Goh et al (2008) offer a similar taxonomy, which distinguish between regulatory and nonregulatory barriers to the integration of multimodal transport networks. Regulatory barriers can arise from the cost of exchange at interface (i.e., customs-related barriers) and from cabotage (i.e., restrictions on domestic transport of freight within a foreign country). Nonregulatory barriers can arise due to lack of infrastructure by country or by mode (e.g., road, rail, maritime and air transport infrastructure) as well as from lack of inter-connectivity between modes of transport.
Some of the key issues and challenges facing the transport sector in individual APEC economies are presented in Annex A. Although specific bottlenecks and priorities for action vary among economies there seem to be some common issues that affect the achievement of multimodal connectivity.
For one, the problem of underinvestment in infrastructure is not confined to developing APEC members as this is an issue even in industrialized economies. However, it is recognized that while under-investing leads to congestion; over-investing will lead to wastage. As such, efficient use and maintenance of existing assets require attention too. Related to infrastructure provision is the need for a strategic approach to infrastructure development. Again, in both developed and developing economies, the business sector in particular stressed that transport infrastructure planning be more closely linked with trade and other policies (e.g. land use, tax, foreign investment, etc.). More specifically, a supply chain approach to infrastructure development is seen by industry as a missing element. Failure to have an economy-wide approach and consideration for whole-of-supply chain requirements lead to either under-provision or under-utilization of transport infrastructure. Thus, while inadequacy of infrastructure investment is a constraint, inefficiency of investment is as crucial.