Transport Connectivity for Landlocked Countries as a tool of development
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1 Transport Connectivity for Landlocked Countries as a tool of development Jan.Hoffmann@UNCTAD.org Lahore, December 2013
2 1) Bali 2 brief comments upfront 2) UNCTAD s Review of Maritime Transport 2013 just released: How long to implement Bali? Which 4 countries register more than 50% of the world fleet? How many tons of seaborne trade? Who are the South Asian leaders in shipping connectivity? Which 2 countries build more than 2/3 of all ships? see:
3 Transport Connectivity for Landlocked Countries as a tool of development
4 More trade -> More transport supply -> More competition -> lower freights -> More trade
5 More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation
6 Better services -> More trade -> More income to finance infrastructure -> Better services
7 Transport Connectivity for Landlocked Countries as a tool of development
8 Transport networks Transport analysis: Past: Port-to-port Today: Door-to-door Future: Network Sources for maps: Transport for London
9 Bernhofen et al, 2013 The Economist 18 May 2013 Introducing containerization leads to more trade
10 (Arvis et al, 2013) Higher Container Shipping Connectivity leads to lower trade costs
11 Freight rate Better connectivity leads to lower freight rates 3'500 3'000 2'500 2'000 y = e x R 2 = '500 1' (Wilmsmeier and Hoffmann, 2008) Number of Carriers providing direct services
12 Freight rate more so than distance 3,500 3,000 y = x R 2 = ,500 2,000 1,500 1, (Wilmsmeier and Hoffmann, 2008) ,000 1,500 2,000 2,500 Distance
13 Liner Shipping Connectivity
14 Trends
15 Transport Connectivity for Landlocked Countries as a tool of development
16 Trade and Transport Facilitation is needed not to so much to cover distance, but to overcome border crossings.
17 The number of RTAs with trade facilitation provisions has grown six-fold in the last decade. Among new RTAs, more than 80% include Customs and other trade facilitation measures.
18 Interest of transit countries Transit traffic requires provision of services. Opportunities for investment in warehouses, vehicles and ports. Transit generates induced economic activities: restaurants & hotels, repairs & workshops, trade of petroleum products Economies of scale and improved connectivity reduce costs of the transit country s own trade
19 Bali TF agreement: on transit Article 11 Freedom of Transit Article 1 (publication) Article 2 (consultations) Article 6 (penalty prov.) Article 7.7 (AEO) Article 8 (border agency cooperation) Article 10 (formalities) Also cover transit!
20 Special chapter in UNCTAD s 2013 Review of Maritime Transport Assurance of uninterrupted transit: Consignments between trusted transit operator traders through trusted transit operator logistics providers should not be interrupted by any agency for any reason except in the case of clear evidence of a threat or violation. Assurance of uninterrupted transit should be adopted as a basic feature of all trusted transit operator programmes.
21 Transport Connectivity for Landlocked Countries as a tool of development
22 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade, save time and frustrations, improve governance, empower women entrepreneurs, strengthen regional integration, modernize public administrations, foster IT capacities, and increase revenue collection.
23 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade
24 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade save time and frustrations
25 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade save time and frustrations, improve governance
26 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade save time and frustrations improve governance empower women entrepreneurs
27 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade save time and frustrations improve governance empower women entrepreneurs strengthen regional integration
28 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade save time and frustrations improve governance empower women entrepreneurs strengthen regional integration modernize public administrations
29 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade save time and frustrations improve governance empower women entrepreneurs strengthen regional integration modernize public administrations foster IT capacities
30 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade save time and frustrations improve governance empower women entrepreneurs strengthen regional integration modernize public administrations foster IT capacities Improve security
31 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade, save time and frustrations, improve governance, empower women entrepreneurs, strengthen regional integration, modernize public administrations, foster IT capacities, and increase revenue collection.
32 Beyond trade policies TTF is good for development Trade and Transport Facilitation reforms help to formalize trade, save time and frustrations, improve governance, empower women entrepreneurs, strengthen regional integration, modernize public administrations, foster IT capacities, Improve security, and increase revenue collection.
33 Developing ICTs The introduction of ICTs by Customs encourages SMEs to also connect to the internet
34 Developing Transit A framework for bank guarantees for transit trade helps improve the financial system
35 Developing trust Increased transparency is good for good governance in general
36 Developing Single Windows A single window experience for trade may help to introduce single windows elsewhere
37 Implementation is more difficult for LDCs
38 More trade -> More transport supply -> More competition -> lower freights -> More trade
39 More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation
40 Better services -> More trade -> More income to finance infrastructure -> Better services
41 Transport Connectivity for Landlocked Countries as a tool of development
42 Lower Trade Costs -> More trade -> Economies of scale -> Lower Trade Costs for both: landlocked and transit countries
43 Transport Connectivity for Landlocked Countries as a tool of development Thank you Jan.Hoffmann@UNCTAD.org Lahore, December 2013
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