REVIEW OF

DEVELOPMENTSIN TRANSPORTIN ASIA AND THE PACIFIC

2013TRANSPORT AS A KEYTO SUSTAINABLE DEVELOPMENT AND REGIONAL INTEGRATION

REVIEW OF

DEVELOPMENTSIN TRANSPORTIN ASIA AND THE PACIFIC

2013TRANSPORT AS A KEYTO SUSTAINABLE DEVELOPMENT AND REGIONAL INTEGRATION

FOREWORD

This Review is published at an important time for future policy and planning of transport investments. Transport accounts for around 60 per cent of all fossil fuels used on the planet, around 30 per cent of all energy use and an estimated 23 per cent of global CO2 emissions. To reduce these negative externalities, we need regional solutions today that will support sustainable development, solutions

which are fuel efficient and which reduce pollution, congestion, accidents, and deaths on the roads, while meeting the needs of business, people and our planet.

Transport is an ‘enabler’, providing access to economic, health, education, and social services. That is why the 2012 United Nations Conference on Sustainable Development, or Rio+20, recognized the importance of the efficient movement of people and goods, and access to environmentally sound, safe and affordable transportation as a means to improve social equity, health, resilience of cities, urban-rural linkages and productivity of rural areas. It also noted the need to take into account road safety as part of efforts to achieve sustainable development.

This Review examines emerging transport trends across the region, focusing on inter-modal regional connectivity and cross border facilitation. It provides an update on the status of the Asian Highway and Trans-Asian Railway networks, as well as progress in the development of intermodal linkages such as dry ports. For the first time, it also includes a chapter on inter-island shipping, which looks at the specific transport challenges facing ESCAP’s member States and associate member States in the Pacific. It also explores options for upgrading urban mobility, while meeting the needs of diverse sections of the population.

The Review will contribute to the transformational shift which is needed to make our transport systems more efficient, cleaner, safer and more affordable, as well as more equitable, to the benefit of all.

Noeleen HeyzerUnder-Secretary-General of the United Nations and Executive Secretary, United Nations Economic and Social Commission for Asia and the Pacific

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.

The boundaries and names shown and the designations used on the maps in this publication do not imply official endorsement or acceptance by the United Nations.

The term “ESCAP region” in this publication refers to the group of countries and territories/areas comprising: 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; Iran (Islamic Republic of); 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 “East and North-East Asia” in this publication refers collectively to: China; Hong Kong, China; Democratic People’s Republic of Korea; Japan; Macao, China; Mongolia; and Republic of Korea.

The term “North and Central Asia” in this publication refers collectively to Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Russian Federation, Tajikistan, Turkmenistan and Uzbekistan.

EXPLANATORY NOTESThe term “Pacific” in this publication refers collectively to American Samoa, Australia, Cook Islands, Fiji, French Polynesia, Guam, Kiribati, Marshall Islands, Micronesia (Federated States of), Nauru, New Caledonia, New Zealand, Niue, Northern Mariana Islands, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.

The term “South and South-West Asia” in this publication refers collectively to Afghanistan, Bangladesh, Bhutan, India, the Islamic Republic of Iran, Maldives, Nepal, Pakistan, Sri Lanka and Turkey.

The term “South-East Asia” in this publication refers collectively to Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste and Viet Nam.

Values are in United States dollars unless specified otherwise.

The term “billion” signifies a thousand million.

This publication has been issued without formal editing.

Mention of firm names and commercial products does not imply the endorsement of the United Nations.

Bibliographical and other references have, wherever possible, been verified. The United Nations bears no responsibility for the functioning of links to uniform resource locators (URLs) contained in bibliographical or other references to the work of external organizations.

FOREWORD

INTRODUCTION

CHAPTER 1INTEGRATING REGIONAL TRANSPORT NETWORKS DEVELOPING REGIONAL INFRASTRUCTURE PROMOTING INTERMODAL INTEGRATION

CHAPTER 2FACILITATING OPERATIONS ON REGIONAL TRANSPORT NETWORKS TACKLING NON-PHYSICAL BARRIERS TO TRANSPORT ACROSS BORDERS IMPROVING EFFICIENCY AT BORDER CROSSING RAISING LOGISTICS EFFICIENCY AND EFFECTIVENESS

CHAPTER 3FINANCING TRANSPORT INFRASTRUCTURE ASSESSING THE STATE OF TRANSPORT INFRASTRUCTURE INVESTMENTS BOOSTING PUBLIC-PRIVATE PARTNERSHIPS IN THE TRANSPORT SECTOR BUILDING INTRA-ASIAN PARTNERSHIP

CHAPTER 4PROMOTING SUSTAINABLE TRANSPORT FOR INCLUSIVE DEVELOPMENT UPGRADING URBAN MOBILITY RAISING ROAD SAFETY AS A SUSTAINABLE DEVELOPMENT ISSUE

CHAPTER 5STRENGTHENING INTER-ISLAND SHIPPING IN THE PACIFIC

REFERENCES

ACKNOWLEDGEMENTS

CONTENTS

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Transport is an essential element in the development of Asia and the Pacific, and has played a critical role in the region’s rapid economic growth. Transport networks facilitate the movement of people and goods, ensuring that labour, raw materials, products and ideas can move around easily and contribute to the social, economic and environmental betterment of the region. The challenge of the coming decades will be, however, to ensure that transport policies and investments contribute to more sustainable and inclusive development paths. Mitigating the negative externalities of transport is a necessary step in ensuring the sustainability and inclusiveness of transport networks.

Against this background, the Review of Developments in Transport in Asia and the Pacific will explore some of the major transport challenges in the region.

INTEGRATING TRANSPORT MODES TO OPTIMISE EFFICIENCY With the growing importance of intra-regional trade, countries in the region can benefit from more direct land transport routes. To contribute to sustainable development, those land transport routes need though to be optimally integrated as simply building new infrastructure is unlikely to cope with expected increased in transport demand. In addition, it is essential that the physical infrastructures are developed in such a way that they create the conditions for a shift towards the most efficient transport modes. To understand the future of regional transport networks, Chapter 1 will review major infrastructure projects that could shape these transport systems in the years to come. Key policy initiatives that promote intermodal integration such as the Intergovernmental Agreement on Dry Ports supported by ESCAP will also be presented.

FACILITATING TRANSPORT MOVEMENTS ACROSS BORDERSWhile having transport networks physically connected is important, they are only valuable to the extent they can be used by transport operators. For instance, having the right institutional agreements to facilitate transport across borders can be as important as the physical infrastructure required to transport freight. In that respect, there remain numerous bottlenecks throughout the region that add considerable cost to trading. Chapter 2 will therefore present a set of options backed by ESCAP and other United Nations bodies to tackle these non-physical barriers and to improve the transport logistic chain, notably by further taking advantages of new technologies.

CREATIVE APPROACHES TO FINANCING INFRASTRUCTURE INVESTMENT In addressing the transport requirements of the region, the building and maintaining of transport infrastructure comes at a considerable cost and represents a large share of total public expenditure. Often traditional sources remain yet limited compared to the overall investment requirements of the region. As such governments are increasingly exploring innovative financing sources, with private-

INTRODUCTION

public partnerships and intra-Asia collaboration becoming more common financing options. After assessing the overall financial burden for developing land transport in the region, Chapter 3 will elaborate on these innovative sources and will highlight the key factors as well as the opportunities to consider for expanding their contribution to regional transport development. The role regional actors such as ESCAP are playing in this context will also be discussed.

UPGRADING MOBILITY FOR SUSTAINABLE AND INCLUSIVE DEVELOPMENTIn a region where a majority of the region’s wealth is generated in cities and where an increasing percentage of its population resides in urban area, sustainable development can only be achieved if residents can access the many social and economic opportunities cities present. However, recent development trends raise significant questions as regards the sustainability of the transport model currently pursued requiring urgently actions to be taken to enhance people’s mobility and to create liveable cities in the long run. In addition, mobility cannot be sustainably improved without tackling the major challenge of improving road safety, which currently takes a terrible economic and social toll in the region. These challenges will be further detailed as part of Chapter 4 together with a series of projects and initiatives that are making positive change to the current situation. Policy options promoted by ESCAP and other international organizations to make mobility more sustainable and inclusive will also be highlighted.

TRANSPORT CHALLENGES OF SMALL ISLAND COUNTRIES IN THE PACIFIC SUBREGION Finally, improving connectivity is not only a critical issue for the Asian continent. The people and businesses of archipelagic and island developing countries also need to have access to safe, reliable, regular and affordable transport services to be able to achieve sustainable and inclusive development. In that respect, Chapter 5 will showcase some recent initiatives undertaken to progress on these critical issues and will outline the results of a high-level meeting on the matter supported by ESCAP and other organizations, which was held in Suva in July 2013

While the Asia and Pacific region faces tremendous transport challenges, there are also numerous examples from countries in the region of innovative and effective solutions to these issues. This Review of Developments in Transport in Asia and the Pacific aims to highlight not only the problems but also the progress being made throughout the region in meeting transport challenges. It is hoped that these successes can be shared, learnt from, replicated and built on to promote an economically, socially and environmentally sustainable Asia and the Pacific in the future.

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The Review of Developments in Transport in Asia and the Pacific 2013 was prepared under the guidance of Dongwoo Ha, Director, Transport Division (TD) of the Economic and Social Commission for Asia and the Pacific.

The core team of authors comprised A.S.M. Abdul Quium, Fedor Kormilitsyn, Fuyo Jenny Yamamoto, Heini Suominen, Irfan Rahim, Madan Bandhu Regmi, Mathieu Verougstraete, Peter O’Neill, Pierre Chartier, Sandeep Raj Jain, Thanattaporn Rasamit and Yuwei Li.

The following experts prepared technical background papers on specific issues for the Review: Biswa Bhattacharyay, John Moon and Peter Hodgkinson.

ACKNOWLEDGEMENTS

The maps have been edited by Srisakul Kanjanabus.

Valuable support was also provided by several interns of the ESCAP Transport Division: Sanghyp Cha, Bryn Davis, Shailly Gupta, Ming Wei and Zeying Wu.

The graphic concept, design and layout were created by Oum Bhumichitra and the printing services were provided by Advanced Printing Service Co., Ltd.

PHOTO: ESCAP Transport Division with the ESCAP Executive Secretary Noeleen Heyzer

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