Coastal Shipping in Thailand and Subregional Cooperation Ca Capacit ity Bu Build ildin ing Work rkshop on St Strengthenin ing Transport Co Connectiv ivit ity among CL CLMV-T 8-9 October 2019, Vientiane, Lao PDR by Marine Department Ministry of Transport Thailand
Geographical Characteristics • Length of coastline : 3,148.23 km • Cover 23 coastal provinces in eastern and southern regions • Length of coastline along the Gulf of Thailand : 2,055.18 km • Length of the Andaman coastline : 1,093.05 km
Thailand’s Sea Areas Type of Sea Areas Areas (Sq.Km.) Gulf of Thailand coastline Andaman coastline and near Straits of Malacca Internal waters 54,103.47 7,850.57 Territorial waters 29,344.36 23,723.86 Contiguous zone 23,909.18 13,604.04 Exclusive economic zone (EEZ) 88193.97 75,633.65 Joint Thailand-Malaysia 7,125.22 development area (part of EEZ) Total areas 202,676.20 120,812.12 Total Thailand’s sea areas 323,488.32
Location of Coastal Ports in Thailand
Coastal Shipping Routes in Thailand
Routes and amount of Domestic Coastal and Inland Water Transportation
Relevant authorities • Ministry of Transport (MOT) / Office of Transport and Traffic Policy and Planning (OTP) : Policy development (now promoting the use of rail and water transport) • Marine Department (MD) : infrastructure development (port development, channel dredging development and maintenance), port safety and security, port licensing, port clearance • Department of Treasury : landlord, port ownership and management • Port Authority of Thailand (PAT) : Ranong Port, Klong Yai Port
Relevant Laws and Regulations • Thai Vessels Act, B.E. 2481 (1938) • Definition of “trading in Thai waters” reserves domestic coastal shipping (transportation of cargo between two points in Thai waters) for registered Thai vessels (cabotage). • Section 7 stipulates that only registered Thai vessels with at least 70% of Thai equity (for domestic shipping) with 100 per cent Thai national crew on board and registered Thai vessels with at least 51% of Thai equity (for international shipping) can do “trading in Thai waters” • Section 47 stipulates that foreign registered vessels can be allowed to do “trading in Thai waters” if (1) international agreements or treaties signed by Thailand agreed to do so, and (2) it is proved that certain type of Thai vessels is not sufficient and will adversely affect the country’s economy (this will be approved by the Minister of Transport case by case for a period of one year).
Recent Study on Coastal Shipping • Office of Transport and Traffic Policy and Planning (OTP) conducted a a Study on Upgrading Thailand’s Coastal Transport Service and Infrastructure System Efficiency in 2016 • Problems found: • Insufficient depth of water channels • Limited areas for coastal port construction • Protest by local communities due to environmental concern • Lack of sophisticated port facilities and equipment due to short period of concession • Lack of hinterland and supported industries • Lack of efficient inland transport linkages
Recent Study on Coastal Shipping (cont.) • Recommendations: • Port infrastructure development and management approach (PPP) • Promotional measures and incentives to divert from road transport to coastal shipping • Develop hinterland and supported industries • Improve inland transport linkages • Improve water channels by sub-contract to private sector • Provide information on benefits and advantages of coastal port development to local community • Request the Department of Treasury to extend the concession period to allow private port operators to invest in modern port equipment and facilities
Other Issues and Challenges of Domestic Coastal Shipping in Thailand • Cargo owners / consignees / logistics operators prefer road transport to coastal shipping due to the advantage of door-to-door services and to avoid double handling and incentives/subsidy for cargo owners to divert from road transport to coastal shipping. • Marine Department vs Department of Treasury on different port management approach. • Ranong Port has been underutilized due to unfavorable geographical conditions. • Customs Department plans to introduce E-Coasting Trading System to facilitate Thai vessels engaged in domestic coastal shipping to report cargo declaration to the Department by electronic system using NSW gateway.
Subregional Cooperation on Coastal Shipping Development
Background of TCV Coastal Shipping • In 2014 Thai and Viet Nam Prime Ministers agreed to promote coastal shipping along the eastern region of Thailand to the south of Viet Nam by utilizing small and medium-sized ports . • Cambodia was invited to join the coastal shipping as the coastal route also passes through its southern region with some potential coastal ports. • The Tripartite Task Force (TTF) on TCV Coastal Shipping was established in 2015.
Tripartite Task Force on Coastal Shipping Development (TCV TTF-CSD) • 1 st Thailand-Cambodia-Viet Nam Tripartite Task Force on Coastal Shipping Development (TCV TTF-CSD) Meeting was held in March 2016 in Bangkok, Thailand. • 2 nd TCV TTF-CSD Meeting was held in November 2017 in Hanoi, Viet Nam. • 3rd TCV TTF-CSD Meeting was held in April 2019 in Phnom Penh. • 4 th TCV TTF-CSD Meeting was held in September 2019 in Bangkok, Thailand. • 5 th TCV TTF-CSD Meeting will be held in March 2020 in Viet Nam (HCMC/Phu Quoc?).
Outcomes of 3 th TCV TTF-CSD Meeting • TCV considered draft Agreement prepared by Cambodia, based on Viet Nam’s draft MoU. • Due to time constraints, the Meeting considered only first 9 Articles with some were pending.
Contents of Draft CSD Agreement • Chapter I : General Provision • Chapter II : Service Area, Ports and Terminal, Vessel Navigation • Purpose • Service Area • Scope • Ports or Terminals • Definition of Terms • Cabotage • Documentations • Pilotage • Crew Members • Assistance to Vessels in Distress • Tariff • Import Taxes and Duties • Criminal Jurisdiction • Facilitation
Contents of Draft CSD Agreement • Chapter III : Technical Management • Chapter V : Settlement of Disputes of Designated Coastal Service Area • Settlement of Disputes • Maintenance of Designated Coastal Service Area and Aids to Navigation • Chapter VI : Final Provisions • Cooperation in the Maintenance and • Entry into Force, Validity and Improvement Works and Aids to Amendment Navigation • Conformity with National Law • Prohibition to Impair Navigability and • Suspension of the Agreement Obligation to Remove Obstacles • Relationship with Other International • Chapter IV : Institutional Framework Instruments • Tripartite Coastal Shipping Working Group
Contents of Draft CSD Agreement • List of Annexes • Annex I – Designated Coastal Service Area • Annex II – Designated Ports / Terminals • Annex III – Documents and Guidelines for the Safety, Environmental Protection as well as other documents • Annex IV – Crew Documents / Professional Competency of Crew Member
Outcomes of 4 th TCV TTF-CSD Meeting • Briefing on the work progress of CVTEC • Consideration of Draft Coastal Shipping Agreement (CSA) (first-round completion) with some pending issues. • Consideration of Draft Guidelines for Safety Standards for cargo Vessel (need further discussion) • Consideration of Draft Guidelines on Technical Regulations on Coastal Passenger Ships (need further elaboration)
Proposed Agenda for 5 th TCV TTF-CSD • Consideration of pending Articles of the Draft CSA • Draft Guidelines on Safety Standards foe Cargo and Passenger Vessels (Annex 3) • Crew Documents / Professional Competency of Crew Member • License to operate coastal shipping on the designated coastal service area • Designated ports or Terminals (Annex 2)
Role of Private Sector • The Cambodia-Vietnam-Thailand Economic Corridor Cooperation Conference (CVTEC) was established with the inauguration of CVTEC Meeting on 16-19 August 2018 in Phu Quoc, Viet Nam, and Sihanoukville, Cambodia. • Private sectors from coastal provinces in Cambodia and Viet Nam agree to promote southern maritime connectivity corridor • Thai CVTEC Meeting was held by the Thai Chamber of Commerce on 8 October 2018. • 1 st CVTEC Meeting was held on 15 November 2018 in Chonburi, Thailand with an MOU signing ceremony between private sectors of Cambodia and Thailand.
Private Sector Undertakings • Technical visit on CVT coastal routes and CVTEC Meeting between Cambodia and Thailand on 10-14 May 2019 • Technical visit on the coastal routes among CVT : Traad (T) – Koh Kong (C) – Sihanoukville (C) – Kampot (C) – Phu Quock (V) – Kian Yang (V) – Can Tho (V) – Ho Chi Minh (V)
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