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Showing posts from August, 2020

Transport connectivity for efficient and resilient supply chains.

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One of the Key development purposes of transport connectivity is to redress the fragmented value-adding processes of international supply chains, by enabling the continuous movement of goods across borders.  The Availability of transport infrastructure is a necessary but insufficient condition for achieving the end goal of providing reliable and cost-effective transport services to supply chain participants. It needs to be complemented by performant operational connectivity and, notably, the efficiency of cross-border freight operations. Approaching the issue of transport connectivity from a supply chain perspective encourages multimodality as a cost-optimizing strategy and, owing to the possibility of cascading negative effects along the supply chain, stimulates greater collaboration among participants, greater use of technology and stronger private-public cooperation in tackling the causes of inefficiencies.  Supply chain performance depends on the relationship between econ...

Development of legal frameworks for intermodal and multimodal transport operations.

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 Intermodal transport rationalizes the use of existing facilities, serves the requirements of global supply chains and promotes a more balanced modal split. The existing legal framework for multimodal transport operations, however, do not reflect developments in transport patterns, technology and markets. It still consists of several international conventions designed to regulate unimodalcarriage , various regional and subregional agreements, national laws and standard term contracts.  The need to upgrade  Legal frameworks for international multimodal transport operations in support of the efficient operation of dry ports and intermodal transport corridors was stressed by the Working Group at its 3rd meeting. In that regard, the secretariat is implementing a capacity-development project on a harmonized legal regime for multimodal transport that would best suit the needs of member States.

Pursuing sustainable maritime connectivity.

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  Owing to its competitive edge in transporting high-volume cargo over long distances , maritime transport accounts for more than 80% of world merchandise trade by volume , representing a vital link to global economy for most if not all Asia-Pacific countries.   As highlighted in the theme study of the seventy-sixth session of the ESCAP Commission , entitled Changing Sails: Accelerating Regional Actions for Sustainable Oceans in Asia and the Pacific , there are still significant challenges in connecting the region to major shipping routes . Notably, Pacific small island developing States continue to display the lowest levels of maritime connectivity in the world . At the same time, there is potential for Asia and the Pacific to lead the global transition to greater sustainability in maritime connectivity by enforcing global regulations and instruments and strengthening its regional cooperation. Accordingly, in its resolution 76/1 on strengthening cooperation to promote the c...

Supporting sustainable transport connectivity between Asia and Europe.

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Strengthened and sustainable transport connectivity between Asia and Europe supports greater economic integration, more efficient resource allocation and the continued growth of mutually beneficial international trade on the Eurasian continent.  In the past three decades, many initiatives have been launched to improve Asia-Europe transport connectivity . Such initiatives at the international level include a wide range of activities carried out by the United Nations regional commissions, notably the Economic Commission for Europe (ECE) and ESCAP; the Asia-Europe Meeting initiative, with biennial meetings of the ministers of transport; and 13 railway transport corridors, most of which link North-East and Central Asia with Eastern Europe, proposed by the Organization for Cooperation between Railways. Ad hoc platforms have also been created to address the issue of transport bottlenecks in several subregions relating in part to Asia-Europe connectivity , for example the United Nations ...

Connecting countries with special needs to international supply chains.

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  Despite improvements in transport infrastructure development and transport facilitation in recent years, landlocked developing countries and small island developing States in Asia and the Pacific continue to face challenges in accessing regional and global markets. Landlocked developing countries could benefit from better leveraging the use of new technologies in transit operations and scaling up cooperation along international railway corridors . Small island developing States need to combine national reforms with regional collaborative schemes to increase their maritime connectivity.

Operationalizing electronic transit transport systems.

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Electronic tracking of vehicles and automatic transit systems can significantly improve the transport connectivity of landlocked developing countries in Asia by streamlining border-crossing procedures. They can also enhance national capacities to deal with the challenges of pandemics similar to COVID-19, by facilitating the introduction of regional corridors with facilitated freight flows, known as green lanes or corridors, and helping to monitor the conditions of vehicles and cargo and the health of drivers.    Electronic cargo tracking systems are being increasingly used in transit transport facilitation in developing countries in other regions. Increasing demand and evolving technologies have led to the development of many electronic tracking solutions. A variety of solutions for the electronic tracking of goods and vehicles are now available. Defining their minimum requirements will be a priority action to ensure maximum transit facilitation. The secretariat stands ready ...

Implementing rail corridor coordination mechanisms.

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  Corridor coordination mechanisms can be very beneficial for promoting international rail transport in the landlocked developing countries in Asia. These mechanisms are instrumental in finding concrete solutions to physical and nonphysical barriers to freight flows along corridors. They help to monitor corridor performance, identify existing challenges and possible new markets and engage all stakeholders, including the private sector and all border control agencies, in creating solutions for logistics inefficiencies.  Accordingly, the  ESCP secretariat, with the financial support of the Islamic Development Bank and in partnership with the Economic Cooperation Organization, is implementing a study on the commercialization of the railway corridor connecting Kazakhstan, Turkmenistan and the Islamic Republic of Iran. The aim of the project is to develop a corridor coordination mechanism to enhance coordination among the railways and other stakeholders involved to support eff...

Enhancing maritime connectivity of the small island developing States.

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  While the Asia-Pacific region enjoys a high degree of maritime connectivity overall, the small and remote islands in the Pacific continue to face structural difficulties due to interrelated geographic, economic, demographic and institutional factors that undermine their ability to close the connectivity gap. In addition, owing to the pandemic, shipping companies are reducing the number of calling ports, which is more likely to adversely impact small ports in the Pacific.  There are several policy measures that small island developing States can pursue to enhance their maritime connectivity, for example exploring smallscale efficiency, linking their transport operations to local and regional value chains and hub-and-spoke systems, and supporting energy-efficient and clean solutions. They can also take further advantage of benefits from emerging technologies, especially those linked to cleaner and more efficient energy use.  At the same time, the strategies of the shippin...

Building back better: investing in resilience and the shift to sustainable freight.

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The sustainability of freight transport is a long-standing concern. However, it has become particularly pressing owing to the transport sector’s escalating negative externalities which are undermining the implementation of the 2030 Agenda. The pandemic has lent greater urgency to the issue of resilience and the shift to greater sustainability in line with the worldwide ambition to build back better from the crisis  Increasingly, the transport-related response to the outbreak has a strong environmental component. This is the result of greater momentum gained by international rail and waterborne transport but also the use of smart transport and logistics practices, which tend to produce environmental benefits by optimizing transport and logistics operations. As the pandemic recedes, it will be important to retain, to the greatest extent possible, the use of numerous avoid-shift-improve techniques and new technologies and the greater use of more environmentally conscious modes of tra...

What are the main challenges to implementing sustainable transport?

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Despite growing momentum, implementing sustainable transport systems faces a complex set of challenges that span technology, governance, finance, infrastructure and even cultural resistance to change. The transport sector remains deeply dependent on fossil fuels, with oil powering the vast majority of vehicles, ships and aircraft. Fossil fuel subsidies continue to distort markets, making low-emission alternatives less competitive. The high upfront costs for electric vehicles, charging infrastructure, port and airport upgrades, and system-wide transitions remain a significant barrier, especially in low- and middle-income countries. While long-term savings are well established, many governments and operators struggle to access the capital and financing needed to make these investments. In many low- and middle-income countries, the successful adoption of e-mobility depends on prior improvements in energy access and grid reliability. Without these foundational investments, electric vehi...

Supply chain connectivity and the coronavirus disease pandemic.

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  The COVID-19 pandemic has exposed the major limitations of contemporary supply chains. The established practices of freight consolidation, lean inventories and just-in-time delivery have limited the resilience of international supply chains, leading to shortages of some critical goods and imbalances in freight delivery. Likewise, the pandemic has revealed a hidden precarity in the transport sector as entire segments, such as the aviation sector, small and medium transport operators, freight forwarders and many others, started crumbling when faced with the reduced demand, increasing operational restrictions and other challenges arising from the pandemic. Fractured supply chains and weakened transport and logistics capabilities adversely affect national capacities to implement the 2030 Agenda for Sustainable Development. At the same time, the Asia-Pacific region has made great efforts to preserve transport connectivity during the pandemic (see figure I). Member countries of the As...

Enhancing connectivity along the regional land transport networks in Asia and the Pacific.

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  With the amendments made to the Intergovernmental Agreement on theAsian Highway Network in 2019, the network now covers more than 145,000 km, including an additional 15,000 km of highways in China. While the network continues to expand, the quality of its routes remains a concern. Although the majority of the network consists of class II roads (38%), followed by primary and class I roads (35%), it is reported that in some countries in Central, South and South-East Asia, more than 50% of Asian Highway routes are class III roads or below. These substandard conditions continue to adversely affect road transport operations , leading to increases in congestion, transport costs, road accidents, emissions and other environmental externalities.  In parallel to enhancing the infrastructure quality along the network, significant efforts are still needed to improve operational connectivity by further harmonizing applicable standards; using new technologies and automation; and, in...

Enhancing operational connectivity along the Asian Highway network.

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  As acknowledged in the Regional Strategic Framework for theFacilitation of International Road Transport, there remain major gaps in theharmonization of regional standards for international road transport. This is notably the case for weights, dimensions and emissions of road vehicles used in international traffic, as shown in the assessment carried out by the secretariat as part of the project on strengthening the capacity of ESCAP member States to harmonize standards on weights, dimensions and emissions of road vehicles for the facilitation of transport along the network. The differences in these standards create additional transport costs as transport operators need to purchase additional fleet vehicles, increase the number of trips and acquire necessary permits and certificates.   The project assessment shows scope for the further harmonization ofstandards concerning freight vehicle dimensions , weights and emissions. However, for harmonization to have a tangibl...

Transition towards a smart Asian Highway network.

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  The use of ICT has gained great momentum in the work related to the network, and the urgency of adopting new technology, especially contactlesssolutions , has been heightened by the pandemic.   Most of the transport facilitation tools and models maintained by the secretariat facilitate the use of new technologies. Notably, its Standard Model ofLogistics Information Systems offers practical guidance on setting up systems for the electronic exchange of information to facilitate cargo , vehicles and crew clearance and payment of duties and other taxes.  Supporting the implementation of new technologies , such as highly and fully automated vehicles for long-distance freight traffic along the network, would constitute a major step in this area. These technologies can help to reduce fuel consumption, congestion and road accidents and, as shown in the context of the current pandemic, protect the health of road crew and border-crossing personnel.  However, the dep...

Coordinating emergency response efforts along the Asian Highway network.

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The fragmented policy responses to the pandemic have revealed shortcomings in regional cooperation on cross-border transport in times of pandemics and other disruptions. Recognizing this, the secretariat published a special policy brief on policy responses to COVID-19 and transport connectivity in Asia and the Pacific and set up a dedicated webpage to monitor policy responses along the regional transport network.15 The secretariat has also held several online meetings on COVID-19 and transport connectivity, including an expert group meeting on safe and seamless transport connectivity along the Asian Highway network during and after the pandemic, on 25 June 2020. The expert group reviewed the considerable efforts made by member States to ensure that essential road transport could continue along the Asian Highway network. It highlighted the major steps that had been taken in thedigitization and facilitation of cross-border transport as part of the COVID-19 response. At the same time, i...

Deepening digitization and scaling up the use of smart rail solutions.

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  The growth of traffic in international freight transport along the corridors of the Trans-Asian Railway network in recent years and even during the pandemic1 has underscored the great benefits of international rail transport , including a higher resilience to pandemics and similar disruptions. The current crisis caused by the pandemic can be viewed as an opportunity for railways to strengthen their comparative advantages by harmonizing electronic exchange among themselves, deepening digitization and scaling up the use of smart rail solutions

Harmonizing electronic information exchange in rail transport.

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  Issues related to the facilitation of international rail transport have been receiving increasing attention in the region, and the Committee on Transport, at its fifth session, took note of the draft framework for enhancing the efficiency of railway border crossings along the Trans-Asian Railway network and beyond. The Committee acknowledged that a common understanding of the issues identified in the draft framework, which included electronic information exchange among railways and between railways and control agencies, would be instrumental in ironing out inefficiencies in international rail transport ( ESCAP/CTR/2018/8, para. 29 ). The issue of electronic exchange of information among railways was further considered by the Working Group on the Trans-Asian Railway Network at its 6th meeting, held in December 2019. The Working Group recognized that scattered initiatives lacking in coherence could undermine the seamless flow of information along the railway corridors and lead ...

Deepening digitalization and implementing smart rail services.

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The crisis unleashed by the pandemic presents an opportunity for the railways of the region to deepen digitization and implement smart railwaysolutions , which would further enhance operational efficiency, lower costs and strengthen the competitiveness of railway transport along the network.   Digitizing railways in the Asia-Pacific region is fraught with multiple challenges such as the digital divide, fragmented levels of development of railways and concerns about data protection and cyber security. Therefore, harnessing the full potential of the digitization of the region’s railways requires a framework, including the following: (a) a regional consensus on key areas to be digitized along with a path to scaling up; (b) a plan of action to support railways in landlocked and least developed countries to leapfrog to digitization; and (c) a platform for sharing and learning from the experience of railway digitization. 34. To support the railways of the region, the secretariat, under ...

Dry ports and intermodal transport.

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  Dry ports, like all intermodal facilities, help to meet supply chain requirements by grouping highway and railway access together with theprocessing of customs formalities , warehousing, consolidation and distribution, manufacturing and other economic activities along transport corridors. The  Intergovernmental Agreement on Dry Ports provides for the coordinated development of the regional transport and logistics system and serves to complement the Intergovernmental Agreements on the Asian Highway Network and on the Trans-Asian Railway Network , with a view to facilitating modal integration at the infrastructure planning stage in support of a common regional multimodal network.  Despite their continuing interest in dry ports and other intermodal transport facilities, member States continue to experience challenges and issues in the development and operation thereof owing to infrastructural insufficiencies, institutional matters, lack of deployment of new technologi...

Dry ports are considered holistically as an integral part of international intermodal transport corridors.

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  Dry ports are key to transport efficiency , representing points of convergence where multiple interactions between transport modes, operators and service providers can be synchronized. These facilities offer benefits to a broad spectrum of stakeholders, such as port operators and local or national authorities, who can use them to implement a range of economic, social and environmental policies. Thus, the development and operation of dry ports , especially dry ports of international importance, can be more efficiently addressed if they are considered holistically as an integral part of international intermodal transport corridors At its 3rd meeting, held in November 2019, the Working Group on DryPorts emphasized the need to include dry port development in the broader context of international intermodal transport and economic corridors and scale up the catalytic role of dry ports in the shift to sustainable freight operations and in expanding the scope of the economic and soci...

The application of ICT in transport operations.

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  The application of ICT in transport operations , including intermodal andmultimodal transport with the involvement of dry ports, increases the reliability and security of goods carriage and enables simplified customs and other controlformalities at dry ports . Owing to the current intensive digital transformation ofthe transport industry and increased relevance of contactless solutions , especially in light of the pandemic, the rapid deployment and implementation of ICT at dry ports is imperative to ensure their competitiveness in the transport service market.  There have been major developments in this area, such as a pilot project on multimodal sea-rail cargo transportation using electronic data exchange at all stages, implemented in the Russian Federation since 2019 on the basis of the overall approach and recommendations of a 2017 ESCAP study on informationtechnology. As highlighted by the Working Group at its 3rd meeting, more efforts are needed to promote innovat...