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Infrastructure Linkages for Regional Development and the Importance of Cross-Border Connectivity

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Infrastructure Linkages for Regional Development and the Importance of Cross-Border Connectivity Infrastructure Linkages for Regional Development and the Importance of Cross-border Connectivity Kavita Iyengar India Resident Mission Asian Development Bank May 2018 Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Outline of the Presentation 1. The Asian Context 2. Transport linkages to enable manufacturing and trade • Road • Rail • Waterways • Air 3. Logistics and Trade Facilitation 4. Developing Energy infrastructure 5. Going ahead: The Drivers for Creating Opportunities 2 Share of Major Regions in World GDP RoW, 5.4% US, 33% Asia, 34% EU, 28% Baseline 2009 Year 2014 Asian Century Scenario 2050 4 South Asia: the Least Integrated Region in the World 50 Intra-regional Trade Share (%) 1990 45.5 100 hours for 45 2014 trucks to cross 40 37.5 35.50 between 35 Petrapole & 29.20 30 Benapole 25 20 200 signatures 15 in Nepal to trade goods 10 7.1 7.4 4.8 5.3 with India 5 2.7 0.1 0 ASEAN+3 Central Asia Oceania South Asia East Asia Source: ADB ARIC Trade and Integration database (www.aric.adb.org); raw data from IMF DOTS 5 India’s Merchandise Trade 2016-17 2006-07 2016-17 2006-07 Region % of % of Exports % of Exports % of Imports Imports North America 16.23 17.28 7.70 7.64 European Union 21.21 17.09 16.06 11.02 NE Asia 15.33 12.52 16.96 24.73 ASEAN 9.98 11.23 9.70 10.56 South Asia 5.11 6.97 0.82 0.73 Africa 5.89 6.46 6.35 4.58 Latin America 2.95 2.62 2.86 4.50 Other European Countries 1.11 1.74 0.21 0.32 South African Customs Union 1.80 1.37 1.36 1.88 East Asia (Oceania) 1.17 1.22 4.08 3.07 CARs Countries 0.15 0.12 0.07 0.15 6 Source: Ministry of Commerce and Industry, Government of India, website Transport • Road transport is the dominant mode (65–70% of movement) but substantial missing links across national boundaries • Post 1947, border management led to closure of historical land routes • IWT transit was restored in 1972 • Transit through Pakistan from India to Afghanistan remains suspended • Incompatible transport technology platforms emerged impairing interoperability, esp rail Trade Facilitation Indicators 350 India 300 250 200 150 Bangladesh China 100 South Asia Singapore 50 Thailand Time to import: Border compliance (hours) compliance Border import:to Time Nepal OECD 0 0 20 40 60 80 100 120 Time to export: Border compliance (hours) Source: Ease of doing business, World Bank 2015. 8 The Garland of an Integrated Asia SASEC ASEAN Association of Southeast Asian Nations BIMP-EAGABrunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area BIMSTEC Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation CAREC Central Asia Regional Economic Cooperation GMS Greater Mekong Subregion IMT-GT Indonesia Malaysia Thailand Growth Triangle PIF Pacific Islands Forum SAARC South Asian Association for Regional Cooperation Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in 9 this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Asian Highway 11 Trans-Asia Railway 12 Tinsukia Dibrugarh Tinsukia Gelephu North Lakhimpur Bongaigaon Tezpur Jorhat Srirampur Pandu Silghat NH 27 Nagaon Joghigopa Nalbari Dhubri Gauwahati Mainland trade NH 27 Dawki Tamabil Trade to South and South Sutarkandi Imphal Sylhet East Asia Sheola Silchar Tamu Moreh North East trade Spine Waterways IW Ports Sabroom Ramgarh Coastal ports Airports Mongla LCS Zorinpui To Sittwe Development of multi-modal transport 1 2 3 Third Country Trade with – Assam - Bangladesh / Assam – Trade with rest of ASEAN, SAARC via Bhutan / Myanmar Bilateral India via Bangladesh Trade Bangladesh & Myanmar Transshipment / Transit via Multi-modal means of transport Roadway Airports Coastal Shipping Railway Inland Waterway International Border Gateway Coastal Shipping routes between IW Routes between Assam – India - Bangladesh Bangladesh – Rest of India • Bongaigaon - Gelephu • Use of Chittagong and Mongla Ports for • Dawki – Tamabil movement of goods to and from India envisages multimodal routes from Chittagong • Kolkata – Shilghat – Kolkata • Sutarkandi – Sheola to Sutarkandi (Assam) and Dawki • Kolkata – Karimganj – Kolkata • Sabroom – Ramgarh (Meghalaya) • Moreh – Tamu • Shilghat– Karimganj– Shilghat • Agreement on Coastal Shipping links Indian • Zorinpui east coast ports to Bangladesh Road Routes Tinsukia Bhutan Dibrugarh North Lakhimpur Sibsagar Tezpur Jorhat To Bongaigaon Siliguri Nalbari NH 27 Srirampur NH 27 NH 27 Nagaon Dhubri Joghigopa Guwahati Nagaland Custom Diphu Dimapur Station Waterways NH 27 Meghalaya Spine East West Dawki Corridor AH, Asian Bangladesh Manipur Highway Karimganj Silchar SAARC Rail To Dhaka-Kolkata Sutrakandi Imphal Corridor 1 To Dhaka via AH1, then to NH 37 SAARC Chittagong port via AH41 Corridor 5 To Kolkata-Delhi Moreh Myanmar via Bangladesh To Sittwe port Slide 15 Mapping the Rail Network Existing network Under implementation Future plans Slide 16 Inland Waterway Transit and Trade Protocol Routes 4 1 3 2 PANGAON KolkataShilghatRajshahi (West 3412 Bengal)(Assam)(Bangladesh) – – – ShilghatKarimganjDhulian (West(Assam) –(Assam)Bengal) Kolkata – – (West Bengal)KolkataShilghatRajshahi (West Bengal)(Assam)(Bangladesh) Air Connectivity Aviation as a key Key interventions to propel enabler for all industrial the growth in the sector segments • Air cargo terminal at Guwahati for enabling pharmaceuticals, agriculture • Overcomes the terrain and food processing exports challenges of the region • Guwahati Aerotropolis • Critical for education, (proposed by MoCA), could pharmaceutical, tourism and be hub station and main medical tourism sectors MRO base for small turbo- • Supports all aspects of trade prop aircraft • Connectivity to hinterland • Develop Silchar Airport to • Connectivity within NER- capitalize on geographic under UDAN dividend • Connectivity to eighboring • Route dispersal guidelines countries – under proposed under UDAN-2 covering 19 UDAN II aviation destinations in the NE region Slide 18 Road network needs improvement Currently 2-laned road,Import BlackCurrently board, liquor 2-laned upgradation to 4-lane road with below par Galephu under progress,Export Petroleumcondition, products with • Currently preferred by logistics service providers for movement moderate congestion moderate congestion Currently 4-laned between Guwahati and Imphal, Srirampur Bongaigaon road with very good Nalbari heavy congestion condition,• lowShorter route for reaching Silchar NH 27 congestion • Cargo movement suffers from Golakganj from Guwahati Nagaon ad hoc economic blockades on • Currently preferred by logistics Joghighopa NH 27 Dimapur Kohima-Nagaland stretch Guwahati • Currentlyservice 2-laned providers road withfor poormovement AH 1 / • Logistics cost close to INR 15/kg NH 6 NH 29 maintenancebetween Guwahati and Silchar Bajengdoba • Heavy passenger(~ 3 buses’times thantraffic Delhi -Guwahati Shillong • Majorlycost) poorlyprimarily maintained due illegal 2taxes-laned • Not preferredroad byexcept logistics Guwahati services-Shillong NH 6NH 27 Kohima collected at unauthorised tolls providersstretch (4-laned, very good • 4-laning of Dimapur-Kohima • Route fromcondition) Zokhawthar to Guwahati Coal, Limestone and Dawki stretch expected to be complete Import via Silchar is currently undergoing 4 Boulder stone by next year laningImphal Food items and NH 37 Export • 4 Lane Length: 32% plastic products Sutarkandi Silchar Food items, cement, Currently,Import stretch of NH 37 Agartala AH 1 / plastics NH 29 Moreh Import Beetel Nut between Jiribam and Imphal is Sabroom DhakaCitrus fruits, ginger blockedExport due to a damaged Wheat Flour, Pulses and beetel leaves Export bridge and requires immediate and Pear Lawangtalai attention;Mongla prone Port to landslides Chittagong Port Economic Centre Zorinpui Border town/LCS Other major Slide 20 towns/ports Sittwe Port Network Development Plans With the under construction and sanctioned projects, electrification of the entire main-line section of the Route expansion North East Frontier Railway has been covered, except, plans the southern part of Lumding, few branch lines, and, the Rangiya-Mukongselek section. • Rail connectivity between Aizawl and Imphal in place by 2020 with a double gauge track All NER capitals • Rs 5,606 crore earmarked for 15 new rail lines and 6 double to be connected track projects by double gauge • Guwahati, Itanagar and Agartala already had double tracks, line by 2020 while Imphal to be double-tracked by 2019 • Connectivity to the railway network of Myanmar to link up with the 81,000 km-long Trans-Asian Railway Network (TARN) Trans-national • Jiribam-Tupul-Imphal line, 111 km, to provide connectivity to railway Moreh connectivity • Agartala-Akhaurah link to Chittagong port, resource-rich Sylhet and capital Dhaka. Slide 21 Rail Network will play a critical role in regional connectivity First railway station proposed at Toribari (Bhutan); to be linked to Hasimara (India) There are 3 operational Plans to re-establish rail broad guage rail links between West Bengal and link between Shahbazpur Bangladesh (Bangladesh) and • Gede – Darshana Mahisasan (India) (broad gauge mostly used for passenger Indian Railways plans to link movement)
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