Enhanced ASEAN Regional Integration Support from the EU

Container transit

The demand for multimodal transport – integrated end-to-end movement of commercial goods by different modes of transport– is increasing in the ASEAN region. If well managed, multimodal transport allows ASEAN Member States to take advantage of the increasing economic opportunities in the region, further ASEAN market integration, and enable ASEAN to benefit from its location at the crossroads of Northeast Asia, South Asia and Oceania.

In support of these aims, ASEAN’s strategic transport plan includes the development and implementation of a Framework Agreement for Multimodal Transport (AFAMT). The draft implementation framework for this agreement was finalised during a meeting of ASEAN experts in Hoi An, Vietnam in August 2019, supported by ARISE+ in collaboration with the Ministry of Transport of Vietnam and the ASEAN Secretariat.

The experts also discussed future activities such as the development of implementation guidelines and procedural manuals as well as an initial pilot exercise to support the implementation of the AFAMT, once endorsed by ASEAN Transport Ministers. During the pilot exercise, the agreement will be implemented between at least two ASEAN Member States and the performance outcomes and the impact of cutting logistical costs on the economy of specific supply chains or corridors measured.

The planned implementation of AFAMT represents a significant opportunity for ASEAN to facilitate multi-modal transport in the region. Doubtlessly, the private sector very much appreciates the support of ARISE+.

Somsak Wisetruangrot, Chairman of ASEAN Federation of Forwarders Associations (AFFA) Logistics Institute.