Recommendations of Implementation of the GMS Cross-Border Transport Agreement (CBTA): Possible Roles for the Private Sector

SPEECH BY TANIT  SORAT

Third Greater Mekong Subregion Summit of Leaders

30-31 March 2008, Vientiane, Lao PDR

Problems and recommendations for GMS Cross Border Transportation Agreement (CBTA), which is the agreement of transport connection among the countries in GMS region, must give precedence to North-South and East-West Economic Corridor, especially on Route R9 and Route R3.  The important point is the need to change agreement in G2G level, which the government of each country giving assent for materialization of this project.  Road transportation tend to be the important mode in connecting Intra GMS Countries and it will be the option mode between sea and land transportation which is currently a speedy way for traveling and transporting goods to Bangkok via Route R3 to Kunming takes about 3-4 days whereas sea transportation takes 3 times longer than road transportation.

Important Issues Requiring Agreement for Practical Reasons are as follow:

1. Route R9  Mukdaharn-Savarnakhet connecting requires urgent agreement SSI: Single Stop/ Single Window Inspection including GMS Multiple Visa which is for truck drivers.  Moreover, registration of 500 trucks are not enough, it has to urgently study for making Single Stop and Single Window which is processed successful at the frontier between Dansavanh border in Laos and Lao-Bao border in Vietnam including Single Stop failure case study at Hekou in China and Lao-Cai in Vietnam, which could not process practically; consequently, it will be the case study of Route R3 and R9 in Thailand.  However, there is an agreement to streamline Mukdaharn and Savarnakhet frontier which SSI Agreement must rules and covers practically about documents inspection.      There is also collaboration in customs clearance, Border Check Point, quarantine and Immigration Authorities in one location in the national territory which is aimed at reducing time frame by 70%.  However Route R9 offers opportunities for Thais to make investment in Offshore Factory, particularly in Lao-Bao Industrial Estate will be the high potential and it will be alternative way to transit cargo among Thailand-Laos-Vietnam-China.

2. Route R3E  also called R3A or Kunmung-Konglu  have the potential to be transport connecting in Northern Thailand which have Chiangrai to be Economic Gateway to Borkaew district, Luang Namtha and Yunnan, with Kunming being the center.  It is necessary to accelerate the agreement of using road and also speed up building Maekong River Bridge, especially transshipment agreement.  Presently, Thailand has no Door to Door Agreement of Thailand-Laos-China transshipment in international scale and the private sector need to accelerate the agreement of using toll payment, repairing road and traffic signs and streamlining regulations which are less progressive because the government in each country wants to use the standard format of Route R9.  However, Thailand’s business sector gives the high priority to Route R3 because it is the shortest route 228 kilometers approximately to connect Thailand and China via Northern Laos.  This area offers a chance for investment to promote agricultural and co-production industry, particularly tourism.