Overview of Transport Operational Connectivity, Challenges for Integrated Transport, Challenges to Seamless Border Crossing and National Strategies for Transport Facilitation

Workshop on Strengthening Transport Operational Connectivity among CLMV-T Phnom Penh, Cambodia 25 September 2017 Aye Aye Hla Joint Secretary of NTFC Ministry of Transport and Communications Myanmar

 Contents

➢ Introduction

➢ Overview of transport operational connectivity

• Current status of cross-border transport facilitation of International Transport Agreements including implementation • Regional Connectivity ➢ National Strategies (Plans) for Transport Development

➢ Current use of SWI and SSI at the border crossings

➢ Challenges to transport facilitation including customs formalities Introduction National data  Population - 52 millions  Land Area - 676,578 sq.km  Arable - 19.2%  Coastal Line - 2800 km  Road Length - 148690 km  ESCAP Membership - 19 April 1948 And also Myanmar is a member of such sub-regional networks as ASEAN, Greater Mekong Sub-region (GMS), BIMSTEC, the ASEAN Mekong Basin Development Cooperation (AMBDC), the Bangladesh-China-India- Myanmar (BCIM) Economic Corridor and the Mekong-Ginga Cooperation (MGC). And also involved in the Tran-Asian Railways and Tran-Asian Highways networks. • Myanmar is in a geographically strategic position and has been identified as an important transport link to South and Southeast Asia. • Myanmar is now regarded as a newly emerging destination for business on account of its strategic geographical location, moderate climate fit for the cultivation of various crops, huge market size, and high production output at low costs. • Myanmar has recognized the importance of improving its domestic transport network, including roads that connect to the sub-regional corridors. Our country also has an extensive rail network, an important deep sea ports, and a domestic river transport network. • Myanmar has many proven initiatives and efforts to participate the regional framework agreements on the cross border movement of goods and people and transport facilitation as a member of regional networks.

• Myanmar has no bilateral and trilateral traffic rights agreements at the Regional level for the time being. Myanmar-Thai Bilateral IICBTA MoU under the GMS CBTA is yet to be signed.

• Myanmar possess a great potential for the enhancement of trade and transport facilitation measures under the GMS program to promote cross border movement of goods, people, services, and economic integration as well. Overview of Transport Operational Connectivity

Framework Agreements as Legal Instrument for Cross Border and Transit Transport GMS-CBTA; Greater Mekong Subregion Cross-Border Transport Facilitation Agreement

AFAGIT; ASEAN Framework Agreement on the Facilitation of Goods in Transit

AFAIST; ASEAN Framework Agreement on the Facilitation of Inter-State Transport AFAMT; ASEAN Framework Agreement on the Facilitation of Multimodal Transport

ACBTP; ASEAN Framework Agreement on the Facilitation of Cross-Border Transport of Passenger (yet to be signed) Regional Connectivity; GMS Economic Corridor in Myanmar

No. Corridor Route Points of Entry/Exit 1. North-South Economic Mongla-Kengtong- Mongla Corridor Mongpayak-Talay-Tachilek Tachilek

2. East-West Economic Myawady-Kawkareik- Myawady Corridor Eindu-Hpaan-Thatom-Bilin- Kyaihto-Thizayat-Waw- Payagyi

3. Southern Economic Hteekhee-Sinbyudaing-Myita- Hteekhee Corridor Hermyigyi-Nabule (Dawei SEZ) 4. Northern Economic Tamu-Kalawa-Ye-U-Shwebo- Tamu Corridor Mandalay-Hsipaw-Lashio- Muse Muse 5. Western Economic Mandalay-Yangon-Thilawa - Corridor Kawkareik-Myawady Road Portion in EWEC GMS Priority Missing Rail Links

Link 5: Link 9: LAO-PRC VIE-PRC Boten/Mohan Hekou/Lao Cai

Link 6: Link 4: LAO-VIE MYA-PRC Thakhek/Mu Muse/Ruili Gia/ Vung Ang Link 7: THA-LAO- VIE Link 3: Chongmek/ MYA-THA Vangtau Dawei/ Lao Bao Banpunamron Link 8: LAO-CAM Dong Kralor/ Voun Kam

Link 1: Link 2: CAM-THA CAM-VIE Poipet/Border Snoul/ Loc Ninh Bridge/ Aranyaprathet

10 ASEAN Highways

Sr. Route Length Directly No. names ( Km) Connect to

1 AH 1 1653 India , Thailand 2 AH 2 788 Thailand (Lao) 3 AH 3 88 China 4 AH 14 455 China 5 AH 111 240 AH-2 to AH -14 6 AH 112 1122 Thailand 7 AH 123 141 Thailand Total 4487 ASEAN Highways Tamu-Mandalay-Meiktila-Yangon-Bago-Payagyi- ASEAN Highway - 1 Thaton-Myawady Road

ASEAN Highway - 2 Meiktila-Loilen-Kengtung-Tachileik Road

ASEAN Highway - 3 Mongla-Kengtung Road

ASEAN Highway - 14 Mandalay-Hsipaw-Muse Road

ASEAN Highway - 111 Hsipaw-Loilen Road

ASEAN Highway - 112 Thaton-Mawlamyine-Thanbyuzayat-Ye- Dawei- Lehnya-Khamaukgyi-Kawthaung Road + Lehnya- Khongloi Road

ASEAN Highway – 123 Dawei- Htee Khee Road India-Myanmar-Thai Trilateral Highway (1360 km)

Tamu (India-Myanmar Border) – Kyigone – Kalewa –Yargyi –Chaungma – Lingataw – Pakakku - Kyauk padaung (Yongon-Mandalay Expressway) Thigone - Bawnetgyi – Phayargyi – Thaton – Hpaan – Kawkareik - Myawady (Thai -Myanmar border)

1. Tamu-Yargyi Road section is aided by Government of India

2. Yargyi-Eindu Road section is conducted by Myanmar

3. Eindu-Kawkareik Road section Portion aided by ADB 4. Kawkareik-Myawady Road section is aided by Government of Thailand India-Myanmar-Thai Trilateral Highway (1300 km)

2 lanes, 5.5 m Upgraded by India (BRO) 1. Portion Alternative ways from Tamu to Kalewa aided by of Trilateral Government Highways of India

FS. By (Tamu-Yargyi) UN-ESCAP DPR by India(RITES) Chaung Ma-Yinmabin- Pale-Lingataw Portion

Tamu-Kyigone-Kalaywa = 160.0 Km 2. Portion Kalaywa-Yargyi-Chaungma = 159.5 Km conducted by Chaungma-Pale-Lingadaw = 73.0 Km 4. Portion aided by Lingadaw- Pakokku = 77.5 Km Myanmar Pakokku-Bagan-Kyaukpadaung (Yargyi-Eindu) Government of -Theegone = 154.0 Km Thailand Theegone-Naypyitaw-Bawnatgyi = 393.0 Km (Kawkareik- Bawnatgyi-Payagyi-Thaton = 84.5 Km Thaton-Hpa an = 52.00 Km Myawady) Hpa an – Myawady = 146.0 Km 3. Portion aided by ADB

Total =1299.5 Km (Eindu-Kawkareik) National Strategies (Plans) for Transport Development

➢ National Comprehensive Development Plan; NCDP ➢ National Transport Master Plan; MYT-Plan ➢ Myanmar Transport Sector Policy Statement ➢ Master Plan for Arterial Roads Network Development ➢ National Logistics Master Plan; MYL-Plan ➢ National Strategy for Rural Roads and Access

National Comprehensive Development Plan; NCDP; Ministry of Planning and Finance prepared for the long-term strategies for the Myanmar economic development and investment plans. National Strategies (Plans) for Transport Development (Cont;)

➢National Transport Master Plan (2015-2020) MYT-Plan; JICA Conducted the study. ➢Myanmar Transport Sector Policy Statement; ADB conducted the study and Policy Notes publication was launched in July 2016. The Transport Policy Statement is incorporated as part of the National Transport Master Plan. ➢Master Plan for Arterial Roads Network Development (2016-2040); KOICA conducted the study with counterpart of the Ministry of Construction ➢ National Logistics Master Plan: MYL-Plan is under processing by the study team of JICA ➢ National Strategy for Rural Roads and Access (2016-2030); conducted by JICA. Myanmar National Transport Master Plan; MYT-Plan

❖The processes for the formulation of Master Plan was started in December, 2012 and completed in 2014 by the JICA with the assistance of Japan Government .

❖MoTC coordinated and cooperated the transport sector related ministries and agencies for the MYT-Plan. The Ministries of Transport, Rail Transportation and Construction are integrated in all process.

❖The approval from the Cabinet has secured to implement the Master Plan.

17 Monitoring and Coordinating National Committees

The President Office has formed the National Committees as follow:

 National Transport Sector Development and Implementation Projects Committee

 National Transport Facilitation Committee

Minister for the Ministry of Transport and Communications is chairperson in those committees. NTDP and NTFC will be monitoring and coordinating the Transport and Trade Facilitation matters both in domestic and regional level and also on the implementation of the investment projects as MYT-Plan. Corridor-Based Development Approach

10 Major Corridors C A Central North-South Corridor D B East - West Corridor C Northern Corridor A D Mandalay - Tamu Corridor K E E Second East - West Corridor G East - West Bridging Corridor L B H Delta Area Network G J Southern Area Development Corridor K Western North-South Corridor L Eastern North - South Corridor H

J Priority corridors for urgent investment 20 Current status of the use of SSI/SWI at the Border crossing and Customs related new technologies

➢ Current use of Single Window Inspection and Single Stop Inspection for transport facilitation at the border crossings Single Window Inspection and Single Stop Inspection; SSI/SWI was initially intended❖toThebe implementedprocesses forintheDecemberformulation2017. Howeverof it can only be conducted afterMasterthe completionPlan startedof thein BorderDecember,Control2012Facilities; BCF at the Thai-MyanmarandFriendshipcompletedBridgein 20142.by the assistance of JICA. ➢ Electronic seal, RFID, Cargo Tracking System, Satellite Positioning Systems for Transport Facilitation The use of Electronic Seals were tested with 2 vehicles operating from Thai- Myanmar Border through Myawady to Mawlamyaing on 31.3.2017 and with 40 vehicles operating from Thai- Myanmar Border through Myawady to Thilawa Special Economic Zone on 22.5.2017 respectively. Currently, the Electronic Seal are not yet being used in the Country. National strategies ( plans ) for transit including customs clearance Exemption from Physical Inspection, Bond Deposit, and Escort : Subject to the conditions laid down below, the cargoes carried cross border shall as a general rule be exempted from routine physical customs inspection en route, customs escorts in the national territory, and the deposit of a bond as guarantee for customs duties: ❖ Document Check and External Inspection : The motor vehicle together with the cargo and the Transit and Inland Customs Clearance Document shall be presented to the Customs Authorities en route only for processing documentation and external inspection and control of the cargo compartment. ❖ Exceptional Physical Customs Inspection : Customs Authorities may however, by way of exception and in particular when they suspect irregularities, subject the cargo to a physical inspection en route. ❖ Tracking of Vehicle / Cargo : Customs Authorities may apply appropriate measures ( e.g., electronic means. Global Positioning System, Information and Communication Technology ) to monitor the cargo movement, without interference in, delay of, or any additional requirement for the transport operation. Challenges for streamlining customs formalities related to movement of goods and vehicles and suggested solutions.

The following minimum services, facilities and personnel available for cargoes can be made:  Cargo Inspections • Hard surface areas and covered shelters from the weather condition for loading and unloading transshipment, and inspection of the cargo • Warehousing facilities storage room ( including refrigerated space ) and a container deport (among other things, for storing the cargo pending the disclosure of result of sanitary or veterinary inspection or for quarantine purposes) to assure the safe storage of the merchandise without risk of damage decay, or loss • Customs warehouses; plant quarantine and disinfection facilities; and staging point, allowing to rest feed, and water and if required unload and accommodate consignment of live animals and facilities for live animals isolation. Challenges for streamlining customs formalities related to movement of goods and vehicles and suggested solutions

Vehicles Inspections: The following minimum services facilities can be made: • The personnel availibilities for vehicle repair and maintenance services • Fuel station, a parking lot on hard surface and facilities for vehicles disinfection. Crew and Passenger : • Facilities for the purpose of searching travelers • Rest areas, sanitary equipments ( toilets ), and medical first aid. Needed Equipments : We will endeavor to keep up with technological developments and to implement at their earliest convenience. The modernized and advanced border crossing techniques such as ; machine reading of passport, X-ray machine for goods and container inspection, automatic vehicle identification ( license plate readers ), and bar code readers for other documents. Challenges for the Cross- Border Crossing

❖ Less experience of Transport Operators in cross border transport

❖ Less infrastructure development and Border Control Facilities

❖ Less Capacity Building in Border Management and Formalities

❖ Less familiarity with international best practices for Cross- Border Transport Operation Assistance needed

 Myanmar Customs is doing every possible things to build our capacity for effective and efficient implementation of the sub- regional bilateral road transport.  To accelerate the successful implementation of the sub-regional bilateral road transport and planned initiatives on Transport Facilitation, the we would like to have external assistance in the infrastructure development, border management facilities, communications and coordination machanism concerning the prevention and control of international transmission of disease at designated Ground Crossing points, capacity building areas and consultation in the bilateral negotiation.  We really appreciated the efforts of UNESCAP on the “Enhancing Efficiency and Effectiveness of Cross-Border transport on the Asian Highway Network” project and the Handbook on the requirements for Cross-Border Transport along Asian Highway. Thank you