SAARC Regional Multimodal Transport Study SAARC REGIONAL MULTIMODAL TRANSPORT STUDY (SRMTS) Prepared for the SAARC Secretariat June 2006 i SAARC Regional Multimodal Transport Study © SAARC Secretariat No part of this publication may be reproduced in any form without prior permission or due acknowledgement. Published by SAARC Secretariat P.O. Box: 4222 Kathmandu, Nepal Tel: (977-1) 4221785, 4226350, 4231334 Fax: (977-1) 4227033, 4223991 Email: [email protected] Web-site: www.saarc-sec.org Printed by: WordScape, Nepal ii SAARC Regional Multimodal Transport Study PREFACE At the Twelfth SAARC Summit (Islamabad, 4-6 January 2004), the Heads of State or Government emphasized that for accelerated and balanced economic growth it is essential to strengthen transportation, transit and communication links across the region. Subsequently, SAARC Regional Multimodal Transport Study (SRMTS) has been conducted with a view to enhance transport connectivity among the Member States of SAARC to promote intra-regional trade and travel. SRMTS is a comprehensive Study covering all modes of transport - road, rail, maritime, aviation and inland waterways. The Report of the SRMTS has been appreciated by the higher SAARC bodies and its recommendations have now been prioritized. The SAARC Leaders have called for early implementation of the recommendations contained in the Study. I am also pleased to mention that action is being taken to extend SRMTS to include Afghanistan. I commend the national and regional consultants for conducting the Study successfully. I also wish to express my appreciation to the Asian Development Bank (ADB) for providing technical and financial assistance (under ADB RETA 6187: Promoting South Asian Regional Economic Cooperation) in conducting the SRMTS. The Report of SRMTS is a rich source of reference containing information on transport connectivity and its relevance to socio-economic development in South Asia. Chenkyab Dorji Secretary General of SAARC iii SAARC Regional Multimodal Transport Study ACKNOWLEDGEMENTS The principal authors of this report were the team of Regional Consultants, consisting of the following: • Dr Mohammed Rahmatullah (Team Leader); • Mr S K Mishra (Regional Consultant); • Mr Mohammad Jamshed (Regional Consultant); • Prof Amal Kumarage (Regional Consultant); • Capt Mohammed Shafi (Regional Consultant); and • Capt Alim Shaikh (Regional Consultant). The report was principally based on input from the national teams during Phase 1 of the project and the national teams were as follows: Bangladesh Mr Matin Talukder (Team Leader), Mr Mohammed Ataur Rahman, Mr Mohammed Abdus Sattar and Mr Ashraful Alam Sarkar; Bhutan Mr Tashi Wangyal (Team Leader); India Mr S K Mishra (Team Leader), Mr R K Singh, Mr Sudhir Rangnekar, Mr S B Basu and Mr Ghanshyam Singh; Maldives Mr Hussain Naeem (Team Leader); Nepal Dr Pushkar Bajracharya (Team Leader), Mr Chinpal Rauniar and Mr Ananda Bahadur Shrestha; Pakistan Mr Sajid Mansoor (Team Leader), Mr Shahud Iqbal, Mr Imtiaz Hussain Rizvi and Mr Iefan Naqvi; Sri Lanka Prof Amal Kumarage (Team Leader) and Dr P Ramachandran. The team would like to acknowledge the valuable contribution provided by the personnel at the SAARC Secretariat, including HE Mr. Chenkyab Dorji, Mr. Y. K. A. Rohanajith, Mr. Sufiur Rahman, Mr. Rajiv K. Chander, Ms. Leiileen and Mr. S. C. Sharma. The team is especially grateful to Mr Rohanajith for his valuable advice and guidance and to his immediate staff for arranging the various technical workshops. The project was undertaken with funding provided by the Asian Development Bank (ADB) specifically for this project. The ADB team who contributed to the study included, Mr. Sultan H. Rahman, Mr. Masaaki Nagata, Mr. Bishnu Pant, Mr. Shunso Tsukada, Mr. Prianka Seneviratne, Mr. Binod Karmacharya, Ms. Pawitra Gurung and Ms. M. Serrano. The team is especially grateful to Mr Pant and Mr Karmacharya for their project coordination and arrangements in relation to the various meetings and to Mr Tsukada and Mr Anthony Bayley (ADB RETA Consultant), who acted as peer reviewers and assisted the teams in the preparation of both the national and final reports. iv SAARC Regional Multimodal Transport Study ABBREVIATION ADB Asian Development Bank ASA Air Service Agreement ASEAN Association of South East Asian Nations ASYCUDA ++ Automated system for customs data BCN 8 wheel air brake rail wagon BCX 8 wheel vacuum braked covered rail wagon BG Broad gauge (rail) BIA Biman International Airways BOO Build Own Operate BOT Build Operate Transfer BR Bangladesh Railways CAA Civil Aviation Authority CFS Container Freight Station C&F Clearing and Forwarding CTD Customs Transit Declaration CVOR Aviation Radar System DME Distance Measuring Equipment DTI Direct Trader Input DVOR Aviation Radar System DWT Deadweight tonnage (of ships) ECO Economic Cooperation Organisation EDI Electronic Data Interchange FCL Full Container Load FDI Foreign Direct Investment GDP Gross Domestic Product GMS Greater Mekong Sub region GNI Gross National Income HDI Human Development Index HSD Oil High Speed Diesel ICAO International Civil Aviation Organisation ICES Indian Customs and Excise System ICD Inland Clearance Depot ILS Instrument Landing System IR Indian Railways IWT Inland Waterways Transport JNPT Jawaharlal Nehru Port Trust KN Kilonewton LCL Less than Container load MG Metre gauge (rail) ODA Overseas Development Aid PCU Passenger Car Equivalents PIA Pakistan International Airways POL Petroleum and Oil Liquids PPP Purchasing Power Parity RETA Regional Technical Assistance Roro Roll-on roll-off vessels RMGC Rail Mounted Gantry Crane RMQC Rail Mounted Quay Crane RTGC Rubber - tyred Gantry Crane SAARC South Asian Association for Regional Cooperation SAFTA South Asian Free Trade Area SRMTS SAARC Regional Multimodal Transport Study STS Ship to Shore Gantry Crane TEU Twenty foot Equivalent Unit – Containers TIR Transport International Routers TPH Thimpu – Phuentsholing Highway UN-ESCAP United Nations – Economic and Social Commission for Asia and the Pacific WCO World Customs Organization v SAARC Regional Multimodal Transport Study TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................. xi 1.0 BACKGROUND ....................................................................................................1 2.0 REGIONAL PROFILE.........................................................................................4 2.1 General Background..........................................................................................4 2.2 Population...........................................................................................................5 2.3 General Development Trends ...........................................................................6 2.4 Trade Cooperation.............................................................................................7 2.5 Stimulating Investment......................................................................................8 2.6 Poverty Situation................................................................................................8 2.7 Trends in Transport Development ...................................................................9 2.8 State of Transport Cooperation......................................................................11 2.8.1 Road Transport..........................................................................................13 2.8.2 Rail Transport ...........................................................................................14 2.8.3 Inland Water Transport ............................................................................15 2.8.4 Maritime Transport...................................................................................15 2.8.5 Air Transport.............................................................................................16 2.8.6 Border Crossings.......................................................................................16 3.0 IDENTIFICATION OF KEY CORRIDORS/GATEWAYS ...........................17 3.1 Road Corridors................................................................................................17 3.1.1 Road Corridors Considered ......................................................................17 3.1.2 Approach to Corridor Prioritization.........................................................18 3.1.3 List of Selected Corridors..........................................................................19 3.2 Rail Corridors..................................................................................................19 3.2.1 Rail Corridors Considered ........................................................................19 3.2.2 Approach to Corridor Prioritization.........................................................20 3.2.3 List of Selected Corridors..........................................................................21 3.3 Inland Waterways Corridors..........................................................................21 3.3.1 Inland Waterway Corridors Considered ..................................................21 3.3.2 Approach to Corridor Prioritization.........................................................22 3.3.3 List of Selected Corridors..........................................................................22 3.4 Regional Maritime Gateways..........................................................................23 3.4.1 Regional Maritime Gateways considered.................................................23