First meeting of the Working Group on Dry Ports · Example of joint-venture model: CONCOR ICD at...
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Policies and Issues Relating to the development of Dry Ports Agenda item 5 Document E/ESCAP/DP/WG(1)/2 First meeting of the Working Group on Dry Ports Bangkok, 25-26 November 2015
Transcript of First meeting of the Working Group on Dry Ports · Example of joint-venture model: CONCOR ICD at...
Policies and Issues Relating to the development of Dry Ports
Agenda item 5
Document E/ESCAP/DP/WG(1)/2
First meeting of the Working Group on Dry Ports
Bangkok, 25-26 November 2015
An assessment of trends in the development
of dry ports, and policies underlying their
development, in selected countries of the
UNESCAP region
Policies and issues relating to dry ports
ESCAP study on ‘Planning, Development and Operation of Dry Ports of International Importance’
Information obtained during fact-finding missions
to:
o Albury/Wodonga and Canberra. Australia;
o Kunming and Beijing, China;
o Dadri, New Delhi and Whitefield/Bangalore; India,
o Uiwang and Sejong City, Republic of Korea; and
o Lat Krabang, Thailand
Content What is the presentation about?
Definition of dry ports
Policies and issues influencing dry port development:
a) Function and location issues
b) Dry Port ownership
c) Dry port development incentives
Lessons learnt
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Definition
A dry port of international importance:
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“refers to an inland location as a logistics centre
connected to one or more modes of transport for the
handling, storage and regulatory inspection of goods
moving in international trade and the execution of
applicable customs control and formalities.”
(Article 1 of Inter-governmental Agreement on Dry Ports)
Function of dry ports
Terminology:
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All of the above share the common characteristic that their main functions
are to:
Inland Container Depots
Container Freight Stations
Dry Ports
Inland Clearance Depots
(a) complete customs and other border crossing formalities for traded
cargo, and
(b) to transfer this cargo between the different modes used for
transportation between a port origin and an ultimate inland
destination, or vice versa
Inland port 2
TGL 2a TGL 2b TGL 2c
Seaport 2
Seaport 1
Inland port 1
TGL 1a TGL 1b TGL 1c
Note: TGL = trade generating location
Rail or Inland Waterway Transport (possibly also Long Distance Road Haulage): distance usually ≥ 300 km
Local road transport distance, no more than 30-40 km from inland port
Dotted lines show future direct flows of customs clearance procedures and documentation between Inland Ports
Maritime border
Location
Location
The distances between dry ports and seaports or other trade origins or destinations may be short or long, for example:
China, India:
Some major inland manufacturing and commercial centres
may be 1,400 – 1,800 km from the sea ports
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Central Asia:
About 1,000 – 8,000 km between origin and outlet to the sea
South Korea, Thailand:
Distance between trade origins or destinations and sea ports
are in the range of 100 – 400 km
Location
Railways can offer significant cost efficiency for freight (including container)
haulage over distances in excess of 300 km
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Considering intermodality to maximise international trade and minimize total transport costs
It may be supported in this role by truck transport which assumes a local feeder
role, involving the local distribution of traded commodities between inland ports
stations and the trade originating and terminating locations, over distances which
rarely exceed 50 km
Location
Dry ports are normally located in the vicinity of:
(a) inland capitals, provincial/state capitals; and/or
(b) existing and/or potential production and consumption centres with
access to highways and/or railways including the Asian Highway
and/or Trans-Asian Railway, as appropriate.
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What is an ideal location for a dry port?
Dry ports have transport connections to other dry ports, border posts/land
customs stations/integrated check posts, seaports, inland waterway
terminals and/or airports.
With dry ports being seen to have a main function of supporting the movement of
international trade between inland origins or destinations and seaports, for which
purpose they need to be located within, or close to, the sources of trade, with high
quality links for local transport and to seaports.
Dry Port Ownership Various approaches
Full ownership by the public sector;
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Full ownership by the private sector;
Joint public/private sector ownership;
Public/Private Partnerships (PPPs).
Dry Port Ownership
Example of PPP model: Moorebank Intermodal Terminal, Australia
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Source: Qube holdings Ltd., Investor Presentation, June 2015, Moorebank Integrated Precinct
Dry Port Ownership
Example of joint-venture model: CONCOR ICD at Dadri, India
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Leasing of CFS area to Joint Venture Partners, Dadri ICD
Source: Shri M K Nabi, Chief Manager of ICD Dadri, Noida, 19 October 2015
Joint venture partner Total area leased (m2)
Albatross Inland Ports Pvt.Ltd. 90,000
CMA-CGM Logistics Park (Dadri) Pvt.Ltd. 60,000
Allcargo Logistics Park Pvt.Ltd. 40,000
APM Terminals (Star Track Terminals Pvt.Ltd) 67,000
Total 257,000
Dry Port Ownership
Example of joint-venture model: CONCOR ICD at Dadri, India
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Dry Port Development Incentives
Provision of low cost land
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Governments can encourage the establishment of dry ports through a range of incentives designed to attract private sector investment:
Subsidised infrastructure
development
Tax holidays or waivers
Provision of preferential freight rates
Dry Port Development Incentives
Financial incentives generally
applicable at the level of provincial and
local governments
All terminal land is owned by the
government and payment for its use is
recovered in the form of land taxes,
payable by terminal operators
Often, railway freight rates are used in
order to modify the level of demand for
rail transport, and hence the demand
for rail served inland ports
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The example from Yunnan Province, China
Dry Port Development Incentives
The Inter-Ministerial Committee
(IMC) for ICDs and CFSs assesses
and approves applications for the
development of ICDs
No direct incentives are provided in
India for the development of inland
ports, except that the activities of
state government agencies in
securing land for terminal
development may succeed in
delivering land parcels at less than
market rates
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The case of India
Developing dry ports Lessons to remember
Efficient planning is critical as intermodal facilities in transport
infrastructure are large and complex; they reach full maturity
over a long period and require favourable conditions to develop
well;
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Governments need to formulate context specific strategies for
intermodal development, including public infrastructure funding
priorities;
Crucial to build effective partnerships and climate of confidence
among all public and private stakeholders.
