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All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington DC 20433, USA; fax: 202-522-2625; email: [email protected]. Cover photo: Linh Pham 1 ABOUT THE AUTHORS Dung Anh Hoang is a Senior Transport Specialist in the World Bank Group, currently managing the transport portfolio in Vanuatu and Solomon Islands in the Pacific region. He is an Engineer by training and has been working in the Bank for 16 years. He has been the Task Team Leader for numbers of projects in multi-modal transport and logistics, expressways, pilot PPPs for highways, and inland waterways, covering both infrastructure development and policy advisory services. Previously he was a Lecturer at the National University of Civil Engineering and worked extensively with the Ministry of Transport in Vietnam. He holds a master’s degree in engineering from the Asian Institute of Technology and a bachelor’s degree in engineering from the National University of Civil Engineering in Vietnam. Dung has worked in Vietnam, Myanmar, India and Bangladesh, in addition to Thailand and Laos. Yin Yin Lam, a Senior Trade Logistics Specialist in the World Bank Group, manages and works on logistics projects across Asia. Her professional experience includes work on transport infrastructure and policy advisory in Vietnam, China, India, Indonesia, Philippines, Singapore, and some other countries in Europe and Africa. Yin Yin has experience in various positions including as Assistant Head of the logistics sector development team at the Economic Development Board of Singapore, Deputy Manager at PSA (Port of Singapore), Regional Director at International Enterprise Singapore (formerly the Trade Development Board), and a Board Director’s Advisor in the Asian Development Bank. She holds a master’s degree in economics for development from the University of Oxford, a post-graduate diploma in financial sector management from the University of London, and a bachelor’s degree in economics from the National University of Singapore. Paul Amos is a consultant specializing in transport sector strategy and management. An economist by training, he was previously the Transport Advisor to the World Bank and a Senior Banker at the European Bank for Reconstruction and Development. His early experience was as a transport and management consultant including positions of Principal of Booz Allen & Hamilton in the UK and Managing Director of Travers Morgan in Australia. He has carried out transport policy, project and lending assignments in more than forty countries and spanning all modes of transport, including in the inland waterways sectors in China, India and Vietnam. Paul Reddel is a consultant focusing on infrastructure development and financing. He has worked widely across Asia and other regions on policies, strategies, financing and transactions in transport and other infrastructure sectors. This has covered work in both the private and public sectors. He was previously a Regional Program Leader in the Public-Private Infrastructure Advisory Facility, a World Bank-managed global facility. Prior to this, he had senior private sector role around infrastructure financing and transactions with PwC and earlier with Morrison & Co, an infrastructure fund manager and adviser. His initial experience was with Queensland Treasury as Director (Infrastructure), involved in the delivery of significant transport, energy, water and other major projects. Pham Thi Phuong is a national consultant, focusing on the legal and institutional framework in the transport sector. Her background is in waterway transport economics and law. She has worked in different departments under the Ministry of Transport (MOT) of Vietnam for more than 30 years where she spent 21 years working as a high ranking official and Deputy Director General of the Legislation Department. Her duties and responsibilities were relating to transport legislation and policies of transport sub-sectors such as roads, inland waterways, railways, multimodal transport and logistics. Nguyen Thi Phuong Hien has been working for the Transport Development and Strategy Institute (TDSI), Ministry of Transport of Viet Nam for 22 years. She has experience in strategic and master planning, regulation, financial and economic analysis as well as climate resilience in the transport sector. She is currently focusing on development issues in the maritime, inland waterway, and logistics sectors and climate changes. Hien obtained a master’s degree in Transport Economics from Leeds University, the United Kingdom and other two graduate degrees in road and bridge engineering and railways economics from the University of Transport, Vietnam. 2 CONTENTS ABOUT THE AUTHORS ............................................................................................................................. 2 Foreword ................................................................................................................................................. 6 Acknowledgments ................................................................................................................................... 8 Glossary of Terms and Acronyms ........................................................................................................... 9 Summary of Findings and Recommendations ...................................................................................... 10 1. The Case for Developing Inland Waterway Transport ................................................................. 21 1.1 A Strategic Industry, for Many Reasons ............................................................................ 21 1.2 The World Bank and IWT development ............................................................................ 22 1.3 IWT, Freight Logistics, and Economic Growth .................................................................. 23 1.4 Scope of the Report .......................................................................................................... 25 2. The Role, Assets, and Performance of IWT .................................................................................. 27 2.1 The Role of IWT ................................................................................................................. 27 2.1.1 Contribution to Total Traffic Task ................................................................................. 27 2.1.2 Traffic Growth ............................................................................................................... 27 2.1.3 Commodities Carried .................................................................................................... 29 2.1.4 Passenger Transport by IWT ......................................................................................... 30 2.2 The Waterway Network .................................................................................................... 31 2.3 The Inland Vessel Fleet ..................................................................................................... 33 2.4 Inland Ports and Terminals ............................................................................................... 34 2.5 Waterway Safety ............................................................................................................... 34 2.6 IWT Development Planning .............................................................................................. 36 3. The Legal and Regulatory Framework .......................................................................................... 39 3.1 Introduction ...................................................................................................................... 39 3.2 Policy Aims of IWT Regulation .......................................................................................... 40 3.3 Scope of Regulation .......................................................................................................... 40 3.4 Technical Regulatory Structure ......................................................................................... 40 3.5 Economic Regulatory Structure ........................................................................................ 42 3.6 Allocation of Responsibilities to Ministries ....................................................................... 43 3.7 Legal Provisions on the Financing Framework .................................................................. 45 3.8 Assessment of Regulatory Framework ............................................................................