U.S. Trade and Development Agency South Asia Transport and Trade Facilitation Conference Preliminary Country Briefing Report Fall 2005 2006 South Asia Transport and Trade Facilitation Conference Briefing Book Country and Sector Analysis Prepared for US Trade and Development Agency Prepared by Domus A.D. LLC October 11, 2005 Prepared by: DOMUS A.D., LLC Print Date: 10/18/2005 U.S. Trade and Development Agency South Asia Transport and Trade Facilitation Conference Preliminary Country Briefing Report Fall 2005 Table of Contents 1. Introduction ..........................................................................................................1 1.1 Why transport, trade facilitation, and logistics matter ...........................................1 1.2 Tariffs and Foreign Direct Investment in South Asia ..............................................3 1.3 Regional Cooperation ............................................................................................5 Characterization of Participants ..................................................................................6 South Asia Free Trade Agreement...............................................................................6 1.4 Major Economic Indicators ....................................................................................6 Recent developments................................................................................................6 Near-term outlook .................................................................................................. 10 1.5 Political Issues .................................................................................................... 11 The new international security dimension in trade ....................................................... 11 Maritime Transport Security..................................................................................... 11 1.6 Major Transportation Issues................................................................................ 12 Security-driven improvements can benefit trade ......................................................... 13 2. Afghanistan Country Profile................................................................................. 14 2.1. Background ......................................................................................................... 14 2.2. Economic Performance ........................................................................................ 14 2.3. Trade................................................................................................................... 14 2.4. Foreign Investment ............................................................................................. 15 2.5. Transport Sector.................................................................................................. 16 2.5.1. Ports......................................................................................................... 17 2.5.2. Air Transport.............................................................................................. 17 2.5.3. Railways.................................................................................................... 19 2.5.4. Roads and Highways ................................................................................... 20 2.5.5. Waterways................................................................................................. 23 3. Bangladesh Country Profile ................................................................................. 24 3.1. Background ......................................................................................................... 24 3.2. Recent Economic Performance............................................................................. 24 3.3. Trade................................................................................................................... 24 3.4. Foreign Direct Investment................................................................................... 26 3.5. Transport Sector.................................................................................................. 26 3.5.1. Sector Policy .............................................................................................. 26 3.5.2. Current Status At A Glance........................................................................... 27 3.5.3. Ports......................................................................................................... 28 3.5.4. Air Transport.............................................................................................. 31 3.5.5. Railway ..................................................................................................... 32 3.5.6. Roads and Highways ................................................................................... 33 3.5.7. Waterways................................................................................................. 34 3.6. Projects Under Consideration .............................................................................. 35 4. Bhutan Country Profile ........................................................................................ 37 4.1. Background ......................................................................................................... 37 4.2. Recent Economic Performance and Foreign Trade................................................ 37 4.3. Transport Sector Developments........................................................................... 37 4.3.1. Sector Policy .............................................................................................. 37 4.3.2. Current Status At A Glance........................................................................... 38 4.3.3. Ports......................................................................................................... 38 4.3.4. Air Transport.............................................................................................. 38 4.3.5. Railway ..................................................................................................... 39 4.3.6. Roads and Highways ................................................................................... 39 Prepared by: DOMUS A.D., LLC Page i DRAFT Print Date: 10/18/2005 U.S. Trade and Development Agency South Asia Transport and Trade Facilitation Conference Preliminary Country Briefing Report Fall 2005 4.4. Projects Under Consideration .............................................................................. 39 5. India Country Profile ........................................................................................... 41 5.1. Background ......................................................................................................... 41 5.2. Recent Economic Performance............................................................................. 42 5.3. Trade................................................................................................................... 42 5.4. Foreign Direct Investment................................................................................... 43 5.5. Transport Sector.................................................................................................. 43 5.5.1. Sector Policy .............................................................................................. 43 5.5.2. Current Status At A Glance........................................................................... 44 5.5.3. Ports......................................................................................................... 44 5.5.4. Air Transport.............................................................................................. 47 5.5.5. Railway ..................................................................................................... 50 5.5.6. Roads and Highways ................................................................................... 52 5.5.7. Waterways................................................................................................. 53 6. Maldives Country Profile...................................................................................... 55 6.1. Background ......................................................................................................... 55 6.2. Recent Economic Performance and Foreign Trade................................................ 55 6.3. Transport Sector Developments........................................................................... 55 6.3.1. Current Status At A Glance........................................................................... 55 6.3.2. Ports......................................................................................................... 56 6.3.3. Air Transport.............................................................................................. 56 6.3.4. Railways.................................................................................................... 56 6.3.5. Roads and Highways ................................................................................... 56 6.3.6. Projects Under Consideration ........................................................................ 56 7. Nepal Country Profile .......................................................................................... 58 7.1. Background ......................................................................................................... 58 7.2. Recent Economic Performance and Foreign Trade...............................................