Capacity Building Workshop on strengthening operational transport connectivity among CLMVT countries 8-9 October 2019 Lao People’s Democratic Republic

Follow up of last CLMVT meeting Enhancing Transport connectivity between and

Sandeep Raj Jain Economic Affairs Officer Transport Connectivity and Logistics Section Transport Division Background

Around USD 6 billion trade between two countries

• Four major border crossings between Thailand and Myanmar o – o (Sangkhlaburi) - ) o – Kaw Thaung o - Thachileik

• Myawaddy represents second large share of Myanmar border trade apart from Muse. • Myawaddy is the most important city on the East-West Economic Corridor as a Myanmar Gateway which is accessible to Asia Highway Routes (AH 1, 2, 3 and 4). • Proposed that Mae Sot-Myawaddy shall become a special economic zone (SEZ) Main Barriers on Cross border operations between Myanmar and Thailand

Context

 Since GMS CBTA and ASEAN – (AFAFIST and AFAFGIT) are not implemented as well as the MOU for cross border transport between Thailand and Myanmar yet to become operational.

 Cross border transport is being undertaken by means of container swap and transloading

 Trade imbalance with estimated 300 trucks enter Myanmar from Thailand while on reverse side it is only 17- use multimodal transport for more exports via Thailand ports Recommendations on improved cross border operations between Myanmar and Thailand

1. Improve cargo handling facilities at Myawaddy Transloading – truck to truck or truck to warehouse Container swap facilities also need improvement There is preference for trailer swap that should be operationalized

2. Dedicated parking area for the trucks waiting for customs clearance- queue system- allot number- this will reduce the congestion- move customs clearance inland see point4

3. Modernize Myanmar trucks- cost of fuel, drivers, usage of trucks are double for one shipment o Truck Operators in Myanmar are small and midsize that focus more on local services. o Many trucks are overloaded in order to save the transportation cost. Services not reliable and difficult to track cargo Recommendations on improved cross border operations between Myanmar and Thailand

4. Training for Drivers is required in term of safety driving and punctuality of arrival. The training shall included taking care of social responsibility and customers satisfaction for professional drivers

5. Use of electronic seals and tracking of cargo

6. Enhanced ability to deal with perishable cargo reefer containers

7. Develop Mae Sot-Myawaddy as combined border zone with

8. Organize Workshop “Cross Border Transport Facilitation between Thailand and Myanmar – Mae Sot-Myawaddy Model “ Pilot trailer swap project between Thailand and Myanmar

During August 2017, pilot project on Trailer Swap supported by the Ministry of Transport and Communications and carried out by Myanmar International Freight Forwarders Association (MIFFA)

Freight moved from Thailand and crossed the border at Myawaddy where the customs officer sealed the containers with e-Seal in order to track and trace the container from Myawaddy to Thilawa

The total transit time was 2.5 days whilst the conventional logistics needed 4-5 days and ocean transport took approximately 3 weeks

The pilot project illustrated that trailer swap at the border was an effective solution for cross border transport in the future in term of time reduction and cost-effectiveness and efficiency including reduce the risks of cargoes damage caused by manual transloading Thank you for your attention Questions? Comments? [email protected] http://www.unescap.org/our-work/transport