A recent study, one among a galaxy of studies on the South Asian transportation, shows that if inland connectivity in the region is developed, Sri Lanka could play the role of the region’s maritime hub, and all countries stood to gain. This is according to a working paper published by the Research and Information System for Developing Countries (RIS) of India, titled ‘Restoring Afghanistan-Pakistan-India-Bangladesh-Myanmar (APIBM) Corridor: Towards a New Silk Route in Asia. Prabir De, Fellow, RIS, made this observation at the First South Asia Economic Summit in Colombo last week. He said that 74 percent of the SAARC region’s intra-regional trade potential is yet to be realized. "In 2006 intra-regional trade amounted to US$ 10.48 billion whereas the potential is estimated at US$ 40 billion," De said. This is attributed to high trade barriers, tariff and non-tariff, poor transportation links, inadequate trade facilitation links (measure that would reduce or eliminate non-tariff barriers) and the lack of supply capabilities of the least developed countries of the region. "In Asia, transport costs outweigh tariffs in the region. Fuel surcharges on sea freight increased from US$ 455 in January 2007 to US$ 1,130 in July 2008 and it continues to rise, hurting manufacturers in the developing world. "South Asian countries are paying more towards trade transportation costs compared to custom tariffs," he said. Transport Policy Advisor Bangladesh Planning Commission, said that according to the SAARC Regional Multimodal Transport Study (SRMTS), 10 sea ports had been indentified for priority attention, with Colombo identified as the hub port for the region. The First South Asia Summit identified the need to improve custom procedure in the region and reduce administrative barriers in ports and provide land locked countries and lagging regions with easy access to ports. However, developing a regional inland transportation network has to overcome the intelligence concerns of each country, which has led to the non-implementation of proposals in the SRMTS report, commissioned by the New Delhi SAARC Leaders’ Summit in 2004. However, the South Asia Economic Summit passed a declaration that a report will be prepared on the summits progress in terms of influencing policies with their academic findings by its next installment in India next year. Transport connectivity is vital to lift the least developed countries and lagging regions out of poverty. While South Asia is said to be one of the fastest growing regions in the world, the growth is not inclusive and 40 percent of the world’s poor call South Asia their home. |
