A Tale of Three Dry Ports

Tengfei Wang

Economic Affairs Officer

UNESCAP

wangt@un.org

Seminar on the Development of an Integrated Transport and

Logistics System in ASEAN Countries and the Pacific Subregion

21‐23 November 2012

UNCC, Bangkok

Outline of presentation

• Introduction to the project

• Studies of the potential dry ports in Lao PDR, Cambodia and Myanmar

• Some key conclusions

• The way forward

Background

• Successful dry ports in the region have greatly facilitated transport and trade 

• Not all dry ports, however, have been successful• (Pre)feasibility study is the key and first step to ensure the success of dry port

• The prefeasibilities were the components of the project entitled ‘Capacity building for dry port planning through prefeasibility studies of selected dry ports in ASEAN Subregion’, which was financially supported by Korea Maritime Institute (KMI).

Selection of dry ports

• In Lao PDR: Boten or Natuey near the border between Lao PDR and China

• In Cambodia: Trapeang Phlong Border Crossing Gate

• In Myanmar: Mandalay area

Methodology

• Desk research

• Field missions

• National workshop

Classification of dry port: transport mode

• Rail‐based dry ports

– In Russia, ‘TransContainer’ owns a network of rail‐side container  terminals located at 46 railway stations with a throughput of  approximately 1.46 million TEUs in 2009. 

– In China, a programme is underway to construct 18 large inland container rail transfer and logistics distribution centres

• Road based dry ports

Classification of dry port: functions

• Serve as inland extension of sea ports

• Facilitate border crossing and cargo handling

• Serve large cities, and/or industrial and economic zones

Structure of the study report Component 1:

the general background of the prefeasibility study report

Ch I. Introduction

Component 2:Social and economic context of

developing a dry port

Ch II. Socio-economic features and international trade

Ch III. Policy and institutional issues of development of dry port

Ch IV. Development of transport and logistics

Component 3:

Functions, locations, economic and financial analysis, social and environmental issues of development of a dry port.

Ch V. Freight demand forecast of dry port

Ch VI. Physical development planCh VII. Cost estimatesCh VIII. Economic and financial analysisCh IX. Environmental and social impact

assessment

Component 4:

ConclusionCh X. Conclusions and recommendations

In Lao PDR

Dry port

CargoesVehicles

• Services to Vehicles• Services to cargoes

Railway service in the future

Thailand Lao PDR China

CargoesVehicles

CargoesVehicles

Source: the project team

In Lao PDR

830,407896,662

962,9181,029,173

1,095,4291,161,684

1,227,9401,294,195

1,360,4511,426,706

1,492,962

800,000

1,600,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

In Lao PDR: Traffic forecast of the dry port by year 2025 

Functions Required capacity

(tons)

Capacity for non-

containerized cargoes (tons)

Capacity for containerized

cargo (tons)

bonded warehouse: 29,860 Including 5,973 23,887

cargoes from Lao PDR and Thailand to China (consolidation)

95,788 Including 19,157 76,631

cargoes from China to Lao PDR and Thailand (distribution)

27,352 Including 5,470 21,882

total designed capacity (tons) 153,000 Comprising 30,600 122,400

Design of dry port

In Cambodia

In Cambodia

In CambodiaNet weight (ton) Customs value (US$ million)

Type of cargo 2008 2009 2010 2011 2008 2009 2010 2011

Foodstuff 2,921 10,351 23,270 39,298 1.83 4.56 8.87 21.58

mineral and chemical products 8,541 4061 4,641 10,339 5.9 1.65 2.52 4.33

Base metals 431 1,002 3,627 6,485 0.89 1.95 10.09 14.89

Stone, plaster, cement etc 3,992 4,145 6,536 6,270 1.11 1.75 3.46 2.89

Textile and fabrics 11,928 9,956 3,693 4,564 37.06 30.54 8.39 10.55

Wood and Paper 432 1,078 2,736 4,359 1.01 1.27 2.99 4.52

Machinery, vehicles, aircraft and the parts 3,517 3,356 3,497 4,517 4.49 7.60 6.10 11.22

Plastic and rubber products 2,018 1,730 2,753 3,512 4.49 3.8 3.17 4.11

Furniture and toys etc 511 195 274 2,555 1.36 1.25 0.94 5.74

Footwear, umbrellas etc 96 1,220 280 341 0.11 0.59 0.61 0.79

Total 34,387 37,094 51,307 82,240 58.25 54.96 47.14 80.62

Source: derived from the data provided by Ministry of Commerce, Cambodia

Distance between Trapeang Phlong to some cities in Cambodia and Viet Nam 

(km)

Kratie 174 237 Thu Dau Mot

Kampong Chhnang 224 44 Ninh

Kampong Cham 80 Trapeang Phlong 129 Ho Chi Minh city

Kampong Thom 206 187 Bien Hoa

Phnom Penh 202 254 Vung Tau PortNote: the date on distances should be treated as indicative only as they are collected from different channelsSource: the project team

In Myanmar

• Mandalay area is strategically located

Serve a large economyCan be linked to important sea portsMeeting points for important transport routes to sea ports, China and India

In Myanmar: Location of dry port

Costs

• Lao PDR• Total Project Cost 

without land concession fee : US$ 7,469,751

• Land concession 46,000/year * 20 years

• Myanmar• Total Project Cost 

without land concession fee : US$ 10,598,149

• Land concession 42,496/year * 20 years

Financial and Economic analysis

• Lao PDR•Financial Internal Rate of Return: 11.50%•Economic Internal Rate of Return: 16.79%

• Myanmar•FIRR: 8.31%•EIRR: 19.15%

Key findings• Lao PDR and Myanmar• The dry port is 

financially, economically, socially and environmentally feasible

• Cambodia• To provide a dry port 

is not an optimal solution. Study should be focused on facilitating border crossing and allowing more trucks to be involved in cross‐border transport.

The Way Forward

• Lao PDR and Myanmar•Full‐scale feasibility studies should be carried out with the possible assistance of international organizations and donors

• Cambodia•To take measures to facilitate cross‐border transport.

Thank you for your attention