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Connecting Landlocked Developing Countries to Markets
Another step that would accelerate the long-delayed improvement in customs treatment of the LLDCs’ trade, and one that would have valuable long-term effects, would be to expand the main inland clearance depots transformed into dry ports (that is, at Birganj in Nepal and Kabul in Afghanistan). Shipping agents would be appointed and the shipping lines persuaded to accept the move of their containers inland, using through-bills of lading. The dry ports should attract offices of relevant logistics service companies. And Nepal hopes to provide an attractive site for new manufacturing or service enterprises. Truck operations sufficient to support the activities described could be provided under current arrangements, although it would be desirable to replace the standard transshipment at the border with open competition among truckers of both nations for the full journey from seaport to inland destination.
Reform Transport Market Regulation Actions taken: Extensive efforts have been under way over the past 20 years, especially in India and Pakistan, to modernize management structures of state-owned major transport entities, including some separation of regulatory responsibility. Also, many services have been concessioned to the private sector, particularly in India. Road freight services are almost entirely provided by the private sector, with strong competition modified in some places by local associations. Technical regulation is weakly enforced, and the quality of standard services is low. Current priorities: Badly needed throughout the region is more effective control of the overloading of road freight vehicles. Existing overloading enables the offering of almost uniquely low freight rates, but it has serious effects on safety and road infrastructure. Increasingly effective control would cause the vehicle fleet to shift toward vehicles larger than the twoaxle trucks typically still used, offering in turn a more reliable, higher quality service—with vehicles like semi-trailers that are also useable for transit in the Islamic Republic of Iran or Turkey and are TIR-compatible. A carrier registration system should be designed to set up agreed standards regarding transport company management, finances, and safety standards, and to verify compliance. This would help improve the quality of carrier service available and would be a step toward achieving the ability to designate some carriers as “accredited operators” whose goods could be given expedited treatment at border posts.