44
Regional Infrastructure for Regional Integration in South Asia
Prabir DeRIS
2nd South Asia Economic Summit11-12 December 2009
New Delhi
South Asia has high trade potential, but largely unrealized
• Regional trade in South Asia is moving below potential [RIS]– Intra-regional trade in 2008: US$ 11 billion (approx.)– Intra-regional trade potential: US$ 40 billion – About 73% of intra-regional trade potential is remained
unrealized• Causes of high underutilization of intra-regional
trade are mostly economic in nature – High trade barriers – both visible and invisible– Poor transportation links– Inadequate trade facilitation measures – Lack of supply capabilities of LDCs.
Elements holding back South Asia’s integration
• Inadequate infrastructure – national and regional (inadequte & poor stock and link of infrastructure)
• Absence of regional transit trade (no regional transit)
• Poor institutions and governance (no dedicated institution)
• High trade transaction costs (transport costs outweigh tariffs)
National infrastructure largely inadequate
• Infrastructure gap in South Asia in terms of the index widened than narrowed.
• Laggard areas (pocket of deficits) in South Asia
• South Asia’s growth potential will be realized only if we can narrow the infrastructure gap, not only between them but also with the global best practice.
1991 2000 2005Index Rank Index Rank Index Rank
India 3.48 50 3.95 49 4.49 51
Sri Lanka 2.57 62 3.18 56 4.35 53
Pakistan 2.39 64 2.26 68 2.89 66
Bangladesh 1.83 73 2.12 71 2.5 74
Nepal 1.29 81 1.37 81 1.38 86
Countries
South Asia in Global Infrastructure Rankings: RIS Index
Sources: Kumar and De (2008)
Poor links in regional infrastructureSector Countries Particular
Delhi – Lahore
Amritsar-Nankana Sahib
Amritsar – Lahore
Poonch - Rawalakot
India and Pakistan
Srinagar - Muzaffarabad
Kolkata – Dhaka India and Bangladesh
Road transportation (passenger bus services)
Agartala – Dhaka
Kolkata – PhuentsholingIndia and BhutanSiliguri – Phuentsholing
Delhi – Lahore India and PakistanRail transportation (passenger train services)
Jodhpur - Karachi
India and Bangladesh Kolkata - Dhaka
India and Bhutan
India and NepalEnergy (power trading)Power transmission lines
India and Sri Lanka*
Source: RIS (2008)
*Proposed
Lack in regional transit
Agreement Type MFN Trade MFN Transit GATT signatories
India-Bangladesh Bilateral Yes No Yes
India-Nepal Bilateral Yes Yes Yes
India-Bhutan Bilateral Yes Yes India – member; Bhutan – observer
India-Pakistan Bilateral No No Yes
Pakistan-Afghanistan Bilateral Yes Yes Pakistan – memberAfghanistan – observer
Bangladesh-Nepal Bilateral Yes Yes Yes
Bangladesh-Bhutan Bilateral Yes Yes Bangladesh – member, Bhutan – observer
Bhutan-Nepal Bilateral Yes No Nepal – member, Bhutan – observer
Source: De et al (2008)
Slow growth in regional transit trade
0
200
400
600
800
1000
1200
1400
1600U
S$
mill
ion
Intra-subregion 17.21 10.71 24.07
Extra-subregion 680.07 1458.77 1281.51
1991 2000 2006
Source: De et al, 2008
Borders highly congested
Subramanian and Arnold
(2001)
Das and Pohit(2006)
De and Ghosh(2006)
Survey year: 1998
Survey year: 2002
Survey year: 2005
Transaction costs (% of shipment value)*
- 10.38 16.80
Border crossing delays (days)** 2.5 3.63 3.92
Types of documents required at border (No)
29 - 17
Copies of documents required at border (No)
118 - 67
ParticularsTransaction Time and Cost for India’s Overland Exports to Bangladesh
Source: De and Ghosh (2008)
Border contains high concentration of poor
Country Bordering states Bordering with
Income per capita (US$), 2006 (avg.)
Rural poverty rate (%), 2004-05 (avg.)
Country HDI 2005
North-eastern states (7), West Bengal
Bangladesh 690 (860)
34 (22)
Western and North-western states (4)
Pakistan 910 [800*](860)
32(22)
Bangladesh All states** (4) India 450 53 0.547
Pakistan Eastern provinces (2) India 890 (800) 36 (32) 0.551
Nepal Southern states (5) India 300 (320) 48 (46) 0.534
0.619India
Source: De (2009)
High transportation costs making regional trade costly
1656.50
1485.20
1675.80
828.70
110.10
1327.50
59.90
251.70
40.70
717.70
299.40
192.70
0.00 500.00 1000.00 1500.00 2000.00
Bangladesh
India
Nepal
Pakistan
Sri Lanka
South Asia*
Avg. Freight Rate (US$/TEU)
International
Inland
0
20
40
60
80
100
120
(% o
f tot
al c
ost)
International 3.49 14.49 2.04 46.41 73.12 12.10
Inland 96.51 85.51 97.96 53.59 26.88 87.90
B'desh India Nepal Pakistan Sri Lanka S'Asia*
Estimated Average Freight Rates in 2005
Composition of Inland and International Transport Costs
Source: De, P (2008)
Estimated Ad-valorem Transport Costs in 2005*
14.1315.79
41.53
13.29
3.00
0
5
10
15
20
25
30
35
40
45
Bang
lade
sh
Indi
a
Nep
al
Paki
stan
Sri L
anka
Ad-
valo
rem
Tra
nspo
rt Co
st (%
of I
mpo
rt)
Notes: *As a percentage of import. **Trade weighted over all South Asian partners.
Wide-variations in transport costs
14.1315.79
41.53
13.29
3.00
0
5
10
15
20
25
30
35
40
45
Bang
lade
sh
Indi
a
Nep
al
Paki
stan
Sri L
anka
Ad-
valo
rem
Tra
nspo
rt Co
st (%
of I
mpo
rt)
At Country Level
Source: De, P (2008b)
63.42
37.34
27.16
26.76
15.02
12.02
10.74
7.14
4.46
2.70
2.04
1.80
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00
Agriculture and fo o d pro ducts
P aper and pulp
Chemica ls
Iro n and s tee l
Textile and c lo thing
Meta l
Trans po rt equipment
Rubber and plas tic
Lea ther
Machine ry and mechanica l appla inces
P harmaceutica ls
Elec trica l and e lecro ninc
Ad-va lo rem Trans po rt Co s ts (% o f impo rt)
At Commodity Level
Ad-valorem Transportation Costs (2005)
South Asia - net importer of weight• If a country (or a region) is
a net importer of weights, it will be having a net deficit in transportation costs
• The transportation of heavier goods would cost more than lighter goods. – If a country (or a
region) is a net importer of weights, it will be having a net deficit in transportation costs [e.g. China]
• Ad-valorem shipping prices are sharply increasing in product weight/value ratio– Elasticity is +0.4
[Hummels and Skiba(2004), JPE, Vol. 112]
Exporter
Importer Bangladesh India Nepal Pakistan Sri Lanka Total
Bangladesh 2.195 0.252 0.015 0.613 3.075
India 2.716 3.322 2.241 0.946 9.226
Nepal 7.351 8.127 0.863 0.584 16.924
Pakistan 2.613 3.850 0.517 1.351 8.330
Sri Lanka 0.884 1.550 0.654 0.828 3.917
Estimated Weight-Value Ratio (kg/US$) in 2005 by Bilateral Partners
Source: De (2008b)
Import of Weight per US$
Full regional connectivity –transportation costs hold the key
Importer Exporter Ad-valorem Transport Costs (%)* Applied Tariff (%)**
India 30.50 39.54
Nepal 6.20 4.46
Pakistan 17.40 15.64
Sri Lanka 20.70 18.56
Bangladesh 29.40 15.87
Nepal 48.20 22.66
Pakistan 45.00 24.35
Sri Lanka 11.90 23.29
Bangladesh 81.90 9.05
India 63.10 14.70
Pakistan 24.10 10.40
Sri Lanka 18.80 15.43
Bangladesh 21.10 6.58
India 53.60 7.91
Nepal 16.60 6.83
Sri Lanka 15.60 6.58
Bangladesh 13.20 6.81
India 5.00 9.20
Nepal 12.00 11.72
Pakistan 5.90 3.76
Sri Lanka
Pakistan
Nepal
India
Bangladesh
Estimated Bilateral Ad-
valoremTransport Costs
in 2005
Source: De (2008b)
Deepening South Asian integration
• South Asia has entered into the second era of regional integration.
• Vision is to achieve Common (Single) Market through Customs Union
Vision for Single Market
Harmonized & integrated road and railway network
Maritime & waterways network
Aviation policy
One ‘Customs’
Transit Competition Policy
EU (10) ✓ ✓ ✓ ✓ ✓ ✓
ASEAN ✓ ✓ ✓ ✓
NAFTA * ✓ ✓ ✓ ✓* ✓
SAARC
SAARC Integration Next Stages: Customs Union (2015) => Economic Union (2020)
* Except US and Mexico
Tasks ahead
• To enhance investments in infrastructure • To strengthen cross-border infrastructure• To improve the efficiency of border
corridors• To promote multimodal transportation and
opening of South Asia Regional Transit • To adopt South Asian Common Transport
Policy
18
Enhance infrastructure investments• To sustain 8% regional
GDP growth, South Asia needs US$ 108 billion every year (about 12% of regional GDP) in physical infrastructure sector
• Policy suggestions: – Manage the
infrastructure deficit through a regional infrastructure fund
– Exchange of experiences in infrastructure financing and development
Annual Investment Need (2008-2012)Countries
Amount(US$ billion)
Share in GDP (%)
Bangladesh 11.55 11.24
India 74.68 9.56
Nepal 3.44 12.22
Pakistan 13.28 10.78
Sri Lanka 4.90 12.07
Total 107.85 11.64
Infrastructure Investment Need
Source: RIS (2008)
Strengthen regional infrastructure• Rapid rise of regional trade and production network due to SAFTA,
India – Thai FTA, India – Sri Lanka FTA, a.o.– Automobile and components – Textile and clothing– Electrical and electronics
• Regional Infrastructure to help realize the regional trade potential.• South Asia yet to make a major breakthrough in cross-border
infrastructure projects (CBIP)– Latin America: US$ 68.27 billion by 2010 in CBIP
• High potential of CBIP in South Asia due to geographical contiguity.– India – Bhutan Partnership in CBIP (hydropower)
• Regional infrastructure attainment needs to be addressed explicitly as a part of the programme of SAARC for promoting balanced regional development.
• Need to adopt a regional strategy to facilitate CBIP– South Asia Regional Infrastructure Facility (SARIDF)
Regional infrastructure investment needs in Asia
• According to ADB/ADBI (ADB-ADBI, 2009), – Asia needs to invest approximately US$ 8 trillion in overall
national infrastructure between 2010 and 2020. • In addition, Asia needs to spend approximately US$ 290
billion on specific regional infrastructure projects in transport and energy that are in the pipeline. – Of these regional projects, 21 high priority projects that could be
implemented by 2015 at a cost of US$ 15 billion have been identified.
– The successful implementation of these high-priority projects and their wider regional benefits would create a strong drive toward further strengthening regional infrastructure networks.
• This amounts to an overall infrastructure investment need of about US$ 750 billion per year during 2010-2020.
Source: ADB-ADBI (2009) Infrastructure for Seamless Asia, ADBI, Tokyo
South Asian transportation integration
• Three strategies:– Asian level planning – UNESCAP– Regional / subregional level planning &
implementations: ADB [SASEC]– National level planning & implementations:
Individual countries, ADB, a.o• UNESCAP: ALTID [AH + TAR]
India’s initiatives in South Asia• India is providing assistance of Rs 7.47 billion for upgradation/
construction of the 215 km long road from Zaranj to Delaram in Nimroz Province in Afghanistan. The project commenced in July 2004 and a major part is completed in June 2008.
• India has developed a 34-km road project (Pasakha-ManitarRoad) in Bhutan to avoid the unstable area at Sorchen on Thimphu-Phuentsholing Highway has been completed and handed over to Royal Government of Bhutan in February 2008.
• India had upgraded the Tamu-Kalewa-Kalemyo road (160 km) in Myanmar across Manipur from 1997 to 2001 at a cost of Rs. 1.20 billion. The Government of India are presently responsible for upkeep of the TKK road in Myanmar.
• India and Myanmar signed agreement (March 208) to develop Kaladan multi-modal transit transport project in Myanmar with an investment of Rs. 5.45 billion. It envisages connectivity between Indian ports and Sittwe Port in Myanmar, and road and inland waterway links from Sittwe to India’s North Eastern Region (NER). The time-frame for the project is 5 years from the date of actual commencement of the project.
Regional transport: Progress so far• There has been some progress in regional transportation in South Asia in recent years.
– After the 14th SAARC Summit in 2007, the SAARC Ministers of Transport for the first time met in New Delhi on 31 August 2007.
– SAARC Transport Ministers agreed to accord a Regional Transport and Transit Agreement, and a Regional Motor Vehicle’s Agreement in 2008.
• Following SRMTS, South Asian countries have decided to launch few pilot subregionaland regional projects:
• Birgunj-Kaatihar-Singhabad-Rohanpur-Chittagong with links to Jogbani, Biratnagar and Agartala;
• Kathmandu-Birgunj-Kolkata/Haldia; • Agartala-Akhaura-Chittagong; • Phuntsholing and Hashimara; • Colombo and Chennai; • Ferry link - between Colombo and Cochin and Colombo and Tuticorin; • Air link - Malé-New Delhi and Islamabad-New Delhi; • Establishment of modern border crossing facility at Phuntsholing.
• Feasibility study done by India to help extend railway networks in Bhutan, Nepal, Myanmar.
– Feasibility study for setting up railway line between Birganj and Kathmandu (160 km) completed in October 2008.
– Feasibility study for Bhutan going on– Construction of railway line from Jiribam-Tupui (near to Imphal) has commenced
• Agreement signed with Myanmar on Kaladan Multimodal Transport project.
Common Transit Procedure for South Asia
Start
MS1 MS2 MS3 MS4 MS5End
Start Start Start Start
End End End End
Start End
MS1 MS2 MS3 MS4 MS5
Traditional transit procude - a series of standardized national transit procedures
Common transit procedure - one single procedure from start to finish
No free circulation of goods in South Asia
MS1
NMS2MS3
MS5
MS7 MS8
MS6
MS4
NMS1MS2
NMS3
Third countryThird country
NMS4
NMS5
NMS6
MS: member state (SAARC) (Bangladesh)NMS: Non-member state (SAARC), (Myanmar)
Third country – (EU)
Common transit must for SAARC common market
MS1
MS1MS1
MS1
MS1MS1
MS1MS1NMS6
NMS2
NMS3
NMS4
NMS5
NMS1
Third country Third country
Regional transit – benefits to small countries• Bangladesh can earn hefty
revenue (over US$ 1 billion per annum) as transit fees from Indian vehicles plying to and from India’s North Eastern Region (NER) to rest of India using Bangladeshi soil using two corridors. The amount may go-up if other corridors between India and Bangladesh are also counted.
• Similarly, transit arrangement between India, Pakistan and Afghanistan will fetch a hefty royalty to Pakistan for movement of vehicles between India and Afghanistan using Pakistani soil.
• There are also huge gains associated with energy conservation due to transit and efficient use of resources.
CORRIDOR COUNTRIES BORDER CROSSINGS
REVENUE OF BANGLADESH
FROM TRANSIT (US$ PER ANNUM)*
SHILLONG –SYLHET –DHAKA –
KOLKATA (721 KMS)
INDIA & BANGLADESH
DAWKI (INDIA) /TAMABIL
(BANGLADESH), BENAPOLE
(BANGLADESH) / PETRAPOLE
(INDIA)
US$ 660 - 1060 MILLION
AGARTALA –AKHAURA –
DHAKA –KOLKATA (478
KMS)
INDIA & BANGLADESH
AGATALA (INDIA)/ AKHAURA
(BANGLADESH), BENAPOLE / PETRAPOLE
US$ 110 - 180 MILLION
Note:* Average during the period 2007 to 2010. Several assumptions applied. Source: RIS
Estimated Transit Revenue of Bangladesh for India – Bangladesh Trade
Option 1: Regional transit trade -international conventions
Convention Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka
Convention onRoad Traffic (1968)
No Yes No Yes No No Yes Yes
Convention on Road Signs and Signals (1968)
No No No Yes No No Yes No
Customs Convention on Temporary Importation of Commercial Road Vehicles (1956)
Yes No No No No No No No
Customs Convention on Containers (1972)
No No No No No No No No
Convention on International Transport of Goods under Cover of TIR Carnets (1975)
Yes No No No No No No No
Convention on the Contract for the International Carriage of Goods by Road (1956)
No No No No No No No No
Convention on the Harmonization of Frontier Controls of Goods (1982)
No No No No No No No No
Source: De et al, 2008
Option 2: Regional transit trade –GATT Article V
Groups of measures falling under areas Status in India
Strengthened non-discrimination √
Disciplines on fees and charges
Publication of fees and charges and prohibition of unpublished ones √
Periodic review of fees and charges √
More effective disciplines on charges for transit √
Periodic exchanges between neighbouring authorities √
Disciplines on transit formalities and documentation requirements
Periodic review √
Reduction/simplification √
Harmonization/standardization X
Promotion of regional transit arrangements √
Simplified and preferential clearance for certain goods X
Limitation of inspections and controls X
Sealing X
Cooperation and coordination on document requirements √
Monitoring √
Bonded transport regime/guarantees X
Improved coordination and cooperation
Among authorities √
Between authorities and the private sector √Source: Chaturvedi, 2006
Status of Trade Facilitation Measures on Transit (Article V): India
Option 3: Regional transit trade –A Regional Agreement
• SAARC Regional Transport and Transit Agreement (SRTTA), covering road and railways, to start with.
Regional transit: Progress so far
• All SAARC countries have in-principally agreed to regional transit.
• Motor Vehicle Agreement is being negotiated.• India’s initiative to strengthen land border
– India’s ICPs and LPA [INR 7 billion investment]• Harmonization of standards and mutual recognition in
transport sector has been the key issue in South Asia. – SAARC has Inter-Governmental Group (IGG) to advice
on facilitation of transport in South Asia.
Improve efficiency of border corridors • The full regional connectivity in South Asia would likely to
redistribute the regional trade and traffic among the existing corridors.
• An efficient corridor is very important in order to maximize the benefits of full regional connectivity.
• Efficiency of border corridors and land customs stations (LCSs) is an important factor for South Asia’s competitiveness and its trade prospects.
• The renewed objectives of the trade facilitation measures would be to – Constantly improve the performance of border corridors and land
customs stations (LCSs)– Eliminate the asymmetry between the LCSs pair– Effective coordination among border management authorities
• Set-up SAARC Single Window [Customs] – ASEAN case in point– India’s LPA and ICP forward looking steps
• Set-up South Asian Regional Standards Organization
Pair 1 Pair 2 Pair 3
Particulars Petrapole Benapole Changrabandha Burimari Jaigaon Phuentsholing
Country India Bangladesh India Bangladesh India Bhutan
Working time (per day)09.00 -17.00
09.00 –17.00
09.00 –17.00
09.00 –17.00
09.00 –17.00
09.00 –17.00
Working days (per week) for Immigration 7 7 7 7 7 7
Working days (per week) for Customs 7 6 7 6 7 7
Physical
Customs Yes Yes Yes Yes Yes Yes
Immigration Yes Yes Yes Yes Yes Yes
Security Yes Yes Yes Yes Yes Yes
Bank Yes* Yes* Yes Yes@ Yes* Yes*
Health Yes Yes No No Yes Yes
Warehouse Yes* Yes* Yes Yes Yes* Yes*
Weight bridge Yes Yes Yes No Yes Yes
Container handling yard No No No No No No
Currency exchange Yes* Yes* Yes No Yes* Yes*
Waiting room Yes Yes No No No Yes
Shops, hotels, & restaurants Yes Yes Yes Yes Yes Yes
Non-physical
e-commerce of CustomsYes
(ICEGATE)Yes
(ASYCUDA) No No No No
Internet Yes No No No No No
Telecom Yes Yes Yes* Yes+ Yes* Yes*
Fast Track Cargo Clearance Yes# No No No No No
Performance of LCSs – field survey result
Pair 4 Pair 5 Pair 6
PhulbariBanglaband
hPanitanki
Karkabitta Raxaul Birganj
India Bangladesh India Nepal India Nepal
09.00 –17.00
09.00 -17.00
09.00 –17.00
09.00 –17.00 09.00 – 17.00
09.00 –17.00
7 7 7 7 7 7
7 6 7 7 7 7
Yes Yes Yes Yes Yes Yes
Yes No Yes Yes Yes Yes
Yes Yes Yes Yes Yes Yes
No No Yes@ Yes@ Yes* Yes*
No No No No Yes Yes
Yes* Yes Yes* Yes* Yes* Yes*
Yes No Yes No Yes Yes
No No No No No Yes@
No No No No Yes* Yes*
No No No No No No
Yes* No Yes No Yes Yes
No NoNo
NoYes
(ICEGATE)$Yes
(ASYCUDA)^
No No No No No No
Yes+ Yes+ Yes* Yes+ Yes* Yes*
No No No No No NoFast Track Cargo Clearance
Telecom
Internet
e-commerce of Customs
Non-physical
Shops, hotels, & restaurants
Waiting room
Currency exchange
Container handling yard
Weight bridge
Warehouse
Health
Bank
Security
Immigration
Customs
Physical
Working days (per week) for Customs
Working days (per week) for Immigration
Working time (per day)
Country
Particulars
Relative efficiency of border customs
Relatively Efficient
Moderately Inefficient
Highly Inefficient
•Raxul, India •Birganj, Nepal•Petrapole, India•Jaigaon, India•Phuentsholing, Bhutan
•Benapole, Bangladesh•Burimari, Bangladesh•Kakarvitta, Nepal•Banglabandha, Bangladesh
Note: Assessment was done based on Data Envelope Analysis (DEA). For further details, please refer, De et al (2008)
South Asian Common Transport Policy: Immediate priorities
Road •Transport and transit agreements •Modern border crossings between India and its neighbours (both sides)•Simplified customs procedures for efficient clearance of goods•Setting-up dry ports, ICDs and associated facilities at border areas.
Rail •Regional rail transport agreement•Construction of missing links on the rail corridors•Extend railways to Kathmandu and Kabul, and establish a link with Colombo•Standardization of technologies including track, rolling stock and signalling•Modernisation of terminals, cargo and passenger hubs, bridges, etc.
Inland Waterways
•Longer term inland waterways agreement between India and Bangladesh•Agreement between India and Pakistan and India and Nepal•Setting-up container handling terminals on inland waterways in Bangladesh and India
Ports •Regional agreement for Short Sea Shipping in South Asia•Re-commissioning of Passenger Ferry Service between India and Sri Lanka•Expand port capacity in Bangladesh and Myanmar, especially to handle more container traffic
Air •Improve the capacity of airports and national carriers of Afghanistan, Bhutan, Nepal and Maldives•Development and redesign of international passenger terminals, especially at Afghanistan, Bhutan, and Nepal•Setting up South Asian Centre for Aviation
Transit •Signing SAARC Regional Transport and Transit Agreement (SRTTA) covering road and railways. •Adopt international conventions of transit trade
APIBM Corridor: Southern Silk Route Starting Point Country Ending Point Country Distance
(km)Road
conditionMax. Axle Load
(ton)
Kabul Afghanistan Torkham Afghanistan 224 Good 31
Afghanistan – Pakistan Border (Torkham Border)
Torkham Pakistan Wahgah Pakistan 607 Good 31
Pakistan – India Border (Wahgah – Attari Border)
Attari India Petrapole India 2042 Good 24
India – Bangladesh Border (Petrapole – Benapole Border)
Benapole Bangladesh Dhaka Bangladesh 168 Good 19
Bangladesh – India (NER) Border (Tamabil – Dawki Border)
Tamabil Bangladesh Dawki India 325 Good 19
India – Myanmar Border (Moreh – Tamu Border)
Moreh India Tamu Myanmar 606 Good 24
Tamu Myanmar Yangon Myanmar 1300 Partly good 21
Myanmar – China [to Kunming ]
Myanmar – Thailand [part of BIMSTEC Trilateral Highway, to Bangkok]
*Data sourced from UNESCAP (2007)
Total distance (Kabul to Yangon): 5272 km; No of border crossings (Kabul to Yangon): 5; Transportation time (Kabul to Yangon): 12 days.
APIBM corridor: ‘Win-win’ gain for all
Afghanistan
Pakistan
India
Bangladesh
Sri LankaMaritime Hub
Nepal Bhutan
Towards West Asia & Europe
Towards East Asia & Pacific
Myanmar
Maldives
Towards Central Asia
OverlandMaritime
China
Thailand
Towards Middle East
SubregionalSubregional interinter--linkages priority:linkages priority:SAARC SAARC –– BIMSTEC BIMSTEC –– GMSGMS
Delhi
Calcutta
Guw
ahat
i
Kabul
Lahore
Dacca GMS EWEC
Katmandu
Linking South Asia with East Asia: New transportation route (1)
Linking South Asia with East Asia: New transportation route (2
Deepening regional integration: Policy recommendations
• Narrowing the Infrastructure Gap and Initiatives for Infrastructure Financing
• Multimodal Transportation and Opening of South Asia Regional Transit
• Opening of SAARC regional road corridors • Building a Trans-South Asian Railway Network• Strengthening Inland Waterways, Ports and Shipping, and
Aviation• Accession to International Conventions of Transit Trade• Strengthening and Harmonizing Rules, Regulations, and
Standards • Simplification of Processes and Procedures in Trade
Transactions• Financing Cross-border Transport Projects • Strengthening Coordination among Countries and Stakeholders • Stronger security• South Asia Common Transport Policy
Comprehensive Transport Action Plan• A Comprehensive Transport Action Plan for entire
South Asia: – Integrate national connectivity with regional connectivity,
multimodal transportation– Transit MUST [no multiple handling at borders]– Remove the barriers at borders – visible and invisible– Improve regional air connectivity, touching capital cities of Asia– Negotiate MVA, Customs cooperation, etc. – More engagement of private sector in cross-border transport
projects– An exclusive South Asian fund for capacity building of LDCs and
landlocked countries in cross-border transportation • Keep expanding and strengthening South Asia’s overland
linkages through regional/subregional initiatives– ALTID – GMS corridors– CAREC highways– BIMSTEC highways– Other regional corridors [e.g MIEC]
