Green Freight Transport and Logistics in the Mekong Region

The freight and logistics sector supports economic development in the Greater Mekong Subregion (GMS). Against this background, the efficiency, environmental performance and safety of dangerous goods transport of the sector become important to ensure countries continue to grow, increase the welfare, maintain their economic competitiveness, and reduce environmental and social impacts. Freight sector studies conducted under the ADB’s GMS Core Environment Program (GMS CEP), reveal that the movement of freight has increased by 75% between 2002 and 2011, and exports of goods from the GMS almost tripled in the same period. Infrastructure expansion further increases transport and traffic activities. The corresponding rise in fuel consumption has increased GHG emissions and the dependency on oil imports. Surveys of freight companies show that fuel consumption costs often account for 40%-60% of the operating costs. In order to ensure sustainable development of the sector as well as the supply chains of the transported goods, efficiency and safety improvements are needed. Green freight interventions have shown that 5-15% improvement in efficiency is possible. The project has been designed based on the vision, objectives and priorities of various key institutions in the region. Workshops and preparatory meetings between the key players have been conducted to prepare this project. This project builds on and complements ongoing projects under the GMS CEP which are currently testing green freight interventions, driver behaviour improvements and logistics efficiency solutions. In addition, It will replicate the successful adaptation of the European Agreement concerning the International Carriage of Dangerous Goods (ADR) in Thailand to the other countries.

Overall objective:

To increase sustainable freight transport and logistics in the Mekong Region.

Specific objectives

• To improve fuel-efficiency by better management, cooperation, and driving behaviours in the Mekong region.

• To improve the safety of dangerous goods transport within the Mekong region.

• To increase access to finance for SME in the logistics sector in greening and freight and logistics

• To promote modal shift, labelling, and other SCP incentive measures in freight, transport and logistics.

Target Group: National freight and logistics associations (including its members), driving schools, training and educational service providers

Main Areas of Support:

1)     “Fuel efficiency”: Implement measures to increase fuel efficiency to 500 micro and small freight and logistics companies

2)     ”Safety of DG transport”: Introduce guidelines for dangerous goods transport to administrative bodies and companies. Facilitate cross-border agreements and train on safety of DG transport.

3)     “Access to Finance”: Support green loan initiatives and develop investment plans for WP

4)     “Awareness & Policy Actions”: Support awareness and policy actions (e.g. labelling, regulations, incentives, modal shift)