MINISTRY OF PUBLIC WORKS AND TRANSPORT. LAO PDR 1st Meeting of Working Group on Dry Ports of International Importance , 25 – 26 November 2015 STATUS ON DRY PORTS DEVELOPMENT IN LAO PDR

Phanthaphap Phounsavath Deputy Director, Division of Land Transport, Department of Transport Ministry of Public Works and Transport, Lao PDR PRESENTATION OUTLINE

I. Country Facts

II. Policy and Legislation

III. Progress on Development of Dry ports in Lao PDR

IV. Challenges

2 I. COUNTRY FACTS

 Land Area : 236,800 km2  Population: 7.08 MIL (2015)  Population density: 29.5 persons/km2 (growing at 1.68%pa )  Border length of 5,083 km - Myanmar 235 km - Cambodia 541 km - China 423 km - 1754 km - Viet Nam 2130 km  The economy base is agriculture, mines hydro power and services  GDP growth 7% pa  GDP per capita 1,824 USD (2014)

3 II. POLICY AND LEGISLATION (TRANSPORT SECTOR) I. To provide an enabling, safe, and efficient transport throughout the country with low transport cost to support the Government effort to graduate from LDC by 2020 II. To transform from a land-locked country to a land- bridge country in the GMS by: - Providing efficient and reliable transport infrastructure and facilities, particularly on transit transport routes; - Facilitating cross border transport of goods and people between and among neighboring countries

4 II. POLICY AND LEGISLATION (TRANSPORT SECTOR) 1. Domestic Road laws promulgated in Dec 2012: - Road Transport Law ; - Road Traffic Law; - Multimodal Transport Law.

2. Intergovernmental Cooperation - Agreement : Name of Agreement Contracting Parties Date Agreement on Road Transport Between Lao PDR and Vietnam –Vietnam 23 Apr 2009 Agreement on Road Transport Between Lao PDR and China Laos–China 12 Mar 1993 Agreement on Road Transport Between Lao PDR and Thailand Laos–Thailand 03 May 1999 Agreement on Road Transport Between Lao PDR and Cambodia Laos-Cambodia 21 Oct 1999 Framework Agreement on the Facilitation of Goods in Transit ASEAN 16 Dec 1998 Cross-Borders Transport Agreement GMS 1999

- MoU on Road Transportation between and Among Cambodia – Laos - Vietnam; - MoU on Road Transportation between and Among Laos – Thailand - Vietnam; - Intergovernmental Agreement on ; - Intergovernmental Agreement on Trans-Asian Railway Network; - Intergovernmental Agreement on Dry Ports signed on 7 Nov 2013. 5

ASIAN HIGHWAY THROUGH LAO PDR

Road linked to bordering countries. Asian Highways : - AH3 : Houyxay – Boten (251km) - AH11 : – Cambodia Border (861km) AH13 AH3 - AH12 : Thanaleng – Nateuy (682km) - AH 13 : Muang Ngeun – Oudomxay (391km) AH12 - AH15 : Ban Lao – Vietnam Border (132km) - AH16 : – Dansavan (240km) AH15 Total AH : 2,557km VIENTIANE AH11 Remark: Only AH 3 & AH 16 have road AH16 bearing capacity max. 50tonnes. The other AH need to be upgraded.

6 III. PROGRESS ON DRY PORTS DEVELOPMENT IN LAOS (2016 development plan years ports under 5 of and construction Feasibility study detailed Priority for

 Thanaleng  - 2020). Dry ports Intergovernmental Agreement on 9 government submitting proposal tothe Transport for approval before MinisterPublic and of Works process of Status Ratification:on Dry ports Dry ports

dry dry

9. 8. 7. 6. 5. 4. 3. 2. 1. nominated approval by

Thakhek Oudomsai Luangprabang Laksao Houyxai Seno, Nateuy Thanaleng

, Savanakhet

, , Champasack

, Luangnamtha Borikhamsai under under the ,

Bokeo in the in Khammouane , ,

Muangxai the Vientiane ,

Luangprabang

MYANMAR

HouayXai

CHINA THAILAND THAILAND

Hub for Specific Product HubforSpecific Hub Logistics Regional InternationalHub Logistics InternationalRoute Logistics Zone Losgitics Vientiane

LuangNamta Oudomsai LuangPrabang

CAMBODIA Thakek Laksao VIETNAM Savannakhet Pakse

7

7 1. Dry Ports Plan Development   2.      start early in 2016. earlystart made on 13 2015, will Nov construction of Signing has beenmade byUNESCAP Study on location selection Feasibility Procedure with JAPAN with Procedure to negotiateon Loan Fund and PPP be establishedwill committee Negotiation approval andthe forconsideration government on FS Final Reporthas beensubmitted to JICA Co.bysupported Logistics NipponExpress Study hasbeen completed by Feasibility within reserved area of45Ha. reserved within isabout US$6.8for construction billionCost transport by rail. transport completed to the freight supportfuture Thailandconstruction is under of 90% bysupported NEDAYard Container Natuey Thanaleng

, MoU

Luangnumtha

, for railway construction construction for railway

Vientiane

MYANMAR HouayXai

THAILAND THAILAND CHINA Hub for Specific Product HubforSpecific Hub Logistics Regional InternationalHub Logistics InternationalRoute Logistics Zone Losgitics Vientiane LuangNamta

LuangPrabang

CAMBODIA Thakek VIETNAM Savannakhet Pakse

8 8 Plan view area of Vientiane Dry port

Railway Plan of NEDA (Thailand)

Freight Station of Chinese F/S

Railway Plan of Chinese F/S

VLPV（ientianeVientia nDrye L portogist :i cs45 Paha rk）

Thanaleng Terminal

9 Lay out of Vientiane Dry port

2nd Phase 1st Phase

Customs Work Shop Office SPC Office

Canteen Developed by NEDA

Customs Gate Clearance on temperature Chassis Warehouse -controlled Gate Bulk Storage 10

4). 3 2 1). Planned Project onTransPlanned ). ). ). Chong Nongkhai Boten – Savannakhet (480 km

Lao

– Mek

Luangphrabang Bao ); );

–

(Lao (Lao (Lao (Lao

(222 km). Vientiane

– Railways - - Thai border)

Laobao Thai border)

–

–

(452 km);

Vientiane (417 Vientiane – : –

Savannakhet

Pakse

– Asian

Mu Mu

– Dia

km); km); MYANMAR

Thakhek Thakhek HouayXai Nongkhai Nongkhai CHINA THAILAND THAILAND

Savannakhet Savannakhet Hub for Specific Product HubforSpecific Hub Logistics Regional InternationalHub Logistics InternationalRoute Logistics Zone Losgitics -

Mu Mu -

Vientiane Vientiane Vientiane Chong

Da: 480 km Da: 480 LuangNamta Oudomsai LuangPrabang –

- Laobao Laobao

-

Pakse Pakse Vientiane railway: 417 km

452 452 km -

CAMBODIA Thakek

Laksao VIETNAM Savannakhet – Pakse

Boten Lao Lao

Savannakhet Savannakhet Mukdahan Mukdahan Bao 222 km 222 Bao

11 - -

11 Challenges  Need of technology transfer both hardware and software  Need of Human resource development  Need of support on Technical cooperation and financial assistance from international development partners

12 Thank you for your kind attention!

Phanthaphap Phounsavath Deputy Director, Division of Land Transport, Department of Transport Ministry of Public Works and Transport, Lao PDR E-mail: [email protected] Tel: (856 - 21) 412 287 13