Issue No. 172, December 2000

THE CONTRIBUTION OF THE ECONOMIC COMMISSION FOR LATIN AMERICA AND THE CARIBBEAN (ECLAC) TO THE PHYSICAL INTEGRATION OF TRANSPORT SYSTEMS IN SOUTH AMERICA: A HISTORICAL OVERVIEW

For over a quarter of a century, the Economic Commission for Latin America and the Caribbean (ECLAC) has been in the vanguard of the search for greater physical integration among South American countries, especially in the area of transport, including road, rail, river and multimodal transport.

Its activities in this field have ranged from drafting agreements to the design and introduction of concrete measures and have been carried out, either individually, at the request of the Governments of member States, or in collaboration with other organizations, such as the Institute for the Integration of Latin America and the Caribbean (INTAL), which is part of the Inter-American Development Bank (IDB).

The physical integration of South America has always been one of the main concerns of the former Division of Transport and Communications of ECLAC – the predecessor of the current Transport Unit –, from the early days of its existence some three decades ago. Initially, the focus was on railways, whose role was examined in depth in the study: Los ferrocarriles internacionales de Sudamérica y la integración económica regional (E/CN.12/914/Rev.1), published in 1972. A couple of years later, ECLAC tested the feasibility of transcontinental rail transport by accompanying a shipment of copper on its journey from Chuquicamata, Chile, to São Paulo, Brazil, and, in conjunction with the Inter-American Development Bank (IDB) and the Institute for the Integration of Latin America and the Caribbean (INTAL), studied transport services between Lima and both Buenos and São Paulo, Servicios de transporte terrestre internacional en los corredores Lima-Buenos Aires y Lima-São Paulo (published as E/CN.12/L.107, which referred to the infrastructure and focused its attention on services and institutional issues).

    Apart from the numerous studies on multimodal transport and facilitation of international transport in South America, in 1977, the findings were published of a series of studies for determining the most feasible ways of improving road infrastructure in the Andean subregion, covering also subjects such as standards of weight per axle for transport vehicles. (See Perspectivas del transporte internacional por carretera en la subregión andina, E/CEPAL/L.154, and addenda). A burning issue at that time was the wear and tear on roadways in transit countries caused by trucks from third countries, a topic which was analysed methodologically and quantitatively in the study Transporte terrestre internacional: una justa compensación por el uso de la infraestructura de los países de tránsito (E/CEPAL/L.168). The sea access for land-locked countries has always been an issue of special concern to ECLAC as shown. The case of Paraguay, in 1981, by a joint study with the Latin American Railways Association entitled: Transporte internacional por ferrocarril (TIF) Paraguay-Atlántico (E/CEPAL/R.252). Regarding Bolivia, various analyses were carried out with the focus almost exclusively on institutional issues; in 1984, however, the study: Sistema de tránsito para las mercancías de Bolivia a través del Perú (LC/R.375) covered both infrastructural and institutional issues with a special study on the port of Ilo.

    From the mid-1980s, although the Division allocated the greater part of its resources to institutional matters, such as privatization and regulation, physical integration remained a key issue in its programme of work. In 1987, the study: Transport of Paraguayan exports through the Argentine-Chilean corridor (LC/R.529) was published. The growing trend towards the concessioning of infrastructure and transport services has enhanced the importance of considering the distribution of the benefits of infrastructure projects and not only its total amount, with a view to identifying the extent to which each beneficiary should contribute to investment costs. This issue, which is especially critical for infrastructure which serves international transport, was studied in La metodología de la tarificación del uso de la infraestructura y la eficiencia del sistema de transporte nacional (which is a chapter in the book entitled Reestructuración y privatización de los ferrocarriles, LC/L.727, 1993). Infrastructural deficiencies afecting service of trans-Andean transport were identified in the document entitled Una primera aproximación al estudio de los servicios de transporte en los espacios de integración: el caso de Argentina y Chile (LC/R.1633), published in 1996.

    At the request of IDB/INTAL, studies were carried out on two separate occasions on the role of railways in transport between countries of the Southern Cone and on investment requirements of this sector, in view of the transfer of such operations to private entities. The relevant report, Los ferrocarriles del Cono Sur de América Latina y su contribución al comercio internacional was published first by INTAL in 1996 and is now being updated for inclusion in a book to be published by ECLAC. In some respects, it covers the same ground as the study: Los ferrocarriles internacionales de Sudamérica y la integración económica regional, published a quarter of a century earlier at a time when rail or road privatization was completely unheard of. The 1996 and 1997 study focused on the economic difficulties faced by the projects relating to the so-called "bioceanic corridors" given the relatively high costs involved in transporting cargo up to an altitude of 4,000 metres in the Andes and then down to the Pacific ports on the other side. Reference is also made to the financing of major integration infrastructure or service projects whose beneficiaries will include producers and consumers in countries other than those where such investment costs are incurred. ECLAC considers that the principle of fair distribution of the investment costs of such infrastructure is extremely important for the physical integration of South America,

Contribution to transport institutions in South America

For over thirty years, the ECLAC Transport Unit (formerly the Transport Division) has been contributing to the construction of the institutional, operational and regulatory framework for the international transport of goods and persons in South America. The many studies conducted, the solutions analysed and proposed, the continuous contact with authorities and business sectors and the multiple agreements prepared and negotiated with ECLAC support have helped to make transport in South America an example of the sector’s organization which has been emulated throughout the hemisphere.

    The following is an account of some of the most important facts in the process of integration of transport in South America, in which the role of ECLAC as architect of the agreements and mechanisms adopted has been decisive.

    Since the 1960s, ECLAC has attended the regional ministerial forums on transport. Its presence and active participation in the work of the Western Hemisphere Transport Initiative (WHTI) has helped to define the purpose and scope of the WHTI, orient its work and define mechanisms for coordination of regional transport systems. The document presented to the Executive Committee of the WHTI is entitled Propuesta para un plan de acción para la integración de los sistemas de transporte de las Américas (LC/R.1953) and was published in June 2000. Based on the principle of open regionalism, ECLAC proposed that WHTI should draw on the advances made by existing forums and that its areas of competence should be those decided on by common agreement by those forums. ECLAC will thus be able to participate fully in building an institutional framework for the entire continent.

Road maintenance as a means of enhancing integration

Truck maintenance is a question that has been of concern to ECLAC in the last two decades owing to the damage caused by the poor condition of road networks, both because it affects the competitiveness of countries and the regions of which they are part, and because of the obstacles it poses to integration at the continental level.

    In the 1980s, ECLAC, in conjunction with the World Bank, held three Latin American seminars on truck maintenance (Santiago, Chile, in 1983; Curitiba, Brazil, in 1986, and Piriápolis, Uruguay, in 1988). These were forums for the exchange of experiences on technical, organizational and financial aspects of road maintenance.

    As of 1990, a programme was started, with support from the German Agency for Technical Cooperation (GTZ), and, after a look at the failings of traditional systems, new financial, institutional and management schemes were proposed for road maintenance. Funds were set up for this purpose with financing through user charges and the introduction of maintenance contracts by level of service or standard, in addition to institutional arrangements to ensure their feasibility. The proposals were published in the following books: Caminos – Un nuevo enfoque para la gestión y conservación de redes viales (LC/L.693/Rev.1, September 1994) and Legislación modelo de conservación vial (LC/L.899, May 1995).

    As of 1994, with the establishment of the International Road Federation (IRF), a technical assistance programme was started for countries at their request, for the introduction of concepts developed in the previous phase. To date, four countries and two states in Brazil have created road maintenance funds and in six countries, contracts have been granted by level of service; meanwhile, headway is being made in various other countries, on studies for the implementation of similar contracts. The bulletin Reforma Conservación Vial is published biannually and is now in its eleventh issue; it provides information on progress with respect to road maintenance in South America.

The Transport Unit: members and respective working areas

Ian Thomson ithomson@eclac.cl Telephones: (56-2) 210-2280; (56-2) 210-2281

José María Rubiato jrubiato@eclac.cl (56-2) 210-2284

Jan Hoffmann jhoffmann@eclac.cl (56-2) 210-2131

Alberto Bull abull@eclac.cl (56-2) 210-2283

Sidney Rezende srezende@eclac.cl (56-2) 210-2285

Myriam Echeverría mecheverría@eclac.cl (56-2) 210-2485

Gabriel Pérez gperez@eclac.cl (56-2) 210-2240