Resource information
Landlocked Bhutan faces unique
challenges, and opportunities as it pursues the development
of its transport sector into the 21st century. Bhutan's
population growth rate is high, rural-urban migration is
accelerating, and, fueled by sustained economic growth, the
country is urbanizing rapidly, giving rise to an expanding
urban middle class, with rising expectations of well-paid
employment, accessible services, and consumption potential.
However, accessibility to a large measure depends on
availability of reliable, and affordable transportation.
Poor rural access is synonymous with rural isolation, and
poverty, while high external and domestic transport costs
constrain the country's economic and social
development. Transportation poses a considerable cost
disadvantage to business and commercial undertakings; road
transport is slow and regularly disrupted by landslides and
flooding; air transport is costly and erratic. Costly
transport is a major factor constraining the development of
tourism, horticultural exports, and agro-processing and
wood-based industries. Sector issues discussed in this
report emerge from a detailed assessment of the transport
system, and an analysis of public expenditures. It discusses
the strategy for improving rural accessibility, and the
central role of roads, and motorized transport for
integrating remote regions and communities into the national
economy; access to regional and global markets, to include
technical support for development, operation, and management
of transport logistics, establishment of a dry port in
Phuentsholing with reefer storage facilities, and,
internationally competitive Druk air cargo rates, especially
for exports of perishable, and high value agricultural
products; transport sector planning and coordination, which
includes specific policy, planning, and investment
recommendations for roads, air transport, urban transport,
and road transport services. It is recommended to consider
recasting the proposed Transport Master Plan as a National
Transport Strategy and Policy Review to identify and analyze
emerging challenges, and constraints in the transport
sector; recommend appropriate strategies, and policies to
address these concerns; and, prepare an implementation plan
for sector modernization, including policy and institutional reforms.
