Coastal Shipping in Thailand and Subregional Cooperation Ca - - PowerPoint PPT Presentation

Coastal Shipping in Thailand and Subregional Cooperation

Ca Capacit ity Bu Build ildin ing Work rkshop on St Strengthenin ing Transport Co Connectiv ivit ity among CL CLMV-T

8-9 October 2019, Vientiane, Lao PDR

by Marine Department Ministry of Transport Thailand

Geographical Characteristics

• Length of coastline : 3,148.23 km
• Cover 23 coastal provinces in eastern and southern regions
• Length of coastline along the Gulf of Thailand : 2,055.18 km
• Length of the Andaman coastline : 1,093.05 km

Thailand’s Sea Areas

Type of Sea Areas Areas (Sq.Km.) Gulf of Thailand coastline Andaman coastline and near Straits

• f Malacca

Internal waters 54,103.47 7,850.57 Territorial waters 29,344.36 23,723.86 Contiguous zone 23,909.18 13,604.04 Exclusive economic zone (EEZ) 88193.97 75,633.65 Joint Thailand-Malaysia development area (part of EEZ) 7,125.22 Total areas 202,676.20 120,812.12 Total Thailand’s sea areas 323,488.32

Location of Coastal Ports in Thailand

Coastal Shipping Routes in Thailand

Routes and amount of Domestic Coastal and Inland Water Transportation

Relevant authorities

• Ministry of Transport (MOT) / Office of Transport and Traffic Policy

and Planning (OTP) : Policy development (now promoting the use of rail and water transport)

• Marine Department (MD) : infrastructure development (port

development, channel dredging development and maintenance), port safety and security, port licensing, port clearance

• Department of Treasury : landlord, port ownership and management
• Port Authority of Thailand (PAT) : Ranong Port, Klong Yai Port

Relevant Laws and Regulations

• Thai Vessels Act, B.E. 2481 (1938)
• Definition of “trading in Thai waters” reserves domestic coastal shipping

(transportation of cargo between two points in Thai waters) for registered Thai vessels (cabotage).

• Section 7 stipulates that only registered Thai vessels with at least 70% of Thai

equity (for domestic shipping) with 100 per cent Thai national crew on board and registered Thai vessels with at least 51% of Thai equity (for international shipping) can do “trading in Thai waters”

• Section 47 stipulates that foreign registered vessels can be allowed to do

“trading in Thai waters” if (1) international agreements or treaties signed by Thailand agreed to do so, and (2) it is proved that certain type of Thai vessels is not sufficient and will adversely affect the country’s economy (this will be approved by the Minister of Transport case by case for a period of one year).

Recent Study on Coastal Shipping

• Office of Transport and Traffic Policy and Planning (OTP) conducted a

a Study on Upgrading Thailand’s Coastal Transport Service and Infrastructure System Efficiency in 2016

• Problems found:
• Insufficient depth of water channels
• Limited areas for coastal port construction
• Protest by local communities due to environmental concern
• Lack of sophisticated port facilities and equipment due to short period of

concession

• Lack of hinterland and supported industries
• Lack of efficient inland transport linkages

Recent Study on Coastal Shipping (cont.)

• Recommendations:
• Port infrastructure development and management approach (PPP)
• Promotional measures and incentives to divert from road transport to coastal

shipping

• Develop hinterland and supported industries
• Improve inland transport linkages
• Improve water channels by sub-contract to private sector
• Provide information on benefits and advantages of coastal port development

to local community

• Request the Department of Treasury to extend the concession period to allow

private port operators to invest in modern port equipment and facilities

Other Issues and Challenges of Domestic Coastal Shipping in Thailand

• Cargo owners / consignees / logistics operators prefer road transport to

coastal shipping due to the advantage of door-to-door services and to avoid double handling and incentives/subsidy for cargo owners to divert from road transport to coastal shipping.

• Marine Department vs Department of Treasury on different port

management approach.

• Ranong Port has been underutilized due to unfavorable geographical

conditions.

• Customs Department plans to introduce E-Coasting Trading System to

facilitate Thai vessels engaged in domestic coastal shipping to report cargo declaration to the Department by electronic system using NSW gateway.

Subregional Cooperation on Coastal Shipping Development

Background of TCV Coastal Shipping

• In 2014 Thai and Viet Nam Prime Ministers agreed to promote coastal

shipping along the eastern region of Thailand to the south of Viet Nam by utilizing small and medium-sized ports.

• Cambodia was invited to join the coastal shipping as the coastal route

also passes through its southern region with some potential coastal ports.

• The Tripartite Task Force (TTF) on TCV Coastal Shipping was

established in 2015.

Tripartite Task Force on Coastal Shipping Development (TCV TTF-CSD)

• 1st Thailand-Cambodia-Viet Nam Tripartite Task Force on Coastal

Shipping Development (TCV TTF-CSD) Meeting was held in March 2016 in Bangkok, Thailand.

• 2nd TCV TTF-CSD Meeting was held in November 2017 in Hanoi, Viet

Nam.

• 3rd TCV TTF-CSD Meeting was held in April 2019 in Phnom Penh.
• 4th TCV TTF-CSD Meeting was held in September 2019 in Bangkok,

Thailand.

• 5th TCV TTF-CSD Meeting will be held in March 2020 in Viet Nam

(HCMC/Phu Quoc?).

Outcomes of 3th TCV TTF-CSD Meeting

• TCV considered draft Agreement prepared by Cambodia, based on

Viet Nam’s draft MoU.

• Due to time constraints, the Meeting considered only first 9 Articles

with some were pending.

Contents of Draft CSD Agreement

• Chapter I : General Provision
• Purpose
• Scope
• Definition of Terms
• Chapter II : Service Area, Ports and

Terminal, Vessel Navigation

• Service Area
• Ports or Terminals
• Cabotage
• Documentations
• Pilotage
• Crew Members
• Assistance to Vessels in Distress
• Tariff
• Import Taxes and Duties
• Criminal Jurisdiction
• Facilitation

Contents of Draft CSD Agreement

• Chapter III : Technical Management
• f Designated Coastal Service Area
• Maintenance of Designated Coastal

Service Area and Aids to Navigation

• Cooperation in the Maintenance and

Improvement Works and Aids to Navigation

• Prohibition to Impair Navigability and

Obligation to Remove Obstacles

• Chapter IV : Institutional Framework
• Tripartite Coastal Shipping Working

Group

• Chapter V : Settlement of Disputes
• Settlement of Disputes
• Chapter VI : Final Provisions
• Entry into Force, Validity and

Amendment

• Conformity with National Law
• Suspension of the Agreement
• Relationship with Other International

Instruments

Contents of Draft CSD Agreement

• List of Annexes
• Annex I – Designated Coastal Service Area
• Annex II – Designated Ports / Terminals
• Annex III – Documents and Guidelines for the Safety, Environmental

Protection as well as other documents

• Annex IV – Crew Documents / Professional Competency of Crew Member

Outcomes of 4th TCV TTF-CSD Meeting

• Briefing on the work progress of CVTEC
• Consideration of Draft Coastal Shipping Agreement (CSA) (first-round

completion) with some pending issues.

• Consideration of Draft Guidelines for Safety Standards for cargo

Vessel (need further discussion)

• Consideration of Draft Guidelines on Technical Regulations on Coastal

Passenger Ships (need further elaboration)

Proposed Agenda for 5th TCV TTF-CSD

• Consideration of pending Articles of the Draft CSA
• Draft Guidelines on Safety Standards foe Cargo and Passenger Vessels

(Annex 3)

• Crew Documents / Professional Competency of Crew Member
• License to operate coastal shipping on the designated coastal service

area

• Designated ports or Terminals (Annex 2)

Role of Private Sector

• The Cambodia-Vietnam-Thailand Economic Corridor Cooperation

Conference (CVTEC) was established with the inauguration of CVTEC Meeting on 16-19 August 2018 in Phu Quoc, Viet Nam, and Sihanoukville, Cambodia.

• Private sectors from coastal provinces in Cambodia and Viet Nam

agree to promote southern maritime connectivity corridor

• Thai CVTEC Meeting was held by the Thai Chamber of Commerce on 8

October 2018.

• 1st CVTEC Meeting was held on 15 November 2018 in Chonburi,

Thailand with an MOU signing ceremony between private sectors of Cambodia and Thailand.

Private Sector Undertakings

• Technical visit on CVT coastal routes and CVTEC Meeting between

Cambodia and Thailand on 10-14 May 2019

• Technical visit on the coastal routes among CVT : Traad (T) – Koh Kong

(C) – Sihanoukville (C) – Kampot (C) – Phu Quock (V) – Kian Yang (V) – Can Tho (V) – Ho Chi Minh (V)

Private Sector Undertakings

• CVTEC Meeting between Thailand and Cambodia on 11 May 2019 in

Sihanoukville, Cambodia:

• Thailand and Cambodia agreed to push forward CVTEC and invite Viet Nam to attend

the 2nd CVTEC to be held on 5-6 August 2019 in Rayong, Thailand.

• Thailand’s Board of Investment (BOI) was invited to be a member of Thai CVTEC for it

can consider providing investment privileges to attract investors to invest in EEC area and Traad SEZ.

• CVTEC will continue its work in parallel with TCV TTF-CSD
• Thai CVTEC was set up as a driving mechanism for coastal economic

corridor among three countries, consisting of 34 representatives from public and private sectors.

• Thai CVTEC is tasked to make arrangements for hosting the 2nd CVTEC.

Private Sector Undertakings : 2nd CVTEC MEETING

• The 2nd CVTEC Meeting was convened on 5-6 August 2019 in Rayong,

Thailand.

• Welcome dinner on 5 August 2019
• Officiated and special remarks by Cambodian Ambassador to Thailand on 6

August 2019.

• Signing MoU on promoting trade, investment, logistics, tourism and MICE in the

strategic coastal area among three countries.

MoU on Promoting Trade, Investment, Logistics Tourism and MICE (Private Sector)

• Cambodia : Chambers of Commerce from Koh Kong, Sihanoukville,

Kampot-Ta Keo-Kep

• Viet Nam : Kian Yang Department of Tourism, Ca Mao Department of

Trade and Industry

• Thailand : Chambers of Commerce from Chonburi, Rayong, Chantaburi and

Traad, Tourism Council of Thailand

• Objectives :
• To enhance cooperation in trade, investment and transportation for tourism
• To provide information and publicize tourist information in the area
• To promote human resource development for tourism industry

The 2nd CVTEC MEETING (cont.)

• Special Talk on Views and Opportunities on CVTEC Coastal Strategic

Are

• Joint public-private sectors meeting among the three countries,

breaking into:

• Tourism and Mice Sub-group Meeting
• Trade, Investment and logistics and transport connectivity Sub-group Meeting

The 2nd CVTEC MEETING (cont.)

Summary of Important Issues

• Thai CVTEC encouraged private sectors from Cambodia and Viet Nam

to set up their respective national CVTEC for future cooperation.

• CVTEC acknowledged the current status of TCV TTF-CSD (before the

4th TTF-CSD Meeting in Thailand) and suggested that the public sector

• f the three countries should finalize the Agreement within 2020 as

the CVTEC private sectors are ready to commence coastal passenger transportation, paving the way for tourism.

• It is expected that coastal freight transportation will follow, targeting

at agricultural products and fruit.

Future Plan

• CSA to be finalized within 2020.
• Port Authority of Thailand (PAT) is now considering appropriate port

management approach for Klong Yai Port.

• Implementation by both public and private sectors right after CSA is

signed.

Current challenges for coastal shipping

• How will the agreed concepts in the Coastal Shipping Agreement (CSA) be

put into practices, and how to monitor the implementation?

• Use of technology to facilitate coastal transport among TCV
• Privileges and promotional measures for private operators
• Learn from other countries’ experiences – this should be commonly

agreed upon.

• License to operate coastal shipping on the designated coastal service area

– how to differentiate between licensed and non-licensed operators

• Readiness of designated ports/terminals
• Coastal freight transport encounters competition from road transport.

What has been learning from previous workshop?

Workshop in Myanmar in October 2018 Study on Strengthening Capacity to Plan and Develop Efficient Coastal Shipping in Southeast Asia by UNESCAP, December 2018.

• Good practices by EU and India
• Coastal shipping strategy: country-level solutions,

regional/subregional initiatives

• Way forward:
• Sustainable transport development to meet UN SDGs (7-energy efficiency, 9-

sustainable infrastructure, 11-sustainable transport for all)

• Establishment of a coherent coastal shipping development strategy

Expected Role of ESCAP Secretariat

• Capacity building – use of technology
• Experience sharing – learning from successful coastal shipping

cooperation of other countries

• Policy support – suggestions on national policy to make it contribute

to TCV CSD

THANK YOU