IMPLEMENTATION FRAMEWORK OF

THE ASEAN FRAMEWORK AGREEMENT ON MULTIMODAL

TRANSPORT

I. INTRODUCTION

1. There is an ever increasing demand for end-to-end handling of carriage of goods by

multimodal transport which has driven the growth of multimodal transport services. A
well-integrated and sustainable multimodal transport framework is imperative for
ASEAN Member States in order to take full advantage of the economic development
opportunities and for further ASEAN market integration. This will enable ASEAN to
leverage its location at the crossroads of Northeast Asia, South Asia and Oceania to
grow ASEAN’s strategic significance in Asia. Enhanced regional connectivity is
critical/essential to the realisation of a single market and production base under the
ASEAN Economic Community (AEC).
2. Recognising that the implementation of ASEAN Framework Agreement on
Multimodal Transport (AFAMT) is expected to require extensive work, especially in
the area of reviewing and streamlining different procedures of mode of transport, in
line with the development of global multimodal transport regime to include the legal,
regulatory and procedural aspects, it is essential for the ASEAN Member States to
lay a framework for the implementation of the AFAMT in order to realise the purpose
and spirit of the Agreement signed in 2005 and to meet the milestones set under the
ASEAN Transport Strategic Plan 2016-2025 / Kuala Lumpur Transport Strategic
Plan (KLTSP).
3. This Implementation Framework is also an important element to realise the target of
the ASEAN Community Blueprint 2025 for the operationalisation of AFAMT, which is
historically embedded in the mandate of the ASEAN Plan of Action in Transport and
Communications (1994-1996) to develop multimodal transport and transport
facilitation to enable door-to-door delivery of goods to customers, as well as the Ha
Noi Plan of Action 1997 which sets target for ASEAN to implement the AFAMT and
the AEC Blueprint 2015 targeting for implementation of AFAMT by at least two (2)
ASEAN Member States.

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 II. GLOBAL DEVELOPMENT IN MULTIMODAL TRANSPORT

4. With the international transportation of goods is increasingly carried out on an end-

to-end basis, multimodal transport operation has a robust and significant association
with stronger trade relations. In this global context, the United Nations Conference
on Trade Development (UNCTAD) Convention on International Multimodal
Transport of Goods (1980) states that international multimodal transport is one
means of facilitating the orderly expansion of world trade and puts emphasis on the
importance of multimodal transport by recognising that an equitable distribution of
multimodal activities between countries should be attained in international
multimodal transport.
5. The above global principles from UNCTAD also apply in the regional context, as
international multimodal transport is also one means of facilitating the expansion of
intra-regional trade among ASEAN Member States as well as between an ASEAN
Member State and third countries.

III. ASPIRATIONS OF THE AFAMT

6. The AEC aims to create a prosperous, highly cohesive and integrated economy, as
well as a competitive, innovative and dynamic ASEAN by 2025. The AFAMT is one
of the key pillars supporting the establishment of the AEC by facilitating the end-to-
end handling of carriage of goods by multimodal transport and taking full advantage
of the economic opportunities to improve trade within and beyond the region.
7. In line with the goals set for the AEC, ASEAN Member States are recommended to
do the following for the implementation of the AFAMT:
a) establish an integrated, efficient and globally competitive logistics and
multimodal transportation system, for seamless movement of goods within and
beyond ASEAN;
b) continue to exert their efforts to operationalise transport facilitation
agreements that directly benefit the logistics sector;
c) undertake various programmes or activities to enhance capacity and skills
development to further progress regional transport facilitation beyond ASEAN;
d) strive to implement streamlined and integrated multimodal transport, logistics
and supply chain, through the implementation of AFAMT and to collaborate
with other relevant ASEAN Sectoral Bodies to enhance trade facilitation
mechanism in order to simplify and harmonise customs transit formalities
leading to more efficient of multimodal transport operations; and
e) enhance the effectiveness, efficiency and sustainability of multimodal transport
operations.

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IV. OBJECTIVES OF THE IMPLEMENTATION FRAMEWORK

8. The objectives of the Implementation Framework are to:

(i) present the key activities essential for the implementation of AFAMT, along with
the timelines for each activity, in a Regional Action Plan. This will also serve to
align all ASEAN Member States to track a common set of key activities and
milestones for better coordination of the implementation efforts under the
AFAMT; and
(ii) outline the implementation mechanism of AFAMT, the intent to engage with the
relevant stakeholders, and to periodically review the Implementation Framework.

V. COVERAGE OF THE REGIONAL ACTION PLAN

9. This Implementation Framework contains Regional Action Plan 2020-2025 which

provides specific measures that ASEAN Member States may pursue in order to
implement AFAMT. Key elements and the rationale of the Regional Action Plan of
the Implementation Framework of AFAMT are:
(1) Ratification: complete ratification of the AFAMT by all ASEAN Member States.
(2) Legal Framework: realise the formulation and enactment of national legislation
by all ASEAN Member States, which align to the provisions under AFAMT.
(3) Institutional Framework: establish a Competent National Body in each ASEAN
Member State as the authority for issuing Multimodal Transport Operator (MTO)
registration certificate.
(4) Economic Impact: study the potential economic impact and trade growth due to
the increased multimodal transport operations in ASEAN.
(5) Logistics Performance: benchmark ASEAN Member States’ performances in
multimodal transport connectivity.
(6) Capacity Building: develop and deliver a focused regional support program to
continue to promote, educate and highlight the importance of multimodal
transport.
(7) Administrative Procedures: undertake procedural and administrative
obligations to implement AFAMT.
10. To ensure operationalisation of the AFAMT, all of the above elements need to be
addressed. However, these elements are not sequentially mutually dependent, as
some ASEAN Member States may require the element of legal framework to be
established prior to ratification of the AFAMT.
11. The Regional Action Plan should be viewed in consideration of the different stages
of development of each ASEAN Member State in implementing and operationalising
AFAMT.
12. National Work Plans to implement AFAMT have been developed by all ASEAN
Member States, which are used as basis for the Regional Action Plan.

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VI. IMPLEMENTATION MECHANISM

13. The ASEAN Transit Transport Coordinating Board (TTCB) through the ASEAN
Transport Facilitation Working Group (TFWG) shall coordinate and oversee the
overall implementation of measures and actions of the Regional Action Plan
specified under this Implementation Framework. TTCB/TFWG is the platform to
periodically review and amend the Regional Action Plan to ensure it remains
relevant and in keeping with the multimodal transport development goals and
milestones, as set under KLTSP.
14. Regular consultations with relevant ASEAN Sectoral Bodies, international
organisations, private sectors, industry associations and wider community at the
regional and national levels will also be actively sought to ensure participation of all
stakeholders in implementing the AFAMT.
15. Support for the implementation of the measures under this Implementation
Framework can be sought from various stakeholders, including ASEAN Dialogue
Partners.

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 VII. REGIONAL ACTION PLAN FOR THE IMPLEMENTATION OF AFAMT 2020-2025

Responsible
Key Elements Measures Country/Body Timeline

(1) Ratification i. Undertake domestic formalities to ratify AFAMT.  Brunei 2020

ii. Deposit Instrument of Ratification to the Darussalam
Secretary General of ASEAN.  Malaysia 2021
 Singapore 2021

(2) Legal Framework Develop and enact necessary national laws and/or Brunei Darussalam, 2020-2022
regulations on multimodal transport to implement Cambodia, Lao PDR,
AFAMT. Malaysia, Philippines,
Singapore
Official English translation of national laws to be made Indonesia, Lao PDR, 2020
available. Thailand

Develop an Implementing Guidelines for AFAMT which ASEAN Member 2020-2022

explains common understanding on implementation of States
provisions under AFAMT, comprising a common set of
ASEAN-wide multimodal transport liability, insurance, as
well as rules and regulations for the registration of
MTOs.

(3) Institutional Competent National Body as the authority for issuing Brunei Darussalam, 2020-2022
Framework MTOs registration certificate to be established and Cambodia,
confirm its functions. Lao PDR, Malaysia,
Myanmar,
Philippines,
Singapore

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 Responsible
Key Elements Measures Country/Body Timeline

Recognition of Multimodal Transport Operators ASEAN Member 2020 and beyond

registered with the respective Competent National Body States
(CNB) of each ASEAN Member State, pursuant to
Article 32 Para. 4 of AFAMT.

ASEAN Member States may share information on the Relevant ASEAN 2020
liability insurance coverage for multimodal transport to Member States
ASEAN Secretariat.

Liaise with relevant ASEAN Sectoral Bodies for ASEAN Member 2020 and beyond
collaboration in trade facilitation mechanism in order to States and ASEAN
simplify and harmonise customs transit formalities. Secretariat

(4) Economic Impact Economic Impact Study: ASEAN Member 2020 and beyond
(i) Endeavour to conduct study on the economic and States
trade impacts and gains from improving multimodal
connectivity of ASEAN, which showcases the benefits
of:
‐ Trade Expansion.
‐ Growth in Foreign Direct Investment (FDI).
‐ Economy Wide and Sectoral/Industry Impacts.
‐ Poverty Alleviation and Sustainable Development.

(ii) Endeavour to conduct broader studies to further

estimate the economic and trade impacts and benefits of
ongoing multimodal transport connectivity in the rapidly
growing ASEAN Member States.

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 Responsible
Key Elements Measures Country/Body Timeline

(ii) Endeavour to conduct comparative study on the

implementation of multimodal transport connectivity in
other region (e.g. EU) and lessons learned for ASEAN.

Performance Assessment Case Studies: ASEAN Member 2020 and beyond

Endeavour to collect specific data to assess the impact States
of operationalising multimodal transport on trade
corridors and through the development of pilot projects.
This includes measuring the performance outcomes of
cost, time and reliability and impact of cutting logistic
costs on the economy of specific chains or corridors.

Multimodal Statistics: ASEAN Member 2020 and beyond

Endeavour to collect and disseminate multimodal States
statistics on a regular basis (for example freight
movement volume and freight charges) in order to
analyse and determine the current and future regional
multimodal transport trends and assess potential
infrastructure and regulatory needs. The initial collection
of data should, in the first instance, be sought from
ASEAN Member States’ Competent National Body
and/or National Freight Forwarders Association and
current MTOs (recognising that commercial sensitivity
issue could be a possible impediment).

(5) Logistics Performance Endeavour to conduct benchmarking exercises in ASEAN Member 2020 and beyond
relation to improvements in practical transport, logistics States
and trade performance benchmarking indicators such as
the World Bank’s Logistics Performance Indicator (LPI),
and World Economic Forum’s Enabling Trade Index

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 Responsible
Key Elements Measures Country/Body Timeline
(ETI). These indicators will provide insights into the
effects of multimodal transport capabilities on trade and
logistics performance of ASEAN and ASEAN Member
States.

Endeavour to collect the following economic indicators ASEAN Member 2020 and beyond
on the logistics/supply chain performance of ASEAN States
Member States by:
(i) Trade volume (import and export);
(ii) Number of international ports;
(iii) Number of international airports;
(iv) Identified road network for the movement of import
and export trade (road connections that will ease
movement of goods, inward and outward).

(6) Capacity Building Focus on the regional support program following the
measures in the elements of the Legal Framework and
Institutional Framework incorporating the following
mechanisms:

(a) Support for the enactment of national legislation

and regulations on multimodal transport:
 Technical assistance from external sources for Brunei Darussalam, 2020 and beyond
Brunei Darussalam and Malaysia on the Malaysia
formulation of national multimodal transport law,
including the use and application of
internationally recognised standards and
conventions.

 Technical assistance and capacity building Brunei Darussalam, 2020 and beyond
Cambodia, Lao PDR,

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 Responsible
Key Elements Measures Country/Body Timeline
support from external sources for Brunei Malaysia, Myanmar,
Darussalam, Cambodia, Lao PDR, Malaysia, Philippines
Myanmar and Philippines on multimodal
transport regulations, and the establishment of
Competent National Body to register domestic
MTOs and recognise MTOs registered in other
ASEAN Member States.

 Workshop(s) to promote interest on establishing All ASEAN Member 2020 and beyond
a uniform legal framework governing multimodal States
transport through application of the AFAMT and
UNCTAD/ICC Rules for Multimodal Transport
Documents and FIATA Multimodal Transport Bill
of Lading.

 Training on multimodal transport and MTOs All ASEAN Member 2020 and beyond
including role and advantages of non-vessel States
operating MTOs (NV-MTO) and vessel operating
MTOs (VO-MTO) in international transport.

 Training on the roles and functions of Competent All ASEAN Member 2020 and beyond
National Body and registration of the MTOs, States
including regulations on MTOs registration,
carrier liability insurance and financial capability.

(b) Support for awareness and promotion of benefits

of multimodal transport
 Conduct discussion forum on the impact and ASEAN Member 2020 and beyond
benefits of cross border trade and the use of States
available international standards, rules and
conventions on multimodal transport for
government officials and industry players.

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 Responsible
Key Elements Measures Country/Body Timeline

(c) Support for ASEAN Member States to enhance

the functions of the competent national body to
oversee the implementation of multimodal transport.
 Conduct discussion forum on mechanism for Indonesia, 2020 and beyond
recognising MTOs registered in other ASEAN Singapore, Thailand,
Member States. Vietnam

(d) Knowledge Exchange:

Develop regular knowledge building and exchange
forums as mechanism to foster and promote
government and industry awareness and understanding
of the continuing development of multimodal transport in
a global, regional and country specific context from a
legal, transport, logistics and trade facilitation
standpoint.
 Engage with AFFA to explore opportunities to ASEAN Member 2020 and beyond
leverage existing capacity building programs. States and AFFA
 Strengthen engagement with ASEAN Dialogue
Partners for the support in the development and ASEAN Member
implementation of international multimodal States and ASEAN
transport. Dialogue Partners

(e) Pilot Implementation:

 Implementation of AFAMT between at least two Bilateral or trilateral 2020
(2) ASEAN Member States. pilot implementation
 Observation/monitoring and evaluation on the involving Indonesia,
initial pilot project of paired ASEAN Member Thailand and
States that have fully complied with all the Vietnam
requirements of AFAMT.

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 Responsible
Key Elements Measures Country/Body Timeline

(7) Administrative Official English translation of updated national laws, ASEAN Member 2020-2025
Procedures regulations, and administrative procedures concerning States
the registration of MTOs to be submitted to ASEAN
Secretariat for public dissemination on ASEAN website.
Update country specific action plans / national work ASEAN Member 2020 - 2025
plans for implementation of AFAMT States

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