percentage share),
2000-2009 .............................................................................................................................
Number and value of PPI projects in the transport sector of ESCAP developing
countries, by investment type, 1990-2010 ............................................................................
Railway route length (excluding branch lines) and most common track gauge in selected
ESCAP countries ..................................................................................................................
National rail route-kilometres-to-area ratio – top and bottom five countries .......................
National rail route-kilometres-to-population ratio – top and bottom five countries .............
Electrified route-kilometres in member countries ................................................................
Trends in railway freight tonnage in the ESCAP region.......................................................
Trends in railway freight traffic task (tonne-km) in the ESCAP region ...............................
Overview of the Trans-Asian Railway ..................................................................................
Missing links in the Trans-Asian Railway network ..............................................................
Breaks-of-gauge on the Trans-Asian Railway ......................................................................
Selected railway infrastructure development projects in the ESCAP region (as of 2011) ...
Road lengths and road densities, various countries ..............................................................
Growth of road freight task in selected ESCAP countries (per cent per annum) .................
Selected road and highway investment projects in the ESCAP region ................................
Port container throughput in selected ESCAP economies and ports, 1990-2010 .................
Capacity of merchant fleets registered in the ESCAP region, 1980-2010 ............................
Selected port infrastructure projects in the ESCAP region (as of end 2011) ........................
Inland container handling facilities in the Republic of Korea ..............................................
Dry Ports in Malaysia ...........................................................................................................
Change in ease of trade across borders, 2006-2011 ..............................................................
Government regulations and industry self regulations for freight forwarders ......................
Status of accession of ESCAP Regional Members to the International Conventions listed
in Commission resolution 48/11, as of 30 November 2011 ..................................................
Summary of GATS progress on matters related to transport and logistics, 2011 .................
ESCAP Road Safety Goals, Targets and Indicators for the Decade of Action .....................
Overview of types of measures being implemented by ESCAP member states ...................
Recent Road Safety Initiatives in ESCAP member States ....................................................
Air Quality Standards – Selected ESCAP Economies (µg/m3) ............................................
Fuel standards in selected ESCAP countries ........................................................................
Measures to improve urban air quality .................................................................................
Selected recent rail mass transit developments in the ESCAP region ..................................
Bus Rapid Transit (BRT) projects in the ESCAP region ......................................................
Urban Policies promoting the use of Bicycles ......................................................................
2
3
7
13
14
14
15
16
17
25
25
28
30
36
42
45
55
58
63
72
72
79
80
82
84
97
100
100
107
109
111
112
114
117
Contents
v
CONTENTS (continued)
Page
List of Figures
I-1
I-2
I-3
I-4
I-5
I-6
I-7
I-8
II-1
II-2
II-3
III-1
III-2
III-3
III-4
III-5
III-6
III-7
III-8
III-9
IV-1
IV-2
IV-3
IV-4
IV-5
IV-6
IV-7
IV-8
IV-9
V-1
V-2
V-3
V-4
V-5
V-6
VII-1
VII-2
Annual GDP growth rates for the selected regions and countries, 2000-2011 .....................
Comparison of movements in trade value with selected price indices, 2006-2011 ..............
Principal regional trade agreements involving ESCAP member states ................................
Annual number of infrastructure projects with private participation in ESCAP developing
countries, 1990-2010 ............................................................................................................
Value of Transport Sector PPI projects in ESCAP developing countries, million US$,
1990-2010 .............................................................................................................................
Value of transport PPI projects by subregion, 1990-2010 ....................................................
Geographic location of transport sector PPI projects in developing ESCAP member
countries (share of the investment from 1990 to 2010) ........................................................
Comparison of return on infrastructure investment and return on government bonds,
selected Asian economies and the USA ................................................................................
Average freight haul distances (kilometres) in the ESCAP region .......................................
Commodity composition of rail freight, selection ESCAP economies .................................
Map of the Trans-Asian Railway Network (2011) ...............................................................
Annual average growth in road length in selected ESCAP countries ...................................
Average annual growth in the number of road vehicles, 1993-2008 ....................................
Vehicle density in selected ESCAP economies, 2007-2008 .................................................
Motorization rates in selected economies of the ESCAP region, 2005-2008 .......................
Actual and forecast growth of road freight volumes in selected countries of the region,
2006-2015 .............................................................................................................................
Road freight task in selected ESCAP countries ....................................................................
Map of the Asian Highway Network (2011) .........................................................................
Asian Highway network by country, 2010 ...........................................................................
Quality improvement of Asian Highway, 2004-2008 ...........................................................
Growth of world maritime trade (1985-2010) ......................................................................
D eveloping Asia’s share of global maritime volumes, 2009 ................................................
World and ESCAP Container Port Throughput Growth (1973-2010) ..................................
Distribution of global port container volumes, 1973-2010 ...................................................
Distribution of container port volumes within ESCAP, 1973-2010 .....................................
Increase in containership size (1980-2010) ..........................................................................
Developments in the numbers of container vessel numbers and their average size,
1988-2010 .............................................................................................................................
Share of top twenty shipping lines (as of 28 September 2011) ............................................
Productivity of the world merchant fleet, 1980-2009 ...........................................................
Existing and planned major intermodal terminals in China .................................................
Container throughput at ICDs operated by CONCOR 1995-2009 .......................................
Throughput of Indonesia’s major dry ports, 2008 ................................................................
Throughput at Birgunj Dry Port ............................................................................................
World Bank Logistics Performance Index – Selected ESCAP economies ...........................
Relative ease of trading across borders, 2011 .......................................................................
Fatality rate per 100,000 population in selected ESCAP countries, 2007 ............................
Fatality rate per 10,000 vehicles in selected ESCAP countries, 2007 ..................................
1
4
5
6
7
8
8
10
18
19
24
35
38
39
40
41
41
43
44
45
51
52
52
53
54
59
60
61
62
69
70
71
73
76
77
92
93
vi
Review of Developments in Transport in Asia and the Pacific 2011
CONTENTS (continued)
Page
VII-3
Relationship between road fatalities and per capita income, selected ESCAP countries,
2007 ......................................................................................................................................
VII-4 Road fatalities by road user class, selected ESCAP countries, 2007 ....................................
VII-5 Change in road fatalities in selected ESCAP countries, 2007-2009 .....................................
VII-6 Mean and variability of enforcement effectiveness, selected ESCAP countries, 2009 ........
VII-7 Sources of global greenhouse gas emissions in 2005 ...........................................................
VII-8 Geographical distribution of urban air pollution ..................................................................
VII-9 Air Quality in Asia: Average annual ambient AQ levels, 1993-2009 ...................................
VII-10 Pedestrian mode share in Asian Cities ..................................................................................
VII-11 “Attack points” in reducing the environmental impact of urban freight transport ...............
94
95
95
103
104
105
106
116
118
Contents
Abbreviations
vii
ABBREVIATIONS
ADB
ADF
AH
ASEAN
Asian Development Bank
Agence Française de Développement
Asian Highway
Association of South East Asian Nations
BOT
build-operate-transfer (scheme)
CAGR
CAI-Asia
CAREC
CH4
compound annual growth rate
Clean Air Initiative for Asian Cities
Central Asia Regional Economic Cooperation
methane
ECE
ECO
Economic Commission for Europe
Economic Cooperation Organization
GATS
GATT
GDP
GMS
GRSP
General Agreement on Trade in Services
General Agreement on Tariffs and Trade
gross domestic product
Greater Mekong Subregion
Global Road Safety Partnership
HFCs
hydrofluorocarbons
ICC
ICD
Import Commodity Clearance
inland container depot
km
kilometre
NMT
N2O
non-motorized transport
nitrous oxide
OECD
Organisation for Economic Co-operation and Development
ppm
PPP
parts per million
public-private partnership
RTAs
Regional Trade Agreements
SAARC
SF6
SPM
South Asian Association for Regional Cooperation
sulphur hexafluoride
suspended particulate matter
TAR
TEU
TRACECA
Trans-Asian Railway
twenty-foot equivalent unit (container)
Transport Corridor Europe-Caucasus-Asia
UNCTAD
United Nations Conference on Trade and Development
WHO
WTO
World Health Organization
World Trade Organization
viii
Review of Developments in Transport in Asia and the Pacific 2011
I. Introduction: Transport Development Prospects Against a Backdrop of Economic Uncertainty
1
I. INTRODUCTION: TRANSPORT DEVELOPMENT PROSPECTS AGAINST
A BACKDROP OF ECONOMIC UNCERTAINTY
Changing growth prospects amidst dampening global demand
for Asian exports
The downturn in the global economy due to the global financial crisis of 2009 has had a significant
impact on the transport sector across the Asia and Pacific region. Whereas prior to the global financial
crisis, the world enjoyed a period of exceptionally strong economic growth (Figure I-1), by 2008 the
slowdown that had begun in the USA had extended to all of the major economies. Developed countries
were particularly hard hit, with growth turning negative in Japan and the USA, and falling to below 1 per
cent in the European Union. In line with the downturn in the global economy, growth rates in the ESCAP
region also began to decline in 2008 and slumped sharply in 2009, although most groups of countries
rebounded in 2010.
Figure I-1. Annual GDP growth rates for the selected regions and countries, 2000-2011
Per cent GDP Growth (constant prices)
20
15
10
5
0
-5
10
2000
World
Japan
China
2001
2002
2003
2004
2005
2006
USA
Newly Industrialized Asian Economies
India
2007
2008
2009
2010
2011
European Union
Emerging and developing economies
Source: Derived from data in IMF, World Economic Outlook October database (http://www.imf.org), accessed on 22 September 2011.
Notes: 2010 figures are estimates, 2011 figures forecasts.
However, the impact has been uneven between subregions and across countries. As shown in
Table I-1, the most severe decline was in the high income countries, with the contraction in Japan
particularly sharp (6.3 per cent). By contrast, the group of low income countries maintained growth rates of
6 per cent throughout the crisis period, and China and India are among the few nations that continued to
record positive growth. However, in line with global tends, growth is 2011 has been moderate, with the
latest IMF forecast set at a below trend value of 6.0 per cent.
Table I-1 also shows that there are significant differences between subregions. The strong
performance of the East and North-East Asian subregion has been driven almost entirely by China, which
continued to grow at around 10 per cent through the crisis and is forecast by the IMF to continue to grow at
above 9 per cent through to 2016. On the other hand, North and Central Asia, which consists of many major
commodity exporters, experienced very strong growth from 2005 through to 2007, but then began to
2
Review of Developments in Transport in Asia and the Pacific 2011
Table I-1. Annual GDP growth rates (%) for ESCAP, 2002-2011
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
5.1
5.9
6.8
6.9
7.7
8.6
4.9
2.6
7.7
6.0
East and North-East Asia
5.1
5.6
6.6
6.9
8.0
9.1
5.2
3.6
8.3
6.4
North and Central Asia
5.2
7.5
7.5
7.1
9.0
9.1
5.5
-5.8
4.5
4.5
Pacific
4.1
3.4
3.8
3.2
2.4
4.4
2.3
1.0
2.6
1.9
Total ESCAP region
Subregions
South and South-West Asia
5.1
6.4
7.4
8.1
8.1
8.8
4.4
4.3
8.4
6.5
South-East Asia
5.0
5.8
6.5
5.9
6.2
6.7
4.5
1.6
7.6
5.3
5.7
7.0
7.5
7.9
7.8
8.2
6.2
6.0
6.5
6.1
Income Group
Low
Middle
6.6
7.9
8.3
8.9
9.9
10.9
6.8
4.8
8.7
7.6
High
2.4
2.2
3.8
3.0
3.3
3.7
0.2
-3.5
5.4
1.7
Notes: 2010 figures are estimates, 2011 figures forecasts. Subregion growth and income category estimates derived from data
in IMF, World Economic Outlook Database (http://www.imf.org), accessed 22 September 2011.
decline in 2008 and fell further in 2009. Turkmenistan recovered very strongly in 2010 and maintained
strong growth through 2011, while the Russian Federation recovered reasonably well, but economic growth
remains well below pre-crisis levels while IMF forecasts suggest that this is likely to continue through to
2016.
Despite the downturn in global demand, all of the economies in South-East Asia returned to
positive growth in 2010, with the economy of Singapore – one of the ASEAN nations hardest hit in 2009 –
achieving growth of 14.5 per cent. In the South and South-West Asian subregion, India’s economy has been
the main driving force: the impact of the crisis on the Indian economy was comparatively mild, with growth
remaining at over 6 per cent in 2008 and 2009, before recovering to over 10 per cent in 2010. However,
other countries in both South-East and South and South-West Asia experienced severe natural disasters over
the 2010-2011 period, most notably the flooding in Thailand and Pakistan, while the slowdown in the
European and North American markets are expected to put further downward pressure on export growth
from these subregions.
Meanwhile, the economic growth patterns of the economies in the Pacific ranged from those which
maintained fairly robust growth, such as Australia, Papua New Guinea (PNG), Solomon Islands and
Vanuatu, to those which slowed or even contracted such as Fiji which grew by only 0.3 per cent in 2010
after contracting by 1.3 per cent in 2009. As in the case of North and Central Asian economies, the
economic performance of several countries in the Pacific is tied to international trade patterns and volumes,
which in turn is influenced global commodity prices. Figure I-2 compares the quarterly movements in trade
value with quarterly movements in several indices maintained by IMF: an index of all commodities; and
index of non-fuel commodities; and index of fuel commodities. The correlation between movements in
trade value and price is clear.
With the slowdown in exports for most merchandise trade exporters, it is expected that transport
patterns will also shift markedly, with many countries in the region looking towards new markets in the
Asia and Pacific region. The geography of trade is also changing due to the structural changes that are
occurring in some economies; changes in trade and tariff policy; improvements in transport infrastructure;
and changes in manufacturing and supply chain practice. As can be seen from Table I-2, the proportion of
exports of developing countries in Asia sent to destinations within the region is about one-half, a figure
which has only risen slightly since 2000, from 48.9 per cent to 50.4 per cent. What is significant, however,
is the significant shift in the relative importance of the two major Asian importers: China and Japan.
Historically, Japan has been a major importer of merchandise produced by the developing countries of Asia.
However, between 2000 and 2009, the share of Asian exports destined for China increased between 2000
and 2009 from 8.4 per cent to 12.5 per cent, making China the single most important Asian destination, and
raising it to a level of importance similar to the United States and the European Union as an export
destination. During the same period, the share of exports headed for Japan declined from 11.3 per cent to
I. Introduction: Transport Development Prospects Against a Backdrop of Economic Uncertainty
3
Table I-2. Direction of exports for selected economies and subregions (percentage share),
2000-2009
To
From
Central Asia
Developing
Asia
China
Japan
United
States
European
Union
Others
2000
2009
2000
2009
2000
2009
2000
2009
2000
2009
2000
2009
9.2
11.2
4.1
10.5
0.5
0.6
1.7
5.5
28.1
34.0
56.4
38.3
Armenia
7.8
12.5
0.2
2.5
0.1
0.1
12.6
9.4
36.9
43.5
42.5
32.0
Azerbaijan
7.1
18.3
0.3
0.8
0.0
0.0
0.5
11.4
63.6
41.7
28.6
27.8
Georgia
16.2
28.4
0.3
0.5
0.1
0.4
2.2
3.2
24.0
20.8
57.2
46.6
Kazakhstan
5.4
4.5
6.8
15.6
0.1
0.8
2.1
4.0
23.0
36.6
62.6
38.5
Kyrgyzstan
29.0
45.3
8.8
4.6
0.1
0.0
0.6
0.6
37.6
4.0
23.9
45.5
Tajikistan
16.5
13.4
0.4
39.8
N/A
0.3
0.1
0.1
30.1
10.7
52.9
35.7
6.4
17.4
0.3
1.2
N/A
0.0
0.5
3.0
21.5
24.4
71.3
53.9
23.6
23.2
0.5
6.5
3.2
1.9
1.5
1.7
26.8
8.2
44.3
58.5
28.1
11.7
14.3
11.4
6.9
21.8
15.0
15.2
16.1
13.9
19.6
16.3
8.0
20.4
18.0
16.1
19.3
14.3
21.2
34.1
51.0
5.5
4.4
23.0
11.5
15.5
12.4
11.8
10.1
Turkmenistan
Uzbekistan
East Asia
China
32.9
33.5
Hong Kong, China
10.2
10.6
Republic of Korea
23.8
21.7
10.2
22.6
11.3
5.7
20.9
9.9
13.7
12.2
20.2
28.0
4.0
1.3
49.8
73.9
1.5
0.2
24.3
0.7
7.7
11.9
12.6
12.0
38.2
34.9
2.9
26.6
11.2
7.1
23.6
11.6
15.2
10.4
8.8
9.4
20.8
1.6
5.4
3.6
1.7
24.2
12.6
26.3
23.7
26.9
35.8
46.0
58.0
3.4
0.3
0.3
0.1
1.9
24.9
35.3
4.3
13.1
12.5
5.4
5.8
0.2
0.7
1.2
0.8
31.7
20.2
40.1
47.9
21.5
24.6
19.2
22.4
1.8
6.1
4.1
1.9
21.1
11.0
24.1
20.9
29.8
37.7
Mongolia
Taiwan, Province of China
South Asia
Afghanistan
Bangladesh
India
Maldives
32.0
33.6
N/A
0.1
4.1
1.3
44.0
2.5
18.5
53.9
1.4
8.6
Nepal
44.5
66.2
N/A
0.7
1.4
1.6
27.4
8.2
23.0
14.2
3.7
9.2
Pakistan
18.5
19.3
2.6
5.5
2.6
0.5
24.9
18.0
27.7
24.3
23.6
32.3
Sri Lanka
8.6
11.1
0.1
0.9
4.2
2.3
40.1
20.5
28.2
38.7
18.9
26.6
South-East Asia
37.4
41.9
3.7
9.9
12.6
9.4
18.2
9.9
14.4
11.2
13.7
17.7
Brunei Darussalam
36.2
33.7
1.8
4.0
40.7
46.8
12.0
0.6
3.6
0.5
5.8
14.4
Cambodia
8.2
46.5
2.1
0.3
0.9
1.6
65.4
31.1
20.5
14.3
2.9
6.3
Indonesia
33.1
40.6
4.2
9.4
22.1
15.3
13.0
8.9
13.7
11.2
13.7
14.5
Lao People’s Dem. Rep.
43.4
44.3
1.5
20.0
2.8
1.6
2.2
2.7
26.0
11.4
24.1
20.0
Malaysia
40.3
41.6
2.9
11.8
12.3
9.6
19.5
10.7
13.3
10.6
11.7
15.8
Myanmar
35.2
71.0
5.6
9.8
5.4
5.2
22.0
0.0
16.4
3.3
15.5
10.7
Philippines
30.5
31.8
1.6
7.3
13.4
15.5
27.3
16.8
16.5
19.5
10.7
9.0
Singapore
44.1
52.1
3.8
9.6
7.3
4.5
16.7
6.4
13.5
9.4
14.7
18.0
Thailand
30.8
34.1
3.9
10.4
14.2
10.1
20.5
10.8
15.7
11.6
15.0
23.1
Viet Nam
25.8
22.7
10.3
8.5
17.2
10.8
4.9
19.6
20.0
16.2
21.9
22.3
The Pacific
11.2
12.5
5.2
5.2
10.3
7.3
5.3
2.7
11.1
8.5
56.9
63.8
Fiji
14.3
16.8
0.0
0.1
4.1
4.4
21.1
14.5
16.5
11.4
44.0
52.9
7.6
10.6
6.5
4.1
11.2
7.9
1.3
1.2
10.2
8.1
63.2
68.1
Papua New Guinea
Samoa
18.1
11.5
0.1
5.4
0.3
0.6
10.6
3.8
3.0
1.0
67.9
77.7
Solomon Islands
43.3
17.7
12.0
52.9
20.7
2.0
0.7
0.3
10.6
8.9
13.6
18.2
0.4
48.5
12.8
30.0
23.8
6.5
1.9
8.7
18.4
Tonga
42.7
Tuvalu
6.3
Vanuatu
60.7
64.2
0.4
0.7
18.7
13.2
9.7
1.1
5.7
15.1
4.8
5.7
Developing Asia
29.2
30.8
8.4
12.5
11.3
7.1
20.3
13.3
15.6
15.7
15.1
20.6
Source: ADB, Asian Development Outlook 2011.
4
Review of Developments in Transport in Asia and the Pacific 2011
Figure I-2. Comparison of movements in trade value with selected price indices, 2006-2011
300
250
Index
200
150
100
50
0
20
06
Q
1
20
06
Q
2
20
06
Q
3
20
06
Q
4
20
07
Q
1
20
07
Q
Value of trade
2
20
07
Q
3
20
07
Q
4
20
08
Q
1
20
All index
08
Q
2
20
08
Q
3
20
08
Q
4
20
09
Q
1
20
09
Q
2
20
Non-Fuel index
09
Q
3
20
09
Q
4
20
10
Q
1
20
10
Q
2
20
10
Q
3
20
10
Q
4
20
11
Q
1
Energy index
Source: Trade index created by Porthcawl Pty. Ltd. from WTO quarterly trade series, downloaded from WTO website; price indices from IMF,
World Economic Outlook Database. Both downloaded 22 September 2011.
7.1 per cent. These trends underline the emergence of China as an engine for subregional and intraregional
trade.1
Outside of the region, the diversification of trade destinations is the most marked feature of the
change between 2000 and 2009. Exports to both the European Union and the USA declined, while the share
of exports sent to other non-Asian countries increased sharply from 15.1 per cent to 20.6 per cent. The
decline in the share of the USA over the 2000 to 2009 period is particularly sharp; in 2000, the United
States was clearly the most important single trading partner for the developing economies of Asia,
accounting for over 20 per cent of total exports. By 2009, this had fallen to 13.3 per cent – significantly
lower than the share of the European Union.
Given the sluggish growth and uncertain short- to mid-term prospects of most developed
economies, further diversification of export destinations away from the traditional North American,
Japanese and European markets will be the key to future export growth in the region. As noted in the Asian
Development Bank’s Asian Development Outlook 2011, “Given their reversals in the recent crisis, industrial
economies are unlikely to drive demand in the world economy any time soon. With their strong prospects
for growth, the economies of the South should take up the slack. Potentially, the rising consumption of
emerging economies and the new investment flows within the South can be new sources of growth for the
world economy – but only if the economies of the South become more open to trade and capital flows.”
The opening of these economies to trade and capital flows is supported by the rise of preferential
trade agreements (PTAs) and regional trade agreements (RTAs) in the region, with most ESCAP member
states now signatories to one or more PTAs. This approach of governments to trade agreements and the
emerging new system of agreements has been referred to as “new regionalism”.2 The principal regional
1
Asian Development Bank, Asian Development Outlook 2011, Oxford University Press, Hong Kong, 2011.
Ramkishen S. Rajan, “Trade Liberalization, New Regionalism and Poverty Reduction in Asia and the Pacific”, paper prepared
for Expert Group Meeting on Regional Trade Agreements in Asia and the Pacific, Bangkok, 30-31 January 2003, ESCAP
website, http://www.unescap.org/
2
I. Introduction: Transport Development Prospects Against a Backdrop of Economic Uncertainty
5
trade agreements, and the overlapping membership of these agreements, are summarised in Figure I-3.3
Despite the number and breadth of RTAs in the region, however, the level of intra-subregional trade is
relatively low, with much of the growth derived from trade with China. According to ESCAP, this may be
because intraregional trade in the ESCAP region is more market driven than RTA driven.4 It also notes that
while China has served as the region’s “trade locomotive” it will be difficult for it to sustain its role, given
that the drop in demand for Chinese goods in its main export markets will also depress demand for the
intermediate goods imported by China from the region. Trade and transport costs in the region, including
non-physical barriers at border crossings, also remain high. The upgrading and development of transport
infrastructure in the region will therefore have to be accompanied by the systematic removal of such
barriers through trade and transport facilitation measures if the benefits of the RTAs are to be fully realized.
Figure I-3. Principal regional trade agreements involving ESCAP member states
Axes of Consolidation and Integration in Asia
Source: ESCAP
Private Participation in Infrastructure Development
and Financing
One of the strategies for addressing the current global downturn has been fiscal stimulus measures
involving infrastructure investment. At the same time, however, governments face budget constraints. This
has led to renewed interest in private sector involvement for financing infrastructure development and
operations. Globally, estimates based on the World Bank’s Private Participation in Infrastructure (PPI)
database showed that the aggregate value of transport projects in developing countries that have been
completed with private participation between 1990 and 2010 was approximately US$ 1,669 billion, over
half of which was in the ESCAP region.5 This was spread across 2,600 projects, including nearly 700 in the
transport sector.
3
The Asia-Pacific Trade Agreement (APTA), which is the new name of the Bangkok Agreement that was concluded under the
auspices of ESCAP in 1976, is one of the oldest PTAs in the region. Other RTAs include the Association of South-East Asian
Nations (ASEAN) Free Trade Area, the Commonwealth of Independent States Free Trade Agreement (CISFTA) for North and
Central Asia, the Pacific Island Countries Trade Agreement (PICTA) for the Pacific and the South Asian Free Trade Agreement
(SAFTA) for South Asia.
4
ESCAP, Asia-Pacific Trade and Investment Report (Bangkok, 2011).
5
Based on analysis by Porthcawl Pty. Ltd. of data from the World Bank PPI database.
6
Review of Developments in Transport in Asia and the Pacific 2011
The 1997 Asian financial crisis then led significant drop in the number of PPI projects in all
sectors, and the number of project continued to decline through to 2000. However, in the following years,
confidence was gradually regained until, in 2006, total PPI projects again reached their 1993 level, with 207
PPI projects in all sectors, with a further increase to 219 in 2007.
The recent global financial crisis saw a significant fall in all sector PPI projects, with the number of
projects registered in ESCAP developing countries falling to 155 in 2008 and then to 144 in 2009, before
a modest recovery to 159 in 2010. Projects in the energy sector dominated PPI projects in the early 1990s,
but transport sector projects – and particularly road projects – became more prominent towards the end of
that decade. After a surge in 2006, transport sector projects again declined from 2007 to 2009, with only
22 projects recorded in the last year of this period. However, 2010 saw a strong recovery, with 65 transport
sector projects achieving financial conclusion (see Figure I-4).
Figure I-4. Annual number of infrastructure projects with private participation
in ESCAP developing countries, 1990-2010
250
Number of projects
200
150
100
50
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Transport
Other
Source: Based on data in World Bank Private Participation in Infrastructure Database, viewed at the PPI website http://ppi.worldbank.org/
website, 12 October 2011.
Figure I-5 shows that the average size of PPI projects in the transport sector of ESCAP developing
countries has fluctuated in the range of US$ 80-400 million from year to year. However, there does not
appear to be any consistent trend over time in average project value, with average size of projects over the
period 1990 to 2010 being a little over US$ 200 million.
Table I-3 shows that, while concessions has been the most common form of private investment in
the transport infrastructure of ESCAP developing countries (324 out of a total of 682 projects), the total
value of greenfields projects was greater, accounting for over one-half of the total transport sector PPI. The
focus of PPI activity in the region has clearly been on the provision of new infrastructure rather than
privatization of existing facilities: divestitures and management and lease contracts together represented
only a little over 10 per cent of the total value of transport sector PPIs between 1990 and 2010.
I. Introduction: Transport Development Prospects Against a Backdrop of Economic Uncertainty
7
Figure I-5. Value of Transport Sector PPI projects in ESCAP developing countries,
million US$, 1990-2010
25,000
US$ million
20,000
15,000
10,000
5,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0
Source: Based on data in World Bank Private Participation in Infrastructure Database, viewed at the PPI website http://ppi.worldbank.org/
website, 12 October 2011.
Table I-3. Number and value of PPI projects in the transport sector
of ESCAP developing countries, by investment type, 1990-2010
Number of PPIs
Value of PPIs
(US$ millions)
Concession
324
51,478
Divestiture
55
12,173
281
71,498
22
4,769
682
139,918
Type of PPI
Greenfield project
Management and lease contract
Total
Source: Based on data in World Bank Private Participation in Infrastructure Database, viewed at the PPI website
http://ppi.worldbank.org/website, 12 October 2011.
Meanwhile, Figure I-6 shows that there has been a significant change over time in the distribution
of transport PPI activity within the ESCAP region. Prior to the 1997 financial crisis, PPI activity in
South-East Asia was a major component of regional PPI activity; however, activity in this subregion decline
sharply during the crisis, and has never returned to its earlier heights. From 2005 onwards, however, there
was a rapid increase in PPI activity in South and South-West Asia. As PPI activity in East Asia fell away
under the influence of the global financial crisis in 2007 and 2008, transport sector PPI activity in South and
Central Asia held up comparatively well. In 2010, transport sector PPI activity in South and South-West
Asia, and in North and Central Asia, was at an all-time high. China and India between them accounted for
nearly two-thirds of total transport sector PPI activity in the region (Figure I-7). Six other countries –
Malaysia, Turkey, Russian Federation, Thailand, Indonesia and the Philippines – between them accounted
for a further 30 per cent.
In terms of subsector, during the period 1990-2010, 51.5 per cent of the total private investment in
transport infrastructure (a total of US$ 72 billion) was in the road sector. The next largest tranche of
private sector investment was in the seaports of the region, with a total investment over the period of over
US$ 30 billion), or 21.7 per cent of the total. The remaining 26.8 per cent was split fairly evenly between
investment in railroads (13.5%) and in airports (13.3%).
8
Review of Developments in Transport in Asia and the Pacific 2011
Figure I-6. Value of transport PPI projects by subregion, 1990-2010
25,000
USD million
20,000
15,000
10,000
5,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
East and North-East Asia
North and Central Asia
South and South-West Asia
South-East Asia
Source: Based on data in World Bank Private Participation in Infrastructure Database, viewed at the PPI website http://ppi.worldbank.org/
website, 12 October 2011.
Figure I-7. Geographic location of transport sector PPI projects in developing ESCAP member countries
(share of the investment from 1990 to 2010)
Source: Based on data in World Bank Private Participation in Infrastructure Database, viewed at the PPI website http://ppi.worldbank.org/
website, 12 October 2011.
Note: Others include: Armenia, Bangladesh, Cambodia, Georgia, Kazakhstan, Lao People’s Democratic Republic, Maldives, Myanmar,
Pakistan, Sri Lanka, Uzbekistan, and Viet Nam.
I. Introduction: Transport Development Prospects Against a Backdrop of Economic Uncertainty
9
There is general agreement that private financing will continue to pay a vital role in the
development of Asia’s transport infrastructure for the foreseeable future:
“Experts agree that the opportunities for private capital investment into the regions infrastructure
are set to rise exponentially over the next 10 years, and many governments are now actively
courting private involvement. A recent report by global consultancy McKinsey estimated that, over
the next 10 years, US$ 1 trillion of the projected 8 trillion in infrastructure projects in the region
will be open to private investors under public-private partnerships (PPPs).”6
These developments have prompted renewed interest in initiatives to diversify sources of finance
for future infrastructure investment and to provide additional support and encouragement to private sector
investors. Some of these sources include foreign exchange reserves, pension funds, and private savings. For
example, the region’s response to the Asian currency crisis of 1997 was comprised of domestic austerity
measures combined with an export-driven recovery. This has led the foreign exchange reserves of Asian
economies to increase at an annual average rate of 21.5 per cent per year since 2000. From around 21.9 per
cent of regional GDP in 2000, reserves had increased to 40.5 per cent in 2008 – a massive US$ 3,371
billion.7 The scale of the accumulated reserves, which exceed by a considerable margin the liquidity needs
of the region, has provided the capacity – and arguably the necessity – of using some of these reserves to
fund investments in real assets:
“Much of the research strongly indicated that at the margin, additional reserves were subtracting
from rather than adding to national welfare in the region. Therefore, it would be logical to surmise
that many reserve-rich Asian countries could improve their welfare by slowing down or even
reversing their reserve build-up. The best way to have done this would have been not to accumulate
so much reserves in the first place, for example by not running large and persistent current account
surpluses or by liberalizing restrictions on capital outflows. However, given that there is
a substantial amount of surplus reserves already accumulated and managed by regional central
banks and monetary authorities, the second-best solution might be to manage at least a portion of
such reserves more actively with the goal of maximizing returns rather than managing liquidity.
The notion that developing Asia should reallocate some of its reserves from safe and liquid but low
yielding assets to less safe and liquid but high-yielding assets is not only politically popular, but
also economically sound”.8
One asset class that could provide such an alternative is regional infrastructure, including regional
transport infrastructure, but this will require the development of suitable financial instruments and
institutions. A significant step in this direction has recently been taken with the establishment of the
ASEAN Infrastructure Fund. ASEAN countries hold over US$ 700 billion in reserves, an increasing share
of which is held in sovereign wealth funds with a broad investment mandate, but these funds have largely
been invested outside of ASEAN, and outside Asia. The ASEAN Infrastructure Fund is intended to direct at
least part of these funds to financing ASEAN’s future infrastructure needs. Broadly modelled on the European
Investment Bank, the Fund is being established with an initial equity contribution of US$ 485.2 million, of
which US$ 335.2 million will come from nine ASEAN members. The remaining US$ 150 million is being
provided by the Asian Development Bank. With projected 70 per cent co-financing by ADB, it is expected
to leverage more than US$ 13 billion in infrastructure financing by 2020.9
A number of ESCAP countries also have very substantial public sector savings and investment
funds intended to help meet the anticipated obligations of government to provide pensions for ageing
populations. The Japan Government Pension Investment Fund (JGPIF), the largest in the world, currently
controls assets estimated at US$ 1,400 billion (larger than the GDP of Canada). Historically, the investment
practices of these funds have been extremely conservative – for instance, nearly two-thirds of the JGPIF’s
6
Nicholas Lord, “Infrastructure: Changing Lanes, Emerging Markets”, 5 May 2011. Available from website of Emerging
Markets, http://www.emerging markets.org (accessed 8 October 2011).
7
Donghyun Park and Andrew Rozanov, “Asia’s Sovereign Wealth Funds and Reform of the Global Reserve System”. Available
from Asian Development Bank website, http://aric.adb.org (accessed 20 October 2011).
8
Ibid, p. 6.
9
Asian Development Bank news release, “Innovative Fund to Pave Way for Infrastructure Boom”, 25 September 2011.
10
Review of Developments in Transport in Asia and the Pacific 2011
funds are invested in Japan Government Bonds.10 However, there is a good fit for the needs of these funds
to generate sound, stable returns over the long term and requirements of infrastructure financing:
“The idea of investing in infrastructure seems to strike a chord with many pension plan directors
and members. Infrastructure feels more “tangible” and “real” than a lot of other complex products
and derivative strategies presented to pension funds these days, where they find it difficult to detect
the underlying value. In addition, infrastructure is made for the long term, and there seems to be
a natural fit with the long-term liabilities of many pension plans. For some people there is also
a connotation to sustainable or socially responsible investing, which is an increasingly popular
route chosen in particular by public and industry-wide pension plans.”11
A rebalancing of pension fund portfolios to include a greater proportion of infrastructure assets
could release significant amounts of capital for needed infrastructure development and at the same time
increase the capacity of the funds to support future pension obligations. Recent research undertaken by
RREEF Research estimated the 5-year annualised returns over a five year period that includes the Global
Financial Crisis, and found that “On a five year basis, listed infrastructure produced a higher Sharpe ratio
(a statistic used to measure the return per unit of risk) than many other asset classes”.12 RREEF estimates
that for ‘pure play’ listed infrastructure funds (funds that typically own or operate infrastructure assets only)
was 8.63 per cent per annum. Total return for these companies are typically driven by stable and long-term
income derived from usage fees – that is, the returns mirror fairly closely the returns to direct investments
in infrastructure made by unlisted private companies or special purpose vehicles. Figure I-8 shows that this
return is considerably in excess of that which could be obtained from investments in government bonds in
a range of Asian economies and the USA.
Figure I-8. Comparison of return on infrastructure investment and return on government bonds,
selected Asian economies and the USA
Source: Return on infrastructure assets from RREEF Research A Compelling Investment Opportunity: The Case for Global Listed
Infrastructure Revisited. 10-year bond rates from Asian Development Bank, Asian Bonds Online website, http://asianbondsonline.adb.org,
accessed 17 October 2011.
10
Chikafumi Hodo, “Japan’s giant pension fund sees asset sales steady next year”, 21 June 2011. Available from Reuters
website, http://www.reuters.com (accessed 17 October 2011).
11
G. Inderst, Pension Fund Investment in Infrastructure, OECD Working Papers on Insurance and Private Pensions, No. 32,
OECD, 2009.
12
RREEF Research, “A Compelling Investment Opportunity: The Case for Global Listed Infrastructure Revisited”, July 2011,
available at http://www.rreef.com (accessed 17 October 2011).
I. Introduction: Transport Development Prospects Against a Backdrop of Economic Uncertainty
11
In the future, private savings may also play a much larger role in financing infrastructure in the
region. The Asian Development Bank, amongst others, has remarked the magnitude of private savings in
Asia, the potential to use these fund to fund future infrastructure, and the very limited extent to which this
potential is, at present, realised.
“The binding constraint for infrastructure development in Asia is not a lack of financing. On the
contrary, Asia is flush with capital. The countries accounting for 95 per cent of Asia’s total
investment needs – China, India, Japan, Republic of Korea, Malaysia, Thailand, and Viet Nam – all
have high domestic savings rates. The real constraints include a lack of bankable projects;
inadequate policy and institutional frameworks; weaknesses in the public sector that hamper its
capacity to implement infrastructure projects (except in the China); weak support for PPPs (except
in Republic of Korea, Malaysia, and, recently, India); and underdeveloped domestic and regional
capital markets, especially bond markets.”13
However, the experience of two financial crises – the Asian currency crisis of 1997 and the more
recent global financial crisis – have also demonstrated the sensitivity of the private sector’s appetite for
funding infrastructure investments, and its ability to do so, to conditions in global financial markets.
Perhaps more fundamentally, the mixed outcomes (from the private sector perspective) of PPI projects have
prompted a re-assessment of the level and nature of the risks involved in infrastructure investments. One
particular area in which governments are being called upon to bear more of the risk is demand risk. Toll
road projects in which developers bear the full risk of demand shortfalls are now more difficult to finance.
Strategies for sharing or transferring demand side risk include availability payments (adopted in the case of
Peninsula Link road in Australia14 ); shadow tolls; capital subsidies (used for example in India and the
Russian Federation)15 and minimum traffic or revenue guarantees.
13
Asian Development Bank/Asian Development Bank Institute, Infrastructure for a Seamless Asia (Tokyo, 2009).
14
Partnerships Victoria, “Peninsula Link: Project Study”, viewed on the Partnerships Victoria website, http://
www.partnerships.vic.gov.au (accessed on 17 October 2011).
15
Cesar Queiroz and Ada Karina Izaguirre, Worldwide trends in private participation in roads: growing activity, growing
government support, Gridlines No. 37, available at http://www.worldbank.org (accessed on 17 October 2011).
12
Review of Developments in Transport in Asia and the Pacific 2011
II. Railways
13
II. RAILWAYS
A. National Railway Sector Development
While countries – especially developing ones – have been investing substantial amount of
resources into funding the development of modern roads and highways, the enthusiasm for rail development
has fluctuated over time. Since the late 1990s, concerns over issues such as greenhouse gases, fossil fuel
dependency and energy efficiency have led to renewed interest in the inherent quality of rail. As a result,
a number of governments are once again considering rail as a viable transport option and rail infrastructure
development projects are once again on the agenda. However, the extent of rail infrastructure development
and the utilization of the rail mode offer a contrasting picture across the region. Table II-1 below shows
railway route-kilometres, defined as the sum of the distances (in kilometres) between the mid-points of all
stations on the network, for a number of selected member countries in the ESCAP region as well as the
most common track gauges in use in each country.
Table II-1. Railway route length (excluding branch lines) and most common track gauge
in selected ESCAP countries
Country
Route length
Afghanistan1
2
Armenia
3
Australia
Gauge
(mm)
Country
Route length
Gauge
(mm)
75 km
1,520
Malaysia5
1,658 km
1,000
826 km
1,520
Mongolia4
1,810 km
1,520
7
New Zealand
7,791 km
1,067
Azerbaijan4
34,163 km
2,080 km
1,520
Myanmar5
5,460 km
1,000
Bangladesh5
2,835 km
1,000
1,676
Nepal5
53 km
1,676
602 km
1,000
Pakistan2
7,791 km
1,676
1,000
91,000 km
1,435
Russian Federation4
85,280 km
1,520
Cambodia6
China5
4
5
Georgia
1,570 km
1,520
Republic of Korea
3,557 km
1,435
DPR Korea4
5,235 km
1,435
Singapore5
23.5 km
1,000
7
1,463 km
1,676
616 km
1,520
5
63,974 km
1,676
Sri Lanka
Indonesia5
6,535 km
1,067
Tajikistan4
Islamic Republic of Iran4
6,221 km
1,435
Thailand5
4,071 km
1,000
Japan3
20,035 km
1,067
1,435
Turkey2
9,594 km
1,435
Kazakhstan4
14,210 km
1,520
Turkmenistan4
3,110 km
1,520
4,230 km
1,520
2,350 km
1,000
India
Kyrgyzstan
4
Lao People’s Democratic Republic5
417 km
1,520
Uzbekistan
3.5 km
1,000
Viet Nam4
4
1
Asian Development Bank; 2 International Union of Railways, statistics (2010); 3 Consultant; 4 OSJD bulletin of statistical data on railway
transport for 2009 (published 2010); 5 Government sources; 6 Toll Co. Ltd.; 7 Railway Directory, 2011.
In 2009, the assessed total route length of railway networks across the ESCAP region was
estimated at slightly over 388,500 route-kilometres. However, while most countries – except Pacific Island
countries or countries with excessively high mountainous terrain such as Bhutan – operate a rail network,
just five out of these 30 countries (Australia, China, India, Japan and the Russian Federation) account for
76 per cent of this route length.
Given its recent fast-pace development of high-speed lines, China – with 91,000 route-kilometres –
has now the most extensive rail network in the ESCAP region, slightly over the Russian Federation’s
network of 85,290 route-kilometres and ahead of India’s network of nearly 64,000 route-kilometres.
Other large networks in the region are also to be found in Australia, Japan and Kazakhstan with 34,000
route-kilometres, 20,000 route-kilometres and 14,200 route-kilometres, respectively. At the other extreme,
14
Review of Developments in Transport in Asia and the Pacific 2011
a number of ESCAP countries have very small networks. These include Armenia, Cambodia, Kyrgyzstan,
and Tajikistan, all of which have under 1,000 km of railway routes.
For obvious reasons, countries with vast land areas tend to have most rail track while those with
high-density population will have a greater penetration of the rail network. It is therefore useful to post
overall route-kilometres indicated in Table II-1 against countries’ land area and population. Table II-2
shows the top and bottom five countries in terms of national network-to-area ratio, while Table II-3 shows
the top and bottom five countries in terms of rail network route-kilometres by population.
Table II-2. National rail route-kilometres-to-area ratio16
– top and bottom five countries
Top five
Ratio
Bottom five
Ratio
Japan
52.9 km
Kyrgyzstan
Democratic People’s Repubic of Korea
43.3 km
Mongolia
2.1 km
1.2 km
Singapore
36.7 km
Nepal
0.3 km
Republic of Korea
34.0 km
Afghanistan
0.11 km
New Zealand
28.7 km
Lao People’s Democratic Republic
0.02 km
Table II-3. National rail route-kilometres-to-population ratio17
– top and bottom five countries
Top five
Ratio
Bottom five
Ratio
New Zealand
1.90 km
Indonesia
0.022 km
Kazakhstan
0.97 km
Bangladesh
0.019 km
Russian Federation
0.60 km
Singapore
0.005 km
Georgia
0.36 km
Afghanistan
Armenia
0.28 km
Lao People’s Democratic Republic
0.002 km
0.0006 km
The greatest density of rail networks is observed in Japan, with nearly 53 kilometres of rail route
per thousand square kilometres (km/’000 km2). Other smaller countries such as Armenia, Azerbaijan,
Georgia, New Zealand, Singapore and Sri Lanka also have densities in excess of 20 km/’000 km 2 . Apart
from Japan, of the five countries with the longest route-kilometres, only India stands out against the other
large networks with a density of just under 20 km/’000 km2 compared to China’s 9.5 km/’000 km2, Russia’s
5 km/’000 km2 and Australia’s 4.4 km/’000 km2.
The adoption of electric traction by the railway organizations of the region has long been
considered as a measure of their preparedness to accept cost-saving advanced technology and an indication
of their preference for environmentally friendly methods of operation. However, the development of
new-generation diesel-operated locomotives and closer scrutiny as to how the electricity that feeds the
power grid of individual rail networks is produced may lead to a revision of this thinking. Table II-4 shows
the total electrified route-kilometres in those countries and their share in each individual network.
So far only sixteen, i.e. under half, of the railways in Table II-1 have embraced electric operation.
Together they total 137,000 km of electrified route-kilometres, i.e. slightly over 35 per cent of the region’s
overall railway route-kilometres. The figures show that ESCAP member countries vary greatly in the level
of rail network electrification. In terms of electrification to route-length, Georgia and Armenia top the table
with 94.6 per cent and 87 per cent of their networks being under electric traction, respectively. They are
followed by the Democratic People’s Republic of Korea with 81 per cent of its network electrified and
Japan, the Republic of Korea and Azerbaijan which each have 60 per cent of their networks under wire. In
terms of overall electrified route-kilometres, the Russian Federation has the most extensive electrified
16
17
Per thousand square kilometres of area.
Per thousand inhabitants.
II. Railways
15
Table II-4. Electrified route-kilometres in member countries
Country
Electrified % of
route-km network
Armenia1
719 km
87
Japan2
2
Australia
2,649 km
7.8
Kazakhstan3
Azerbaijan3
1,251 km
60
42,000 km
46
4
China
4
India
Islamic Republic of Iran3
1,486 km
12,230 km
61
4,054 km
28.5
Malaysia4
330 km
20
Pakistan1
305 km
4
3
81
Russian Federation
43,165 km
50.6
94.6
Republic of Korea4
2,150 km
60.4
Democratic People’s Republic of Korea 4,220 km
Georgia3
1
18,927 km
30
Turkey
148 km
2.4
Uzbekistan3
Sources: 1 International Union of Railways, statistics (2010);
(published 2010); 4 Government sources.
Electrified % of
route-km network
Country
2
Consultant;
3
2,791 km
29
589 km
14
OSJD bulletin of statistical data on railway transport for 2009
network, with over 43,000 kilometres of electrified routes, i.e. over 50 per cent of the country’s total
network. It is followed by China and India with 42,000 km and 18,900 km of electrified routes,
respectively. Although the rail network in Australia is the fourth largest in the region at 34,163 kilometres,
only 7.8 per cent of it is electrified.
From a subregional perspective, the Caucasus region and South-East Asia are the subregions with,
respectively, the most and least electrified networks. In Central Asia, Kyrgyzstan, Tajikistan and
Turkmenistan are not electrified at all. In South Asia, the railways of Sri Lanka and Bangladesh are not
electrified at all and the railways of Pakistan only marginally so. In North and North-East Asia, the railways
of the Democratic People’s Republic of Korea and Mongolia are also not electrified. In Western Asia, only
2.4 per cent of the railways of the Islamic Republic of Iran are electrified and a sizeable 29 per cent of the
railways in Turkey.
B. Railway Traffic Trends
This section contains an assessment of the trends in the freight tonnage, tonne-kilometre, and
average freight haul as well as the passenger numbers and kilometres for a selection of countries in the
region. This data has been sourced from rail industry publications and databases, country statistical
yearbooks and other government publications.
1. Railway freight traffic: net tonnes
Table II-5 illustrates trends in railway freight tonnage (net tonnes) for a selection of ESCAP
member countries over the period 1995-2010. Of the selection of countries represented, the highest absolute
total growth in railway freight tonnage for the period occurred in China: between 1995 and 2009, its
railway freight tonnage increased by 1,740 million tonnes. Australia and India recorded the second and third
highest growth in freight rail tonnage over this period, with an increase of 474.6 and 468.4 million tonnes
respectively. In the case of Australia the key factor that contributed to the relatively high growth in rail
freight tonnes is the boom in iron ore and coal exports. Kazakhstan’s growth in absolute terms was the next
highest at 160.4 million tonnes. A nearly 200 per cent growth in volumes occurred in Cambodia but this
from a tiny base of 56 million tonnes and is only measured over a two year period. Aside from Cambodia’s
experience, however, in percentage terms, the Region’s most impressive rate of growth over the period from
1995 to 2009 occurred in two Central Asian countries, Kyrgyzstan and Tajikistan with compound average
growth rates of 14.5 and 11.4 per cent respectively. Annual average growth rates in three other countries in
North and Central Asia, Armenia, Azerbaijan and Georgia, were also relatively high for the region, ranging
from about 6 per cent to 10 per cent.
Either no growth or negative growth occurred in five countries in the region. In the Philippines, for
example, in the four years from 1995 to 1999 for which there is data, rail freight volumes fell at an average
annual rate of 73 per cent to the extent that it virtually ceased to exist in 1999. Negative growth rates, albeit
16
Review of Developments in Transport in Asia and the Pacific 2011
Table II-5. Trends in railway freight tonnage in the ESCAP region
Subregion
East and
North-East Asia
Growth
Country
Freight traffic (’000 tonne)
CAGR
From
To
First Year
Last Year
China
5.4%
1995
2009
1,593,460.0
3,333,480.0
Japan
-3.6%
1995
2009
52,103.0
31,058.0
5.1%
1996
2009
7,458.0
14,172.0
39,218.0
Mongolia
-2.4%
1995
2010
56,073.0
North and
Republic of Korea
Armenia
5.7%
1995
2006
1,625.0
3,000.0
Central Asia
Azerbaijan
6.1%
1995
2009
9,073.0
20,800.0
Georgia
9.8%
1995
2009
4,656.0
17,131.0
Kazakhstan
3.9%
1995
2010
207,320.0
367,735.0
Kyrgyzstan
14.5%
1995
2009
899.0
5,981.6
Tajikistan
11.4%
1995
2009
3,199.0
14,546.0
Thailand
3.2%
1995
2007
8,100.0
11,881.0
Turkmenistan
1.1%
1995
2009
22,164.0
25,925.0
Uzbekistan
1.4%
1995
2009
66,599.0
80,893.0
Australia
5.9%
1995
2000
381,900.0
852,540.0
New Zealand
8.9%
1995
2000
9,600.0
14,700.0
South and
Bangladesh
1.8%
1995
2008
2,600.0
3,280.0
South-West Asia
India
6.1%
1995
2009
364,955.0
833,383.0
Pacific
Islamic Republic of Iran
South-East Asia
3.1%
1995
2009
21,401.0
32,817.0
Pakistan
-0.1%
1995
2008
7,356.0
7,234.0
Sri Lanka
4.3%
1995
2007
1,200.0
2,000.0
Cambodia
188.2%
1996
1998
56.0
465.0
0.0%
1995
2009
5,249.0
5,231.0
Malaysia
Myanmar
Philippines
Viet Nam
8.7%
1990
1999
1,600.0
3,400.0
-73.4%
1995
1999
20.0
0.1
4.3%
1995
2009
4,500.0
8,159.0
Source: Porthcawl Pty. Ltd. estimates, based on data from the Railisa database maintained by UIC, available at http://www.uic.org
less dramatic than in the Philippines, also occurred in Japan (-3.6 per cent) and the Republic of Korea
(-2.4 per cent), while rail freight volumes in Malaysia remained virtually static during the period from 1995
to 2009.
2. Railway freight traffic: net tonne-kilometres
A net tonne-kilometre (tonne-km) represents one net tonne of freight transported for one kilometre.
A “net-tonne”, as distinct from a “gross tonne”, includes the weight of the freight consignment and
its packaging, but excludes the weight of the railway wagon. When aggregated across a railway system,
“net tonne-kilometre” provides a measure of the work done by the system, or the task of the railway system,
in moving freight traffic.
Table II-6 compares the freight traffic task (tonne-km) across a selection of ESCAP countries.
It shows a substantial difference in total freight task and growth in freight task, within and between ESCAP
subregions. For example, in 2009, China recorded a freight traffic task approximately 1,240.3 billion
tonne-kilometre greater than in 1995, representing a 4.9 per cent annual increase. In terms of freight traffic,
China’s publicly owned and operated Chinese Railways network is the world’s second largest behind that of
the United States of America. Apart from China, in aggregate tonne-km terms, India, Australia and
Kazakhstan handled the highest freight volumes and recorded the largest absolute increases in the total
freight task, with increases of 301.9, 157.6 and 88.7 billion tonne-kilometres respectively.
II. Railways
17
Table II-6. Trends in railway freight traffic task (tonne-km) in the ESCAP region
Subregion
East and
North-East Asia
CAGR
From
To
First Year
Last Year
4.9%
1995
2009
1,283,601.0
2,523,917.0
Japan
-1.4%
1995
2009
24,747.0
20,432.0
9.1%
1996
2009
2,541.0
7,852.0
Republic of Korea
Central Asia
Armenia
-2.4%
1995
2010
13,712.0
9,452.0
5.0%
1995
2005
403.0
654.1
10,021.4
Azerbaijan
11.6%
1995
2008
2,409.0
Georgia
11.1%
1995
2009
1,246.0
5,433.0
3.7%
1995
2010
124,502.0
213,174.0
Kazakhstan
Kyrgyzstan
Pacific
Freight traffic (m tonne-km)
China
Mongolia
North and
Growth
Country
4.5%
1995
2009
403.0
744.5
Tajikistan
-3.5%
1995
2009
2,115.0
1,282.0
Thailand
-0.2%
1995
2007
3,242.0
3,161.0
Turkmenistan
2.3%
1995
2009
8,568.0
11,765.0
Uzbekistan
2.0%
1995
2009
16,800.0
22,227.0
Australia
6.1%
1995
2000
99,700.0
257,320.0
4,078.0
New Zealand
5.0%
1995
2000
3,202.0
South and
Bangladesh
1.8%
1995
2008
689.0
870.0
South-West Asia
India
5.8%
1995
2009
249,564.0
551,448.0
Pakistan
0.7%
1995
2008
5,661.0
6,187.0
Sri Lanka
-0.1%
1995
2007
137.0
135.0
Cambodia
17.5%
1997
2003
35.0
92.0
3.9%
1995
2009
11,865.0
20,247.0
South-East Asia
Islamic Republic of Iran
Malaysia
-0.2%
1995
2009
1,416.0
1,384.0
Myanmar
3.3%
1995
2004
659.0
885.0
-20.5%
1995
2004
6.0
0.8
6.3%
1995
2009
1,751.0
4,139.0
Philippines
Viet Nam
Source: Porthcawl Pty. Ltd. estimates, based on data from the Railisa database maintained by UIC, available at http://www.uic.org
While a number of countries have achieved, to varying degrees, an increase in freight task between 1995
and 2009, a number have experienced decreases. As Table II-6 above details, these countries include Japan,
Republic of Korea, Tajikistan, Thailand, Sri Lanka, Malaysia and the Philippines.
3. Railway freight traffic: average freight haul distances
The average distance over which rail freight traffic moves is one of the indicators of the financial
viability of the rail freight business. It is widely accepted that average freight hauls of less than about
300 kilometres are unlikely to generate sufficient net revenue to be able to offset fixed costs, unless they
involve regular high tonnage shipments (of the type which can be generated in the region by container
feeder train movement between ports and inland terminals). When a railway carries freight between 500 and
5,000 kilometres, it is thought to be able to compete against road and air transport: road transport is better
suited to distances below 500 kilometres, while sea transport is usually more economical for the transport of
freight over journeys over 5,000 kilometres.18
Figure II-1 compares average freight-haul distances across a selection of countries in the ESCAP
region. As with other rail data presented in this section of the Review, the latest date for which information
is available differs between countries. The size and the shape of the country strongly influences the average
haulage distance. It is therefore not surprising that the average distance over which rail freight is carried
varies widely between ESCAP countries. According to the most recently available rail data, the average
18
World Bank, World Development Indicators 2005 (Washington, D.C., 2005).
18
Review of Developments in Transport in Asia and the Pacific 2011
Figure II-1. Average freight haul distances (kilometres) in the ESCAP region
Russian Federation (2008)
Pakistan (2008)
Kazakhstan (2009)
China (2009)
India (2009)
Japan (2009)
Islamic Republic of Iran (2009)
Mongolia (2009)
Viet Nam (2009)
Turkmenistan (2009)
Azerbaijan (2009)
Philippines (1998)
Myanmar (1999)
Georgia (2009)
New Zealand (2000)
Uzbekistan (2009)
Thailand (2007)
Bangladesh (2008)
Malaysia (2009)
Australia (2000)
Republic of Korea (2009)
Cambodia (1998)
Kyrgyzstan (2009)
Armenia (2006)
Tajikistan (2009)
Sri Lanka (2007)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Kilometres
Source: Porthcawl Pty. Ltd. estimates, based on data from the Railisa database maintained by UIC, available at http://www.uic.org
haulage distance in seventeen of the twenty-six countries for which data is available is less than the
500-kilometre distance, below which road transport is likely to be more economical than rail. Among this
group of countries, haulage distances are under 200 kilometres in Sri Lanka, Tajikistan, Armenia,
Kyrgyzstan, and Cambodia.
At the other end of the spectrum, the average haulage distance in the Russian Federation is
exceptionally long, i.e. almost 1,600 kilometres. In terms of average haulage distance, Pakistan ranks
second at 855.3 kilometres. In seven other countries, i.e. China, India, Islamic Republic of Iran, Japan,
Kazakhstan, Mongolia and Viet Nam, the average haulage distance lies between 500 and 800 kilometres.
4. Composition of the rail freight task
Comprehensive and consistent data on what cargoes are hauled by rail is not readily available.
However, information available on the composition of the rail freight task on a selection of the region’s
largest rail networks can provide some insight into the nature and composition of the freight rail task. The
mix of commodities carried on four of the region’s major rail systems is shown in Figure II-2.
It is clear that bulk commodities dominate the freight carried by each of the selected railway
systems. Fuels are particularly important in all cases, contributing between approximately 30 per cent
(Pakistan) and nearly 50 per cent (India and Russian Federation) of the total freight task. Construction
materials are also important on all systems, as are agricultural products and inputs to agriculture. Only in
India and Pakistan is container traffic explicitly recorded as an important element of the freight task.
II. Railways
19
Figure II-2. Commodity composition of rail freight, selection ESCAP economies
Pakistan
Russian Federation
Coal and coke
Oil and petroleum
Ores and minerals
Iron and steel
Grain and flour
Chemicals and fertilizer
Cement
Lumber
Other
Coal and minerals
Building materials
Fertilizer
Agriculture
Petroleum
Containers
Goods in transit
Other
0
10
20
30
40
50
Share of total net-tonne kilometres (%)
0
10
20
30
40
50
Share of total net-tonne kilometres (%)
China
India
Coal
Iron ore
Cement
Foodgrain
Fertilizers
Iron and Steel
Mineral oils
Limestone and Dolomite
Sugar
Salt
Stone (inc gypsum)
Other
Coal
Petroleum
Minerals
Iron and steel
Building materials
Agriculture
Other
0
10
20
30
40
50
Share of total net-tonne kilometres (%)
0
10
20
30
40
50
Share of total net-tonne kilometres (%)
Source: Data for Pakistan, China and Russian Federation from Paul Amos, Freight Transport for Development Toolkit: Freight Transport,
World Bank (Washington, D.C. 2009). Data from India from Indian Railways Statistical Report for 2009-2010.
C. Rail Services
Recognizing early on that intermodal transport using rail for the main leg of a journey between
origin and destination provided an opportunity to facilitate intra and inter-regional trade, ESCAP has
worked closely with concerned member countries to organize demonstration runs of container block trains,
particularly along the Trans-Asian Railway Northern Corridor. Other organizations such as the Economic
Cooperation Organization (ECO), have also been active in the same area. In 2009, ECO collaborated with
the railway concerned to organize demonstration runs of container trains between Istanbul (Turkey) and
Almaty (Kazakhstan) and more recently container trains ran both ways on the 6,500-km route between
Islamabad and Istanbul via Tehran in slightly over fourteen days, it carried 20 containers with 750 tonnes of
freight.19 The Almaty-Istanbul and Islamabad-Tehran-Istanbul trains have now been turned into regular
commercial services.
By and large, efforts to develop intermodal traffic have mostly been confined to three countries,
namely: China, India and the Russian Federation. With its manufacturing base and millions of containers
passing through its ports every year, China, more than any country, has a vital economic interest in
developing efficient intermodal interfaces along its major rail routes. In 2010, containerized cargo was still
estimated to account for only 2.4 per cent of Chinese Railways’ overall cargo transport20. Yet, this low
figure should not hide that the fact that the Government of China and Chinese Railways have for a number
of years recognized the growing importance of this specific business segment and allocated substantial
resources to its development. For example, Chinese Railways has introduced double-stack container
services on a number of domestic routes together with the introduction of new specialized wagons and the
development of more powerful locomotives. Recently, Chinese Railways rolled out the newly-engineered
JT56ACe diesel-electric locomotive with a speed of 120 km/h, a tractive force of 620 kN and the capability
to run in multiple units of up to three locomotives.21
19
Christopher Jackson, “A long way to go”, Railway Gazette International, 29 August 2009, viewed on Railway Gazette
International website, http://www.railwaygazette.com (accessed 31 December 2009).
20
“Linked up?”, Containerization International, March 2011.
21
“EMD unveils 4.47 MW Chinese diesel”, International Railway Journal, September 2008.
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Review of Developments in Transport in Asia and the Pacific 2011
China is a major transit country for intermodal operation to/from landlocked countries of the
region, in particular Mongolia and the landlocked republics of Central Asia. As of July 2011, Chinese
Railways was operating an average 3.5 trains per week and per direction between the port of Tianjin and
Ulaanbaatar through the Erenhot/Zamyn Uud border point. Meanwhile, it was operating 7 trains per week
to Central Asia through the Alanshankou/Dostyk border point and another 2.5 and 1.5 trains per week to
Central Asia from Qingdao and Tianjin, respectively. In 2010, 229,104 TEUs were handled at the
Alanshankou/Dostyk border crossing point, up 25 per cent over 2009.22
Chinese Railways are also continuing to introduce new landbridge services to European
destinations. In particular, in May 2011, a 5-days-a-week direct rail freight service was launched the
Belgium Port of Antwerp and Chongqing, the latest industrial hub to develop in the south-west region of
China. As compared to the 36 days it takes for maritime transport from east China’s ports to west Europe,
the Antwerp-Chongqing Rail Freight service takes 20 to 25 days with the objective of further reducing
transit times to 15 to 20 days in future. While westbound cargo largely includes automotive and
technological goods, eastbound shipments are mostly chemicals. The service, run by Swiss inter-modal
logistics provider Hupac, their Russian partner Russkaya Troyka and Eurasia Good Transport, runs over
10,000 km from the port of Antwerp through Germany, Poland, Ukraine, the Russian Federation and
Mongolia before reaching Chongqing in China. In July 2011, another service was launched between
Chongqing and Duisburg (Germany). Hauling laptops and LCD screens, the train was routed through
Kazakhstan, the Russian Federation, Belarus and Poland and covered the distance of over 11,000 km in less
than 16 days.
The above developments in the area of services would be of little impact if they were not supported
by the emergence of modern intermodal facilities at strategic locations across china’s vast geographical
area. Here too, Chinese Railways has taken action to integrate its major freight corridors via a network of
18 logistics hubs. Such hubs have already started operation at Kunming, Shanghai, Chongqing, Chengdu,
Zhengzhou, Wuhan, X’ian, Qingdao and Dalian, and nine more are due to be commissioned in 2012 at
Tianjin, Harbin, Beijing, Guangzhou, Lanzhou, Ningbo, Shenyang, Shenzhen, and Urumqi.23
Given its east-west distances and its unique position for transit between Asia and Europe, the
railways of the Russian Federation are also implementing a number of policies and projects to attract
international intermodal traffic onto their network, in particular along the Trans-Siberian (TSR) main line.
Intermodal operation along the TSR is nothing new as container block-trains were already routinely
operated along the line in the days of the Soviet Union. However, the market potential of the line has
expanded with the growth in international trade that came after the break-up of the Soviet Union.
Aware of this potential, Russian Railways have already implemented a series of infrastructure
projects aiming at increasing capacity along the route by completing double-tracking and electrification
along the entire line. Other projects have involved the upgrading and double-tracking of the KarimskayaZabaikalsk line section linking the border crossing point between the Chinese and Russian networks to the
TSR, upgrading of installations at border stations, including Naushki at the border with Mongolia and
Zabaikalsk at the border with China, the lengthening of passing loops to accommodate longer trains, the
construction of new lines to remove bottlenecks around the cities of Perm and Chita, installation of modern
IT systems and improvement of the interface between railway and shipping in the ports of Vostochny and
Nakhodka. Altogether Russian Railways are planning investment in the order of US$ 5.5 billion in the
period to 2015 for railway development along the TSR between Nizhniy-Novgorod and Nakhodka.24
The above projects aim at fulfilling the realization of the Transsib-7 project by which Russian
Railways expect to cut transit time between the port of Nakhodka in the Russian Far-East region
and locations on the western border of the country, i.e. Krasnoe and Saint Petersburg, from fourteen days
in 2008 to under 7 days by 2015. Russian Railways expect that these projects and policies will result in
a five-time increase of rail-carried containers between Asia and Europe.
22
23
24
KAZTRANSSERVICE JSC, June 2011.
“Linked up?”, Containerization International, March 2011.
Russian Railways JSC, December 2009.
II. Railways
21
Box II-1. Trial run for Chongqing-Duisburg service
New test train from Chongqing, with 16 days journey time, is the attractive forerunner for planned regular
services from the Chinese hinterland. A container train from Chongqing in China arrived yesterday night in Duisburg
after travelling for scarcely 16 days. For the 10,300-kilometer journey along the so-called Southern route, the DB
Schenker train, which was commissioned by a global company, completed the journey in about half the time that
would have been necessary taking the sea route. The route taken by the train went south of Mongolia, through
Kazakhstan, Russian Federation, Belarus and Poland to Germany. Previous test trains on several occasions have
followed the entire route north of Mongolia taken by the Trans-Siberian Railway, which is 2,000 kilometres longer,
but involves less customs formalities.
Chongqing, the “city of lights“ on the Yangtze Kiang, with a population of just under 30 million, is one of the
largest and fastest growing cities in the world. Located in Sichuan Province in the Chinese hinterland, the city has
developed into an important production centre for various industries. Quite a few global companies of different
industries operate in Chongqing. The majority of goods exported to Europe currently take the sea route, some are
sent by air freight.
Transporting the containers to a Chinese seaport alone takes around three days. By the time they get there, the
train to Duisburg will have already covered half of its journey through China along the Eurasian Land Bridge.
Dr. Karl-Friedrich Rausch, Member of the Management Board of DB ML AG responsible for Transportation and
Logistics, commenting on the arrival of the train in the Port of Duisburg, said: “Most important of all, the time taken
for the journey from China’s interior, the train’s arrival in the middle of Germany and the possibility of delivering
the containers from here to their destinations quickly and safely, demonstrate the attractiveness of our service. We
hope that, with the journey now completed, we have once again convinced our customers of the advantages of such
a train. According to our planning schedule regular services between China and Germany could begin within this
year upon sufficient demand.”
Source: Trans-Europe-Logistics, Press release dated 5 April 2011, from website, http://www.trans-europe-logistics.com (accessed
26 September 2011)
In addition to the above, to increase the penetration of the TSR into the heartland of Europe,
Russian Railways are collaborating with the railways concerned to extend the 1,520-mm-gauge line from
Kosice (Ukraine) to Vienna via the Slovak capital at Bratislava25. According to Russian Railways,
completion of the US$ 4.3-billion project could increase freight volumes from the Russian Federation to
Europe by 60 per cent.26
Finally, Russian Railways is also a major force behind the development of the North-South corridor
that will eventually link the Baltic sea to the Persian Gulf via a line that travel from Saint Petersburg to
Moscow, down to the border with Azerbaijan and along the western shore of the Caspian sea to the border
between Azerbaijan and the Islamic Republic of Iran. However, commission of the corridor requires the
completion of the line section between Astara, the Azeri-Iranian border point and Rasht in the Islamic
Republic of Iran. In anticipation, Russian Railways have undertaken a series of infrastructure projects
along concerned line sections on their territory. Such projects have involved the double-tracking and
electrification of the Trubnaya-Aksaraiskaya line section, construction of a new track to facilitate operation
around the city of Saratov, reconstruction of the Akhtuba railway bridge near Astrakhan station, the
development of a new cross-border station at Verhny Baskunchak as well as upgrading of stations along the
route with extension of passing loops.27
Intermodal transport is not new to Indian Railways which inaugurated its first container terminal in
1981 and started to focus more specifically on this market segment in 1988 with the establishment of the
Container Corporation of India (CONCOR) to provide efficient and reliable multi-modal logistics support
for the country’s domestic as well as international trade. From its original 8 terminals, CONCOR has
expanded its network of facilities to include thirty-two terminals dedicated to both international and
25
26
27
JSC Russian Railways, June 2011.
“Yakunin reacts swiftly to economic crisis”, International Railway Journal, July 2009.
JSC Russian Railways, December 2009.
22
Review of Developments in Transport in Asia and the Pacific 2011
domestic trade, eighteen dedicated solely to international trade and nine dedicated solely to domestic trade.
Over the years CONCOR has gradually developed into a full logistics provider. In fiscal year 2010-2011,
the company handled 2,562,000 TEU, including 2,018,000 in international traffic and 544,000 domestic
TEUs.28 It currently operates forty-five international and fifteen domestic trains per day.29 The growing
traffic task of CONCOR reflects the growth in India’s international trade and occurs mostly on routes
between New Delhi and ports in the western and north-western parts of the country. These ports account for
more than 70 per cent of India’s container traffic while 75 per cent of container trains are for Inland
Container Depots located in Delhi or the neighbouring states of Uttar Pradesh, Haryana and Punjab.30
Although Indian Railways’ freight remains primarily dependent on bulk commodities which until
recently accounted for 88 per cent tonnage, most growth potential is in non bulk with container traffic
expected to rise from 25 million tonnes a year to 210 millions by 2020.31 In anticipation of this forecast, the
Government of India and Indian Railways have supported intermodal development through a series of
technical innovations and the introduction of new services, including double-stack operation to Pipavav and
Mundra ports. Other initiatives have seen the establishment of new ports and terminals with private sector
participation with the objective of adding extra capacity of 10 million TEUs in the period to 2014. ICDs and
dry ports providing complete logistics solutions are also being established as an alternative to port-side
Container Freight Stations.
In an attempt to create a healthier container business, the Government of India launched in 1994
a policy to facilitate the entry of private parties in container train operation. However, the policy got off to
a slow start and needed to be revived in January 2006. The rationale behind a revision was spurred by the
fact that CONCOR could not cover the domestic sector adequately and that private operators would bring in
more rolling-stock and establish more ICDs in hinterland areas. The revised policy created a more
conducive environment for private operators resulting in agreements having so far been signed with sixteen
operators of which thirteen have started active operation. Together these operators have supplied an
additional 115 rakes of container wagons and eight privately-owned ICDs are now in operation with land
already procured for more ICDs at other locations. In fiscal year 2010-2011, these private operators handled
580,000 TEUs, i.e. about 17 per cent of India’s rail-carried container traffic. To further encourage private
sector investment in rail freight capacity, Indian Railways have launched schemes by which investors can
apply for 20-year agreements to establish freight terminals providing added-value logistics services to third
parties. The Agreements are based on 50 per cent revenue sharing with Indian Railways with grace period
of two and five years in specific cases. The Special Freight Train Operator Scheme enables investors to
procure specialized wagons with a minimum investment of three rakes of wagons and an extension of the
20-year Agreement to the vehicle life-cycle.32
The vision of the Government of India and Indian Railways to develop intermodal transport is best
illustrated by the planned construction of the 1,483-km western dedicated freight corridor (DFC) that will
join Delhi to the port of Mumbai. The US$ 90 billion project incorporates nine Mega Industrial zones of
about 200-250 sq. km., high speed freight line, three ports, and six air ports; a six-lane intersection-free
expressway connecting the country’s political and financial capitals and a 4,000 MW power plant. Several
industrial estates and clusters, industrial hubs, with top-of-the-line infrastructure would be developed along
this corridor to attract foreign investment.33
Although the railways of China, India and the Russian Federation handle the largest volumes of
TEU, other countries have also taken steps to develop intermodal services. In 2010, the railways of
Kazakhstan (KTZ) operated 1,126 container block-trains, up 12 per cent over 2007 and handled 410,860 TEUs,
up 10 per cent over 2007.34 In addition to running container block-trains serving its own international trade,
especially with Germany and China, KTZ cooperates with railways of neighbouring countries to organize
28
29
30
31
32
33
34
Website of CONCOR at www.concorindia.com
Indian Railways, June 2011.
Indian Railways, June 2011.
“Doubts persist over IR vision”, Railway Gazette International, February 2010.
“Private funds sought for freight”, Railway Gazette International, July 2010.
Website http://delhimumbaiindustrialcorridor.com
Kazakhtransservice JSC, 2011.
II. Railways
23
the transit of Asia-Europe land-bridge services through its network, in particular from China to Germany
and Russian ports to Uzbekistan. In 2010, KTZ dispatched 195 trains carrying Chinese goods to Western
Europe35 with capacity for more.
In South-East Asia, Malaysian Railways (KTMB) has also been successful in developing its
intermodal operation. Outside of the international scene, KTMB provides 20 container block-trains a day
along five main corridors geared mostly to moving Malaysian imports and exports from/to the main ports.
Each train can load up to 60 TEUs and operate along the following core routes: Padang Besar to Penang
Port (180 km), Penang Port to Port Klang (500 km), Padang Besar to Port Klang (350 km), Pasir Gudang to
Port Klang (350 km) and Ipoh to Port Klang (240 km). However, enhancing traffic volumes is proving
arduous due to the short distances over which trucking services are proving flexible and cost-effective.
While countries in north and north-east Asia have reported progress in boosting their intermodal
operation, in other parts of the region – with the exception of India – development has been slower, often
due to a lack of investment resources. In south-east Asia even, the once successful container landbridge
jointly operated by the railways of Malaysia and Thailand has suffered a drop in popularity amongst
shippers. Established in 1999 to provide local shippers with an alternative option to shipping and road
services between Port Klang, Malaysia’s largest container port, and destinations in Cambodia, Lao PDR and
Thailand, the service gained instant popularity with a number of private logistics providers and saw several
years of steady growth in the early 2000s to reach a peak of 60,000 TEUs.36 Yet, few of these providers now
book cargo on the 54-TEU-capacity trains. Transit times that took 2.5 days when the service was
inaugurated now take 7 days and a provider that used to run eight trains a week in each direction is now
operating only two trains.37
In attracting intermodal services, railways need to gain the trust of industry. While good
infrastructure will obviously not guarantee that railways provide services matching shippers’ requirements,
perception of poor infrastructure will definitely keep them away. In this respect, the Global Competitiveness
Report published by the World Economic Forum provides an indication of how rail systems are assessed
across the region. On a scale of 1 for extremely underdeveloped to 7 extensive and efficient by international
standards, railways were assessed as follows:
Highest scores
Lowest score
Japan (6.5)
Pakistan (2.8)
Republic of Korea (5.7)
Turkey (2.7)
Malaysia (5)
Kyrgyzstan (2.7)
China (4.6)
Mongolia (2.6)
India (4.4)
Thailand (2.6)
Australia (4.3)
Armenia (2.5)
Russian Federation (4.2)
Bangladesh (2.5)
Azerbaijan (3.9)
Viet Nam (2.5)
Georgia (3.9)
Cambodia (1.8)
Kazakhstan (3.9)
Philippines (1.7)
Source: World Economic Forum, Executive Opinion Survey in The Global
Competitiveness Report 2011-2012.
D. Trans-Asian Railway Network Development
The original TAR concept was to provide a continuous, 14,000 kilometre rail link between
Singapore and Istanbul, with the potential to reduce transit times and costs between countries in the region
and possibly extending into Europe and Africa. The Trans-Asian Railway network comprises approximately
117,000 kilometres of rail routes (see Map of the Trans-Asian Railway). Table II-7 below outlines the
regions and countries along the TAR.
35
36
37
“On the tracks of the silk road”, Railway Gazette International, December 2011.
“Neighbours prioritise home improvements”, Railway Gazette International, December 2011.
“Intermodal Revolution”, Containerization International, April 2010.
R. F.
Izmir
Toprakkale
Khorramshahr
Khaneghein
Khosravi
Jolfa
Yerevan
ARMENIA
Kapikoy
Tatvan
Van Razi
Malatya
FERRY CROSSING
POTENTIAL TAR LINK TO BE CONSIDERED
BREAK-OF-GAUGE
TAR LINK - PLANNED/UNDER CONSTRUCTION
POTENTIAL TAR LINK
1,000 mm
1,000/1,435 mm
1,435 mm
1,067 mm
Aktau
Sangan
Gwadar
Bishkek
Karachi
Mumbai
Khokropar
Hyderabad
Rohri
Lodhran
Khanewal
Multan
Alataw Pass
Sitarampur
Jolarpettai
UNITED NATIONS
2011
MALDIVES
Male
Colombo
SRI LANKA
Sri Jayewardenepura
Kataragama
Kotte
Matara
Madurai Rameswaram
Talaimannar
Trincomalee
Tuticorin
Bangalore
BHUTAN
KakarvittaThimphu
Shiveekhuren
Ruili
Mandalay
Lashio
Lao Cai
Kunming
Hanoi
Xian
Boten
Banda Aceh
THAILAND
Vientiane
Nong Khai
Suvannakhet
Changsha
Hengyang
Zhengzhou
Beijing
Johor Bahru
Singapore
Merak
Bandung
Panjang
Jakarta
INDONESIA
Kertapati
Banyuangi
Surabaya
Kalimantan
INDONESIA
Borneo
MALAYSIA
Bandar Seri
Begawan
DEMOCRATIC
Grodekovo
Suifenhe Ussurijsk
Vostochny
Khasan
Tumangang
Nakhodka
Rajin
Vladivostok
Chongjin
Khabarovsk
PHILIPPINES
Shanghai
Manila
Busan
REPUBLIC OF
KOREA
TIMOR-LESTE
Dili
Mokpo Gwangyang
Daejeon
Iksan
Seoul
OF KOREA
Pyongyang PEOPLE'S REPUBLIC
Qingdao
Dalian
Dandong
Shenyang
Changchun
Harbin
Lianyungang
Nanjing
Jinan
Tianjin
Numrug
BRUNEI DARUSSALAM
Ho Chi Minh City
SINGAPORE
Lubuklinggau
Muaro
Teluk Bayur
Naras
Kuala
Port Lumpur
Klang
Ipoh MALAYSIA
Rantauprapat
Belawan
Medan
Hat Yai
Sungai Kolok
Tumpat
Sihanouk Ville
Nakhon
Bangkok ratchasima
Lamchabang Poipet
Port
CAMBODIA
Sattahip
Phnom
Port
Penh
Padang Besar
Butterworth
Namtok
Nakhonsawan Mukdahan
Mae Sod
Chiang Mai
Thanphyuzayat
Yangon
Erenhot
Bichigt
Khuut
Zabaykalsk
Manzhouli
Guangzhou
Nanning
QuanTrieu
Shenzhen
Hong Kong, China
Dong Dang
Halong
Hai Phong
LAO PEOPLE'S
Baoshang
Yuxi
Baoji
Naypyitaw Chiang Rai DEMOCRATIC VIET NAM
REPUBLIC
MYANMAR
Kalay
Lanzhou
Gashuun Sukhait
Ereen tsav
Choibalsan
Zamyn Uud
Sainshand
Chita
Karimskaya
Ulaanbaatar
Ulan-Ude
Tavantolgoi
Dali
Kachang
c
Chinese Line
Indian Line
CHINA
Naushki
Sukhbaatar
MONGOLIA
Irkutsk
Nariin Sukhait
Tayshet
Mahisasan
Jiribam
Tamu
Kolkata Chittagong
Darsana
Dhaka
BANGLADESH
Shahbazpur
Patna Birol
Birgunj
Chennai
Nagpur
Vijayawada
INDIA
Wardha
Raxaul
Mughalsarai
Kanpur
Turpan
Urumqi
Kathmandu
NEPAL
Brahma Mandi
Indian Line
Chinese Line
Bhopal
Mathura
New Delhi
Attari
Wagah
Jammu
and
Kashmir
Kashi
KYRGYZSTAN
Dostyk
Aktogai
Lokot
Novosibirsk
RUSSIAN FEDERATION
Islamabad
Peshawar
PAKISTAN
Chaman
Quetta
Spezand
Kabul
Hairaton Tube
Koh-i-Taftan
Dalbandin
Mirjaveh
Bandar-e-Abbas
Mointy
Astana
Lugovaya
Arys
Tashkent
AFGHANISTAN
Herat
Mashhad
Sarakhs
Kashmar
Fariman
Torbat
Heidarieh
Bandar-eAmirabad
Garmsar
ISLAMIC
Arak
Badrud REPUBLIC OF IRAN
Chadormalu
Esfahan
Ardakan
Ahvaz
Bafq
Bandar Emam
Zahedan
Qom
Tehran
Qazvin
Ashgabat Turkmenabad
Bukhara
Omsk
Petropavlovsk
Osh
Yangi Bazar
Dushanbe
TAJIKISTAN
Yavan
Kulyab
Kurgan
KAZAKHSTAN
UZBEKISTAN
TURKMENISTAN
Dashowuz
Tobol
Yekaterinburg
Kandagach
Beyneu
Turkmenbashy
annd
Bandar-e-Anzali
raa
Astara
Baku
Poti GEORGIA
m
mu
Samur
Tbilisi
Yalama
Batumi
Dogukapi
AZERBAIJAN
Cetinkaya
Iskenderun
Track Gauges
Mersin
Makat
Uralsk
Ganushkino
Ozinki
Kotelnich
Astrakhan
Olya
Volgograd
Krasnodar
Novorossiisk
Veseloe
Rostov
Likhaya
Moscow
Kavkaz
Samsun
TURKEY
Ankara
Eskisehir
Istanbul
1,676 mm
1,520 mm
Kapikule
Syzemka
Krasnoe
St. Petersburg
Buslovskaya
TRANS-ASIAN RAILWAY NETWORK
Figure II-3. Map of the Trans-Asian Railway Network (2011)
Tokyo
JAPAN
PAPUA NEW GUINEA
24
Review of Developments in Transport in Asia and the Pacific 2011
II. Railways
25
1. Missing links
A “missing link” is an absence of physical connection between the railway networks of
neighbouring countries, or an absence of continuous railway infrastructure within one country. Local
geography such as lakes and seas may cause interruptions to railways, as is the case with Lake Van and the
Bosphorus in, respectively, the eastern and western parts of Turkey. Missing links between networks of
neighbouring countries occur either because the link was never there in the first place (for example,
between China and Myanmar) or because it ceased to exist due to political events – for example, between
the Democratic People’s Republic of Korea and the Republic of Korea. In total, the TAR network still
includes 10,500 kilometres of missing links. While continuous rail infrastructure already connects
North-East Asia38 and Europe, the infrastructure is somewhat less coherent in other subregions when it
comes to cross-border rail connections.
Table II-7. Overview of the Trans-Asian Railway
Region
Network length
(kilometres)
Countries
1. Existing lines
South-East Asia
Cambodia, Indonesia, Lao People’s Democratic Republic,
Malaysia, Myanmar, Singapore, Thailand, Viet Nam
13,900
North-East Asia
China, Democratic People’s Republic of Korea, Mongolia,
Republic of Korea, Russian Federation
45,000
Central Asia, Caucasus,
Islamic Republic of Iran,
and Turkey
Armenia, Azerbaijan, Georgia, Islamic Republic of Iran,
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Turkey,
Uzbekistan
29,750
South Asia
Bangladesh, India, Nepal, Pakistan, Sri Lanka
17,650
Sub-total:
106,300
Total TAR network:
116,800
2. Missing links
10,500
Source: ESCAP, Priority Investment Needs for the Development of the Trans-Asia Railway Network, ST/ESCAP/2557, 2009.
Table II-8 below summarizes the missing links in the TAR network as well as the countries
concerned and the status of the link. Such elements as the importance of the link in regional economic
development or trade may influence the decision to support a particular project. However, the trafficgenerating potential of each route compared with the cost of constructing the necessary infrastructure will
no doubt be a crucial factor, especially if private sector investments are to be sought.
Table II-8. Missing links in the Trans-Asian Railway network
Link
Countries Concerned
Distance (km)
Estimated Cost
(US$ million)
Central Asia and the Caucasus region, including the Islamic Republic of Iran and Turkey
Gagarin-Meghri
Armenia-Islamic Republic of Iran
469.6
2,000
Tatvan-Van
Turkey
240
N/A
Qazvin-Rasht-Anzali-Astara
Islamic Republic of Iran
370
969
Azerbaijan
Kars-Akhalkalaki
Balykchi-Arpa
Uzgen-Arpa-Torugart-Kashi
12.4
981.4
Turkey
76
Georgia
29
105
420
Kyrgyzstan
357
2,000
Kyrgyzstan
270
2,000
China
38
8.2
378.2
China, Kazakhstan, Korean Peninsula, Mongolia, Russian Federation.
26
Review of Developments in Transport in Asia and the Pacific 2011
Table II-8. (continued)
Link
Countries Concerned
Arak-Khosravi-Khaneghein
Islamic Republic of Iran-Iraq
Sangan-Herat
Islamic Republic of Iran
Afghanistan
Distance (km)
Estimated Cost
(US$ million)
566
(up to border)
820
77
78
114
(61 + 53)
75
(for 61-km)
191
153
570
1,000
China/North/North-East Asia
Thannaleng-Kunming
Lao People’s Democratic Republic
China
Lashio-Dali
Denchai-Tachilek-Jinghong
599
2,980
1,169
3,980
Myanmar
142
480
China
350
2,162
492
2,642
Thailand
326
Myanmar
195
China
141
589
2,138
South-East Asia
Sisophon-Aranyaprathet
Cambodia
48
80
Thailand
6
0.5
54
80.5
257
480
Bat Deng-Trapeang Se/
Cambodia
Loc Ninh-Hanoi
Viet Nam
Vientiane-Mu Gia-Vung An
Lao People’s Democratic Republic
Viet Nam
Bua Yai-Savannakhet
Thailand
Lao People’s Democratic Republic
Ubonratchatani-Pakse-Savannakhet-
Thailand
Devsavanh-Dong Ha
Lao People’s Democratic Republic
Viet Nam
Namtok-Thanpyuzayat
129
949
385
1,429
450
2,342
119
143
569
2,485
283
908
4
6.3
287
914
90
288
415
710
84
226
589
1,224
Thailand
153
491
Myanmar
110
246
263
737
South Asia
Dalbandin-Gwadar
Pakistan
515
1,250
Dohazari-Gundum
Bangladesh
129
300
Kalay-Jiribam
Myanmar
127
98
India
219
649
346
747
II. Railways
27
Over the period 2009-2011, heightened interest has been expressed to put in place the missing links
and a number of initiatives are being implemented. Through a tripartite agreement between the
governments of the Islamic Republic of Iran, Azerbaijan and the Russian Federation, the Iranian Islamic
Republic Railways is constructing the 380-kilometre Qazvin – Astara line section that will complete the
North-South Corridor and offer direct rail movement between the Baltic Sea and the Persian Gulf through
the Russian Federation and Azerbaijan with connection to Western Europe and the Indian subcontinent. The
first phase of this rail linkage, between Qazvin and Rasht is nearing completion. In another development,
the Governments of Azerbaijan, Georgia and Turkey are cooperating to construct a 105-kilometre rail
section between Kars (Turkey) and Akhalkalaki (Georgia). Costing an estimated US$ 420 million, the
project is part of the Kars-Tbilisi-Baku project with additional investment aiming at double-tracking and
electrifying the entire corridor. The Government of Azerbaijan has committed US$ 775 million to the
project, while the Government of Georgia has committed to build the Tbilisi by-pass to ease movement
around the capital.
Yet, if the required funding is allocated to planned projects, no progress will be more impressive
than in South-East Asia which, to date, has the longest route-kilometres of missing links on the TAR
network. In the period 2009-2011, a number of feasibility studies have been finalized on all missing links
and pledges of financial support have been expressed from governments under national plans or bilateral
assistance, in particular under the drive of the Ministry of Railways of China regarding rail infrastructure
development between the province of Yunnan and neighbouring countries, i.e. Lao People’s Democratic
Republic and Myanmar.
Related projects form an integral part of the transport plan developed by the ASEAN secretariat
under its “Brunei Action Plan” of November 2010 that recognizes that “an efficient, secure transport
network is vital for realizing the full potential of regional economic integration as well as further enhancing
the attractiveness of the region as a single production, tourism and investment destination”.39 While
recognizing that, due to financial constraints, the Singapore-Kunming Rail Link (SKRL) project has
progressed slowly, the Plan lists as one of its goals the establishment of “efficient integrated, safe and
environmentally sustainable regional road and rail corridors linking all members and regional trading
partners”.40 Further the Plan stipulates that the “political motivation to complete the SKRL is significantly
high” and sets 2020 as the year by which the eight missing links shown below will be completed, thereby
rail-connecting all ASEAN countries.41
In many countries, the construction of the missing links is part of wider national programmes to
enhance rail transport infrastructure. In Cambodia, network rehabilitation is driven under a 30-year
concession agreement to Toll Holdings Ltd. to operate and maintain the existing railways. The Agreement
became operative in October 2009. In Viet Nam, rail development projects follow the Railway Law of 2008
establishing the country’s Railway Development Strategy to 2020.42
Countries
Links
Distance (km)
Target year for
completion
Cambodia
Poipet-Sisophon
48
2013
Cambodia
Phnom Penh-Loc Ninh
255
2015
Lao People’s Democratic Republic
Vientiane-Thakek-Mu Gia
466
2020
Myanmar
Thanbyuzayat-Three Pagoda Pass
111
2020
Thailand
Aranyaprathet-Klongluk
6
2014
Thailand
Three Pagoda Pass-Namtok
153
2020
Viet Nam
Loc Ninh-Ho Chi Minh
129
2020
Viet Nam
Mu Gia-Tan Ap-Vung Ang
119
2020
39
ASEAN secretariat, Brunei Action Plan, I. Introduction.
ASEAN secretariat, Brunei Action Plan, II. ASEAN Transport Sector: Accomplishments and Challenges.
41
ASEAN secretariat, Brunei Action Plan, III. Strategic Goals, Actions and Milestones for 2011-2015.
42
Report of the 13th Special Working Group Meeting on Singapore-Kunming Rail Link, Nay Pyi Taw, Myanmar, 18 October
2011. Progress report by Cambodia.
40
28
Review of Developments in Transport in Asia and the Pacific 2011
China for its part has continued over the period to channel resources into upgrading its existing
links and further extending them to their ASEAN neighbours. Towards Viet Nam, the Yuxi-Mengzi
(141 km) and Mengzi-Hekou (141.4 km) line sections are expected to be completed in 2012 and 2013,
respectively. Towards Lao People’s Democratic Republic, capacity expansion on the Kunyang-Yuxi line
section (49 km) is ongoing and expected to be completed in 2012, while a feasibility study on the extension
of the line from Yuxi to Mohan at the border with Lao People’s Democratic Republic is in progress. Finally,
towards Myanmar, capacity expansion of the Kunming-Guangtong line section (94 km) is due for
completion in 2013, while similar work on the Guangtong-Dali section (175 km) started in 2011. As regards
the missing link, construction is in progress on the first section from Dali to Baoshan (133.6 km) with 2013
targeted for completion. The remaining section to the border point at Ruili is under preliminary design.43
Other missing links have been earmarked as priority projects by concerned countries such as the
219-kilometre Jiribam-Moreh line section that will extend India’s rail system to the border with Myanmar.
However, in early December 2011, following political disagreement between the local government of the
north-eastern state of Manipur and the central government in Delhi, construction was halted on the first
section between Jiribam and Tupul.44
Overall, according to ESCAP estimates, building the 10,500 km of missing links in the TAR
network will require up from US$ 25 billion, with this figure likely to be revised upwards as past studies
are updated.
2. Break-of-gauge
As the TAR network traverses an extensive geographical area, it is understandable that its
constituent countries have different standards and levels of development. In their most visual form – albeit
not the most constraining one – different standards have resulted in the adoption of different track gauges45
by national railways. The mainline railway networks that make up the TAR are comprised of five different
track gauges: 1,676 mm, 1,520 mm, 1,435 mm, 1,067 mm and 1,000 mm.46 A break-of-gauge occurs when
the railways of neighbouring countries with different track gauges meet at the border. Table II-9 below sums
up break-of-gauge points on the TAR network.
Discontinuity of track gauge also occurs within individual domestic railway networks47 as in, for
example, Bangladesh, India and Pakistan. However, the routes nominated by India and Pakistan as part of
the TAR network are all of 1,676 mm configuration. Australia, which due to its geographical location is not
a member of the TAR network, also uses different track gauges.
Table II-9. Breaks-of-gauge on the Trans-Asian Railway
China
China
China
China
Russian Federation
Turkmenistan
Pakistan
Armenia
Countries concerned
Gauge transition
Viet Nam
1,435 mm 1,000 mm
Russian Federation
1,435 mm 1,520 mm
Kazakhstan
1,435 mm 1,520 mm
Mongolia
1,435 mm 1,520 mm
Democratic People’s Republic of Korea
1,520 mm 1,435 mm
Islamic Republic of Iran
1,520 mm 1,435 mm
Islamic Republic of Iran
1,676 mm 1,435 mm
Turkey
1,520 mm 1,435 mm
Bangladesh
East Zone
West Zone
1,000 mm 1,676 mm
43
Report of the 13th Special Working Group Meeting on Singapore-Kunming Rail Link, Nay Pyi Taw, Myanmar, 18 October
2011. Progress report by China.
44
Source: The Times of India, 10 December 2011.
45
The track gauge is the distance in millimetres between the inner surfaces of each rail.
46
Table 1 in Part A of this chapter indicates the track gauges predominantly used on the region’s individual rail networks.
47
Various techniques exist to overcome these discontinuities. They include transshipment (manual or mechanical), bogie
exchange and the use of variable gauge bogies.
II. Railways
29
In a number of other countries, gauges different from the predominant one exist on spur lines
located in the vicinity of territorial limits to facilitate cross-border movements. Thus China, which operates
a mostly standard gauge (1,435 mm) network, has a metre gauge line section from the border with
Viet Nam to Kunming and Viet Nam which operates a mostly metre-gauge network has a number of short
standard gauge or dual gauge48 lines in the north of the country to facilitate traffic with China. In other
cases, the railways of the Russian Federation have extended a broad gauge line (1,520 mm) over 54 km into
the territory of the Democratic People’s Republic of Korea to reach the port of Rajin and the broad gauge
utilized by Pakistan (1,676 mm) extends into the territory of the Islamic Republic of Iran to Zahedan.
Recognizing that break-of-gauge points can be an obstacle to smooth operation, a number of
railways have invested resources to enhance the efficiency of cross-border stations where a break-of-gauge
occurs. Thus, modernization of yard infrastructure has been implemented by Russian Railways at
Zabaykalsk and Kazakh Railways at Dostyk to facilitate cross-border movements to and from China. In
2011, Russian Railways completed the rehabilitation of the 54 km line section from Khasan at the border
with the Democratic People’s Republic of Korea to its port of Rajin and initiated collaboration with the
railways of Austria, Slovakia and Ukraine on a US$ 4.3 billion project to construct a broad gauge line from
Kosice (Ukraine) to Vienna via the Slovak capital at Bratislava to reach deeper into the heart of Europe.49
While it is unlikely that individual railway organizations will envisage re-gauging their entire
network in the near term, Bangladesh and India have adopted policies to convert their existing metre-gauge
and narrow gauge line sections to broad-gauge. In Bangladesh, where the policy is relatively new,
Bangladesh Railway has started to ‘dual-gauge’ a number of line sections to facilitate movement between
the East Zone, which operates on metre-gauge, and the West Zone, which operates predominantly on broad
gauge. As of 2010, 375 km of routes had been dual-gauged.50
In India, “Project Unigauge” was launched in fiscal year 1990-1991 with the conversion to broad
gauge of Jaipur-Sawai Madhopur, Delhi-Rewari, Mahesana-Viramgam and Chhapra-Aunrihar. Since then,
Indian Railways has allocated part of its annual budgets to the project. 1,516 kilometres and 837 kilometres
of track were converted during 2009-2010 and 2010-2011, respectively, and a target of 1,017 km has been
fixed for 2011-2012.51
Finally, it must be noted that additional break-of-gauge points will appear on the TAR network
when some of the missing links are in place. This will be the case in 2013 when the Kars (Turkey) –
Akhalkalaki (Georgia) section is completed. Although not yet designated to be part of the TAR network, the
soon-to-be-completed new 677-km corridor from Uzen in Kazakhstan to Gorgan in the Islamic Republic of
Iran via Turkmenistan will also create a break-of-gauge at the border between the Islamic Republic of Iran
and Turkmenistan.
E. Selected Investment Projects in the Railway Sector
Table II-10 summarizes selected railway investment projects in the ESCAP region completed
during the past five years, currently committed to or in progress, or planned for commencement within the
next five years. As with the table of selected road infrastructure projects, the list is not intended to be
comprehensive, but presents a sample of some of the more significant construction undertakings in the
region.
48
Dual gauge involves the provision of two track gauges on a single track foundation through the insertion of a third rail.
Ukraine operates on a broad gauge line similar to the one in the Russian Federation, while the railways of Austria and
Slovakia operated on standard gauge.
50
Bangladesh Railway, Information Book, 2010.
51
Rail Business, “Gauge Conversion and Execution of New Route Kilometers on Indian Railways”, 28 August 2011 through
www.railbizindia.com
49
30
Review of Developments in Transport in Asia and the Pacific 2011
Table II-10. Selected railway infrastructure development projects in the ESCAP region
(as of 2011)
Country/Region
Afghanistan
Selected railway investment projects
Hairatan to Mazar-e-Sharif Railway Project
Status
Completed
Overview: The Project involved the construction of a new 75-kilometre (km) railway
line between Hairatan at the border with Uzbekistan and Mazar-e-Sharif in
Afghanistan. The Project represents a first phase of a larger rail network planned
across the north and other parts of the country, including links to Herat, Tajikistan, and
Pakistan. It forms part of the Transport Strategy and Action Plan agreed under the
Central Asia Regional Economic Cooperation (CAREC) Programme.
Funding: US$ 170 million, ADB, Government of Afghanistan.
Status: Construction of the railway line and related facilities has been completed, and
preparations are progressing to establish commercial operations of the new line.
Completion date: September 2011.
Armenia-Islamic
Republic of Iran
Sevan to Meghri Railway Project
In Progress
Overview: Islamic Republic of Iran and Armenia agreed on the joint construction of
a 470-kilometre railway, passing through Armenian territory and including the missing
link Vanadzor – Fioletovo/Dilijan). The project will connect Armenia’s rail network to
the Islamic Republic of Iran’s Persian Gulf ports. It also has economic significance for
Armenia’s Syunik region, for its mining, agricultural and construction sectors.
Funding: US$ 1.5 billion. In 2009, Russia announced its intention to participate in the
railway and committed part of the $ 100 million required for the first 31 km section of
the rail line.
Completion date: 2014-2015.
Australia
2009-2018 Hunter Valley ARTC Nation Building Programme
In Progress
Overview: A package of projects aimed at increasing rail capacity along a key
commodity supply corridor in New South Wales. Notable features include additional
(duplication and/or triplication) tracks, new signalling systems and higher-capacity
passing loops.
Funding: AU$ 508 million.
Completion date: 2012, in phases.
Azerbaijan,
Georgia, Turkey
Rehabilitation and construction of Marabda-Kartsakhi Baku-Tbilisi-Kars TAR
and linkage
Overview: As part of a programme to establish a railway connection between
Azerbaijan, Georgia and Turkey, the project involves the construction and
rehabilitation of the Marabda-Kartsakhi Baku-Tbilisi-Kars section of the TAR network
in these three countries. As part of the Baku-Tbilisi-Kars railway a new 105 km branch
will be built. About 76 kms of this branch will stretch via Turkey and the remaining
29 kms will go through Georgia.
Funding: Azerbaijan government loan of USD 575 million to Georgia, with the first
tranche of USD 138 million for the rehabilitation and construction of the section
between Tetritskaro and Akhalkalaki. The Azerbaijani government is also extending
a loan of USD 775 million for construction and rehabilitation of the Marabda border
with Turkey (Kartsakhi) section of the TAR.
Status: Construction has begun on the linkages in each country.
Completion date: 2012.
In Progress
II. Railways
31
Table II-10. (continued)
Country/Region
Bangladesh
Selected railway investment projects
Proposed Multi-tranche Financing Facility and Technical Assistance Grant:
Railway Sector Investment Programme
Status
In Progress
Overview: The investment will support two broad programmes: railway sector policy
and capacity building reform of Bangladesh Railway (BR) and infrastructure and
rolling stock capacity improvement projects to overcome capacity bottlenecks in
sectors where such investments are both economically and financially viable, e.g., the
Dhaka-Chittagong and the Dhaka-Darsana-Khulna corridors where it can support
major direct investment.
Status: In April 2010, the ADB called for tenders for the first project: the construction
of Double Line Track from Tongi to Bhairab Bazar including Signalling on DhakaChittagong Main Line.
Funding: US$ 924 million, ADB, Government of Bangladesh.
Completion date: 2013.
Bangladesh
Construction of Dohazari-Ramu-Cox’s Bazar and Ramu-Gundum metre-gauge
line sections of Bangladesh railway network
In Progress
Overview: First planned in 1890, the 100 km line will start from the current railhead at
Dohazari, south-east of Chittagong, and run to Satkania, Dulahazra, Chakarin, Edgaon,
Ramu and Cox’s Bazar, with four major river bridges. A 28 km branch will also run
from Ramu to the border with Myanmar at Gundum. In effect this will close one of the
missing links in the Trans-Asian Railway network, and provide a rail connection
between South and South-East Asia.
Funding: The estimated cost is about US$ 300 million, which is being co-funded by
the Asian Development Bank and the government of Bangladesh.
Status: Construction began in April 2011.
Completion date: 2013.
China
Lanzhou-Chongqing Railway Project
In Progress
Overview: The proposed project is the construction of the Lanzhou-Chongqing
Railway starting from the east Lanzhou station and ending at the North Beibei station
in Chongqing (Figure I-1). The new line consists of 832.94 kilometre of mainline of
which, 799 kilometre is new line. The double-track electrified line will be constructed
to MOR’s Class I standards. Its carrying capacity is designed to provide high speed,
200 kilometre/hr passenger trains, as well as lower speed express passenger train
service (160 kilometre/hr) and double stack container freight trains at 120 kilometre/hr.
Funding: US$ 8.2 billion, ADB, Ministry of Railways (MOR), Sichuan and Gansu
Provinces.
Completion date: 2015.
China
Third National Railway Project
Overview: Expansion of the capacity of the railway system between Guizhou and
Yunnan provinces. The two basic components of the project includes: (1) the
electrified railway line between the city of Liupanshui in Guizhou Province and the
city of Zhanyi in Yunnan Province will be upgraded to increase its capacity and allow
for higher operating speeds of trains; and (2) the capacity of the Ministry of Railways
on railway planning, management and technology will be strengthened, through
studies, technical assistance and training.
Funding: World Bank, US$ 1,165.6 million.
Completion date: 2012.
In Progress
32
Review of Developments in Transport in Asia and the Pacific 2011
Table II-10. (continued)
Country/Region
China
Selected railway investment projects
Guiyang-Guangzhou Railway
Status
In Progress
Overview: The project will provide additional capacity and reduce transport time
between south-west China and the Pearl River delta region. The project is the
construction of a new double track electrified railway line of about 857 kilometre and
railway stations between Guiyang in Guizhou province and Guangzhou in Guangdong
province (GuiGuang line).
Funding: World Bank, ADB, US$ 12,527 million.
Completion date: 2015.
China
Taiyuan-Zhongwei Railway
In Progress
Overview: In 2006, the Asian Development Bank approved a loan for the development
of the Taiyuan-Zhongwei Railway. The project is designed to promote sustainable
economic growth by constructing 944 kilometres of railway between Taiyuan (Shanxi)
to Zhongwei and Yinchuan (Ningxia). 520 kilometres of this will be double track
(from Dingbian to Yinchuan) and the remaining 424 kilometres will be single track. In
2008, China Railway Electrification Bureau (Group) Co., Ltd. won the construction
contract for project at a bidding price of RMB 1.17 billion.
Funding: ADB, US$ 300 million.
Completion date: 2012.
China
Dali-Lijiang (Yunnan Province) Railway Project
In Progress
Overview: Construction of 167 kilometres of single-track, standard gauge, Class I
railway, reserved for electrification, between Dali and Lijiang, and expand the capacity
of the existing Guangtong-Dali line (Guangda line) to accommodate additional traffic.
The new line comprises 11 passenger stations, as well as freight yards.
Funding: US$ 548 million, ADB, AFD, Province of Yunnan.
Completion date: December 2011.
India
Dedicated freight corridor projects (Phase I)
Overview: In March 2007, the first two (of six) dedicated freight corridors were
approved in principle by the Indian government – the Eastern Corridor (RewariVadodara-JNPT), and the Western Corridor (Sonenagar-Ludhiana). They are intended
to form the first phase of a freight network totalling around 10,000 kilometres, which
is to be developed over the next decade at a cost of approximately US$ 18 billion. The
six corridors are aimed at easing capacity constraints on the routes linking the
metropolitan regions of New Delhi, Kolkata, Mumbai and Chennai, which at present
carry around 80 per cent of India’s rail freight traffic.
Funding: Approximately one-third of the initial phase is to be funded through equity
and two-thirds from debt. The Eastern Corridor is estimated to cost approximately
US$ 3,928 million and the Western Corridor is estimated to cost approximately
US$ 3,687 million. Negotiations are underway for loans from the Japan Bank for
International Cooperation, World Bank and Asian Development Bank.
Status: In June 2011, the Dedicated Freight Corridor Corporation of India (DFCCIL)
began a bidding process to select Indian and Japanese joint venture partners to finance
and build the 1,490-km western corridor. The construction will occur in two phases.
The first will be a 1,000 km stretch between Rewari in Haryana and Vadodara in
Gujarat.
Completion date: 2016 for 1st phase, 2017 for entire network of 3 phases of two
corridors.
In Progress
II. Railways
33
Table II-10. (continued)
Country/Region
India
Selected railway investment projects
Construction of Jiribam-Moreh (India)/Tamu (Myanmar)-Kalay section of rail
connection between the two countries.
Status
In Progress
Overview: Ministry of Railways sanctioned the construction of rail link in 2004. This
project will extend a linkage between Jiribam – Tupul, which has been under
construction since 2004, from Tupul to Imphal, and from there to Moreh. When
completed, the railway will connect India’s north-eastern state of Manipur with
Myanmar. This is a missing link in the southern corridor of the Trans-Asian Railway
and its construction will progress the establishment of a rail link between India and
China via northern Myanmar. On the Indian side of the border the total length of the
link between Jiribam and Moreh is 219 km and the section between Jiribam and
Imphal is 98 km.
Funding: The estimated cost of building the section between Jiribam and Imphal is
US$ 589 million which is being funded by Manipur state and federal governments of
India.
Status: The project has been designated as a ‘national project’ to reflect its importance
and the need for it to be quickly implemented. Construction has begun.
Completion dates: Jiribam-Tupul: 2014; Tupul-Imphal: 2016.
Indonesia
Indonesia High-Speed Rail Jakarta Bandung Surabaya
Announced
Overview: In 2008, it was announced that the Department of Transportation was
seeking investors for a 683-kilometre high speed line between Jakarta and Surabaya.
Funding: US$ 6.14 billion. The intention of the Indonesian Government was to
finance the project through public private partnerships.
Status: In 2010 the Directorate of Railways of the Ministry of Transportation called
for expressions of interest from Consortia interested in participating in a public private
partnership to develop the railway. In August 2010, feasibility studies were conducted
by consortia, and proposals were reported to have been submitted by Chinese, French,
and German firms.
Completion date: No completion date available yet.
Islamic Republic of
Iran-KazakhstanTurkmenistan
Islamic Republic of Iran-Turkmenistan-Kazakhstan Railway Project
Planned
Overview: The total route of the railway is 1,000 kilometres, of which 90 kilometres
would be in the Islamic Republic of Iran, 700 kilometres in Turkmenistan and
210 kilometres in Kazakhstan.
Funding: US$ 650 million, Islamic Development Bank.
Completion date: 2012.
Mongolia
South Gobi-People’s Republic of China Railway Development Programme
Overview: The Project will construct and operate approximately 225 kilometres of
railway located in Mongolia’s South Gobi Desert from Ukhaa Khudag (UHG) coal
mine to Gashuun Sukhait on the Mongolia – PRC border in the Inner Mongolia
Autonomous Region of the PRC. The principal needs for the railway are to export
coking coal, copper, and other mineral resources originating from various mines in
South Gobi to PRC.
Funding: US$ 243 million, ADB, private sector (undisclosed).
Completion date: No completion date available yet.
Planned
34
Review of Developments in Transport in Asia and the Pacific 2011
Table II-10. (continued)
Country/Region
Sri Lanka
Selected railway investment projects
Upgrading of Colombo-Matara railway line
Status
In Progress
Overview: The upgrade/construction of a railway line linking Colombo-Matara is split
into two stages. During the first stage, the existing rail line will be strengthened by
adding new rails and sleepers. During the second stage, a dual railway line will be
constructed from Kalutara South to Matara.
Funding: Sri Lankan Government, US$ 34 million and foreign funding (by way of
loan or grant) of US$ 137 million.
Completion date: Stages 1 and 2 of the project are due for completion by 2012.
Sri Lanka
Matara-Kataragama Railway line Extension (Stage 1 and 2)
In Progress
Overview: The construction of a 110-kilometre railway line between Matara and
Kataragama is aimed at benefitting commuters who travel to the remote areas of
Matara by promoting economic development and inter-regional connectivity. The first
stage of the project involves the construction of 27 kilometres of track between Matara
and Beliatta. The second stage of the project involves the construction of 83 kilometres
of railway between Beliatta and Kataragama. Construction is due to begin late 2007.
Funding: US$ 54 million Sri Lankan Government, and foreign funding (by way of loan
or grant) of US$ 217 million.
Completion date: Stages 1 and 2 of the project are due for completion by 2014.
Turkey
Ankara-Istanbul High-Speed Train Project
In Progress
Overview: A new 409-kilometre double-line track will be built between Ankara and
Istanbul. The project aims to cut rail travel time between the two cities from 6 hours
30 minutes to 3 hours. The project is split into two phases: the construction of
a 251-kilometre railway between Sincan and Inonu, and the construction of
a 158-kilometre railway between Inonu and Kosekoy. High speed trains coming from
Anatolia will use the Marmaray tunnel, which is being built under the Bosphorus
between the two sections of Istanbul, to approach downtown Istanbul.
Funding: US$ 2.01 billion, US$ 4,500 million including Marmaray Project.
Completion date: 1st phase (Ankara to Eskisehir) completed in March 2009, 2nd phase
including Marmaray Project expected to be completed in 2013.
Uzbekistan
Railways Development Project
Planned
Overview: The project consists of the rehabilitation of 137 kilometres of track and
roadbed between Marokand and Karshi. This single track line is located in the south of
Uzbekistan and is linked to both Afghanistan via a rail bridge over the Amudarya River
and to Turkmenistan and Tajikistan.
Funding: US$ 72 million, ADB, Government of Uzbekistan.
Completion date: 2012.
Viet Nam
Greater Mekong Subregion, Kunming-Haiphong Transport Corridor: Yen VienLao Cai Railway Upgrading Project
Overview: The Government of Viet Nam is preparing the Kunming-Haiphong
Transport Corridor project to upgrade and rehabilitate transport infrastructure from the
Haiphong Port in Viet Nam to Kunming City in China. This component of the corridor
project is aimed at upgrading 285 kilometres of railway from Yen Vien to Lao Cai
(near the border with China).
Funding: US$ 64 million, ADB.
Completion date: 2012.
In Progress
III. Roads and Highways
35
III. ROADS AND HIGHWAYS
A. National Road Sector Development
Over the past two decades, road length in the ESCAP region has grown at a faster pace than in any
other parts of the world.
Figure III-1. Annual average growth in road length in selected ESCAP countries
China (1990-2010)
Lao People’s Democratic Republic (1990-2010)
Afghanistan (1990-2006)
India (1990-2008)
Indonesia (1990-2006)
Kyrgyzstan (1990-2006)
Malaysia (1990-2006)
Republic of Korea (1990-2010)
Bangladesh (1990-2010)
Pakistan (1990-2010)
Armenia (1990-2009)
Islamic Republic of Iran (1990-2006)
Philippines (1990-2003)
Hong Kong, China (1990-2010)
Russian Federation (1990-2010)
Solomon Islands (1990-2001)
Democratic People’s Republic of Korea (1990-2000)
Fiji (1990-2001)
Turkmenistan (1990-2001)
Uzbekistan (1990-2001)
Singapore (1990-2010)
Azerbaijan (1990-2004)
Turkey (1990-2010)
Mongolia (1990-2010)
Macao, China (1999-2010)
Papua New Guinea (1990-2001)
Vanuatu (1993-2001)
Myanmar (1990-2005)
Cambodia (1990-2010)
Japan (1990-2006)
Sri Lanka (1990-2007)
New Zealand (1990-2010)
Australia (1990-2010)
0%
1%
2%
3%
4%
5%
Average annual rate of growth in road length
Source: ESCAP Statistics database 7 September 2011.
6%
7%
36
Review of Developments in Transport in Asia and the Pacific 2011
In fact, during this period many Asian countries have doubled their road network length52, which is
an enormous achievement by historical standards. Figure III-1 shows the annual average growth in road
length for selected ESCAP countries between 1990 and the latest year for which data is available for each
country. In this period, the highest rate of road length growth was in China (more than six per cent per
year). The growth of road lengths in some other developing countries such as Afghanistan, Bangladesh,
India, Indonesia, Kyrgyzstan, Lao People’s Democratic Republic, Malaysia, and Pakistan, was also solid,
ranging from about 2.2 to 5.4 per cent year. Table III-1 shows the total road network length in selected
ESCAP countries. India and China have the largest road networks in the ESCAP region, each comprising
about 4 million kilometres of road. There are now 12 Asian countries with national road length larger than
100,000 kilometres.
Table III-1 also lists road density: that is, road length per land area. Road density is a function of
both the maturity of an economy’s road network and the geography of a country. Rich countries with a high
population density, such as Japan, Singapore, and Macao, China have the highest road density. But poorer
countries with high population density can also have quite high road density, as illustrated by the case of
Bangladesh and Sri Lanka. Order of magnitude differences in road density between countries with
otherwise similar population density show the high potential for increases in road length in many ESCAP
developing countries, including India and China. Table III-1 also shows that the sparsely populated
developed countries of Australia and New Zealand have the highest road network length per capita in the
ESCAP region, whereas Hong Kong, China; Macao, China; and Myanmar have the lowest road length per
capita, albeit for different reasons.
Table III-1. Road lengths and road densities, various countries
Country
Road Length
(km)
Road length
(km) per capita
(1,000 people)
Road length (km)
per square km
of land area
Afghanistan (2006)
42,150
1.34
0.06
Armenia (2009)
10,818
3.50
0.36
Australia (2010)
812,972
36.51
0.11
Azerbaijan (2004)
59,141
6.44
0.68
Bangladesh (2010)
311,065
2.09
2.16
Cambodia (2010)
39,600
2.80
0.22
4,008,200
2.99
0.42
31,200
1.28
0.26
3,440
4.00
0.19
China (2010)
Democratic People’s Republic of Korea (2000)
Fiji (2001)
Georgia (2006)
Hong Kong, China (2010)
India (2008)
Indonesia (2006)
Islamic Republic of Iran (2006)
Japan (2006)
Kazakhstan (2006)
Kiribati (2001)
20,329
4.67
0.29
1,987
0.28
1.81
4,110,000
3.36
1.25
506,444
2.11
0.27
172,927
2.34
0.10
1,196,999
9.46
3.17
91,563
5.71
0.03
670
6.70
0.82
Kyrgyzstan (2007)
34,000
6.37
0.17
Lao People’s Democratic Republic (2010)
39,585
6.38
0.17
362
0.67
12.92
90,127
3.17
0.27
Macao, China (2010)
Malaysia (2006)
Micronesia (Federated State of) (2001)
240
2.16
0.34
Mongolia (2010)
49,250
17.87
0.04
Myanmar (2005)
27,000
0.56
0.04
New Zealand (2010)
94,016
21.52
0.34
52
UNESCAP, 2007, Statistical Yearbook.
III. Roads and Highways
37
Table III-1. (continued)
Country
Pakistan (2010)
Papua New Guinea (2001)
Road Length
(km)
Road length
(km) per capita
(1,000 people)
Road length (km)
per square km
of land area
260,420
1.50
0.33
0.04
19,600
2.86
Philippines (2003)
205,497
2.32
0.72
Republic of Korea (2010)
105,565
2.19
1.06
Russian Federation (2010)
Singapore (2010)
Solomon Islands (2001)
1,145,000
8.01
0.06
3,377
0.66
4.78
1,391
2.59
0.05
Sri Lanka (2007)
97,286
4.66
1.48
Tajikistan (2001)
31,800
4.62
0.22
680
6.54
0.91
426,951
5.87
0.55
Tonga (2001)
Turkey (2010)
Turkmenistan (2001)
24,000
4.76
0.05
Uzbekistan (2001)
81,600
2.97
0.18
1,070
4.46
0.09
Vanuatu (2001)
Source: Based on data compiled from different sources including ESCAP Statistical database (accessed on 7 September 2011).
B. Road Vehicle Fleets and Motorization Trends
1. Road vehicle fleets and vehicle density
Despite inconsistencies in data measurement and definition, motorization rates and vehicle density
are often used as indicators of a country’s development. Figure III-2 compares the average annual growth in
the number of road vehicles in selected ESCAP countries over the period 1993-2008. For the whole ESCAP
region, the number of vehicles grew at an average 5 per cent per year, from 128 million in 1993 to roughly
263.5 million in 2008. These estimates include both passenger and commercial registered vehicles, but do
not include two-wheelers. The most outstanding growth in road vehicle numbers has occurred in China and
Indonesia, with annual average rates of 13 and 11.4 per cent respectively. In addition, at 49 million, the
Chinese vehicle fleet was the second largest in the region (after Japan), while Indonesia had the fourth
largest at 17 million. The Russian Federation has the third largest vehicle fleet with 35 million vehicles.
At the other extreme, road vehicle fleets in Nepal, Japan, and Papua New Guinea grew less than
two per cent per year from 1993 to 2008. While the annual rate of growth of road vehicles in Japan was
very low, it has the highest number of motor vehicles (75.5 million) in the region. By contrast, Nepal and
Papua New Guinea both have very low numbers of motor vehicles, with 139,000 in Nepal and about 56,000
in Papua New Guinea. Australia, Singapore, New Zealand, and Fiji had growth rates between two and four
per cent, below the regional average. Among these countries, however, the total number of vehicles in
Australia was the 7th highest in the region. With 14 million road vehicles in 2008, this was only 3 million
lower than the road vehicle fleet size of the far more populous India.
Figure III-3 illustrates the wide range of vehicle densities in the ESCAP region. Vehicle density is
the number of road vehicles in a country divided by the length of roads. The variable length of roads is
simply the route length and not the lane length, as the latter is not available for most countries. Thus,
vehicle density provides only limited information on possible under-provision of road infrastructure or the
potential for traffic jams.
The average vehicle density in the ESCAP region is roughly 73 road vehicles per road kilometre,
comparable to that of Japan. Among the selected economies for which data is available, five stand out with
very high vehicle densities of between 240 and 342 motor vehicles per kilometre of road. Not surprisingly
in three of these, Hong Kong, China; Singapore; and Brunei Darussalam the road networks are relatively
38
Review of Developments in Transport in Asia and the Pacific 2011
Figure III-2. Average annual growth in the number of road vehicles, 1993-2008
China (1993-2008)
Indonesia (1993-2008)
Sri Lanka (1993-2008)
Turkey (1993-2008)
Republic of Korea (1993-2008)
Russian Federation (1993-2007)
India (1993-2006)
Bangladesh (1993-2008)
Kazakhstan (1993-2008)
Pakistan (1993-2007)
Azerbaijan (1993-2007)
Philippines (1993-2007)
Brunei Darussalam (1993-2007)
Myanmar (1993-2008)
Fiji (1993-2008)
New Zealand (1993-2008)
Singapore (1993-2008)
Australia (1993-2008)
Papua New Guinea (1993-2007)
Hong Kong, China (1993-2008)
Japan (1993-2008)
Nepal (1993-2007)
0%
2%
4%
6%
8%
10%
12%
14%
Average annual increase in number of reigstered motor vehicles (excluding two-wheelers)
Source: ESCAP Statistical database (accessed on 7 September 2011).
small (between 1,500 and 2,800 kilometres) and passenger vehicle numbers per head of population are very
high by comparison with those in other member countries. As another point of comparison, vehicle density
in Fiji is 48.12 in a road network that is about 3,000 kilometres, comparable to the size of the road networks
in Hong Kong, China; Singapore; and Brunei Darussalam. By contrast with these countries, vehicle
densities in Bangladesh, Papua New Guinea, Cambodia, and India range from 1.68 to 8.5 motor vehicles
per kilometre of road.
2. Level of motorization
Figure III-4 illustrates the level of motorization in selected ESCAP economies, measured as the
number of private cars per 1,000 people in a country. At lower levels of development, motorization is
a reasonable proxy for GDP per capita, though such correlation would be best if the total number of
passenger vehicles (private, public and commercial) with at least four wheels was used in the definition of
motorization. As such, it may not be a good indicator of personal mobility. This is particularly the case for
the developing economies of South, South-East and East Asia where the share of two and three-wheelers in
the national vehicle fleet is often more than 60 per cent, in contrast to other world regions and the
developed countries.
III. Roads and Highways
39
Figure III-3. Vehicle density in selected ESCAP economies, 2007-2008
Hong Kong, China (2008)
341.77
Republic of Korea (2008)
292.60
Brunei Darussalam (2007)
260.07
Singapore (2008)
240.42
Malaysia (2008)
164.30
Japan (2008)
67.77
Indonesia (2008)
59.92
Fiji (2008)
48.12
China (2008)
41.64
Russian Federation (2007)
39.50
New Zealand (2008)
33.16
Turkey (2008)
27.42
Nepal (2007)
20.29
Kazakhstan (2008)
19.17
Philippines (2007)
17.90
Australia (2008)
17.68
Azerbaijan (2007)
14.50
Myanmar (2008)
13.76
Sri Lanka (2008)
13.04
Pakistan (2007)
11.02
India (2006)
8.48
Cambodia (2005)
7.62
Papua New Guinea (2007)
3.05
Bangladesh (2008)
1.68
0
50
100
150
200
250
300
350
400
Motor vehicles per km of road
Source: ESCAP Statistical database (accessed on 7 September 2011).
The overall motorization level of the ESCAP region is estimated at 119 private cars per 1,000
persons, which is slightly higher than motorization in Singapore and Fiji (Figure III-4). Three countries in
the region have motorization levels greater than 500 private cars per 1,000 persons: Australia, New Zealand
and Brunei Darussalam, with Brunei Darussalam having the region’s highest motorization level at 649
private cars per 1,000 persons. Motorization levels are also comparatively high in Japan and Malaysia at
319 and 298 private cars per 1,000 persons respectively.
A number of very populous ESCAP economies still have motorization levels that are one to two
orders of magnitude lower than that in developed countries. For example, motorization in Pakistan, India,
China, and Indonesia was still as low as 9, 10, 27, and 43 private cars per 1,000 persons, respectively. In
other words, current numbers of road vehicles are only a fraction of what they will be in two to three
decades, as these populous and rapidly growing economies are expected to continue to experience rapid
rates of motorization.
40
Review of Developments in Transport in Asia and the Pacific 2011
Figure III-4. Motorization rates in selected economies of the ESCAP region, 2005-2008
Brunei Darussalam (2007)
New Zealand (2008)
Australia (2008)
Japan (2008)
Malaysia (2008)
Republic of Korea (2008)
Russian Federation (2007)
Kazakhstan (2008)
Macao SAR, China (2008)
Fiji (2008)
Singapore (2008)
Kiribati (2007)
Armenia (2007)
Georgia (2007)
Turkey (2008)
Turkmenistan (2008)
Azerbaijan (2007)
Hong Kong, China (2008)
Thailand (2003)
Mongolia (2008)
Samoa (2005)
Kyrgyzstan (2007)
Indonesia (2008)
Bhutan (2008)
Tajikistan (2007)
China (2008)
Sri Lanka (2008)
Afghanistan (2008)
Cambodia (2005)
Micronesia (Federated State of) (2007)
Viet Nam (2007)
Philippines (2007)
Maldives (2008)
India (2006)
Pakistan (2007)
Papua New Guinea (2007)
Myanmar (2008)
Nepal (2007)
Lao People’s Democratic Republic (2007)
Bangladesh (2008)
649
616
551
319
298
257
206
164
144
115
114
99
96
95
92
80
72
55
54
48
45
44
43
38
29
27
19
19
18
16
13
11
11
10
9
6
5
3
2
1
0
100
200
300
400
500
Passenger car vehicles per 000 population
600
700
Source: ESCAP Statistical database (accessed on 7 September 2011).
C. Road Freight
Data on road freight activity in the ESCAP region is extremely limited. Based on available data,
Datamonitor has compiled the total road freight task for China; Taiwan, Province of China; India; Republic
of Korea; Singapore; Australia and Japan. It estimates that the total road freight for these countries in 2010
was 3.4 billion freight tonne kilometres.53 Figure III-5 shows their estimated growth of the road freight
sector over the last five years using a compound annual growth rate has been 6.3 per cent over the four
years 2006-2010, with an expected growth of 7.5 per cent through the forecast period.
Figure III-6 shows the road freight task in those countries of the region for which this data is
available. The task in China, which is in excess of 1 trillion freight tonne kilometres, is clearly the largest in
the region. There is no data in the World Development Indicators database for India, but the report on which
Figure III-5 is based indicates that, in value terms, the revenue generated by India’s road freight industry is
approximately 60 per cent of the revenue generated by the road freight industry of China.54 Using this ratio
53
54
Datamonitor, Road Freight in Asia-Pacific, March 2011.
ibid.
III. Roads and Highways
41
Figure III-5. Actual and forecast growth of road freight volumes in selected countries
of the region, 2006-2015
6,000
Actual
Estimated
Forecast
billion freight tonne kilometres
5,000
4,000
3,000
2,000
1,000
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Datamonitor Road Freight in Asia-Pacific, March 2011.
Figure III-6. Road freight task in selected ESCAP countries
Source: World Development Indicators Database, accessed 21 September 2011.
Notes: The WDI database does have a 2008 entry for China, but the value is anomalous and inconsistent with information available from other
sources. The 2007 value has therefore been used in the figure.
as an estimator of the relative scale of the transport task suggests that the road freight in India would be in
the order of 600 to 700 billion tonne-kilometres, making India the second largest road freight market in the
region, followed by Japan, the Russian Federation, Australia, Turkey and Pakistan.
Table III-2 shows the rate of growth of the road freight task in selected ESCAP countries for which
the data required to make this estimation is available. The table shows that road freight in Mongolia grew
exceptionally quickly over the period 2003-2008, averaging over 26 per cent per annum. For similar
periods, in Viet Nam, Armenia and China the road freight task grew at a rate in excess of 10 per cent per
42
Review of Developments in Transport in Asia and the Pacific 2011
Table III-2. Growth of road freight task in selected
ESCAP countries (per cent per annum)
Country (period)
Australia (2003-2008)
China (2002-2007)
Kazakhstan (2003-2008)
Annual average
growth rate
4.4
10.9
9.6
Mongolia (2003-2008)
26.4
Viet Nam (2003-2007)
14.8
Armenia (2003-2008)
17.7
Azerbaijan (2003-2008)
9.8
Georgia (2001-2006)
2.4
Kyrgyzstan (2003-2007)
2.5
Lao People’s Democratic Republic (2003-2008)
3.4
Turkey (2003-2008)
3.6
Source: World Development Indicators database, accessed 21 September 2011.
annum, while growth Kazakhstan and Azerbaijan were only slightly lower than 10 per cent. Growth rates in
the other countries for which data is available were more modest, ranging from 2.4 per cent per annum in
Georgia to 4.4 per cent per annum in Australia.
D. Asian Highway Network Development
The Asian Highway spans over 142,000 km of roads and is comprised of 55 routes (see Figure III-7.
Map of the Asian Highway Network). The extent of the Asian Highway network varies with the
geographical location and size of the country. As can be seen from Figure III-7, China accounts for the
longest national portion of the Asian Highway Network of any ESCAP country, with 26,707 kilometres.
Four other countries have more than 10,000 kilometres of Asian Highway network: the Russian Federation
(16,848 km); Kazakhstan (12,958 km); India (11,810 km); and the Islamic Republic of Iran (11,134 km). At
the other end of the scale, there are two participating countries with less than 200 kilometres of Asian
Highway network: Singapore (19 km) and Bhutan (165 km).
The average quality of the network also differs significantly between countries. Some ESCAP
members have developed their portions of the Asian Highway to the minimum standard (Class III) specified
in the Intergovernmental Agreement on the Asian Highway Network. For example, all of Japan’s AH
network is of Primary Class; all of Singapore’s and 79 per cent of the AH network roads in the Republic of
Korea are either Primary Class or Class I. In the case of China, 63 per cent of the AH network consists of
either Primary Class or Class I roads, while these two categories account for 60 per cent of the AH network
roads in Malaysia.
However, road network quality is still a substantial challenge for a number of countries. For
example, at least 40 per cent of the AH network in Afghanistan, Bhutan, Democratic People’s Republic of
Korea, Mongolia, Myanmar and Tajikistan do not meet Class III standards, while in Kyrgyzstan, Pakistan,
and Sri Lanka, about 20 per cent of the AH network does not meet Class III standards.
The change in status of the quality of the network as a whole is given in Figure III-9
(for classification, please refer to Box 1). Based on data received from 20 countries, between 2004 and
2008 improvements to the quality of the network were achieved, with an additional 10,000 kilometres of
the Highway being upgraded to higher standards and around 1,000 kilometres upgraded to meet minimum
standards.55 More specifically, as shown in Figure III-8, while only 9,300 of the 142,000 kilometres or
7 per cent of the Highway network met primary road standards in 2004, by 2008, these standards applied to
about 20,700 kilometres or 15 per cent of the network. Similarly, while only 8,100 kilometres or 6 per cent
55
UNESCAP, 2011 Statistical Yearbook for Asia and the Pacific, page 140.
Poti
AH5
AH84
Kazakh
Eraskh
AH
82
Yerevan
ARMENIA
AH
1
Julfa
Aghband
Baku
Bekdash
63
Beyneu
AH
AH5
Qom
Bushehr
Bandar Emam
Anar
Yazd
Ferry to Turkmenistan
Ferry to Kazakhstan
ISLAMIC REPUBLIC
OF IRAN
AH1
TehranShabzevar
Qazvin
Serdar
63
AH75
AH
1
Mashhad
Chabahar
Bandar Abbas
AH2
AH77
Mazar-i-Sharif
AH76
Termez
62
AH
71
Dilaram
Zahedan AH2
Dashtak
Yi'erkeshitan
Polekhumri
AH66
AH
2
AH
Semipalatinsk
AH60
Ucharal
Kashi
Turgat
Attari
Jammu
and
Kashmir
Honqiraf
AH5
AH5
Alashankou
Taskesken
Bakhty
Baketu
Agra
Dhule
47
45
AH
AH 4
Male
Zhangmu
AH42
Takeshkan
Uliastay
6
BHUTAN
Lhasa
Indian
Line
Golmud
AH46
Barhi
AH
5
Visakhapatnam
Chennai
Vijayawada
3
AH
3
5
AH16
AH
14
Hekou
Zabaykalsk
Beijing
Sumber
Xinyang
AH1
AH16
Tak
Nakhon Sawan
Bangkok
Bang Pa-in
Medan
AH16
A
Phnom
Penh H11
1
CAMBODIA
AH
Khon Kaen
Kabin Buri
Hoi An
AH1
Hat Yai
Jambi
25
Jakarta
Bakauheni
Cikampek
Merak
Bandung
Semarang
Palembang
AH
3
Laoag
AH2
AH7
AH75
Denpasar
AH
2
Surabaya
Kalimantan
INDONESIA
Borneo
Bandar Seri
Begawan
AH6
Quanhe
AH32
Vladivostok & Nahodka
Sonbong
Suifenhe
Ussuriysk
A
1
AH
Payagyi
Naypyitaw
Yangon
4
Ruili
Tong
Mongla
3
AH
1
Bang Pa-in
Nakhon
Sawan
Mae Sot
Tak
Udonthani
AH16
AH19
1
Chumphon
11
Sino
11
Da Nang
Hoi An
Port Moresby
Ho Chi Minh
Vung Tau
Bien Hoa
Kratie
Bavet
Moc Bai
AH1
PAPUA
NEW GUINEA
Sihanoukville
AH
1
Stung Treng
AH
Lao Bao
Dong Ha
Ban Lao
Densavanh
Pakse
Veunkham
Trapeangkreal
Phnom Penh
1
Cambodia
AH
AH16
Thakhek
Savannakhet
Khon Kaen
Poipet
Vinh
AH1
Nanning
Youyiguan
Hai Phong
Viet Nam
AH15
Mukdahan
AH16
AH15
A
AH14
Hoa Binh
Hanoi
H1
Huu Nghi
Keoneua Cau Treo
Nakhon
Phanom
Kabin Buri
Aranyaprathet
AH
Hin Kong
AH12
Nakhon
Ratchasima
Laem
Chabang
Bangkok
Myawadi
Thaton
Nong Khai
Vientiane
Lao P.D.R.
AH
Lao Cai
Hekou
AH
13
Qudomxai
Mohan
Boten
Phitsanulok
Kon
Thailand
Uttaradit
2
3
Kunming
Houayxay
Chang Khong
Muang Ngeon
AH
Nateuy
Chiang Rai Huai
AH
AH
AH3 Jinghong
Daluo
AH14
Tokyo
JAPAN
Tachilek
Mae Sai
AH2 Kyaing
1
AH
Meiktila
Mandalay
TIMOR-LESTE
Dili
General Santos
Davao
Muse
Myanmar
Fukuoka
Busan
AH1
REPUBLIC OF
KOREA
1
Matnog
Allen
Tacloban
Cebu
Lioan
Zamboanga
H6
Khabarovsk
DEMOCRATIC
PEOPLE'S REPUBLIC OF
OF KOREA
AH6
AH
Shanghai
33
Sungao
Cagayan de Oro
Manila
AH
Seoul
Lianyungang
H3
0
Tongjiang
Harbin
Dandong
Pyongyang
PHILIPPINES
MALAYSIA
INDONESIA
SINGAPORE
Singapore
Serembang
AH
Johor Bahru
2
Kuala
Lumpur
MALAYSIA
Changchun
BRUNEI DARUSSALAM
Moc Bai
Sihanoukville
Vung Tau
Ho Chi Minh
Dumai
Banda Aceh
1
9
AH1
AH
THAILAND
Shenzhen
Qiqihar
AH32
Hangzhou
Nanchang
Changsha
Nanjing
AH5
Zhengzhou AH34
Guangzhou
Xianglan
AH5
AH34
1
6
Belogorsk
Heihe Blagoveshchensk
A
Shenyang
AH
Dalian
Tanggu
AH
Arshan
Manzhouli
AH3
6
AH30
Shijiazhuang
Youyiguan
AH14
AH
Eranhot
Nanning
AH3
CHINA
Xi'an
AH
AH32
Ondorhaan
3
Zamin-uud
Kunming
Lao Cai
3
AH
Sayanshand
Lanzhou
AH
Chita
LAO PEOPLE'S Hanoi
DEMOCRATIC
AH15
REPUBLICVientianeVinh
VIET NAM
AH1
Pitsanulok AH15 Seno
Dong Ha
AH2
AH
AH
2011
Ruili
Jinghong
Mongla
4
AH1
Payagyi
Yangon
MYANMAR
UNITED NATIONS
Matara
SRI LANKA
Meiktila
Mandalay
AH1
AH6
Ulaanbaatar
Nalayh
AH14
Xining
Chinese
Line
Tamu Muse
Imphal
Naypyitaw
Kharagpur
Teknaf
4
AH
Dhaka
1
BANGLADESH
Katchpur
1
Kolkata AH1
AH42
MONGOLIA
AH32
Kyahta
Ulan-Ude
Altanbulag
Irkutsk
18
MALDIVES
1
Hovd
Yarantai
Tulufan
Talaimannar
Trincomalee
Colombo
Dhanushkodi
Madurai
Bangalore
Krishnagiri
AH
AH
Nagpur
INDIA
Hyderabad
Thane
AH46
Gwalior
AH2
NEPAL
4
Urumqi
Takeshkan
AH
Tashanta
Ulaanbaishint
AH
Kathmandu
Narayanghat
Thimphu
AH2
Pathlaiya
AH48
Birganj
Siliguri
Dispur
Raxual
Phulbari Jaigaon
AH
Kanpur
1
AH2
Indian
Line
Chinese
Line
Sri Jayawardhanapura-Kotte
Mumbai
New Delhi
Lahore
Hyderabad
Karachi
Rohri
PAKISTAN
51
Islamabad1
Kabul AH1
AH4
TAJIKISTAN
Quetta
Kandahar
Barnaul
Veseloyarskyj
KYRGYZSTAN
AH61
Bishkek
AH65
AH65
AH7
Dushanbe
AH
AH5
0
60
AH
Novosibirsk
Jinghe Kuitun
AH5 Horgos
AH61 AH5
Merke
Almaty
AH4
AH6
Karaganda
AH7
Tashkent
Osh
AFGHANISTAN
1
AH1
Herat
63
AH
Bukhara
5
Alat AH
Farap
Tejen Mary
Ashgabat
Kerman
ISLAMIC Esfahan
REPUBLIC OF IRAN
Alat
Astara
Saveh
AH2
1
Salafchegan
AH
61
AH
Kyzylorda
7
AH64
Burubaital
AH67
Cherlak
AH6
Shiderty AH64 Pavlodar
Pnirtyshskoe
Zhezkazgan
UZBEKISTAN Shymkent
AH
Aralsk
64
AH
Astana AH
AH7
AH6
AH
The designations employed and the presentation of material on this map
do not imply the expressing of any opinion whatsoever on the part of the
Secretariat of the United Nations concerning the legal status of any country,
territory, city or area or of its authorities, or concerning the delimitation of its
frontiers or boundaries.
Dotted line represents approximately the Line of Control in Jammu and
Kashmir agreed upon by India and Pakistan. The final status of Jammu and
Kashmir has not been agreed upon by the parties.
Tabriz
1
Bilasuvar
AH8
AH
81
AH
AH5
Sumgayit
Baku
Gazi Mammed
AH5
Goradiz
Nakhchivan
1
Samur
Khosravi
AZERBAIJAN
Ganja
AH5
Aktau
Kotyaevka
Atyrau
Arkalyk
KAZAKHSTAN
AH7
Kaerak
Turkemenbashi
ARMENIA
Yerevan AZERBAIJAN TURKMENISTAN
1
Kazmalyarskiy
8
Agarak
Jolfa
Nour Douz Mengri
AH
81
Eyvoghli
AH84
Toprakkale
AH84
Tbilisi
Astrakhan
0
AH7
Aktobe
Troitsk
Isilkul
Petropavlovsk Omsk
43
AH
AH11
Asian Highway Route
Potential Asian Highway Route
Ferry Link
Capital City
AH84
AH
Bazargan
AH
86
Refahiye
AH85
Mahachkala
Uzungala
Paravakar
Volgograd
GEORGIA
AH5
AH
82
AH70
Ozinki Kurlin
Ural'sk
Borysoglebsk Kamenka
Zhaisan AH61
AH61
Samara
AH6
Chelyabinsk
AH43
Bitlis
81
AH6
Tambov
AH6
Yekaterinburg
11
TURKEY
AH
Red Bridge
Tbilisi
Mtskheta
8
Poti AH5
Batumi
AH5
AH82
Leselidze
Donetsk
Iskenderun
Hasavjurt
Gumri Vanadjon
81
Sadarak
Dogubayazit Gurbulak
Goris
AH1
5
Sadakhlo
Bagratashen
Ashtarak
Akurik
Vale
AH
Larsi
Khashuri
Akhaltsikhe
82
AH
Horasan
Batumi
Senaki
Erzurum
Askale
Icel
AH
Voronezh
AH61
TURKEY
Ankara
AH
AH1
Legend
AH1
AH5
GEORGIA
Sukhumi
AH82
AH86
Trabzon
AH87
Izmir
AH1
RUSSIAN FEDERATION
Sarpi
Sarp
AH
82
Ferry to Bulgaria,
Romania, Ukraine
Leselidze
Kapikule
AH1
Krupets
Krasnoe
Istanbul Gerede AH5 Merzifon
UKRAINE
ROMANIA
BULGARIA
R.F
Moscow
AH
70
2
AH6
62
AH
AH6
RUSSIAN FEDERATION
AH
5
AH8
1
AH
AH
78
5
AH
67
AH
AH7
64
AH
St. Petersburg
AH
47
3
AH
ASIAN HIGHWAY ROUTE MAP
AH47
AH31
Vyborg
83
AH5
82
AH
AH
45
AH
AH
31
Torpynovka
AH81
8
AH1
44
AH
A
AH8
AH12
AH72
AH43
H2
AH2
AH70
1
AH
26
AH
AH
1
AH2
81
75
AH
1
AH
AH70
AH7
AH4
AH
AH8
78
AH
AH2
AH43
AH19
1
1
AH
AH
A
H3
1
8
AH77
AH
26
AH6
8
AH
62
7
1
8
AH70
AH
AH
AH43
AH
AH
3
AH7
AH1
AH41
AH11
AH
A
AH6
AH7
1
42
AH1
1
AH63
61
AH
AH5
A
AH
AH2 AH41
AH
AH
2
7
H4
AH
AH14
A
H1
11
H2
6
AH
AH
68
AH1
1
13
AH63
60
AH
AH
AH
AH6
67
AH
1
1
AH
2
60
4
5
AH
1
AH
AH
AH
AH
1
AH12
7
AH4
AH3
AH
AH1
AH
AH12
AH
AH
AH31
6
AH1
AH12
30
AH
AH
AH19
AH
AH30
14
AH
AH1
Figure III-7. Map of the Asian Highway Network (2011)
III. Roads and Highways
43
25
44
Review of Developments in Transport in Asia and the Pacific 2011
Figure III-8. Asian Highway network by country, 2010
Source: ESCAP Statistical database (accessed on 12 September 2011).
of the network met Class I standards in 2004, by 2008 about 24,000 kilometres or 17 per cent reached these
standards. The biggest improvement, however, was in the number of kilometres of the network that were
upgraded from Class III to Class II. In 2008, 56,490 kilometres representing 40 per cent of the network met
Class II standards, up from 34,600 kilometres or 25 per cent of the network four years earlier.
Another reflection of these improvements is the reduction in the length of network that still only
meets or falls below Class III standards. Whereas 49,700 kilometres or 35 per cent of the network was
Class III roads and another 16 per cent fell below this category in 2004, these figures had fallen to 20 per
cent and 8 per cent respectively by 2008. The number of kilometres of roads that are categorised as ‘other’
also fell between 2004 and 2008 from just over 17,000 kilometres to just under 1,200 kilometres.
III. Roads and Highways
45
Figure III-9. Quality improvement of Asian Highway, 2004-2008
100%
Other
Lower than Class III
90%
Class III
Class II
Class I
Primary
Share of total network
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004
2006
2008
Source: Based on data from ESCAP Asian Highway database (accessed on 12 September 2011).
E. Selected Investment Projects in the Road Sector
Table III-3 summarizes selected road and highway investment projects in the ESCAP region. It
includes projects in progress or that are planned for commencement within the next five years. The list is
not comprehensive, but rather indicative of major road construction projects in the region. In making
a selection, priority has been given to Asian Highway road developments.
Table III-3. Selected road and highway investment projects in the ESCAP region
Country
Afghanistan
Selected road and highway investment projects
Ring Road project
Overview: The Ring Road project is Afghanistan’s most important highway project,
designed to rehabilitate and complete the ring road joining Kabul, Kandahar, Herat and
Mazar-i-Sharif.
Funding: The total cost of the ring road is estimated at US$ 2.5 billion. The project
was funded by the international community, with the cost of this project was funded by
different donors. According to Ministry of Public Work, the percentage paid by
USAID was 30 per cent; Asian Development Bank 24 per cent, World Bank 12 per
cent, Pakistan 6 per cent and Islamic Republic of Iran 6 per cent. In addition the
Japanese Government has contributed US$ 23.4 million to construct 31 km of the Ring
road near Mazar-e-Sharif as well as extending the existing road from Ferdousi Park.
Status: The project was expected to be completed in early 2009, but due to insecurity
the expected completion has been delayed. In June 2009, the Afghan government
reported that the project was 90 per cent complete. In April 2011, the ring road was
reported to be nearly completed.
Completion date: December 2011.
Status
In Progress
46
Review of Developments in Transport in Asia and the Pacific 2011
Table III-3. (continued)
Country
Afghanistan
Selected road and highway investment projects
Kunduz-Khulm Highway reconstruction
Status
In Progress
Overview: The project includes reconstruction and upgrading of the first 27.5 km long
section at the Khulm end of the Kunduz-Khulm Highway in north Afghanistan to
provide a direct connection between Mazar and Kunduz.
Funding: The project is being funded by KfW Entwicklungsbank at a cost of US$ 14.3
million.
Status: KfW called for tenders for project management at the end of 2010.
Completion date: construction to be completed in February 2015.
Australia
Great Eastern Highway Roe Highway Interchange
In Progress
Overview: This project is designed to improve traffic flow, reduce congestion and
create grade separation for heavy vehicles and general traffic through the busy
intersection of the Great Eastern Highway and Roe Highway in Midland, Western
Australia. One of Western Australia’s top 10 metropolitan road network black spot
locations, the interchange has predicted traffic counts of 90,000 vehicles a day by 2021.
The project will involve design and construction of four new bridges, three underpasses
and associated pathways, and modifications to two existing bridges.
Funding: In principle agreement for 50/50 sharing of AU$ 74 m funding by Australian
Federal Government and Western Australian Government.
Completion date: September 2012.
Azerbaijan
Upgrading Yevlax-Ganja Road east-west corridor and related local roads
Overview: The Yevlax-Ganja road is part of the east-west road corridor between Baku
and the Georgian border, which is one of Azerbaijan’s main routes for external trade
and forms part of the Asian highway network. The project aims to improve the
efficiency of transport on the project sections of the east-west road corridor by
rebuilding 127 km of the two-lane paved road on the Yevlakh-Ganja and the QazakhGeorgian border sections of the road, improving 65 km of local roads connecting to
Yevlax-Ganja Road. It also includes institutional strengthening for the road sector
reform, and cross-border facilitation at the border with Georgia at Red Bridge.
Nearly
Completed
Funding: US$ 3 m from the Asian Development Bank and US$ 49 m from ordinary
capital resources.
Completion date: delay on target date of August 2009; Yevlax-Ganja Road upgrade
completed in early 2010, at which time local road upgrade tender was on hold.
Bangladesh
Sub-Regional Transport Project Preparatory Facility
Overview: Involves the upgrade or construction of 2,000 km of land transport network
to enhance cross-border trade and establish greater connectivity across South Asia, and
in particular between Bangladesh and India and Myanmar as well as China. The facility
includes 14 road projects as well as 8 railway projects. The road projects include:
Chittagong-Cox’s Bazar-Teknaf road, 374-km Petrapole (India)-Benapole-JessoreMagura-Daulatdia-Paturia-Dharkar-Akhaura-Agartala (India), 664-km Phulbari
(India)-Banglabandha-Hatikumrul-Mongla, 286-km Dawki/Tamabil-Sylhet-Dhaka,
215-km Akhaura-Dharkar-Comilla-Chittagong, 138-km Burimari-Rangpur, 60-km
Dhaka-Mawa-Bhanga and 219-km Sonamasjid-Rajshahi-Jamuna Bridge roads. In
addition a number of national highways and other roads will be upgraded to four lanes.
These include 222-km Doulatdia-Magura-Jhenaidah-Jessore-Khulna National
Highway, 157-km Hatikamrul-Rangpur National Highway, 48-km Khulna-Mongla
road with link to Dhigraj to Mongla Ferry Ghat, 286-km Dhaka (Katchpur)-BhairabJagadishpur-Shaistaganj-Sylhet-Tamabil, 138-km Rangpur-Teesta-Burimari
(Lalmonirhat) and 204-km Sonamasjid-Rajshahi-Hatikamrul.
Funding: The estimated cost of the projects is US$ 6.45 billion.
Completion date: 300 kms of the network will be completed by 2012, and the rest by
2013.
Planned/
In Progress
III. Roads and Highways
47
Table III-3. (continued)
Country
China
Selected road and highway investment projects
Second Heilongjiang Road Network Development Project
Status
In Progress
Overview: Heilongjiang province needs more efficient transportation to support
economic growth, foster domestic and international trade, facilitate interregional
integration, and reduce poverty. The project will complete an important missing link
between the north-east and north-west of Heilongjiang province, as well as improve the
systems used for road asset maintenance including planning and budgeting, and
execution of road maintenance works, including the introduction of more effective
methods of maintenance contracting.
Funding: US$ 200.00 million.
Status: Loan contract signed 20 April 2010; by September 2011, 90 per cent of funds
had been committed as contracts and disbursements and 40 per cent of the project
had been completed.
Completion date: 30 June 2015.
Georgia
First East-West Highway Improvement Project
In Progress
Overview: The First East-West Highway Improvement Project involves upgrading
90 kilometres of the local road network covering 10 roads.56 The project aims to
contribute to the gradual reduction of road transport costs and improve access, ease of
transit, and safety along the central part of Georgia’s East-West corridor, by upgrading
a segment of the East-West Highway from Tbilisi to Rikoti, including construction of
the Rikoti Bypass Road and the rehabilitation of the Rikoti Tunnel.57 As well as
upgrading the roads from two to four lanes the project aims to strengthen the capacity
of the government, Roads Department and the local road construction industry to plan
and better manage the road network.
Funding: Funded by the Government of Georgia and a US$ 48 million loan from the
World Bank, as well as funding from other agencies.
Status: The World Bank loan was approved in November 2009. The Rikoti Bypass
Road was completed in April 2010. In August 2011, the Georgian Government called
for tenders for consulting services to develop detailed designs of the upgraded roads.
The tunnel is targeted for completion in December 2011.
India
Chhattisgarh State Road Development Project
Overview: The primary task is the improvement of 1,700 km of state roads to provide
improved connectivity and access to development opportunities and social services,
including health and education facilities. The work is being carried out in two phases.
Phase I includes rehabilitation of 810 km of roads (Rajnandgaon-Mohla-Maharashtra
Border, Rajnandgaon-Kukamera-Kaeardha, Bilaspur-Mungeli-Pondi, AbbikapurRamanujganj, Gariyaband-Bardula, Kumhari-Berla-Bemetara-Mungeli, KapasaraHatidad, rajkheda-Dhanwar, Ramanujganj-Wadrafnagar and BhanupratappurNarayanpur Kondagaon), Phase II rehabilitation of 439 km of roads (Hasaud-SarsiwaSaraipali, Nandghat-Mungeli, Balodabazar-Hathband-Simga, Amleshwar-Funda,
Abhanpur-Rajim-Gariyaband, Rajim-Mahasamund, Basna-Bilaigarh, Dhamtari-Nagri,
Dhamtari-Gunderdehi).
Funding: The project is part financed through the ADB (US$ 180 million) and is
estimated to cost US$ 285 million.
Status: A total of 21 civil works contracts and three consulting contracts have been
awarded. Phase I of the project is 83 per cent complete, Phase II 53 per cent.
Completion date: The project was due for completion in July 2011; in September 2011,
99 per cent of contract funding and 87 per cent of disbursements had been utilized.
56
57
http://www.georoad.ge/index.php?que=eng/projects
http://siteresources.worldbank.org/GEORGIAEXTN/Resources/East.pdf
In Progress
48
Review of Developments in Transport in Asia and the Pacific 2011
Table III-3. (continued)
Country
Islamic Republic of
Iran
Selected road and highway investment projects
Persian Gulf Bridge
Status
In Progress
Overview: The 2.2 km-long bridge will link Qeshm, an economic free zone in the
Persian Gulf, to the port city of Bandar Abbas in Hormozgan province, south of the
country.
Funding: The project is estimated to have a price tag of US$ 906 million, of which
15 per cent will be state funding and the remaining 85 per cent from domestic and
foreign investment. The Austrian Government is contributing to the construction on
a 10 year Build, Own and Transfer ownership basis.
Completion date: Construction has commenced in March 2011; expected completion
date is 2015.58
Kazakhstan
Development of various highways
In Progress
Overview: The Government of Kazakhstan, through the State Programme on the
Development of Highways for 2006-2012, is reconstructing 2,259 kilometres of
highways. The reconstruction will take place on highway passes that lead from the
border of the Russian Federation, Aktobe, Kyzylorda, Skymkent, Taraz, Almaty and
Khorgos up to the border of China. The objective of the project is to upgrade the
technical standards of the road to international standards and reduce transportation
costs.
Funding: Government of Kazakhstan at a cost of approximately US$ 1,320 million.
Completion date: The project is due for completion in 2012.
Kazakhstan
Astana-Karaganda Road Rehabilitation
In Progress
Overview: The 238 kilometre Astana-Karaganda Road is part of the major trunk road
between Almaty and Astana and also part of the CAREC Transport corridor. Expanded
capacity and increased efficiency are required to support a rapid increase in traffic on
the road between Astana and Almaty. The project includes construction of a bypass
past Karaganda.
Funding: The project is estimated to cost US$ 1 billion and is to be financed through
a concession.
Completion date: The project is due for completion in 2012.
Kyrgyzstan
Carec Transport Corridor (ADB Project 42399)
In Progress
Overview: The Bishkek-Torugartr Road is part of the corridor linking the Kyrgyzstan,
Kazakhstan, the Russian Federation and China, where more than 70 per cent of
Kyrgyzstan’s trade is regional, with 50 per cent moved by road. The corridor is in poor
condition with rehabilitation to facilitate an increase speed and reliability of passenger
and freight flows and create business opportunities. The project includes the
improvement of approximately 75 kilometres of road.
Funding: The project is being financed by way of loan by the Asian Development
Bank. The estimated value of the loan is US$ 22 million.
Status: Implementation of highway rehabilitation is on schedule with the progress of
civil works of about 60 per cent.
Completion date: December 2013.
58
Payvan Iran News, January 4th 2008, Pilot study for Qeshm Island’s Persian Gulf Bridge started; http://www.payvand.com/
news/08/jan/1034.html
III. Roads and Highways
49
Table III-3. (continued)
Country
Mongolia
Selected road and highway investment projects
Western Regional Road Corridor Development Project – Phase 1
Status
In Progress
Overview: As part of Asian Highway 4, the new road will help link Mongolia to the
rest of Asia. It is being built in the Western Region of Mongolia and will link the Hovd
and Bayan-Olgiy areas of Western Mongolia with Xinjiang Autonomous Region in the
China and Siberia Province of the Russian Federation. The Project supports ADB’s
strategy for Mongolia – and for the Central Asian region, to promote sustainable
economic growth and social development by allowing for more market integration and
movement of people. The Project also supports Mongolia’s priority development plan
of building roads for the Asian Highway under the national development strategy,
which is based on the Millennium Development Goals.
Funding: US$ 37.6 million from ADB.
Status: Package 1 contract was awarded in December 2010. Construction has begun on
the Temeen Huzuu-Baga Ulaan davaa direction and is progressing satisfactorily.59
Completion: 1 October 2013.
Myanmar
Monywa-Yagyi-Kalewa road upgrade and rehabilitation60
In Progress
Overview: The 185 km Monywa-Yagyi-Kalewa road located in Sagaing Region links
Kani, Minkin and Kalewa townships. Up to 31 May 2011, 117.8 km is sealed, 26.5 km
is gravel road, 36 km is hard road and 5.6 km is earth road. The purpose of the project
is to pave a section of the road between Kalewa and Yagyi village which cannot be
used in the rainy season. Although previously paved by the Government of Myanmar,
landslides have since damaged the road.
Funding: The estimated cost of the project US$ 40 million, financed by the
Government of Myanmar.
Status: Preliminary works have been carried out on the road surface and bridges by
Monywa Group Construction Co., Ltd. under a BOT system and in August 2011 the
project was handed back to the Ministry of Works, which plans to work together with
Thai-based NEDA to complete repair of the road section between Monywa and
Kalewa.
Pakistan
Flood Emergency Reconstruction Project
In Progress
Overview: In direct response to a request from the Government of Pakistan, in March
2011 the ADB approved loan assistance and a supporting technical assistance grant. As
well as upgrading flood protection to agricultural lands, the emergency loan will
reconstruct over 790 km of national highways and 800 km of provincial roads and
bridges to safer, higher standards.
Funding: The assistance will include US$ 600 million to be taken from Ordinary
Capital Resources with a 32-year term, an eight-year grace period and interest set in
accordance with ADB’s LIBOR-based lending facility. Another US$ 50 million
equivalent will be tapped from ADB’s concessional Asian Development Fund, which
will have a repayment term of 40 years, with a 10-year grace period, and interest
charges at 1 per cent per annum.
Completion date: March 2014.
59
http://pid.adb.org/pid/LoanView.htm?projNo=39265&seqNo=02&typeCd=2&projType=GRNT
MRTV_3 Program, Second regular session of First Amyotha Hluttaw continues for 12th day, 6th September, 2011; Uhttp://
www.mrtv3.net.mm/open8/070911iss1.html
60
50
Review of Developments in Transport in Asia and the Pacific 2011
Table III-3. (continued)
Country
Sri Lanka
Selected road and highway investment projects
National Highway Sector Project
Status
In Progress
Overview: The project will upgrade 270 kilometres of national highways consisting of
the Puttalam-Anuradhapura Highway, hilly roads and south highway links. A land
acquisition and resettlement of approximately 80 kilometres is also funded by this
project.
Funding: The World Bank has provided funding by way of loan to the Sri Lankan
Government for approximately US$ 150 million.
Completion date: The expected completion date was September 30, 2011.
Tajikistan
Dushanbe-Kyrgyz Border Road Rehabilitation Project (Phase II)
In Progress
Overview: The Project will rehabilitate central and border sections of Dushanbe to
Kyrgyz Border road. Key project outputs are rehabilitating 89 km of two-lane
highway; improving 60 km of rural roads in the project area; procuring road
maintenance equipment for routine and periodic maintenance and vehicle weighing
equipment for axle load control; and institutional strengthening of MOTC’s accounting
department and auditing functions through training and procurement of computers;
Funding: The ADB has provided funding by way of loan a total of US$ 29.5 million to
the Government of Tajikistan for the project.
Status: The Phase II Project Implementation Unit is set up in the Ministry of Transport
and Communications (MOTC) to supervise the daily implementation progress of the
project.
Completion date: December 2012.
Thailand
World Bank Highways Management Project
Overview: Under the Royal Government of Thailand (RGT)’s four-lane Second Phase
Highway Widening Project (Phase II), five national highway sections are being
widened from two lanes to four lanes (totalling 216 kilometres). Two sections are
located in the North-East Region of the country, two in the South, and one in the
Eastern Seaboard. The widening of these sections aims to accommodate the growing
traffic and improve road safety, with an expected outcome in the reduction of road user
costs (including vehicle operating costs, travel time costs and traffic accident costs) by
at least 10 per cent on the improved sections.
The existing loan for the Highways Management Project was approved on
December 9, 2003, and became effective on March 15, 2004. The implementing
agency is the Department of Highways (DOH). There was a one-year extension of the
loan closing date from June 30, 2008 to June 30, 2009. This was followed by an
extension to September 30, 2009 for the processing of a second order restructuring,
and another extension to June 30, 2010 as part of the completed restructuring.
Funding: Two separate World Bank loans with an accumulative value of US$ 158.4
million have underpinned this project.
Status: In February 2010, 92.4 per cent of the first loan commitment of US$ 84.29
million had been utilized.
Completion date: June 2012.
Sources: ESCAP meeting notes, World Bank and ADB project databases and country websites.
In Progress
IV. Maritime Ports and Developments in Shipping
51
IV. MARITIME PORTS AND DEVELOPMENTS IN SHIPPING
A. Trends in Maritime Trade
Figure IV-1 shows worldwide growth in maritime and container trade volumes over the period
1985 to 2010. In both cases, volumes dropped sharply in 2009 as the impact of the Global Financial Crisis
made itself felt in the real economy, but recovered in 2010 to pre-crisis levels. Total international maritime
trade volumes grew at an average of 3.3 per cent per annum over the period 1985 to 2010, with the result
that by 2010 total seaborne trade more than doubled 1985 volumes. Containerized cargoes have grown at an
annual average rate of 8.8 per cent over that same period, resulting in more than an eight-fold increase in
containerized cargo movements. Data compiled by UNCTAD suggests that in 2009, the developing
economies of Asia accounted for 39 per cent of the total volume of maritime cargo loaded, and 40 per cent
of the maritime cargo discharged (Figure IV-2).
Figure IV-1. Growth of world maritime trade (1985-2010)
900
Index of maritime trade volume (1985 =100)
800
700
600
500
400
300
200
100
Total Maritime Trade
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
0
Container Trade
Source: Clarksons in-line database; UNCTAD Review of Maritime Transport 2010; Clarkson’s Container Intelligence monthly.
The role that manufacturing exports have played in the economic development of Asia – and
especially of Asia east of the Bay of Bengal – and the high level of dependence on maritime transport make
container shipping a particular important element of the transport system for Asian. Conversely, Asia has
increasingly become the heart of the global container shipping system. Figure IV-3 shows that, after
a period of extremely high growth in the early years of containerization, the average rate of growth in the
number of containers handled in the world’s container ports remained around 10 per cent between 1983 to
2008. The growth in container port volumes in the ESCAP region comfortably exceeded world growth
levels throughout this period. When world container volumes suffered an unprecedented slump in 2009,
volumes in the ESCAP region fell slightly less than global volumes; and in 2010 the recovery in ESCAP
ports has been slightly stronger.
52
Review of Developments in Transport in Asia and the Pacific 2011
Figure IV-2. Developing Asia’s share of global maritime volumes, 200961
Source: Based on data presented in UNCTAD Review of Maritime Transport 2010.
Figure IV-3. World and ESCAP Container Port Throughput Growth (1973-2010)
1973-1978
1978-1983
1983-1988
1988-1993
1993-1998
1998-2003
2003-2008
2008-2009
2009-2010
-15%
-10%
-5%
0%
5%
ESCAP
10%
15%
20%
25%
30%
World
Source: Based on data from Containerization International on-line database, http://www.ci-online.co.uk
Along with the rapid growth of the global container trade over the last three decades has come
a fundamental structural shift in the balance of container handling activity. Figure IV-4 shows the shift in
the distribution of the global container handling task over the 1973-2010 period. The most striking feature
of the graph is the rise in the relative importance of the ESCAP region over this period: the proportion of
ESCAP ports in the global total has risen from around 23 per cent in 1973 to 59 per cent in 2010. This rise
has been largely at the expense of the ports of the developed economies in Europe and North America; the
share of the ports of these two continents in the global total has fallen from 45 per cent to 17 per cent and
from 30 per cent to 9 per cent respectively.
61
This volume includes several high income ESCAP economies, including the Republic of Korea; Hong Kong, China; Macao,
China; Taiwan Province of China; Singapore; and Brunei Darussalam, but excludes Japan, Australia and New Zealand.
IV. Maritime Ports and Developments in Shipping
53
Figure IV-4. Distribution of global port container volumes, 1973-2010
Share of global container port handling activity
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1973
ESCAP
1978
1983
North America
1988
Europe
1993
1998
2003
Latin America and Caribbean
2008
2009
Africa
2010
Middle East
Source: Based on data from Containerization International on-line database, http://www.ci-online.co.uk
There have also been complex structural changes in the geographical balance of container port
activity within the ESCAP region. In the early 1970’s, the East and North-East Asia and Pacific subregions
accounted for almost 96 per cent of Asia’s container trade and were essentially confined to Japan and Hong
Kong, China, which were the focal points for both the Europe-Asia and trans-Pacific trades, and Australia.
Singapore had just entered the container trade market. By 1993 this had changed dramatically, as
diversification of Asian container trade entered a more mature phase. Singapore was by then the second
largest container port in the world, with only Hong Kong, China handling greater volumes. Other ports in
South-East Asia, such as Bangkok, Tanjung Priok and Port Klang, were also handling substantial volumes.
As a result, South-East ports by 1993 handled nearly 30 per cent of the ESCAP total. On the other hand, the
share of the ports of the Pacific subregion had declined dramatically to around 6 per cent – a share that was
by then matched by the ports of South and South-West Asia.
During the next decade, the principal change was the emergence of the China market. The number
of containers handled by ports in China (including Hong Kong, China) increased from 2 million TEU in
1983 to 55 million TEU in 2003 – a remarkable sustained growth rate of approximately 18 per cent a year
over twenty years. As a result of this spectacular growth, the Chinese container market had overtaken Japan
and the United States of America as the world’s largest container market.
Since 2003, the East and North-East Asian share of the total ESCAP volumes increased further to
66 per cent (from 62 per cent in 2003), while the North Asian share had declined from over 40 per cent in
1978 to just 13 per cent. The once significant share of Pacific subregion had dwindled to around 2 per cent
by 2010. The South-East Asian share, after rising rapidly to 29 per cent in 1998, has subsequently declined
to around 24 per cent.
54
Review of Developments in Transport in Asia and the Pacific 2011
Figure IV-5. Distribution of container port volumes within ESCAP, 1973-2010
Share of ESCAP container port handling activity
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1973
1978
1983
Pacific
1988
1993
1998
East and North-East Asia
South and South-West Asia
2003
2008
2009
2010
South-East Asia
North and Central Asia
Source: Based on data from Containerization International on-line database, http://www.ci-online.co.uk
B. Container Port Throughput
The world’s top 20 container ports handled 254 million TEU in 2010, which accounted for 48.4 per
cent of the world’s container port total. The concentration of container port traffic is even more pronounced
in Asia and Pacific, where the 20 busiest container ports handled 227 million TEU, or 73 per cent of the
region’s total throughput in 2010. The world’s eight busiest container ports are located in the ESCAP
region. These eight ports alone handle 30 per cent of world container throughput, or 60 per cent of the
ESCAP region’s total.62
The world’s top two container ports in terms of container throughput were Shanghai, China and
Singapore, which between them handled approximately 57.5 million TEU in 2010. However, in each case
the mega-port’s dominance of its subregion has faced competition from new ports in recent years, resulting
in a struggle to maintain market share.
1. North and North-East Asia
Container throughput for ports in China63 increased from 19.4 million TEU in 2000 to 118.3 million
TEU in 2008, equivalent to an average annual growth of 25.4 per cent for this period. This rapid growth
consolidated the position of China as the world’s most important container shipping market. Chinese
container port throughput (excluding Hong Kong, China) is now more than six times as large as that of
Japan.
The most dramatic growth in terms of container throughput units has occurred in the port of
Ningbo in China, with a recorded throughput of 13.1 million TEU in 2010. The container throughput of the
Taiwan, Province of China increased rapidly during the first half of the 1990s, but has subsequently slowed
significantly. Total throughput at 12.2 million TEU in 2010, was slightly lower than in 2005.
62
Based on analysis of data from Containerization International on-line database, http://www.ci-online.co.uk, downloaded
15 October 2011.
63
Excluding container throughput for ports in Hong Kong, China and Taiwan, Province of China.
IV. Maritime Ports and Developments in Shipping
55
Table IV-1. Port container throughput in selected ESCAP economies and ports, 1990-2010
Economy/Port
China
Guangzhou
1990
1995
2000
2005
2009
2010
1,248,121
4,966,262
22,884,361
67,499,063
106,330,920
127,049,185
1,429,900
4,685,000
11,190,000
12,550,000
80,744
Ningbo
160,000
902,000
5,208,000
10,502,800
13,144,000
Qingdao
135,419
600,000
2,120,000
6,307,000
10,260,000
12,012,000
Shanghai
456,123
1,527,000
5,613,000
18,084,000
25,002,000
29,069,000
284,000
3,993,714
16,197,173
18,250,100
22,509,700
Shenzhen
Tianjin
320,000
702,051
1,708,423
4,801,000
8,700,000
10,080,000
Hong Kong, China
5,100,637
12,549,746
18,098,000
22,601,630
21,040,096
23,532,000
Taiwan, Province
of China
5,450,912
7,848,695
10,510,762
12,791,429
11,352,097
12,230,414
Kaohsiung
3,494,631
5,232,000
7,425,832
9,471,056
8,581,273
9,181,211
Keelung
1,828,143
2,169,893
1,954,573
2,091,458
1,577,824
1,763,900
Japan
7,896,365
10,604,124
13,222,734
17,055,082
16,285,918
18,518,824
Kobe
2,595,940
1,463,515
2,265,991
2,262,066
2,247,024
2,556,291
897,781
1,477,359
1,911,919
2,491,198
2,112,743
2,548,853
Tokyo
1,555,138
2,177,407
2,899,452
3,819,294
3,810,769
4,203,000
Yokohama
1,647,891
2,756,811
2,317,489
2,873,277
2,798,002
3,280,000
Nagoya
Republic of Korea
2,348,475
4,502,596
9,111,099
14,885,942
15,676,118
18,510,479
Busan
2,348,475
4,502,596
7,540,387
11,843,151
11,954,861
14,157,291
Gwangyang
677,747
1,441,261
1,810,438
2,073,196
Incheon
611,261
1,153,465
1,578,003
1,887,000
1,804,410
1,994,523
2,537,584
Russian Federation
83,456
167,098
306,010
105,946
181,613
336,272
Bangladesh
107,348
245,417
474,935
808,924
1,182,121
1,352,605
India
666,933
1,360,393
2,460,593
4,945,247
7,888,990
8,811,301
54,643
339,136
1,189,780
2,666,703
4,061,343
4,270,000
298,336
862,074
1,148,854
Islamic Republic of Iran
173,769
427,747
1,325,643
2,206,476
2,592,522
Shahid Rajaee
167,167
415,382
1,292,962
2,206,476
2,592,522
Georgia
Jawaharlal Nehru
Mundra
Pakistan
390,391
550,650
812,234
1,686,355
2,058,056
2,157,258
Sri Lanka
583,811
1,028,746
1,732,855
2,455,297
3,464,297
4,000,000
Turkey
219,222
738,583
1,594,157
Ambarli
Mersin
147,617
298,597
Brunei Darussalam
107,517
71,050
26,337
Cambodia
22,000
3,207,862
4,521,713
5,650,381
1,185,768
1,836,030
2,540,353
596,289
843,917
1,024,171
85,577
211,141
207,577
224,206
Indonesia
923,663
2,035,344
3,797,948
5,738,407
6,718,396
8,565,381
Tianjung Priok
643,963
1,300,126
2,476,152
3,277,868
3,804,805
4,714,857
Malaysia
901,131
2,100,863
4,642,428
12,197,750
15,859,938
18,319,504
Port Klang
496,526
1,133,811
3,206,753
5,715,855
7,309,779
8,870,000
418,218
4,177,121
6,016,452
6,530,000
Philippines
1,408,090
1,891,639
3,031,548
4,134,899
4,305,867
5,120,584
Manila
1,038,905
1,668,031
2,291,704
2,665,015
2,815,004
3,257,372
Singapore
5,223,500
11,845,600
17,096,036
24,104,200
26,592,800
29,178,200
Thailand
1,078,290
1,961,916
3,177,950
5,115,213
5,897,935
6,648,532
Bangkok
1,018,290
Tanjung Pelepas
1,432,843
1,073,000
1,349,246
1,222,048
1,452,829
Laem Chabang
529,073
2,104,950
3,765,967
4,537,833
5,068,076
Viet Nam
129,500
263,685
626,471
Ho Chi Minh City
4,936,598
5,719,648
3,563,246
3,788,000
56
Review of Developments in Transport in Asia and the Pacific 2011
Table IV-1. (continued)
Economy/Port
Australia
1990
1995
2000
2005
2009
2010
1,599,793
2,279,684
4,828,175
5,299,783
6,196,745
5,289,954
Melbourne
622,983
852,282
2,550,053
1,862,878
2,203,480
2,334,000
Sydney
477,395
695,312
990,654
1,445,318
1,927,507
1,531,000
25,423
44,077
Fiji
French Polynesia
Guam
New Caledonia
32,451
41,299
62,288
69,025
63,807
115,860
157,036
132,689
150,960
157,096
27,799
40,568
72,106
119,147
183,214
New Zealand
414,442
732,464
1,355,767
1,660,339
2,218,308
1,294,657
Auckland
221,103
405,092
454,661
664,787
843,590
453,498
Tauranga
31,140
555,284
423,138
511,343
Papua New Guinea
90,361
154,982
80,257
262,209
114,919
Source: Containerization International ci-online database.
Notes: (a) The year refers to calendar or fiscal year; (b) Identified economies only – includes estimates for identified economies for which
figures were not available in a particular year.
Growth of container throughput at Japanese ports has also been more moderate in recent years.
From 7.8 million TEU in 1990, container throughput grew at nearly 6 per cent per annum to reach
10.6 million TEU in 1995. From 1995-2000, growth slowed to an annual average rate of 4.6 per cent, and
has since slowed further reaching 18.5 million TEU in 2008. Unlike most other ESCAP member countries
(with the notable exception of China), where container shipping is concentrated in one or two major ports,
the container business in Japan is relatively diverse. Four ports – Kobe, Nagoya, Tokyo and Yokohama – all
had throughputs in the excess of 2 million TEU in 2010, with the highest volume being Tokyo, at to
4.2 million TEU.
Container throughput for the Republic of Korea continued to grow strongly from 2000 to 2010,
rising from 9.1 million to 18.5 million TEU, an average growth rate of 7.3 per cent per year. Development
of a large transhipment business at the major container port of Busan has contributed significantly to this
growth. In the past few years, the port of Gwangyang has made a substantial contribution to the national
total, with throughput a total throughput of 1.9 million TEU in 2010. Meanwhile, container throughput in
Russian ports totalled around 2.5 million TEU in 2010.
2. South-East Asia
In several ASEAN countries, the second half of the 1990s witnessed a major shift in trade balance,
with imports declining sharply while exports grew strongly, due to lower exchange rates and government
efforts. This changed trading pattern has in most cases persisted through the 2000s. Amongst the countries
with a longer history in the container trades, the highest sustained growth rates in South-East Asia were
achieved by the ports of Malaysia, with an average compound rate of 14.7 per cent per year between 2000
and 2010. Container port traffic in Malaysia grew strongly from a base of 4.6 million TEU in 2000 to
16.8 million TEU in 2010. Meanwhile, Viet Nam was late in entering the container trades, but volumes
have grown very rapidly over the last decade, reaching nearly 6 million TEU in 2010 – an impressive
growth of 36 per cent per annum (albeit from a very low base) over the decade.
Indonesia’s container trade volume has more than doubled since 2000, increasing from 3.8 million
TEU in that year to 8.6 million TEU in 2010. More than half of this national total passed through the port of
Jakarta, Tanjung Priok. Thailand’s container trade grew only slightly more slowly, with the total volume of
containers handled increasing from 3.2 million TEU to 6.6 million TEU in 2010. A salient feature of the
development of Thailand’s container traffic is the rise of Laem Chabang as the country’s premier container
port. With the advantage of high productivity terminals and deep water berths, and backed by a policy
decision to cap the throughput of the congested Bangkok port at or near one million TEU, Laem Chabang’s
total throughput grew from 2.1 million TEU in 2000 and 5.1 million TEU in 2010. Laem Chabang now
handles over three-quarters of Thailand’s total international container trade.
IV. Maritime Ports and Developments in Shipping
57
The rate of growth in Singapore was more moderate, with an average annual increase of
5.5 per cent over the last decade. Although Singapore handled over 29 million TEU in 2010, it was
overtaken by Shanghai in that year, losing its title as the world’s busiest container port.
3. South and South-West Asia
The Islamic Republic of Iran has registered the fastest growth in port container throughput, at an
average 20 per cent per year from 2000 to 2010, reaching 2.6 million TEU. In fact, the growth in container
port throughput was almost as rapid as in China over this period. In India, the growth of container
port throughput accelerated from an average of 11 per cent per year in the second half of the 1990s to
13.5 per cent per year from 2000 to 2010. Indian container port throughput was estimated at 8.8 million
TEU in 2010. The modern, largely privatized Jawaharlal Nehru port is India’s premier container port, and
handled approximately 48 per cent of India’s container volumes in 2010.
In Bangladesh, container port throughput continues to be strong, as it grew by an average
11 per cent per year from 2000 to 2010, reaching 1.4 million TEU in 2010. In Pakistan, container port
throughput grew at just over 10 per cent per year from 2000 to 2010, reaching 2.2 million TEU in 2010. In
Sri Lanka, container port throughput grew at approximately 9 per cent per year from 2000 to 2010, reaching
4.0 million TEU in 2010.
C. Shipping Trends
1. Registered merchant fleet capacities
In 2010, the total capacity of the world maritime fleet stood at 883 million gross tonnes (gt)
(Table IV-2). Whereas the fleet capacity increased on average by just 0.1 per cent a year from 1980 to 1990,
this growth accelerated to 3.1 per cent from 1990 to 2000, and increased further to 4.4 per cent per year
over the decade 2000-2010. Despite a severe deterioration in shipping market conditions in the latter half of
2008 and 2009 bringing new orders virtually grind to a halt, delivery of ships already on order meant that
fleet growth continued, with the global fleet increasing at the beginning of 2010 nearly 7 per cent larger
than at the beginning of 2009.
The capacity of the merchant fleet registered in the ESCAP region as a whole expanded on average
by 0.8 per cent per year during the 1990-2000 period, which was considerably slower than the world
average (Table IV-2). The slow growth in the ESCAP region during the second half of the 1990s was
mainly due to the reduction in the tonnage registered under two of the major flags of the region: Japan and
the Russian Federation. Tonnage sailing under the Japanese flag fell from over 40 million tonnes in 1980 to
16.2 million tonnes in 2000. In 1990, tonnage under the flag of the Soviet Union was around 22.6 million,
whereas Russian-registered vessels totalled 10.0 million tonnes in 2006. Some of this reduction resulted
from the assignment of some vessels formerly registered in the Soviet Union to the flags of other members
of the former Union, but an overall decline in fleet numbers played the major part.
However, the flagging out of the Japanese fleet and the reduction in Russian tonnage slowed after
2000, and Asian trade accelerated as economies recovered from the effects of the 1997 Asian financial crisis
and the full effects of long boom in China began to be felt. The Chinese and Korean fleets grew rapidly, as
did the smaller fleets of Indonesia and Malaysia. As the same time, several Pacific Island open registers –
most notably the register of the Marshall Islands, but also the registers of Vanuatu and Tuvalu – grew
quickly. The tonnage of vessels registered under the flags of Pacific Island economies increased more than
five-fold from 10 million tonnes in 2000 to over 52.0 million tonnes by 2010. As a result, the capacity of
the merchant fleet registered in the ESCAP region expanded on average 6.9 per cent per year from 2000 to
2010, which was well in excess of the world average of 4.4 per cent over the same period.
There are significant differences between the share of global tonnage that is domiciled in a country
and the share that is registered in that country. UNCTAD defines domiciled vessels as follows: “the country
of domicile indicates where the controlling interest (for example, the parent company) of the fleet is
58
Review of Developments in Transport in Asia and the Pacific 2011
Table IV-2. Capacity of merchant fleets registered in the ESCAP region, 1980-2010
Subregion, country or
economy
China
Democratic People’s
Republic of Korea
Hong Kong, China
Japan
Republic of Korea
Taiwan, Province of China
East and North-East Asia
Azerbaijan
Georgia
Kazakhstan
Russian Federation
Turkmenistan
North and Central Asia
Capacity (’000 GT)
1990
2000
2010
6,874
0
13,899
0
16,266
655
30,077
871
7.3%
1.6%
6.3%
2.9%
1,717
40,960
4,344
6,565
27,078
7,783
8,587
16,193
5,655
14.4%
-4.1%
6.0%
2.7%
-5.0%
-3.1%
18.1%
-0.9%
8.6%
53,895
55,325
47,356
45,338
14,725
12,893
2,636
106,540
0.3%
-1.5%
8.4%
1980
0
0
280
23,444
22,629
9,967
23,444
22,629
10,247
1,643
15
2,512
56
1,944
29
Australia
Fiji
French Polynesia
Kiribati
Marshall Islands
Micronesia (Federated State of)
New Caledonia
New Zealand
Papua New Guinea
Samoa
Solomon Islands
Tonga
Tuvalu
Vanuatu
Pacific
1
0
0
4
0
0
4
8,439
10
264
25
5
3
15
0
0
1,971
260
37
27
8
40
1
2,164
5,109
Bangladesh
India
Islamic Republic of Iran
Maldives
Pakistan
Sri Lanka
Turkey
South and South-West Asia
354
5,911
1,284
136
478
94
1,455
9,712
Brunei Darussalam
Cambodia
Indonesia
Malaysia
Myanmar
Philippines
Singapore
Thailand
Timor-Leste
Viet Nam
South-East Asia
Total ESCAP region
World total
743
798
77
7,650
63
9,331
Average Annual Growth
1980-1990 1990-2000 2000-2010
11.1%
-0.4%
-7.9%
-2.6%
-0.4%
-7.6%
-0.9%
4.3%
14.1%
-2.5%
-6.5%
-0.5%
2.1%
14.9%
-0.7%
64.7%
19.3%
1.6%
-0.2%
4.0%
18.4%
10.3%
10.3%
4.2%
2.2%
16.6%
3.7%
4.5%
35.3%
4.9%
16.3%
241
79
2
9
44
53
1,328
12,182
1,847
35
1
547
49,088
12
2
363
98
10
13
68
1,098
2,145
55,327
10.0%
-0.7%
7.9%
-22.3%
1.3%
0.9%
48.9%
-4.8%
9.1%
464
6,476
4,738
78
354
350
4,029
16,489
380
6,839
3,730
86
285
183
6,262
17,764
645
9,027
988
141
295
168
5,451
16,715
2.7%
0.9%
13.9%
-5.4%
-3.0%
14.0%
10.7%
5.4%
-2.0%
0.5%
-2.4%
1.0%
-2.2%
-6.3%
4.5%
0.7%
5.4%
2.8%
-12.4%
5.0%
0.4%
-0.8%
-1.4%
-0.6%
1
0
1,412
702
88
1,928
7,664
392
358
0
2,179
1,718
827
8,515
7,928
615
361
1,792
3,387
5,665
512
7,191
23,414
1,962
80.0%
0.1%
4.4%
9.4%
25.1%
16.0%
0.3%
4.6%
4.5%
12.7%
-4.7%
-1.7%
11.4%
12.3%
3.3%
0.9%
9.1%
3.1%
-9.8%
-3.2%
5.8%
2.6%
241
12,428
470
22,610
929
45,212
500
1,964
8,093
7,718
183
5,219
41,047
2,526
1
3,451
70,702
6.9%
6.2%
7.1%
7.2%
14.0%
4.6%
101,450
419,911
122,162
423,627
132,762
573,121
258,615
882,635
1.9%
0.1%
0.8%
3.1%
6.9%
4.4%
Source: UNCTAD Review of Maritime Transport, UNCTAD, New York and Geneva, various issues; Clarkson’s Shipping Intelligence
Network, http://www.clarksons.net, accessed 31 December 2009.
Notes: Data refers to merchant ships of 100 tonnes gross and above, excluding wooden and non-propelled craft. 1980 and 1990 data shown for
the Russian Federation are for the former Soviet Union.
IV. Maritime Ports and Developments in Shipping
59
located”.64 Ship owners in many countries – especially, but not exclusively, countries with relatively high
incomes – have increasingly chosen to register their vessels in other countries in which registration of
vessels by non-residents is permitted.
2. Trends in container slot capacity and ship size
Globally, the size of mainline container ships has increased steadily over the past three
decades. From 3,000 TEU in 1975, the size of the largest vessel in operation rose to 4,000 TEU in 1991, to
6,800 TEU in early 2000. The largest containerships currently in operation is given by Containerization
International at 15,550 TEU (Figure IV-6). In February 2011, Maersk Line announced an order for 10 new
‘Triple-E’ megaships, with an estimated capacity of 18,000 TEU – 16 per cent larger than the largest ships
now in service. These vessels will be 400 metres long, 59 metres wide and 73 metres tall, and will cost
US$ 190 million each.
Figure IV-6. Increase in containership size (1980-2010)
20,000
Size of largest container vessel-TEU
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1980
1985
1990
1995
2000
2005
2007
2009
2010
on order
Source: Historical series compiled from Containerization International, various years.
These developments are especially significant for the countries of the ESCAP region, as almost all
vessels in the world fleet in excess of 6,000 TEU, and all of the vessels in excess of 8,000 TEU, currently
operate on two routes: the Trans-Pacific route between Asia and North America and the Asia-Europe route.
The other trade in which very large vessels are now being employed is the trade between Asia and South
America, where vessels of up to 7,500 TEU are now being used.
As the size of mainline vessels has been increasing, so has the size of feeder vessels and vessels
deployed in regional and services. Feeder vessels of up to 2,000 TEU are now common, whereas in the
mid-1990s vessels 1,200 to 1,300 TEU marked the top end of the feeder range. Similar trends are evident
on some of the major intra-regional trade routes: between Australia and South-East Asia, for example, the
size of the largest vessel deployed rose from 1,250 TEU in 1992 and 2,900 TEU in 1997 to 4,700 TEU by
2010.65 Similarly, vessels of up to 5,000 TEU are operating between South-East Asia and China.66
64
UNCTAD Review of Maritime Transport 2007. UNCTAD further notes that in practice it is difficult to clearly separate the
“domiciled” and “registered” categories due to insufficient transparency.
65
Containerization International Yearbook, various issues, and Containerization International online database, http://www.cionline.co.uk, accessed 28 September 2011.
66
Containerization International, Well Stacked, May 2011.
60
Review of Developments in Transport in Asia and the Pacific 2011
The containership order book is now dominated by large vessels: container ships of over 7,000
TEU accounting for 69 per cent of the capacity currently on order. Planned investment seems to be
particularly strong for ships with a capacity of 12,000 TEU and above: the 128 vessels in this size class that
are currently on order comprise over 42 per cent of the total order book capacity. Figure IV-7 shows the
evolution of the global container fleet from 1988 through to 2011. By the beginning of 2011, a total of
4,883 cellular container ships in service offered a total capacity of 14.1 million slots: this is up from
2,623 ships offering a total of 4.4 million TEU slots a decade earlier in 2000, and up from 1,239 vessels
offering a total of 1.7 million TEU slots almost two decades earlier in 1990. The increase in the average size
of container ships, measured in terms of slot capacity, is from 1,378 TEU in 1988 to 2,892 TEU in 2011.
Figure IV-7. Developments in the numbers of container vessel numbers and
their average size, 1988-2010
6,000
3,500
Average TEU Capacity
2,500
4,000
2,000
3,000
1,500
2,000
1,000
1,000
Number of cellular vessels
3,000
5,000
500
0
Average TEU capacity
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
0
Number of vessels
Notes: Shipbuilding Markets 2007 (1999 to 1995); Clarksons Shipping Intelligence Network www.clarksons.net (1996-2008); Containerization
International (2009-2011).
3. Consolidation in world container shipping
Between 1 January 2000 and late 2011, the share of global container shipping capacity controlled
by the top ten container lines increased substantially, from 49 per cent to 65 per cent. But perhaps more
striking is the change in the share of fleet capacity of the top five lines. In 2000, the share of the top five
lines stood at 32.8 per cent. By late 2011, this had risen to 47.4 per cent.67 In other words, all of the
increase in the share of the top ten lines over the decade was accounted for by the gains made by the top
five lines; in aggregate, the share of the global total held by the next five largest lines (that is, the lines
ranked six to ten) did not change. The majority of the increase in concentration can be accounted for by the
growth of the very largest lines: in particular Maersk, MSC, and CMA-CGM, which between them now
account for almost 40 per cent of global capacity. The increased prominence of CMA-CGM is particularly
striking: the line increased its capacity from 123,000 TEU in 2000 to 1,350,000 TEU by late 2011,
improving its global ranking from twelfth to third. As can be seen from Figure IV-8, the share of total
cellular fleet capacity controlled by the top twenty global lines as at 28 September 2011 was approximately
88 per cent of global capacity.
67
Data on market shares as at 1 January 2000 is taken from AXS-Alphaliner Liner Shipping Report January 2007; data on
market shares as at 28 September 2011 is taken from AXS-Alphaliner Top 100 Report, accessed on the Alphaliner’s website:
http://www.alphaliner.com, 28 September 2011.
IV. Maritime Ports and Developments in Shipping
61
Figure IV-8. Share of top twenty shipping lines (as of 28 September 2011)
Source: Based on data from AXS-Alphaliner Top 100 Report downloaded from Alphaliner website http://www.alphaliner.com, 28 September
2011.
Although all of the three largest lines are European, economies of the ESCAP region are well
represented in the mix of major container lines. Twelve of the world’s top twenty container shipping
operators are based in the ESCAP region, and they control 35 per cent of the world’s container shipping
capacity. The growing importance of intra-Asian trade is illustrated by the inclusion of regional specialists
Pacific International Line in this group, which is otherwise dominated by global carriers. From 2000 to
2010, the container shipping fleet registered in the ESCAP region has also grown 12.4 per cent per year,
which is in excess of the world average of 9.2 per cent per year. A significant part of this growth is the rapid
increase in registrations on the open registry of the Marshall Islands, but major contributions also come
from Singapore, followed by Hong Kong, China and China.
4. Productivity trends in the world merchant shipping fleet
Figure IV-9 illustrates the productivity trends of the world merchant fleet between 1980 and 2009.
The operational productivity of the world fleet, measured in tonnes of cargo per deadweight tonne of
capacity, peaked in or around 2006, at which time productivity of the dry bulk fleet was nearly 25 per cent
higher than in 1980; productivity of the tanker fleer 38 per cent above 1980 levels; and productivity of the
container fleet an impressive 65 per cent greater than in 1980. Since 2006, the productivity of all sectors has
declined: 6 per cent in the dry bulk sector; 17 per cent in the liquid bulk sector; and 28 per cent in the
container and general cargo sector.
The primary driver of both the productivity improvement to 2006 and the subsequently slide
appears to be the supply-demand balance in the shipping industry. There was a strong surge in world
seaborne trade in the early 2000s, when the demand for shipping far outstripped the expansion in capacity.
The subsequent reduction in productivity reflects a large influx of new vessels in 2005, which has continued
right through to the present, combined with the sharp slowdown in world trade that began in 2008. Ship
owners have responded by accelerating scrapping, laying vessels up or operating them at reduced speeds.
The second and third responses have the effect of driving down productivity (when this is measured by
cargo carried per tonne of ship capacity).
62
Review of Developments in Transport in Asia and the Pacific 2011
Figure IV-9. Productivity of the world merchant fleet, 1980-2009
Tonnes carried per dwt of shipping capacity
14
12
10
8
6
4
2
0
1980
1990
Tankers
2000
2006
Dry Bulk Carriers
2007
2008
2009
Container and general cargo ships
Source: Based on data in UNCTAD, Review of Maritime Transport 2010.
D. Selected Investment Projects in Maritime Ports
The sharp downturn in international maritime trade that followed the global financial crisis led to
as deferral of many port projects throughout the world. Commenting specifically on plans for container
terminal development, Drewry Shipping Consultants note that:
“The downturn has led to a widespread retrenchment in terms of terminal expansion and
investment. Many projects have been slowed down, or put on hold, while others have been
cancelled. While projecting capacity plans is extremely difficult at present, it is clear that a much
smaller number of investment initiatives are now being taken forward by global operators as many
companies review their strategic direction in view of the changed economic circumstances”.68
More broadly, UNCTAD also comments that “Many port development projects under way in 2009
experienced a slowdown in activity, due to uncertainty about the effects of the global economic crisis and
a fear of creating ports without customers, or so-called ‘white elephants’.”69
While the ESCAP region was not immune from this trend, the dynamism of the leading developing
economies of the region meant that it enjoyed some protection from it. In particular, port development
continued at a comparatively rapid pace in China and India, and in the resource-exporting countries, such as
Australia and Indonesia. Table IV-3 below lists selected port infrastructure in the ESCAP region that are
either in the planning stage, in progress or recently completed. The list is not comprehensive; it is intended
simply to provide a broad indication of the physical scale of the included projects. The information is
compiled from Thomson project finance international and other information gathered by the secretariat.
68
69
Drewry Shipping Consultants, Global Container Terminal Operators: Annual Review and Forecast 2010.
UNCTAD Review of Maritime Transport 2010, UNCTAD Geneva December 2010.
IV. Maritime Ports and Developments in Shipping
63
Table IV-3. Selected port infrastructure projects in the ESCAP region (as of end 2011)
Country
Australia
Selected port infrastructure projects
Port Botany Expansion Project
The Botany expansion is one of the largest port redevelopments undertaken in
Australia. The expansion entails:
O
O
O
O
O
O
O
O
O
Status
Under
Construction
1,850 metres of additional wharf face for five extra shipping berths
60 hectares of reclaimed terminal land
deep water berths with depths of up to 16.5 metres
dredging of approximately 7.8 million cubic metres of fill material to create
shipping channels and berth boxes
dedicated road access to the new terminal area
additional rail sidings to provide rail access to the new terminal area
additional tug berths and facilities
rehabilitation and expansion of Penrhyn Estuary to create a secure estuarine
environment
community facilities including boat ramp, look outs, pathways
Construction is now well advanced and the first berths are expected to be available in
2012.70
Australia
Wiggins Island Coal Export Terminal
Committed
The Wiggins Island Coal Export Terminal (WICET) is major coal export terminal
intended to serve future exports from the Surat and Bowen basins. These coal fields are
situated to the west and south-west of Gladstone in Queensland. The ultimate capacity
of the development is 80 million tonnes per annum. Stage 1, expected to cost
US$AUS 2 billion and provide an export capacity of around 27 million tonnes, is
expected to come online in 2014.
Australia
Port of Gladstone Western Basin Development
The Western Basin at the port of Gladstone has been identified by the Queensland
government as the site at which port facilities for the State’s emerging Liquefied
Natural Gas (LNG) industry will be located. The Basin development involves large
scale dredging and disposal works estimated to cost a total of US$AUD 1.3 billion
(US$ 1.2 billion). Joint venture partners Van Oord and Dredging International
Australia were awarded the first stage of the dredging project, worth an estimated
US$AUD 387 million, in March 2011.
China
Yangshan Port Construction
Under
Construction
In Progress
Due to the difficulty of maintaining water depth of port in Huangpu River, the
Mother River of Shanghai, and rapid growth of container volume, the construction of
a mega-deepwater port became a must for Shanghai. Phase I-III have been completed,
while the fourth phase is expected to be finished in 2015. This will add 4 million TEUs
capacity to the port’s current designed capacity of 9.3 million TEUs. Yangshan’s target
is to have a throughput volume of 15 million TEUs by 2020. By this time, there will be
capacity for 50 container berths and a channel depth of 16 m. The port will also have
an annual handling capacity of 25 million TEU.71
China
Chongqing Container Terminal
Chongqing East Port Container Terminal opened in April 2011 with a forecast annual
throughput of 200,000-250,000 TEU. It is among three container terminals on the
Yangtze River that the municipality wants to develop. Once all phases are completed,
the currently building phase three of its terminal, which will see overall annual
capacity jump to 1.6 million TEU in 2013.
70
71
Sydney Ports Corporation website, www.sydneyports.com.au accessed 14 September 2011.
Yangshan adds depth to planned Shanghai hub, China Daily 4 March 2011.
Planned
64
Review of Developments in Transport in Asia and the Pacific 2011
Table IV-3. (continued)
Country
India
Selected port infrastructure projects
Expansion plan for Chennai
Status
Planned
Chennai Port Trust is progressing plans of constructing a mega 4 million TEU
container terminal on BOT basis. The terminal is likely to cost Rs. 36,860 million out
of which the private developer is expected to invest Rs. 31,250 million while ChPT
will spend Rs. 5,700 million on supporting infrastructure like channel deepening up to
18 m., providing tugs, floating crafts etc.. The port trust plans to commission the
terminal in phases beginning from the 12th Plan period (2012-2017).
Tenders for the project were issued in January 2008. However, concerns about a range
of environmental issues, the quality of road access and over-capacity in the greater
Chennai region have dampened enthusiasm for the project, and none of the seven
short-listed bidders lodged financial proposals by the closing date of January 2011.72
However, the Government has re-affirmed its commitment to the development of
Chennai as a hub port.
India
Kattupali Container Terminal
The Kattupalli Container Terminal (KCT) (25 km north of Chennai) will be operated
and managed by Manila-based International Container Terminal Services Inc. and will
be ready for operations by early 2012. The project has been funded by a joint venture
between Indian construction firm Larsen & Toubro and Tamil Nadu Industrial
Development Corporation. This facility will initially have two berths on a 700 m quay
wall dredged to a depth to 14 m at a cost of US$ 400 million. In the first phase, it is
expected to have capacity to handle over one million TEU a year.73
India
Gopalpur Port Project
The master plan envisages 15-20 berths with three separate harbours to enable
segregation of cargo as needed. The later stages of development would see a 3,500 m.
breakwater for protection of all the harbours. The port will also be able to reclaim land
south of the breakwater and use it for bulk storage.74
Under
Construction
Under
Construction
The first phase of development of Gopalpur Port involved the development of two dry
bulk cargo berths and a break bulk cargo berth. Although the port has been operational
since 2007, it has operated only as a seasonal port. Approval to deepen the approaches
and expand the port to allow year-round operations was obtained in March 2011.
The company has planned to invest Rs. 12.5 million (US$ 265 million). The port will
have an installed capacity of handling at least 12 millions tonnes cargo by 2013 and
aims to increase the capacity to handle 54-60 million tonnes per annum by 2022.
Indonesia
Karawang Port Project
Planned
State owned port operator PT Pelabuhan Indonesia (Pelindo) II has announced plans
for a new port and container terminal to be built in Karawang, West Java. The project
is due to be completed by 2020, and would ease pressure on Tanjung Priok, the
country’s largest port. The Karawang port proposal supersedes earlier plans to build
a new container terminal at Bojonegoro.
Islamic Republic of
Iran
Expansion of Shahid Rejaiee Port
In October 2009, the Government of the Islamic Republic of Iran delegated the third
stage of the development of the container terminal at Shahid Rajaiee Port to Islamic
Republic of Iran Shipping Line (IRISL).
The first two phases of the project have provided an estimated capacity of 5.7 million
TEU at the port. The third phase will involve the construction of 1,450 meters of berth
with a draught of 16 metres for the reception of Post Panamax vessels, dredging of
72
73
74
“No takers for mega container terminal at Chennai port”, Hindu Times, 29 January 2011.
“Wheels in motion”, Containerization International, August 2011.
Gopalpur port website, http://gopalpurports.com l, accessed 18 December 2009.
In Progress
IV. Maritime Ports and Developments in Shipping
65
Table IV-3. (continued)
Country
Islamic Republic of
Iran (continued)
Selected port infrastructure projects
Status
2.5 million cubic metres and preparation of over 83 hectares of storage area, When
completed, the third phase would increase the container capacity of the Shahid Rajaee
Port Complex further to 7.6 million TEUs.
IRISL has committed US$ 500 million to the project.75
Malaysia
Penang Channel Deepening76
In Progress
Penang Port Sdn Bhd is currently deepening its main shipping channel to
accommodate mainline container ships. The RM (MYR) 322 million project was
included in the Ninth Malaysian Plan review, and will increase the depth of the North
Channel to 14.5 metres. The project has suffered significant delays in securing finance
and environmental approvals. However, clearance to proceed was received in June
2011 and the project is now expected to be completed by end 2012.
Pakistan
FAP terminal, Qasim
Completed
Fauji Akbar Portia Marine Terminals (Pvt.) Ltd. was awarded a concession to construct
a grain and fertilizer terminal on a greenfields site in the port of Qasim. The terminal
was officially opened in October 2010. At present, draft at the terminal is limited to
11.5 metres, but the Port of Qasim Authority has made a commitment to deepen the
port to 14 metres, allowing Panamax vessels to be accommodated.77
Singapore
Expansion of Pasir Panjang Terminal
In Progress
Expansion of the port of Singapore is currently centred on the further development of
the Pasir Panjang container terminal. The terminal is currently undergoing a US$ 714
million (US$ 580 million) expansion. The expansion will add 16 berths with an
additional capacity of 14 million twenty-foot equivalent units (TEUs). It will increase
the total capacity of the port to around 50 million TEUs. The expansion is scheduled to
be complete by 2013.78
Sri Lanka
Colombo Port Expansion Project
The Project will expand the container-handling capacity of Colombo Port by
7.2 million TEU in three increments of 2.4 million TEU each. The major project
elements are dredging an approach channel and inner harbour basin west of the
existing harbour, and constructing a breakwater to the west of the existing harbour
sufficient to accommodate three new terminals, which will be constructed sequentially.
In addition the Project includes the establishment of a new marine operations centre,
relocation of an existing submarine oil pipeline near the entrance to the new terminal,
provision of navigational aids, and construction of shore utilities including an electrical
power plant, water mains and storage tanks and a sewage treatment plant.79
Under
Construction
The common user port works are being funded jointly by the Asian Development Bank
and the Sri Lanka Ports Authority, and it is expected that the terminals will be
developed by private operators under a PPP arrangement. However, early attempts to
attract private sector interest, undertaken at the height of the Global Financial Crisis,
were not successful.
75
“IRISL invests US$ 500 M in Shahid Rajaee port development project”, PMO News (supplement to Ports & Maritime
magazine), Sept-Oct 2009, downloaded from website of Ports and Maritime Organization of Iran, http://www.pmo.ir,
16 September 2011.
76
“Dredging works back on track”, The Sun Daily, 27 June 2011. Viewed on The Sun Daily website http://
www.thesundaily.com.my, 17 September 2011.
77
“Pakistan’s first grain, fertilizer terminal to start operations soon”, Daily Post, 24 October 2010, viewed at http://
www.highbeam.com, 17 September 2011.
78
Port of Singapore, Singapore, viewed at the Ship-Technology website, http://www.ship-technology.com, 17 September 2011.
79
Asian Development Bank (ADB) 2007, Proposed Loan: Democratic Socialist Republic of Sri Lanka: Colombo Port
Expansion Project, Report and Recommendation to President and Board of Directors.
66
Review of Developments in Transport in Asia and the Pacific 2011
Table IV-3. (continued)
Country
Selected port infrastructure projects
Sri Lanka
(continued)
The dredging and breakwater works were substantially completed prior to the
beginning of the 2011 monsoon season.80 A BOT agreement has been signed with
China Merchants Holdings (International) Company to develop a 1,200 metres
terminal with a land area of 58 hectares and water depth of 18 metres. The project is
expected to take two phases, with Phase I to be ready for operation by early 2013, and
the entire facility completed by 2016.
Turkey
Yarimca Container Terminal
The Yarimca Container Terminal is being developed by DP World as a greenfield 1.3 m
TEU capacity container terminal near Istanbul. The terminal will have 895 m of berth
on a 45 ha site. The project is being developed in a single phase. DP World has
appointed Haskoning for design consultancy services, and contracts for the civil works
have been awarded to local Turkish companies. The port is expected to open in 2012.81
Viet Nam
Van Phong Port
Status
Under
Construction
Suspended
The Vietnam National Shipping Lines (Vinalines) commenced the construction of
the Van Phong international transhipment port in the central province of Khanh Hoa
in October 2008. As part of a general plan for Vietnam’s seaport system by 2020,
Van Phong port will constitute the only international transhipment port in the country.
Construction of the port will require an investment of more than US$ 3.6 billion. The
project has struck technical and financing difficulties, and work on the project was
suspended in May 2011. However, major investor Vinalines remains committed to the
project.82
Viet Nam
Lach Huyen Container Terminal
Planned
Japanese companies MOL, NYK and Itochu, in a joint venture with Vietnamese
shipping line Vinalines – which is meant to take a 51 per cent stake – to develop the
container terminal in Lach Huyen near Haiphong. The first phase of the terminal will
cost approximately US$ 350 million and will be finished by 2015 and will have an
annual capacity of 850,000 TEU, which is almost half of north Viet Nam’s current
container volumes. Lach Huyen will have a 14 m draft and be able to handle ships of
up to 8,000 TEU. Currently, draft restrictions in North Viet Nam mean that ports
cannot handle vessel of over 1,200 TEU.83
Papua New Guinea
Lae Port Development
The Project is expected to catalyze industrial and commercial development and
promote trade for PNG by relieving a binding constraint of key port infrastructure in
Lae. The core of the Project will be the construction of a tidal basin located at the
north-west of the existing port facilities; construction of a 240 m long wharf capable of
accommodating post-Panamax container vessels; and terminal works including all
buildings, storage, area, roads, drainage, water, electrics, and sewerage services.
Under
Construction
A loan agreement for funding of the project was signed with the Asian Development
Bank in June 2008.84 Tenders were called for the construction of the Tidal Basin, the
wharf and related facilities in early 2011.
80
“Sri Lanka: Colombo Port Expansion Project Makes Progress”, Dredging Today, 28 March 2011, viewed on http://
www.dredgingtoday.com, 17 September 2011.
81
UK Trade and Investment, Sector Briefing: Port Opportunities in Turkey, 2010, dowmloaded from Ministry website
www.ukti.gov.uk, 17 September 2011.
82
“Van Phong Port Construction Halted”, Dredging Today, 25 May 2011, viewed on http://www.dredgingtoday.com,
17 September 2011.
83
“NYK and MOL to ‘invest’ in new Viet Nam port”, Containerization International, August 2010.
84
Loan agreement between the Independent State of Papua New Guinea and the Asian Development Bank, 12 June 2008,
viewed on www.adb.org, 20 December 2009.
V. Dry ports, Intermodal Terminals and Logistics Development
67
V. DRY PORTS, INTERMODAL TERMINALS AND LOGISTICS
DEVELOPMENT
A. Development of Dry Ports and Intermodal Terminals
in the ESCAP Region
For many decades, national transport plans and programmes have tried to address transport demand
by building roads, railway lines and maritime ports that function within individual mode-based frameworks.
However, unimodal approaches sometimes result in lower levels of technical and economic efficiency than
more holistic approaches to transport planning. Today, national and global economic and trade development
policies must consider not only the way in which productive sectors operate but also how their outputs are
distributed rapidly and efficiently to international markets.
Given the significant growth expected in trade to, from and within the ESCAP region, it is
imperative not only that all transport links (including railway, road and waterway) be developed but that the
interfaces between these links – including both seaports and dry ports – be well-located, appropriately
equipped and efficiently operated. At present, countries in Asia are at different stages in developing their
dry ports. Some countries such as China, India, Malaysia, Republic of Korea, Russian Federation and
Thailand have established well functioning dry ports while other countries are still in the early stages of
development. However, even in those countries where dry port development is relatively advanced,
significant further development is likely.
Further efforts could be expended to identify intermodal corridors along the Asian Highway and
Trans-Asian Railway networks offering high intermodal potential. The implementation of these efforts
present a particular challenge born from the fact that in most countries the responsibilities for the
development and implementation of intermodal policies and projects are distributed over many ministries or
agencies dealing each with one specific aspect. A consequence is that related transport policy and resource
allocations are modally oriented with narrowly focused programmes and projects lacking a coherent whole.
Intermodal transport therefore requires a high degree of coordination and cooperation across all
stakeholders, including government agencies and institutions, the private sector of shippers and modal
carriers and the public and various interest groups.
Recognizing the key role of dry ports in facilitating a coordinated approach to an international
integrated intermodal transport and logistics system, the Forum of Asian Ministers of Transport, at its first
session, held in Bangkok in December 2009, requested the secretariat to work towards developing an
intergovernmental agreement on dry ports. Formalizing the development of dry ports through an
intergovernmental agreement would: (a) promote international recognition of dry ports, (b) facilitate
infrastructure investment by attracting strong commitment of member States and increased financing from
international banks and bilateral donors, and (c) define operational services for a more harmonized
approach to the development and operation of dry ports in the region through enhanced collaboration with
the private sector. The ESCAP secretariat is currently developing such an agreement in close consultation
with member states.
Some recent dry port and intermodal facility development initiatives in the ESCAP region are
described below.
Australia
Over the last decade Australia has witnessed a significant growth in interest in intermodal facilities
in both the domestic and international transport supply chains. Several States have unveiled plans for the
development of major new intermodal terminals. For example, in 2006, the Government of the state of New
South Wales endorsed a plan for a new network of intermodal terminals to support the movement of
containers by rail with the aim of increasing the proportion of import and export containers moving in and
out of the Port Botany by rail from 20 per cent to 40 per cent. In 2007, the Government approved Sydney
Ports Corporation’s proposal to develop the disused rail marshalling yard at Enfield as an Intermodal
68
Review of Developments in Transport in Asia and the Pacific 2011
Logistics Centre (ILC). The Enfield site is connected to the port by dual track rail, and the site also has
direct access to Sydney’s key road freight corridors. Site works commenced in 2010, and the Early Works
package, including work associated with the a new vehicular bridge over RailCorp’s New Enfield
Marshalling Yards to connect the ILC Site with Wentworth Street, is due for completion during 2011.85 In
August 2011, the Government announced today that Hutchison Port Holdings (HPH) has been appointed
operator of the terminal.86
Meanwhile, the Moorebank Project Office (MPO) was established within the Department of
Finance and Deregulation to conduct a feasibility study into a proposed IMT at Moorebank. The study is
considering technical, economic, environmental and community factors. Subject to environmental
assessment and Government approval of the proposed Moorebank IMT the staged development of the
facility is expected to commence in 2013.87
Azerbaijan
Azerbaijan has identified the renewal and reconstruction of ports infrastructure (including dry
ports) as a priority in its transport policy, and has endorsed the development of dry ports along its main
international transport corridors as one of the key issues in the creation of international transport
infrastructures. The main dry ports of Azerbaijan that involve rail connections are the dry port at Yalama on
the border with the Russian Federation and the dry port at Boyuk-Kasik on the border with Georgia.
There are also cargo interchange points on border crossings along the Asian Highway network. The Main
Cargo Terminal of Baku Sea Trade Port (Dry Cargo terminal) situated within the boundaries of Baku city
also plays an important role. The Terminal, which has a throughput of 2 million tonnes/year, is served
by 8 kilometres of rail siding of railways of the terminal is 8 km and has 24,000 m2 of open storage and
10,000 m2 of closed warehouse.88
Cambodia
There are many privately owned dry ports in Cambodia, mainly concentrated in and around Phnom
Penh. The most important existing dry ports are:
85
O
So Nguon ICD at Bavet, which operates on seven hectares of land and provides customs
clearance facilities as well as warehousing and container freight station services
O
So Nguon ICD at Phnom Penh, which operates on ten hectares of land and provides a similar
range of services89
O
MSE-KPM ICD at Sangkat Cham Chao, Khan Dangkor, Phnom Penh. The terminal enjoys
good access to Sihanoukville Port, Phnom Penh Port and Phnom Penh International Airport. It
covers an area of almost 10 hectares currently and provides some 10,000 square metres of
warehousing space and 27,000 square metres of storage and container yard.90
O
Tec Srun ICD at Chom Chao on national road 4
O
Olair Dry Port at Chom Chao
O
Teng Lay Dry Port at Chom Chao, which occupies an area of 40,000 square metres91
O
Bok Seng ICD in Phnom Penh
“ILC at Enfield project update”, website of Sydney Ports Corporation, www.sydneyports.com.au, accessed 19 September
2011.
86
Hutchison Port Holdings to Operate Enfield Intermodal Logistics Centre, website of Sydney Ports Corporation,
www.sydneyports.com.au, accessed 19 September 2011.
87
Moorebank Intermodal Terminal Project – Community Update August 2011, Department of Finance website, http://
www.finance.gov.au/, accessed 19 September 2011.
88
Azerbaijan Country Paper, presented to UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along
the Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
89
Songuon Group website, http://www.songuongroup.com accessed 19 September 2011.
90
SKL Group website, http://www.sklgroup.com, accessed 19 September 2011.
91
Teng Lay Transport Group website, http://tenglaytransport.com, accessed 19 September 2011.
V. Dry ports, Intermodal Terminals and Logistics Development
O
CWT Dry Port in Phnom Penh operated by the Port Authority of Sihanoukville.
O
New dry ports are planned for Bavit, Trapeanplong and Poi Pet.92
69
China
The ‘Go West’ policy of moving the locus of economic development to the inland provinces of
China has sparked a renewed interest in intermodalism and Dry Port development in China. One major
initiative to cater for this expansion has been a programme launched by Railway Container Transport Corp.
Ltd. (a subsidiary of the Ministry of Railways) in 2003. The project will see the construction of 18 new
inland hub container handling facilities throughout China through joint venture private partners at a cost of
US$ 1.6 billion. These terminals will form the basis of a transport network composed of approximately
16,000 kilometres of railway by 2020. The terminals, which are planned for completion by 2015, are shown
in Figure V-1.
Figure V-1. Existing and planned major intermodal terminals in China
Medium and Long-Term Railway Planning
Legend
Rail container terminal under operation
Rail container terminal under construction
Existing railway
Planned railways to be constructed
New railway proposals
Source: Ministry of Railways, Government of China.
92
Cambodia Country Paper, presented to UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along
the Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
70
Review of Developments in Transport in Asia and the Pacific 2011
India
India currently has 252 dry ports, operated by private companies, state governments and their
various agencies and by the Container Corporation of India (CONCOR).93 Although the Indian railway
network was opened to 13 new entrants in 2005, CONCOR remains the dominant operator of rail-based
intermodal facilities. Established by the Ministry of Railways to promote containerized transport in India, at
its incorporation, CONCOR inherited the then network of seven ICDs from the Indian Railways and was
charged with their operation. It currently operates a total of 61 dry ports.94
Figure V-2. Container throughput at ICDs operated by CONCOR 1995-2009
3,000,000
2,500,000
TEU
2,000,000
1,500,000
1,000,000
500,000
International
10
-20
11
10
20
20
-20
09
09
-20
08
20
07
-20
08
07
20
06
-20
06
20
-20
05
05
20
-20
04
20
-20
04
03
03
20
-20
02
02
-20
01
20
01
20
00
-20
00
20
-20
99
19
-19
99
98
98
19
-19
97
19
19
96
-19
97
0
Domestic
Source: Website of Container Corporation of India Ltd., 18 September 2011, www.concorindia.com/corebusiness.asp
Figure V-2 shows that the number of containers (TEU) handled by CONCOR has increased
fourfold since 1996-1997. A downturn in volumes due to the impact of the global financial crisis was
experienced in international intermodal container handling in 2008-2009 with an overall drop in intermodal
container volumes from the 2007-2008 level of 2.45 million TEUs to 2.3 million TEUs, but volumes have
since recovered to exceed the previous peak.
Indonesia
In Indonesia, providing high quality transport links to the interior is regarded as essential to the
economic development of these inland areas, and a number of signification dry ports have been established.
Four of these – at Cikarang, Surabaya, Cirebon and Cilegon – are in fact located very close to major
seaports. However, the other four serve areas that do not have direct maritime access. Cikarang, Gedebage,
Cibungur and Solo are rail-based terminals; all of the others are served only by road. Figure V-3 shows the
volume of containers handled at each of the major dry ports in 2008. An additional dry port – the Rambipuji
dry port in East Java – has temporarily ceased operations because of a shortage of traffic.95
93
India Country Paper, presented to UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along the
Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
94
Container Corporation of India Website, http://www.concorindia.com, accessed 18 September 2011.
95
Indonesia Country Paper, presented to UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along the
Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
V. Dry ports, Intermodal Terminals and Logistics Development
71
Figure V-3. Throughput of Indonesia’s major dry ports, 2008
120,000
100,000
TEU
80,000
60,000
40,000
20,000
0
Cikarang Gede Bage Cibungur
Cirebon
Solo
Surabaya
Tonjong
Cilegon
Dry Port
Import
Export
Source: Based on Indonesia Country Paper to Regional UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along the
Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
Islamic Republic of Iran
The Government of the Islamic Republic of Iran has adopted a number of policies in support of the
development of intermodal transport and dry ports, and the first major dry port in Aprin is now in operation.
The Aprin Terminal is located 21 kilometres south western of Tehran at the intersection of East-West and
North-South railways; it is also accessible to a number of highways. It has a total area of 100 hectares.
Current throughput at the terminal is 5,000 TEU. Two other major dry ports are planned to serve designated
special economic zones: a 36 hectare facility in the Salafchegan Special Economic Zone and a 40 hectare
facility in the Sirjan Special Economic Zone.96
Republic of Korea
The National Intermodal Transportation Network Plan (2000-2019) was set up to secure
transportation infrastructure to boost national competitiveness in the 21st century and to build a transport
system that will be sufficient to handle the expected intermodal freight. There are five large-scale inland
container depots that are in operation or under development in the Republic of Korea (Table V-1. These
ICDs are used primarily to distribute trade between the country’s two main ports (Busan and Gwangyang)
and the hinterland. Each of these facilities is connected by rail to both of these ports, and all (except
Yangsan) have, or will be provided with full customs service. The first of these facilities, Uiwang ICD, was
completed in 1993 with funding provided through a Build-Operate-Transfer contract with a private
concessionaire.
96
Islamic Republic of Iran Country Paper, presented to UNESCAP Regional Expert Group Meeting on the Development of
Dry Ports along the Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
72
Review of Developments in Transport in Asia and the Pacific 2011
Table V-1. Inland container handling facilities in the Republic of Korea
Region
Seoul
2010
Jan-Oct 2011
Capacity
(TEU)
753,127
903,000
841,000
1,370,000
Area (sq m)
Location
Uiwang, Kyunggi-do Province
Throughput (TEU)
Busan
Yangsan, Kyungsangnam-do Province
951,940
395,000
250,000
1,400,000
Honam
Jangsung, Chollanam-do Province
520,782
5,700
4,280
340,000
Central
Chungboo, Chungchungbuk-do Province
480,736
3,500
11,290
350,000
Youngnam
Chilgok, Kyungsangbuk-do
456,499
6,600
18,740
330,000
Source: Data provided to UNESCAP by Government of Korea.
Lao People’s Democratic Republic
At present, Lao People’s Democratic Republic has one dry port, the Thanalaeng Warehouse State
Enterprise on the outskirts of Vientiane. With the completion of the rail link from Thanalaeng to Bangkok
and Laem Chabang, there are plans to establish another dry port at the Thanalaeng Railway Station. Dry
ports are also planned for Savannakhet, at the intersection of NR13 and NR9 highways, which will improve
logistics facilities along the Greater Mekong Subregion East-West Economic Corridor; and at Champasack
on NR16, which will facilitate transport on Thailand-Laos-Cambodia-Vietnam route.97
Malaysia
Dry ports have been an important feature of the logistics landscape in Malaysia since the
development of the Sungai Way ICD in conjuction with the containerization of Port Klang in 1973. At
present there are six major facilities operating in Malaysia. The main details of these facilities are shown in
Table V-2 below. Malaysia does not have an explicit national plan for the development of dry ports and
ICDs, and any impetus for further development of the network is expected to come from the private sector.
Table V-2. Dry Ports in Malaysia
Name
Location
Served by
(mode)
Container yard
area (m2)
30,000
Approximate
throughput
(TEU)
Ipoh Cargo Terminal (ICT)
181 km south of Penang Port and
250 km north of Port Klang
Road/Rail
Nilai Inland Port (NIP)
50 km south of Kuala Lumpur and
93 km from Port Klang
Road/Rail/
Inland waterway
Prai ICD
10 km from Butterworth Terminal,
Pinang
Road/Rail
20,000
3,000
Sungai Way ICD
22 km from Port Klang
Road/Rail
30,000
6,000
Padang Besar ICD*
158 km north of Penang Port and
588 km north of Port Klang
Road/Rail
20,000
90,000
Segamat Inland Port (SIP)
212 km south of Kuala Lumpur and
188 km north of Port Tanjung Pelepas
Road/Rail
101,000
c. 1,000
Not known
40,000
4,000
Source: Malaysian Country Paper to UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along the Asian Highway
and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
* Padang Besar ICD does not provide a full range of services – it serves purely as an intermodal facility with transfer of cargo between road and
rail.
97
Lao PDR Country Paper, presented to UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along the
Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
V. Dry ports, Intermodal Terminals and Logistics Development
73
Mongolia
Dry port development plans for Mongolia centre on a small number of facilities serving strategic
economic development zones. The government of Mongolia has identified four key locations: the Zamyn
Uud Free Economic Zone, on the border with China; Samshand Industrial Park; Ulaanbataar; and
Altanbulag Free Trade Zone, on the border with Russian Federation.98 In December 2010, The Asian
Development approved a US$ 40 loan for the development of the Zamyn Uud dry port.99
Nepal
Nepal has several dry ports in the border towns of Birgunj, Bhairahawa, Biratnagar, and Kakarbitta,
which are key land customs points. Birgunj has rail access; the other three facilities are road-based. Another
dry port is being developed at Larcha, near the border with China. The facilities are designed to offer the
complete range of modern infrastructure to facilitate expeditious clearance of import and export cargo
movement by containers.
The Birgunj Dry Port, located at Sirsiya, 4 km west of Birgunj town, is the biggest of the four,
stretching over an area of 38 hectares. It is linked with a broad gauge railway which has a connection to the
seaport in Kolkata via Raxaul. The complex has a railway yard with 6 full length lines. The container
stacking yard has 656 ground slots capable of holding 1,570 TEUs at one time with the possibility of
extensions up to 2,528 TEUs. Figure V-4 shows that throughput at Birgunj has grown strongly since its
inception in 1984, with growth over the last five years averaging nearly 20 per cent per annum.
The Kakarbhitta Dry Port has an area of 7.5 hectares and is reported to be currently handling
80-90 trucks per day.100 The Biratnagar facility is a road-based ICD with a total area of 2.86 hectares. It has
a container yard of 3,700 sq.m. capable of holding 150 TEUs at a time and parking area for around
80 trucks. The Bhairahawa ICD is also a road-based ICD with a total area of 3.6 hectares.
Figure V-4. Throughput at Birgunj Dry Port
20,000
18,000
16,000
14,000
TEU
12,000
10,000
8,000
6,000
4,000
2,000
0
2004-2005
2005-2006
2006-2007
Imports
2007-2008
2008-2009
2009-2010
Exports
Source: Based on data from Himalayan Terminals Pvt. Ltd. website, http://wwe.htpldryport.com, accessed 19 September 2011.
98
Mongolia Country Paper, UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along the Asian
Highway and Trans-Asian Railway Networks, 1-3 November 2010 Bangkok, Thailand.
99
Asian Development Bank, 41192: Regional Logistics Development Project: Project Information Document, accessed on ADB
websire http://www.adb/org, 19 September 2011.
100
Ripak D. Sharma, Kakarbhitta dry port awaits its potential to be tapped, Republica, 13 Novenber 2011, viewed at http://
www.myrepublica.com, 8 December 2011.
74
Review of Developments in Transport in Asia and the Pacific 2011
Thailand
Thailand has one major dry port facility, located at Lat Krabang approximately 30 kilometres east
of the centre of Bangkok. The Lat Krabang ICD was developed in the early 1990s in conjunction with the
development of the new deepwater port at Laem Chabang, and has direct rail connections (as well as good
road connections) with the port. The site, which is owned by the State Railway of Thailand, is divided into
six roughly equal modules, each of which is leased to a private terminal operator. The six modules share
access to a central rail spur. Throughput through Lat Krabang has grown strongly since the facility was
established, reaching nearly 2 million TEU before the downturn in trade brought on by the global financial
crisis.
Uzbekistan
The major dry port facilities in Uzbekistan are:
O
International Logistic Center Navoi: located in the Navoi Free Industrial Zone adjacent to the
Navoi International airport, this facility is designed to facilitate the integration of road, rail and
air transport.
O
International Logistic Center Angren: the Angren centre in Tashkent was commissioned in
2010 and provides a full range of freight forwarding, cargo handling services, container
transportation, storage, customs clearance and certification of goods. It handled an estimated
4 million tonnes of cargo in 2010.
O
International Logistic Center Tashkent: this centre is still under development. It is located
2 km away from Tashkent ring road.
O
Container Terminal Station Chuqursoy: this facility occupies an area of 18.2 ha with a handling
capacity of 460 containers per day. It handled approximately 20,000 containers in 2009.
O
There are also 22 regional ICDs focussed on meeting the needs of export cotton industry.101
B. Logistics Development in the ESCAP Region
The ESCAP region is home to some of the most sophisticated logistics operations in the world,
with Singapore and Hong Kong, China in particular established benchmarks of world’s best practice in
logistics. However, many developing countries in the ESCAP region have yet to address logistics issues in
a coherent way. In many countries in the region the “logistics industry” consists of a fragmented collection
of infrastructure, services, actors, rules and regulations that are administered or managed by independent
ministries, departments, agencies, organizations and companies, each operating in their own “silos”. Even
transportation alone, as one of the key activities in logistics, responsibility for each transport mode often
falls under the jurisdiction of separate agencies. Consequently, investment and development decisions are
based primarily on the needs of the sub-sector with little coordination between the different modes.
Information and communications technology (ICT) infrastructure and software are also crucial
elements in the development of the logistics industry as they can, amongst others, provide information on
the location of goods and inventories, increase efficiency and reduce transactions costs. While individual
companies and transport sub-sectors in some developed countries have established tracking and tracing
systems, no standardized systems are in place that cover all sub-sectors, countries and users. In view of the
modal silo systems that have evolved, it is unlikely that standardization of transport and logistics
information systems will be achieved without policy interventions.
In some countries, a number of issues related to logistics fall under the jurisdiction of state or
provincial governments. Policy measures can include regulation of warehousing and distribution, toll gates
at state borders to collect local taxes, and regulation of farm-to-market supply chains. These practices
impact directly on incomes of farmers, increase losses in the supply chain, impair the quality of produce
and increases the prices paid by consumers.
101
Uzbekistan Country Paper presented to UNESCAP Regional Expert Group Meeting on the Development of Dry Ports along
the Asian Highway and Trans-Asian Railway Networks, 1-3 November 2010, Bangkok, Thailand.
V. Dry ports, Intermodal Terminals and Logistics Development
75
While infrastructure and logistics service providers are the elements that link the supply side of
the logistics industry, institutional arrangements can play a significant role in stimulating the demand side.
In the Republic of Korea, for example, where physical infrastructure and working capital seems to be
less of an issue compared to other countries of the region, it is recognized that the demand for logistics
services can be further stimulated. According to a 2006 survey by the Korea International Trade
Association, small- and medium-sized businesses have a very low level of awareness, knowledge and
information about third-party logistics service provider. 20.9 per cent of survey respondents cited “lack of
knowledge and information about 3PL” for their reason of not acquiring services.
1. Measuring Logistics Performance
In order to measure the quality and level of logistics, several indices have been developed. The
most commonly cited indices are the Logistics Performance Indicator and the “Doing Business Across
Borders”, both developed by the World Bank. The Logistics Performance Index (LPI) summarizes the
performance of countries in six areas that capture the most important aspects of the current logistics
environment, as identified through theoretical and empirical research and extensive interviews with
international logistics professionals:
O
O
O
O
O
O
Efficiency of the customs clearance processes.
Quality of trade and transport-related infrastructure.
Ease of arranging competitively priced shipments.
Competence and quality of logistics services.
Ability to track and trace consignments.
Frequency with which shipments reach the consignee within the scheduled or expected time.
Figure V-5 shows the value of the World Bank Logistics Performance Index for selected ESCAP
economies as well as the average for the region as a whole and for each subregion with ESCAP, and
compares these with the global average value.
The average value of the Index for ESCAP economies was very close to the global average in both
2006 and 2009. But this overall average masks some significant differences between subregions. The East
and North-East Asian subregion rates particularly well, with Japan and Hong Kong, China in particular
acknowledged as being at or very close to world’s best practice. South-East Asia also rates very highly, with
Singapore ranked second only to Germany in the global rankings and Malaysia and Thailand also ranked
highly. The Pacific subregion, taken as a whole, also scores above the world average, because of the high
scores achieved by Australia and New Zealand on the index.
The average for South and South-West Asia fell below the global average in both years, but was
boosted by high scores for two of the subregion’s largest economies. By contrast, in North and Central the
Index was equal to or lower than the world average for all of subregional members in both 2006 and 2009.
However, this subregion achieved the largest improvement in the Index between 2006 and 2009, will every
member of the group recording an improved performance.
A complementary perspective of logistics performance can be obtained from the World Bank’s cost
of Doing Business project. This project monitors the ease of doing business in 183 countries around the
world, looking at a set of nine key factors. Most of these do not relate directly to logistics, but one of them –
the ease of trading across borders – reflects both the success of facilitation measures and the level of
transport costs. The ease of trading across borders is reflected in an index that takes into account:
O
O
O
the number of documents required to import and export
the cost to import and export
the time to import and export.
76
Review of Developments in Transport in Asia and the Pacific 2011
Figure V-5. World Bank Logistics Performance Index – Selected ESCAP economies
World
ESCAP Average
South-East Asia Average
Viet Nam
Thailand
Singapore
Philippines
Myanmar
Malaysia
Lao People’s Democratic Republic
Indonesia
Cambodia
South and South-West Asia Average
Turkey
Sri Lanka
Pakistan
Nepal
Maldives
Islamic Republic of Iran
India
Bhutan
Bangladesh
Afghanistan
Pacific Average
Solomon Islands
Papua New Guinea
New Zealand
Fiji
Australia
North and Central Asia Average
Uzbekistan
Turkmenistan
Tajikistan
Russian Federation
Kyrgyzstan
Kazakhstan
Georgia
Azerbaijan
Armenia
East and North-East Asia Average
Republic of Korea
Mongolia
Japan
Hong Kong, China
China
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
World Bank Logistics Performance Index
2009
2006
Source: Based on data in World Bank, Connecting to Compete – Trade Logistics in the Global Economy: the Logistics Performance Index and
its Indicators, World Bank, Washington 2010.
Figure V-6 shows the ranking given to each of the ESCAP economies included in the reporting set,
grouped by subregion. Singapore and Hong Kong, China rank first and second in the world on this measure.
A number of the other East and North-East Asian and ASEAN economies also rank very highly. Within
these subregions, there appears to be a storng correlation between ranking and level of economic
development, with lower income countries clustered at the lower end of the rankings.
V. Dry ports, Intermodal Terminals and Logistics Development
77
Figure V-6. Relative ease of trading across borders, 2011
Hong Kong, China
Republic of Korea
Japan
China
Mongolia
2
8
24
50
158
Georgia
Armenia
Kyrgyzstan
Russian Federation
Uzbekistan
Azerbaijan
Tajikistan
Kazakhstan
35
82
156
162
169
177
178
181
New Zealand
Australia
Tonga
Marshall Islands
Kiribati
Solomon Islands
Samoa
Papua New Guinea
Micronesia (Federated State of)
Fiji
Palau
Vanuatu
28
29
60
70
83
86
94
96
97
103
121
142
Sri Lanka
Turkey
Pakistan
India
Bangladesh
Islamic Republic of Iran
Maldives
Bhutan
Nepal
Afghanistan
72
76
81
100
112
131
138
161
164
183
Singapore
Thailand
Malaysia
Indonesia
Brunei Darussalam
Philippines
Viet Nam
Timor-Leste
Cambodia
Lao People’s Democratic Republic
1
12
37
47
52
61
63
91
118
170
0
20
40
60
80
100
120
140
160
180
200
Rankings on ease of trading across borders
Source: Based on data downloaded for the World Bank ‘Doing Business’ project website, http://www.doingbusiness.org, downloaded
30 September 2011.
This relationship is not evident within the North and Central Asian subregion. All but two of these
economies are clustered within the bottom quartile of the rankings. (The exceptions are Georgia and
Armenia), and there is no clear relationship between ranking and income level. Pacific Island countries,
with the exception of the developed economies of Australia and New Zealand, are clustered around the
median value, while rankings of South and South-West Asian countries cover a comparatively broad
spectrum, from a ranking of 73 for Sri Lanka to 183 for Afghanistan.
78
Review of Developments in Transport in Asia and the Pacific 2011
These patterns suggest that some caution is required in interpreting these results. While to some
extent the rankings reflect the policies and procedures that are under the control of government, the size and
location of the country also influence the cost and time of exporting. For this reason, the index is more
appropriately interpreted as a measure of the challenges facing an economy in forging links with the
international trading community that as a measure of government performance.
The ‘Doing Business’ project has been tracking the six dimensions of the ease of trading across
borders since 2004. Comparative data for most ESCAP economies is available for 2006 and 2011. Table V-3
shows how performance on these dimesions has changed over this five year period. In most cases, the cost
of importing and exporting has increased. However, in most cases the time required to import and export,
and the number of documents required in each case, has either improved or remained unchanged.
2. Developing a National Logistics Strategy
Some countries in the region have started to take initiatives to put in place policies to guide and
support the development of efficient logistics. For example, the Government of Thailand adopted a national
strategy on logistics (2007-2011). In recent years the National Development and Reform Commission of
China has been leading the development of national logistics policy with participation of seven ministries
and authorities as well as the private sector. In Japan, the Ministry of Economy, Trade and Industry and the
Ministry of Land, Infrastructure and Transport jointly formulated a “Comprehensive Programme of Logistics
Policies (2005-2009)”. In the Republic of Korea, many initiatives have been taken by the Government to
promote the development of logistics. For example, in 1995, the Logistics Facilitation Act was revised and
the Distribution Centre Development Act was passed in order to provide financial incentives to developers.
Among the ways of assisting the industry players to implement more cost effective practices being
pursued by ESCAP and its member countries are the promotion of development of freight forwarder
associations. Indonesia, for example, has established a national logistics blueprint and multimodal
transportation blueprint, while Malaysia is implementing a range of initiatives aimed at supporting
improved freight forwarding practices, such as the establishment of establishing industry standards and
a professional accreditation body for freight forwarders, customs agents, and shipping operators; a National
Logistics Council; and an independent research body, namely, a Supply Chain and Logistics Centre for the
purpose of strengthening rules and regulations on road hauliers, introducing container safety measures;
reviewing licensing policies on road transport; and adopting more liberal employment policies for foreign
experts.102
One of the most significant factors impeding the further development of multimodal transport and
adoption of logistics solutions within the ESCAP region is the limited number of trained personnel
available to the industry. The provision of the full range of freight forwarding and multimodal transport
services requires up-to-date knowledge of a broad range of issues, including regimes of liability and
applicable international conventions, contract law, trading terms, documentary credits, customs procedures
and documentation, quarantine requirements, transport arrangements, packaging and labelling requirements,
dangerous goods codes, and recovery claims and insurance. As well as these operational capabilities, there
is also a need to improve core management capabilities for running small businesses. In addition, due to the
complexity of the tasks and responsibilities assumed by the multimodal transport operator on behalf of
shippers, a thorough knowledge of case law and precedents can help in avoiding unnecessary risks and, in
the case of loss, lead to a speedy and satisfactory resolution of claims.
The general lack of common standards in the region impedes progress of the freight forwarding
industry in development of the operational capacities. As well as supporting freight forwarders through skill
development, it is also important to enhance their professionalism and competitiveness by establishing
minimum standards and codes of conduct for participation in the industry. As suggested by Table V-4
below, research conducted by ESCAP revealed that freight forwarders (as well as NVOCCs and MTOs)
in the Region may be managed by different models of government regulation and licensing or industry
self-regulation.
102
Report of the UNESCAP Regional Forum of Freight Forwarders, Multimodal Transport Operators and Logistics Service
Providers, Bali, Indonesia, 15 July 2010.
V. Dry ports, Intermodal Terminals and Logistics Development
79
Table V-3. Change in ease of trade across borders, 2006-2011
Documents
to export
Time to
export
Cost to
export
Documents
to import
Time to
import
Cost to
import
China
Hong Kong, China
Japan
Mongolia
Republic of Korea
Increased
Decreased
Unchanged
Decreased
Decreased
Increased
Decreased
Unchanged
Decreased
Decreased
Increased
Increased
Increased
Increased
Increased
Decreased
Decreased
Unchanged
Decreased
Decreased
Unchanged
Decreased
Unchanged
Decreased
Decreased
Increased
Increased
Increased
Decreased
Decreased
Armenia
Azerbaijan
Georgia
Kazakhstan
Kyrgyzstan
Russian Federation
Tajikistan
Uzbekistan
Decreased
Unchanged
Decreased
Decreased
Decreased
Unchanged
Unchanged
Unchanged
Decreased
Decreased
Decreased
Decreased
Decreased
Unchanged
Unchanged
Decreased
Increased
Increased
Decreased
Increased
Increased
Increased
Increased
Increased
Unchanged
Unchanged
Decreased
Decreased
Decreased
Unchanged
Decreased
Unchanged
Decreased
Decreased
Decreased
Decreased
Decreased
Unchanged
Unchanged
Decreased
Increased
Increased
Decreased
Increased
Increased
Increased
Increased
Increased
Australia
Fiji
Kiribati
Marshall Islands
Micronesia (Federated State of)
New Zealand
Palau
Papua New Guinea
Samoa
Solomon Islands
Tonga
Vanuatu
Increased
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Decreased
Decreased
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Increased
Increased
Decreased
Increased
Increased
Increased
Decreased
Increased
Decreased
Decreased
Increased
Decreased
Decreased
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Decreased
Decreased
Unchanged
Unchanged
Unchanged
Unchanged
Decreased
Unchanged
Unchanged
Unchanged
Decreased
Unchanged
Increased
Increased
Decreased
Increased
Increased
Increased
Decreased
Increased
Unchanged
Decreased
Increased
Decreased
Afghanistan
Bangladesh
Bhutan
India
Islamic Republic of Iran
Maldives
Nepal
Pakistan
Sri Lanka
Turkey
Increased
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Increased
Decreased
Increased
Decreased
Unchanged
Decreased
Decreased
Unchanged
Decreased
Decreased
Decreased
Decreased
Increased
Increased
Increased
Increased
Increased
Increased
Increased
Decreased
Increased
Increased
Increased
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Decreased
Decreased
Decreased
Decreased
Unchanged
Decreased
Decreased
Increased
Unchanged
Decreased
Decreased
Decreased
Increased
Increased
Increased
Decreased
Increased
Increased
Increased
Increased
Increased
Increased
Cambodia
Indonesia
Lao People’s Democratic Republic
Malaysia
Philippines
Singapore
Thailand
Timor-Leste
Viet Nam
Increased
Unchanged
Decreased
Unchanged
Unchanged
Unchanged
Decreased
Unchanged
Unchanged
Decreased
Decreased
Decreased
Unchanged
Decreased
Unchanged
Decreased
Unchanged
Decreased
Decreased
Increased
Increased
Increased
Decreased
Increased
Decreased
Increased
Increased
Decreased
Unchanged
Decreased
Unchanged
Unchanged
Unchanged
Decreased
Unchanged
Decreased
Decreased
Unchanged
Decreased
Unchanged
Decreased
Unchanged
Decreased
Unchanged
Decreased
Increased
Decreased
Increased
Increased
Decreased
Increased
Decreased
Increased
Increased
Economy
Source: Based on data downloaded for the World Bank ‘Doing Business’ project website, http://www.doingbusiness.org, downloaded
30 September 2011.
80
Review of Developments in Transport in Asia and the Pacific 2011
Table V-4. Government regulations and industry self regulations for
freight forwarders
Government
regulations
Industry self
regulations
Bangladesh
Yes
Yes
China
Yes
Yes
Indonesia
Yes
Yes
Republic of Korea
Yes
Yes
Philippines
Yes
Yes
India
No
Yes
Country
Lao People’s Democratic Republic
No
Yes
Myanmar
No
Yes
Singapore
No
Yes
Sri Lanka
No
Yes
Thailand
No
Yes
ESCAP is currently working to develop a draft code of conduct, as well as minimum standards for
staff qualifications and numbers. ESCAP’s research suggested that when choosing a model, the level of
economic development and the maturity of the industry, the legal regime, and the national industry policies
need to be taken into consideration. It was also suggested that it is desirable for a country to set up an
integrated government agency in managing freight forwarders, NVOCCs and MTOs. However, if different
government authorities are in charge of different types of operators, coordination among them needs to be
promoted.
VI. Facilitating Transport Across Borders
81
VI. FACILITATING TRANSPORT ACROSS BORDERS
A. Implementation of International Conventions and Agreements Relating to
Transport Facilitation and the Movement of Goods
and Services across Borders
International trade has played an increasingly prominent role in driving economic growth around
the world, and in the Asia and Pacific region in particular. While recognising the importance of
infrastructure, however, it is now widely accepted the institutional and regulatory rules governing the
movement of goods and people across borders have an equal if not bigger influence on international
transport. For the road transport sector, for example, the smooth and efficient flow of transport requires the
harmonization of a number of elements:
O
infrastructure planning standards and signage.
O
rules on access to the transport market and the right to conduct transport operations.
O
technical insurance and customs regulations relating to the means of transport (trucks, trailers,
et cetera).
O
driver licensing standards and visa requirements.
O
customs and quarantine rules governing the movement of cargo.
O
traffic rules.
Broadly speaking, measures to address issues such as those listed above are grouped together as
trade and transport facilitation issues. Many international organizations have promoted international
conventions and agreements as a means to harmonize the rules regulating international movement of goods.
For example, international transport conventions and agreements such as those developed under the
auspices of the United Nations Economic Commission for Europe (UNECE) have focused on the transportrelated aspects of the movement of goods and people, such as cross-border movement of vehicles, goods,
transit fees, and visas for drivers. Most subregional agreements which were subsequently developed under
the auspices of subregional organizations and groupings contain the same principles or refer to the
international transport conventions, particularly those relating to road transport.
Recognizing that the harmonization of certain rules governing the international movement of goods
by road and rail could contribute to international trade by reducing time and costs, the ESCAP Commission
adopted Resolution 48/11 on “Road and rail transport modes in relation to facilitation measures” in 1990.
This resolution recommended that ESCAP member countries consider the possibility of acceding to the
following seven core international conventions relating to transport facilitation:
O
Convention on Road traffic (Vienna, 8 November 1968)
O
Convention on Road Signs and Signals (Vienna, 8 November 1968)
O
Customs Convention on the International Transport of Goods under Cover of TIR Carnets
(TIR Convention) (Geneva, 14 November 1975)
O
Customs Convention on the Temporary Importation of Commercial Road Vehicles (Geneva,
18 May 1956)
O
Customs Convention on Containers (Geneva, to December 1972).
O
International Convention on the Harmonization of Frontier Control of Goods (Geneva,
21 October 1982) and
O
Convention on the Contract for the International Carriage of Goods by Road (CMR) (Geneva,
19 May 1956).
82
Review of Developments in Transport in Asia and the Pacific 2011
Table VI-1 provides an update of the status of accession by ESCAP member states. Although there
has been some progress since resolution 48/11 was adopted, the legal and institutional harmonization at the
level expected has yet to be achieved. A review undertaken by ESCAP in 2006 identified several key
obstacles to the effective implementation of the resolution and recommended a new strategy to support
further progress. The review also recommended the inclusion of three additional facilitation conventions:
O
Protocol to the Convention on Contracts for the international carriage of goods by road, 1978.
O
International Convention on the Simplification and Harmonization of Customs Procedures, as
Amended (revised to Kyoto convention), 1973.
O
Convention on Temporary Admission (Istanbul Convention), 1990.
Table VI-1. Status of accession of ESCAP Regional Members to the International Conventions listed
in Commission resolution 48/11, as of 30 November 2011
Country or area
Convention
on Road
Traffic
(1968)
Convention
on Road
Signs and
Signals
(1968)
Customs
Convention
on the
International
Transport
of Goods
under
Cover of TIR
Carnets
(1975)
Customs
Convention
on the
Temporary
Importation
of
Commercial
Road
Vehicles
(1956)
x
E
E
x
Customs
International Convention
Convention
Convention
on the
on
on the
Contract
Containers Harmonization
for the
(1972)
of Frontier International
Controls of
Carriage
Goods
of Goods
(1982)
by Road
(CMR)
(1956)
Group I: Mainland Asia
Afghanistan
Armenia
Azerbaijan
Bangladesh
Bhutan
Cambodia
China
Democratic People’s
Republic of Korea
Georgia
India
Islamic Republic
of Iran
Kazakhstan
Kyrgyzstan
Lao People’s
Democratic Republic
Malaysia
Mongolia
Myanmar
Nepal
Pakistan
Republic of Korea
Russian Federation
Singapore
Tajikistan
Thailand
Turkey
Turkmenistan
Uzbekistan
Viet Nam
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
x
x
x
x
E
E
x
E
x
x
E
E
E
E
E
E
E
E
E
x
S1
x
x
S
x
x
x
E
x
E
E
E
x
x
x
E
S
E
S
E
E
E
E
E
x
E
E
E
E
x
E
E
E
E
E
E
E
VI. Facilitating Transport Across Borders
83
Table VI-1. (continued)
Country or area
Convention
on Road
Traffic
(1968)
Convention
on Road
Signs and
Signals
(1968)
Customs
Convention
on the
International
Transport
of Goods
under
Cover of TIR
Carnets
(1975)
S
S
x
x
x
Customs
Convention
on the
Temporary
Importation
of
Commercial
Road
Vehicles
(1956)
Customs
International Convention
Convention
Convention
on the
on
on the
Contract
Containers Harmonization
for the
(1972)
of Frontier International
Controls of
Carriage
Goods
of Goods
(1982)
by Road
(CMR)
(1956)
Group II: Island countries
Brunei Darussalam
Indonesia
Japan
Maldives
Philippines
Sri Lanka
x
Source: http://treaties.un.org/Pages/Treaties.aspx?id=11&subid=A&lang=en http://www.unece.org/trans/conventn/legalinst.html,
Notes: x acceded before adoption of ESCAP Commission Resolution 48/11.
E acceded after adoption of ESCAP Commission Resolution 48/11.
S signature.
1
The Republic of Korea acceded to the Convention on Road Traffic (1949), while it remains as a signatory of the new version of the convention
(1968).
The facilitation of transport is also connected to the broader issue of the liberalisation and
facilitation of trade. On the one hand, it can be argued that trade liberalisation agreements give meaning and
urgency to transport facilitation agreements, especially as these relate to the carriage of goods. In some
cases trade liberalization measures also lead directly to improved transport performance: for example, those
measure which liberalise the trade in transport services. Trade facilitation agreements, such as agreements
to simplify customs procedures, also have an impact on transport movements across borders; they not only
lower the cost of preparing and processing customs documentation, but also reduce the time that cargoes
spend in transit.
The agreements negotiated under the World Trade Organization have both a direct and indirect
bearing on the rules and regulations governing the movement of freight across borders. The General
Agreement on Trade in Services (GATS), negotiated under the Uruguay Round, is the first multilateral set
of legally binding rules for international trade in services. Under GATS, trade in services is subdivided into
economic sectors, including transport, and each sector is characterized by four modes of supply:
O
Mode 1 – cross-border supply (services supplied from one country to another – for example,
international telephone calls);
O
Mode 2 – consumption abroad (consumers or firms making use of a service in another country
– for example, tourism)
O
Mode 3 – commercial presence (a foreign company setting up subsidiaries or branches to
provide services in another country – for example foreign banks setting up operations in
a country); and
O
Mode 4 – presence of natural persons (individuals travelling from their own country to supply
services in another – for example, fashion models or consultants).103
The GATS commits member governments to undertake negotiations on specific issues and to enter
into successive rounds of negotiations to progressively liberalize trade in services. Services negotiations
103
World Trade Organization, “Discussion Paper on the Environmental Effects of Services Trade Liberalization (WT/CTE/W/
218)”, October 2002, viewed on the WTO website on 26 November 2007 at http://www.wto.org/english
84
Review of Developments in Transport in Asia and the Pacific 2011
started officially in early 2000 under the Council for Trade in Services. Progress has been erratic, with
several periods during which negotiations have effectively stalled, partly because of linkages between
negotiations of services and negotiations in other particularly intractable areas – notably agriculture and
more recently, reduction in carbon dioxide emissions.104 In a report to the Trade Negotiations Committee of
the WTO in April 2011, the Chairman of the Negotiating Committee summarised progress in the following
terms:
“While Members have intensified their engagement in the negotiations as of January 2011, gaps
remain. Limited progress has been achieved in the market access negotiations since July 2008. On
domestic regulation, recent intensification of negotiations has produced notable progress, even if
disagreement persists on important and basic issues. On GATS rules, while technical work
continues, there does not seem to be any convergence regarding the expected outcome in any of the
three negotiating subjects (safeguards, government procurement and subsidies). On the
implementation of LDC modalities, while Members support a waiver permitting preferential
treatment to LDCs, disagreements continue, mainly regarding the scope of the waiver, and rules of
origin for services and service suppliers.”105
The generally mixed outcome of the negotiations on trade in services extends to areas that relate
more specifically to services related to transport and logistics. The state-of-play in four such areas, as
described in the Chairman’s report, is summarised in the Table VI-2 below.
Table VI-2. Summary of GATS progress on matters related to transport and logistics, 2011
Service Type
Summary of Progress
Air transport
Some improvements of existing offers had been indicated at the plurilateral meeting in March 2011,
notably in the sub-sectors of aircraft maintenance and repair, selling and marketing, and computer
reservation services. On ground handling services and airport operation services, some Members
indicated that they would take commitments. Other Members considered that these two sub-sectors
were not covered by the Annex and, therefore, they would not consider offering any commitments. In
sum, gaps still remained between the request and the offers tabled and signals given.
Maritime transport
13 of the 25 recipients had made positive indications at the Signalling Conference in 2008 or during
bilateral and plurilateral meetings, but no recipient had fully met the plurilateral request. Although
some recipients and co-sponsors had taken positive steps towards meeting the plurilateral request, it
was felt that significant gaps remained and further efforts to meet the level of ambition of the request
were needed.
Distribution services
In the lead-up to the 2008 Signalling Conference, 12 of the 27 recipients (including the eight
co-sponsors) had indicated that they would consider further improvement to their offers in response to
the request. However, a sizable gap remained between the request’s ambition as well as autonomous
market openings and the offers and signals of recipients. No recipient had offered commitments for all
sub-sectors included in the request. Regarding the specific request for the removal or easing of foreign
equity caps, only 12 recipients had indicated not to have any equity caps and only one recipient
signalled easing of existing caps. While welcoming progress, co-sponsors believed that it was
important to at least bind current autonomous liberalization.
Logistics services
About one half of the 41 recipients of the request (including co-sponsors) had given positive signals in
respect of certain logistics services at the Signalling Conference in 2008. While there were relatively
more positive signals on “other related services”, few were given in “core freight logistics services”
and “management consulting and related services”, and only a few positive indications were provided
regarding rail and road freight transportation services. Significant gaps persisted between recipients’
offers or indications and the request.
Source: Based on report of Ambassador Fernando de Mateo, Chairman of the Negotiating Committee on Trade in Services, Report to the Trade
Negotiations Committee, 21 April 2011.
104
Timeline on progress of GATS negotiations, World Trade Organization website, http://www.wto.org, accessed 19 September
2010.
105
Ambassador Fernando de Mateo, Chairman of the Negotiating Committee on Trade in Services, Report to the Trade
Negotiations Committee, 21 April 2011.
VI. Facilitating Transport Across Borders
85
In addition to the liberalization of trade in services, the World Trade Organization has actively
promoted trade facilitation. The WTO’s work on trade facilitation complements that of many other
international organizations – such as World Customs Organization, the United Nations Centre for Trade
Facilitation and Electronic Business (UN/CEFACT), OECD, UNCTAD, the World Bank, regional
commissions, and private sector. The work of these actors not have the binding force of WTO
commitments, but consists of facilitation of agreements, development of recommendations, preparation of
conventions, articulation of standards, and technical assistance projects. Critically, they are crucial to the
“practical implementation of trade facilitation reforms, as they provide practical solutions, allow for the
exchange of experiences, and develop harmonized approaches”.106
Despite the many difficulties hampering the conclusion of the current Doha Round, therefore, some
observers have noted that there has been some progress in the area of trade facilitation.107 At the centre of
the negotiations are the level of obligation and the level of precision that the new rules will have, as well as
their overall coherence. In general, the language of the negotiating text is non-prescriptive, expressed in
“best endeavour” terms rather than binding commitments. This is attributed partly to uncertainty on the part
of developing countries on the concerns about implementation, and also by issue linkage between the
negotiations on trade facilitation and the Doha Round’s other negotiating areas.108
B. Subregional Approaches to Transport Facilitation
In a move that has paralleled the growth of Preferential Trade Agreements, the number, magnitude
and extent of subregional cooperation initiatives and organizations have increased significantly over the
past 20 years. Most new initiatives involved only a handful of countries at a time. The result of these trends
is a “hub-and-spoke” system of agreements and programmes. For example, the International North-South
Transport Corridor (INSTC) founding members were India, the Islamic Republic of Iran and the Russian
Federation, and BIMSTEC links a subset of members of SAARC with a subset of members of ASEAN.
The conclusion of these agreements and initiatives, however, has sometimes lead to the
establishment of different legal and operating regimes for the inter-subregional movements of goods,
vehicles and passengers. These differences can act as physical and non-physical barriers to smooth and
efficient transport between subregions. As a result, these subregions can effectively become “isolated
islands” with little land transport and trade to and from other subregions.109
A recent ESCAP report on “Regional Cooperation for Facilitation of International Road Transport”
notes that while many subregional agreements relating to transport facilitation have been developed over
the past two decades, “many of the subregional agreements took years to negotiate and also years to
complete the legal process for entry into force after conclusion of the negotiation”.110 The report expresses
confidence that for most comprehensive subregional facilitation agreements, focus will move from
negotiation to implementation in the next five to ten years, but draws attention to the significant challenges
that will be faced in operationalizing these agreements. In particular, the geographical overlap of the
subregional agreements, combined with their differing terms and conditions, may create legal conflicts – for
example in the adoption of international conventions.
Furthermore, partly as a consequence of the slow development of regional and subregional
agreements, a large number of bilateral agreements now underpinned the international movement of road
freight in the ESCAP region. Many countries have signed more than ten, and some over 40, bilateral
agreements on road transport. The same report notes that “[formulation management and implementation of
106
UNCTAD, p. 135.
According to UNCTAD, “the WTO negotiations on trade facilitation are now in their sixth year and are widely described as
an area of the Doha Round in which tangible progress has been made.” UNCTAD, Review of Maritime Transport 2010,
UNCTAD, Geneva, p. 134.
108
UNCTAD, loc. cit.
109
ESCAP, Emerging issues in transport: Connecting subregional transport networks, paper prepared for the Expert Group
Meeting on Preparations for the Ministerial Conference on Transport, Bangkok, 14 and 15 July 2011 (TD/EGM.1/2011/12).
110
ESCAP, Report of Study on Regional Cooperation for Facilitation of International Road Transport, prepared for Regional
Meeting on Cooperation for Facilitation of International Road Transport, 30 May – 1 June 2011, Beijing, p. 21.
107
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Review of Developments in Transport in Asia and the Pacific 2011
the numerous agreements represents a challenge for governments, inspectors, carriers and drivers”, and
recommends the development of a “standardized structure or template the model clauses further bilateral
agreements on international road transport… [which would]… help to reduce the differences between the
bilateral agreements and to better align it with international conventions and subregional agreements”.111
The current status of transport facilitation initiatives under selected subregional organizations is
described below.
1. Shanghai Cooperation Organization (SCO)
The Shanghai Cooperation Organization (SCO) was formed from regular Summit Meetings
between China, Kazakhstan, Kyrgyzstan, the Russian Federation and Tajikistan which aimed primarily to
promote cooperation, regional and global peace, security and stability. In 2001, the Prime Ministers of the
SCO members signed a Memorandum of Understanding (MOU) on Fundamental Goals and Directions of
Regional Economic Cooperation and Kick-off of the Process for Facilitation of Trade and Investment
between the Governments of Members of the Shanghai Cooperation Organization. The MOU specifically
noted the potential of transit transport with effective utilization of the existing transport and communication
infrastructure, and the opportunity to realize facilitation of trade and investment through ensuring legal,
economic, organizational and other conditions for goods and passenger transport (including transit
transport).112 The Charter of the Shanghai Cooperation Organization, which was signed at the Second SCO
Summit Meeting, also underlined the need for the improvement of transit potential of member countries
with effective utilization of existing transport infrastructure.113
In September 2003, the Prime Ministers of the SCO members approved the Programme of
Multilateral Economic and Trade Cooperation of the Shanghai Cooperation Organization Members during
their meeting at Beijing, China. The programme includes cooperation in utilization and further development
of transport as one of the essential tasks, and utilization of existing transport infrastructure and common use
of potential of transit transport as priority areas. The Prime Ministers’ Meeting in Beijing also issued
a communiqué, which stated that the Prime Ministers of the six countries advocate that the SCO members
should further strengthen cooperation in transport, improve transport infrastructure, coordinate transit
transport policies, establish international transport corridors and formulate relevant multilateral
instruments.114
In June 2008, Kyrgyzstan hosted the eighth meeting of experts from the SCO member states on the
preparation of the draft Agreement on road transportation facilitation. During the negotiations, the parties
reached a united position on all the articles of the Agreement and expressed hope for the earliest possible
formulation of Addenda to the Agreement after its initialling. This was followed by the fourth Meeting of
the Ministers of Transport of the Member States of the Shanghai Cooperation Organization in 2009. The
Ministers noted significant progress in transport cooperation of the member states which had played
a positive role in developing economic cooperation in the SCO region. These included SCO pilot projects in
the field of transport, such as the China-Kyrgyzstan-Uzbekistan motorway and E-40 route, as well as other
important projects of regional transport cooperation, including the construction of Tajikistan-Uzbekistan
motorway. The Ministers particularly noted the completion of the draft framework Agreement among the
governments of the SCO member states on international road transportation facilitation. The experts were
instructed to continue their work in preparing the relevant Appendices to the draft Agreement.
A series of meetings has subsequently been held to finalise the text of the main agreement on the
Agreement on the Facilitation of International Road Transport, and the negotiation of the operational
annexes to the agreement. The third and most recent negotiating meeting was held in September 2011 in
Shanghai. The parties to the agreement are considering multilateral transport permit that “would be
111
ibid, p. 25.
Articles 1, 2 and 3, Memorandum of Understanding on Fundamental Goals and Direction of Regional Economic Cooperation
and Kick-off of the Process for Facilitation of Trade and Investment between the Governments of Members of the Shanghai
Cooperation Organization, Almaty, Kazakhstan, 14 September 2001.
113
Article 3, Charter of the Shanghai Cooperation Organization, Saint Petersburg, Russian Federation, 7 June 2002.
114
Paragraph 5, Joint Communiqué on the Meeting of the Prime Ministers of the Shanghai Cooperation Organization Members,
Beijing, China, 23 September 2003.
112
VI. Facilitating Transport Across Borders
87
centrally issued and distributed and issued to transport operators by national issuing authorities. Initially it
would be valid for a single trip within one year of issuance. Quotas will be decided annually by a joint
committee of the contracting parties”.115
2. Greater Mekong Subregion (GMS)
Cross Border Transport Agreement (CBTA)
Historically, the Greater Mekong Subregion (GMS) has faced inconsistent and difficult border
crossing formalities and procedures, restrictions on entry of motor vehicles, restrictive visa requirements,
and different standards on vehicles and drivers across countries. The Agreement for the Facilitation of the
Cross-Border Transport of Goods and People in the Greater Mekong Subregion (GMS CBTA) was signed
by the Lao People’s Democratic Republic, Thailand and Viet Nam on 26 November 1999. Subsequently it
was acceded to by Cambodia on 29 November 2001; by China on 3 November 2002; and by Myanmar on
19 September 2003.116 The agreement is a 10-year development strategy that aims to facilitate the cross
border movement of people and goods.117
The GMS agreement attempts to harmonize these procedures and reduce the non-physical barriers
of cross-border freight movement. Lao People’s Democratic Republic and Viet Nam were the first two
countries to implement the GMS agreement. The initial stage saw the Lao Bao border gate in Huong Hoa
district and central Quang Tri Province commence single window and single stop inspections.
Representatives of the Governments of Lao People’s Democratic Republic and Viet Nam signed
a memorandum of understanding on initial implementation of the GMS agreement at the two border gates
and are continuing to negotiate the remaining annexes and protocols of the agreement. As a result of this
initial signing, the time required for cross border procedures and transport costs has been cut.118
The East-West corridor linking Lao People’s Democratic Republic, Myanmar, Thailand and Viet
Nam previously allowed most trucks to move freely across the Lao-Thai border. However, any movements
further inside the countries were restricted to the border areas. Because of the absence of inland container
depots near the border, Lao goods are brought across the border as loose cargo, transferred to Thai trucks,
and transported to the port where they are loaded into containers. The implementation of the GMS
agreement is an attempt to reduce the above barriers by creating a streamlined process of transit through
this corridor. Initial Memoranda of Understanding were signed for Mukdahan-Savannakhet (July 2005) and
Lao Bao-Dansavanh (March 2007).
With financial and technical assistance from the Asian Development Bank, the GMS countries
drafted, negotiated, and finalized a set of annexes and protocols to articulate the detailed commitments
required to operationalize the CBTA. These annexes and protocols were prepared in consultation with other
relevant agencies, such as ESCAP and the United Nations Economic Commission for Europe (ECE) to
ensure that they were in conformity with the substantive provisions of relevant international conventions.
By 2010, formalization of the agreement was complete, with the main gaps in the ratification process
confined to two GMS countries: Thailand has ratified only 11 of 20 annexes and protocols, while Myanmar
has yet to ratify any.
However, there is still a considerable way to go before the CBTA is fully effective. Progress on the
exchange of traffic rights in particular has been slow. At present, traffic rights under the CBTA have been
granted only for operations on a small number of the designated corridors and are limited in number. This
constrains and increases cost of delivery of the goods to their final inland destination. Bilateral exchange
of traffic rights has been adopted by Viet Nam and Lao People’s Democratic Republic, Cambodia and
Thailand, Cambodia and Viet Nam. The GMS Customs Transit and Temporary Admission System does not
yet function as intended and utilization is low.
115
ESCAP, Report of Study on Regional Cooperation for Facilitation of International Road Transport, Regional Meeting on
Cooperation for Facilitation of International Road Transport, 30 May – 1 June 2011, Beijing, China, p. 36.
116
Study of transit charges to be assessed under Protocol 2 of the Agreement for the facilitation of the Cross Border Transport of
Goods and People in the Greater Mekong Subregion, November 2004.
117
http://www.johannesburgsummit.org/html/prep_process/national_reports-/cambodia_natl_assess.pdf
118
Viewed on VOV Radio News, 2005, http://www.vov.org.vn
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Review of Developments in Transport in Asia and the Pacific 2011
Strategic Framework for Connecting GMS railways
Because the major cross-border activity in the GMS region was road-based, the initial focus of
transport facilitation activity was on the facilitation of road transport. However, more recently cross-border
rail operations have been gaining increased priority. The 16th GMS Ministerial Conference held in Hanoi in
2010 sought to address this need by endorsing a Strategic Framework for Connecting GMS Railways. The
Fourteenth Meeting of the GMS Subregional Transport Forum, held in Nanning, China, with the theme
“Next Generation of Transport Connectivity in the GMS”, focused on revisiting the recommendations
endorsed by the Ministerial Conference, and trying to translate these into a plan of action.
The Strategic Framework identified five key priority actions:
O
Ensuring that all GMS countries are connected to a rail network by 2020
O
Promoting development of a seamless rail network by:
– agreeing on technical standards of interoperability
– streamlining and harmonizing procedures for cross-border movement of people and goods
O
Ensuring that railway infrastructure and equipment are modern and sufficient to meet the
demand for rail services
O
Supporting the development of GMS railway organizations and the implementation of best
practice in the operation and regulation of GMS railways
O
Involving the private sector in the planning and development of the GMS railway network119
The Strategic Framework is a significant first step toward the development of an integrated GMS
railway system, which is a key element of the multimodal transport connectivity envisioned for the
subregion. It was also announced in the meeting that ADB would provide technical assistance (TA) to help
set up and prepare a detailed business and financing plan for a GMS Railway Coordination Office (RCO),
a key recommendation of the Strategic Framework. The RCO will help ensure that GMS countries’ railway
plans and broad activities are coordinated and that all stakeholders are engaged in the future development of
GMS railways.120
3. IGC-TRACECA
The Basic Multilateral Agreement (MLA) on International Transport for the Development of the
Transport Corridor Europe-Caucasus-Asia routes, and its technical annexes were signed by Armenia,
Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine
and Uzbekistan, on 8 September 1998. The Islamic Republic of Iran acceded to the MLA in 2009. The
MLA aims at:
119
O
developing economic relations, trade and transport communications in the regions of Europe,
Black Sea, the Caucasus, the Caspian Sea and Asia,
O
facilitating access to the international market of road, air and railway transport and also
commercial maritime navigation,
O
facilitating international transport of goods and passengers and international transport of
hydrocarbons,
O
ensuring traffic safety, security of goods and environment protection,
O
creating equal conditions of competition between different types of transport.121
ABD, Connecting GMS Railways: A Strategic Framework, Mandaluyong City, Philippines: Asian Development Bank, 2010.
Greater Mekong Subregion Economic Cooperation Project, Fourteenth Meeting of the GMS Subregional Transport Forum,
Nanning, Guangxi Zhuang Autonomous Region People’s Republic of China, 2-3 December 2010, Summary of Proceedings.
121
Basic Multilateral Agreement (MLA) TRACECA, viewed on TRACECA website, http://www.traceca-org,org, 20 September
2011.
120
VI. Facilitating Transport Across Borders
89
In July 2008, the TRACECA Legal Working Group developed a Draft Agreement on the
development of Multimodal Transport, with the objective of harmonising the relevant legislation of member
countries to provide a unified legal framework based on a consistent set of definitions and concepts.
The Working Group has also developed a draft Model National Law on Freight Forwarding Activity.122 On
16 June 2009, the 7th Meeting of the Intergovernmental Commission TRACECA the MLA Parties adopted
the Agreement on Development of Multimodal Transport TRACECA. The agreement commits the parties
to the agreement to endeavouring to harmonize their legislation to implement a unified legal framework for
multimodal transport development using the definitions and based on the concepts based in the
Agreement.123
To further progress the objectives of the MLA, The IGC-TRACECA has developed and adopted
a formally articulated strategy. This strategy identifies seven key focus areas for TRACECA through to
2015:
O
O
O
O
O
O
O
Strengthening and modernising the institutional dimensions of transport
Integration and cohesion of infrastructure networks
Development of sound multimodal chains
Exploiting the full potential of air transport and boosting air passenger traffic
Making transport within TRACECA safe, secure and sustainable
Secure funding solutions
Supporting the strategy by strengthening IGC-TRACECA.124
4. Economic Cooperation Organization (ECO)
The members of the Economic Cooperation Organization (ECO), namely, Afghanistan, Azerbaijan,
the Islamic Republic of Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and
Uzbekistan, signed the Transit Transport Framework Agreement (TTFA) on 9 May 1998. In 2002, ECO
undertook a reconciliation of the inconsistencies between the agreement and the Transit Trade Agreement
signed on 15 March 1995.125 The Transit Transport Coordination Council (TTCC) conducted several
meetings between 2006-2007 to finalize modalities for establishment of ECO Fund for implementation of
TTFA. The Transit Transport Framework Agreement (TTFA) entered in to force in May 2007.
The main purposes and objectives of the TTFA and its Annexes are:
O
to facilitate the movement of goods, luggage and passengers through the respective territories
of the Contracting Parties and provide all necessary facilities for transit transport under the
provisions of this Agreement.
O
to ensure the safety of goods, luggage and passengers and avoidance of unnecessary delays
during the transit traffic through territories of Contracting Parties;
O
to cooperate and coordinate the efforts of the Contracting Parties to avoid the incidence of
customs frauds and tax evasion and harmonizing necessary administrative affairs dealing with
transit traffic.
At the Third Meeting of TTCC, the Council decided that the joint ECO/IRU/UNECE regional
workshop for capacity building on international conventions mentioned in the TTFA, should consider
development of a roadmap for implementation of the relevant conventions, in particular the TIR
convention, in the ECO region. UNESCAP and other relevant international organizations should be invited
122
Central Asia Transport website, http://www.centralasiatransport.com, viewed 31 December 2009.
TRACECA, Agreement on Multimodal Transport, downloaded from TRACECA website, http://www.traceca-org.org,
20 September 2011.
124
TRACECA, Strategy of the Intergovernmental Commission TRACECA for the development of the intermodal transport
corridor “Europe-Caucasus-Asia” (TRACECA) for the period to 2105, downloaded from TRACECA website, http://
www.traceca-org.org, 20 September 2011.
125
ECO Transit Transport Framework Agreement, Almaty, Kazakhstan, May 1998.
123
90
Review of Developments in Transport in Asia and the Pacific 2011
to this workshop. Expressing its satisfaction with the approval of a Technical Assistance (TA) Grant by IDB
and ECO Feasibility Study Fund for preparation of a regional programme on implementation of the TTFA,
the Meeting agreed steps to be taken by the ECO Secretariat and the Member States for effective
implementation of the TA project.126
At the 8th Meeting of the Ministers of Transport and Communications of the ECO Member States
held in 2011, the Ministers endorsed the new Programme of Action for ECO Decade of Transport and
Communications. Other decisions included endorsement of the establishment of the ECO Logistic Provider
Associations Federation, and developing road transport corridor on Islamabad-Tehran-Istanbul as well as on
Islamic Republic of Iran-Afghanistan-Tajikistan-Kyrgyz Routes.
126
Moj News Agency, A Report on 3rd Meeting of ECO’s Transit Transport Coordination Council (TTCC). viewed on the
Highbeam website, http://www.highbeam.comm , 20 September 2011.
VII. Safe and Sustainable Transport
91
VII. SAFE AND SUSTAINABLE TRANSPORT
A. Road Safety
Increasing economic activities and the rapid growth in population have led to a significant effect on
the growth of motor vehicles in the ESCAP region. Consequently, this has resulted in an upsurge in the
numbers of road accidents in several countries within the region, particularly within metropolitan cities.
Worldwide, road traffic takes the lives of nearly 1.3 million people every year, and injures 20-50 million
more.127 According to the World Health Organization, road traffic fatalities are predicted to rise to become
the fifth leading cause of death by 2030, resulting in an estimated 2.4 million fatalities per year.
Road traffic fatalities and injuries are believed to disproportionately impact lower income groups:
over 90 per cent of road traffic deaths and injuries occur in low- and middle-income countries128 with
vulnerable road users (pedestrians, motorcyclists and cyclists) accounting for the majority of the
fatalities.129 Direct costs of traffic accidents include any related expenses, including medical costs, costs for
vehicle repairs and administrative costs, and indirect costs include items, such as the loss of quality of life
(including pain, grief and suffering) and the loss of productivity. In total, road accidents are estimated to
cost most developing countries one to three per cent of their gross national product.130
A number of factors, including geometric features of roads, vehicle design, road user and driver
behaviour, traffic and pavement characteristics, and environmental aspects, are thought to contribute
towards the increase in road accidents.131 In addition, there tends to be a link between poor road conditions
and the number of road crashes (i.e. the type of road, whether it is an urban or rural location (which will
often have an impact on road standards and maintenance), and the type of terrain). Roads that are not
capable of handling levels of traffic volume, are inadequate for the terrain, are poorly maintained and have
poor visibility, can all contribute to road fatalities and injuries. In a recent survey, WHO concluded that
poor road and land-use planning in South-East Asia often leads to a deadly mix of high-speed through
traffic, heavy commercial vehicles, motorized two-wheelers, pedestrians and bicyclists on developingcountry roads. Adequate accommodation for vulnerable road users, such as sidewalks and bicycle lanes, is
rare.132
The WHO Global Report on Road Safety also highlighted significant concerns regarding road user
behaviour with respect to seat belt wearing, with many developing nations in particular having laws that do
not apply to all car occupants. Whilst seat belt laws are widespread, the rate of compulsory seat belt laws
drops in alignment with socio-economic indicators; 76 per cent of high income nations require all occupants
to wear seat belts, with the rate lowering to 54 per cent in middle income countries and 38 per cent in low
income countries.133 Enforcement of seat belt laws is also weak in many nations.
1. Road fatalities
Figure VII-1 shows that road fatality rates, measured as the number of deaths per 100,000
population, vary widely across the region. Most developing countries in the ESCAP region have higher
fatality rates than OECD countries. According to the last Global Status Report by the WHO, published in
127
World Health Organization, Saving Millions of Lives, WHO, Geneva, 2011, downloaded from WHO website http://
www.who.int 26 October 2011.
128
World Health Organization, United Nations Road Safety Collaboration: Key Messages, viewed on WHO website http://
www.who.int 26 October 2011.
129
World Health Organization, Global Status Report on Road on Road Safety: Time for Action , WHO, Geneva, 2009.
130
World Heath Organization, United Nations Road Safety Collaboration: Key Messages, viewed on WHO website http://
www.who.int 26 October 2011.
131
Chakraborty, S., and Roy, S.K. (2005) Traffic Accident Characteristics of Kolkata, Transport and Communications Bulletin
for Asia and the Pacific, No. 74, 2005.
132
WHO (2009) Regional Report on Status of Road Safety: the South-East Asia Region – A call for policy direction.
133
WHO (2009) Global Status Report on Road Safety – Time for Action.
92
Review of Developments in Transport in Asia and the Pacific 2011
Figure VII-1. Fatality rate per 100,000 population in selected ESCAP countries, 2007
Cook Islands
Afghanistan
Cambodia
Islamic Republic of Iran
Kazakhstan
Pakistan
Russian Federation
Malaysia
Myanmar
Kyrgyzstan
Philippines
Thailand
Mongolia
Turmenistan
Vanuatu
Lao People’s Democratic Republic
Maldives
Solomon Islands
India
Georgia
China
Indonesia
Viet Nam
Timor-Leste
Nepal
Palau
Bhutan
Micronesia (Federated State of)
Papua New Guinea
Tajikistan
Armenia
Brunei Darussalam
Sri Lanka
Turkey
Azerbaijan
Samoa
Republic of Korea
Bangladesh
New Zealand
Nauru
Uzbekistan
Tuvalu
Australia
Fiji
Tonga
Japan
Singapore
Marshall Islands
0
5
10
15
20
25
30
35
Road Fatalities per 100,000 population
40
45
50
Source: Based on data from Statistical Annex, World Health Organization, Global Status Report on Road on Road Safety 2009. For
consistency, the number of fatalities is based on the point estimates provided in this report, not on reported fatalities. This differs from the
approach taken in the 2009 Review of Developments of Transport in Asia and the Pacific.
2009 with data from 2007, the highest rate of 45 per 100,000 was for the Cook Islands. However, as this is
somewhat anomalous (most small Pacific Island countries have low fatality rates due to limited motor
vehicle travel) and the number of fatalities involved is small, this is likely to be a statistical aberration. Of
the larger countries, Afghanistan has the highest fatality rate, at nearly 40 deaths per 100,000 inhabitants.
Eight other countries (Cambodia, Islamic Republic of Iran, Kazakhstan, Pakistan, Russian Federation,
Malaysia, Myanmar and Kyrgyzstan) recorded rates in excess of 20 per 100,000 inhabitants.
However, it has been argued that “road fatality rates per million inhabitants are an ambiguous
indicator of road safety since the number of accidents depends to a great extent on the number of vehicles in
each country”.134 Figure VII-2 therefore compares fatality rates per 10,000 registered vehicles.
134
OECD, OECD Factbook 2006, OECD Paris 2007.
VII. Safe and Sustainable Transport
93
Figure VII-2. Fatality rate per 10,000 vehicles in selected ESCAP countries, 2007
Cambodia
Bangladesh
Papua New Guinea
Afghanistan
Myanmar
Solomon Islands
Pakistan
Timor-Leste
Nepal
Kyrgyzstan
Micronesia (Federated State of)
Tajikistan
Philippines
Tonga
Mongolia
Vanuatu
India
Bhutan
Lao People’s Democratic Republic
Maldives
China
Kazakhstan
Samoa
Islamic Republic of Iran
Turkmenistan
Azerbaijan
Georgia
Armenia
Tuvalu
Russian Federation
Sri Lanka
Turkey
Fiji
Viet Nam
Indonesia
Cook Islands
Palau
Thailand
Marshall Islands
Malaysia
Republic of Korea
Singapore
Brunei Darussalam
New Zealand
Australia
Japan
0
50
100
150
200
250
300
350
400
Road Fatalities per 10,000 motor vehicles
Source: Based on data from Statistical Annex, World Health Organization, Global Status Report on Road on Road Safety 2009. For
consistency, the number of fatalities is based on the point estimates provided in this report, not on reported fatalities. This differs from the
approach taken in the 2009 review.
Adjusting for the level of motorization significantly improves the relative safety performance of
some upper middle income countries with high levels of car ownership, such as Kazakhstan and Malaysia.
Conversely, the relative safety performance of low income countries – most notably Bangladesh – is worse
on this indicator. In terms of fatalities per 10,000 vehicles, the low income countries Cambodia and
Bangladesh have the highest fatality rates in the ESCAP region, while the rates for high income countries
are, without exception, very much lower: for example, in Cambodia, there were 337 fatalities per 10,000
vehicles in 2007; in Japan, there were 0.7.
Figure VII-2 suggests that, once the level of motorization is taken into account, there is strong and
systematic relationship between poverty and road fatalities. This is confirmed by the analysis presented in
Figure VII-3. This figure charts, on a dual logarithmic scale, the relationship between road deaths per
10,000 motor vehicles and per capita income for a cross-section of ESCAP countries.
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Review of Developments in Transport in Asia and the Pacific 2011
Figure VII-3. Relationship between road fatalities and per capita income,
selected ESCAP countries, 2007
Fatalities per 10,000 motor vehicles (logarithmic scale)
1,000.0
100.0
10.0
1.0
0.1
100
y = 17753x-0.902
2
R = 0.7331
1,000
10,000
Per capita income (logarithmic scale)
100,000
Source: Based on data from Statistical Annex, World Health Organization, Global Status Report on Road on Road Safety 2009.
The large differences between fatality rates in countries in the Asia Pacific region, and systematic
relationship between these rates and income level, indicates there is considerable potential for concerted
action to significantly reduce the levels of road traffic deaths, injuries and property damage – but also that,
to realize this potential, significant resources will need to be directed to the less developed countries of the
region.
The nature of road safety issues in the region also varies between developing and developed
countries (see Figure VII-4). The majority of people killed in road accidents in Bangladesh are non-motorized
road users: pedestrians and cyclists. The same appears to be the case in India, although in this case the
picture is somewhat clouded by the large proportion of road crash casualties not classified by road user
type. Non-motorized road users also comprise more than 40 per cent of fatalities in Tajikistan, Tonga,
Kyrgyzstan, China, Islamic Republic of Iran, Myanmar, and China. Perhaps more surprisingly, since high
levels of pedestrian deaths are often associated with developing countries, non-motorized road users also
comprise more than 40 per cent of all road fatalities in Japan and the Republic of Korea. Meanwhile, in
some countries motor-cycle riders and passengers form a very high proportion of roads fatalities in some
countries, especially in South-East Asia: deaths in this category exceed 50 per cent of all fatalities in
Singapore, Indonesia, Malaysia, Cambodia and Thailand.
The 2009 Country Status Reports provided by ESCAP member countries to the secretariat reflected
mixed progress in reducing road user fatalities between 2007 and 2009.135 Figure VII-5 shows that the
majority of countries providing reports recorded reductions in road fatalities over this period. Progress was
particularly impressive in Kazakhstan, which achieved a drop in fatalities close to 20 per cent per annum,
and in Bhutan, Brunei Darussalam, the Russian Federation, Kyrgyzstan and Azerbaijan, fatalities were
reduced by over 10 per cent per annum. Also noteworthy, given the low rates that they had already achieved
in 2007, were the further reductions of over 5 per cent per year in Singapore and Japan. On the other hand,
fatalities increased by over 10 per cent per year in Nepal, Georgia and Lao People’s Democratic Republic,
and by over 5 per cent in Indonesia, Cambodia, Myanmar and India.
135
UNESCAP, Road Safety, paper prepared for Expert Group Meeting on Preparations for the Ministerial Conference on
Transport, Bangkok, 14-15 July 2011 (TD/EGM.1/2011/9).
VII. Safe and Sustainable Transport
95
Figure VII-4. Road fatalities by road user class, selected ESCAP countries, 2007
100%
90%
Share of total road fatalities
80%
70%
60%
50%
40%
30%
20%
10%
Fi
ji
v
am es
bo
Th dia
ai
l
M and
al
a
M ysi
a
o
Ka ng
za olia
kh
M
s
ic
ro
A ta
ne B N us n
e
t
r
si
a une w Z ralia
(F
ed i Da eala
er r u
n
at ss d
ed a
St lam
at
e
of
)
di
al
M
C
Ba
ng
la
de
sh
I
Ta ndia
jik
is
ta
n
To
ng
a
C
hi
Is
na
la
m
J
ic
K a
R yrg pa
ep
n
ub yzs
lic tan
o
R
ep M f Ira
Pa ub ya n
l
pu ic nm
a of ar
N
ew Kor
e
C Gu a
oo in
k
e
Is a
la
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m
Az en
er ia
b
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n
ga n
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us
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si
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r
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Tu ri L on
r k an
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is
ta
n
Pa
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do lau
ne
G sia
eo
rg
ia
0%
Occupants of 4-wheeled vehicles
Occupants of 2-wheeled vehicles
Motorized (vehicle not specified)
Pedestrians
Non-motorized (cyclists and pedestrians)
Other of unspecified
Cyclists
Source: Based on data from Statistical Annex, World Health Organization, Global Status Report on Road on Road Safety 2009.
Figure VII-5. Change in road fatalities in selected ESCAP countries, 2007-2009
Kazakhstan
Bhutan
Brunei Darussalam
Russian Federation
Kyrgyzstan
Azerbaijan
Singapore
Turkey
Viet Nam
Japan
Armenia
Thailand
Mongolia
Republic of Korea
Malaysia
Tajikistan
Islamic Republic of Iran
Indonesia
Cambodia
Myanmar
India
Sri Lanka
Lao People’s Democratic Republic
Georgia
Nepal
-25%
-20%
-15%
-10%
-5%
Annual change 2007-2009
0%
5%
10%
15%
20%
25%
Annual change 2007-2008
Source: Based on data from UNESCAP Road Safety, TD/EGM.1/2011/9. Data for Mongolia, Islamic Republic of Iran, Sri Lanka, Georgia and
Nepal is not available for 2009, so data for 2008 has been used.
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Review of Developments in Transport in Asia and the Pacific 2011
To a significant extent, the increases are due to rapidly increasing motorization in these countries.
Unfortunately, the data required to systematically assess the influence of increased motor vehicle ownership
and impact on the number of fatalities is not available for most countries. However, the rate of fatalities per
10,000 motor vehicles fell in all six of the countries that provided data on movements in this ratio – in four
of these countries, the actual number of fatalities increased. This demonstrates that it is feasible for
developing countries in particular to achieve significant reductions in road fatalities in a short period of
time provided there is commitment and sustained effort by the national government and other road safety
stakeholders.
2. International initiatives to improve road safety
The significant social and economic costs associated with traffic accidents have been recognized in
a number of international initiatives. For some years now, ESCAP has worked to improve road safety in the
region. ESCAP has also supported the creation of the Global Road Safety Partnership (GRSP) movement
and encourages a multilateral approach towards road safety represented in its work in partnership with
Asian Development Bank, World Bank, GRSP, International Road Assessment Programme, International
Road Federation and International Road Transport Union. In 2006, ESCAP transport ministers attended the
Ministerial Conference of Transport in Busan, the Republic of Korea. Ministers at the conference conveyed
profound concern for the rapid increase in deaths and injuries resulting from road traffic accidents, and the
conference adopted the Ministerial Declaration on Improving Road Safety in Asia and the Pacific by
transport ministers on 11 November 2006 (The Busan Declaration).
Calls for action at the global level were stepped up during the First Global Ministerial Conference
on Road Safety, hosted by the Russian Federation in 2009. The Conference led to the adoption of the
Moscow Declaration which invited the UN General Assembly to declare a Decade of Action for Road
Safety from 2011 to 2020. Subsequently, the General Assembly of the United Nations endorsed the proposal
of Moscow Declaration and proclaimed the period 2011-2020 as the Decade of Action for Road Safety
(Box VII-1). The Decade of Action was proclaimed with a goal to stabilize and then reduce the forecast
level of road traffic fatalities around the world by increasing road safety activities conducted at the national,
regional and global levels.
Box VII-1. The Global Plan for the Decade of Action for Road Safety 2011-2020
United Nations General Assembly Resolution 64/255 requested the World Health Organization and the United
Nations regional commissions, in cooperation with the United Nations Road Safety Collaboration and other
stakeholders, to prepare a Global Plan for the Decade as a guiding document to support the implementation of its
objectives. The Global Plan provides an overall framework for activities at the local, national, regional and global
levels.
The guiding principles of the Global Plan are those of a “safe system” approach. This approach aims to
develop a road transport system that is better able to accommodate human error and take into consideration the
vulnerability of the human body. The goal of a “safe system” is to ensure that accidents do not result in fatality or
serious human injury. Road users, vehicles and the road network are addressed in a holistic manner through a wide
range of traditional and newer approaches, with a focus on five “pillars”: (a) building road safety management
capacity, (b) providing safer roads and mobility, (c) ensuring vehicles are safer (d) inculcating safer behaviour in
road users, and (e) improving post-crash response.
Moving to a “safe system” approach requires the development and implementation of sustainable road safety
strategies and programmes, and the setting of ambitious yet feasible targets for the reduction of road fatalities during
the Decade of Action for Road Safety. The Global Plan defines specific activities to be undertaken in support of each
of the five pillars, and suggests indicators that could be used to track progress in each area. At the national and
regional levels, road safety management capacity, and data collection and monitoring systems need to be
strengthened and improved. Also important is the sharing of successes and lessons with other countries and the
region, and optimizing the value of existing resources whilst continuing to seek further funding for future road safety
projects and endeavours.
VII. Safe and Sustainable Transport
97
In response to the General Assembly resolution and in accordance with the Global Plan for the
Decade, ESCAP has developed a detailed set of goals targets and indicators for road safety improvement in
the Asia-Pacific region. The overall objective of the ESCAP road safety goals, targets and indicators for the
Decade of Action for Road Safety is a 50 per cent reduction in fatalities and serious injuries on the roads of
Asia and the Pacific over the period 2011 to 2020.136 There are eight areas supporting the overall objective:
O
O
O
O
O
O
O
O
Making road safety a policy priority;
Making roads safer for vulnerable road users, including children, senior citizens, pedestrians,
non-motorized vehicle users, motorcyclists, and persons with disabilities;
Making roads safer and reducing the severity of road crashes (“forgiving roads”);
Making vehicles safer and encourage responsible vehicle advertising;
Improving national and regional road safety systems, management enforcement;
Improving cooperation and fostering partnerships;
Developing the Asian Highway as a model of road safety; and
Providing effective education on road safety awareness to the public, young people and
drivers.
Across the eight areas, ESCAP has recommended a list of 25 targets and 36 indicators for member
countries to consider when planning and implementing their national road safety strategies and in
evaluating progress. The road safety goals, targets and indicators were presented at the ESCAP Regional
Expert Group Meeting on the Implementation of the Decade of Action for Road Safety, held in Bangkok in
September 2010 (see Table VII-1). The Meeting noted the UNESCAP road safety goals, targets and
indicators for the Decade of Action with an overall objective of a 50 per cent reduction in fatalities and
serious injuries on the roads of Asia and the Pacific over the period 2011-2020.137
Table VII-1. ESCAP Road Safety Goals, Targets and Indicators for the Decade of Action
Goals and Targets
Indicators for monitoring achievements
Overall Objective: 50 per cent reduction in fatalities and serious injuries on the roads of Asia and the Pacific over the
period 2011 to 2020
a) Reduce the fatality rates by 50 per cent from
2011 to 2020.
1) Number of road fatalities (and fatality rates per 10,000 motor
vehicles, per motor vehicle-km and per passenger-km).
2) Number of road crashes.
b) Reduce the rates of serious road injuries by
50 per cent from 2011 to 2020.
3) Number of serious road injuries (and injury rate per 10,000 motor
vehicles, and per motor vehicle-km).
Goal 1: Making road safety a policy priority
a) Create a road safety policy/strategy, designate
a lead agency and implement a plan of action,
by 2011.
4) Information on existing national road safety policy, strategy, and
plan of action.
5) Name of designated lead agency. Description of responsibilities of
local, regional and national government organizations.
6) National road safety reports or impact evaluation reports of
government programmes.
b) Allocate sufficient financial and human
resources to improving road safety.
7) Amount of funding allocated to road safety programmes (public,
private and donors) and research and development to create safer
road environment.
136
The overall objective of a 50 per cent reduction in fatalities and serious injuries is comparable to the previous objective of
saving 600,000 lives and preventing a commensurate number of serious injuries on Asia-Pacific roads between 2007 to 2015
contained in the Ministerial Declaration on Improving Road Safety in Asia and the Pacific made in Busan, Republic of Korea, in
November 2006.
137
UNESCAP, Report of Report of the Regional Expert Group Meeting on Implementation of Decade of Action for Road Safety,
2011-2020, 21-23 September 2010, Bangkok, Thailand, viewed on ESCAP website http://www.unescap.org, 27 October 2011.
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Review of Developments in Transport in Asia and the Pacific 2011
Table VII-1. (continued)
Goals and Targets
Indicators for monitoring achievements
Goal 2: Making roads safer for vulnerable road users, including children, senior citizens, pedestrians, non-motorized
vehicle users, motorcyclists, and persons with disabilities
a) Reduce by one third the pedestrian death rate in
road crashes (or reduce it to less than 1 per
10,000 motor vehicles).
8) Numbers of pedestrian deaths or pedestrian deaths per 10,000
motor vehicles.
b) Increase the number of safe crossings for
pedestrians (e.g., with subway, overhead
crossings or traffic signals).
9) Number of new safe crossings or improvement constructed or
planned.
c) Make the wearing of helmets the norm and
ensure minimum helmet quality, in order to
reduce the motorcyclist death rate by one third
(or reduce it to below the average motorcyclist
death rate of the ESCAP region).
10) Number of motorcyclist deaths and motorcyclist death per 10,000
motorcycles.
d) Ensure minimum child safety measures, in
order to reduce the child death rate by one third
(or reduce it to less than 0.01 per 10,000 motor
vehicles).
12) Number of child fatality in road crashes.
11) Existing law or administrative rule for mandatory use of helmets
and specifying minimum helmet quality standards. Information on
helmet use (percentage).
13) Existing law or administrative rule on measures for child safety in
cars (child restraints) and on motorcycles (child helmets).
14) Use of child seat restraints and child helmets (percentage).
e) Equip all school children with basic road safety
knowledge.
15) Existing or planned education programmes on road safety in
school, starting class and its coverage.
Goal 3: Making roads safer and reducing the severity of road crashes (“forgiving roads”)
a) Integrate road safety audit in all stages of road 16) Number of, and information about, road safety audits carried out
for new road construction and major improvements.
development starting at the design stage, carry
out necessary improvement works, and improve 17) Number of improvement programmes carried out to make roads
hazardous locations.
“forgiving” (e.g., blackspot, removing or cushioning roadside
obstacles).
b) Increase separate/secure road space for
pedestrians and cyclists in urban and suburban
areas (where space permits).
18) Existing length of pedestrian and bicycle tracks in kilometres per
100,000 people or per 10,000 km of roads (along highways and
city roads). Programme to construct pedestrian and bicycle tracks.
Goal 4: Making vehicles safer and encourage responsible vehicle advertising
a) Make regular inspection of road vehicles
mandatory and ensure enforcement of inspection
(starting in urban areas).
19) Existing law or administrative rule on vehicle inspection,
frequency of inspection (annual), number of vehicle inspection
facilities and organizations.
b) Ensure safety requirements for new vehicles to
be in line with international standards.
20) Existing law and regulation specifying vehicle safety standards
and implementation.
Goal 5: Improving national and regional road safety systems, management and enforcement
a) Implement a national (computerized) database
that provides information on road crashes.
21) Information on existing road safety database and responsible
organizations.
b) Introduction of laws and regulation to ensure
compliance with mandatory helmet, seat-belt
use, drinking and driving, use of mobile phone
and speed limits.
22) Information on law or administrative rule on compliance with
helmet wearing (including percentage use).
23) Information on law or administrative rule on compliance with
seat-belt use, use of mobile phone (including percentage use).
24) Information on law or administrative rule on compliance with
“drinking and driving” and speed limits.
c) Allow alcohol tests for prosecution (either
breathalyzer and/or behavioural tests).
25) Existing alcohol level testing rules, types of tests and alcohol
limits used and allowed for prosecution.
VII. Safe and Sustainable Transport
99
Table VII-1. (continued)
Goals and Targets
Indicators for monitoring achievements
Goal 5: Improving national and regional road safety systems, management and enforcement (continued)
d) Make it the norm to keep motorcycle frontlights on at all times.
26) Information on existing law or administrative rule on keeping
motorcycle headlight on while driving.
e) Increase coverage of emergency assistance
systems for road victims, to cover at least all
urban areas and trunk roads.
27) Kilometres of road (by type) on which emergency services are
provided.
28) Average emergency response time.
29) Number of emergency service centres per length of highways
(except city roads).
Goal 6: Improving cooperation and fostering partnerships
a) Encourage and recognize private-sector 30) Number of major partnerships in the area of road safety, funding
(private sector, public-private initiatives).
sponsored initiatives.
b) Create new and deepen existing partnerships
with non-governmental organizations.
31) Number of major partnerships with NGO, scope and funding.
Goal 7: Developing the Asian Highway as a model of road safety
a) Reduce the total number of fatalities and road 32) Total number of road fatalities and road crashes on the Asian
crashes on the Asian Highway.
Highway in each country per year.
b) Reduce the number of fatalities on all Asian
Highway segments to below 100 per billion
vehicle-kilometres.
33) Number of fatalities per billion vehicle-kilometres for each Asian
Highway segment per year.
c) Increase resource allocation for road safetyrelated measures along the Asian Highway.
34) Amount of resources allocated to safety-related works for the
Asian Highway segments from government and donors.
d) Improve Asian Highway road segments to be
forgiving to road users if a crash occurs.
Demonstrate best practice.
35) Information on road safety assessment and rating programme for
the Asian Highway.
Goal 8: Providing effective education on road safety awareness to the public, young people and drivers
a) Carry out targeted awareness campaigns and
training programmes
36) Information on number of national road safety awareness
campaigns and training programmes carried out.
Source: UNESCAP, Report of Report of the Regional Expert Group Meeting on Implementation of Decade of Action for Road
Safety, 2011-2020, 21-23 September 2010.
3. National road safety targets and initiatives
Many ESCAP member countries have developed national road safety plans with measurable goals,
targets and indicators. Recent examples include Thailand, which aims to reduce the number of deaths
resulting from road crashes by half by 2020;138 Cambodia, whose draft National Road Safety Action Plan
includes the goal of reducing the number of road fatalities and fatality rate by 50 per cent by 2020;139 and
Australia, whose National Road Safety Strategy for 2011-2020 includes the target of a 30 per cent reduction
in deaths and serious injuries by 2020.140 Table VII-2 provides an overview of the types of measures being
implemented across the region.
138
Thailand determined to achieve the goals of the Decade of Action for Road Safety 2011-2020, viewed on website of United
Nations Road Safety Collaboration, from http://www.who.int/roadsafety/en, 26 October 2011.
139
Boran Pen, Cambodia National Road Safety Action Plan 2011-2020, presentation to Regional Expert Group Meeting on
Implementation of Decade of Action for Road Safety, 2011-2020, 21-23 September 2010, downloaded from UNESCAP website,
http://www.unescap.org, 26 October 2011.
140
Australian Transport Council, National Road Safety Strategy 2011-2020, 28 May 2011, downloaded from website of
Australian Transport Council, http://www.atcouncil.gov.au 26 October 2011.
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Review of Developments in Transport in Asia and the Pacific 2011
Table VII-2. Overview of types of measures being implemented by ESCAP member states
Type of measure
Countries
Road safety audits
Afghanistan, Armenia, Azerbaijan, Georgia, India, Kazakhstan, Kyrgyzstan, Lao
People’s Democratic Republic, Malaysia, Mongolia, Nepal, Philippines, Republic of
Korea, Russian Federation, Singapore, Sri Lanka, Tajikistan, Thailand, Timor-Leste,
Turkey, Turkmenistan, Uzbekistan and Viet Nam.
Hazardous locations improvement
programmes
Bhutan, Cambodia, Japan, Kazakhstan, Kyrgyzstan, Malaysia, Nepal, Philippines,
Republic of Korea, Russian Federation, Singapore, Sri Lanka, Tajikistan, Thailand,
Turkey and Viet Nam.
Phasing out older vehicles which are
no longer roadworthy through regular
mandatory vehicle inspections
Bhutan, Cambodia, India, Indonesia, Kazakhstan, Kyrgyzstan, Malaysia, Mongolia,
Nepal, Philippines, Russian Federation, Singapore, Sri Lanka, Tajikistan, Thailand,
Timor-Leste, Turkey and Viet Nam.
Legislation on seatbelt use in cars
Armenia, Azerbaijan, Bhutan, Cambodia, China, Georgia, India, Indonesia, Islamic
Republic of Iran, Japan, Kazakhstan, Kyrgyzstan, Lao People’s Democratic
Republic, Malaysia, Nepal, Pakistan, Philippines, Republic of Korea, Russian
Federation, Singapore, Tajikistan, Thailand, Timor-Leste, Turkey, Turkmenistan,
Uzbekistan and Viet Nam.
Legislation on helmet use by
motorcyclists
Armenia, Azerbaijan, Bangladesh, Bhutan, Cambodia, China, Georgia, India,
Indonesia, Japan, Kazakhstan, Kyrgyzstan, Lao People’s Democratic Republic,
Malaysia, Mongolia, Myanmar, Nepal, Pakistan, Philippines, Republic of Korea,
Russian Federation, Singapore, Sri Lanka, Tajikistan, Thailand, Timor-Leste, Turkey,
Turkmenistan, Uzbekistan and Viet Nam.
Legislation on drink-driving
Afghanistan, Armenia, Azerbaijan, Bangladesh, Bhutan, Cambodia, China, Georgia,
India, Islamic Republic of Iran, Japan, Kazakhstan, Kyrgyzstan, Lao People’s
Democratic Republic, Malaysia, Mongolia, Myanmar, Nepal, Pakistan, Philippines,
Republic of Korea, Russian Federation, Singapore, Sri Lanka, Tajikistan, Thailand,
Timor-Leste, Turkey, Turkmenistan, Uzbekistan and Viet Nam.
Source: Country reports presented at various ESCAP meetings.
Table VII-3 lists more specific commitments aimed at the improvement of road safety from a crosssection of ESCAP countries.
Table VII-3. Recent Road Safety Initiatives in ESCAP member States141
Country
Recent Road Safety Initiatives in 2009-2010
Armenia
Government launched a plan to include a compulsory subject on road safety in the school
curriculum for classes 1 to 11.
Bangladesh
The Bangladesh Road Transport Authority has launched a road safety publicity programme through
newspapers, radio, television, posters and leaflets. It also arranged 81 training programmes for
8,500 professional drivers to improve their driving skills and road awareness.
Brunei Darussalam
The Government’s draft road safety action plan for 2011-2020 includes a proposal to establish
a centre for road safety.
Cambodia
A survey on seat-belt wearing in Phnom Penh and surrounding areas was conducted. It found that
the average wearing rate among drivers and front-seat passengers was 55 per cent.
Indonesia
A dedicated website with national road safety and impact evaluation reports was established
(http://hubdat.web.id/). The rollout of a national accident investigation and road safety audit
training programme continued in 9 provinces involving 270 participants.
141
As reported in 2009 Country Status Reports and at the Regional Expert Group Meeting on Implementation of Decade of
Action for Road Safety (Bangkok, 21-23 September 2010). Country papers and presentations are prepared and presented by the
focal points from member countries and should not necessary be considered as reflecting the views and carrying the endorsement
of the United Nations.
VII. Safe and Sustainable Transport
101
Table VII-3. (continued)
Country
Recent Road Safety Initiatives in 2009-2010
Kazakhstan
The Young Inspectors’ Movement programme targeted at young children was implemented in
85 per cent of public schools. The Government also plans to implement a computerized
information system to record road accident information.
Kyrgyzstan
The Government introduced car parking rules and traffic discipline in the Chuy region of Bishkek.
Malaysia
Remedial measures were carried out on 30 black spot hazardous areas.
Nepal
The Government has introduced traffic safety in the curriculum of school classes I to IV as part of
a subject entitled “Social studies and creative arts”.
Philippines
A road safety awareness project entitled “Use of Flash Cards as Instructional Materials for Grade 5
Students in Public Schools” which seeks to reduce road fatalities involving children is to be
launched following a six month pilot in the 2010-2011 school year.
Republic of Korea
A historic Memorandum of Understanding between the Ministry of Land, Transport and Maritime
Affairs, and the Police was signed. This will enhance traffic safety in the Republic of Korea.
Russian Federation
A dedicated website which contains comprehensive and regularly updated database and
information on road safety issues was established (http://www.fcp-pbdd.ru/).
Sri Lanka
The National Council for Road Safety has erected a road safety fund with US$ 100 million.
One per cent of third party insurance premiums is being allocated to this fund.
Thailand
The Government declared 2011-2020 as Thailand’s Decade of Action for Road Safety with a new
road safety target of a 50 per cent decrease in road deaths per 100,000.
Timor-Leste
The Government has approved a ministerial diploma concerning the enforcement of laws regarding
the use of motorcycle helmets.
Turkey
Publicity campaigns were run in 2009 and 2010 to inform and impact the behaviour of road users
and raise the general public’s awareness of road safety.
Viet Nam
The Government introduced strong penalties for drink-driving as well as new law requiring
children above the age of six to wear motorcycle helmets properly.
Source: UNESCAP, Report of the Regional Expert Group Meeting on Implementation of Decade of Action for Road Safety,
2011-2020, 21-23 September 2010.
As can be seen from the preceding paragraphs, the majority of ESCAP countries have reasonably
comprehensive frameworks for the regulation of safe driving (and riding) behaviour. Four of the most
critical issues covered by legislation are drink driving; the wearing of helmets (by motor cycle riders and
passengers); speed limits; and the wearing of seat belts.
Alcohol
Most ESCAP countries now have national legislation defining the maximum blood alcohol content
(BAC) at which it is legal to drive. From a cross-section of 48 countries for which information is provided
in the WHO’s Global Status Report on Road Safety, eight countries – mainly countries in which the
consumption of alcohol is generally prohibited – the limit is set at zero.142 Meanwhile, 25 of the
48 countries have a legislated national BAC equal to or lower than the ‘typical’ Western European level of
0.05 per cent, and 37 of the 48 countries set this level at or below the level permitted in the United States.
Only one country set a blood alcohol content above this level. In ten countries there are no national limits,
because either there is no legislation on this issue (one country); the limits are set by sub-national
governments and are not uniform (two countries);143 or driving under the influence of alcohol is defined
with reference to something other than blood alcohol content (seven countries).
142
Based on data from Statistical Annex, World Health Organization, Global Status Report on Road on Road Safety 2009. For
the Philippines, BAC limit (0.05) was taken from website of International Centre for Alcohol Policies, http://www.icap.org,
viewed 27 October 2010.
143
In some countries, such as Australia, limits are formally set by sub-national governments but legislation is coordinated to give
a common national standard. In the analysis above, these countries have been regarded as having national BAC legislation.
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Review of Developments in Transport in Asia and the Pacific 2011
Helmets
In 41 of the 48 countries for which data is available, there is now national (or quasi-national)
legislation requiring the wearing of motor-cycle helmets. In all but one of these cases, the requirement is
that helmets are worn by both the rider and his or her passengers. There is, however, considerable variability
between countries in the conditions under which a rider or passenger is exempt from this requirement. Of the
seven countries in which there is no national legislation, the issue is dealt with at a sub-national level in
two, while four of the remaining five countries are small island states.144
In many ESCAP countries, anecdotal information also suggests that the helmets being sold or
produced are of a substandard quality, thereby giving a false sense of security to riders even when they do
wear them. Legislation on the need to wear helmets usually specify that helmets must be certified by
a government authority or relevant safety standard-setting authority. Unfortunately, substandard helmets
may feature fake certification stickers. In the Philippines, the Motorcycle Helmet Act of 2009 requires the
seller and/or dealer of new motorcycles to make new motorcycle helmets bearing the Philippine Standard
(PS) mark or Import Commodity Clearance (ICC) of the Bureau of Product Standards (BPS) available as
a purchasing option for new buyers.145
Speed
In ESCAP countries, the most common general urban speed limits are 40 km/hr, 50 km/hr and
60 km/hr, with almost equal numbers of countries in each group (11, 12 and 13 respectively). Pacific island
countries tend to dominate the group with 40 km/hr speed limit, while in the 60 km/hr speed limit
group, North and Central Asian countries are over-represented. There is greater variation in generally
applicable speed limits on rural roads. Approximately one-quarter of countries set the general limit at or
below 50 km/hr; this group is dominated by small island countries and countries with very limited sealed
road networks. At the other end of the scale, approximately one-quarter of countries have limits in excess of
80 km/hr, with three countries reporting no generally applicable limit.
Seat belts
Compulsory wearing of seat belts is the legislative area in which the current situation in the
Asia-Pacific lies furthest away from best road safety practice. Only a little over one-third of countries have
legislation that requires all occupants to wear seatbelts. One-quarter of countries do not have national
compulsory seatbelt legislation, while one-third limit the requirement to wear a belt to occupants of the
front seats.
Enforcement
To have appropriate road safety legislation is one thing; to ensure that it is effectively enforced is
another. As well as compiling hard data on legislative regimes in the Asia-Pacific, the WHO has used
a survey approach to gain some insight into how effectively different regulations are enforced in each
country. Figure VII-6 summarises the results from this survey. From a possible score of 10 for perfectly
effective enforcements, the average score for enforcement of helmet laws was 6.4; this was the highest
rating for any of the four legislative components reported above. The weakest enforcement (5.28 on
average) was in the area in which the legislation itself is the weakest – compulsory wearing of seatbelts.
This is also the area in which the variability of enforcement across the region was greatest (this is shown by
the fact the standard deviation of scores for enforcement of seatbelt laws is higher than the corresponding
statistic for the other aspects of road safety legislation).
144
145
Based on the Statistical Annex to World Health Organization, Global Status Report on Road on Road Safety 2009.
http://wiki.lawcenter.ph/index.php?title=Motorcycle_Helmet_Act_of_2009
VII. Safe and Sustainable Transport
103
Figure VII-6. Mean and variability of enforcement effectiveness,
selected ESCAP countries, 2009
7
6
5
4
3
2
1
0
Alcohol
Helmets
Average Score (scale of 0-10)
Speed Limits
Seatbelts
Standard Deviation of Valid Scores
Source: Based on data from Statistical Annex, World Health Organization, Global Status Report on Road on Road Safety 2009.
B. Sustainable Transport Development
1. The impact of transport activities on the environment
Human activities are increasingly changing the composition and properties of the earth’s
atmosphere. Most significantly, the concentration of carbon dioxide (CO2) in the atmosphere has increased
by 38 per cent over the levels of the pre-industrialised era146 to a level higher than at any time in the past
800,000 years.147 Moreover, the rate of increase in the concentration of CO2 is accelerating. Measurement
records from the US National Oceanic and Atmospheric Administration research station in Hawaii
Moreover show an increase of over 22 per cent in atmospheric CO2 over the last fifty years. During the
decade 1960-1970, the average annual rate of increase in atmospheric CO2 was 0.27 per cent. Between
2000 and 2010, the average annual rate of increase was 0.54 per cent.
There has also been a rise in the atmospheric concentrations of other significant greenhouse gases:
“the CO2 equivalent concentration of the 6GHG is – CO2, CH4 , N2O, hydrofluorocarbons (HFC),
perfluorocarbons (PFC) and sulphite hexafluoride (SF6 – included in the Kyoto protocol reached 438 ppm
CO2-equivalent in 2008, an increase of 160 space ppm from the preindustrial level.”148 Together, these
gases build up in the earth’s atmosphere, and it is generally accepted that this build-up has led to the
trapping of more heat from sunlight than would otherwise be the case. The additional heat in the earth’s
atmosphere manifests as global warming, which is strongly related to climate change and sea level rise. For
example, extreme weather events such as heatwaves, heavy rain, drought and tropical cyclones are all
forecast to increase in intensity and frequency.149 These global environmental impacts pose obvious threats
146
European Environment Agency, Understanding climate change — SOER 2010 thematic assessment, EEA, Copenhagen 2010.
The Copenhagen Diagnosis, 2009: Updating the World on the Latest Climate Science. I. Allison, N.L. Bindoff, R.A.
Bindschadler, et al. The University of New South Wales Climate Change Research Centre (CCRC), Sydney, Australia, viewed at
http://www.copenhagendiagnosis.com/on 9 December 2009.
148
European Environment Agency, Understanding climate change — SOER 2010 thematic assessment, EEA, Copenhagen 2010.
149
The Copenhagen Diagnosis, 2009: Updating the World on the Latest Climate Science. I. Allison, N.L. Bindoff, R.A.
Bindschadler, et al. The University of New South Wales Climate Change Research Centre (CCRC), Sydney, Australia, viewed at
http://www.copenhagendiagnosis.com/on 9 December 2009.
147
104
Review of Developments in Transport in Asia and the Pacific 2011
to low-lying oceanic states in the ESCAP region.150 But they also have very significant implications for
major continental economies: the Maplecroft Climate Change Vulnerability Index includes five major Asian
economies – Bangladesh, India, Philippines, Viet Nam and Pakistan – in its list of the 16 countries
classified as at ‘extreme risk’ from climate change.151
In 2005, it was estimated that approximately 70 per cent of anthropogenic greenhouse gas
emissions were due to energy consumption, while transport-related emissions accounted for 21 per cent of
energy-related emissions. The majority of these emissions are CO2, though transport also contributes to
global N2O and methane emissions. Motor vehicle air conditioners are major contributors of HFCs. As
shown in figure VII-7, it is estimated that transport activity produces approximately 15 per cent of total
anthropogenic greenhouse gas emissions. Road transport accounts for three-quarters of transport-related
greenhouse gas emissions; aviation accounts for approximately one-eighth, and the rest is emitted by rail
and shipping.152
One of the main factors driving the growth of transport-related GHG emissions is rapid
urbanization and the increase in the number of motor vehicles used, particularly for passenger transport in
cities. In addition to contributing to climate change, urban air pollution also causes the greatest damage to
health and loss of welfare from environmental causes in Asian countries. Figure VII-8 show clearly that
urban air pollution is principally a problem that afflicts developing countries. Despite high levels of
urbanization and motorization, few if any cities in Western Europe, North America or Japan have PM10
(particulate matter of less than 10 micrometres diameter) concentrations in excess of 30 µg/m3. By contrast,
the majority of major cities in developing ESCAP member states have concentrations above this level.
Figure VII-7. Sources of global greenhouse gas emissions in 2005
Source: International Transport Forum, Reducing Transport GHG Emissions, Trends and Data 2010, OECD/ITF 2010.
150
See, for instance, UNDP, Climate change threatens human security in the Pacific Islands, August 2009, viewed on UNDP
Newsroom website, http://content.undp.org/go/newsroom, 18 October 2011.
151
Maplecroft, Big economies of the future – Bangladesh, India, Philippines, Viet Nam and Pakistan – most at risk from climate
change, 20 October 2010, viewed on Maplecroft website, http://maplecroft.com, 18 October 2011.
152
International Transport Forum, Reducing Transport GHG Emissions, Trends and Data 2010, OECD/ITF 2010.
VII. Safe and Sustainable Transport
105
Figure VII-8. Geographical distribution of urban air pollution
Source: World Health Organization, WHO website, http://www.who.int, accessed 18 October 2011.
The air quality in selected Asian cities over the period 1993-2009 is presented below in
Figure VII-9 below. On average, NO2 levels were fairly low even at the start of the period, and there has
been a modest decline over the period. By the end of the period, the average across the 243 cities in the
sample was below the World Health Organization (WHO) standard, but in 63 cities in the region
experiences levels of NO2 pollution that exceeded the standard.153 Similarly, while there was a significant
improvement in SO2 levels over the observation period, in 51 of the 213 cities for which 2008 data is
available, average daily concentrations of SO2 levels exceeded the World Health Organization (WHO)
standard.
However, the major air pollution challenge facing the cities of the region is the reduction of
particulate emissions. Although there was some improvement over the period 1993 to 2001, the average
concentration of particulate matters has subsequently increased. By 2008, much of the modest gain that had
been achieved in the first half of period has been reversed, and the average level across the sample
approaching 90 µg/m3 – this is four-and-a-half times the WHO Air Quality Guidelines (20 µg/m3) and well
in excess of even the WHO Interim Target 1 of 70 µg/m3.154 CAI-Asia reports two cities with annual
average PM10 concentrations of above 250 µg/m3, with a further six cities with particulate pollution at or
about that level. In total, 10 per cent of all the cities in the CAI-Asia sample have annual average PM10
concentrations above 200 µg/m3 – ten times the level recommended by the WHO.155 This is a serious health
concern: outdoor air pollution, particularly due to transport emissions, therefore has the potential to
significantly affect human health and mortality. The WHO has estimated that, worldwide, the annual
number of premature deaths caused by urban air pollution is in excess of 1 million per year.156
153
Clean Air Initiative for Asian Cities Center, Air quality in Asia: Status and Trends, 2010 Edition, Pasig City, Philippines. Note
that the WHO standard is set as the average over a 24-hour period, rather than an annual average.
154
The WHO notes that the Interim Target 1 levers ‘are associated with about a 15 per cent higher long-term mortality risk
relative to the AQG level’. (WHO, WHO Air Quality Guidelines for particulate matter, ozone, nitrogen dioxide and sulphur
dioxide: global update 2005 – summary of risk assessment, WHO Press, Geneva).
155
Clean Air Initiative for Asian Cities Center, op cit.
156
World Health Organization, Global health risks: Mortality and burden of disease attributable to selected major risks, WHO,
Geneva, 2009.
106
Review of Developments in Transport in Asia and the Pacific 2011
Figure VII-9. Air Quality in Asia: Average annual ambient AQ levels, 1993-2009
Source: Clean Air Initiative for Asian Cities, 2011. www.citiesact.org.
Note: Not all cities have reported data for PM10, SO2 and NO2 consistently from 1993 to 2009.
AQ = Air quality. µg/m3 = micrograms per cubic metre. Red line represents United States Environmental Protection Agency’s National Ambient
Air Quality standards; purple line represents European Union Air Quality standards; blue line represents WHO’s air quality guidelines.
2. Policies to address the dual challenges of climate change and air pollution
The transport sector, like other economic sectors, is expected to play a part in the emissions
abatement challenge. However, unlike other sectors such as energy production and distribution which are
more geographically concentrated, transport emissions come from a huge number of individual, privately
owned vehicles, and therefore pose an enormous challenge for policy-makers. For example, with the
coming into force of the Kyoto Protocol in 2005, many of the 37 major industrial countries and members of
the European Community which were bound by the agreement introduced various measures to reduce their
greenhouse gas emissions, including measures to reduce emissions from transport.157 However, the various
market-based tools offered under the Kyoto Protocol, namely emissions trading – known as “the carbon
market”, the Clean Development Mechanism (CDM), and Joint Implementation (JI) project have not been
widely utilized by governments to address emissions from the transport sector, partly because the first
methodology for transport projects under the CDM was only approved by the Executive Board of the
United Nations Clean Development Mechanism in 2006.
The commitments made under the Kyoto Protocol extend only to 2012. It was widely hoped that
a new agreement containing binding commitments from both developed and developing countries would be
achieved at the 16th “Conference of the Parties” held in Copenhagen in December 2009, but the Conference
did not produce an enforceable agreement on greenhouse gas targets. It did, however, result in the
Copenhagen Accord, which articulated a number of important principles and provided a framework for
voluntary commitments to targets for, and/or programmes for the reduction of, GHG emissions. These were
further negotiated during the 17th meeting of the “Conference of the Parties” held in Cancun, Mexico in
2010, where the Copenhagen Accord, which, one year earlier, had merely been “noted”, was formerly
adopted. By doing so they agreed to keep temperature increases below a global average of 2 degrees
Celsius. This brought this aspiration, as well as the emission pledges of individual countries, into the formal
United Nations process for the first time.
157
The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005.
VII. Safe and Sustainable Transport
107
The contribution that transport makes towards greenhouse gas emissions and other forms of
pollutants will continue to pose significant challenges for policy makers in the future. These challenges
must be addressed at every level of government. At the national and subnational levels, governments have
a leading role to play, for example, by taking into consideration energy efficiency and pollution effects
of national transport planning; investing in “eco-efficient and socially inclusive” infrastructure, or
infrastructure that will “create more value with less impact”; and setting national legislation to minimize the
negative impacts of transport. Legislation to control environmental impacts of transport, however, has been
relatively ineffective due to limited institutional capacity and weak enforcement: despite the fact that most
countries in the ESCAP region now have clearly defined air quality standards, in many cases these fall short
of the latest WHO recommendations.
Table VII-4. Air Quality Standards – Selected ESCAP Economies (µg/m3)
PM2.5
Economy
24-Hr
PM10
Annual
24-Hr
Annual
SO2
NO2
O3
24-Hr
Annual
8-Hr
CO (’000)
1-Hr
Pb
8-Hr
Annual
Afghanistan
–
–
–
–
–
–
–
–
–
–
Bangladesh
65
15
150
50
365
100
157
40
10
0.5
Bhutan
–
–
–
–
–
–
–
–
–
–
Cambodia
–
–
–
–
300
–
–
40
20
–
China: Grade I
–
–
50
40
50
40
–
10
–
1.0
China: Grade II
–
–
150
100
150
80
–
10
–
1.0
China: Grade III
–
–
250
150
250
80
–
20
–
1.0
Hong Kong, China
–
–
180
55
350
80
–
30
10
–
India*
60
40
100
60
80
40
100
4
2
0.5
India**
60
40
100
60
80
30
100
4
2
0.5
Indonesia
–
–
150
–
365
100
–
30
–
1.0
Lao People’s Democratic
Republic
–
–
–
–
–
–
–
–
–
–
Malaysia
–
–
150
50
105
–
120
35
10
–
Mongolia
–
–
–
–
30
–
–
–
–
–
Nepal
–
–
120
–
70
40
–
–
10
0.5
Pakistan
–
–
–
–
–
–
–
–
–
–
Philippines
–
–
150
60
180
–
60
35
10
1.0
Republic of Korea
–
–
100
50
131
56
118
28.6
10.3
0.5
Singapore
35
15
150
–
365
100
147
40
10
–
Sri Lanka
50
25
100
50
80
–
–
30
10
–
Thailand
–
–
120
50
300
–
140
34
10
–
Viet Nam
–
–
150
50
125
40
120
30
10
0.5
25
10
50
20
20
40
100
30
10
0.5
WHO
Source: Clean Air Initiative for Asian Cities Center, Air quality in Asia: status and trends, 2010 Edition, Philippines.
Notes: Red indicates a less stringent standard than WHO recommended levels; green indicates equal to or stricter than WHO standards
China: Grade I = applies to specially protected areas, such as natural conservation areas, scenic spots, and historical sites; China: Grade II =
applies to residential areas, mixed commercial/residential areas, cultural, industrial, and rural areas; China: Grade III = special industrial areas;
India* = NAAQS for Industrial, Residential, Rural and Other Areas; India** = NAAQS for Ecologically Sensitive Areas (notified by Central
Government); Pb = lead; PM10 = Particles with aerodynamic particle diameters of 10 micrometers or less; PM2.5= Particles with aerodynamic
particle diameters of 2.5 micrometers or less.
In order to meet the needs of the environment, policy makers have taken a combination of measure
including: the development of new transport technologies, increased use of renewable energy sources,
changes in economic geography and urban form, and new and more sophisticated forms of demand
management. The following sections focus on three separate but related policy measures: urban air
pollution abatement policies; development of rapid mass transit systems and promotion of non-motorized
transport in urban areas; and moving freight sustainably.
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Review of Developments in Transport in Asia and the Pacific 2011
Urban air pollution abatement policies
One of the major policy instruments available to governments in reducing impact of transport
activities on air quality is the specification of vehicle emissions standards. As part of China’s Air Quality
Regulations of 2010, for example, there are provisions to tighten the approval process for newly produced
motor vehicles, while the production, sale and registration of vehicles which fail minimum vehicle
standards is prohibited (see Box VII-2).
Box VII-2. New Clean Air Regulations in China
In 2010, China introduced new Air Quality Regulations. The regulations provide guidance to ‘all provinces,
autonomous regions and municipalities directly under the Central Government, all ministries and commissions of
the State Council, and all institutions directly under the State Council’ and set out the policies and strategies to be
adopted by these bodies to improve air quality. The regulations include four strategies that specifically address the
reduction of emissions from motor vehicles:
Strict implementation of national motor vehicle emission standards by tightening approval procedures for
newly produced motor vehicles, and prohibiting production, sale and registration of vehicles that fail to comply with
the national motor vehicle emission standards. The regulations also include expansion of the government subsidy
programme for replacement of old vehicles, and call for ‘vigorous’ development of clean energy automobiles.
Improve the motor vehicle environmental management system through strengthening the inspection of
motor vehicle compliance with emission standards, introduction of motor vehicle environmental labelling. The
regulations also call for consideration of tax policies that promote motor vehicle pollution prevention and control.
Accelerate the use of clean vehicle fuels through promotion of low-sulphur vehicle fuels, acceleration of
improvements in oil refineries, and increasing the market supply of quality vehicle fuels. The regulation also for
acceleration of the development of improved fuel quality standards.
Development of public transportation through improved infrastructure, prioritization of public transit in
transportation strategy, speeding up the construction of dedicated bus and electric vehicle lanes (roads), and
establishing signal systems that give priority to public buses. The regulation also calls for improvement of the
conditions for residents to travel on foot or by bicycle.
Source: China’s New Regional Air Quality Regulation – translated, viewed on the Network for Climate and Energy Information website
(a World Resources Institute website) http://www.chinafaqs.org, 22 October 2011.
In Japan, the Ministry of Environment is jointly working with other ministries, is preparing to
tighten its already stringent tailpipe emissions requirements on NO2, PM, sulphur oxides (SOx), and carbon
dioxide (CO2) for ethanol-fueled vehicles, and heavy-duty, diesel-powered vehicles. These new emissions
standards under development are likely to apply to vehicle manufacturers and importers by the end of
2016.158 Meanwhile, the Russian Federation has recently proposed linking vehicle tax rates to the emissions
class to which they belong – with higher rates imposed on higher polluting vehicles. The proposal would
keep the basic tax rate on vehicles meeting the Euro-4 equivalent emissions level, currently at 2.5 to 15.0
roubles per unit of horsepower depending on the vehicle class. However, the basic tax rate for vehicles
meeting the Euro-3 equivalent emissions would be raised by about 20 per cent, and for vehicles only
meeting the Euro-2 equivalent standards the rate would increase by about 60 per cent.159
Another major policy instruments available to governments in reducing impact of transport
activities on air quality is the specification of fuel standards. Over the past few decades, there are two main
areas in which fuel standards have been tightened in an endeavour to improve air quality and, as
a consequence, improve public health: the elimination of lead from fuels and reduction in sulphur levels.
The presence of lead, even in relatively low concentrations, was found to have harmful health effects on the
development of the central nervous system of foetuses and children, and many studies confirmed that motor
158
159
“Japan to toughen tailpipe emission standards”, ACFA News, Nov./Dec. 2010, Asian Clean Fuels Association.
“Russia considering tax rate like to emission levels”, ACFA News, Nov./Dec. 2010, Asian Clean Fuels Association.
VII. Safe and Sustainable Transport
109
vehicle exhausts were a significant source of lead in the urban air.160 By 2000, 42 countries, mainly from
the developed world, had banned the use of lead as an additive in transport fuels.161 Other countries have
gradually followed suit, and leaded petrol is now in use in only three countries of the ESCAP region (see
Table VII-5).
Table VII-5. Fuel standards in selected ESCAP countries
Economy
Unleaded petrol
Sulphur – max permitted
Diesel
Petrol
Afghanistan
Leaded
Armenia
Unleaded
10,000
50
Australia
Unleaded
10
Azerbaijan
Unleaded
1,000
Bangladesh
Unleaded
5,000
Bhutan
Unleaded
500
Brunei Darussalam
Unleaded
1,000
Cambodia
Unleaded
1,500
China
Unleaded
2,000
Fiji
Unleaded
500
Georgia
Unleaded
350
500
Hong Kong, China
Unleaded
50
50
150
1,000
150
India
Unleaded
500
Indonesia
Unleaded
3,500
Islamic Republic of Iran
Unleaded
5,000
Japan
Unleaded
10
Kazakhstan
Unleaded
2,000
500
1,000
Kiribati
Unleaded
Kyrgyzstan
Unleaded
2,000
Lao People’s Democratic Republic
Unleaded
2,500
Macao, China
Unleaded
Malaysia
Unleaded
Maldives
Unleaded
Marshall Islands
Unleaded
500
Micronesia (Federated State of)
Unleaded
Mongolia
Unleaded
5,000
Myanmar
Leaded
2,000
Nauru
Unleaded
Nepal
Unleaded
500
New Zealand
Unleaded
10
Niue
Unleaded
500
500
Pakistan
Unleaded
Palau
Unleaded
5,000
Papua New Guinea
Unleaded
Philippines
Unleaded
500
500
Republic of Korea
Unleaded
50
10
Russian Federation
Unleaded
350
150
Samoa
Unleaded
Singapore
Unleaded
50
500
Solomon Islands
Unleaded
160
Swapan K. Biswas et al., Impact of Unleaded Gasoline Introduction on the Concentration of Lead in the Air of Dhaka,
Bangladesh, Journal of the Air & Waste Management Association, 53: 1355-1362.
161
Facts and Firsts about Lead, viewed on the website of the LEAD Group Inc., http://www.lead.org.au, 22 October 2911.
110
Review of Developments in Transport in Asia and the Pacific 2011
Table VII-5. (continued)
Economy
Sri Lanka
Unleaded petrol
Sulphur – max permitted
Diesel
Petrol
Unleaded
500
Tajikistan
Unleaded
2,000
1,000
Thailand
Unleaded
350
500
Timor-Leste
Unleaded
Tonga
Unleaded
Turkey
Unleaded
10
10
Turkmenistan
Unleaded
2,000
1,000
Tuvalu
Unleaded
Uzbekistan
Unleaded
5,000
1,000
Vanuatu
Unleaded
Viet Nam
Unleaded
500
500
Source: United Nations Environment Programme, Matrix indicating status of leaded gasoline by country, Middle
East, North Africa & West Asia; Matrix indicating status of sulphur in diesel by country [Actual Sulphur Levels],
Middle East, North Africa & West Asia; » Matrix indicating status of leaded gasoline by country, Asia-Pacific
Matrix indicating status of sulphur in diesel by country, Asia-Pacific; Fuel Quality Information Matrix, Central and
Eastern Europe. Viewed on UNEP website, http://www.unep.org, 22 October 2011.
Note: India and China have lower limits for some urban areas.
Policies to reduce sulphur levels in fuels have been less effective due to the popularity of diesel
fuels. Sulphur oxides (SOx), especially when present as particulate sulphates (particulate matter may be
formed in the atmosphere from SOx precursors) have local health and environmental effects, such as
impacts on respiratory health and asthma. SOx are gaseous emissions formed by the oxidation of fuel
sulphur during the combustion process and depend entirely on the level of sulphur in the fuel. (NOx).
Diesel fuels tend to be particularly high in sulphur, and diesel PM is of special concern because diesel
exhaust has been associated with an increased risk of lung cancer. Additionally, SOx emissions result in the
acidification of local environments, damaging buildings, and urban greenery (e.g. trees and shrubs). Finally,
reducing sulphur to very low levels (50 ppm and less) not only reduces PM emissions but also enables the
introduction of emission control technologies that provide even greater emission reductions. Initiatives such
as the Partnership for Clean Fuels and Vehicles (PCFV) are promoting the reduction of sulphur in vehicles
fuels to 50 parts per million (ppm) or below worldwide, concurrent with clean vehicles and clean vehicle
technologies, with roadmaps and timelines developed regionally and nationally.162
At the urban (or local level), air pollution abatement strategies vary significantly between countries
and cities in terms of the focus of attention on the different types of pollutants, and their source. This is
primarily due to the need to target specific pollutants and emissions whilst working within the framework of
local, national and regional policy frameworks. Table VII-6 shows some of the recent initiatives introduced
by municipal authorities of the region.
3. Moving people sustainably
Governments in the region’s urban areas, particularly the large cities, have recently been investing
in Mass Rapid Transit (MRT) projects. The term “Mass Rapid Transit” refers to “public transport modes
operating on fully or partially exclusive tracks (rail or road), away from street traffic and are thus subject to
full or at least considerable managerial control by the operator”.163 In a number of cases, these projects are
undertaken with private sector participation.
162
United Nations Environment Programme, Opening the door to cleaner vehicles in developing and transitional countries: the
role of lower sulphur fuels, Report of the Sulphur Working Group of the Partnership for Clean Fuels and Vehicles (PCFV),
UNEP, Nairobi, undated.
163
World Bank Public Transport Modes & Services, viewed 11 August 2005, http://web.worldbank.org
VII. Safe and Sustainable Transport
111
Table VII-6. Measures to improve urban air quality
City
Delhi, India
Initiative
Delhi was the host city for the Commonwealth Games in 2010. Preparation for the Games served as an
additional stimulus to long term plans to improve air quality in the city. However, it has been pointed
out that the air quality measures adopted during the Games were part of larger plan which included
upgrading fuel quality, shifting and closing of industries, development of new standards for PM2.5,
benzene and ozone comparable to European Union’s standards and World Health Organization’s
guidelines.164 The principal transport related measures adopted to improve air quality in Delhi are:
O
O
O
O
O
O
Expansion of public transport (in particular the Delhi Metro)
Phasing out of old public transport
Conversion of all buses to CNG mode
Introduction of unleaded petrol and catalytic converter
Reduce sulphur content in diesel
Adopting EURO standards for vehicle emissions.165
Jakarta, Indonesia
In Jakarta, transport activities are the main source of hydrocarbon, carbon monoxide and nitrogen
oxide emissions, and a significant contributor to particulate emissions, while industry is the main
source of sulphur dioxide emissions. The Jakarta provincial government has responded through a series
of measures, including the passage of a bylaw to prevent, control, monitor and mitigate air pollution.
Subsequent implementing regulations provide for gas fuel use in public transport and government
operational vehicles; and vehicle emission testing and maintenance.166 In 2008, the Jakarta city
administration introduced a Car Free Day on the last Sunday of every month along Jalan Sudirman and
Jalan Thamrin. The administration recently announced that the frequency of the Car Free Day will now
be increased to once a week.167 The municipal public transport agency, TransJakarta, also developed
the first full BRT system in Asia.168
Istanbul, Turkey
The Istanbul Metropolitan Municipality has adopted a multi-pronged Action Plan to reduce vehicle
emissions as part of its broader strategy of air quality improvement. The Plan includes:
O
O
O
O
O
O
O
O
Mandulayong,
Philippines
164
Raising awareness about the environmentally friendly driving techniques.
Using filter and catalytic converter systems for exhaust emission control on vehicles.
Reducing pollution through the use of environmentally acceptable vehicles and fuels in public
transportation.
Promoting alternative and more sustainable modes of transport to the cars.
Improving and popularizing marine transportation.
Promoting the implementation of Park and Ride applications.
Application of traffic congestion charge.
Improving major transportation infrastructure.169
About 34 per cent of total vehicular population in the Philippines is made up of two- and threewheelers, which are major causes of air and noise pollution, traffic congestion and accidents. Despite
all the negative impacts of tricycles, they remain a major transport tool to the residents in the local
government units (LGUs). The city of Mandaluyong launched a programme aimed to replace the existing
fleet of tricycles with more environmentally friendly substitutes. Following agreement with the tricycle
federations, a city ordinance has announced the ban of 2-stroke tricycle operations in the city.170 At the
Clean Air Initiative for Asian Cities (CAI-Asia) Center, Communicating Air Quality during the Commonwealth Games 2010
Delhi, Report on the Post-CWG AQM Workshop held on 8 March 2011, Central Pollution Control Board, Delhi, India.
165
AQM [Air Quality Management] Measures in Delhi 2010, viewed on the Clear Air Initiative megaevents website, http://
megaevents.cleanairinitiative.org, 22 October 2011.
166
GTZ, Indonesia Country Profile: Focus on Smaller Cities, report prepared for CAI-Asia Center, 2009.
167
Jakarta’s Car Free Day to Be Expanded, 19 June 2011, viewed on the website of the Jakarta Globe, http://
www.thejakartaglobe.com, 23 October 2011.
168
Making TransJakarta a World Class BRT System, Final Recommendations of the Institute of Transportation and Development
Policy, June 30, 2005.
169
Istanbul Metropolitan Municipality, Istanbul Air Quality Strategy, 2009, downloaded from the Istanbul Metropolitan
Municipality website, http://www.ibb.gov.tr, 21 October 2011.
170
Transport measures and policies to promote emission reductions, Philippines, viewed on website of the Sustainable Urban
Transport Initiative, http://ww.sutp.org, 23 October 2011.
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Table VII-6. (continued)
City
Initiative
same time, together with CAI-Asia and its country network Partnership for Clean Air, a microfinancing scheme was set-up to replace existing 2-strokes tricycles with 4-stroke motorcycle engines to
lessen carbon emissions. In addition, ADB sponsored a trial of twenty electrically powered tricycles.
These will have an estimated range of 200 km and will cost around PHP 45 to recharge, compared to
PHP 235 for the fuel used by a petrol-driven tricycle to cover the same distance.171
Mandulayong,
the Philippines
(continued)
Shanghai, China
Shanghai has a car plate auction system for interested vehicle buyers. Shanghai only allows 50,000
new vehicles to be registered every year. Shanghai has an extensive bus system covering many
different routes and its metro system is the largest in the world (in terms of length) and one of the top
10 busiest.
Rail-based Mass Rapid Transit Systems
Rail-based MRT systems have many advantages. Most notably, rail-based systems can provide
high capacity as well as high quality services. At the same time, however, they require considerable
funding, and their viability is contingent upon high passenger flows. Several Asian megacities have welldeveloped or are in the process of developing rail-based MRT systems: underground rail systems are
already a long-established feature of the cities of Tokyo, Hong Kong, China; and Seoul, and their systems
continue to be enhanced and improved. More recently, rail-based public transport systems have also been
introduced in several other Asian cities, including light rail (Bangkok, Manila, Changchun) and metro
(Beijing, Delhi, Nanjing, Shanghai) systems. Other cities in which rail-based mass transit systems have
either been implemented, are planned or are under active consideration, include Busan, Daegu and Incheon
(Republic of Korea), Kolkata, Chennai and Mumbai (India), Tianjin and Chongqing (China), Karachi
(Pakistan); Tbilisi (Georgia) and Dhaka (Bangladesh). Details of selected recent rail-based MRT projects
are provided in Table VII-7.
Table VII-7. Selected recent rail mass transit developments in the ESCAP region
City
Changchun, China
Investment projects
Changchun metro and railway lines
The new mass transit system in Changchun, a city situated in north-eastern China, is said to be the first
new light rail transit system in China. The initial phase of Line 3 was completed in 2001, while the
second phase was completed in 2007. Trial service on the second light rail line, Line 4, began in June
2011. This 17 km north-south route includes three underground stations on its northernmost section,
while the rest of the line runs mostly elevated along Linhe Street (Linhejie). A further north-south line
(Line 1) and East-West line (Line 2) are planned for completion by 2020.
Chongqing, China
Chongqing subway
Chongqing’s first full subway runs from Chaotianmen (passenger port) at the east end of the central
district to Shapingba in the west. The initial section is 16.4 km, with 14 stations. In the long term it will
be extended to Shuangbei, a further 6.2 km. Limited service started between Jiaochangkou (L2) and
Shapingba in July 2011. Line 6, the second full subway, is schedule for completion in 2012.
Beijing, China
Beijing suburban metro lines
The first sections of four suburban metro lines opened on 30 December 2010: Changping Line, Daxing
Line, Fangshan Line and Yizhuang Line. The Daxing Line is connected directly to Subway Line 4,
with metro trains running through on the mostly underground suburban route. Until metro line 9 is
opened, the Fangshan Line is not directly linked to the existing subway network. The suburban subway
lines share the same specifications with the urban lines, but typically have longer average station
distances and run partly on the surface.
171
Carlo Suerte Felipe, Mandaluyong tests e-trikes, November 22, 2010, viewed on the website of Manila Bulletin Publishing
Corporation, 23 October 2011.
VII. Safe and Sustainable Transport
113
Table VII-7. (continued)
City
Shanghai, China
Investment projects
Shanghai metro lines
Shanghai’s metro system is one of the most rapidly expanding in the world. Recently completed
extensions to the metro network include the extension of Line 2 to Pudong International Airport
(completed April 2010); the extension of Line 6 and Line 8 to the Oriental Sports Stadium (April
2011); and the construction of Lines 10, 11 and 13.
Delhi, India
Delhi Metro System:
Development of the Delhi Metro System has been under consideration for over 50 years. Scheduled for
completion by 2021, the master plan includes the construction of 240 kilometres of high capacity rail
transit.
As of July 2011, with the Airport Express Line in service, the Delhi Metro system comprises six lines
with a total length of ~190 km and 142 stations. Recent extensions to the system include: a 28-km
extension of Yellow Line (line 2), completed September 2010; extension of the Blue Line (lines 3
and 4) to Dwarka Sector 21 and Vaishal, completed July 2011extension of Green Line (line 5) to
Mundka and connection of this line to the Blue Line at Kirti Naga; and completion of the new Violet
Line (line) and Orange Line Lines (Airport Express Line).
Bangkok, Thailand
BTS Extension and Airport Link
The extension of the Sukhumvit Line of the BTS system from On Nut eastwards to Bearing was
completed in August 2011. A further extension in this direction to Samut Prakhan has been contracted,
while extension at the other end of the line from Mo Chit to Lm Lukka is planned.
In 2010, the Airport Link from Makkasan to Suvarnabhum Airport was brought into operation. This
line is also used for the City Line commuter service.
Kolkata, India
Kolkata Metro
Construction of Line 2 started in 2009. It will run from Salt Lake (Bidhannagar) Sector 5 (in east) to
Howrah Railway Station (in west). Unlike line 1, which is operated by Indian Railways, line 2 will be
operated by a new company – Kolkata Metro Rail Corporation (KMRC). Trains will be air
conditioned, and underground stations would have platform screen doors. It will use standard gauge,
like Kolkata tram, but unlike line 1, which uses broad gauge. It will be elevated along the eastern
section through Salt Lake City.
Mashad, Islamic
Republic of Iran
Mashad “Urban Railway”
Baku, Azerbaijan
Baku Metro extension
Mashad’s “Urban Railway” is a completely segregrated light rail system, using low-floor rolling stock
manufactured by CNR Changchung. The first line now in operation is an 18 km east-west route with
22 stations, of which about 9 km and 11 stations are underground. Construction works began in
December 1999, and regular services commenced in October 2011.
During 1970-1980s, a 2-line network of 52 km and 33 stations was planned to be completed by the
year 2000. In 2010, however, a new Baku metro development master plan was announced, which sets
a target of 5 lines, 119 km of track and 76 stations by 2030. Construction works started in August 2011.
Sources: http://www.urbanrail.net (viewed in October 2011).
Bus Rapid Transit (BRT) systems
Bus rapid transport, or BRT, systems, refer to high-capacity buses which operate in segregated bus
lanes and allow rapid loading and unloading of passengers at stations. Buses used in such systems are often
articulated, meaning that they feature a pivotal joint connecting an additional trailer, thereby allowing for
a longer bus which can still negotiate turns safely. Most BRT systems utilize electronic fare pre-payment
systems and level access to decrease the stopping times at stations. BRT systems can be attractive
economical alternatives to rail-based MRT systems especially but not exclusively in developing countries,
as BRT systems tend to be cheaper and faster to construct, more profitable to operate and cheaper for
commuters.
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Review of Developments in Transport in Asia and the Pacific 2011
Across Asia there is increased interest in the development of BRT, which can also contribute to the
reduction of congestion and pollution within cities. Approximately 40 cities across Asia now have
operational Bus Rapid Transit systems. China is now formally integrating BRT projects into its plans to
improve urban public transportation, and the largest number of BRT systems that are planned, under
construction or under consideration are in Chinese cities. However, there are also over a dozen cities in
India constructing or planning BRT systems. Table VII-8 provides details of selected BRT projects across
the region.
Table VII-8. Bus Rapid Transit (BRT) projects in the ESCAP region
City
Ahmedabad, India
Projects
Ahmedabad BRT
The Ahmedabad BRT system consists of 38 km of dedicated busway located in the centre of the road.
There are 57 stations are located at approximately 700 m intervals along the route. The system uses
a fleet of 70 dedicated BRT diesel buses. The first 12 km came into operation in 2009, with the full
system becoming operational in 2010. As at June 2011, the average daily patronage was 115,000.
Bangkok, Thailand
Bangkok BRT
On 15 May 2010 the first Bus Rapid Transit line commenced service linking Sathorn to Ratchapruek
across the Chao Phraya River in Thonburi. This is the first of 14 Bus Rapid Transit lines ultimately
serving the greater part of the city in the next decade. In the first phase, there will be five BRT lines.
The existing and planned Bangkok BRT lines will link to existing skytrain and subway lines and
planned mass rapid transport lines. The BRT uses custom-built air-conditioned buses on dedicated bus
lanes on the outer lanes of the road.
Changzhou, China
Changzhou BRT
The development of the Changzhou BRT was completed in 2009. The system consists of two
intersecting corridors comprising a total of 41 kms located in the centre of the roadway, with
51 stations at an average separation of approximately 900 m.
Guangzhou, China
Guangzhou BRT
A new BRT line in Guangzhou opened in February 2010. The BRT line starts from Guangzhou Dadao
in Tianhe District in the west and runs along Tianhe Lu, Zhongshan Dadao and Huangpu Donglu
before reaching Luogang Kaifa Dadao. The route runs 23 km and has a total of 26 bus stops (1 more is
expected to be added in 2011).172 Peak ridership at any point is around 27,500 passengers per hour in
one direction, and total passenger volumes average 805,000 trips per day. The Guangzhou BRT is the
first high capacity ‘direct-service’ BRT system, in which BRT buses can enter and leave the BRT
corridor, and the first BRT system to include direct physical connections between BRT stations and
metro stations.
Hefei, China
Heifi BRT
The Hefei Bus Rapid Transit system opened in 2010. It uses a combination of 7.7 km of dedicated
busway and 15 kilometres of bus lanes, with a total of incorporating 9 stations at intervals of
approximately 850 m along the dedicated busway. Peak traffic level is 2,700 persons per hour in one
direction.
Tehran, Islamic
Republic of Iran
Tehran BRT
The city of Tehran has seven BRT lines operating in various directions.
Line 1 was inaugurated in January 2008. It comprises an 18-km route in the east-west direction
between Tehran-Pars and the Azadi Terminal. The line is characterized by a segregated corridor with
median arterial runway, median-located stations, and low-floor left-door buses. It does not operate
express buses. Investment on Line 1 was US$ 80 million.
Line 2 also operates in the east-west direction along a 20-km route between Khavaran Terminal and
Azadi Terminal. It has its own segregated corridor, reserved platforms and stations located at the side
of the roads. The line operates about 250 express and normal buses. It was inaugurated in September
2008 and currently carries more than 270,000 commuters daily.
172
The official website of the 16th Asian Games, http://www.gz2010.cn, Guangzhou Bus Rapid Transit (BRT) to open in
January, viewed on 4 January 2010.
VII. Safe and Sustainable Transport
115
Table VII-8. (continued)
City
Projects
Line 3 runs in a north-south direction between Khavaran Terminal and Elm-O-San’nat Terminal over
a distance of 14 km. The route operates 120 buses, carrying 150,000 commuters daily.
Other lines which have started operations in 2010 include:
Line 4 between Parkway and the South terminal,
Line 5 between the Elm-O-San’nat Terminal and the Olympic Village,
Line 6 between Parkway and Hafte Tir, and
Line 7 between Tajrish and Railway Square.
These lines together operate more than 2,000 articulated buses.173
Hanoi, Viet Nam
Hanoi BRT
With financial assistance from the World Bank, the Japan Policy and Human Resources Development
Fund and the Global Environment Fund (GEF), the Hanoi People’s Committee Transport and Urban
Works Projects Management Unit is investing US$ 170 million in an ongoing Urban Transport
Development Project (HUTDP). The project has three components. The first of these covers an
estimated US$ 60-90 million of investment into developing the city’s bus network. Project activities
include increasing the capacity of the bus system, building two experimental BRT routes, developing
bus maintenance facilities, and the implementation of modern secure ticketing systems.174
Jakarta, Indonesia
Jakarta BRT
TransJakarta was the first full BRT system in Asia. It was opened on a single route in January 2004,
was constructed by the municipal government of Jakarta and cost US$ 49 million. The TransJakarta
system now encompasses ten routes and 145 stations, spanning a total of 119 km of dedicated busweay.
The planned system includes 14 corridors. ITDP data shows there were only 30,000 passengers a day
in the busway’s first operational year in 2004. By April 2011, the number of busway passengers has
now increased to 330,000 day, with the peak volume on an individual route reaching 3,000 per hour.175
Source: Unless otherwise indicated, information is from China Bus Rapid Transit website, http://www.chinabrt.org, viewed 25 October 2011.
Promotion of Non-motorized Transport (NMT)
Non-motorized transport (NMT), such as walking, bicycles and three-wheel pedal-powered
vehicles, is still an important form of transportation for many people in a number of Asia’s major cities.
A recent ADB report examines a cross-section of 19 Asian cities and finds pedestrian mode share to range
from 40 to 63 per cent (see Figure VII-10).176 Separate studies conducted under the Clean Air Initiative –
Asia on sustainable transport indicators in Pune (India), Hanoi (Viet Nam) and Xi’an (China) found that
60 per cent of all trips in each of these cities are walked, cycled, in two-wheelers, or in cycle rickshaws
(Pune and Hanoi) and three-wheeled rickshaws (Pune).
However, increased motorization in many Asian cities means that “walking and non-motorized
transport... traditionally the main means of transport in emerging Asia… are becoming more difficult and
less socially acceptable in many Asian cities.”177 Leather et al. report that: “in Hanoi, many trips could be
made by foot and bicycle because average trip lengths are low. But poor infrastructure forces people to
abandon walking and cycling and use motorcycles instead. The situation is similar in Manila where nearly
35 per cent of destinations are within a 15-minute walk or bicycle trip, but the majority of short trips are
made by paratransit (jeepneys and tricycles) and cars. In Surabaya, a city that is only 15 km from north to
173
BRT in Iran: Beneficiary of country’s transportation reforms, July 1, 2011, viewed on website of Global Mass Transit, http://
www.globalmasstransit.net, viewed 26 October 2011.
174
World Bank (2004), VN-Hanoi Urban Transport Project, [Project Information Document (PID) Concept Stage], (World Bank,
Washington), viewed on World Bank website projects database, www.worldbank.org
175
Jakarta Post, Busway system could save Rp 235 billion in subsidies, 7 February 2008.
176
James Leather, Herbert Fabian, Sudhir Gota, and Alvin Mejia Walkability and Pedestrian Facilities in Asian Cities: State and
Issues, ADB Sustainable Development Working Paper Series, ADB, Manila, February 2011.
177
Asian Development Bank, Energy Efficiency and Climate Change Considerations for On-road Transport in Asia, Working
Paper Consultation Draft, 19 May 2006, viewed October 2007, http://www.cleanairnet.org/caiasia/1412/articles-70656-draft2.pdf.
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Review of Developments in Transport in Asia and the Pacific 2011
Figure VII-10. Pedestrian mode share in Asian Cities
Chongqing, China, 2002
Dhaka, Bangladesh, 1999
Haiphong, Viet Nam, 2007
Shimla, India, 2008
Zhuzou, China, 2000
Gangtok, India, 2008
Lanzhou, China, 2001
Shenzhen, China, 2005
Surat, India, 2005
Mysore, India, 2005
Chennai, India, 2002
Ghangzhou, China, 2003
Bikaner, India, 2008
Jaipur, India, 2005
Weihai, China, 2005
Nanchang, China, 2003
Urumqi, China, 2006
Pondicherry, India, 2008
Dongguan, China, 2006
0
10
20
30
40
50
60
70
Pedestrian Mode Share
Source: Leather et al., Walkability and Pedestrian Facilities in Asian Cities: State and Issues.
south, over 60 per cent of trips are under 3 km, but they are mostly made by motor vehicles such as
motorcycle mopeds or by paratransit modes.”178
The needs of non-motorized transport have been ignored in conventional planning strategies and
have been assigned lower importance compared to other vehicles on the road.179 But NMT remains
a viable option to meet the basic mobility needs of all groups in an environmentally sustainable way. The
endorsement of “segregated walk- and bike-ways to provide the safety and user-friendliness that these
activities require” is a necessity.180 There are some signs of increasing formal recognition of the importance
of pedestrian movements in urban transport planning. The Dhaka Strategic Transport Plan, for example,
explicitly adopts a ‘Pedestrian First’ philosophy.181 Examples of cities which promote the use of the bicycle
as a sustainable means of transportation are given in Table VII-9 below.
178
Leather et al., op. cit.
Garima Nayyar, People first: Time for some democracy on the streets, The Times of India, 4 June 2010,
180
Asian Development Bank, Energy Efficiency and Climate Change Considerations for On-road Transport in Asia, Working
Paper Consultation Draft, 19 May 2006, viewed in October 2007, http://www.cleanairnet.org/caiasia/1412/articles-70656draft2.pdf.
181
Leather et al., op. cit.
179
VII. Safe and Sustainable Transport
117
Table VII-9. Urban Policies promoting the use of Bicycles
City
Policy
Metro Manila,
the Philippines
Bicycle lanes have been developed in Marikina, Metro Manila, the Philippines as part of the greater
Metro Manila Urban Transport Integration Project, co-financed by the World Bank and the
Government of the Philippines. Implemented by the Global Environment Facility (GEF), the
component includes the construction, evaluation and promotion of the Marikina Bikeway System –
a 66 kilometre network of trails and road lanes designed specifically for NMT, plus bicycle parking
and traffic calming systems. It is hoped that the new NMT-friendly facilities will encourage the use of
NMT modes, and connection with the public transport terminals will promote the combined use of
NMT and train/bus for trips between Marikina and the rest of metropolitan Manila.
Tehran, Islamic
Republic of Iran
Tehran Municipality has implemented the first phase of a plan to provide public bikes together with
dedicated cycle routes. A pilot project in District 8 and during this period, 34 bicycle storage fracilities
have been established and about 2,000 bicycles have been distributed among them. It is reported that
8,000 people have enrolled to use the bicycle lane. There are plans to extend the scheme to districts 12,
20, and 22. In addition, the scheme will be extended to Chitgar Park, which has more than 120 km of
bicycle lanes, and there are plans to open special bicycle stations near BRT bus stops in the near
future.182
Chennai, India
A pilot initiative at Anna Nagar will see a dedicated cycle track will be developed on a 6.5-km stretch
and cycle lands will be developed in another seven-km stretch. A hierarchy of tracks will be developed
so that cyclists and pedestrians can share space.183
Shanghai, China
Authorities have decided to set up more bicycle lanes between major transport roads and hubs in order
to expand the coverage of bike-rental services. Commission officials have begun assessing road
conditions in preparation for building bike-connection lanes between major streets, bus and Metro
stations. The city’s transport bureau has also stated its intention to integrate bike-rental services in
more of under-construction Metro stations, especially in outlying areas. Shanghai started offering
bike-rental services on a trial basis last year in Zhangjiang High-tech Park in Pudong.184
4. Moving Freight Sustainably
Far less attention has been paid to moving freight sustainably than to moving people sustainably.
Yet the movement of freight generates a significant proportion of urban traffic, and an even higher
proportion of regional and inter-urban traffic. In recent work undertaken by the United Nations, a taxonomy
of measures that might be taken to improve the sustainability of freight movements was developed.185 This
is reproduced in Figure VII-11 below.
Reducing the volume of freight moved
The two main strategies for reducing the volume of freight moved are de-materialization of the
economy and the reduction in the movement of ‘unwanted’ freight. At the most general level, the
de-materialization of the economy may entail a change the way in which progress is conceived and
measured away from the predominance of indicators that indicate the volume of market transaction, such as
GDP or GNI, towards broader based measures of societal welfare.186 It is clear that without positive
specific policy action any inherent tendency for the economy to dematerialize as income increase will not
be sufficient to contribute significantly to the achievement of sustainability objectives. This has been
recognized by several ESCAP member countries through the adoption of specific policies aimed re-focusing
182
Tehran Reconciles with Bicycles, 17 May 2010, viewed on the website of the Iran Architecture and Urbanism News Agency,
http://news-en.aruna.ir, 25 October 2011.
183
Ajai Sreevatsan, Cycle lanes are a symbol of democracy, The Hindu, 13 July 2010.
184
Shanghai Daily, City thinks green in bike-only lanes plan, 20 October 2009, http://www.shanghaidaily.com, viewed on
4 January 2010.
185
Steve Meyrick, Indicators of eco-efficiency and sustainability for urban freight transport, paper prepared for Guidelines for
developing eco-efficient and socially inclusive infrastructure, UNESCAP (2011).
186
Redefining Progress, Economic Localization, accessed at the Redefining Progress website, http://www.rprogress.org,
25 April 2010.
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Review of Developments in Transport in Asia and the Pacific 2011
Figure VII-11. “Attack points” in reducing the environmental impact of urban freight transport
Source: Steve Meyrick, Indicators of eco-efficiency and sustainability for urban freight transport, paper prepared for Guidelines for developing
eco-efficient and socially inclusive infrastructure, UNESCAP (2011).
economic growth. For example, under the umbrella of the Law of the Circular Economy 2006, China’s
Resource Efficient and Environment-Friendly (REEF) Society Project incorporates a four commitments, the
first of which relates directly to re-orienting economic growth away from material consumption:
O
O
O
O
Develop service sector to increase share in the economy
Revive traditional frugality values to guide
Consumption behaviours;
Raise public awareness among producers and consumers towards rational consumption.187
Another fruitful approach to reducing the amount of waste transporting is to make the costs of
removal of waste the responsibility of those who benefit from the sale and who control the decisions of how
products are manufactured. This approach has now been quite widely adopted in developed countries as far
as hazardous waste is concerned:
“The management of return flows is becoming increasingly important for a growing number of
businesses. Governmental policy and legislation, such as the WEEE Directive and environmental
regulations restricting the disposal of potentially hazardous product and packaging materials, have
forced manufacturers to take responsibility for the take-back of used goods from customer markets.
Customer awareness is also creating opportunities for “green branding” and new markets for
returned goods. Moreover, return flows can reduce production costs by replacing raw materials.”188
Unproductive freight movements related to the carrying of packaging materials can be addressed in
a similar manner, by making manufacturers responsible for the disposable of all packaging. This would
provide an incentive to reduce the quantity of packaging and also to ensure that what packing is used is
recyclable (as in Japan’s Packaging Recycling Law). However, an alternative available to government is to
more directly intervene through the regulation of packaging practice, as, for example, in China’s ‘Law For
Promoting Circular Economy’.189
187
United Nations ESCAP, Greening Growth in Asia and the Pacific, UNESCAP, Bangkok, 2008.
McLeod, Fraser et al., Developing innovative and more sustainable approaches to reverse logistics for the collection,
recycling and disposal of waste products from urban centres: Literature review and identification of opportunities, 2008,
downloaded from Green Logistics website, http://www.greenlogistics.com, 24 April 2010.
189
World Bank, Developing a Circular Economy in China: Highlights and Recommendations, World Bank Technical Assistance
Programme 2009, World Bank, Washington.
188
VII. Safe and Sustainable Transport
119
Reducing the distance over which freight must be moved
The typical supply chain consists of a number of distinct movements: input materials to component
factory; components to final assembly; movement of the final product to a distribution centre; movement
from distribution centre to wholesaler; from wholesaler to retailer; and from retailer to final destination. If
some of these movements can be eliminated or reduced in length by the collocation of activities that take
place at different stages of the supply chain then the total distance travelled by freight can be reduced. Free
trade zones, freight villages, logistics centres and other initiatives encourage the collocation of production
logistics and distribution activities within a single industrial park. In particular, the collocation of final
assembly/packaging with warehousing activities offers the potential to remove one transport link from
complex supply chains.
Changing freight transport mode
There are very significant differences between the energy consumption and emissions performance
of different transport modes. The extent of these differences depends very much on the specific
characteristic of the freight task and the transport vehicle used, but top-down analysis based on total energy
consumption and emissions can provide a robust indication of the relative magnitude. A wide range of
studies has confirmed the following general ranking, in order of increasing energy efficiency and decreasing
emissions: sea, rail, road and air.
Reversing the trend to increasing road transport dominance of the freight task will require
reconfiguring the rail transport model from the traditional ‘point to point’ carriage to a focus on seamless
multimodal freight movement. UIC reports initial steps in this direction by a number of railways of the
region:
“Russian and Malaysian Railways have completely shifted their freight activities to a totally
integrated intermodal concept, including hubs with ports and roads. Despite investments worth
thousands of billions of US$ in the next 20 years on rail infrastructure, Indian Railways are facing
a real challenge regarding congestion and have already defined priority corridors to invest or
upgrade, targeting a 50 per cent + rail market share from their existing 40 per cent share of the
freight market. Finally, the Korean experience shows that seaports are competing with the
development of inland dry ports, optimally positioned closer to manufacturing location, creating
real added-value, new functions and services. Caucasus Railways, by upgrading their rail
infrastructure in creating new corridors, are becoming key actors for Asia to Europe transportation.
Those integrated activities, now everywhere in Asia, will definitely interact with railways, making
them unavoidable partners”.190
Reducing the number of movements required
Much of the time, urban freight vehicles run empty. Improvement of urban logistics through
construction of freight consolidation and distribution centres near urban and other strategic locations have
potential to reduce the number of less than truck loads as well as empty truck trips which are currently
estimated to be around one third of total freight truck trips. For example, the percentage of trucks running
empty is around 12-30 per cent in Pakistan and 43 per cent in China.191 And even when they are carrying
loads, the loads that are carried loads are often much less than the capacity of the vehicle. To some extent,
this in unavoidable because freight flows are usually unbalanced, and some backhaul trips will always be
made empty. Also, many urban delivery tasks involve drop-offs at a number of locations. A truck that leaves
the depot full will often be nearly empty before it makes its final delivery.
190
UIC participates in the 2nd successful UNESCAP Working Group on the Trans-Asian Railway Network, viewed on the
International Union of Railways website, http://www.uic.org, 26 October 2011.
191
Londono-Kent, P., Freight Transport for Development Toolkit: Road Freight, World Bank, 2009.
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Review of Developments in Transport in Asia and the Pacific 2011
Nevertheless, there are a number of things that can be done to improve load factors (load to
capacity ratios). For example, the potential for the development and promotion of urban freight centres to
facilitate the consolidation of freight has been explored in detail by Wisetjindawat192 and Min.193
Consolidation of freight can reduce the number of freight vehicle movements by both permitting the use of
larger vehicles and by increasing load factors. Wisetjindawat argues that freight consolidation has the
potential to reduce the environmental impact of urban freight transport while at the same time enhancing
business competitiveness, but that some incentives may need to be provided to promote collaboration
between business in order to achieve these benefits consolidated delivery and sharing technologies can
reduce operation costs and at the same time decrease the environmental impact. In developing countries,
similar cooperation should be encouraged in order to improve not only the quality of life of citizens, but
also to improve the position of these countries’ businesses in the global market. Incentives for shifting
deliveries from shipper’s own trucks to using services provided by freight forwarders are also
recommended in order to increase the chance of consolidated deliveries.
Reducing the impact of each vehicle movement
To a significant extent, reduction in the impact of each vehicle movement will result from the more
stringent fuel efficiency and fuel quality standards discussed earlier in this chapter. However, the adoption
of strict environmental standards for motor vehicles is one thing: enforcement of those standards is another.
In a recent paper based on a comparative study of policies in 10 Asian cities, Hirota notes that:
“Not only implementation of emission standards for new vehicles, but also regular inspection and
maintenance of vehicles with uncontrolled emissions are effective for emission reductions. Asian
countries have legislation regarding registration, I/M (inspection and maintenance) and Fuel
Quality Monitoring (FQM) systems. However, operation of the registration, I/M (inspection and
maintenance) and fuel quality monitoring systems used in developing countries are observed to
share similar characteristics, such as a weakness of government initiative and inadequate operation
by government bodies, which results from shortages of human resources and analysis facilities.
These present issues may affect emission volumes from mobile sources.” 194
Vehicle maintenance practices and minor design changes can result in improved environmental
performance and also in reduced fuel consumption. Fleet operators therefore often have an financial
incentive to pursue these improvement, provided they are aware of the economies that could be gained by
doing so. Fabian (2010) reports a pilot project in Guangzhou that focuses on the following minor design
improvements to an existing truck fleet. The results of the pilot suggest a payback period of 1.8 years for
the required investment, and a reduction of fuel consumption of 12 per cent.195
According to the Victorian Transport Association, a “driver’s level of skill can effect fuel use by up
to and in excess of 35 per cent”.196 Although savings of this magnitude are likely to be rare, it is clear that
driver behaviour can have a significant impact on the environmental impact of freight vehicles operations.
The United States Environmental Protection Agency cites a Canadian study which estimates that many
fleets could achieve a 10 per cent fuel economy improvement through driver training and monitoring, and
two trucking fleet studies found fuel efficiency improvements of 18 per cent and 20 per cent.197 Moreover,
driver behaviour is one aspect of the freight transport system that can be changed quickly and at little cost.
192
Wisetjindawat, Wisinee Review of Good Practices in Urban Freight Transportation, Paper prepared for Eco-Efficient and
Sustainable Urban Infrastructure Development in Asia and Latin America Project, 2010, downloaded from ESCAP website, http://
www.unescap.org, 21 October 2011.
193
Min, Yeonjoo, GHG Mitigation Strategies in Logistics Sector of Korea, Presentation to Expert Group Meeting on Sustainable
Transport Development: Eco-efficiency in Freight Transportation and Logistics, 29-30 March 2010, Bangkok.
194
Keiko Hirota, Comparative Studies on Vehicle Related Policies for Air Pollution Reduction in Ten Asian Countries,
Sustainability, Vol. 2, 145-162, 2010.
195
Fabian, Bert 2010, Freight and its impact on air pollution, greenhouse gas emissions, and fuel consumption in Asia,
Presentation to Expert Group Meeting on Sustainable Transport Development: Eco-efficiency in Freight Transportation and
Logistics, 29-30 March, Bangkok.
196
Victorian Transport Association, Freight Sector GHG Management, Presentation to Freight Environment and Productivity
Conference, Melbourne, 2009.
197
United States Environmental Protection Agency (USEPA), A Glance at Clean Freight Strategies: Drivers Training, undated.
downloaded from USEPA website, http://www.epa.gov, 15 May 2010.
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Copyright © United Nations 2011
ISBN: 978-92-1-120642-5
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