12. Maritime transport is the most important mode of transportation in terms of the traffic volume in international trade. However, many ASEAN countries, with the exception of Singapore and Malaysia, rank poorly relative to China and Hong Kong in the UNCTAD Liner Shipping Connectivity Index. At the same time, most of the
gateway ports of the ASEAN Member States are already “fairly full” which means that investments in capacity expansion would have to be made in order to meet the growth in trade expected from the deeper economic integration of the ASEAN Member States among themselves and with the rest of the world.
13. Connecting the archipelagic regions of ASEAN requires efficient and reliable shipping routes in order to enhance intra-ASEAN connectivity. The results of the initial impact assessment of the Philippines Nautical Highway (also referred to as Roll-on/roll-off (RoRo)) System demonstrate significant benefits in terms of reduction in transport costs, the creation of new regional links and expansion of regional markets, more efficient shipment of goods and people that have particularly benefited the poorer provinces in the maritime routes, acceleration of local area development, realignment of logistical practices with more frequent deliveries, and greater competitive pressure on the domestic shipping industry (“Bridges Across Oceans: Initial Impact Assessment of the Philippines Nautical Highway System and Lessons for Southeast Asia”, ADB, 2010).