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4.2 Green Corridor Governance

The purpose of this section is to present issues related to the governance and operation of green corridors. Both these issues are linked to the management of the corridor structures. The term management, of course, implies some form of control but, given the diversity of stakeholders involved, this is easier said than done. The problem is further complicated by the fact that, despite the recent establishment of numerous corridors with such a self-claimed label, in practice green corridors have not yet moved far beyond the stage of inception. In this respect, the present section handles practical matters but in a rather visionary context.

The activities of a transportation corridor involve a number of government agencies and a diverse set of transportation and logistics service providers carrying a wide variety of operations. As a result, the management of a corridor is generally performed by organizations established by government, the private sector, or jointly to plan development, disseminate information and coordinate stakeholder efforts. The appropriate structure for corridor management depends on the nature of the corridor and the specific functions to be managed.

4.2.1 Corridor Functions

Having examined a number of international transportation corridors in the framework of a World Bank project, Arnold (2006) identifies a number of general functions requiring management oversight. They can be grouped in the following categories:

• Infrastructure and facilities, including links and nodes along the routes, are developed and funded primarily by the public sector but increasingly constructed and maintained by the private sector. The role of management is to guide the planning and procurement of these assets. Its goal is to ensure that these assets are:

– of sufficient capacity to meet projected demand,

– designed to provide efficient movement of cargo along the infrastructure and through the facilities,

– constructed and maintained so as meet required standards,

– used efficiently, and

– fully utilized.

• Transportation and logistics services. Increasingly these activities are undertaken by the private sector in a competitive market with costs recovered through user charges. The objective of the managers of individual services is to capture significant market share by offering a competitive combination of cost, time and reliability. To the extent that corridor management is responsible for overseeing these services, its objective should be to promote more efficient services, usually by encouraging competition but often by allowing vertical and horizontal integration. Addressing security concerns and encouraging the use of ICT and risk management are additional objectives.

• Regulatory procedures that affect the movement of goods in the corridor and

the transportation and logistics providers operating in the corridor. Rarely is corridor management involved in the enforcement of the regulations or even in the enactment of these regulations. Instead it performs an advocacy role discouraging excessive regulation and reforming regulation that leads to inefficiencies. The management can encourage reform by supporting efforts to harmonize procedures across borders, to simplify documentation and procedures, and to enhance transparency. In cases involving trade and transit agreements, corridor management can be engaged in their periodic revisions and in defining the regulations ensuring their proper implementation.

• Monitoring corridor performance. Corridor management is the appropriate entity for monitoring and coordination efforts aiming at improving its performance. This subject has been discussed in Chap. 3 of this book.

These corridor functions require different management approaches. They can involve the public sector, the private sector or both. The first involves provision of assets in a market with limited competition and partial cost recovery, the second provision of services in a competitive market with full cost recovery, while the third deals with enforcement of laws/regulations and tax collection.

More recently, Engstr€om (2011) reports that the Swedish Transport Administra-

tion views green corridors projects/initiatives as being divided into three main categories that interact and complement each other. These categories promote the view of logistics/transports as a system of integrated services and properties aiming

Fig. 4.1 The three pillars of green corridors. Source: Engstr€om (2011)

at increased efficiency and a reduced negative ecologic impact. The three parts, shown in Fig. 4.1, are:

• Corridors (links and nodes): A corridor project is a geographic subset of a designated main European Green Corridor. It is based on the needs of an efficient transportation infrastructure in a physical and/or communicative aspect. A corridor project promotes optimal use of transportation modes including transshipment nodes (hubs, cross docks etc.). It can be of either a national or international character.

• Transport techniques: Projects related to transportation techniques encompass features and properties of various types of equipment used in transportation operation. The main focus is on the different transportation modes, transportation/load units and transfer/reloading of goods between different modes. Examples are techniques related to trucks, trailers, railway engines, rail wagons, ships, port handling, containers, packaging, cranes, stackers etc.

• Transport/logistics solutions: Refers to complete solutions which integrate different partners and stakeholders mutually forming a business case that promotes efficiency and lowers environmental impact. In general terms, it is a complete freight logistic/transportation setup that meets a shipper's demand often linked to a new business model.

Although not seen as a 'pillar' in the Swedish schematic, the underlying policies and regulations are also recognized as a prerequisite for the implementation of green corridors.

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