1. State of Trade and Development in the APEC Region Enrico L. Basilio Philippines 6th APEC Transportation Ministerial Meeting (TMM6) 27-29 April 2009, Manila, Philippines

2.  Global economic slowdown, downward trend of trade in the APEC region  APEC Key Priorities for 2009, Transport Working Group action areas and accomplishments  Enhancing regional connectivity Outline MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

3. Global Economic Slowdown MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009 SOURCE: IMF

4. APEC Trade (Growth Trend) MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009 SOURCE: IMF

5.  As of February 2009, 6% of total containership fleet has been laid up – roughly 750,000 TEUs (Lloyds Register)  Backlash on shipbuilding (cancellations), reduction in demand for seafarers  On a positive note, it represents an increased demand for lay-up facilities Slow trade, ship lay ups MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

6. “SUSTAINING GROWTH, CONNECTING THE REGION  “… To support economic growth, address the global crisis, accelerate regional economic integration, and resist protectionism” APEC 2009 Theme MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

7.  Rise in protectionist pressures globally  Reaffirmed commitment to resist protectionist measures in domestic policies responses to the global economic crisis  To refrain from raising new barriers to trade and investment or stimulating exports in a manner inconsistent with WTO rules 1. Resisting Protection MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

8.  Liberalizing trade and investment flows AT THE BORDER  Improving the business environment BEHIND THE BORDER  Enhancing physical connectivity ACROSS THE BORDER 2. Accelerating Economic Integration MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

9. Accelerating Economic Integration  Liberalizing trade and investment flows AT THE BORDER  Make the rules of origin of existing Free Trade Agreements (FTAs) more business-friendly  Identify possible vehicles for a future FTA of the Asia- Pacific (FTAAP)  Deepen the analysis of an FTAAP 2009 APEC Key Priorities MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

10. Accelerating Economic Integration  Improving the business environment BEHIND THE BORDER  Simplify business regulations  Enhancing physical connectivity ACROSS THE BORDER  Improve logistics and transport networks 2009 APEC Key Priorities MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

11.  Transportation plays a key role in the APEC agenda for trade facilitation and economic integration in the Asia- Pacific Region  The mandate of the APEC Transportation Working Group (TPTWG) are:  Promote liberalization of transport services  Balance safety, security and environmental requirements with trade facilitation  Develop inter-modal supply chains and secure transport activity  Integrate CSR and build capacity of all stakeholders Transport Working Group (TPTWG) MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

12.  Aggressive road safety strategies  Harmonization of security measures  Compliance with global security requirements  Liberalization of air services  Address greenhouse gas emissions from aviation TPTWG Priority Action Areas MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

13.  Conferences and workshops on  Trade security, vulnerabilities of the global SC, trade recovery, PPP to counter terrorism, air cargo security and aviation emissions  Five (5) transport-related studies endorsed for implementation –  International visitor flows and greenhouse gas emissions  Increased use of inland rivers for inter-modal transport  Managing operations and risk in global supply chain operations  Secure and smart container development  Compendium of best practices on motorcycle and scooter safety TPTWG Accomplishments, Expected Outcomes MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

14.  On Road Safety, The Philippine Government thru DOTC spearheaded the creation of the Global Road Safety Partnership – Philippines (GRSP-Phil. Inc.)  On Marine Transport, DOTC with support from NORAD and research institutions crafted a Philippine Merchant Shipping Law to provide an environment conducive to the development and modernization of the maritime sector  On Aviation, the Philippines successfully concluded several bilateral air talks in 2008 to increase both air passenger and cargo capacities with the following countries: Hong Kong, Macau, Malaysia, Russia, Japan, South Korea, Dubai among others  On Transport Infrastructure Development. Government developed key transport infrastructures (ports, airports, toll roads) in support of the establishment of a transport-logistics hub in Subic-Clark area Actions undertaken by RP Government MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

15. The Challenge MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009  Enhanced Connectivity in the East Asian Region

16. MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

17. Strong Republic Nautical Highway (SRNH) MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009 Matnog, Sorsogon Allen, Samar Liloan, Southern Leyte Lipata, Surigao Del Sur Pilar, Sorsogon Aroroy, Masbate Cawayan, Masbate Daanbantayan, Cebu Mandaue City, Cebu Tagbilaran, Bohol Jagna, Bohol Mambajao, Camiguin Guinsiliban, Camiguin Balingoan, Misamis Oriental Batangas City, Batangas Calapan, Oriental Mindoro Roxas, Oriental Mindoro Caticlan, Aklan Dumangas, Ilolio Dumaguete, Negro Oriental Dapitan, Zamboanga del Norte Bacolod, Negros Occidental CENTER FOR RESEARCH AND COMMUNICATION Western Nautical Highway Central Nautical Highway Eastern Nautical Highway Legend:

18. SRNH East-West Lateral Links MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009 Dumangas, Iloilo Cebu Bohol Punta Enganio, Jetafe, Bohol Toledo, Cebu San Carlos, Negros Bacolod Ubay, Bohol To Caticlan To MasbateTo Samar To Camiguin To Zamobanga CENTER FOR RESEARCH AND COMMUNICATION Maasin, S. Leyte

19.  Increased regional trade  Enhanced tourism  Efficient distribution of agro-fishery products  Reduced transport cost and improved transport services  Area development Economic Impact on Domestic Inter-island Trade and Regional Development MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

20. Increased Inter-island / Regional Trade MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009 Fruits and Vegetables Fishery Products Live Hogs Rice and Palay

21. Increased Inter-island / Regional Trade MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

22. Southwestern Mindanao RO-RO Links MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

23. Enhanced Tourism and Mobility of People MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

24. Enhanced Tourism and Mobility of People MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

25. Tourism Growth MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009 One tourist, one job. From 2003 to 2006, tourism receipts in Boracay grew by 50%, Iloilo by 30%, Bacolod by 15% and Dapitan by 200%.

26. RO-RO Traffic in Select Routes MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

27. Regional Connectivity MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009  Bridges across the ocean: connectivity promoting trade in the Greater Southeast Asian archipelago  ADB Conference (November 2008)  Paul Apthorp/TNT Logistics suggested the expansion of the Philippine SRNH Program  Southeast Asia Regional Nautical Highway

28. Regional Connectivity MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009  Regional Transport in Asia  Intermodal Transport (Land and Sea) Ro-Ro Transportation  Current Regional Cross Border Transportation (heavy infrastructure development in the Greater Mekong Sub-region)

29. VTE Singapore Kuala Lumpur Phnom Phen Malaysia Bangkok Ho Chi Minh Vietnam 越南 Laos Myanmar Danang Guangzho PXG Cambodia Hanoi China 中国 Nanning Thailand ZVK VTE Strong REGIONAL Nautical Highway In theArchipelagic SEA

30. Regional Connectivity MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009 Cargo traffic to/ from the Pacific

31. North Sea Ro-Ro Routes from Newcastle

32. Mediterranean France to North Africa

33. North Sea Ro-Ro Ferry..Freight Only Mediterranean Freight Only Service Freight only Shipping Lines !! North Sea Freight Only Services

34. Benefits of Freight Ro Ro Speed –Quick loading and unloading of Ferries –Roll up and Roll on… cuts lead times –Turn around time in port. As low as a couple of hours. Infrastructure Cost –Do not require the deep draft ports that Container ships need Dan Nang Hai Phoung Sihanouk Ville User Friendly –Complementary to CBTA –Can bypass infrastructure and congestion black spots SOURCE: Paul Apthorp (2008)

35. Thank You. MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009