Strengthening Railway Transport Connectivity

in the South and Southwest Asia

15-16 March 2017, New Delhi

S.M. NAZMUL HASAN

Director

BIMSTEC Secretariat, Dhaka, Bangladesh

dir_bd@bimstec.org

www.bimstec.org

An Overview of BIMSTEC

Established as a Regional

Organization on 06 June, 1997.

BIST-EC to BIMSTEC

• Economic bloc to Multi-Sectoral Org

• Myanmar joined on 22 Dec 1997

• Nepal and Bhutan joined in Feb 2004

Bridge between SA and SEA

A platform for intra-regional

cooperation between SAARC &

ASEAN

An Overview/Contd.

Member States- 07

Secretariat was established in 2014

Some basic facts:

- 1.5 billion (22% of Global population)

- Combined GDP- US$ 2.7 trillion

- Trade potential-US$ 59 billion

- Average Eco Growth -6.5%

- Intra-regional trade US$ 77 billion (SAARC- US$ 44 billion, 2013)

Eastern Indian Ocean regional trade networks, c. 1300-1500

Adopted from © Ports-of-Trade, Maritime Diasporas, and Networks of Trade and Cultural Integration in the Bay of Bengal Region of the Indian Ocean: c. 1300-1500. Kenneth R. Hall. Journal of the Economic and Social History of the Orient 53 (2010) 109-145

Objectives of BIMSTEC

Promote Free Trade Area

Increase cross border connectivity,

investment and tourism

Promote technical cooperation

BIMSTEC Areas of Cooperation

Sector

• Trade and Investment

• Technology

• Energy

• Transport and Communication

• Tourism

• Fisheries

• Agriculture

• Cultural Cooperation

• Environment and Disaster Management

• Public Health

• People-to-People Contact

• Poverty Alleviation

• Counter-Terrorism and Transnational Crime

• Climate Change

Lead Country

- Bangladesh

- Sri Lanka

- Myanmar

- India

- India

- Thailand

- Myanmar

- Bhutan

- India

- Thailand

- Thailand

- Nepal

- India

- Bangladesh

The idea of Connectivity

Connectivity is ‘flattening’ the world

Connectivity is a cornerstone of regional economic cooperation and

integration

Enhanced Connectivity could result in:

- ASEAN and East Asia’s cumulative gain could be over 5% of GDP for

Cambodia, Myanmar, Thailand and Viet Nam and over 2% for India

[Economic Research Unit 2011].

Improved connectivity along with trade facilitation can

significantly enhance regional trade by reducing transportation

time and trade costs

7-Key drivers shaping Connectivity

• Physical connectivity (Road, Rail, Air,

Maritime)

• Trade and transport connectivity (production

and distribution network, value chains etc.)

• Energy connectivity

• Significance of population dynamics

• Nurturing of knowledge-based society

• ICT advancements (digital connectivity)

• People-to-people exchanges

Connectivity Matters

Global flows (trade, people, finance and data) add between $250

billion to $400 billion (15% to 25%) to global GDP growth each

year

Most connected countries can expect to increase GDP growth

from flows up to 40% more than the least connected countries

Connectedness Index 2012:

1. Germany 2. Hong Kong 3. USA 4. Singapore 5. UK

• India and Brazil jumped 15 and 16 ranks respectively because of

participation in global flows of services

Source: No Ordinary Disruption by R Dobbs et al, 2015

Global interconnectedness re-writing the rules of business and inter-state relations

BIMSTEC Transport Infrastructure and

Logistics Study (BTILS)

First raised at the 51st BWG Meeting in Bangkok, in July 2005.

BTILS was agreed and commissioned in February 2007, Commencement in April 2007.

Study was completed in November 2007 and 12th BIMSTEC Ministerial Meeting in December 2009 endorsed the Final Report and its recommendations.

The BWG in 2011 requested ADB to conduct an update and enhancement of the BTILS since there had been significant changes (2007-2011)

ADB submitted the Draft Report on “Updating and Enhancement of the BIMSTEC Infrastructure and Logistics Study” in July 2014 reflecting those changes and extending the planning timeframe forward to 2020.

Sectors Identified by the BTILS

The first BTILS report proposed to constitute the

following five Expert Groups to coordinate,

monitor and review the progress of

implementation of projects:

• Road development

• Railways

• Maritime transport

• Aviation &

• Trade facilitation and Logistics

Outcome of the updated BTILS Report

Finalized Policies and Strategies for BTILS

Prepared a Long List of projects (165) in the

area of connectivity including a short list (66) of

priority projects

Finalized a Monitoring and Follow up

mechanism for implementation of projects

Finalized Institutional Mechanism for monitoring

Proposed Work Plan for 2014-20

Recommended BTILS Rail Policies 2014-20

Rail connectivity to landlocked countries

• Strategy: Development of rail links between

India and the landlocked Member States of

Bhutan and Nepal.

Enhanced rail connectivity between ports and

their hinterland

• Strategy: Prioritize rail access to new and

existing ports especially for bulk cargoes and the

transit of container traffic between the ports and

ICDs

BTILS identified 12 projects. 5 projects [India-

Nepal] and 7 projects [Ban-5, Ind-1, Thai-1]

• BANGLADESH:

i. Tongi–Bhairab Bazaar extra tracking 2014–2015

ii. Second bridges at Bhairab Bazaar and Titas 2014–

2016

iii. 2 more lines Dhaka–Tongi and Tongi–Joydevpur

2014–2015

iv. Double tracking Laksham–Akhaura link 2016–2019

v. Bridge parallel to Bangabandhu Bridge 2016–2020

Short List of BIMSTEC Priority Rail Projects,

2014–2020

Short list/Contd.

• INDIA:

Eastern Dedicated Freight Corridor 2014–2019

• NEPAL:

5 new rail connections with India 2014–2020

• THAILAND:

Chachoengsao–Klong 19–Kaeng Khoi project

2014–2016

Some projects are completed while some in-

progress

‘Soft’ infrastructure

The number of ‘soft’ structure projects has increased

(trade and transport facilitation).

Soft infrastructure projects are related to:

• Increased automation in customs through system

upgrades

• Reductions in trade documentation

• Training of border personnel

• Development of national single windows

• Transport planning in Myanmar

• Port and road planning in Bangladesh

Member States submitted their comments on the Draft

Final Report of the BTILS and Draft ToR.

The implementation of the recommendations of the

Study was discussed at the Inception Meeting of the

BTCWG, held in Bangkok (30-31 Aug, 2016).

BTCWG finalized the ToR, adopted proposed Work

Plan, Implementation Measures and Monitoring

Framework.

Inception Meeting of the BTCWG

SOM Approval

SOM approval required for implementation

of all Meeting decisions

17th SOM, after 03 Years

Endorsed the BTCWG Report and BTILS

Report

Leaders’ Retreat, India, 2016

Outcome Document (14 areas)

Agenda of Action (16 points)

Retreat Outcome Document

“Being convinced that the development of connectivity in

various forms and manifestations is the key to promote

regional integration, we express satisfaction at the continuing

efforts and initiatives to advance multi-modal physical

connectivity (air, rail, roads and waterways) in the BIMSTEC

region. We note with satisfaction the progress achieved in

implementation of the recommendations of the BIMSTEC

Transport Infrastructure and Logistics Study. We agree to

explore the possibility of having a BIMSTEC Motor Vehicle

Agreement.”

Leaders’ Agenda of Action

• Transport and Communication

i. Coastal Shipping Agreement

ii. Greater physical and economic

connectivity

iii. Master plan for BIMSTEC Connectivity

iv. Economical, Technical and Infrastructure

Cooperation

Leaders’ Agenda of Action/Contd.

• Trade and Investment

i. BIMSTEC Framework Agreement on

Transit, Transshipment and movement of

Vehicular Traffic

ii. BIMSTEC Trade Facilitation Agreement

iii. Fast track BIMSTEC FTA negotiations

iv. Discuss BIMSTEC Mutual Assistance on

Customs Matters

Key BIMSTEC Trade Routes

In the context of surface transport, there are 3

dominant existing/potential BIMSTEC trade routes:

Route 1: Kolkata – Siliguri – Guwahati – Imphal -

Moreh/Tamu – Mandalay – Bago - Myawaddy/Mae

Sot – Tak – Bangkok - Laem Chabang;

Route 2: Kolkata - Petrapole/Benapole – Jessore -

Dhaka - Chittagong; and

Route 3: Kolkata – Raxaul/Birgunj - Kathmandu

BIMSTEC Trade Routes

Thank You