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Transport Connectivity for Landlocked Countries as a tool of development

Transport Connectivity for Landlocked Countries as a tool of development . Jan.Hoffmann@UNCTAD.org Lahore, December 2013. 2 brief comments upfront. Bali UNCTAD’s Review of Maritime Transport 2013 just released : How long to implement Bali?

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Transport Connectivity for Landlocked Countries as a tool of development

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  1. Transport Connectivity for Landlocked Countries as a tool of development Jan.Hoffmann@UNCTAD.org Lahore, December 2013

  2. 2 briefcommentsupfront • Bali • UNCTAD’sReview of Maritime Transport 2013 justreleased: • How long to implement Bali? • Which 4 countries register more than50% of the world fleet? • How many tons of seabornetrade? • Who are the South Asian leaders in shipping connectivity? • Which 2 countries build more than 2/3 of all ships? • … see: http://unctad.org/rmt

  3. Transport Connectivity • for Landlocked Countries • as a tool of development

  4. More trade -> More transport supply -> More competition -> lower freights -> More trade

  5. More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation

  6. Better services -> More trade -> More income to finance infrastructure -> Better services

  7. Transport Connectivity • for Landlocked Countries • as a tool of development

  8. Transport networks • Transport analysis: • Past: Port-to-port • Today: Door-to-door • Future: Network Sources for maps: http://www.ischool.drexel.edu/gissa/transport.html, http://www.mscgva.ch, Transport for London

  9. Introducing containerizationleads to more trade Bernhofen et al, 2013 The Economist 18 May 2013

  10. Higher Container Shipping Connectivity leads to lower trade costs (Arvis et al, 2013)

  11. Better connectivity leads to lower freight rates (Wilmsmeier and Hoffmann, 2008)

  12. … more so than distance (Wilmsmeier and Hoffmann, 2008)

  13. Liner Shipping Connectivity

  14. Trends http://stats.unctad.org/LSCI

  15. Transport Connectivity • for Landlocked Countries • as a tool of development

  16. Trade and Transport Facilitation is needed not to so much to cover “distance”, but to overcome border crossings.

  17. The number of RTAs with trade facilitation provisions has grown six-fold in the last decade. Among new RTAs, more than 80% include Customs and other trade facilitation measures.

  18. Interest of transit countries • Transit traffic requires provision of services. Opportunities for investment in warehouses, vehicles and ports. • Transit generates induced economic activities: restaurants & hotels, repairs & workshops, trade of petroleum products • Economies of scale and improved connectivity reduce costs of the transit country’s own trade

  19. Bali TF agreement: on transit • Article 11 Freedom of Transit • Article 1 (publication) Article 2 (consultations)Article 6 (penalty prov.) Article 7.7 (AEO)Article 8 (border agency cooperation)Article 10 (formalities)Also cover transit!

  20. Special chapter in UNCTAD’s 2013Review of Maritime Transport Assurance of uninterrupted transit: Consignments between trusted transit operator traders through trusted transit operator logistics providers should not be interrupted by any agency for any reason except in the case of clear evidence of a threat or violation. Assurance of uninterrupted transit should be adopted as a basic feature of all trusted transit operator programmes.

  21. Transport Connectivity • for Landlocked Countries • as a tool of development

  22. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade, • save time and frustrations, • improve governance, • empower women entrepreneurs, • strengthen regional integration, • modernize public administrations, • foster IT capacities, and • increase revenue collection.

  23. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade

  24. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade • save time and frustrations

  25. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade • save time and frustrations, • improve governance

  26. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade • save time and frustrations • improve governance • empower women entrepreneurs

  27. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade • save time and frustrations • improve governance • empower women entrepreneurs • strengthen regional integration

  28. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade • save time and frustrations • improve governance • empower women entrepreneurs • strengthen regional integration • modernize public administrations

  29. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade • save time and frustrations • improve governance • empower women entrepreneurs • strengthen regional integration • modernize public administrations • foster IT capacities

  30. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade • save time and frustrations • improve governance • empower women entrepreneurs • strengthen regional integration • modernize public administrations • foster IT capacities • Improve security

  31. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade, • save time and frustrations, • improve governance, • empower women entrepreneurs, • strengthen regional integration, • modernize public administrations, • foster IT capacities, and • increase revenue collection.

  32. Beyond trade policies… TTF is good for development Trade and Transport Facilitation reforms help to … • formalize trade, • save time and frustrations, • improve governance, • empower women entrepreneurs, • strengthen regional integration, • modernize public administrations, • foster IT capacities, • Improve security, and • increase revenue collection.

  33. DevelopingICTs The introduction of ICTs by Customs encourages SMEs to also connect to the internet

  34. Developing Transit A framework for bank guarantees for transit trade helps improve the financial system

  35. Developing trust Increased transparency is good for good governance in general

  36. Developing Single Windows A single window experience for trade may help to introduce single windows elsewhere

  37. Implementationismore difficult for LDCs

  38. More trade -> More transport supply -> More competition -> lower freights -> More trade

  39. More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation

  40. Better services -> More trade -> More income to finance infrastructure -> Better services

  41. Transport Connectivity • for Landlocked Countries • as a tool of development

  42. Lower Trade Costs -> More trade -> Economies of scale -> Lower Trade Costs … for both: landlocked and transit countries

  43. Transport Connectivity for Landlocked Countries as a tool of developmentThank you Jan.Hoffmann@UNCTAD.org Lahore, December 2013

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