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Home > ASEAN single shipping market up for implementation in 2015

ASEAN single shipping market up for implementation in 2015

To help boost intra-ASEAN trade and tourism, an ASEAN single shipping market is set to be implemented by 2015. The realization of a single shipping market is expected to promote greater connectivity, efficiency, and competitiveness of the transport networks within the region which is crucial in boosting intra-ASEAN trade as it strengthens regional production and distribution networks. This envisioned ASEAN single market was detailed in the ASEAN Strategic Transport Plan (ASTP) 2011-2015 project jointly undertaken by the ASEAN Secretariat and the Economic Research Institute for ASEAN and East Asia (ERIA). ERIA is a policy think tank mandated to provide technical support for ASEAN Secretariat in furthering Regional Integration and Cooperation ultimately aimed at building an ASEAN Economic Community which will serve as a building block for a wider East Asian regional integration. As a significant step towards the realization of an ASEAN single shipping market a set of strategies will be developed by 2011 taking into account the various issues and concerns of all ASEAN member states regarding the concept of a single shipping market. Establishing a single shipping market entails the liberalization of the sector and massive investment in the development of infrastructure and human resources. Given the gargantuan investment that will have to be made by the government, PHILEXPORT trustee for the chemical sector Oscar Barrera raised concern about the grim possibility of incessantly facing high cost of shipping despite all the public investments made in infrastructure and human resource development. "The government should ensure that all the investments made to upgrade port infrastructure will translate to lower cost of shipping," Barrera said. With a few multinational companies dominating the domestic shipping industry, Barrera likewise noted that the cost of shipping in the country has been unreasonably high. For instance, the cost of shipping from Davao to Sulawesi is higher than from Sulawesi to Vietnam when the Philippines is much closer than Vietnam to Indonesia. In line with the envisioned single shipping market, ERIA will develop guidelines on acceptable practices in the provision of fiscal support for shipping operations by 2011. ERIA will also push for the privatization and commercialization of port operations as well as the simplification and harmonization of port documentation by 2014.
Source URL: http://www.mb.com.ph/articles/267463/asean-single-shipping-market-implementation-2015

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6/27/2011 10:43 PM