Conference PaperPDF Available

Critical evaluation of Mandalay dry port, Myanmar

Authors:
  • Meiktila University of Economics, Myanmar
  • URaP International

Abstract

Purpose: In the UNESCAP Intergovernmental Agreement on dry ports the Government of Myanmar has nominated Mandalay as a potential site. A critical evaluation of this dry port concept is undertaken. Additional policies are investigated to support the implementation of this dry port. Design/methodology/approach: A summary of the success factors in the planning and operation of dry ports based on international literature is presented. Supporting policies are identified including special economic zones (SEZ). Data collection from stakeholders is conducted through interviews in Myanmar in 2012-13. A qualitative assessment of the Mandalay dry port location is made based on success factors, supporting polices and findings from the interviews. Findings: The ASEAN Master Plan for Connectivity necessitates streamlining sectoral strategies with reference to multimodal transport systems and dry ports in order to enhance intra- and extra-ASEAN connectivity. A Roadmap for the Integration of Logistics Services was endorsed in August 2008 to strengthen ASEAN as a single market and to enhance its competitiveness through trade and transport facilitation. Major transport corridors must be integrated with economic development corridors that can be supported by the planning processes for successful dry ports and special economic zones (especially the strategic and master planning exercises to be undertaken by governments). Originality/value: By taking an integrated, cross-sectoral approach to the planning of freight transport, logistics and land use the paper identifies the success characteristics to minimise risk to both public and private sectors with dry port development.
1
CRITICAL EVALUATION OF MANDALAY DRY PORT,
MYANMAR
John Black1, Thida Kyu2, Violeta Roso3, Kam Tara4
1 UNSW, Australia; 2 Yangon Institute of Economics, Myanmar; 3 Chalmers University, Sweden;
4 Urban Research and Planning Pty Ltd, Australia
Introduction
ASEAN is at the geographic centre of the emerging global centre of production and demand - the
South Asia-Southeast Asia-Northeast Asia-Australia/New Zealand corridor. ASEAN has the highest
share of intra-regional trade to total trade (26.3% in 2008) among the regional economic groupings in
the developing world. This reflects the high level of inter-dependence between regional production
networks operated by both manufacturers and producers (ASEAN Secretariat, 2011: 20). ASEAN
cooperation in transport connectivity aims to establish efficient, integrated, safe and environmentally
sustainable regional land transport corridors linking all ASEAN Member States and countries beyond.
ASEAN has introduced a number of transport facilitation initiatives over to create a more efficient
logistics and multimodal transport system for a seamless movement of goods, connecting land,
maritime, and air transport. A Roadmap for the Integration of Logistics Services (RILS) was endorsed
in August 2008 to strengthen ASEAN as a single market and production base, and enhance its
competitiveness through trade and transport facilitation. However, as far as the missing links of the
Asian Highway Network are concerned, they are located mostly in Myanmar which is used as a case
study for this paper.
We argue that major ASEAN transport corridors must be integrated with economic development
corridors. First, we outline the general concepts of dry ports and special economic zones based on
some of our previous research (Roso, 2009a; Black,
et al
, 2012). The critical success factors for the
planning and implementation processes for successful dry ports are presented based on a search of
best international practice (Table 1). In nominating the potential dry ports to be included in the
UNESCAP Intergovernmental Agreement on dry ports, Myanmar has proposed potential dry ports in
Mandalay, Tamu, Muse, Mawlamyine, Bago, Monywa and Pyay. Mandalay is selected as a case study
of a dry port as part of ASEAN connectivity, and we critically evaluate its location (Table 3) within the
context of Myanmar’s import and export of commodities. Furthermore, special economic zones
(especially the strategic and master planning exercises to be undertaken by governments to attract
private-sector finance) can be created around ports, dry ports and airports to help create economic
development along major international transport corridors, and potential policies for the Government of
Myanmar are discussed in the final section.
Dry Ports and Special Economic Zones
The concept of “dry ports” was neglected for many years (Hanappe, 1986; Munford, 1980) until
increased interest in environmental issues related to growing containerised maritime transport, where
seaport inland access becomes a critical factor for the seaports’ competitive advantage (Roso, 2009a:
3). An inland freight terminal is “any facility, other than a port or an airport, operated on a common-
user basis, at which cargo in international trade is received or dispatched” (UN ECE, 1998). Inland
ports supply regions with an intermodal terminal offering value added services or a merging point for
different traffic modes involved in distributing merchandise that comes from ports. The term dry port is
used synonymously.
The dry port concept (Cullinane,
et al
, 2012) goes beyond the conventional use of railway shuttles for
connecting a seaport with its hinterland. Being strategically and consciously implemented jointly by
several actors from the public and private sectors, it also goes beyond the common practice in the
transport industry of “silos”. In addition to the general benefits to the ecological environment and the
quality of life of people living near main roads by shifting flows from road to rail, the dry port concept
mainly offers seaports a possibility to secure a market in the hinterland, increasing the throughput
without physical port expansion as well as better services to shippers and transport operators.
The Republic of the Union of Myanmar (henceforth Myanmar in this paper noting that some In terms of
policy, special economic zones (SEZ) are useful tools (as part of an overall economic growth strategy)
2
to enhance industry competitiveness and attract foreign direct investment (FDI). The popularity of
special economic zones (SEZ) as a national government policy instrument has taken off since the
1990s, especially in developing economies. The International Labour Organization‘s database of
special economic zones reported 176 zones in 47 countries in 1986; by 2006 this had risen to 3,500
zones in 130 countries (Boyenge, 2007). Advanced economies also use special economic zones as
policy instruments to influence the location of economic investment. For example, in the election
campaign for the Australian Federal Government (September 2013) both major political parties
announced policies on special economic zones in northern Australia. Furthermore, local governments
apply SEZ policies: the Tokyo Metropolitan Government recently launched the Special Zone for Asian
Headquarters project as a new plan to attract foreign companies to Tokyo, with the aim to make Tokyo
the preferred site in the Asian region for regional headquarters and R&D centres. Foreign companies
newly headquartered in five central zones (Central Tokyo Waterfront area, Shibuya, Shinjuku,
Shinagawa, and vacant land near Hanada airport) will benefit from preferential tax treatment, as well
as deregulation and a generous package of fiscal and financial assistance
(http://www.chijihon.metro.tokyo.jp/ahq_project/index.html., accessed 29 August, 2013 ).
In contrast, free-trade zones are fenced, tax-free areas that provide warehousing and distribution
facilities for import/export operations, sometimes with reduced customs, labour and environmental
controls. To maintain control, EPZs have normally been fenced-in estates with strict customs controls
at entry, and sales are typically restricted mainly to export markets. Traditional export-processing
zones (EPZs) were designed to attract investment by enabling countries to better exploit low-cost
labour which was otherwise under-utilised because of low levels of domestic investment and barriers
(regulatory, infrastructure, and so on) preventing foreign direct investment (FDI). EPZs allow investors
to import and export free of duties and exchange controls; they facilitate licencing and other regulatory
processes; and divest firms from obligations to pay corporate taxes, VAT, or other local taxes.
According to a World Bank source (Farole, 2011), achieving success with zone programs in the future
will require adopting a more flexible approach to using the instruments of special economic zones in
the most effective way to make the most of the country’s sources of comparative advantage. This will
require much broader policies than the narrow scope of any special economic zone programme alone,
such as: promoting skills development, training, and knowledge sharing; promoting industry clusters;
supporting the integration of regional value chains; and supporting public-private institutions, both
industry specific and transversal. More fundamentally, this will require a change in mindset away from
the traditional reliance on fiscal incentives and wage restraint, to a focus on facilitating a more
effective business environment to foster firm-level competitiveness, local economic integration,
innovation, and social and environmental sustainability. It will require supporting economic and social
infrastructure, and other residential and business amenities, as illustrated by the Asian Headquarters
Project in Tokyo with its articulated locational advantages of the five zones.
Dry Ports Critical Success Factors
There are a number of factors that influence the implementation process of a dry port. In the first
place, there must be capacity problems in the seaport and suitable infrastructure connectivity (Roso
et
al,
2009; Roso, 2008; Rodrigue and Notteboom, 2012). There must be a suitable location for the dry
port that offer environmental advantages (Roso, 2008; Hanaoka and Regmi, 2010; Cullinane and
Wilmsmeier, 2011) and this will be partly dictated by geographical characteristics of the country. It is
noted that the road lobby often impede railway development (Roso, 2008) and that cooperation
amongst all key stakeholders in the multi-modal transport system is required (Roso, 2012) of which
the regulatory environment if important. Finally, there must be the finance available to build the dry
port. However, as the case studies of Falköping dry port in Sweden (Roso and Lumsden, 2009) or
Nepal’s dry port at Birgunj (Hanaoka and Regmi, 2010) demonstrate, it is relatively easy to develop a
dry port facility but it is a considerable challenge to put it into operation. Based on a review of the
international literature, Table 1 presents the factors that influence dry ports operations and,
consequently, their success.
3
Table 1: Success Factors in the Operations of Dry Ports
Myanmar Economic Background Data
The Republic of the Union of Myanmar (henceforth Myanmar in this paper noting that some western
countries such as Australia and the USA use the former name of the country, Burma) is the largest
country in mainland South-East Asia with a total land area of 676,578 square kilometres. In 2010, the
total population was estimated at 60.6 million with an estimated growth rate of 1.29 percent. Myanmar
is located between latitudes 09°32’N and 28°31’N and longitudes 92°10’E and 101°11’E with much of
the country located between the Tropic of Cancer and the Equator. Distances range from 936
kilometres from east to west and 2,051 kilometres from north to south. Myanmar shares 5,858
kilometres of international borders with Bangladesh and India, on the northwest, The People’s
Republic of China, on the northeast, and Lao PDR and Thailand, on the southeast.
From 1962 to 2011, the country was ruled by a military junta justified internally on the grounds that a
military regime was necessary to prevent the regional and ethnic conflicts escalating into civil war.
After a general election in 2010 a nominally civilian government installed, although the military
retained a considerable influence that is now in decline with various policy reforms. Myanmar has a
high socio-economic potential as a result of its abundant natural and human resources that are
currently underused. In 2011, the agriculture sector contributed 32 percent of Gross Domestic Product
(GDP) and generated 17.5 percent of total export earnings. Myanmar is a predominantly rural country
with only 31 per cent of the population living in urban areas. Table 2 provides information from
Myanmar between 1995 and 2010 but based on different data sources. Myanmar remains a
predominantly rural country with only 31 per cent of the population living in urban areas.
In accordance with the market-oriented policy of the government in Myanmar, restrictions on trade and
investment were removed progressively since 1988. Private-sector participation in domestic and
foreign trade - previously monopolised by the state - are allowed. Border trade was regularised to
facilitate cross border trade with the five neighbouring countries with the Department of Border Trade
established and its 13 branch offices providing one-stop service for border trade matters in
collaboration with various departments concerned. For example, the Muse Border Trade Commercial
Success factor
Reference
Discuss operational agreements in advance
Hanaoka and Regmi (2010)
Emission reductions
Roso and Rosa (2012), Hanaoka and Regmi (2010)
Government logistics policies/support
Hanaoka and Regmi (2010)
Public-private ownership or government
Hanaoka and Regmi (2010)
Railway connection
Roso
et al
(2009), Roso and Lumsden (2010), Hanaoka and
Regmi (2010)
Modal shift from road to rail
Roso
et al
(2009), Hanaoka and Regmi (2010), Cullinane
and Wilmsmeier (2011)
Stimulating economic development
Roso (2009b), Hanaoka and Regmi (2010)
Facilitating international trade
Hanaoka and Regmi (2010)
Development of supporting infrastructure
Hanaoka and Regmi (2010)
Streamlining of institutional and regulatory frameworks
Hanaoka and Regmi (2010)
Double-stack trains
Hanaoka and Regmi (2010)
Advanced information systems
Roso (2012), Hanaoka and Regmi (2010)
Container tracking
Hanaoka and Regmi (2010), Roso (2012)
Market driven development
Hanaoka and Regmi (2010)
Cooperation between the actors of the transport system
Roso (2012), Hanaoka and Regmi (2010)
Coordination among various government agencies
Hanaoka and Regmi (2010)
Temporary warehousing facility
Rodrigue and Notteboom (2012), Cullinane and Wilmsmeier
(2011)
Capacity problems in seaport reduced
Roso
et al
(2009), Roso (2008), Rodrigue and Notteboom
(2012), Cullinane and Wilmsmeier (2011)
Development of value added services
Back
et al
(2013), Roso and Andersson (2010)
Lower distribution cost
Rodrigue and Notteboom (2012), Roso
et al
(2009),
Cullinane and Wilmsmeier (2011)
Good intermediary location
Rodrigue and Notteboom (2012)
Better usage of regional transport infrastructure
Rodrigue and Notteboom (2012)
Expanding or reinforcing hinterland
Cullinane and Wilmsmeier (2011), Roso (2012), Roso and
Rosa (2012)
Marketing support by local economic agencies and state
Cullinane and Wilmsmeier (2011)
Lower land cost and taxes
Cullinane and Wilmsmeier (2011)
Lower cost of living to attract distributions centres into area
Cullinane and Wilmsmeier (2011)
4
Zone has been constructed at the China-Myanmar border area to smooth border trade transiting. The
customs procedures in Myanmar are provided in the Sea Customs Act and Land Customs Act. A
notification was issued to regulate the classification of imported goods and assessment of duties in
accordance with the tariff law that was enacted to assist the market economic system on March 12,
1992. The Green Lane System (GLS), which has been laid out by ASEAN Customs Administrations
for the rapid clearance of goods of ASEAN origins for the development of intra-ASEAN Trade, has
been being implemented in Myanmar since 1st January 1999. The Harmonized Commodity
Description and Coding System (HS) were introduced in April 1992 for modernisation and
standardisation. In 1988, the risk management technique was initiated by Customs to avoid 100 per
cent physical checking of all exports and imports following WTO recommendations. Transit duty was
abolished in 2000. Customs Value Declaration Form (CUSDEC 4) was prescribed to provide the
implementation of the WTO Valuation Agreement in 1999.
Indicator
2000
2005
2010
GDP (kyat billion)
2552.7
12286.8
40507.9
Annual growth of GDP (%)
6.9
13.7
11.9
Per capita real GDP (kyat)
1,492.0
2,000.0
564,091.0
Total population (millions)
50.13
55.4
59.78
Urban population
(percent of total)
29.1
30.4
30.7
Labor Force (millions)
24.3
27.4
31.0
Human Development Index*
0.552
0.406
0.483**
*Human Development Index is Composite index of longevity (measured by life expectancy at birth), knowledge (measured by
expected years of schooling and mean years of schooling), and decent standard of living (measured by the adjusted per capita
income in PPP US$).
** for 2011
Table 2: Macro - Economic Indicators for Myanmar, 1995 - 2010
(Sources: Key Indicators for Asia and the Pacific, 2011 and 2012)
Southeast Asian and Asian countries dominate the pattern of trade to and from Myanmar. In 2008/9
the bulk of Myanmar’s exports in value (57%) went to countries in South-east Asia, predominantly
Thailand (39%) and Singapore (13%), and to other Asian countries (37%) - primarily to India (12%),
Hong Kong (10%) and the People’s Republic of China (9%). There is a similar geographical
distribution with the value of import: in 2009/10 imports came from the People’s Republic of China
(30%), Singapore (29%), Thailand (9%), Japan (6%), Korea (6%) and India (5%).
Evaluation of Mandalay Dry Port Concept
A report for the United Nations ESCAP recommends a dry port of area of 8.5 hectares be established
near the existing Merchandise Center in Mandalay (Ryoo
et al
, n.d.) at a total cost of $US10.5 million.
The report provides detailed costs of land acquisition, site preparation and utility services, together
with the necessary dry port infrastructure, based on unit rates and typical designs on other Asian
countries, especially Laos and Thailand. The criteria in Table 1 are applied to our case study of
planning a dry port in Mandalay in order to assess its potential success in implementation and
operations (Table 3). Internal transport is a major barrier to economic development. Myanmar is the
poorest performer amongst ASEAN countries and this acts against a dry port in Mandalay. The World
Bank has published the Logistics Performance Index (LPI) which is a multidimensional assessment of
logistics performance that compares the trade logistics refers to trade- and transport-related
infrastructure (e.g., ports, railroads, roads, information technology). Among 155 countries, Myanmar is
ranked 129th (with a score of 2.37) in terms of the LPI, and 133rd (with a score of 2.10) in terms of the
quality of infrastructure (ADB 2012, p. 22). According to truck drivers, the transit time between
Mandalay and Yangon is about 24 hours (including 6 hours rest).
5
Success factor
Positive
Negative
Congestion in main port
Yangon has landside space constraints
Government logistics
policies/support
In progress
Public-private ownership or
government
Railway and waterway
connections
Poor freight services and river
navigation constraints
Modal shift from road to rail
Road sector developing rapidly
Stimulating economic development
Yes in Upper Myanmar
Facilitating international trade
Between China and India
Development of supporting
infrastructure
With commitment of provisional government
Streamlining of institutional and
regulatory frameworks
Too challenging at present
Double-stack trains
No
Advanced information systems
No
Container tracking
No
Market driven development
In progress
Cooperation between the actors of
the transport system
No evidence
Coordination among various
government agencies
No evidence but being driven by
Ministry of Economic Development
Temporary warehousing facility
Merchandise City
Capacity problems in seaport
reduced
Too far from congested Yangon
unless rail is improved
Development of value added
services
Potentially in Mandalay
Good intermediary location
Between Muse (China trade) and Yangon
Better usage of regional transport
infrastructure
Requires construction of new
railway to Muse
Expanding or reinforcing hinterland
Yes
Marketing support by local
economic agencies and state
Requires work
Lower land cost and taxes
Action by provincial and city governments
Lower cost of living to attract
distributions centres into area
Lower than in Yangon
Table 3: Mandalay Dry Port Qualitative Evaluation of its Implementation and Operation
There is a good case for a dry port to serve Yangon. The Port of Yangon is the premier port and
handles approximately 90% of the country's normal exports and imports. Cargo throughput using
Yangon port has been increasing markedly each year with containerised cargo at an annual growth
rate of approximately 16% for the last six years. The port is located in the downtown area of Yangon
with limited space for expansion and severe road traffic congestion on surrounding streets. However,
whether Mandalay is an optimal location warrants careful scrutiny, and Table 3 is our critical appraisal
of this dry port concept. Mandalay is the second largest city in Myanmar, situated 716 kilometres by
road from Yangon and located in an arid area. It is an important point for land transport services. Most
of the cargoes handled at the city are exports of beans and pulses and imports (primarily agricultural
equipment and fertilizers) by land from China (via Muse) and India (via Tamu), some of which are
distributed to municipalities in southern Myanmar.
It takes about a week to carry cargoes by water between Yangon and Mandalay, where freight rates
are lower than trucking and railway services. The dominant provider of freight services on the inland
network of waterways is the Myanmar Inland Water Transport (IWT), a state enterprise of the Ministry
of Transportation. In 2011, IWT handled 5 million tons of freight about 50 per cent more freight than
carried by the railways. IWT has approximately 240 powered vessels, many of which are old, with a
total capacity of about 70,000 tons. Myanmar has some 5,000 km of navigable waterways, of which
about 2,400 km make up the primary inland waterway network, including the Ayeyarwaddy River on
which Mandalay is located. The lack of budgetary resources for dredging activities and navigation
facilities is a major constraint. Extensive and repeated dredging is required on all river systems, as
well as effective navigation and communications facilities. For most locations where IWT provides
services, the river ports are little more than landing beaches. Vessels are loaded and unloaded from
the beach by means of a simple gangplank. At some locations, specialized cargo-handling facilities
are available for bulk commodities.
6
With constantly increasing cargo throughput the port of Yangon is facing sever congestion problems at
the seaport terminals but also on nearby connecting roads in the city centre. Congestion does not only
create delays and frustration but also financial loss for carriers. Implementation of a dry port at a
convenient location in Mandalay could solve the seaport’s congestion issues and increase the
seaport’s capacity and consequently productivity so that more container vessels could call at the port.
Well functioning distant dry port could significantly improve customer service, in particular regarding
lower transport cost, faster delivery and safety of cargo. Today it takes about 24 hours by road to
cover a distance of about 700km between Yangon and Mandalay; with well functioning rail it should go
much faster and safer. For example, before Isaka Dry Port implementation in Tanzania, it took more
than a week to transport and clear containers at the 800km distant Dar es Salam seaport (Roso and
Lumsden, 2010); now with the dry port in the system it takes two days. Furthermore, the Mandalay
area could benefit from availability of logistics solutions in the area, which usually attracts industries in
the area and creates new jobs, consequently supporting regional development. In addition, there is the
current and buoyant truck cross-border truck traffic with China (Shibasaki
et al
, 2010:43). However,
the role of Mandalay assumes that rail infrastructure is in place and well functioning a considerable
challenge given the current state of the national railway system (Thida Kyu,
et al
, 2013).
The busiest railway route in Myanmar is between Yangon and Mandalay, and in many cases,
commodities imported from China (Yunnan) are transshipped to freight cars at Mandalay and
forwarded to Yangon. On this route, 40 one-way freight train services (80 round-trip services) are
operated every month. One train is made up of 15 freight cars. One freight car weights 32 tons,
meaning that one train of 15 cars is as heavy as 480 tons. (JIFFA, 2012: 28). The transit time between
the cities is approximately 20 hours. The following challenges facing Myanmar’s railway sector; all
routes are still unelectrified. As passengers enjoy priority over cargoes, freight trains are not allowed to
travel in the morning. For the same reason, it is difficult to develop schedules for cargo services. As
such, there is no established freight train schedule. Rails and other facilities are not well maintained.
Moreover, it is not easy to buy spare parts and components. Therefore, there is a difficulty in
managing and operating the railway system. - Basically, cargo loading and unloading activities at train
terminals are performed manually. Furthermore, they are provided so poorly that cargoes are
sometimes damaged severely.
Discussion
The Master Plan for ASEAN Connectivity (ASEAN Secretariat, 2010:30) identifies that the key issue
and challenge facing the sub-regional connectivity of the Greater Mekong (including Myanmar) is in
transforming the transport corridors into economic corridors and ensuring optimal use of the transport
infrastructure. The report calls for the establishment of appropriate policy, regulatory, and institutional
frameworks. Enhanced physical infrastructure development (physical connectivity), and effective
institutions, mechanisms and processes (institutional connectivity) are two of the three-pronged
strategies of the Master Plan on ASEAN Connectivity (ASEAN Secretariat, 2011). In addition to
physical connectivity, a Roadmap for the Integration of Logistics Services (RILS) was endorsed in
August 2008 to strengthen ASEAN as a single market and production base, and enhance its
competitiveness through trade and transport facilitation. These include: (a) ASEAN Framework
Agreement on the Facilitation of Goods in Transit (AFAFGIT), (b) ASEAN Framework Agreement on
Multimodal Transport (AFAMT), (c) ASEAN Framework Agreement on the Facilitation of Inter-State
Transport (AFAFIST), (d) Roadmap for Integration of Air Travel Sector (RIATS), and (e) Roadmap
Towards an Integrated and Competitive Maritime Transport in ASEAN (RICMT).
A report for the United Nations ESCAP has recommended a dry port of area of 8.5 hectares be
established near the existing Merchandise Center in Mandalay at a total cost of $US10.5 million. The
report (Ryoo et al, n.d.) provides detailed costs of land acquisition, site preparation and utility services,
together with the necessary dry port infrastructure, based on unit rates and typical designs on other
Asian countries, especially Laos and Thailand. We have presented the criteria for the successful
planning and operations in Table 1 are have applied these to the planning of a dry port in Mandalay
(Table 3). Whilst there is a strong case for a dry port to complement the port of Yangon there are
numerous adverse factors working against Mandalay as a suitable location. Therefore, to bolster
Mandalay as a location we recommend that a special economic zone be promulgated around the dry
port with the vision of creating a “smart city”.
Smart cities irrespective of whether they are new towns or part of the revitalization of existing cities
must address economic sustainability in addition to social and environmental sustainability. Our
7
previous research has formulated a “triple bottom line” evaluation framework that allows urban
planning policies and strategic plans to be compared quantitatively (Doust and Black, 2009). One
issue in the economic sustainability of is employment creation especially in new niche industries. The
challenges (Black, et al, 2012) are employment creation, the necessary internal and external
infrastructure required to support the local economy, and effective urban management and planning to
deliver an appropriate urban form that could be considered as a “smart city”. The conclusions from this
previous research suggest in the case of successful special economic zones with a smart city
component the need for the Government of Myanmar to set strategic directions, leading edge urban
planning and development controls and a strong private-sector participation in the implementation of a
dry port and a special economic zone, including job creation.
Conclusions
The Master Plan on ASEAN Connectivity (ASEAN Secretariat, 2011) recognises that the development
of international transport corridors should be integrated with spatial economic planning. The
Government of Myanmar has nominated Mandalay as a potential location to be included in the
UNESCAP Intergovernmental Agreement on dry ports, where a pre-feasibility study has been recently
undertaken (Ryoo,
et al
, n.d.). This paper has undertaken a critical appraisal of the Mandalay dry port
concept by first examining all of the success factors in planning and operating dry ports based on a
review of the international literature (Table 1) and then applying these criteria to the Mandalay case
study to make a qualitative assessment of its location as a dry port (Table 3). Given the current poor
state of transport and logistics in Myanmar the case for private-sector investment is far from
compelling. However, we have argued that integrating a special economic zone with the planning of a
dry port will enhance the likelihood of success. Previous research (Black,
et al
, 2012) suggest that
successful special economic zones with a smart city component require the Government of Myanmar,
when planning a dry port at Mandalay, to set strategic directions, formulate leading edge urban
planning and development controls, and to encourage strong private-sector participation in the
implementation of infrastructure in both the special economic zone and the dry port.
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... Kawasaki et al. [18] x Strutt et al. [19] Stone and Strutt [20] x x Tansakul et al. [21] x Kudo and Kumagai [22] x Black and Kyu [23] x ...
... Kudo and Kumagai [22] used a general equilibrium geographic model to simulate a bipolar economic system with Yangon and Mandalay and compared the results among the different GRDP growth scenarios in Myanmar, but the simulation was not based on a logistics network and the area covered was only within Myanmar. Black and Kyu [23] analyzed Myanmar's imports and exports with a focus on Mandalay's dry ports, but did not consider Myanmar's trade relations with other countries, such as its relationship with ASEAN on land. Zin [24] also focused on Myanmar's dry ports, but did not consider their relationship with neighboring countries. ...
... Some findings of this study reinforce the implications obtained from previous studies that analyzed individual policies in Myanmar. The results in this study indicated that the combination of opening a new port and a transport corridor would give a more significant and wider impact on cargo flows even for a neighboring country (Thailand), as with Black and Kyu [23] and Isono and Kumagai [27]. This study also revealed that the development of a new port and transport corridors may reduce the congestion of Thilawa port, as Zin [24] pointed out on the dry port in Myanmar. ...
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This study focuses on container shipping in Myanmar, which is expected to grow manifold in the near future, given the country’s rapid economic growth rates. This study simulates the impact of Myanmar’s logistics policies on container shipping. These initiatives include the improvement of the East–West Corridor of the Greater Mekong Subregion and the development of the Southern Corridor and Dawei port. The global logistics intermodal network simulation model including both maritime shipping and land transport, is applied to the land-based southeast Asia (ASEAN) region. The estimated results obtained for several different scenarios are crosschecked and compared with the available information on observed flows. Based on the simulation results, the authors conclude that policies that reduce cross-border barriers and improve service levels in Dawei port would result in Thailand using Myanmar’s ports for their cargo as well.
... The term dry port in this study is used to refer to an inland intermodal terminal directly connected to seaport(s) by rail, where customers can leave/pick up their standardized units, as if directly at/from the seaport (Roso et al, 2009). Three components have been recognized as key to the successful dry port concept: (1) on-dock rail, (2) reliable inland connection and (3) a functional inland intermodal facility (Black et al, 2013, Roso et al 2009. These three components, taken together, make-up the innovation of the dry port concept (Roso et al, 2009). ...
... Such developments have been observed in China (Beresford et al., 2012), Australia and New Zealand (Roso, 2013;Black et al, 2018).), India (Ng and Gujar, 2009), the United States (Rodrigue et al, 2010, Asia (Hanaoka and Regmi, 2011;Black et al, 2013), Russia (Korovyakovsky and Panova, 2011), and Europe (Flämig and Hesse, 2011;Henttu and Hilmola, 2011;Monios, 2011, Bask et al, 2014, Khaslavskaya and Roso, 2019. To meet the increased demand on the East Coast due to the Panama Canal expansion, some of the seaports are extending their docks and acquiring new equipment to handle larger vessels. ...
... Many have identified success factors for dry ports for their specific cases. Black et al's (2013) study on dry port implementation in Asia summarizes the factors that influence dry ports' implementation and operations and, consequently, their success. However, as a part of intermodal transport solutions the dry port concept has issues with multiple transshipments that might increase costs, reliability and speed (Wiegmans et al, 2007). ...
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Dry ports, when implemented effectively, reduce seaport congestion, improve seaport throughput and, due to the movement of containers from road to rail, reduce harmful emissions. This study investigates the implementation of dry ports at five U.S. seaports, which is then analysed considering the diffusion of innovation attributes. Data for the study was collected through face-to-face interviews at US East Coast seaports of Miami, Everglades, Jacksonville, Savannah and Charleston. To ensure validity, the triangulation of data sources was performed; i.e. a number of secondary sources were used, such as reports, internal and external documents, as well as site visits to the facilities. Three components have been recognized as key to the successful dry port concept: on/near-dock rail, reliable inland rail connection and a functional inland intermodal facility. These three components have a diverse group of stakeholders, many of whom are unknown to one another; however, when coordinated, they create the innovation of the dry port concept. If the attributes of successful innovations are understood, with respect to their influence specifically on dry ports, then they can be managed to contribute to the successful implementation of dry ports. The novelty of the research lies in its approach of using the diffusion of innovation attributes that have been historically proven to impact the adoption rates of innovations to provide insight into the adoption of the dry port concept.
... The social dimension is embedded within the environment since society would not exist without the natural world. Beside the aforesaid theoretical basis, Black et al. [41] explored the factors (see Table 2) that impact the operations of dry ports and, consequently, their success from a sustainability perspective: Given the increasing awareness of public engagement, stakeholders' attitudes have become a fundamental concern in the development of a dry port. Therefore, all three categories of sustainability (economic, social, and environmental) must be assessed concurrently when analyzing the sustainability performance [42] of dry ports. ...
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This study consolidates research on operational sustainability in dry ports. A total of 232 papers published in the last 23 years (2000–2023) are reviewed to assess the breadth of research perspectives in dry port sustainable operations. Additionally, the findings summarize current research trends, identify flaws in the body of knowledge, and suggest potential research areas. A bibliographic analysis approach is deployed to explore the existing body of knowledge, review the concepts in depth, and narrow the focus on potential research areas. Within this context, a content analysis technique has been utilized to explore and understand the conceptual underpinnings of specific themes, typically involving trending subjects like sustainability, dry ports, inland ports, economic sustainability, social sustainability, and environmental sustainability. Tools such as BibExcel and VOSviewer were utilized to assist in conducting the bibliometric analysis. The majority of dry port research has concentrated on the definition, functions, policy and governance, location analysis, ownership, and dry port-seaport interaction. Less attention is paid to dry port sustainability in line with the Sustainable Development Goals (SDGs), the interaction of internal and external collaboration with dry port sustainability, dry port social sustainability, dry port economic sustainability, dry port environment sustainability, and dry port service quality. Specifically, there has been limited research output on the sustainability of dry ports within the context of landlocked nations. This study will raise awareness of unexplored areas for further research by focusing on critical issues that are not generally covered by scholars in existing literature, such as dry port internal sustainability management and external collaboration.
... The inabilities of dry ports to demonstrate their actual capabilities in the supply chain due to limited modal shift, poor connectivity, and a narrow range of value-added services make dry ports ineffective in serving seaports or performing the role of seaports in some regions. Challenges such as limited connectivity capacity (Ng and Gujar, 2009), strict border transaction procedures (Kunaka et al., 2014), low seaport-dry port integration (Jeevan et al., 2020a), poor economic corridors (Black et al., 2013), environmental issues (Hanaoka and Regmi, 2011) and restricted capacity and productivity are generally faced by all dry ports, in coastal and landlocked regions alike. These challenges have a significant impact on dry port operations and their stakeholders since inefficient dry ports mean inefficient transport chains from seaports to their hinterlands and vice versa. ...
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Malaysia is a coastal country surrounded by sea, while Nepal is a landlocked country with no direct access to the ocean. This paper investigates the challenges faced by dry ports in Malaysia and Nepal and looks into issues concerning the connection of seaports and dry ports both intra-regionally, i.e. within Malaysia, and inter-regionally , i.e. outside of Nepal. The structure of dry port operating systems in these two areas is visibly different. Hence, the relationships between the major nodes in these different geographical regions need to be examined. Face-to-face and telephone interviews with dry port operators, legislative personnel, and public policy stakeholders from both countries were conducted to establish the impediments to dry port operations. Interview session transcripts have been analyzed using grounded theory. This tool is suitable for this paper due to its capacity to identify categories and concepts within the text linked together to form theoretical models. Secondary data have been used to support the primary data collected, to enhance the range and reliability of the findings. The findings indicate challenges such as inadequate connectivity capacity, inefficient border transactions, seaport-dry port integration issues, inefficient economic corridors, insufficient legislative framework for policy and regulation development, and environmental issues faced by the two countries. These challenges have a negative impact on the possibility of dry ports in Malaysia to take full advantage of their potential. Meanwhile, in Nepal, such challenges limit dry port operations since dry ports are the main gateway for the nation's international trade. This paper recommends strategies for overcoming these challenges and improving the quality of dry port operations, focusing on the provision of sophisticated and modern logistics services to stakeholders in the different geographic landscapes.
... The inabilities of dry ports to demonstrate their actual capabilities in the supply chain due to limited modal shift, poor connectivity, and a narrow range of value-added services make dry ports ineffective to serve seaports or perform seaports' roles in particular regions. Challenges such as limited connectivity capacity [39], strict border transaction procedures [31], low seaport-dry port integrations [22], poor economic corridors [5], environment issues [16] and restricted capacity and productivity [13] are generally faced by all dry ports either in coastal or landlocked regions. These challenges will significantly impact dry port operations and their stakeholders since inefficient dry ports will affect transport chain efficiency from seaports to their hinterlands and vice versa. ...
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The fusion of seaport and city has been a key assimilation that has aided any coastal country in global trading operations. Meanwhile, the constraints on seaports, particularly their rigidity and inability to respond immediately to the uncertainty inherent in the global trading scenario, necessitate the establishment of dry ports as an intermediary entity between seaport and city. As a result, the term "seaport-city" has been redefined in this study. Additionally, the benefits and drawbacks of reciprocal relationship between a harbour and a metropolis have been discussed. Face to face interviews were conducted and the transcribed data were analysed using thematic analysis. Essentially, seaport-city in Malaysia refers to a symbiotic interaction between these two organisations for the purpose of maintaining the country's sustained growth. Regional growth is the primary benefit derived by cities from seaports, whereas pollution is the primary disadvantage derived by seaports. On the other hand, cities rewarded seaports with labour assistance and favourable spatial conditions. In comparison, seaports from surrounding cities experienced constraints such as delays and fewer possibilities for labour variety. To facilitate the development of a seamless network connecting seaports and cities, dry ports have been suggested as intermediate node in this complex freight network.
... In the past decade, the dry port concept gained a lot of attention from researchers around the world who identified the success factors for dry ports related to their specific cases. Black et al. (2013) study on the implementation of a dry port in Asia Table 1. ...
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The basic idea behind the concept of a dry port is a more efficient seaport access, movement of the seaport’s interface inland with the shift of flows from road to rail. The application of the concept results in a reduction of road transport to/from the seaport together with the associated broad social and environmental benefits. This paper examines the complex factors influencing the timeframes and location of close inland intermodal terminals with dry port characteristics - metropolitan intermodal terminals, as they are usually referred to - and their implementation, with a case study of the Sydney metropolitan region and Port Botany, Australia. The issues surrounding suburban freight terminals are a sub-set of the wider social and environmental problems of the interactions of seaports with their hinterland. Port Botany and its close inland intermodal terminals are very distinctive: there are very few ports in the world with such a well-developed network of close inland intermodal terminals. Nevertheless, the Moorebank terminal was first mooted in 2003 but the latest plans anticipate operations commencing in 2018. The paper illustrates some problematic aspects of long timeframes for the development of significant freight infrastructure.
... Dry ports should be developed with adequate space so as to allow efficient, reliable and economical movement of containers, in particular when they are developed to support seaport operations. Examples are evident when at the Virginia dry port that complements Virginia seaport in the USA, Halifax dry port for Vancouver seaport in Canada, and Myanmar dry port for Yangon seaport (Black et al., 2013). Therefore, restrictions in space expansion will affect dry port operations. ...
Research
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This paper examines the influential factors of Malaysian dry port operations by conducting a web-based survey of Malaysian dry port stakeholders. Multiple regressions were employed for analysing the data collected. The regression results reveal that among 30 factors investigated 12 were significantly important to Malaysian dry port operations. These include information system factors sufficient information sharing and providing accurate forecasting of freight; service features factors, i.e. customs clearance and value-added services; capacity factors such as adequate highway and wide roads, sufficient operational equipment and sufficient space for current and future container storage; government policy factors including public-private partnerships (PPP), seaport policy and cabotage policy; and hinterland condition factors i.e. road connectivity and the strategic location of dry ports.
Chapter
A dry port is an inland intermodal terminal connected to a seaport by rail where customers can leave/pick up their standardized units, as if directly at/from a seaport, and get access to a variety of value-adding services. A dry port is a special kind of inland terminal, which can be described as a type of logistics platform. There is a common understanding that the successful implementation of a dry port lowers congestion and environmental impact through modal shift; however, the benefits for the actors of the transport system can include other aspects, such as increase in seaports' terminal capacity and productivity, regional development, and better customer service. The development of a dry port includes three phases: the pre-phase, the start-up phase, and the growth phase. There are a number of factors that influence the implementation of a dry port, one being the cooperation between the actors of the transport system, and in the future, the inclusion of different value-added services could become an important factor. As a response to the challenges facing the transport sector, and in particular ports and their hinterlands, the dry port concept will continue to grow.
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One issue in the economic sustainability of special economic zones (SEZ) is employment creation especially in new niche industries. We frame this problem in the context of developing countries and special economic zones (SEZ) and the interconnected issues of strategic and master planning, employment creation, the necessary internal and external infrastructure required to support the local economy, and effective urban management and planning to deliver an appropriate urban form that could be considered as a " special economic zone smart city ". We draw on a World Bank study of special economic zones in developing and developed countries to tease out evidence on the poor performance in terms of spatial and master planning of many special economic zones. Our empirical evidence on planning policies, spatial development and employment creation and outcomes with particular emphasis on timelines are drawn from green-field and brown-field (urban revitalization) site case studies from metropolitan Sydney, Australia – in the local government areas of Penrith, Botany and Maitland City Council (Lochinvar). The conclusions suggest in the case of successful special economic zones with a smart city component the need for a government authority to set strategic directions, leading edge urban planning and development controls and a strong private-sector participation in the implementation of special economic zones including job creation.
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This paper shows how important the use of statistics in Asian transport is for the model calculation in order to evaluate impacts of the policy to improve the environment of international freight transport. How the model accuracy is improved if some statistics are available in the model calculation, and how different the impacts to the model accuracy are discussed according to the type of available data used, especially from viewpoints of "detailed zoning" and "usage of more realistic data". As a result, it is found that "detailed zoning" enhances the model accuracy. On the other hand, the impact of "usage of more realistic data" on worldwide international cargo flow is limited, but it is as significant as that of "detailed zoning" on international cargo flow crossing national border by land. It is also found that both of them bring significant differences when evaluating policy effects such as infrastructure investment and alleviating barriers of national borders.
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The volume of international trade and freight transport in Asia has witnessed fast growth in recent decades. The resulting environmental impact of freight transport operations has become a major cause of concern. Intermodal transport has gained prominence recently due to its potential to offer door-to-door service through the integration of various modes of transport in the logistics chain, improved coordination and services, and the development of intermodal interfaces. However, few studies have focused on this development in Asia. The development of intermodal transport requires transport links, nodes, and services. The development of dry ports, an important component of intermodal transport, could play a major role in promoting intermodal transport in Asia, including its twelve landlocked countries. Dry ports located in deep inland areas, as opposed to near the sea, would incorporate customs and other related facilities and rail links, as well as provide for transfer, transshipment, and distribution functions for cargo. By encouraging a modal shift, such dry ports would help to ease road traffic congestion and reduce emissions. This study reviews the status of intermodal freight transport in Asia from an environmental perspective. It examines intermodal transport opportunities presented by the development of inland dry ports in hinterland locations. This paper also reviews selected case studies of dry port development in Asia. Finally, we present the lessons to be learned for the promotion of intermodal freight transport from selected Asian countries as well as the policy options available.
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The dry port concept is based on a seaport directly connected by rail to inland intermodal terminals, where shippers can leave and/or collect standardised units as if directly at the seaport. The purpose of this paper is to present the dry port concept, to identify and categorise existing dry ports for the Port of Goteborg and to evaluate the concept from an environmental perspective. The conclusions indicate that implementation of a dry port in the seaport's hinterland enables the seaport to increase its terminal capacity; the modal shift from road to rail results in a reduced congestion at the seaport gates and its surroundings and consequently in improved inland access, as well as in a lesser environmental effect. Only two of the surveyed intermodal terminals can be categorised as simple dry ports for the Port of Goteborg.
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Purpose A close dry port with direct rail connection to a seaport is a potential solution for seaport terminal congestion as well as for better seaport inland access. The purpose of this paper is to investigate and define impediments to a close advanced intermodal terminal – dry port implementation. Design/methodology/approach Comparative case studies through face‐to‐face interviews and a literature review have been carried out in order to accomplish the purpose. In addition, secondary sources such as reports, internal documents and web pages were used. Findings The most common factors that impede dry port implementation are infrastructure, land use, environment and regulations. Hence, the same reduce the efficiency of freight movements on land access routes to and from seaports. An advanced intermodal terminal must fit into a complex system where the necessary infrastructure is in place and the regulatory systems are properly designed to optimize the involvement of both the public and the private sector. Research limitations/implications Empirical data for the case studies are collected at Port Botany, Sydney, and its close intermodal terminals. A more comprehensive view of the problem could be obtained through additional case studies on other countries' seaports' intermodal terminals. Originality/value The idea behind the study is to contribute to a better understanding of the concept of close dry port through the factors that influence the implementation of the same and thereby to improve knowledge of the implementation of the concept.
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The dry port concept is based on a seaport directly connected by rail with inland intermodal terminals where containers can be dealt with in the same way as if they were in a seaport. The main purpose of the article is to extend the theory behind the dry port concept and to define three dry port categories; distant, midrange and close. The findings show that the dry port concept can help identify ways of shifting freight volumes from road to more energy efficient traffic modes that are less harmful to the environment, relieve seaport cities from some congestion and facilitate improved logistics solutions for shippers in the port’s hinterland.
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An urban sustainability framework is proposed for the strategic planning and assessment of the location of land-use activities and transportation facilities that incorporates the three pillars of sustainability: environmental stewardship, social equity and economic efficiency. Part of this framework is illustrated with the interactions amongst urban housing markets, labor markets and transportation linkages, in particular automobile travel and greenhouse gas emissions. The framework is applied to a case study of metropolitan Sydney using census data for a twentyyear period, and the results are used to assess the effectiveness of post-war strategic planning in metropolitan Sydney.
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Argentine Government Authorities and port users alike agree that the container handling facilities in the country's leading general cargo port, Buenos Aires, are far from adequate both in terms of handling equipment and space availability Until recently, container throughput had not been significant enough to put any great pressure on the port, but a sudden influx of boxes over the past 12 months has served to highlight its shortcomings and urgent improvisation and recourse to the private sector have been necessary to allow the port to continue to function. Though a plan has been advanced to develop a new container berth in the port with private enterprise participation, this now looks unlikely to materialize and Buenos Aires' role as a major container port is likely to decline.
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The development of inland freight distribution systems has been an active strategy to promote the hinterland of maritime gateways around the world. While differences can be observed among North-American and European hinterlands, the setting and development of rail-based dry ports in those regions come in many forms and shapes. This paper demonstrates that the observed similarities and differences are the result of the regional and local governance and regulatory settings, the types and strategies of stakeholders involved, the spatial and functional relations with adjacent and or distant gateway ports, the dynamics in logistics network configurations, the specific competitive setting (i.e. competition with trucking and barges in Europe) and the imperatives in rail operations. In spite of the technical similarities brought by intermodalism, European and North American dry ports are functionally two of a kind since they play different roles within their respective transport and supply chains.