13^th Transportation Working Group Meeting

Mexico City, April 20-24, 1998
Agenda Item 6 - TPT/13/PLEN/6/SC/CT
I. Plenary Session
First meeting of Steering Committee on More Competitive
Transportation Industry (including Infrastructure)

Held on April 22, 1998

I. Background and Information

At the 12^th TPT-WG, it was decided that in the future TPT meetings should be two days of experts and subgroup meetings with one day of steering committee meetings. The first Steering Committee Meeting on More Competitive Transportation Industry(MCTI) was held on April 22, 1998 in Mexico City.

Participating Economies

The meeting was chaired by Korea as Coordinator, and was also attended by Australia; Indonesia; Japan; Singapore and the U.S. as core members of the Steering Committee. Other economies that attended included Canada; Chile; People's Republic of China; Hong Kong,China; Malaysia; Mexico; New Zealand; Philippines; Thailand; and Chinese Taipei.

Projects completed since last TPT-WG

The following projects were completed since the 12^th TPT-WG:

1. Air Services Group
2. Road Transport Harmonization Project- Phase III

MCTI Steering Committee responsibilities and strategies

The MCTI Steering Committee agreed with following Terms of Reference for Steering Committee agreed by member Economies since the 12^th TPT-WG meeting. Responsibilities of the MCTI Steering Committee would be to:

• ensure that TPT projects under that committee's purview meet overall APEC and TPT goals;

• develop and propose new projects as appropriate to meet APEC and TPT goals;

• review the status of each project handled by the steering committee to assess and ensure progress, including inter-sessional communication with lead Economies;

• evaluate projects to determine those projects that could or should be terminated or combined with other TPT projects to rationalize and better coordinate TPT work;

• determine those projects that need or require APEC funding and make recommendations with respect to their priorization for considerations by the TPT;

• ensure that all project budget proposals meet the TPT "new project proposal guidelines"; and

• encourage industry participation in TPT meeting and projects.

II. Ongoing Projects-Next Steps

Electronic Commerce (Australia)

Australia presented a progress report on the EDI Commercial Messages Project. The Steering Committee noted a report on the project would be presented at the 14^th TPT-WG meeting. Economies were encouraged to update the EDI contact list attached to TPT 13/SC/CT/4.1.

In Vancouver in November 1997, APEC Leaders directed Ministers to undertake a work program on electronic commerce, and to report to Leaders in Kuala Lumpur in November 1998. Senior officials established the SOM Electronic Commerce Task Force in February 1998 to progress this Leader磗 initiative. In response to this development in electronic commerce, Australia prepared the paper titled Proposed Contribution to SOM Electronic Task Force Program (TPT/13/SC/CT/4.1). In summary, Australia proposed the following initiatives as a contribution by the TPT-WG to the SOM Electronic Commerce Task Force work program

• Agreement to develop action priorities for member Economies with a defined timetable taking into account the needs of member Economies,

• Submission of an issues paper to the Task Force on barriers to paperless trading,

• Extension of the current commercial messages trials projects to a wider range of businesses through a project proposal submitted by Australia,

• Establishment of a TPT-WG website,

• Giving priority to human resources development through the Human Resources Steering Committee to equip businesses to use electronic commerce and explore the opportunities for the internet based delivery of training.

The Steering Committee agreed that the TPT-WG make a contribution to the SOM Electronic Commerce Task Force including:

1. The development of action priorities in relation to electronic commerce using the collective action plan approach used by the SSCP as the model to develop these action priorities. Economies should also provide information in response to the three questions on page 5 of TPT 13/SC/CT/4.1 to Australia by June 1, 1998, Australia will develop a draft action priorities document for circulation before the 14^th TPT-WG meeting. The 14^th TPT-WG meeting should consider the draft action priorities document.
   
2. Establishment of a TPT-WG website. The following actions are agreed to progress the development of the website:

• there should only be one TPT-WG website

• a TPT-WG website should be developed and trialed for the 14^th TPT-WG meeting

• a small group including delegates responsible for other website proposals (the Intermodal Task Force, Intelligent Transport Systems and the US project for a TPT page) should work inter-sessionally to design, develop and implement the website for the 14^th meeting,

• from the Electronic Commerce meeting, delegates from Canada, Korea, Chile and Australia would participate in that group

• the small group should decide which economy is to develop and manage the website and then work with that economy to design and implement the website noting that it is important for Korea as host economy for the next meeting to be comfortable with the arrangements being made as they affect the next meeting.

3. Submit an issues paper on paperless trading to the SOM Task Force on Electronic Commerce as at Appendix C to TPT-WG13/SC/CT/4.1.
   
4. The Australian Project proposal to assist the implementation of electronic commerce for commercial messages to go forward as a TPT-WG project subject to consideration of the project by the Budget Advisory Committee.
   
5. That Australia represent the TPT Working Group at the SOM Task Force on Electronic Commerce.
   
6. Make a statement to the Task Force setting out its Agreement to make the contribution to the Electronic Commerce Work program in the form at Appendix D to TPT13/SC/CT/4.1.

Intermodal Task Force (U.S.A.)

At the 11^th TPT-WG, the Group approved the Congestion Points Study Steering Committee磗 recommendation to establish an Intermodal Task Force.

The inaugural meeting of the APEC Intermodal Task Force developed the action plan which was approved by TPT at the 12^th TPT-WG. The seven high priority tasks of the action program are:

• Objective #1, Task 1 - Identify key findings of the Congestion Points Study (lead economy: Japan);

• Objective #1, Task 2 - Identify obstacles and potential solutions (lead economy Japan);

• Objective #2, Task 1 - Establish an APEC intermodal pilot project program (U.S.A.);

• Objective #3 Task 2 - Sponsor, in cooperation with regularly-scheduled activities of other APEC bodies a series of activities/fora addressing integrated intermodal transportation planning, involving public and private sector planners from APEC Economies (U.S.A.);

• Objective #5, Task 1 - Utilizing the APEC homepage, create an interactive website and LISTERV to share and high light information on technologies and practices facilitating inter modal transportation and promoting their use (Indonesia);

• Objective #6, Task 1 - Identify skills sets which are needed (Indonesia),

• Objective #6, Task 3 - Encourage the host of the third APEC Transportation Ministerial Meeting to conduct a Youth Forum focused on human resources development for intermodal transportation practiced and technologies (Canada).

At the Intermodal Task Force meeting at the 13^th TPT-WG, the delegate from each of the lead Economies for these high-priority tasks provided a status report on the progress that has been made since the last meeting in Chinese Taipei.

Four presentations were made at the meeting. Mr. John Kasarda of the U. S. shared information on an innovative planning strategy for logistics management and electronic commerce in developing air freight intermodal facilities known as "Global TransParks." A customs facilitation project is underway at the Global TransPark facilities in the APEC Economies of the Philippines, Thailand, and the United States. The need for improved institutional and regulatory processes was highlighted as another key factor in the Congestion Points Study, and the offer by Global TransPark officials to identify these processes in the aforementioned Economies will help to advance a better understanding of these processes by all APEC member Economies.

Through coordinated planning at and across all levels of government, the use of state-of-the-art electronic data interchange, innovative financing, public-private partnerships, and the development of road and rail links to the air freight facilities, Global TransParks exemplify an intermodal "best practice". The progress of this project will be reported and shared at subsequent meetings of the ITF.

The second presenter, Dr. Jess Browning of the University of Washington, proposed an educational seminar on intermodalism. He described a full day of activities and sessions that could be undertaken to share information and expertise in moving international cargo by different modes and through different Economies in the APEC region.

Ms. Joan Yim of Parsons Brinckerhoff (PB) provided an overview of a project underway to develop a strategy for handling international and domestic container traffic by rail in Thailand. Building upon the results of the study to be completed in July, PB is proposing to identify low-cost, practical solutions to problems affecting the efficiency of the port-rail link between the Port of Laem Chabang and the inland container distribution facility at Lat Krabang, Thailand. The project will focus on "Best Practices" from the Congestion Points Study, and will develop a program management plan for the intermodal system. In addition, it will identify a process to improve government coordination of infrastructure development, and demonstrate at least one technology to improve operational efficiency. Additional information will be shared with the ITF at the interim meeting.

The fourth and final presentation was made by Mr. Karl Westby of the Washington State Department of Transportation in the United States. His proposal for a systems analysis: "Transportation Shipping, Harmonization and Integration Planning Project", hereby referred to by the acronym "TSHIP" seeks to develop a model for assessing the costs and benefits of making intermodal improvements. This tool will be especially useful in determining the best allocation of scarce resources.

TSHIP would entail a demonstration project with partners at the Ports of Seattle and Tacoma, the local areas of Auburn/Kent Valley in the State of Washington, and the areas bordering Canada in the Pacific Northwest. Specifically, a methodology would be developed using transportation and economic data. The output of this modeling exercise would demonstrate various options for intermodal infrastructure investments, and the costs, benefits, and potential impacts associated with these options.

This tool and methodology could be used by other APEC Economies for institutional system analyses and cost/benefit analyses. The requested amount of $40,000 (U.S.$) represents approximately 13 percent of the project's total costs. A number of other public and private partners are contributing the majority of funding for the project.

With approval from the Steering Committee and the APEC TPT, a budget proposal would be made to the BAC for consideration at the July, 1998 meeting. Mr. Jos?Barolas of the APEC Secretariat provided an overview of the procedure and process for submitting a budgetary proposal to the BAC.

Finally, Mr. Kavanaugh proposed an interim ITF meeting to be hosted by Canada on August 6-7, 1998 in Vancouver. The ITF members endorsed this concept, and a draft agenda was discussed.

Road Transport Harmonization Project (RTHP) and Model Mutual Recognition Arrangement (MRA) on Automotive Product (Australia)

The record of the Road Transport Harmonization Project RTHP) group and Steering Committee meeting Report (TPT/13/SC/CT/4.3) was tabled for consideration by the Steering Committee CT. RTHP group accepted the final report for the TPT/01/97 and the first report for TPT 02/97.

CTI had been advised that TPT-WG may wish to make a contribution to the development of the proposal Early Voluntary Sectoral Liberalization for the Automotive Sector. RTHP Group were supportive of the EVSL proposal recognizing its potential to heighten activity in the area of standards harmonization in the automotive sector.

RTHP group have developed a new project proposal to commence activity on Phase 5 of RTHP (TPT/13/SC/CT/6.1).

The Steering Committee recommend that the Plenary consider the following:

• Note the report of the RTHP group (TPT/13/SC/CT/4B/Rev.1)
• Note the final report of the Consultant for the TPT 01/97
• Note the 1^st progress report for the 1998 consultancy
• Endorse the budget proposal for Phase 5 of RTHP in 1999 (TPT/13/CT/6.1 + separate sheet.
• Recognize the role of the Vehicle Standards Harmonization Seminar held April 21, 1998 in increasing awareness of International harmonization issues and particularly the role of UN/ECE.
• Endorse the views of the RTHP group outlined in the recommendation of CTI on Early Voluntary Sectoral Liberalization proposal being considered in CTI. (TPT/13/SC/4.3 a/Rev.1).

Resulting from the International Vehicle Standards Harmonization Seminar and the intention of the proposed Early Voluntary Sectoral Liberalization for the Automotive Sector to encourage increased participation of the business sector, it is proposed that invitations be extended to international organizations representing the automotive industry and vehicle users as guests to Road Transport Harmonization Project group meetings.

The APEC Secretariat has advised that APEC SOM has delegated authority to APEC Working Groups to approve extending invitations to guests on a consensus basis.

The TPT-WG Steering Committee CT recommends that TPT-WG approves extending invitations to RTHP group meetings to the following organizations:

• International Motorcycle Manufacturers Association (IMMA)
  
• International Organization of Motor Vehicle Manufacturers (OICA)
  
• Federation International de l'Automobile (FIA)

International Road Vehicle Standards Harmonization Seminar (Australia)

Transport Ministers encouraged APEC members to engage in dialogue with the UN/ECE on global harmonization of vehicle standards.

The International Vehicle Standards Harmonization Seminar was held in conjunction with TPT-WG in Mexico on April 21, 1998. The Seminar provided an opportunity to raise awareness among APEC members of standards harmonization activities in the automotive sector and the function of the UN/ECE WP on Transport.

Presentations were made by UN/ECE officials who had received APEC TILF funding to attend the Seminar. International organizations and APEC regulatory agencies and vehicle manufacturers and road users also made presentations.

Port Experts Group (Japan)

Japan proposed the establishment of a group of Port Experts at the 9^th APEC TPT-WG, April 1996 to improve expertise through exchange of information and experiences among Port Experts, to identify common issues and to formulate actions, to improve capacities and efficiencies of port in the APEC region.

At the 10^th TPT-WG, the Group selected six themes with their respective Theme Coordinators. The Six Themes and Theme Coordinators are as follows:

1. Port Data Base (Chile)
2. Regional Port Development Strategy (People磗 Republic of China)
3. Port Administration, Management and Operation (Thailand)
4. Environmental Considerations (U.S.A.)
5. Technical Standards and Technology Development (Chinese Taipei)
6. Natural Disasters and Damage Prevention Measures (Japan)

The web based Port Data Base has been developed thanks to the contribution of Chile. All the Economies are sincerely encouraged to provide data input to the Port Data Base. The Steering committee meeting reviewed the progress report on Themes 1, 2, 3, 4, 6 submitted by Japan (TPT/13/SC/CT/4.5).

Australia asked if the Port Experts Group could consider an upgrade to the existing design of the Port Data Base web pages to incorporate in the location sector of the database, the UN LOCODE information relevant to ports, terminals, and where available, berths within terminals

Chile completed the development of the software at its own finance and that this matter requires discussions and approval about its necessity and the availability of funds from APEC among the Port Exports Group.

The Steering Committee endorsed the proposal for the approval of TPT-WG.

Maritime Initiative (Japan)

Following the Joint Ministerial Statement of 1997, which directed the TPT-WG to finalize the Maritime Mission Statement by the 13^th meeting of the TPT-WG, we discussed the MMS.

At the Steering Committee meeting, we reached a consensus on the revised MMS (in attachment). The Committee agreed that they would recommend to the Plenary that it endorse the final MMS . The Group also discussed the structure and scope of a draft questionnaire for Transparency Exercise, which was prepared by Japan. It is expected that the questionnaire will be finalized at the 14^th TPT-WG meeting.

Air Services Group (Singapore)

The Air Services Small Group Meeting identified eight options for more competitive air services with fair and equitable opportunity for all member Economies in 1995. The eight options are as follows:

1. Air Carrier ownership and Control
2. Tariffs
3. Doing Business Matters
4. Air Freight
5. Multiple airline designation
6. Charter Services
7. Airlines cooperative arrangements
8. Market access

In 1997, Ministers endorsed these eight options and further instructed the TPT-WG to reconvene the Group "to analyze and prioritize the eight options and prepare, on a consensus basis, a recommendation on the options to be developed and how they should be implemented."

Two Air Services Group Meetings were convened in October 1997 and February 1998. The ASG has successfully completed the Report on Options. The Steering Committee on More Competitive Transportation endorsed the comprehensive report of the Air Services Group and commended Singapore for its efforts in reaching agreement. The report would be submitted to transport Ministers by the Minister of the Lead Shepherd Economy.

With regard to monitoring the implementation of the recommendations made by the Air Services Group, the TPT-WG Steering Committee on More Competitive Transportation recommends that Economies could provide progress reports to the Steering Committee on a voluntary basis.

Group to Facilitate Privatization Corporatization of Infrastructure (Indonesia)

The first workshop on Privatization and Corporatization of Transport Infrastructure Projects in APEC was held in Bali in August 1997. It磗 theme was "Best practices Model for Private Participation in Transport Infrastructure Projects in APEC". The 1^st Workshop developed an outline of a Proposed Best Practices Manual. The 2^nd Workshop was postponed owing to time constraint and lack of member Economies?interest. The value of the Workshop, the Best Practice Manual and the project itself was discussed at the MCTI Steering Committee meeting and it was agreed that this project should be terminated given the numerous others sources for obtaining information on this subject.

III. Approval of New Projects

The Steering Committee reviewed the new funding proposals against the ranking criteria and agreed that four proposals be recommended to the Plenary.

IV. Outstanding Issues

N. A.

V. Management Issues

N. A

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