APEC TRANSPORTATION WORKING GROUP
17TH MEETING, SINGAPORE 27-31 MARCH 2000
together with
APEC COMMITTEE OF TRADE AND INVESTMENT, SUB-COMMITTEE ON
CUSTOMS PROCEDURES
BRUNEI DARUSSALAM, 18 - 20 FEBRUARY 2000
TPT-WG STEERING COMMITTEE ON
MORE COMPETITIVE TRANSPORTATION INDUSTRY (INCLUDING INFRASTRUCTURE)

PROJECT PROPOSAL
INCREASING EFFICIENCY IN MARITIME TRADE

DELEGATION OF AUSTRALIA

APEC TRANSPORTATION WORKING GROUP TOGETHER WITH
THE COMMITTEE ON TRADE AND INDUSTRY, SUB-COMMITTEE ON CUSTOMS PROCEDURES

NEW PROJECT PROPOSAL

01. Name of project: INCREASING EFFICIENCY IN MARITIME TRADE

02. Group responsible Transportation Working Group together with Sub-Committee on Customs Procedures

03. The objectives/justification of the project.

Objectives

The objective of this project is to improve current practices and procedures required for a ship to trade in the South East Asian region by identifying the most efficient practices in relation to customs, immigration, quarantine and port procedures.

Background

The South East Asian area is a focal point for much of the APEC region’s maritime trade. To facilitate the growth and efficiency of maritime trade in this area, it is necessary to ensure that the processes and procedures for customs, immigration, quarantine and port authorities are streamlined and efficient ensuring consistency with existing IMO requirements. There is a need to develop mutual regional understanding of these issues between agencies and between economies to ensure this high volume trade area achieves maximum throughput, safely and efficiently.

Justification

Increasing globalization will result in the increase of sea-borne trade throughout this region within the next century. To ensure that APEC economies can take full advantage of this phenomenon, and to facilitate efficient and safe sea-borne trade, there is a need to deal effectively and consistently with those issues impacting on trade and shipping activities and services in the region.

Economies comply to varying degrees with international standards and treaties. Some have difficulty in meeting minimum international standards, while others have difficulty keeping up with the changes to current standards. Consequently, the development of appropriate and consistent implementation practices for high-throughput shipping lanes and ports is central to the continued facilitation of trade in the region.

Expected Results

The key expected result is the establishment of a contact group to develop a best practice model based on existing IMO implementation requirements and recommendations in the contractor’s report. It is expected that an additional project will be required once a best practice model is identified to implement the model.

The establishment of the contact group will strengthen the cooperative links between APEC economies with similar interests in these issues and explore ways in which existing procedures can be harmonised and innovative practices developed with a view to ensuring compliance is achieved effectively and efficiently.

04. How, briefly, does this project respond to the priorities set by APEC Leaders and Ministers, as evidenced by parts of the APEC Action Agenda including Action Program, work plan, vision statement, and policy statement that relate to this project?

This project identifies the processes and procedures required to trade in the South East Asian region in relation to customs, quarantine, immigration and port procedures and seeks to streamline these to provide more efficient maritime trade in the region.

APEC Leaders

This project is responsive to the trade facilitation priorities set by APEC Leaders stated in New Zealand in 1999. At this meeting Leaders reiterated the benefits of existing trade facilitation programmes and instructed Ministers to give priority to this work in consultation with business and to better communicate the value of APEC’s trade facilitation role. Ministers agreed that "improved competitiveness through ongoing reform is the road to recovery and sustainable growth" and that markets would be strengthened by "improving the quality of regulation and the capacity of regulators to design and implement policies for sustainable growth". This project will strengthen the competitiveness and efficiency of maritime trade in the APEC region through the development of a best practice model coordinating the regulatory requirements for maritime trade.

This project is consistent with the objectives of the APEC Framework for Strengthening Economic Cooperation and Development which is intended to reduce economic disparity among APEC economies, to improve the economic and social well being of people and to achieve sustainable growth. In November 1997 APEC Ministers reviewed progress achieved within the Framework and recognised that "… an efficient, safe and integrated regional transportation system is critical to support growth."

This project will, through identification of processes and shared expertise of the contact group, significantly assist participating economies in creating the circumstances in which sea-borne trade can operate most effectively.

APEC Transportation Ministers

At their meeting in June 1997 in Victoria, Canada, APEC Transportation Ministers affirmed "… that transportation safety and security in the region must remain one of the highest priorities of the Transportation Working Group". The meeting also recognised the value and importance of human resource development in achieving this objective. This project will assist those responsible for implementing regulatory requirements in the South East Asian region to achieve maximum efficiency for maritime trade and compliance with international obligations.

APEC Transportation Working Group

Transportation Ministers directed the TPT WG to "… establish an Experts Group on Maritime Safety to address maritime safety concerns in the Region" and urged economies to work closely with international organisations having competence in the field, such as the IMO, to develop programs and mechanisms to promote the implementation of, and compliance with, existing international rules and standards adopted by these organisations."

05. How the project contributes to APEC Trade and Investment Liberalisation and Facilitation

This project supports the Osaka Action Agenda by improving efficiencies in maritime trade which will establish circumstances in which business will be inclined to invest. The project also supports the objective of economic and technical cooperation.

Identification of processes and procedures required for maritime trade in the area and the establishment of a contact group to develop a best practice model will have a positive impact on:

• Maritime safety agencies: As efficiencies in service delivery are sustained in the region, the cost of overall administration should decline allowing the reallocation of resources to high priority areas;

• Shipowners: With consistency of approach to customs, immigration controls, port State control inspections and policing of adjacent waterways for illegal activity, shipowners will be encouraged to trade in the region thus broadening competition;

• Ocean industries: The institution of world standard amelioration methods for the marine environment will significantly benefit the tourism and fisheries industries;

• Insurance companies: As shipping activities within the region become safer and more predictable, reductions in insurance claims should result in an overall reduction in insurance premiums for vessels operating in the region;

• Importers and exporters: The benefits for importers and exporters will be accrued through greater confidence and reliability of shipping services and greater competition in the provision of services; and

• Consumers and the community: The benefits from long-term competitive shipping for consumers will be similar to those for importers and exporters with respect to greater reliability of shipping services.

LINKAGES

06. The kinds of institutions in member economies intended to benefit from the results of this project. Highlight the direct benefits to the institutions, the types of businesses in member economies which will benefit from the results of the project and what the direct benefits are.

The benefits will be widespread and will accrue to institutions responsible for various aspects of shipping, including the customs, immigration, navy, coastguard, pollution response and maritime safety authorities. Added to the institutional beneficiaries, businesses including shippers, shipping operators, importers, exporters and a range of maritime support industries will benefit through increased efficiencies produced through adoption of identification of a best practice model.

The benefits of this project include both the policy and administration of the roles and functions of the various agencies and a unique opportunity to integrate like activities.

07. How the participation of the business/private sector and non-governmental institutions has been sought or will be sought. Illustrate how the business/private sector are involved in the planning and delivery of the project and whether any other APEC fora have been consulted.

Consultation will take place with shippers, shipping firms and ship operators to determine major issues faced in trading within the region relating to customs, immigration, quarantine and port State control. This project is a joint project with the Sub-Committee on Customs Procedures.

In the event that this project is successful, expressions of interest through the approved APEC tender process will be called and a successful applicant appointed to deliver the project.

08. How this project will add "APEC value" (as to the potential benefits of implementing projects) in the context of other work that might have been done elsewhere in the same field.

This project will assist awareness and the promulgation of International Maritime Organization (IMO) Conventions together with other relevant treaties governing customs and immigration issues.

The objectives of this project are to identify processes and procedures necessary for maritime trade with a view to developing a best practice model. The establishment of a contact group to discuss these issues will promote awareness, cooperation and consistency in activities arising from maritime trade in the South East Asian region.

Specifically, this project will:

• implement APEC transportation policy objectives;

• promote the recognition and implementation of, and compliance with, the Osaka Action Agenda and the Manila Action Plan for APEC;

• contribute to the efficiency, safety, good management and good government of maritime transport;

• promote adoption of international best practice with respect to adoption of procedures associated with international treaties;

• contribute to the preservation of the marine environment and the safety, efficiency and predicability of shipping activity; and

• assist sustainable growth and development of the Asia-Pacific region, together with safeguarding the common good of its people and their role in international maritime affairs.

09. An indication of how the project might contribute to related projects or activities in APEC or elsewhere.

This projects complements:

• IMO efforts to improve compliance methodologies with their maritime treaties including ISM Code, STCW Convention, FAL Convention and other related issues such as compulsory insurance, piracy, people smuggling, environmental responsibility and moves to strengthen flag State compliance;

• APEC TPT-WG project proposals relating to the transparency of shipping policy and practices; and

• Objectives of the 1996 Strategy to Address Sustainability of the Marine Environment and the 1997 APEC Action Plan for Sustainability of the Marine Environment developed by the APEC Marine Resource Conservation Working Group which respond to the regional need for sustainable management of marine resources and the reduction and control of marine pollution.

10. Describe the deliverables of the project and demonstrate how it will meet the needs of targeted beneficiaries.

This project will identify issues faced by participating economies arising from safety and environment issues from ships visiting ports, customs, quarantine, piracy, illegal migration, and smuggling in coastal waters. Emphasis will be placed on identifying those issues where the processes and procedures regulating these activities cause significant delay for maritime trade for ships visiting APEC economies. Once completed, a list of recommendations will then be developed as a basis for consideration by the contact group when developing a streamlined best practice model which will:

• assist the flow of information about the maritime trade issues between participating countries;

• strengthen the cooperative and information links between APEC economies in a strategically important area;

• provide an opportunity to enhance a range of expertise relating to the maritime industry in APEC economies;

• establish a contact group that will become a mechanism providing considerable benefit to all participating economies;

• improve regional understanding of the issues and of how to deal with them through mutual cooperation and;

• offer a model structure or process for dealing with operational issues which will complement any existing means of implementing appropriate international treaties.

METHODOLOGY

11. A concise description of the project’s methodology.

The objective of this project is to identify the processes and procedures required for a ship to trade in the South East Asian region with a view to streamlining these to develop a best practice model.

The project envisages a methodology along the following lines:

Task 1

• identify relevant practices and procedures dealt with in IMO’s Maritime Safety Committee (MSC), Maritime Environment Protection Committee (MEPC), Legal Committee and Facilitation Committee.

• consult with shippers, shipping firms and ship operators in the Asia-Pacific region to determine major issues faced in trading within the region relating to customs, immigration, quarantine, and port State control.

Task 2

• Prepare a report that identifies existing processes and procedures with recommendations as to how these could be made more efficient.

Task 3

• Identify relevant contacts within each of the agencies of each participating APEC economy. Formation of a contact group to discuss and identify mechanisms for streamlining and improving the efficiency of current processes and procedures required for a ship to trade building on the recommendations identified by the Contractor.

• With the facilitation of the contractor, the contact group will identify a best practice model and contribute their findings to the contractor’s final report.

Task 4

• Submission of a final report to the TPT-WG describing the best practice model.

12. A concise description of the project by component, with its associated outputs clearly specified.

Output of Task 1

• Results of research identifying existing IMO requirements as articulated in several treaties dealt with by various IMO Committees (Note: this output will be self funded by the project sponsor) and the mechanisms through which these are currently implemented.

• Results of research obtained from shippers, ship owner/operator and a needs analysis visit by trainers to representative economies indicating an interest in participating in the project. Hold discussions with local officials and businesses in order to identify possible mechanisms for increasing the efficiency of maritime trade through prioritisation of those activities and issues of greatest concern;

Output Task 2

• Report identifying the current processes and procedures required for a ship to trade in the South East Asian region with recommendations as to how this can be streamlined and made more efficient.

Output Task 3

• Formation of a contact group who will discuss and consider the recommendations of the contractor as to how maritime trade can be made more efficient through streamlining current practices and procedures. The contact group through facilitation by the contractor will identify a best practice model that will be included in the contractor’s final report.

Output task 4

• Final report of contractor with preliminary recommendations on implementation of the best practice model.

13. A timetable for the accomplishment of each component in (12).

Once approval is given, the project will take approximately eight months to implement. Although delivery of the project will depend on the identification and availability of relevant contacts from each agency to discuss and identify a best practice model.

July 2001 identification of existing processes and procedures;

Aug 2001 identification of participants for the contact group;

Oct 2001 interim report on existing processes and procedures and recommendations for improvement;

Nov 2001 consideration of report by contact group ;

Jan 2001 identification of and report on best practice model; and

March 2002 consideration of outcomes of the project.

project. Please indicate the names of member economies participating in each component of the project as set out in (12).

It is anticipated that at least ten separate economies could participate in this project each of which would identify appropriate representatives from agencies to participate in the contact group. It is expected that participants will be from economies which have sea-borne trade in the South East Asian region. However, contribution by other APEC economies as to information and ideas to increase maritime efficiency in the region would be welcomed.

BUDGET

15. An itemized budget for the project, including provision for any publication and dissemination of project results, in the prescribed format is attached

16. A timetable for the drawdown of APEC funding requested for the project, including details of any advance payment or instalment payment requested and justifications for such requests.

The drawdown will be timed as to enable implementation of each component.

17. Details of any request for waiver or exception from the normal APEC financial rules with justification.

There are no requirements for waiver or exception.

DISSEMINATION OF PROJECT OUTPUT

18. A plan for publication and dissemination of the results of the project including:

A comprehensive final report, including identification of processes and procedures, recommendations, identification and establishment of a contact group and their consideration of the recommendations and identification of the best practice model will be prepared and published.

The report will be placed on the TPT-WG website. It will also be made available to the IMO Secretariat.

Economies will be encouraged to distribute the final report to participating and related industry organisations via the Internet. Copies of the final report will be available in electronic format for ease of distribution.

Assessability of results for the targeted audience

The targeted audience are participating APEC member economies which have maritime trade interests in the South East Asian region. Results will be measured in terms of the extent existing procedures can be made more efficient through recommendations identified by the Contractor and the best practice model developed by the contact group.

Publicity plan

Member economies are expected to determine the publicity given to the final report and recommendations within their economies.

ASSESSMENT OF PROJECT

19. How the project proponent will assess whether he has met the criteria for APEC projects and how he will measure the impact of the project on expected beneficiaries.

The outcomes of this project will be assessed in terms of improved efficiency of maritime trade within participating APEC economies.

The reduction of maritime incidents and consistency of approach in customs, immigration, quarantine and port State control will create the circumstances conducive to trade and investment indicating whether the project has successfully met APEC criteria for projects.

B. UNDERTAKING BY THE WORKING GROUP/COMMITTEE

The Transportation Working Group undertakes that, working closely with the APEC Secretariat, due care has been taken that:

1. the line items for the APEC-funded parts of the budget for this project are within SOM-approved guidelines;
2. the costs for line items for APEC-funded parts of the budget of this project are justifiable and;

with regard to the dissemination of results from the project, due care will be taken that:

1. Comprehensive quality control and professional editing, including factual precision and thoroughness, to ensure that the publication or other dissemination media will be understood by and useful/ beneficial to the target audience, will be undertaken before submission of the publication to the printer of the APEC Secretariat; and
2. any output will be consistent with APEC’s publication policy.

The project has been reviewed, approved and prioritized by my Working Group before it is submitted to the BMC for review.

________________________________
Signature

______________________________________________
Name of Lead Shepherd or Chair (Please Print)

_________________________________
Date and Place

Attachment

ITEMIZED BUDGET FOR FINANCIAL YEAR 2001

(Please tick .)
This project

    a. is a seminar, symposium or short-term training course

b. is a survey or analysis and research project

c. is neither a nor b above but involves the provision of equipment

This is an application for funding under the [    ] Operational Account ) please tick one
                                                          [] TILF Special Account ) box only

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