Coastal Shipping in Thailand

and
Regional Cooperation
on Coastal Shipping
Presented by
Ms. Kamolwan Kularbwong
Senior Specialist in Maritime Transport (Economics)
Maritime Promotion Division
Ministry of Transport
THAILAND
Contents
• Situation of coastal shipping in Thailand
• Initiative on coastal shipping from the eastern region of Thailand to
the south of Cambodia and Viet Nam (TCV Coastal Shipping)
• BIMSTEC Coastal Shipping
• Coastal shipping agreements proposed by other countries
• Issues and challenges
Situation of Coastal Shipping
in Thailand
Geographical Characteristics
• Length of coastline : 3,148.23 km
• Cover 23 coastal provinces in eastern and southern regions
• Length of coastline along the Gulf of Thailand : 2,055.18 km
• Length of the Andaman coastline : 1,093.05 km
Thailand’s Sea Areas
Type of Sea Areas Areas (Sq.Km.)
Gulf of Thailand coastline Andaman coastline and near Straits
of Malacca
Internal waters 54,103.47 7,850.57
Territorial waters 29,344.36 23,723.86
Contiguous zone 23,909.18 13,604.04
Exclusive economic zone (EEZ) 88193.97 75,633.65
Joint Thailand-Malaysia 7,125.22
development area (part of EEZ)
Total areas 202,676.20 120,812.12
Total Thailand’s sea areas 323,488.32
Domestic Freight Volume Classified by Modes
of Transport in 2011 - 2015
Proportion of cargo
classified by type of cargo
and modes of transport
Location of Coastal
Ports in Thailand
Coastal Shipping
Routes in Thailand
Routes and amount of Domestic Coastal and Inland Water Transportation
Relevant authorities
• Ministry of Transport (MOT) / Office of Transport and Traffic Policy
and Planning (OTP) : Policy development (now promoting the use of
rail and water transport)
• Marine Department (MD) : infrastructure development (port
development, channel dredging development and maintenance), port
safety and security, port licensing, port clearance
• Department of Treasury : landlord, port ownership and management
• Port Authority of Thailand (PAT) : Ranong Port, Klong Yai Port
Relevant Laws and Regulations
• Thai Vessels Act, B.E. 2481 (1938)
• Definition of “trading in Thai waters” reserves domestic coastal shipping
(transportation of cargo between two points in Thai waters) for registered
Thai vessels (cabotage).
• Section 7 stipulates that only registered Thai vessels with at least 70% of Thai
equity (for domestic shipping) with 100 per cent Thai national crew on board
and registered Thai vessels with at least 51% of Thai equity (for international
shipping) can do “trading in Thai waters”
• Section 47 stipulates that foreign registered vessels can be allowed to do
“trading in Thai waters” if (1) international agreements or treaties signed by
Thailand agreed to do so, and (2) it is proved that certain type of Thai vessels
is not sufficient and will adversely affect the country’s economy (this will be
approved by the Minister of Transport case by case for a period of one year).
Recent Study on Coastal Shipping
• Office of Transport and Traffic Policy and Planning (OTP) conducted a
a Study on Upgrading Thailand’s Coastal Transport Service and
Infrastructure System Efficiency in 2016
• Problems found:
• Insufficient depth of water channels
• Limited areas for coastal port construction
• Protest by local communities due to environmental concern
• Lack of sophisticated port facilities and equipment due to short period of
concession
• Lack of hinterland and supported industries
• Lack of efficient inland transport linkages
Recent Study on Coastal Shipping (cont.)
• Recommendations:
• Port infrastructure development and management approach (PPP)
• Promotional measures and incentives to divert from road transport to coastal
shipping
• Develop hinterland and supported industries
• Improve inland transport linkages
• Improve water channels by sub-contract to private sector
• Provide information on benefits and advantages of coastal port development
to local community
• Request the Department of Treasury to extend the concession period to allow
private port operators to invest in modern port equipment and facilities
Other Issues and Challenges of Domestic
Coastal Shipping in Thailand
• Cargo owners / consignees / logistics operators prefer road transport to
coastal shipping due to the advantage of door-to-door services and to
avoid double handling and incentives/subsidy for cargo owners to divert
from road transport to coastal shipping.
• Marine Department vs Department of Treasury on different port
management approach.
• Ranong Port has been underutilized due to unfavorable geographical
conditions.
• Customs Department plans to introduce E-Coasting Trading System to
facilitate Thai vessels engaged in domestic coastal shipping to report cargo
declaration to the Department by electronic system using NSW gateway.
 Initiative on Coastal Shipping of
Thailand-Cambodia-Viet Nam (TCV)
Background of TCV Coastal Shipping
• In 2014 Thai and Viet Nam Prime Ministers agreed to promote coastal
shipping along the eastern region of Thailand to the south of Viet
Nam by utilizing small and medium-sized ports.
• Cambodia was invited to join the coastal shipping as the coastal route
also passes through its southern region with some potential coastal
ports.
• The Tripartite Task Force (TTF) on TCV Coastal Shipping was
established in 2015.
1st TTF Meeting on Coastal Shipping of TCV
• 1st TTF Meeting on Coastal Shipping of TCV was held on 28 – 29 March
2016 in Bangkok, Thailand.
• The three countries exchanged information on current situation of coastal
shipping in their respective countries and agreed in principle to promote
coastal shipping along the eastern region of Thailand to the south of
Cambodia and Viet Nam.
• The Meeting discussed on possible coastal routes and ports and agreed to
conduct a preliminary survey by questionnaires (prepared by Viet Nam) to
be distributed to 4 stakeholders, i.e. exporters/importers, coastal ship
operators, coastal port operators and freight forwarders/logistics providers,
the results of which will be the basis for designating coastal ports and
routes.
1st TTF Meeting (cont.)
• The Meeting agreed that coastal vessels should have certain
standards, which may not equal to those of the International
Maritime Organization (IMO).
• Similarly, ship crew working on board coastal vessels must also have
commonly agreed standards.
• The Meeting agreed that each respective country should designate
one coastal port for one-stop inspection for customs clearance and
immigration.
2nd TTF Meeting on Coastal Shipping of TCV
• 2nd TTF Meeting was held on 21 – 22 November 2017 in Hanoi, Viet
Nam.
• Before the 2nd TTF Meeting, Viet Nam circulated the draft MOU on
Coastal Shipping of TCV to Cambodia and Thailand for consideration.
• The Meeting considered and discussed the draft MOU prepared by
Viet Nam and agreed to have a form of legal instrument that could be
accepted by all three countries.
• Cambodia informed the Meeting that, since coastal shipping involves
the work of several ministries, such legal instrument should be in the
form of Agreement, according to their constitution.
2nd TTF Meeting (cont.)
• The Meeting requested Cambodia to prepare the draft Agreement on Coastal
Shipping and circulated the draft to Thailand and Viet Nam at the earliest
opportunity.
• At the initial stage, the respective countries agreed upon a coastal shipping
route for cargo and passenger transportation with the following designated
coastal ports:
Cargo ports : Klong Yai (Thailand) – Sihanoukville (Cambodia) – Kampot
(Cambodia) – Ha Tien (Viet Nam) – Phu Quoc (Viet Nam)
Passenger ports : Klong Yai (Thailand) – Koh Kong (Cambodia) - Sihanoukville
(Cambodia) – Kampot (Cambodia) – Ha Tien (Viet Nam) – Phu Quoc (Viet Nam)
• Additional designated coastal ports can be included at a later stage.
• Thailand proposed Klong Yai Port as the one-stop inspection.
 Map of routes Cargo Transportation

Klong Yai Trad (Thailand) – Sihanoukville (Cambodia) – Kampot (Cambodia) - Ha

Tien (Viet Nam) - Phu Quoc Islan (Viet Nam)
Klong Yai Trad

Sihanoukville
Kampot

Ha Tien

Phu Quoc Island

24
 Map of routes Marine Tourism

Klong Yai Trad (Thailand) – Koh kong (Cambodia) - Sihanoukville (Cambodia) –

Kampot (Cambodia) - Ha Tien (Viet Nam) - Phu Quoc Islan (Viet Nam)
Klong Yai Trad

Koh kong

Sihanoukville
Kampot

Ha Tien

Phu Quoc Island

25
Designate one-stop inspection
• Klong Yai Port has been chosen to be one-stop
inspection for coastal shipping for the following
reasons:
• Has both cargo and passenger terminals
• Full facilities for customs and immigration clearance
• Middle size port in accordance with the Coastal Shipping
Initiative
• Suitable location for coastal shipping
• Situated in the Eastern Economic Corridor (EEC), priority
area for investment privileges
• MOT has assigned PAT to manage and operate the port
• PAT is now considering appropriate management approach
and conditions for port management
 Klong Yai Multipurpose Terminal

Consists of a multipurpose terminal, a fishing pier and a jetty for government patrol boats
- Multipurpose Terminal
Dimension: 120 m. long x 60 m. wide x 5.5 m. deep (or 4 m. at lowest low water)
Designed to receive vessels of 450 GRT, 4 m.wide, 20 m. long and 3 m. deep (9 cargo vessels
and 2 passenger vessels simultaneously)
- Fishing Pier
Dimension: 50 m. long x 25 m. wide x 5 m. deep (3 m. at lowest low water)
- Jetty for Government Patrol Boat
Designed to receive 2 naval patrol boats and 3 government boats simultaneously
27
Dimension: 18.6 m. x 2,058 m. with 4 traffic lanes
2nd TTF Meeting (cont.)

• Thailand submitted the draft safety standards of cargo vessels

engaged in coastal shipping (adopted and modified from the Safety
Standards of Non-Convention Vessels developed by IMO) to the
Meeting for consideration at the 3rd TTF Meeting.
• Viet Nam would also submitted the standards and regulations of
passenger vessels and qualifications of seafarers working on board
such vessels for consideration.
• Cambodia will host the 3rd TTF Meeting in the last quarter of 2018
after the national election.
Work Progress after the 2nd TTF Meeting
• Cambodia circulated the draft Agreement to Thailand and Viet Nam in
February 2018.
• Marine Department set up a working group to consider the draft
Agreement and has already completed consideration. It is now
preparing to have a meeting with relevant authorities and private
sectors in order to seek views on the draft Agreement and its
proposed revisions in October 2018.
• It is expected that the final proposed revisions can be submitted to
Cambodia and Viet Nam by first week of November 2018.
• Port Authority of Thailand (PAT) has been assigned to manage and
operate Klong Yai Port. It is now considering an appropriate form of
management and conditions (if contract-out).
Proposed Agenda for the 3rd TTF Meeting
• Finalization of the draft Agreement
• Finalization of designated coastal ports and coastal shipping route.
• Determining appropriate size of coastal vessels and sailing distance
from coastline
• Consideration of the proposed safety standards of cargo vessels
engaged in coastal shipping
• Consideration of standards and regulations for passenger vessels
• Qualifications of seafarers working on board coastal vessels
Contents of the Draft Agreement
• State Competent Authority : Ministerial level
• Designated coastal routes and ports (Annexes I & II)
• Coastal shipping license required
• Establishment of the National Coastal Shipping Facilitation Committee
• Cabotage in one Contracting Party is allowed for vessels of the other
Contracting Party upon approval.
• Ship documents, pilotage, crew members, assistance to vessels in
distress, tariff to be collected, criminal jurisdictions, facilitation,
maintenance of aids to navigation and navigation channels, dispute
settlement
Role of Private Sector
• The Cambodia-Vietnam-Thailand Economic Corridor Cooperation
Conference (CVTEC) was established with the 1st CVTEC Meeting on
16-19 August 2018 in Phu Quoc, Viet Nam, and Sihanoukville,
Cambodia.
• Private sectors from coastal provinces in Cambodia and Viet Nam
agree to promote southern maritime connectivity corridor
• Thai CVTEC Meeting was held by the Thai Chamber of Commerce on 8
October 2018.
• The 2nd CVTEC will be held on 14 November 2018 in Cambodia and
CVTEC Cooperation MOU will be signed by representatives of private
sectors of three countries.
BIMSTEC Coastal Shipping
Agreement
Ranong Phuket Dawei Yangon Chittagong Chennai Colombo
Background
• BIMSTEC coastal shipping agreement was mentioned during the 1st BTCWG
in August 2016 in Bangkok, Thailand.
• BIMSTEC Summit agreed to have coastal shipping agreement as one of
priority activities, another one is BIMSTEC Transport Connectivity Master
Plan.
• India hosted the First Working Group Meeting to discuss and finalize the
Draft Text of the Coastal Shipping Agreement among BIMSTEC Member
States prepared by India on 27-28 November 2017 in New Delhi.
• The Draft Standard Operating Procedure (SOP), as part of the draft
Agreement, was prepared by India and circulated to BIMSTEC Member
Countries in early 2018.
Contents of the Draft Agreement
• National treatment in levying port dues and other dues, access to
waters and ports, berthing, embarkation-disembarkation, services at
ports, etc.
• Apply to coastal vessels plying within 20 nautical miles from the
coastline
• Compromised Port State Control Inspection (can do if deemed
necessary)
• Vessels of non-IMO standards but meet SOP shall operate within the
limits of 20 nautical miles from the coast
• Recognition of ship and crew documents
• Standard Operating Procedure (SOP) as a tool to activate, operate and
facilitate the Agreement
Contents of the Draft Agreement
• Measurement of vessels
• Facilitation measures for vessels in and out of ports
• Assistance of vessels in distress
• Criminal jurisdiction
• Crew members provisions, etc
• Establishment of a Joint Shipping Committee
Contents of the Draft SOP
• All technical matters relating to ships, crews and ports such as the
following:
• Conservancy and pilotage
• Port dues and charges, handling facilities, supply of bunkers, purchase of
stores and provisions
• Repairing facilities
• Assistance to vessels in distress
• Removal of wreck
• Submission of voyage forecast for voyage permission to use waterways
• Recognition of ship and crew certificates and other documents
• Sharing of inter-country trade and transported cargo
• Common freight rates
• Etc.
Work Progress
• Marine Department’s relevant internal units have considered the
draft DOP with some views and comments.
• A meeting with relevant authorities and private sectors will be
convened to consider the draft and how to implement this
Agreement before the 2nd WG on the Draft Text of Coastal Shipping
Agreement is convened (December 2018?)
• Thailand needs more time to consider the draft SOP due to a lot of
technical details. This means Thailand is not ready to sign the
Agreement in 2018 as proposed by India.
Coastal Shipping Agreements
proposed by other countries
Proposed Thailand and India Coastal Shipping
Agreement
• Proposed by India in 2013 during the JC Thai – India.
• India submitted the Coastal Shipping Agreement between Thailand –
Bangladesh as a proposed draft for consideration.
• Preliminary consideration by Marine Department found several
provisions that are not acceptable
Proposed Thailand and Bangladesh Coastal
Shipping Agreement
• Proposed by Bangladesh Ambassador during the meeting with the
Minister of Transport of Thailand in October 2016
• MOT of Thailand tasked PAT to consider some form of legal
instrument to be concluded with Bangladesh (agreement on port-to-
port cooperation)
• MD was tasked to reconsider the draft maritime transport agreement
between Thailand and Bangladesh in order to modify and make use of
this instrument.
Issues and challenges
Issues and challenges
• What are (should be) the characteristics of coastal shipping? (ship size,
sailing distance from shore, etc.)
• Impact on cabotage?
• What kind of provisions should a coastal shipping agreement contain?
(Need for Model Coastal Shipping Agreement)
• No clear guideline for coastal shipping cooperation
• Different domestic laws, regulations and procedures of each country
• F/S or agreement should come first?
• Fishing and fishing-related vessels should be excluded due to strict IUU
measures.
• How can two countries with no adjacent territorial waters conclude a
bilateral coastal shipping agreement?
 THANK YOU
FOR YOUR ATTENTION