1. Roadmap to Bogor Goals Industry Report Roadmap Taskforce – Australia, Brunei Darussalam and Singapore

2. Slide Title 28pt Georgia Text 16pt Arial Narrow 16pt At TPT-WG24 in Washington DC, the group agreed to a study on progress towards achieving the Bogor Goals, in three phases: Phase 1 – Industry Report Phase 2 – Economy Report Phase 3 – Recommendations Model for the Roadmap

3. Phase 1 – the Industry Report Surveys were sent to ABAC Secretariats in July 2005 After several follow-up requests 7 responses were received –  from Australia; Canada; Hong Kong, China; Japan; Malaysia; New Zealand and Peru A detailed business report has been provided on the TPT- WG web site (http://www.apec-tptwg.org.tw). This presentation provides an executive summary

4. Industry Report Survey questions - through ABAC, industries were asked to: Identify progress towards Bogor Goals Identify barriers to free and open trade and investment Comment on emerging trends Suggest initiatives that might assist in advancing trade liberalisation and cooperation in transport services in the APEC region

5. In summary, industry responses identified similar areas of progress across the contributing economies Microeconomic reforms  Progress on deregulation – open skies agreements: multilateral and bilateral, Low Cost Carriers  Competition regimes  Privatisation/corporatisation of transport infrastructure Industry comments on progress (1)

6. Technological advances in the areas of  Intelligent Transport Systems (ITS)  Intermodalism  Information and Communication Technologies (ICT)  E-commerce Industry comments on progress (2)

7. Identified Barriers (1) A common barrier identified in industry comments was the need for suitable investment in infrastructure  Many ports in the region are overstretched  There is a challenge for some economies to keep up with increase in trade  Advancements in technology impact on the need for infrastructure updates of sea- and airports

8. Identified barriers (2) Restrictions to free competition were identified  In maritime – including cargo reservation regimes and liner shipping conferences Comments that regulation is being used as Non- Tariff Barrier for example in:  Increased security requirements  Lack of transparency in the application of regulations  ‘facilitation payments’ while not common, are seen as a problem in some sectors

9. Emerging trends (1) ‘Up-sizing’ in all sectors was identified as both a positive and (in some instances) a negative trend  Larger vessels – provide more cargo capacity, but have physical implications for ports  Larger aircraft – provide more freight and passenger capacity, but have physical and customs implications for airports  Making the necessary investments in infrastructure may pose challenges for some developing economies  “Hubs and spokes” system in shipping liner services – more efficient east/west services, but could constrain north/south trade routes

10. Emerging trends (2) Skills shortage was identified as a problem across economies  In particular maritime fleet personnel Mergers of service providers is an increasing trend, leading to:  Greater efficiency but also greater dominance in some cargo markets  Possible impact on competition

11. Emerging trends (3) Increased reliance on information and Communication Technology (ICT) Integrated transport and logistics services – higher efficiency, but pressure on intemodal facilities Increased regulation  Increased security requirements across the modes and inconsistent approaches to cost-recovery of security checks  Increased environmental requirements, particularly around ports

12. New initiatives New initiatives proposed by industry can be summarised under two headings: Harmonisation – industry would like to see:  Uniformity of standards regulations (especially security)  Uniform expectations in preferential trade agreements concerning transport issues Microeconomic measures suggested included  full competition regime for all areas  full market access for foreign investment

13. Phase 2 – the Report from APEC economies In order to compile the APEC Economy Report for the Roadmap, surveys were sent to economies in mid-October 2005 with an initial deadline of 10 December 2005, subsequently extended to 31 March 2006 7 responses received so far: Australia, Brunei Darussalam; Japan; Mexico, New Zealand, Singapore and Chinese Taipei The Roadmap Taskforce encourages all economies to participate Final deadline now extended to 30 June 2006 We can re-send the survey questions if necessary. Please provide contact details to the Australian delegation The Phase 2 Report will be presented at next TPT-WG meeting in Vancouver

14. Phase 3 - Recommendations A set of draft recommendations based on input to industry and economy surveys will be presented at the next TPT-WG meeting in Vancouver for discussion Recommendations could be put to Ministers for Transport at the 5 th APEC Transportation Ministerial Meeting scheduled to be held in Adelaide, South Australia in March 2007 The Roadmap will be a key document in consideration of the future work of the TPT-WG All TPT-WG sub-groups might start looking at the Industry Report and consider how their work can contribute to addressing the trends and issues identified It is important that economies who have not yet completed the Phase 2 survey do so by 30 June