ASEAN-India Connectivity Report: India

Country Study~ Major Findings

Prabir DeRIS

7-8 August 2012AINTT Round Table

New Delhi

Key Impediments to ASEAN-India Trade

• High NTBs• High non-physical barriers• Inadequate infrastructure – national and regional

(inadequate and poor stock and link of infrastructure)• Lack of trade facilitaiton and absence of regional transit

trade • Mismatch of standards • Unfavourable currency in border trade• Poor institutions and governance• High trade costs (transport costs outweigh tariffs)

Nonphysical barriers• Inconsistent and difficult border crossing formalities

and procedures• Restrictive visa requirements• Restrictions on entry of motor vehicles • Different standards on vehicles and drivers across

countries• Transit traffic difficult/not allowed

Poor Links in Regional InfrastructureSector Countries Particular

Road transportation (passenger bus services)

India and Bangladesh Kolkata – Dhaka

Agartala – Dhaka

India and Myanmar No link so farRail transportation

(passenger train services)

India and Myanmar No link so far

India and Bangladesh Kolkata - Dhaka

Aviation (international flight connection)

India – ASEAN5 Many

India - Bangladesh Many

India and Myanmar Kolkata – Yangon (weekly)

Inland waterways (cargo) India and Myanmar No linkIndia and Bangladesh Yes

Insufficient number of flights

Sector No of flights per day

India - Thailand 22

India - Malaysia 9

India - Singapore 20

India - Myanmar 1

India - Philippines 1

• Many ASEAN countries not yet connected with India by direct flights.

• ASA is yet to be signed with some ASEAN countries

• Airlines want 5th FR, not accepted by country’s regulators

• ASEAN-India open sky policy yet to be utlized. Source: DGCA

Airlines as on July 2012

ASEAN-India Passenger Movement

Passenger Movement 2000-01 2010-11 AAGR (%)

India - Thailand 510655 2081881 30.77

India - Malaysia 319736 881906 17.58

India - Myanmar 9753 10738 1.01

India - Singapore 1176888 2043398 7.36

India - Brunei 4722India - Indonesia 10497

Source: DGCA

ASEAN-India Freight Movement

Freight Movement

2000-01 2010-11 AAGR (%)India - Thailand 12412 72633 48.52India - Malaysia 8585 30459 25.48India - Myanmar 105 5 -9.52India - Singapore 63074 96883 5.36India - Brunei 341India - Indonesia 364Source: DGCA

India – ASEAN Connectivity Projects

Important Regional Physical Connectivity Projects

• Kaladan Multimodal Transit Transport Project

• India – Myanmar – Thailand Trilateral Highway

• Delhi – Hanoi Railway Link • Mekong – India Economic Corridor

•SittweCh. 0.0 km

•PaletwaCh. 158 Km

•Kaletwa(Ch 225 km

•Myeikwa(IM Border)

•Kyauktaw

•Bay of Bengal

Kolkata Sittwe 539 km

Sittwe Paletwa 158 km

Paletwa Kaletwa 67 km

Kaletwa Myeikwa (IM Border) 62 km

Myeikwa (IM Border) Lawngtlai 100 km

Lawngtlai Aizawl 334 km

•Aizawl

•Lawngtlai•B A N G L A D E S H•I N D I A

•Myanmar

•I N D I A

Kaladan Multimodal Transit Transport System

IWT

•RO

AD

ININ

DIA

RO

AD

INM

YAN

MA

R

DISTANCES

Project Details • Piloted and funded by MEA .

• Based on DPR prepared by RITES in 2003.

• Project area entirely in Myanmar.

• Transport infrastructure components planned originally

– Port/IWT development between Sittwe and Kaletwa along Kaladan river

– Road form Kaletwa to Indo-Myanmar border(Mizoram)

Project Components

• Fairway development/ Sea-dredging in Sittwe port area

• Construction of Port/IWT terminals at Sittwe

• Fairway development/Dredging on Sittwe - Paletwa stretch of Kaladan river (158 Km)

• Construction of IWT Terminal at Paletwa

• Construction of 6 IWT vessels (300 ton each)

• Highway (129 kms) from Paletwa to Indo-Myanmar Border.

Routes

Stretch Mode Distance(in km)

Kolkata- Sittwe Sea route 539

Sittwe- Paletwa* IWT (Kaladan) 158

Paletwa-Kaletwa-Indo Myanmar border*

Road 129

Total 826

* Post DPR review

India – Myanmar-Thailand Highway• Development of 78 km of new roads• Upgradation of about 400 km of roads• Construction of all-weather approach lanes, • Rehabilitation/ reconstruction of weak or distressed bridges • A detailed examination of a project on the Ayeyarwaddy

river as well as a causeway. • Phase-I of the IMTTA was taken up in early 2005. • India assumes responsibility of 78 km of missing links and

58 km of upgradation as part of Phase-I. • India may also take up additional 132 km of upgradation. • Thailand would take up upgradation of 136 km and 62 km

sectors of Phase-I and another 100 km as part of Phase-II.• Border Roads Organisation (BRO) upgraded the Tamu-

Kalewa-Kalemyo (TKK) road (160 km) in Myanmar at a cost of about US$ 27.28 million. Government of India is also responsible for upkeep of the TKK road.

Alignment

• Highway links Moreh (in India) with Mae Sot (in Thailand) through Bagan (in Myanmar)

• The alignment of this trilateral highway falls within the Asian Highways 1 and 2, being pursued by UNESCAP.

Asian Highways Routes and Trilateral Transport Linkages, Myanmar

Road Conditions of Trilateral Highway# Route Distance Drive Time Average Speed

(i) Myawaddy-Thaton(a)

Myawaddy-Thingan Nyinaung

18 km 15 minute 72 km/h

(b)Thingan Nyinaung-Kawkareik

44 km 120 minute 22 km/h

(c) Kawkareik-Paan 95 km 120 minute 47.5 km/h

(d) Paan-Thaton 38 km 50 minute 45.6 km/h

(ii)

Thaton-Meiktila : Thaton-Htantabin-Meiktila

Not yet constructed - -

(iii)

Meiktila-Bagan : Meiktila-Kyaukpadaung-Bagan

142 km 135 minute 63 km/h

(iv)

Bagan-Banbwe : Bagan-Pakoku-Yinmabin-Banbwe

Not yet constructed - -

(v)Banbwe-Labo: Banbwe-Yagyi-Labo

80 km 150 minute 32 km/h

(vi) Labo-Myittha Bridge(a) Labo-Kyaw-Marma 37 km 150 minute 14.8 km/h

(b)Marma-Myittha Bridge (Kalewa)

67 km 125 minute 32.2 km/h

(c)Myittha Bridge-Kyikone Junction

29 km 25 minute 69.6 km/h

(vii)Kalay-Tamu : Kalay-Kyikone-Tamu

131 km 150 minute 52.4 km/h

Western Corridor of GMS Economic Corridors

Myanmar Deep Seaport Projects

Ongoing and Prospective Connectivity Projects in Myanmar

Tier Type Sector Sub−Sector Project Name Cost (US$ mil) Status

2 PPP Logistics Port, Rail, Road Dawei deep sea port 8,600.0 Ongoing

2 PPP Logistics Road/Bridge Dawei-Magul-Lenya-Kawthaung - Ongoing

2 PPP Logistics Port, Rail, Road Kyaukphyu deep sea port 10,000.0 Ongoing

2 PPP Logistics Road/Bridge Dawei-Maesamee Pass - Prospective

3 PPP Logistics Road Kaladan Multimodal Project (Setpyitpyin to India border) 49.1 Ongoing

3 PPP Logistics Port / Maritime Kaladan Multimodal Project (Sittwe Port, Kaladan River development) 68.2 Ongoing

3 Public Logistics Road/Bridge Upgrading below Class III road (Chaung U-Kalay) - Ongoing

3 Public Logistics Road/Bridge Upgrading below Class III road (Kengtong-Taunggyi) - Ongoing

3 PPP Logistics Railway Lasio-Muse railway 479.5 Prospective

3 PPP Logistics Road/Bridge Muse-Kyaukphyu - Prospective

3 PPP Logistics Railway Rehabilitation of Kalay-Mandalay rail line 162.0 Prospective

3 PPP Logistics Railway Tamu-Kalay railway 97.7 Prospective

3 PPP Logistics Road/Bridge Tanine-Pansauk Road - Prospective

3 PPP Logistics Railway Thanbyuzayet-Three Pagoda Pass railway 246.2 Prospective

3 PPP Logistics Road/Bridge Thingannyinaung- Kawkareik - Prospective

Delhi – Hanoi Railway Link• Two objectives – (a) to link India’s Manipur with India’s main

railway corridor, and (b) to re-establish and renovate railway networks in Myanmar.

• Indian consulting engineering company, RITES, has already completed a preliminary study to establish Delhi – Hanoi railway link in 2006.

• Indian government has come forward and extended US$ 56 million credit line to the Myanmar government for upgradation of 640 km railway system between Mandalay and Yangon section.

• Indian Railways is engaged in harmonization of railway tracks in the northeastern India and also construction of new lines.

• Project under construction in Indian side: Diphu – Karong –Imphal - Moreh rail link which will link India with ASEAN. – Construction of a 98 km railway line connecting Jiribam to Imphal has

already been taken up at the cost of Rs 31 billion. The project was initiated in April 2003 and supposed to be completed by March 2014 for Jiribam-Tupul sector and March 2016 for Tupul-Imphal sector.

• On completion of these projects there could be possibilities for (i) India – Myanmar – Thailand – Malaysia - Singapore rail link, and (ii) India – Myanmar – Thailand – Hanoi rail link.

New Delhi – Hanoi Rail Link Route-I

New Delhi-Hanoi Rail Link Route-I in Myanmar

Section Route

Distance (in km)

Renovating/ Construction Cost

(USD in million)

Tamu-Kalay Missing128

151*

Kalay-Mandalay Existing516

285*

Mandalay-Bago Existing541

Bago-Thanbyuzayat Existing270

210**

Thanbyuzayat-Three Pagodas Pass Missing110

402**

New Delhi – Hanoi Rail Link Route-II

New Delhi-Hanoi Rail Link Route-II in Myanmar

Section Route

Distance (in km)

Renovating/ Construction Cost

(USD in million)

Tamu-Kalay Missing128

151*

Kalay-Mandalay Existing516

285*

Mandalay-Bago Existing541

Bago-Thanbyuzayat Existing270

210**

Thanbyuzayat-Ye-Dawei Existing235

Dawei-Bang Bong Tee Missing110

309**

Mekong – India Economic Corridor• MIEC involves integrating the four

Mekong countries (Myanmar, Thailand, Cambodia and Vietnam) with India.

• It connects Ho Chi Minh City (Vietnam) with Dawei (Myanmar) via Bangkok (Thailand) and Phnom Penh (Cambodia) and further linking to Chennai in India.

• It is expected to augment trade with India by reducing travel distance between India and MIEC countries and removing supply side bottlenecks.

• Approx. investment US$ 88 billion.

Mekong – India Economic Corridor (MIEC)

Mumbai

BangaloreDawei Bangkok

Phnom Penn

Ho Chi Min City

Sea RouteProposed Chennai- Bangalore-Mumbai Corridor on NH-4

Southern DFC is in the similar alignment of the existing rail network

Mekong India Corridor covering four countries

Delhi

Delhi-Mumbai Industrial Corridor on NH-8 along the alignment of West Dedicated Freight Corridor

Automobile Cluster

Textile/ Garment Cluster

IT/ ITES Cluster

Chennai-Ennore

BCIM Corridor

ASEAN – India Connectivity: New Corridor Projects

Emerging Architecture

A Regional Framework to Enhance ASEAN-India Connectivity

Some important developments on regional connectivity (strong impact

on ASEAN-India trade flow)1. Transit for traffic between India, Bangladesh, Nepal, and

Bhutan.2. Integrated check posts (ICP) in Moreh in Manipur,

Petrapole in West Bengal, etc.3. India – ASEAN connectivity projects, particularly Mekong

– India Economic Corridor (MIEC) and BIMSTEC Trilateral Highway

4. Kunming – Kyaukpyu gas pipeline, highway and SEZ5. Dawei SEZ and port

Encouraging Progress in Transit• All SAARC countries have in-principally agreed to

regional transit. • Motor Vehicle Agreement is being negotiated.• SAARC Expert Group finalized the text of the Regional

Agreement on Railways in August 2011. • Sub-regional transit has been agreed between India,

Nepal, Bhutan and Bangladesh. – Bilateral document between India and Bangladesh

signed during the state visit of Indian PM to Bangladesh in September 2011 to facilitate overland transit traffic between Bangladesh and India

– Demonstration run of container train between Bangladesh, India and Nepal is getting ready.

ASEAN-India Connectivity: Investment Opportunities

• Infrastructure development– Telecommunication– Waterways, ports and shipping– Airports and airlines– Roads and highways – SEZ

• Township • Education• Health, etc.

New Projects of ASEAN-India Connectivity: Recommendations

• Completion of Chennai–Ennore Port Road Connectivity Project• Completion of National Highway Development Programme (NHDP), Phase

VI• Completion of Dedicated Freight Corridor (DFC) projects • Linking Chennai with DFC projects • Capacity augmentation of airports in Tamil Nadu and North East India• Capacity augmentation of seaports in Tamil Nadu• Completion of Delhi–Mumbai Industrial Corridor (DMIC)• Development of Chennai–Bangalore–Mumbai Industrial Corridor (CBMIC)• Completion of the feasibility study of PRIDe (Peninsular Region Industrial

Development) corridor• Completion of the missing links of India–Myanmar–Thailand Trilateral

Highway• Completion of the feasibility study of Delhi–Hanoi Railway Link (DHRL)• Completion of the Kaladan Multimodal Transit Transport Project (KMTTP)• Developing Mekong–India Economic Corridor (MIEC)• New flights and newer connection between ASEAN countries andIndia

Challenges• Funding of regional infrastructure projects

(uncertain global economic environment)– Institutional mechanism– Financing instruments

• Stronger institutions for regional cooperation

• Supporting skill• Stronger coordination• Land acquisition, environment, a.o

Lessons from GMS

• Connectivity works – impact on trade and poverty

• Physical connectivity needs resources and time

• Software connectivity needs time and resources

• Capacity building and political commitment important

• Demand-side factors also important

Vision for ASEAN-India Single Market

Harmonized & integrated road and railway network

Maritime & waterways network

Aviation policy

One ‘Customs’

Transit Competition Policy

EU (10) ✓ ✓ ✓ ✓ ✓ ✓

ASEAN ✓ ✓ ✓ ✓

NAFTA * ✓ ✓ ✓ ✓* ✓

SAARC

ASEAN Economic Community: 2020SAARC Economic Union: 2020

* Except US and Mexico

Current Status

Concluding Remarks • Trade between India and East Asia is the

major development• Lack in connectivity will slow down the

integration process• Presence of regional infrastructure is

negligible • India-ASEAN connectivity holds the key to

deeper Asian integration • An integrated action plan for achieving a

common market by 2020 is required.

Thank you