Dr. Lina Shbeeb

Regulatory and Technical Requirements for the Connectivity of Transport and Logistics Networks in

the Arab Region

Levels of Economic Integration

Free trade between members: NAFTA,

Mercosur, ASEAN (partial)

Free

Trade

Common external tariffsCustoms

Union

Factors of production move freely

between members

Common

Market

Common currency, harmonized tax

rates, common monetary and fiscal

policy: EU (partial)

Economic

Union

Common governmentPolitical

Union

Complexity

Principles of Trade Facilitation

Harmonization of laws & regulations(lawyers)

Simplificationof procedures

(business men)

Standardizationof means

(technicians)

Regional Connectivity

• Means of enhancing effectiveness of regional networks to facilitate flow of goods, services, people, data & knowledge within and between countries of the region

Covers:• Infrastructure (having the physical infrastructure in place)• Legislation and Institutional (policy & regulatory

frameworks under which they operate)• Synergy through Improved cooperation and coordination• Core elements of regional connectivity:

– Transport– Energy– ICT Infrastructure

Connectivity would

• Enhanced connectivity played an influential role in shaping regional integration in Arab World

• Regional connectivity is regarded as the level and effectiveness of regional networks to facilitate flows of goods, services, people and knowledge.

• The contribution of “hard”, or physical, infrastructure networks to economic and social development has depended on “soft” infrastructure, including – the policy, legal, regulatory and institutional frameworks

– physical or non-physical parameters

Transport Connectivity

• Regional transport connectivity• Highways, Railways, Inland waterways, maritime, air

transport, logistics centres and dry ports• Intercity connectivity

– Roads, rails, high speed rails

• Rural connectivity– rural roads, engineering, maintenance

• Coastal shipping and inland waterways• Two aspects of sustainability

– Contribution of connectivity to sustainable development– Making transport connectivity sustainable

Better Connectivity focused on sustainability and quality of service

• Increase network sustainability through maintenance and road safety efforts;

• Facilitate trade through better coordinated border management, improved physical infrastructure, greater use of information and communication technology;

• Develop designated road/rail corridors for uninterrupted, long-distance movements of non-bulk cargo;

• Establish distribution hubs based on intermodal connections; and

• Improve the efficiency of international transit corridors by providing connections to seaports

Trade and transport connectivity• There are wide variations across countries in the quality of

infrastructure,• The transport networks are not fully operationalized or integrated,

leading to underutilization of networks, especially railways. • Barriers at borders also persist, increasing trade and transport costs

and delaying the movement of goods and people. • By investing in intermodal facilities, such as dry ports, as well as in

better physical linkages between different modes, it could increase transport options for shippers and traders.

• Regional intermodal transport networks will play important role in trade.

• Greater use of ICT applications for trade and transport facilitation, both behind and at borders, would also improve the efficiency of freight movements and pave the way for the development of paperless trade and e-logistics.

Connectivity is an Integrated Issue

• Regional networks in an integrated and coordinated manner, which can reduce – the costs and spread the benefits to a wider group of

countries.

• Regional approaches can help countries look beyond their national boundaries and consider the “public goods” aspects of networks

• Countries in the region need to put into place regional strategies for developing critical regional networks.

UN ESCWA Region (Arab Mashreq)(17 Arab Countries)

Arab Countries Transportation Indicators

2.7%

97.3%

No. of Vehicles

Arab World Rest of the World

4.2%

95.8%

Population

Arab World Rest of the World

1.4%

98.6%

Road Length

Arab World Rest of the World

Motorization Level by Country

0

100

200

300

400

500

600

Bah

rain

Qatar

Ku

wait

Leban

on

Saud

iA

rabia

UA

E

Libya

Om

an

Jord

an

Tun

isia

Syria

Mo

rocco

Iraq

Egypt

West

Ban

k

Yemen

Sud

an

Mau

ritania

Veh

icle

per

10

00

peo

ple

Country

Country Motorization Level World Motorization Level

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Libya

Om

an

Saud

i Arab

ia

Qatar

Syria

Bah

rain

Yem

en

Mau

ritania

Ku

wait

Leban

on

Tun

isia

Iraq

Mo

rocco

Egypt

Jord

an

West B

ank

UA

E

Sud

anK

m R

oad

10

00

peo

ple

Country

Country Rate World Rate

Planned Railway length (km)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Egypt

Sud

an

Algeria

Saud

ia

Tun

isia

Syria

Om

an

iraq

Mo

roco

Jord

an

UA

E

Mo

uratan

ia

Leban

on

Qatar

Arab Railway Network Present and planned

Logistic Performance Index of Arab Countries

Country LPI Rank LPI Score CustomsInfrastructure

International shipments

Logistics competence

Tracking & tracing

Timeliness% of highest performer (Germany)

United Arab Emirates

13 3.94 3.84 4.07 3.89 3.82 3.91 4.13 88.5%

Qatar 30 3.6 3.55 3.57 3.58 3.54 3.5 3.83 80.9%

Bahrain 44 3.31 3.14 3.1 3.33 3.38 3.32 3.58 74.4%

Oman 48 3.23 2.76 3.44 3.35 3.26 3.09 3.5 72.6%

Egypt, Arab Rep. 49 3.18 2.75 3.07 3.27 3.2 3.15 3.63 71.5%

Saudi Arabia 52 3.16 2.69 3.24 3.23 3 3.25 3.53 71.0%

Kuwait 53 3.15 2.83 2.92 3.62 2.79 3.16 3.51 70.8%

Jordan 67 2.96 2.55 2.77 3.17 2.89 2.96 3.34 66.5%

Algeria 75 2.77 2.37 2.58 2.8 2.91 2.86 3.08 62.2%

Lebanon 82 2.72 2.73 2.64 2.84 2.45 2.75 2.86 61.1%

Morocco 86 2.67 2.22 2.46 3.09 2.59 2.34 3.2 60.0%

Sudan 103 2.53 2.23 2.2 2.57 2.36 2.49 3.28 56.9%

Tunisia 110 2.5 1.96 2.44 2.33 2.59 2.67 3 56.2%

Libya 137 2.26 1.88 2.04 2.4 2.5 1.85 2.83 50.8%

Iraq 149 2.15 2.01 1.87 2.33 1.97 1.98 2.66 48.3%

Mauritania 157 1.87 2.14 1.54 2 1.74 1.54 2.14 42.0%

Syrian Arab Republic

160 1.6 1.11 1.24 1.36 1.39 2.1 2.4 36.0%

World Bank

Integrated Transport System in the Arab Mashreq (ITSAM)

• An Integrated Transport System in the Arab Mashreq (ITSAM) aims at supporting the regional socioeconomic integration and development, which would require and develop

– Transport Infrastructure Development

– Facilitation of the regional and interregional flows of goods and passengers

– Legal and administrative reforms

– Connecting Africa, Asia and Europe

ITSAMRoad Development

• UN Road Convention Agreement on International Roads in the Arab Mashreq was adopted in 2001; entered into force in 2003; ratified by 13 member countries till 2011.

• 70% Implemented

Priority Road Transport Corridors in Arab Mashreq M40 and M45

• East –West: M40 : Iraq –Jordan –Palestine –Egypt

• East-West: M40 Extended: Iraq –Jordan –Palestine –Egypt –Libya –Tunisia -Algeria, Morocco -Mauritania

• North-South: M45: Syria –Jordan -Saudi Arabia –Yemen

• North-South: M45 Extended: Syria –Jordan -Saudi Arabia -Yemen -Djibouti –Somalia

East-West M 40 AND

North –South M45

Roadway Transport Corridors in Arab Countries

Extended East-West M 40 AND

North –South M45

ITSAM: Rail Network Development

• UN Rail Convention Agreement on International Railways in the Arab Mashreq

• It was adopted in 2003, entered into force on in 2005 and ratified by 10 ESCWA members

• An action plan was adopted in 2006 including feasibility in 2010

Railway Transport Corridors in Arab Mashreq

• East –West: R40 –R50: Iraq –Jordan –Palestine –Egypt

• East-West: R50 -R40 Extended: Iraq –Jordan –Palestine –Egypt –Libya –Tunisia –Algeria-Morocco -Mauritania

• North-South: R25 : Syria –Jordan -Saudi Arabia –Yemen

• North-South: R25 Extended: Syria –Jordan -Saudi Arabia -Yemen -Djibouti –Somalia

Railway Transport Corridors in Arab Countries

East –West R40 and North-South 50 Extended East –West R40 and North-South 50

Interregional Land-Sea Transport Linkages Connecting Africa, Asia and

Europe

Why Multimodal Transport law

• Multimodal transport laws are expected to facilitate trade among Arab Countries

• There is a need to strengthen the opportunities for providing better efficient and smooth transport services that meet the needs of Arab Inter-trade

• There is an urgent need to improve the regional transport system

• A multimodal transport law would aim at providing balance between transport service providers and the beneficiary.

Other work

• Maritime Convention Memorandum of Understanding on Maritime Transport Cooperation in the Arab Mashreq

• Adopted in 2005; entered into force in 2006 and ratified by 10 member countries

• Transport and Trade Facilitation a study of Five countries(Egypt, Jordan, Lebanon, Syria, UAE)

Some Major Transport Challenges in the Arab Region

• Legislative and Institutional frameworks– Few multimodal transport laws and operators – Still there is more to do to develop a regulatory framework for public-private

link for transport and trade facilitation– No harmonized institutional and legislative frameworks (specifications,

standards, procedures etc.)

• Infrastructure – Railway Missing links (there are many plans some are on-going) – Different Geometric Standards

• Railway Track gauge (Narrow gauge in several countries) –Different axle loads

– Road network with different standards– Limited Connectivity Between Arab countries and the nearby continents (Africa,

Asia and Europe)

• Operations and Procedures– Intraregional trade among Arab countries is very low (Does not exceed 6%, IMF)– Border crossing formalities are lengthy, cumbersome and time consuming – Limited trade between Arab Mashreq and Maghreb and consequently low flow

of freight.

Legislative Frame Work• Follow up and enforce all treaties and agreement signed to

harmonies and develop the transport system in Arab World.

• Establishing the Arab electronic portal for transport and trade facilitation

• Encourage Arab countries to Accession to Arab and international agreements in the fields of transport

• Update and harmonize the laws and regulations of weights, axle loads, vehicle standard, engineering design standards , vehicle standards and safety standards

Technical Issues

• Worked out and implement the developed scheme for railway interconnection between the Arab countries.

• Continue in upgrading and developing the agreed upon road linking scheme and maritime linkage schemes between Arab Countries

• Enhance the Connectivity Between Africa, Asia and Europe by accession to international agreement develop the transport service and qualifying and training the operator to work in different environment

ICT connectivity

• ICT connectivity is rapidly improving in the region,

• Still a large “digital divide” both within and between countries.

• A cohesive regional network would provide cost-effective broadband access on both an intraregional and intercontinental

• ITC development would require the active involvement of private sector partners and international organizations.

Energy connectivity

• With recent advances in high-voltage transmission technology, it is now possible to envisage a regional energy network,

• The most efficient may be the development of a regional electricity power grid, connected to a regional electricity market.

• A regional grid could also link renewable energy sources to a large enough market to justify investments, thereby enhancing the viability of such projects.

People-to-people connectivity

• Increased mobility across borders, as well as greater ICT connectivity, would open up vast new opportunities for international labour migration but also raise new challenges.

• By promoting people-to-people connectivity help people access the region’s vast knowledge resources, as well as foster better understanding about the region’s diverse cultures and value systems.

Strengthening institutional coordination and regional cooperation

• The private sector has been leading the economic integration of the region, as the individuals, institutions and companies compete to – boost productivity,

– relocate production activities to take advantage of cost differentials between countries,

– gain access to major markets in the region.

• Governments must take the lead in establishing robust institutional frameworks to plan and implement the regional connectivity mechanism.

Strengthening institutional

• There is a need to strengthen institutional mechanisms and make better use of existing forums, such as those provided by intergovernmental organizations. – supporting and coordinating sub regional integration

efforts, as well as in serving as a vital link between sub regional and global initiatives

• Policy coordination among these organizations has become an urgent challenge.

• Involve other stakeholders in the development and implementation regional connectivity.

Statistical standards; strengthening accountability and better policymaking

• Official statistics help Governments to track progress and ensure that their decisions are based on evidence.

• Statistics develop a shared understanding of trends, issues and bottlenecks

• Statistics must adhere to internationally agreed standards.

• Global statistical standards and build their capacities for collecting and disseminating their official statistics..

Regional solutions for financing regional infrastructure networks

• Infrastructure development invariably involves high capital costs, with benefits accruing over the longer run. However, the benefits of regional infrastructure networks extend over and beyond national borders.

• Countries should therefore explore regional mechanisms to pool the region’s financial resources, such as a regional infrastructure fund, a regional project preparatory facility.

• There is also scope for greater private involvement in financing infrastructure projects, but most countries still lack the appropriate policy frameworks to develop and manage public-private partnership projects effectively.

Transitioning to knowledge-based economies

• There is a need for people who have the skills and knowledge, as well as the innovative spirit

• Strengthening knowledge in all related fields

• Sharing of knowledge and research between universities, researchers and industry also contributes to the development.

Next steps in strengthening regional connectivity

•Lets work!!!