UNESCAP Recommendations and Tools for Transport Facilitation Measures Sandeep Raj Jain/Heini...

UNESCAP Recommendations and Tools for UNESCAP Recommendations and Tools for Transport Facilitation MeasuresTransport Facilitation Measures

Sandeep Raj Jain/Heini SuominenSandeep Raj Jain/Heini SuominenTransport Facilitation & Logistics SectionTransport Facilitation & Logistics SectionTransport DivisionTransport Division

Regional Conference on Regional Conference on Strengthening Transport Strengthening Transport

Connectivity and Trade Facilitation Connectivity and Trade Facilitation in South and South-West Asiain South and South-West Asia

Lahore, Pakistan, Lahore, Pakistan, 9-10 December 20139-10 December 2013

Background to ESCAP Facilitation ToolkitBackground to ESCAP Facilitation Toolkit

Increase in intra-regional trade requires opening more land borders and increasing efficiency of existing borders. However, control authorities are faced with increasing challenges some of them are mentioned, that make them hesitant to open more borders

National security

Trafficking (Drug and Human)

Smuggling

Diversion of goods in transit leading to loss in revenue

Counterfeited goods and currency

Lack of capacity of officials

Components of ESCAP Facilitation ToolkitComponents of ESCAP Facilitation Toolkit

1. Secure Cross-Border Transport Model

2. Efficient Cross-Border Transport Models

3. Model on Integrated Controls at Border Crossings

4. Time/Cost-Distance Methodology

Secure Cross-Border Transport Model Secure Cross-Border Transport Model Key technical features and functioning of the ModelKey technical features and functioning of the Model

Tracking UnitTracking Unit Contains a SPS module, a CCS module and

a radio frequency (RF) module

E-sealE-seal Contains a normal bolt or cable to lock the

door and a mechatronic component to record its status

E-lockE-lock Combines tracking unit and E-seal, contains

SPS module, a CCS module

Monitoring PlatformMonitoring Platform Contains central server and application

software

PDAPDA To initiate trips

Secure Cross-Border Transport Model Secure Cross-Border Transport Model Institutional arrangementsInstitutional arrangements

Application of the system requires close cooperation between the control authorities of the countries formalized by bilateral bilateral agreement or a mutual recognition agreement or a mutual recognition agreement that may include following:agreement that may include following:

Sharing of information Use of similar or compatible application software Use of jointly accredited devices, such as

e-Seal/e-Lock and tracking unit Mutual recognition of registration or

guarantee and sharing of registration information

Mutual recognition of inspection results if joint inspections are not possible

Assistance in the case of exceptional events

Mutually agreed requirements for temporary admission of vehicles

Increase in safety and security Real time enforcement possible Reduced violations during the trips Increased capacity to handle more

traffic Reduction in the need for Customs

escort Less congestion at origin, border

crossing and destination;

For transport operators Reduction in transport time Less transaction cost Increase predictability of consignment

and therefore supply chain Optimal fleet management and asset

utilization Paperless transactions possible

Secure Cross-Border Transport Model Secure Cross-Border Transport Model Possible benefits Possible benefits

For control authoritiesFor control authorities

Secure Cross-Border Transport Model Secure Cross-Border Transport Model ConclusionConclusion

Similar system are already in operation in parts of Africa, Latin America, in Jordan, Thailand, China, Hong Kong, China, Republic of Korea

Development of secure trade and transport lanes- mention of such system in transit agreements ( Afghanistan-Pakistan)

Use of new technologies in transport can address the pressing concerns of the control authorities while facilitating

Ultimately, we have to control ‘the 5’ moving in international trade- people, goods, conveyances, money and information

Efficient Cross-Border Transport ModelsEfficient Cross-Border Transport Models

Background: Operational environment always unique, with its particular challenges and non-physical barriers

Multiple solutions with competing benefits and challenges Different views in private and public sector Benefits and costs of solutions not directly comparable

No agreed methodology for assessment of most appropriate approach Often no thorough assessment Waste of resources Continuation of ineffective practices

UNESCAP ECBMs can offer:

Analytical framework Systematic assessment of specific operating environment

Solutions through regional analysis Freight and passenger transport for road and rail

Issues Trailer swap

Container swap

Manual transloading

No transloading

Solution/Arrangement Difficulty Cost

Transport permit for motor vehicle

x Multilateral agreement 5 5

Bilateral agreement 3 3

Temporary importation

Of prime mover x Accession to international convention

4 4


Double registration 1 3

Of trailer x x Accession to international convention

4 4


Double registration 1 3

Of container x x x Accession to international convention

3 3


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.Total number of issues 8 7.5 2.5 19

Total difficulty points (min) 14 16 6 46

Total cost points (min) 20 18.5 7 54

3. Comparison of cumulative barriers

1.Identification of issue

2. Evaluation of solution(s)


Factor Trailer Swap Container swap

Manual transloading

No transloading

Difficulty 2 2.25 1.25 4.5

Cost 2.5 2.5 1.5 5

Efficiency 1 3 5 1

Reliability 1 2 3 1

Total 6.5 9.75 10.75 11.5


Understanding and comparison of overall benefit and challenges– Incorporating both institutional and operational issues, public and private

sector perspectives

Understanding factors underlying current practice,• E.g. why is manual transloading popular in many countries?

Understanding the way forward in terms of selected alternative,• Including requirements for implementation and distribution of cost and

benefit

Weighting can be adjusted to reflect situation and priorities of a corridor or a group of countries


Model on Integrated Controls at Border CrossingsModel on Integrated Controls at Border Crossings

Various control agencies operate at borders, with differing but overlapping data needs


Considers the procedures at the border as information flow

Provides concept of integrated use of ICT-based systems and modern equipment at land border crossings on the basis of sharing of information


Benefits

More efficient flow of information

Minimized interventions in the process of crossing borders while maintaining good control

Optimized use of modern equipment by different agencies and inter-agency sharing of the results of the inspections

Can be used as general guidance for technical design of border crossing workflow

Time/Cost – Distance MethodologyTime/Cost – Distance Methodology

Graphical representation of cost and time data associated with transport processes.

The purpose of the model is to identify inefficiencies and isolate bottlenecks along a particular route by looking at the cost and time characteristics of every section along a route.

The “UNESCAP Time/Cost – Distance Methodology” enables policy makers to:

compare - over a period of time - the changes of cost and/or time required for transportation on a certain route;

compare and evaluate competing modes of transport operating on the same route;

compare alternative transport routes.

Simple to use

Can be understood by all

Can be utilised to measure and assess the performance of any transport corridor (unimodal or intermodal)

Includes both transport (road, rail, inland waterway, maritime) and intermodal transfer (ports, rail-freight terminals, inland clearance depots) as cost and time components.

Provides a ‘snap-shot’ of the present situation or can track changes over time

Powerful instrument for international cooperation

Minimum information required Route from origin to destination, including border crossings

Mode of transport for each leg (e.g. Road/Rail/Sea/Air)

Distance for each leg/mode

Time for each leg/mode

Cost for each leg/mode

Time/Cost – Distance MethodologyTime/Cost – Distance Methodology

Transport to border

Wait at border crossing/change transport mode

Transport to sea port

Wait at sea port

Sea transport

500 km 1000 km 2000 km1500 km

Day 4

Tim

e

Day 3

Day 2

Day 1

$400

Cost

$300

$200

$100

Distance

Point of Origin

Destination

Regional Strategic Framework for Facilitation of Regional Strategic Framework for Facilitation of International Road TransportInternational Road TransportFundamental issues in facilitation of international road transportFundamental issues in facilitation of international road transport

i.i. Road transport permits and traffic rightsRoad transport permits and traffic rightsii.ii. Visa issuesVisa issuesiii.iii. Temporary importation of road vehiclesTemporary importation of road vehiclesiv.iv. Insurance of vehiclesInsurance of vehiclesv.v. Vehicles weight and dimensionsVehicles weight and dimensionsvi.vi. Vehicle registration and inspection certificateVehicle registration and inspection certificate

Key modalities for facilitation international road transportKey modalities for facilitation international road transport

i.i. Building an effective legal regimeBuilding an effective legal regimeii.ii. Wider application of new technologiesWider application of new technologiesiii.iii. Development of professional trainingDevelopment of professional trainingiv.iv. Establishment and strengthening of national coordination Establishment and strengthening of national coordination

mechanismsmechanismsv.v. Promotion of joint controls at border crossingsPromotion of joint controls at border crossingsvi.vi. Promotion of economic zones at border crossingsPromotion of economic zones at border crossingsvii.vii. Application of facilitation toolsApplication of facilitation tools

Objectives:Objectives: Exchange information and share

experience Pinpoint areas of legal conflicts while

implementing different subregional/bilateral agreements

Suggest solutions for legal conflicts where a country is party to two or more agreements

Suggest ways to connect countries in different subregions

Activities:Activities: Information and experience sharing,

seminars, expert meetings, professional training, group studies and individual studies

Building an effective legal regime for transportBuilding an effective legal regime for transport

Regional NetworkRegional Networkof of

Legal and Technical Experts Legal and Technical Experts for for

Transport FacilitationTransport Facilitation

Inter-agency coordination mechanism for integrated approach to trade Inter-agency coordination mechanism for integrated approach to trade and transport facilitationand transport facilitation

Transport facilitation is challenging due Transport facilitation is challenging due to involvement of numerous stakeholdersto involvement of numerous stakeholders

Each agency has a different mandate Each agency has a different mandate regarding goods/vehicles/people regarding goods/vehicles/people crossing the borderscrossing the borders

More often, the agencies work is silos More often, the agencies work is silos leading to duplication of inspections and leading to duplication of inspections and informationinformation

Interagency coordination mechanisms Interagency coordination mechanisms provide forum for agencies to come provide forum for agencies to come together for common purposetogether for common purpose

While control measures are instituted While control measures are instituted trade, transport and transit are facilitated trade, transport and transit are facilitated

Guidelines for Establishing Guidelines for Establishing and Strengthening National and Strengthening National

Coordination Mechanisms for Coordination Mechanisms for Trade and Transport Trade and Transport

Facilitation in the Facilitation in the ESCAP region ESCAP region

Joint Customs controlsJoint Customs controls

Export Country Import Country

Control measures

BORDER

DATA

Declaration

Control Measures

Declaration

Thank you for your AttentionThank you for your Attention

http://www.unescap.org/ttdw/common/TFS/FacilitationTools.asp

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