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Data Collection Survey on Transport Infrastructure Development for Regional Connectivity in and Around South Asia

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Data Collection Survey on Transport Infrastructure Development for Regional Connectivity in and Around South Asia Data Collection Survey on Transport Infrastructure Development for Regional Connectivity in and around South Asia Final Report March 2014 JAPAN INTERNATIONAL COOPERATION AGENCY PADECO Co., Ltd. Data Collection Survey on Transport Infrastructure Development for Regional Connectivity in and around South Asia Final Report March 2014 JAPAN INTERNATIONAL COOPERATION AGENCY PADECO Co., Ltd. Data Collection Survey on Transport Infrastructure Development for Regional Connectivity in and around South Asia Final Report Contents Abbreviations ............................................................................................................................. viii Executive Summary .................................................................................................................. ES-i Chapter 1 Introduction ........................................................................................................ 1-1 1.1 Background .............................................................................................................. 1-1 1.2 Objective .................................................................................................................. 1-2 1.3 Survey Area .............................................................................................................. 1-2 1.4 Country Visits ........................................................................................................... 1-3 1.5 Seminars ................................................................................................................... 1-4 1.6 Structure of This Report ........................................................................................... 1-4 1.7 Map Showing the Name of Places Frequently Referred to in This Report .............. 1-4 Chapter 2 Trade, Industry, and Land Transport Requirements in the Region .............. 2-1 2.1 Overview .................................................................................................................. 2-1 2.2 Economic Status in the Region ................................................................................ 2-1 2.2.1 Macroeconomic Performance by Country........................................................ 2-1 2.2.2 Economy Size and Sector Composition in Each Country/Region ................... 2-3 2.2.3 Overview of Industry and Trade in the Region ................................................ 2-6 2.2.4 Economic Development Frameworks .............................................................. 2-6 2.3 Existing Goods Movement (Trade Flows by Country) .......................................... 2-11 2.3.1 Bangladesh ..................................................................................................... 2-11 2.3.2 Bhutan ............................................................................................................ 2-13 2.3.3 India ................................................................................................................ 2-13 2.3.4 Myanmar ........................................................................................................ 2-14 2.3.5 Nepal .............................................................................................................. 2-16 2.3.6 Thailand .......................................................................................................... 2-17 2.4 Factors that Affect the Future Flow of Goods ........................................................ 2-18 2.4.1 Possible Value Chains .................................................................................... 2-18 2.4.2 Investment Climate for Foreign Direct Investment ........................................ 2-18 2.5 Forecast on Economic Growth and Trade Flows ................................................... 2-20 2.5.1 Forecasting Real GDP Growth ....................................................................... 2-20 2.5.2 Forecasting Resulting Trade Flows by Customs Point ................................... 2-24 Chapter 3 Soft Regional Transport Infrastructure ........................................................... 3-1 3.1 Overview .................................................................................................................. 3-1 3.2 Current Regional Transport Development Needs .................................................... 3-3 3.2.1 Country-by-Country Analysis .......................................................................... 3-3 3.2.2 Route-by-Route Analysis ................................................................................. 3-6 3.3 Current Status and Issues Related to Through Transport Arrangements .................. 3-8 3.3.1 Transport-Related Agreements ......................................................................... 3-8 3.3.2 Road and Railway Standards in the Region ................................................... 3-12 3.4 Current Status and Issues Relating to Customs and Other Border Procedures ...... 3-18 3.4.1 Trade Barriers Related to Customs and Other Border Procedures ................. 3-18 i Data Collection Survey on Transport Infrastructure Development for Regional Connectivity in and around South Asia Final Report 3.4.2 Ongoing/Planned Projects to Facilitate Customs and Other Border Procedures ...................................................................................................... 3-21 3.5 Regional Cooperation Organization/Forums .......................................................... 3-25 3.5.1 Introduction .................................................................................................... 3-25 3.5.2 South Asian Association for Regional Cooperation (SAARC) ...................... 3-25 3.5.3 Bay of Bengal Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) .................................................................................................... 3-26 3.5.4 South Asian Subregional Economic Cooperation (SASEC) .......................... 3-27 3.5.5 United Nations Economic Commission for Asia and the Pacific (UNESCAP) ................................................................................................... 3-28 3.5.6 Strengthening of Regional Cooperation Organizations and Forums for Trade and Transport Facilitation .................................................................... 3-29 3.6 Development Strategies .......................................................................................... 3-29 3.6.1 Introduction .................................................................................................... 3-29 3.6.2 Through Transport .......................................................................................... 3-31 3.6.3 Improvement of Customs and Other Border Procedures ............................... 3-32 3.6.4 Identification of Pilot Borders/Corridors ....................................................... 3-32 Chapter 4 Freight Transport and Border Facilities .......................................................... 4-1 4.1 Overview .................................................................................................................. 4-1 4.2 Current Situation of Freight Transport and Border Crossing Points ........................ 4-1 4.3 Transport Time and Cost of Intermodal Transport Cargo ...................................... 4-16 4.4 Development Strategies .......................................................................................... 4-18 Chapter 5 Environmental and Social Considerations ....................................................... 5-1 5.1 Overview .................................................................................................................. 5-1 5.2 Environmental and Social Conditions of the Survey Area ....................................... 5-2 5.2.1 Comparison of Millennium Development Goals in the Survey Area ............... 5-2 5.2.2 Environmentally Protected Area in South Asia and Adjacent Areas ................ 5-3 5.2.3 Socially Sensitive Areas ................................................................................... 5-4 5.3 Legal Frameworks .................................................................................................... 5-6 5.3.1 Environmental Protection and Environmental Clearance ................................ 5-6 5.3.2 Land Clearance and Involuntary Resettlement................................................. 5-9 5.4 Key Environmental/Social Factors in Project Evaluation ...................................... 5-12 5.5 Natural and Social Environmental Evaluation of Proposed Projects ..................... 5-14 5.6 Recommendations for Further Studies ................................................................... 5-17 Chapter 6 Identification and Evaluation of International Economic Corridors (Road and Railway) ............................................................................................ 6-1 6.1 Overview of Existing Situation ................................................................................ 6-1 6.2 Evaluation Overview ................................................................................................ 6-2 6.3 Stage 1: Identification of the Long List of Corridors ............................................... 6-3 6.4 Stage 1: Corridor Evaluation Criteria ....................................................................... 6-7 6.5 Stage 1 Results: Regional Road Corridors ..............................................................
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