Chapter 3 Physical Infrastructure July 2020 This chapter should be cited as ERIA (2020), ‘Physical Infrastructure’, in The India-Myanmar-Thailand Trilateral Highway and Its Possible Eastward Extension to Lao PDR, Cambodia, and Viet Nam: Challenges and Opportunities. ERIA Research Project Report FY2020 no.02a, Jakarta: ERIA, pp.3-1--3-56. Chapter 3 Physical Infrastructure The original alignment of the Trilateral Highway (TLH) is basically a domestic road in Myanmar plus minimal infrastructure to cross the borders with India and Thailand, and, therefore, the development of the TLH had been slow until 2011. Since then, the development of the TLH has been accelerated mainly in terms of physical infrastructure, such as roads, bridges, logistic facilities, such as dry ports, and border-crossing facilities. At the end of 2018, the Asian Development Bank (ADB) released a series of reports on the comprehensive assessment of the economic corridors designated in the Greater Mekong Subregion (GMS) Economic Cooperation Program (ADB 2018a-h). As illustrated in Figure 1.1, the original alignment and southern route of the eastward extension of the TLH overlap with parts of the network of the GMS economic corridors, while the northern route of the eastward extension does not. ADB’s reports are indeed full of valuable information for knowing the current status of the road network in the region. Therefore, our analysis synthesises the information by ADB (2018a–h), most of which is based on an ADB survey conducted in 2017 and up-to-date information obtained in our own survey conducted between the middle of 2019 and January 2020. 3.1. India1 The original alignment of the TLH in India is limited to the Indo–Myanmar Friendship Bridge connecting Moreh and Tamu, and some border facilities, such as the integrated check post at Moreh. 1 As India is not a member of the GMS economic cooperation program, it is not covered in the ADB reports (ADB 2018b-h). This subsection is based on De et al. (2020). Chapter 3-1 (1) The connecting node between South and Southeast Asia: Imphal and Moreh Moreh is located in the Chandel district of Manipur. It lies to the southeast of Manipur on the Indo–Myanmar border. Tamu is the corresponding border town of Moreh. About 81% of the local population is involved in non-agricultural activities.2 Located on the Asian Highway No. 1 (AH- 1), Moreh is India’s entry point to the countries in Southeast Asia. Being a small border town, however, Moreh itself is not attractive enough as a market nor a production base. What makes the TLH attractive for Myanmar and Thailand is the vast hinterland behind Moreh. Imphal, the capital city of Manipur, is 110 kilometres (km) away from Moreh, and it constitutes a connecting node of the road network in the North Eastern Region (NER), which is connected further to the remaining large part of India. Currently, road is the only mode of transport for goods and services between Moreh and Imphal. The widening of the existing highway (NH-102) is under construction. This is the main highway, which connects India with Southeast Asia and carries the trade between them. On the other hand, India’s domestic railway network is now being extended to Imphal, with completion expected by 2021, providing another impetus to further enhance the connectivity between Imphal and mainland India. With the concept of the Trans-Asian Railway under the United Nations Economic and Social Commission for Asia and the Pacific, there is a plan to extend the railway from Imphal to Moreh, with a future plan to connect it to the rail network in Myanmar. (2) Border trade at Moreh India and Myanmar signed a border trade agreement on 21 January 1994, and border trade came into effect on 12 April 1995. Under this agreement, border trade between the two countries is permitted for selected items to be routed through designated trading points. Cross-border trade is fully functional between India and Myanmar at two Land Customs Stations (LCSs): one in Moreh, facing Tamu in the Sagaing Region of Myanmar, and the other in Zokhawthar in Mizoram, facing Rihkhawdar (or Rih, Reed) in the Chin State of Myanmar. The cross-border trade at Moreh takes place through Gate No. 1 and Gate No. 2 (Figure 3.1). Gate No.1 is the regulated trade route as per the standard operating procedure between the two countries. The LCS and the Integrated Check Post (ICP) are located near Gate No. 1. Gate No. 2 is 2 According to the census in 2011. Chapter 3-2 an entry or exit point for passengers and head-load cargoes between India and Myanmar. Namphalong market in Tamu, adjacent to Gate No. 2, is a well-developed market. It sells not only goods from Myanmar but also those originating from third countries, such as China, the Republic of Korea, Japan, and Thailand, amongst others. Namphalong market has active Indian buyers that take permits from the gate for entry, pay for the goods purchased in Indian rupees, and return with head-loads. There is an absence of customs checks and a lack of health and safety checks of the products that are coming through Gate No. 2. Trade through Gate No.2 has been permitted only for local residents who are settled within a radius of 40 km on both sides of the border of India and Myanmar. Moreh’s main market, commonly known as the Morning Bazaar, is located near the border of Gate No. 2. Figure 3.1. Border Infrastructure at Moreh Source: RIS Survey (2019). (3) Integrated Check Post Moreh Integrated Check Post (ICP) is a trade centre for facilitating bilateral trade between India and Myanmar as well as the movement of passengers across the border. Moreh ICP started its operations from 8 August 2018 and has a total area of 38.34 acres. The Land Port Authority of India is yet to get physical posession of the ICP from the Government of Manipur. The Government of India has approved about Rs 130 million for the development of Moreh ICP. Chapter 3-3 The operations at Moreh ICP commenced with a passenger terminal on 15 March 2018, and immigration facilities started functioning from 8 August 2018. Since then, Moreh ICP has started handling passengers coming to India. In FY2018, Moreh ICP handled 1,436 incoming passengers from Myanmar and 1,620 outgoing passengers from India to Myanmar.3 The majority of the people from Myanmar come to Manipur for medical treatment, while some of them also enter India for tourism purposes. For example, when there is a sports festival, such as for football, the inflow of tourists from Myanmar increases. Moreh ICP is expected to generate employment, promote trade between India and Myanmar, and foster connectivity and trade facilitation with the neighbouring countries. The construction of Moreh ICP is almost at the completion stage, and includes a passenger terminal, cargo terminal, customs processing, immigration clearance, import warehouse, electric sub-station, parking, rummaging sheds, weigh bridge, security and surveillance, banks/ATM, drivers’ rest area, public conveniences, and monumental national flag. The current status of facilities at ICP Moreh is given in Table 3.1. Table 3.1. Current Status of Facilities at Moreh ICP Facilities Current Status Cargo terminal construction is in the completion stage, with the capacity of 800 square meter storage Warehousing area for dry cargo. It will be ready by end of 2019. Cold Storage Construction is ongoing with the capacity of 400 square meter storage area for perishable goods. Provision for banking space is ready and rental free but not yet functional. LCS has invited SBI and UBI Banking to open a branch. Foreign Exchange UBI is authorised to do foreign exchange. Facility Weighing Bridge Completed. Plant Quarantine Not ready yet. Space is allotted for the laboratory of FSSAI and is yet to come. FSSAI activities are managed by FSSAI Manipur State Food Safety Department. All the laboratories under FSSAI should be NABL certified. Current speed of internet is only 8 mbps, which has to be enhanced further. At present, trade at Moreh Internet Bandwidth through LCS is handled on manual basis. LCS planning to introduce Electronic and Data Interchange (EDI), which require more internet speed. At ICP: 1 regular post and 13 people are presently working as contractual basis. Human Resources At LCS: 3 inspectors, 2 havildars and 1 superintendant. Security 4 security persons deployed by Assam Rifles Power supply is available but experiencing occasional power cut. In case of power cut, diesel generator Electricity is available. Medical facility Not yet ready. Public Conveniences Space for public conveniences is available and already functional. Parking Space Available. Source: RIS Survey (2019). 3 See the website of the Land Port Authority of India (www.lpai.gov.in) for further details. Chapter 3-4 The Moreh LCS has been housed in a departmental building located near Gate No. 1 and is being considered to be shifted to the ICP complex. Plant and quarantine facilities are available at Moreh LCS, but they had not been used at the time of the RIS Survey (2019). (4) Financial infrastructure Four banks are currently operating in Moreh: State Bank of India (SBI), United Bank of India (UBI), UCO Bank, and Axis Bank. These four banks mostly cater to the demand for banking and other financial services. All of the four banks have one ATM each placed in different locations of Moreh town. Amongst the four, UBI is the officially designated foreign exchange dealer in Moreh. Banking and financial transactions are substantial, taking into account the level of economic activities in Moreh and the reported border trade taking place between the two countries through the Moreh–Tamu border.