Logistics Development Study of

the Greater Mekong Subregion

NorthSouth Economic Corridor
Summary
Copyright 2008 Asian Development Bank.
All rights reserved. Published 2008.
Printed in the Philippines.
Publication Stock No. 101307.


1. Logistics Analysis 2. North-South Economic Corridor
3. Greater Mekong Subregion
The views expressed in this book are those of the authors and do not necessarily refect the views
and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they
represent.
ADB does not guarantee the accuracy of the data included in this publication and accepts no
responsibility for any consequence of their use.
Use of the term country does not imply any judgment by the authors or ADB as to the legal or other
status of any territorial entity.
The Asian Development Bank (ADB) encourages printing or copying information exclusively for personal
and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling,
redistributing, or creating derivative works for commercial purposes without the express, written consent
of ADB.
This document is a summary of a full unpublished report, Logistics Development
Study of the North South Economic Corridor, prepared by Mr. Ruth Banomyong,
Centre for Logistics Research, Faculty of Commerce & Accountancy, Thammasat
University, Thailand. Mr. Banomyong based the study on analysis of the trade and
transport logistics development of the NorthSouth Economic Corridor, carried
out from September 2006 to May 2007, with assistance from national consultants
Mr. Chuntai Zhang (Peoples Republic of China), Mr. Viraxay Phonekeo (Lao Peoples
Democratic Republic), Mr. Apichat Sopadang (Thailand), and Ms. Trinh Thi Thu Huong
(Viet Nam).
Mr. Ronald Antonio Q. Butiong, Senior Regional Cooperation Specialist and Task
Manager for Asian Development Bank Regional Technical Assistance No. 6310:
Development Study of the NorthSouth Economic Corridor, provided overall guidance
and support. Ms. Charisse Tubianosa, consultant for the RETA, also provided assistance
to the various activities related to the conduct of the study.
Queries relating to this document should be addressed to gms@adb.org.
2 Logistics Development Study of the GMS NorthSouth Economic Corridor
Logistics Development Study of the GMS NorthSouth Economic Corridor 3
Introduction
Background
The six Greater Mekong Subregion (GMS) countries have
a shared vision of becoming a prosperous, integrated,
and harmonious subregion. To achieve this vision, they
have adopted strategies to enhance connectivity and
improve competitiveness. The members of the GMS
are Cambodia; Yunnan Province and Guangxi Zhuang
Autonomous Region (Guangxi), Peoples Republic
of China (PRC); Lao Peoples Democratic Republic
(Lao PDR); Myanmar; Thailand; and Viet Nam.
In particular, the members are committed to efforts
in three priority geographic areas: the GMS NorthSouth
Economic Corridor (NSEC), which has three subcorridors
running between Bangkok and Kunming, Haiphong
and Kunming, and Nanning and Ha Noi; the EastWest
Economic Corridor (EWEC), running between Mawlamyine
in Myanmar and Da Nang in Viet Nam; and the Southern
Economic Corridor (SEC), linking the southern areas of
Thailand, Cambodia, and Viet Nam (see map). The focus
of this summary is the NSEC, which embraces the area
along the main northsouth transport routes that link the
economic hubs in the northern and central areas of GMS.
The ultimate goal in developing the NSEC is to
enhance economic development in the area and
thereby help improve living standards of the people
both in the corridor and elsewhere in the GMS. Various
infrastructure investments are already being undertaken
by GMS countries in the NSEC and more are planned.
The recent completion of more than 200 kilometers of
road between Houayxay and Boten in the Lao PDR,
together with the scheduled completion of a bridge
over the Mekong River between Chiang Khong in
Thailand and Houayxay in 2011, will allow goods to
be transported by road from Bangkok to Kunming in
30 hours. The improved infrastructure, coupled with
4 Logistics Development Study of the GMS NorthSouth Economic Corridor
Note: The NorthSouth Economic Corridor encompasses three subcorridors: KunmingBangkok,
KunmingHaiphong, and NanningHa Noi.
Map Greater Mekong Subregion economic corridors
Logistics Development Study of the GMS NorthSouth Economic Corridor 5
enhanced institutional arrangements (particularly
cross-border cooperation), will accelerate the process of
integrating the NSECs economic structures into the rest
of the GMS and the rest of the world.
Yet to reap the NSECs substantial potential benefts,
the GMS countries involved need to have a clearer
understanding of the opportunities and challenges
that will arise from the economic integration process.
One aspect of such understanding is an
analysis of the NSECs major development
issues, particularly because many countries
in the subregion currently have inadequate
transport infrastructure and weak institutional
arrangements, which are constraining economic
development and integration. Consequently,
at the request of the GMS governments, the
Asian Development Bank (ADB) arranged for a
logistics development study to be undertaken
(Banomyong 2007), as a basis to help identify
the development issues and to lay a foundation
for constructing policy responses. This document is a
summary of that study.
Purpose of the study
The main purpose of the study was to provide a
succinct analysis of logistics in the NSEC on the basis
of data gathered in the feld and to lay a basis for
policy recommendations. This summary presents the
main outlines of the study as follows. The next section,
Corridor development, presents a general discussion
of four types of corridorsfrom the simplest, namely
transport corridors, through multimodal and logistics
corridors, to economic corridors. Statistical matters then
touches on border and transit trade statistics, including
issues in data gathering. Next, Logistics corridor analysis
outlines a logistics analysis of each corridor within the
NSEC, including the methodology adopted, and reveals
the substantial cost and time savings to be made
between 2000 and 2015. The fnal section, Corridor
assessment, determines how advanced the three
subcorridors discussed in this document are.
6 Logistics Development Study of the GMS NorthSouth Economic Corridor
Infrastructure
Logistics
System
Service
Providers
Institutional
Framework
Shippers,
Traders,
Consignees
Source: Banomyong (2007).
Corridor development
Decision makers in most countries have little
understanding of the concept of logistics and how a
logistics policy can be developed. The most common
error seems to be viewing a logistics development
policy as nothing more than a transport investment
infrastructure plan. Logistics is diffcult to defne,
though, because it is an evolving concept. It no longer
refers only to the physical movement of goods (e.g.,
procurement, transport, consolidation, transshipment,
storage, and packaging) but also to the facilitation of
this movement through the processing of documents,
coordination among participants, monitoring of activities,
and fnancing of transactions.
Logistics from a policy perspective therefore requires
an overall approach involving four main elements
(Figure 1): shippers, traders, and consignees; public
and private sector logistics and transport service
providers; transport and communications infrastructure;
and national and provincial institutions, policies, and
Figure 1 Logistics system framework
Logistics Development Study of the GMS NorthSouth Economic Corridor 7
rules (the institutional framework). How they interrelate
determines the performance of the logistics system, as
measured in terms of cost effciency, responsiveness,
reliability, and securityin a word, competitiveness.
These performance indicators refect on both the level
of integration and the services capability within a
logistics system.
The aim of a logistics policy is to enhance this
competitiveness.
A logistics corridor is the third of four stages
of corridor development (Table 1). In its earliest
manifestation, a transport corridor physically links areas,
and is frequently a route between hub centers where
sea, inland water, land, rail, and air transportation
systems converge.
A logistics corridor moves beyond the physical link
and requires a facilitating institutional framework. This
framework is particularly important for helping remove
bottlenecks at border crossings, a common feature in
both transport and logistics corridors (as seen clearly
in the fgures in the section below, Logistics corridor
analysis).
Table 1 Stages of corridor development
Stage
Type of
corridor
Definition
1 Transport Corridor that physically links an area or region
2 Multimodal Corridor that has more than one mode of
transport that can physically link the corridor,
i.e., road and rail
3 Logistics Corridor that not only physically links an area
or a region but also harmonizes the corridors
institutional framework to facilitate efficient flow
and storage of freight, and movement of people
and related information
4 Economic Corridor that attracts investment and generates
economic activity along the less-developed
areas in the corridor; requires physical links and
institutional framework
Source: Banomyong (2007).
8 Logistics Development Study of the GMS NorthSouth Economic Corridor
The ultimate form of corridor, an economic corridor,
does not concentrate economic development in its
large towns. Investment and economic development
are directed to smaller towns and rural areas along
the corridor. This requires harmonization of incentives
among the corridors countries to attract private sector
investment into economic activities in its less-developed
areas. Success depends on the ability to attract
investment, which in turn relies on an infrastructure
and institutional framework that are appropriate. (The
section Corridor assessment, below, analyzes the NSEC
in terms of these four levels.)
Statistical matters
GMS trade data are generally presented in value terms
only, and consistent (that is, harmonized) regional
trade statistics in terms of volume or weight remain,
for now, an unachieved goal. However, some customs
departments in the GMS tabulate transborder fows at
individual crossing points in terms of both value and
volume. This provides an indication of the volume of
regional transborder movement by land. But,
despite a general increase in intra-GMS trade
value, the total is still marginal for most GMS
countries, which trade predominantly with North
America, Northeast Asia, and Europe.
It is also hard to gather data on the true
level of GMS cross-border trade because a large
and probably signifcant shareby its nature
impossible to quantifyis informal, that is, trade
that bypasses appropriate customs procedures.
Formal border trade, conversely, refers to
transactions conducted through appropriate
customs procedures at the border in accordance
with rules, regulations, and agreements of the
governments involved. Where applicable, customs tariffs
are collected.
Logistics Development Study of the GMS NorthSouth Economic Corridor 9
Inconsistencies in trade statistics from different
countries or relevant agencies are also common. There
is clearly a need to adopt a platform to defne and
collect regional and national trade data. Harmonized
trade statistics, providing not only the value but also the
volume of goods fowing within the NSEC, are necessary
to provide policy makers with reliable information to
formulate appropriate policies for boosting trade.
With these caveats, recent intra-GMS trade statistics
are given in Table 2.
Table 2 Trade statistics, million US dollars, calendar years
Exports
From To 2001 2002 2003 2004 2005 2006 2007
Lao PDR Thailand 81.0 85.0 94.3 104.3 204.4 475.5 431.5
Viet Nam 61.8 56.9 55.2 67.5 88.6 109.5 130.8
PRC 6.8 8.8 10.2 11.4 23.2 45.1 74.8
Cambodia Viet Nam 24.5 32.4 39.2 42.4 46.0 75.0 89.6
PRC 16.7 8.3 6.5 12.6 14.2 15.5 45.5
Myanmar Thailand 735.4 831.2 827.0 1,230.3 1,623.0 2,135.7 2,104.9
PRC 122.0 124.5 154.1 187.7 249.5 229.7 325.1
Thailand PRC 2,862.7 3,552.9 5,707.2 7,097.6 9,105.1 11,810.4 14,834.0
Viet Nam PRC 1,417.4 1,518.3 1,883.1 2,899.1 3,228.1 2,259.9 2,850.5
Imports
To From 2001 2002 2003 2004 2005 2006 2007
Lao PDR Thailand 451.7 444.0 501.5 639.5 846.2 1,125.4 1,442.8
PRC 59.9 59.7 108.1 108.8 115.9 185.6 175.6
Viet Nam 70.8 71.2 57.0 75.2 76.1 94.1 112.3
Cambodia Thailand 503.9 238.4 216.0 231.3 290.6 415.0 1,491.1
PRC 86.9 197.8 223.4 341.8 423.5 523.9 915.4
Viet Nam 109.5 98.4 119.2 168.7 181.6 269.9 322.2
PRC Thailand 4,712.8 5,598.5 8,827.1 11,541.6 13,993.7 17,961.7 21,965.8
Myanmar PRC 547.3 797.3 998.7 1,029.2 1,028.4 1,328.0 1,834.1
Thailand 390.5 355.9 483.3 665.4 777.3 837.9 1,054.6
Thailand PRC 3,710.7 4,928.2 6,066.9 8,181.8 11,153.3 13,800.9 16,382.0
Viet Nam PRC 1,606.2 2,158.8 3,138.6 4,595.1 5,899.7 8,215.2 12,383.5
Thailand 792.3 955.2 1,282.2 1,858.6 2,374.1 3,403.2 4,183.1
Source: Statistical Database System, Asian Development Bank (downloaded 17 June 2008).
10 Logistics Development Study of the GMS NorthSouth Economic Corridor
Logistics corridor
analysis
Methodology
To formulate adequate logistics development policies,
a methodology is needed to describe the current
situation in the NSEC. (Box 1 gives a summary view
of current infrastructure characteristics in the GMS.)
Ideally, a logistics system scorecard based on the four
components of a logistics system described above
(infrastructure, institutional framework, traders, and
service providers) would have been prepared and used
as a starting point in terms of the data required for
evaluation purposes.
However, it was impossible in the study to gather all
the necessary data in the
study, and a logistics cost/
distance and time/distance
model was developed,
constructed on the basis of
a simplifed logistics activity
map of specifc products
moving within the NSEC.
The model was adapted
from Beresford and Dubey
(1990), and Banomyong
(2000). This model
describes graphically the
cost and time components
of movement from origin to
destination along different
routes, and illustrates the
delays at borders or other
inspection points up to the
point of destination.
Time spent at border
crossings and transshipment
between transport modes
(or both) is represented
Box 1 Infrastructure characteristics of the
NorthSouth Economic Corridor
Infrastructure in certain segments of the NorthSouth
Economic Corridor is still lacking and needs to be
upgraded to bring all sections up to a similar standard.
The table presents an overall assessment of the
infrastructure.
Table Infrastructure characteristics
Road Port
Inland
water
transport
Airport Railway
Guangxi
(PRC)
Fair/Good Fair Fair Good/Fair Good
Yunnan
(PRC)
Fair/Good Fair Fair Good/Fair Good
Lao PDR Fair/Poor Poor Fair/Poor Poor Not
applicable
Myanmar Poor Poor Fair Poor Fair
Thailand Good Fair Fair Good/Fair Good
Viet Nam Fair/Poor Fair Fair Fair Fair
Source: Banomyong (2007).
Logistics Development Study of the GMS NorthSouth Economic Corridor 11
by a step up the cost curve (see Figures 2, 3, and
4, below). Examples include document fees, transit
charges, and cargo clearance costs. The height of the
step is proportionate to the amount of the charge. In
this regard, bottlenecks at points of transshipment can
be analyzed as part of the overall logistics corridor.
The data used for this graphical model were based
on costs, quotes, or transit time components that were
obtained in interviews with traders, transit and transport
service providers, and government offcials. These data
are not usually publicly available but are of critical
importance for assessing logistics corridor effciency.
The information needed to build the graphical model
includes the origin and destination of the cargo; the full
routing from origin to destination, with an indication
of the places where the cargo is essentially stationary
(such as border crossings and points of intermodal
transfer); mode of transport for each leg; distance
involved for each leg; transit time for each leg (in days
and hours); and costs or quotes for each leg.
The cost data gathered are then plotted against
the distance for each leg of the journey. The fgures
show the relative costs of each leg (or mode, where
applicable), as well as indicate the approximate
proportion of nontransport costs in relation to transport
costs. These data can highlight areas for action by
policy makers.
Similarly, with time plotted against distance, the
relative speed of transit transport for each leg can be
compared, and the bottlenecks at transshipment points
can be identifed. The higher the step, the more likely
the border crossing (or nodal link) is a bottleneck.
BangkokKunming subcorridor
The BangkokKunming subcorridor, primarily Route No. 3
East, is expected to become an important link in the
GMS, functioning as a land-bridge between southern
PRC and other GMS countries, particularly Thailand.
Historically, the overland links between Bangkok and
Kunming have been limited.
From Bangkok, the subcorridor runs north to Chiang Rai,
12 Logistics Development Study of the GMS NorthSouth Economic Corridor
where it splits into three branches (see the map above).
All branches meet again either at, or beyond, Jinghong:
Route No. 3 West (R3W): Chiang RaiMai Sai/
TachilekKengtungMengla/DaluoJinghong;
Via Mekong River: Chiang RaiChiang Saen
Mekong RiverJinghong; and
Route No. 3 East (R3E): Chiang RaiChiang
Khong/HouayxayLouangnamthaBoten/Mohan
(beyond) Jinghong.
The subcorridor then continues through Puer and Yuxi
to Kunming.
The infrastructure characteristics of the Bangkok
Kunming subcorridor are summarized in Table 3.
Most merchants and logistics service providers are
reluctant to use R3W, because of major obstacles in
Myanmar, including political uncertainty, transit fees of
up to 90% of the value of goods transported, and the
quality of the road itself.
The route via the Mekong River has the lowest total
costs but takes the longest time.
With the completion of the stretch of road between
Houayxay and Boten in the Lao PDR this year, R3E
is almost complete. Once the bridge between Chiang
Khong and Houayxay is built, probably in 2011, the
BangkokR3EKunming route is expected to be the
major land route for transportation between
Bangkok and Kunming, overshadowing R3W and the
route via the Mekong River.
Using 2000, 2006, and projected 2015 data,
the panels in Figure 2 illustrate how cost and time
decrease along the three logistics corridors of the
BangkokKunming route.
Costs are projected on 2006 prices with no
allowance for infation; and of course, they did not
predict the recent huge run-up in oil prices. It is
also assumed that the GMS Cross-Border Transport
Agreement, or CBTA, will be operating effectively by
2015. These comments also apply to the Haiphong
Kunming and NanningHa Noi fgures.
The fgure panels show the US dollar costs of moving
1 ton of para rubber from Bangkok to Kunming, by the
three routes (R3W, via the Mekong River, and R3E), in
Logistics Development Study of the GMS NorthSouth Economic Corridor 13
2000, 2006, and 2015. The lines on the cost/distance
charts and the time/distance charts show the given cost
or time at a given distance from Bangkok.
The steps show the high costs entailed in crossing
borders (or transshipping goods). The effciency of a
given corridor is very much dependent on how costly
and how quickly borders can be crossed. The gradual
implementation of the CBTA, which came into force
at end-2003, and of its implementing guidelines, is
expected to play a crucial role in reducing border-
crossing cost and time.
The fgure panels clearly show that the total cost and
time involved in shipping goods between Bangkok and
Kunming fall substantially.
Table 3 Basic characteristics of three BangkokKunming routes
Route Logistics infrastructure R3W
(km)
Via Mekong
River (km)
R3E
(km)
R3W, Via
Mekong
River, R3E
BangkokChiang Rai 4-lane highway 830 830 830
R3W Chiang RaiMai Sai/Tachilek 4-lane highway 60
Mai Sai/TachilekKengtung
Mengla/Daluo
2-lane highway 253
Mengla/DaluoJinghong 2-lane highway 140
JinghongKunming 4- and 6-lane highway 534
Via Mekong
River
Chiang RaiChiang Saen 2-lane highway 60
Chiang SaenJinghong
a
Mekong River and port 360
JinghongKunming 4- and 6-lane highway 534
R3E Chiang RaiChiang Khong 2-lane highway 110
Chiang Khong/Houayxay
Boten/Mohan
2-lane highway 228
Boten/MohanKunming 2-, 4-, and 6-lane
highway
688
1,817 1,784 1,856
Note: Distances take account of all ongoing and planned infrastructure investment projects completed in
2008.
a Jinghong port has been earmarked for passenger transport, while Guanlei port, 7580 km south of
Jinghong, is becoming a dedicated freight terminal.
Source: Banomyong (2007).
14 Logistics Development Study of the GMS NorthSouth Economic Corridor
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Logistics Development Study of the GMS NorthSouth Economic Corridor 15
HaiphongKunming subcorridor
The transport infrastructure in the HaiphongKunming
subcorridor of the NSEC is currently undergoing
rehabilitation and the physical links are expected to be
completed soon. The PRC and Viet Nam have signed
an agreement to establish a one city, two country
arrangement at their border towns at Hekou and
Lao Cai. This is expected to provide the impetus for
enhanced border cooperation between the countries.
The panels in Figure 3 illustrate how cost and time
fall along the HaiphongKunming corridor over the three
years, 2000, 2006, and 2015. The data used in this
section are based on the movement of a laden container
based on freight all-kind rate.
Here too, border crossings are again the biggest
bottleneck initially in the effcient movement of goods,
as shown by the steep steps for 2000 (and 2006 to
a degree), though they are not as pronounced as for
BangkokKunming.
Figure 3 also indicates that the shares of cost
and time of transport in the total gradually increase
a little, as the shares of ports, borders, and transit
generally decrease, once more revealing the importance
of effcient border crossings. This, of course, is in a
context of sharply falling total corridor cost and
time.
NanningHa Noi subcorridor
Most traffc at the border gates involves trading
between Viet Nam and the PRC. Transit trade,
such as reexport activities at Lang Son and
Mong Cai to Thailand and Cambodia, is still very
limited. The four-lane expressway linking Nanning
to Youyiguan has been completed, making it
possible to reach the border within 1.5 hours
from Nanning. New facilities at the border crossing have
been constructed and a new PRC logistics park is being
expanded to serve the potential increase in border
traffc. The panels in Figure 4 illustrates the cost and
time components.
16 Logistics Development Study of the GMS NorthSouth Economic Corridor
Figure 3 Cost and time vs distance, HaiphongKunming,
2000, 2006, 2015
400
100 200 300 400 800 900
Cost
Distance
Haiphong port
$772
$1,579
$1,904
Kunming
2,000
0
2000
600
800
200
1,000
1,200
1,400
1,600
1,800
500 600 700
2006
2015
Ha Noi
Hekou
Lao Cai
Hekou
Lao Cai
Hekou
Lao Cai
20
100 200 300 400 800 900
Time
Distance
Haiphong port
26.5 hours
58 hours
85 hours
Kunming
0
2000
30
40
10
50
60
70
80
90
500 600 700
2006
2015
Ha Noi
Hekou
Lao Cai
Hekou
Lao Cai
Hekou
Lao Cai
Note: Costs, in US dollars, are those related to transporting a laden container, based on freight all-kind
rate, 885 kilometers.
Source: Banomyong (2007).
The data used for this corridor are based on the
movement of a 30-ton full truckload (FTL) of steel
products from Nanning to Ha Noi.
The fgure points to a larger relative drop in cost
and time associated with crossing the border than for
transporting goods.
Corridor assessment
In the logistics analysis of the NSEC, the infrastructure
along the corridor is improving, and should be in place
by 2015. The institutional framework, such as the CBTA,
is also in place but actual implementation is still weak
with regard to trade and transport facilitation measures.
This is refected in delays for export and import as well
as the number of documents required.
Logistics Development Study of the GMS NorthSouth Economic Corridor 17
Figure 4 Cost and time vs distance, NanningHa Noi, 2000, 2006, 2015
400
50 100 150 200 400 450
Cost
Distance
Nanning
$270
$790
$1,080
Ha Noi
0
2000
600
800
200
1,000
1,200
250 300 350
2006
2015
Lang Son
Pingxiang
Lang Son
Pingxiang
Lang Son
Pingxiang
10
50 100 150 200 400 450
Time
Distance
Nanning
c. 8 hours
c. 19 hours
37 hours
Ha Noi
0
2000
15
25
5
35
40
250 300 350
2006
2015
Lang Son
Pingxiang
Lang Son
Pingxiang
Lang Son
Pingxiang
30
20
Note: Costs, in US dollars, are those related to transporting a 30-ton full truckload of steel products,
440 kilometers.
Source: Banomyong (2007).
Border crossings are the weakest link in the
NSEC corridors and special attention must be made
to deal with border issues. Time is essential as the
infrastructure is progressing faster than the institutional
arrangements between countries. This is also a reason
that transit trade is currently minimal relative to border
trade.
The level assessment conducted on the various
subcorridors of the NSEC, based on the proposed
classifcation in Table 1 earlier, shows no level 4
(economic) corridors in place along the NSEC (Tables 4,
5, and 6).
The overall level assessment is based on the
weakest link in the corridor. At present, therefore,
the NSEC is still primarily a transport corridor. Some
logistics corridors exist, but only within a country, not
at GMS level. Thus the corridor continues to forgo vast
potential for attracting investments in employment-
generating economic activities. However, if border
18 Logistics Development Study of the GMS NorthSouth Economic Corridor
crossings are improved, transport corridors along the
NSEC will possibly evolve into logistics corridorsand,
with further progress, eventually transform themselves
into fully fedged economic corridors.
Table 4 Level assessment of the BangkokKunming
subcorridor
From To Level
Bangkok Chiang Rai 3
R3W
Chiang Rai Mae Sai/Tachilek 3
Mae Sai/Tachilek Mengla/Daluo 1
Daluo Kunming 3
Via Mekong River
Chiang Rai Chiang Saen 3
Chiang Saen Jinghong 2
Jinghong Kunming 3
R3E
Chiang Rai Chiang Khong/Houayxay 3
Chiang Khong/Houayxay Boten/Mohan 1
Boten/Mohan Kunming 3
Overall level 1
Source: Banomyong (2007).
Table 5 Level assessment of the HaiphongKunming
subcorridor
From To Level
Haiphong Ha Noi 3
Ha Noi Lao Cai/Hekou 1
Lao Cai/Hekou Kunming 3
Overall level 1
Source: Banomyong (2007).
Logistics Development Study of the GMS NorthSouth Economic Corridor 19
Table 6 Level assessment of the NanningHa Noi
subcorridor
From To Level
Nanning Pingxiang 3
Pingxiang Lang Son 1
Lang Son Ha Noi 3
Overall level 1
Source: Banomyong (2007).
References
Banomyong, R. 2000. Multimodal Transport Corridors in
South East Asia: A Case Study Approach. Ph.D Thesis,
Cardiff Business School, Cardiff University, United
Kingdom.
. 2007. Logistics Development Study of the North
South Economic Corridor. Asian Development Bank,
Manila.
Beresford, A.K.C. and R.C. Dubey. 1990. Handbook on the
Management and Operations of Dry Ports. Document
RDP/LDC/7. UNCTAD, Geneva.
Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550 Metro Manila
Philippines
www.adb.org
Publication Stock No. 101307
ISBN 978-971-561-714-7
About the Asian Development Bank
ADBs vision is an Asia and Pacifc region free of poverty. Its mission is to help
its developing member countries substantially reduce poverty and improve the
quality of life of their people. Despite the regions many successes, it remains
home to two thirds of the worlds poor. Nearly 1.7 billion people in the region
live on $2 or less a day. ADB is committed to reducing poverty through
inclusive economic growth, environmentally sustainable growth, and regional
integration.
Based in Manila, ADB is owned by 67 members, including 48 from the
region. Its main instruments for helping its developing member countries are
policy dialogue, loans, equity investments, guarantees, grants, and technical
assistance. In 2007, it approved $10.1 billion of loans, $673 million of grant
projects, and technical assistance amounting to $243 million.
Printed in the Philippines
As one plank in their strategy for realizing a prosperous, integrated,
and harmonious subregion, the six countries of the Greater Mekong
Subregion are developing a modern transport infrastructure.
The NorthSouth Economic Corridor (NSEC)with its three
subcorridors between Bangkok and Kunming, Haiphong and
Kunming, and Nanning and Ha Noiforms a major element in this
infrastructure.
Using cost and time charts, this document analyzes the likely
benefts generated by the NSEC, with a focus on the split between
the cost and time involved in transportation and in border crossing
and transshipment. It also assesses the degree to which the
NSEC, as it moves away from being purely a transport corridor, is
becoming a fully integrated economic corridor.
ISBN 978-971-561-714-7
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