TRANSPORT SECTOR: BACKBONE OF EWEC

EWEC

The transport sector is the backbone for trade in the EWEC. Therefore there is a need to support it, said Mr. Sumit Pokhrel, the Energy and Climate Change Coordinator from GMS-EOC, ADB, at a workshop held at the Mekong Institute (MI), Khon Kaen, Thailand, last Friday, October 7, 2011. 

The East West Economic Corridor (EWEC), is the most established corridor out of the four that are operational in the Greater Mekong Sub-region (GMS). The GMS Economic Program, under the Asian Development Bank (ADB), set up these economic corridors to enhance the cooperation and integration of the region. The EWEC runs from East to West, namely through Myanmar, Thailand, Laos and ends in Vietnam. Across this corridor, trade is open, yet there are still many areas that need upliftment, in order to maximize this project. 

The transport sector is one of these areas. Since most of the trade across this region runs in-land, issues regarding freight and logistics are affecting its business potential. To address this, the ADB and MI have conducted a survey along the EWEC in Thailand, Laos and Viet Nam, to know about the business situation and fuel costs of road freight businesses. To validate the searches and stimulate further discussion, they also organized a 1-day consultative workshop on EWEC Freight and Logistics Energy Efficiency, wherein Government Agencies, Logistic Companies and Associations from Laos, Thailand and Vietnam, as well as Clean Air Initiative-Asia, Manila, were in attendance. The survey showed that more than 70% of companies change their vehicles every 6-10 years. Also, 40-60% of the operating costs of the companies were on fuel alone. Fleet and vehicle upgrade is a major barrier to fuel efficiency, and the causes of this, as identified in the workshop, are the access to loans and credit, high interest rates thereof, lack of information on investment, driver quality and behavior, and technological barriers, to name a few. Other factors to fuel inefficiency are empty running, trade imbalances, and inefficient border procedures causing delays and double-handling. The recommendations were for the government and associations to expand the policies on trucks, provide market information, build better infrastructure, and minimize empty running through networks. Also, they should make available decent credit opportunities, provide technical training to drivers, and rationalize tariffs, etc. Companies, at their end, should seek partnerships, available credit options, and technological advancements to upgrade their fleets. While discussing the international companies view on this issue, Mr. John Quarmby, from the GMS Business Forum pointed out that multi-national companies dont worry about fuel cost too much, all they need is the borders to run smoothly. Border crossing delays and border opening times are major issues to them, therefore there is a pressing need for standardization in the EWEC as a whole.

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Mrs. Guohua Liu

Director, Sustainable Energy & Environment (SEE) Department

Mrs. Liu Guohua is the Director of the Sustainable Energy and Environment Department at the Mekong Institute. Prior to this role, she worked in the Department of International Economic Affairs at the Ministry of Foreign Affairs of China, where she played a key role in shaping and implementing China’s cooperation strategies with UN development agencies. During this time, Mrs. Liu was actively involved in advancing initiatives related to the Sustainable Development Goals (SDGs), with a focus on climate change and green development. Additionally, she contributed to the evaluation of projects funded by various Chinese initiatives, such as the Global Development and South-South Cooperation Fund, Lancang-Mekong Cooperation Special Fund, etc.

In addition to her work in the Department of International Economic Affairs, Mrs. Liu has an extensive diplomatic background. She spent 7 years in the Department of African Affairs, followed by a 4-year tenure at the Chinese Embassy in Lao PDR, where she gained deep expertise in both Southeast Asian and African affairs. These diverse experiences have played a crucial role in shaping her approach to sustainable development and international collaboration, particularly in building regional partnerships and tackling global challenges like climate change.

She holds a Master’s degree in Economics, with a specialization in Finance, from the Central University of Finance and Economics, and a Bachelor’s degree in Economics, specializing in International Economics and Trade, from the Shanghai University of International Business and Economics.