Completion Report

Project Number: 51029-001 Technical Assistance Number: 9547 August 2021

People’s Republic of : Hubei Xiangyang Integrated Sustainable Transportation and Logistics Planning and Strategic Study

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TECHNICAL ASSISTANCE COMPLETION REPORT

TA Number, Country, and Name: Amount Approved: $400,000.00 TA 9547-PRC: Hubei Xiangyang Integrated Sustainable Revised Amount: Not applicable Transportation and Logistics Planning and Strategic Study Executing Agency Source of Funding: Amount Undisbursed: Amount Used: Xiangyang Municipal Finance Technical Assistance $20,020.00 $379,980.00 Bureau Special Fund (TASF-other sources) TA Approval Date: TA Signing Date: TA Completion Date 12 July 2018 15 August 2018 Original Date: Latest Revised Date: 31 December 2019 30 June 2020 Financial Closing Number of Date: Extensions: 23 July 2020 1

TA Type: Nature of Activity: TA Arrangement: Knowledge and support TA Policy advice

Description The technical assistance (TA) was prepared to support the Government of the People’s Republic of China (PRC), through the Xiangyang Municipal Finance Bureau (the executing agency) and Xiangyang Municipal Transport Bureau (XMTB) (the implementing agency), to develop a sustainable, modern, integrated transport and logistics system in Xiangyang City, Hubei Province. This was supported through the development of an integrated transport plan, a logistics improvement plan, a public transport feasibility study, and capacity strengthening.

Expected Impact, Outcome, and Outputs The TA was aligned to the overall development impact: modern, green, efficient, livable urban areas in Xiangyang developed. The expected outcome was that modern, sustainable, integrated transport and logistics systems were promoted. Outputs included (i) completion of a comprehensive, integrated, and sustainable transport plan; (ii) completion of a logistics improvement plan; and (iii) capacity strengthened for multimodal integration and logistics.

Implementation Arrangements A consulting firm that specializes in transport and logistics planning was engaged through an output-based contract using quality- and cost-based selection on 14 December 2018, for services from 27 December 2018 to 31 December 2019 (12 months). A full lumpsum contract was negotiated with the consulting firm to deliver the outputs under the TA. The consultants were provided a furnished office within XMTB. In December 2019, an extension of 6 months to June 2020 was approved to explore possible public–private partnership (PPP) opportunities to be included as recommendations in the TA and to conduct a study tour for the XMTB, the implementing agency (IA), to become an operational, integrated logistics facility in Nanjing. The contract for the consulting firm was also extended to June 2020 at no additional cost.

Conduct of Activities Both output 1 and 2 produced sector reports which included prioritized action plans to guide integrated decision-making for XMTB and other stakeholders, particularly for selection and prioritization of transport and land use proposals. Output 2 also focused on modernizing the logistics industry to improve environmental sustainability, competitiveness and trade outcomes. The consultants undertook review and analysis of existing local, provincial and national transport and logistics plans, developed passenger and goods flows and demand models to understand the current state of transport and logistics in the city. They conducted interviews with key public and private sector stakeholders, including logistics providers, e-commerce businesses, and the general public to determine key needs and opportunities to improve transport and logistics in Xiangyang. The transport plan and logistics improvement plan were developed with close stakeholder collaboration and input throughout their development. The outputs were disseminated digitally.

The consultants developed key international best practice case studies and conducted several training sessions for the IA and other government agencies on models of implementation and models of operation for integrated, multimodal logistics facilities and systems. The XMTB provided direct feedback to ADB that the training was extremely helpful. Other trainings included operating philosophies for integrated, multimodal logistics, inland waterway transport, and multimodal transport integration and information sharing. Initially there was a plan to do a study tour in December 2019. The EA requested the study tour be delayed to January 2020 so they could focus on the Fourteenth Five-Year Plan (14th FYP) in December. The study tour did not materialize due to the outbreak of the coronavirus disease (COVID-

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19) pandemic in neighboring city, . ADB, EA, IA, and consultants agreed on a minor change in scope to replace the study tour with an additional deliverable, a feasibility study for a bus station, at no additional cost. The EA and IA selected a proposed project from the transport plan which they had included in their 14th FYP, the development of a bus station at a multimodal transport interchange in Xiangyang, and the feasibility study report was delivered in Q2 2021.

The TA improved decision-making and land use planning in Xiangyang and improved the sustainability of the transport and logistics system. The transport plan includes policy recommendations, suggested projects, and business models which prioritize public transport, encourage environmentally friendly transport technologies, and improve information sharing among departments to ensure seamless passenger transportation. It prioritizes projects and suggests policies which encourage electrification in the transport sector, and which would shift Xiangyang away from car-centric transportation toward mass rapid transit and active mobility. It includes an assessment of innovative rapid transit technologies that would contribute to Xiangyang’s objective of more environmentally friendly, efficient, integrated transport, including trackless tram and SuperBus1 technologies. It also investigates and makes recommendations for ways to improve business models for public transport services to ensure their financial sustainability.

The logistics plan introduces innovative tools for route planning and freight movements in the city. It encourages multimodal logistics, with specific recommendations for modal shift from truck to rail for bulk materials and long distances and better utilization of inland waterway transportation. It includes an assessment of different business models, including PPP where appropriate, to ensure financial viability and sustainability. The recommendations provided for both transport and logistics plans focused on maximizing support to the inclusive economic development of Xiangyang’s transport system, including infrastructure and environmental improvements.

Both public and private sectors were consulted throughout the TA. The TA demonstrated the value of interviewing industry and the general public to determine key transport and mobility needs, and how this approach can help to unify multiple agencies and departments in identifying and setting priorities. A multisector steering committee was established as part of the TA. Stakeholders from multiple departments and jurisdictions were involved at each key stage of plan development, as well as in the training sessions. This helped break down the government silos, leading to improved decision-making and collaboration.

Technical Assistance Assessment Ratings Criterion Assessment Rating Relevance The TA was highly relevant, providing an integrated transport plan, a Highly relevant logistics improvement plan, and crucial capacity strengthening activities for the XMTB to be able to implement the recommended policies and actions. The plan included an assessment of innovative rapid transit technologies and environmentally friendly transport in Xiangyang. The list of prioritized projects designed to improve transport and logistics for Xiangyang and a framework for project selection and implementation were developed using participatory techniques which involved all key stakeholders. The recommendations of the report and project list were directly relevant and included in the 14th FYP for Xiangyang, including recommendations to develop an inland port and an integrated central bus station. The TA was included in the country operations business plan for the People’s Republic of China, 2018–2020. The TA contributed toward a key outcome, better and more accessible low-carbon transport developed, in the country partnership strategy for the People’s Republic of China, 2016–2020, by encouraging public transport and inland waterway transport modal shift. Effectiveness The TA was highly effective in delivering the outputs and outcome. The Highly effective outputs included case studies, sector outlooks, and prioritized project plans.2 The outcome was that a modern, sustainable, integrated transport and logistics system would be promoted, evidenced by the adoption of recommendations from both the transport and logistics plan and inclusion of these in the 14th FYP. The bus station recommended under the transport plan was included in the 14th FYP, a feasibility study

1 The Ultra-Capacitor Super Bus from CRRC Zhuzhou Co., Ltd. is an 8 meter electric bus which can be recharged in 10 seconds using . 2 ADB. 2021. Hubei Xiangyang Integrated Sustainable Transportation and Logistics Planning and Strategic Study. Consutant’s report. Manila (TA 9547-PRC).

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Criterion Assessment Rating report was developed, and detailed design is underway. Further, the recommendation to develop waterway transportation and build ports, starting with Tangbaihe Port, to improve logistics competitiveness was adopted by the government. As of January 2021, detailed design and land approval procedures for Tangbaihe Port were underway. Further, the TA added value through conducting training on new concepts such as integrated planning, logistics hub operation, and the role of PPPs. The government has taken on board recommendations for private sector involvement and PPP, and have signed cooperation agreements with Shenzhen Yantian Port Co., Ltd., a world-class port enterprise, to invest, construct, and operate all the ports in Xiangyang, including Tangbaihe. The quality of the TA outputs was ‘satisfactory’ as well, and the client has expressed satisfaction with the outcome. Efficiency The TA was efficient in delivering the outputs and outcome within the Efficient estimated budget and timeframe. The main reports, including the transport plan (output 1) and the logistics plan (output 2) and training (output 3), were all delivered by December 2019, within the original timeframe. Although the timeframe was extended by 6 months at the request of the EA, it enabled additional scope to be undertaken, including investigation of PPP opportunities and a feasibility study. The consultants delivered quality reports and training and the additional deliverable, the feasibility study, within the period of the extension. Overall The TA is rated as highly successful. The TA produced the intended Highly Successful Assessment outcome and outputs and benefited the government and stakeholders. The prioritized project list for infrastructure improvement and operational advice including PPP for ports and policy suggestions identified in the transport and logistics plans were used as a basis for the development of Xiangyang’s 14th FYP. Further, the government has already begun to implement some of the key recommendations from the TA, demonstrating the relevance and sustainability of the activities and recommendations of the TA. Sustainability The outcome is most likely sustainable. The transport and logistics plan Most likely both emphasize priorities and recommendations which would improve sustainable sustainability of the transport network through reduced carbon emissions, improved business models, lower costs, and increased efficiency, particularly of public transport and logistics. Further, the stakeholders were actively consulted in the development of the prioritization framework and project implementation plans, building ownership over the outcomes which the EA then used as key inputs into the 14th FYP. The sustainability of the TA is also demonstrated as the government has already commenced implementation of some recommendations, including the development of the bus station which will improve environmental sustainability of Xiangyang’s transport system through modal shift. Further, they have engaged in a PPP arrangement with Shenzhen Yantian Port Co., Ltd., to invest, construct, and operate all the ports in Xiangyang. At present, they are already designing Tangbaihe Port and applying for land approval and construction procedures, a direct recommendation of the TA. This will further improve financial sustainability of port operations and logistics in Xiangyang through improved business models and efficiency gains.

Lessons Learned and Recommendations Design and/or planning The TA was well designed and included a stakeholder-centric approach to developing the transport and logistics plans which built ownership over the project outputs and outcome. Implementation and/or The project scope was modified during implementation due to the COVID-19 delivery pandemic to remove a study tour and add a feasibility study report in its place. The close communication and strong relationship established between ADB, consultants,

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and XMTB enabled this change to be made smoothly without compromising the outcome of the TA. Management of staff and The TA consultants spent a significant portion of time, particularly in the beginning of consultants the project, sitting in the XMTB offices and in the field conducting stakeholder surveys. This resulted in a strong relationship between the EA and the consultants and gave the consultants crucial first-hand insight to the challenges faced in Xiangyang. This enabled them to effectively tailor their international expertise and best practice to local conditions. Knowledge building Effective transport and logistics planning requires a multi-stakeholder approach. The use of participatory, multi-stakeholder workshops and training sessions, as well as in depth interviews with government stakeholders and industry enabled the consultants to build a deep understanding of stakeholder priorities across different government departments, and the key needs and opportunities for Xiangyang. This approach has resulted in effective capacity and institutional strengthening related to the importance of collaboration and information sharing, and understanding of the key role of the private sector. Stakeholder participation During TA implementation, training was provided to cross-sector government agencies and stakeholders. There was an active dialogue with multi-department stakeholders in identifying key economic and livelihood development prospects and ensuring that delivery is economically and environmentally sustainable. This approach built strong ownership and cross-departmental collaboration and is recommended for other TAs seeking to develop multimodal transport and logistics plans. Scaling up The timing of the TA and the inclusion of the recommendations into the 14th FYP has enabled the XMTB to scale up their transport and logistics development based on the TA’s recommendations. They have begun to implement projects that were included in the transport and logistics plans and apply their knowledge learned in the training sessions, particularly on PPPs. The approach adopted in this TA is relevant for replication in other cities for cross-sector government agencies coordination and planning for multimodal transport and logistics. Other lessons The TA included both national and international experts. The EA expressed that the TA consultants communicated well with the government, and delivered professional consulting work, training, and recommendations both in English and Chinese. However, the EA noted that although the technical experts could communicate well in both languages, the inclusion of a professional translator in the TA expert team would have improved the quality of the translation, particularly for the written reports. This would thereby improve the speed with which deliverables were finalized in both English and Chinese.

Follow-up Actions It is recommended that the government continue to implement the recommendations of the TA and in particular the projects which were included in the 14th FYP. In addition to the PPP that has been established in the port sector, public-private cooperation will be crucial for logistics. It is recommended that the government consider establishing a mechanism for public-private dialogue for the logistics sector to enable the sector to effectively communicate their needs and opportunities with the government.

Prepared by: Designation and Division:

Rebecca Stapleton Transport Specialist, EASI

Appendix 1 5

DESIGN AND MONITORING FRAMEWORK

Impact Modern, green, efficient, livable urban areas in Xiangyang developed (The Thirteenth Five-Year Plan for Economic and Social Development of Xiangyang)a Performance Indicators with Results Chain Targets and Baselines Achievementsa Outcome Modern, sustainable, a. 1 recommendation for a. Recommendation to improve sustainable transport integrated transport integrated, sustainable transport through developing a bus hub adopted and included in and logistics system adopted by the XMTB (2017 the 14th FYP promoted baseline: NA) b. 1 recommendation for logistics b. Recommendation to develop waterway adopted by the XMTB (2017 transportation and build ports such as Tangbaihe Port baseline: NA) has been adopted by XMTB and included in the 14th FYP. Outputs 1. Comprehensive, 1a. Transport sector gap analysis 1a. Completed and accepted by ADB and XMTB, May integrated, sustainable completed by December 2018 2019 transport plan (2017 baseline: NA) completed 1b. Integrated, sustainable 1b. Completed and accepted by XMTB, December transport plan completed by 2019 August 2019 (2017 baseline: NA) Updated to include the feasibility study and accepted by XMTB in June 2020 2. Logistics 2a. International logistics best 2a. Completed and accepted by ADB and XMTB May improvement plan practice study and gap analysis 2019 completed completed by December 2018 (2017 baseline: NA)

2b. Logistics improvement plan 2b. Completed and accepted by XMTB September completed by August 2019 (2017 2019 baseline: NA)

3. Multimodal 3a. 15 XMTB staff completed a 2a. The study tour was canceled due to the outbreak of integration and study tour and report better skills COVID-19 in Hubei province and was replaced with a logistics capacity and understanding of best feasibility study for a new bus station. strengthened practice multimodal logistics operating facilities by December The feasibility study was delivered in June 2020. 2019 (2017 baseline: NA)

3b. 15 XMTB staff have received 2b. Forty-seven persons were trained including 25 from training on models of XMTB, 16 from the railway department, and 6 from the implementation and models of county level transport department. Fifteen of the operation for integrated, participants were female (32%). Among the persons multimodal logistics facilities and trained, 66% reported their understanding across all systems by December 2019 training topics was greatly improved, and the remaining (2017 baseline: NA) 34% reported their understanding increased in specific topics.

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Actual Key Activities with Milestones 1. Comprehensive, integrated, sustainable transport plan completed 1.1 Gap analysis of Xiangyang transport infrastructure, systems, and policies (Q1–Q2 2019) 1.1.1 Review and analysis of existing local, provincial, and national transport and logistics plans. 1.1.2 International and national best practice case studies and lessons learned. 1.1.3 Development of current passenger and goods flows and demand analysis. 1.1.4 Stakeholder engagement to understand future demand, needs, challenges, and forecasts. 1.1.5 Identification of gaps between future state and current state.

1.2. Transport plan (Q2 2019–Q2 2020) 1.2.1 Development of recommendations for the improvement of transport in Xiangyang, with consideration of mobility and transit-oriented development principles, including infrastructure, policy, information systems, technology, multimodal connectivity, and other transport innovations. 1.2.2 Identification of project priorities for the short, medium, and long term.

2. Logistics improvement plan completed 2.1 International logistics best practice study and gap analysis (Q1–Q2 2019) 2.1.1 Detailed investigation of current logistics challenges and needs in Xiangyang. 2.1.2 International and national best practice case studies and lessons learned. 2.1.3 Development of Xiangyang-wide layout for logistics industry. 2.1.4 Identification of gaps between future state and current state.

2.2. Logistics improvement plan (Q2–Q3 2019) 2.2.1 Development of optimal layout of logistics industry facilities in Xiangyang, considering future demand, industry needs, and multimodal transport integration. 2.2.2 Development of an operating philosophy based on international best practice for Xiangyang logistics. 2.2.3 Identification of project priorities for the short, medium, and long term.

3. Multimodal integration and logistics capacity strengthened (Q3 2019–Q2 2020) 3.1 Study tour was as canceled and replaced with a feasibility study. Feasibility study completed by Q2 2020. 3.2 Training of 15 government officials on operating philosophies for integrated, multimodal logistics, inland waterway transport, and multimodal transport integration and information sharing by December 2019. Actual Inputs Asian Development Bank: $379,980.00 Government: counterpart support in the form of counterpart professional and support staff; a suitably furnished office space with utilities and telecommunication access; materials, maps, available data, and documents required by the TA; the cost of utilities (not including telephone) for the consultants. ADB = Asian Development Bank, COVID-19= coronavirus disease, FYP = Five-Year Plan, NA = not applicable, Q = quarter, XMTB = Xiangyang Municipal Transport Bureau. a Government of the People’s Republic of China, Xiangyang Municipal Government. 2016. The Thirteenth Five-Year Plan for Economic and Social Development of Xiangyang, 2016–2020. Xiangyang. Source: Asian Development Bank.

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TECHNICAL ASSISTANCE COST

Table A2.1: Technical Assistance Cost by Activity ($’000)

Amount Item Original Actual 1. Consultants 320.00 379.98 2. Equipment 8.00 0.00 3. Training, seminars, and/or 45.00 0.00 conferences 4. Studies 7.00 0.00 5. Contingency 20.00 0.00 Total 400.00 379.98 Source: Asian Development Bank.

Table A2.2: Technical Assistance Cost by Fund ($’000)

TASF Total Cost 1. Original 400.00 400.00 2. Actual 379.98 379.98 3. Unused 20.02 20.02 TASF = Technical Assistance Special Fund. Source: Asian Development Bank.