Jan Tomczyk, FCILT

International road International road transport of goods as the transport of goods as the

central element in the central element in the revival of the ancient Silk revival of the ancient Silk

RoadRoadJan Tomczyk, FCILTJan Tomczyk, FCILT

IRU Conference “Prospects of Transport and Transit IRU Conference “Prospects of Transport and Transit Development in Central Asia and the Caspian Region”Development in Central Asia and the Caspian Region”

Ashgabat TurkmenistanAshgabat Turkmenistan1616thth May 2012 May 2012

Jan Tomczyk, FCILT 2IRU Conference 16 May 2012

ApproachApproachYes and NoYes and No

Yes: new roads will help Yes: new roads will help generate more truck exports, generate more truck exports, imports and transit cargoimports and transit cargo

No: new roads alone will not No: new roads alone will not lead to faster truck cargolead to faster truck cargo

Why? Because getting trucks Why? Because getting trucks faster from point A to point B faster from point A to point B using new roads will not help using new roads will not help much if, behind the border much if, behind the border problems and border crossing problems and border crossing point time delays are not point time delays are not solvedsolved Some BCPs have been modernized

but are closed: Kyrgyz Kara Su BCP with Uzbekistan 2011


Recent research (1)Recent research (1) The UNECE Europe Asian Transport Links project finds that The UNECE Europe Asian Transport Links project finds that

border crossing points create major delays for trade and border crossing points create major delays for trade and transport;transport;

The ADB TA7775 project identified several Central Asia The ADB TA7775 project identified several Central Asia border crossing point procedures and management methods border crossing point procedures and management methods making them perform in a sub optimum way;making them perform in a sub optimum way;

A World Bank project in Moldova draft findings indicate sub A World Bank project in Moldova draft findings indicate sub optimum border crossing point procedures and management optimum border crossing point procedures and management methods methods what is the delay % v. total trip time comparison?what is the delay % v. total trip time comparison?

See also the new OSCE-UNECE Handbook of Best See also the new OSCE-UNECE Handbook of Best Practices at Border Crossings for examples of challenges Practices at Border Crossings for examples of challenges and good practice examples and good practice examples http://www.unece.org/trans/publications/wp30/best_practices.html

http://www.unece.org/trans/publications/wp30/best_practices.html


Recent research (2)Recent research (2) To sum up: Trade and transport is obstructed To sum up: Trade and transport is obstructed

not only by hard infrastructure physical not only by hard infrastructure physical obstacles related to geographical constraints obstacles related to geographical constraints and poor infrastructure but also by non physical and poor infrastructure but also by non physical obstacles such as: (i) laws designed to control obstacles such as: (i) laws designed to control borders and trade not facilitate trade; (ii) control borders and trade not facilitate trade; (ii) control policies; (iii) sub optimum procedures and policies; (iii) sub optimum procedures and management methods; and (iv) lack of management methods; and (iv) lack of professionally motivated and trained staffsprofessionally motivated and trained staffs

The message: none of it is fit for purpose which The message: none of it is fit for purpose which means inefficient export supply chains and means inefficient export supply chains and expensive importsexpensive imports


Recent research (3)Recent research (3) Other physical and non physical trade and Other physical and non physical trade and

transport obstacles include: transport obstacles include: 1.1. Lack of accession to international trade and Lack of accession to international trade and

transport agreements; transport agreements; 2.2. Lack of intermodal transport infrastructure; Lack of intermodal transport infrastructure; 3.3. Lack of professional international good Lack of professional international good

practice logistics; and practice logistics; and 4.4. The absence of regional cooperation.The absence of regional cooperation. The result: no predictable export, import and The result: no predictable export, import and

transit supply chains transit supply chains


Recent research (4)Recent research (4) The next UNECE EATL Report Part VII The next UNECE EATL Report Part VII

will include a matrix describing BCP:will include a matrix describing BCP:1.1. ObstaclesObstacles2.2. Causes, andCauses, and3.3. EffectsEffects Each of the three descriptions includes: Each of the three descriptions includes:

BCP human resources, BCP hard BCP human resources, BCP hard infrastructure, BCP management infrastructure, BCP management methods and BCP proceduresmethods and BCP procedures


Recent research (5)Recent research (5) EATL smooth EATL smooth

working BCPs:working BCPs: 1.1. Russian Federation-Russian Federation-

Belarus Belarus 2.2. Moldova-UkraineMoldova-Ukraine3.3. Ukraine-PolandUkraine-Poland4.4. Belarus-Poland, andBelarus-Poland, and5.5. Georgia-Turkey Georgia-Turkey

BCP design good practice example: Sarpi on the Georgia Turkey border. Instead of one exit lane about 8 lanes each with two booths for Customs, built to the height of the truck drivers cab window. Drivers stay in the cab. This type of BCP is check point not a control point because export controls get carried out at the ICD.


Recent research (6)Recent research (6) EATL hard working BCPs:EATL hard working BCPs:1.1. Turkmenistan-AzerbaijanTurkmenistan-Azerbaijan2.2. Russian Federation-KazakhstanRussian Federation-Kazakhstan3.3. Kazakhstan-Kyrgyz RepublicKazakhstan-Kyrgyz Republic4.4. Iran-TurkeyIran-Turkey5.5. Kyrgyz Republic-UzbekistanKyrgyz Republic-Uzbekistan So, what are the challenges and solution So, what are the challenges and solution

opportunities?opportunities?


Recent research (7)Recent research (7) Initial findings of export supply chains shows Initial findings of export supply chains shows

about 34% of time is waiting timeabout 34% of time is waiting time The 34% waiting time consists of: (i) truck The 34% waiting time consists of: (i) truck

waiting outside and waiting inside an Inland waiting outside and waiting inside an Inland Clearance Depot (ICD); (ii) on the border Clearance Depot (ICD); (ii) on the border crossing point approach road waiting to get into crossing point approach road waiting to get into the BCP Customs Control Zonethe BCP Customs Control Zone

One day spent preparing export support One day spent preparing export support documents: “biegunok”documents: “biegunok”


Challenges and solutions (1)Challenges and solutions (1) Professional truck driver visasProfessional truck driver visas Export and import documentsExport and import documents International trade and transport agreementsInternational trade and transport agreements Poor hard infrastructurePoor hard infrastructure Punitive and arbitrary transit chargesPunitive and arbitrary transit charges Intermodal transportIntermodal transport Cost of logisticsCost of logistics Rail transportRail transport Mismatch of public and private interests and Mismatch of public and private interests and

agendasagendas


Truck driver visasTruck driver visas Consulates give truck drivers a visa: not the challengeConsulates give truck drivers a visa: not the challenge The challenge is how and when they give a truck driver The challenge is how and when they give a truck driver

his visahis visa There is no fast track to give truck drivers a visaThere is no fast track to give truck drivers a visa Truck drivers are not tourists or businessmenTruck drivers are not tourists or businessmen No truck driver visas available at BCPs: must apply in a No truck driver visas available at BCPs: must apply in a

consulateconsulate Giving truck drivers their visas might take several daysGiving truck drivers their visas might take several days Truck drivers must also get OVIR Registration even Truck drivers must also get OVIR Registration even

though they do not have an address because drivers though they do not have an address because drivers sleep in their cabssleep in their cabs

Solutions: (i) fast track truck driver visas; (ii) consulates Solutions: (i) fast track truck driver visas; (ii) consulates and immigration must keep a database to identify problem and immigration must keep a database to identify problem drivers allowing the good ones to get their visas in drivers allowing the good ones to get their visas in minutes; and (iii) use the Merchant Seamen ID methodminutes; and (iii) use the Merchant Seamen ID method


Export and import documentsExport and import documents Export bad practice countries include: Tajikistan 11 Export bad practice countries include: Tajikistan 11

documents, Afghanistan and Uzbekistan 10, Belarus and documents, Afghanistan and Uzbekistan 10, Belarus and Kazakhstan 9 while many others insist on 8 documents. Kazakhstan 9 while many others insist on 8 documents. Why? Why?

Good practice example: Georgia 4 documentsGood practice example: Georgia 4 documents Import bad practice examples: Afghanistan, Azerbaijan, Import bad practice examples: Afghanistan, Azerbaijan,

Belarus and Russian Federation insist on 10 documentsBelarus and Russian Federation insist on 10 documents Kazakhstan insists on 12 documentsKazakhstan insists on 12 documents Good practice import documents: Georgia 4 docsGood practice import documents: Georgia 4 docs Getting the export support documents and ICD and BCP Getting the export support documents and ICD and BCP

“biegunoks”: multi “biegunoks” and they think this is “biegunoks”: multi “biegunoks” and they think this is normal!normal!

Lack of electronic Single Window SystemsLack of electronic Single Window Systems


International trade and transport International trade and transport agreementsagreements

Current sub optimum practice is the use of Current sub optimum practice is the use of bilateral inter governmental road transport bilateral inter governmental road transport agreementsagreements

Why is it sub optimum? Because a transit truck Why is it sub optimum? Because a transit truck might cross more than one border for example a might cross more than one border for example a Turkish truck going to Kazakhstan might travel Turkish truck going to Kazakhstan might travel via Turkmenistan or via Russian Federationvia Turkmenistan or via Russian Federation

Bilateral agreements means “agreed contingent” Bilateral agreements means “agreed contingent” of annual truck permits and is contra WTO and of annual truck permits and is contra WTO and GATT Article VGATT Article V

Bilateral agreements fix routes: no route Bilateral agreements fix routes: no route flexibility and so no “free transit”flexibility and so no “free transit”


Poor Road Infrastructure (1)Poor Road Infrastructure (1) Poor quality road pavement gives: (i) slower truck Poor quality road pavement gives: (i) slower truck

speeds=longer time to market; (ii) extra wear and tear of speeds=longer time to market; (ii) extra wear and tear of vehicles; and (iii) road safety challengevehicles; and (iii) road safety challenge

Congested border crossing point approach roads so Congested border crossing point approach roads so trucks might wait 2 to 4 hours or moretrucks might wait 2 to 4 hours or more

Many road border crossing points congested because Many road border crossing points congested because the BCPs are located at geographical choke points such the BCPs are located at geographical choke points such as villages and river bridgesas villages and river bridges

Many road border crossing points are not designed for Many road border crossing points are not designed for the current and future traffics: they are not fit for purposethe current and future traffics: they are not fit for purpose

No ministry or border control agency is accountable for No ministry or border control agency is accountable for BCP approach road congestion and truck queuing for BCP approach road congestion and truck queuing for kilometreskilometres

Good practice: create a BCP agency and make it Good practice: create a BCP agency and make it accountableaccountable


Poor Road Infrastructure (2)Poor Road Infrastructure (2) Some long distance road Some long distance road

routes are on gravel routes are on gravel roadsroads

Gravel roads give safety Gravel roads give safety issues such as visibility issues such as visibility and greater risk of tyre and greater risk of tyre puncturepuncture

Gravel roads result in Gravel roads result in slow truck speedsslow truck speeds

Expensive to convert to Expensive to convert to tarmac pavement tarmac pavement

Truck and trailer travelling along CAREC route in Kazakhstan to Uzbekistan on gravel road; September 2011


Poor Road Infrastructure (3)Poor Road Infrastructure (3) Some long distance road Some long distance road

routes between routes between Kazakhstan and The Kazakhstan and The People’s Republic of People’s Republic of China consists of narrow China consists of narrow poor quality tarmac poor quality tarmac pavementpavement

CorrugationCorrugation Worn and crackedWorn and cracked Segments with no tarmacSegments with no tarmac Trucks wander off road Trucks wander off road

creating multi dirt tracks creating multi dirt tracks

Truck on the road in Kazakhstan from Aktogay to Dostyk/Al Shankou on CAREC routes 1a and 1b;

September 2011


Punitive and arbitrary transit Punitive and arbitrary transit chargescharges

International road transport quotas reduce International road transport quotas reduce competitioncompetition

Road transit fees are a charge on access to the Road transit fees are a charge on access to the market rather than an infrastructure use chargemarket rather than an infrastructure use charge

Buying TIR Carnets might include buying Buying TIR Carnets might include buying insurance from the same TIR associationinsurance from the same TIR association

CMR and TIR trucks treated the same at BCPs: CMR and TIR trucks treated the same at BCPs: same size fits all syndrome same size fits all syndrome

No fast track lanes at border crossing pointsNo fast track lanes at border crossing points


Intermodal transportation (1)Intermodal transportation (1)Caspian Sea ferry links are a challenge:Caspian Sea ferry links are a challenge: No fixed sailing scheduleNo fixed sailing schedule Cannot book truck space on the internetCannot book truck space on the internet No on board insurance No on board insurance Ferries must sail only when full: some trucks in Aktau Ferries must sail only when full: some trucks in Aktau

waited 7 days for a ferrywaited 7 days for a ferry Ferries main business carrying rail tanker wagonsFerries main business carrying rail tanker wagons Ferry operators not looking for new truck businessFerry operators not looking for new truck business Truck driver transit visas might expire while they wait for Truck driver transit visas might expire while they wait for

a ferrya ferry Sub optimum ferries make cargo go by long distance Sub optimum ferries make cargo go by long distance

road via Iran, Turkmenistan and Russian Federationroad via Iran, Turkmenistan and Russian Federation Solutions: (i) eliminate State ferry monopoly; (ii) use Solutions: (i) eliminate State ferry monopoly; (ii) use

intermodal road and maritime good practices; (iii) develop intermodal road and maritime good practices; (iii) develop through ratesthrough rates


Intermodal transportation (2)Intermodal transportation (2)

Good practice example

Almaty Logistics Centre complete with A Class warehouse and rail to road fork lift trucks to lift containers

Bad practice example

Three bags at a time. Old wooden box car rail wagon means cargo must be reloaded into trucks by hand not by fork lift


Logistics costsLogistics costs Landlocked countries depend on trade corridors and the Landlocked countries depend on trade corridors and the

performance of export supply chains in neighbouring performance of export supply chains in neighbouring countries: a chain is as good as all the links are good-countries: a chain is as good as all the links are good-one weak link and the whole supply chain is sub one weak link and the whole supply chain is sub optimumoptimum

High truck costs because of long distances, andHigh truck costs because of long distances, and Unpredictable transport times and rent seekingUnpredictable transport times and rent seeking Lack of reliability leads to lack of investmentLack of reliability leads to lack of investment Lack of reliability gives high warehouse inventory levels: Lack of reliability gives high warehouse inventory levels:

Europe 3 to 4 days – Central Asia 3 to 4 weeksEurope 3 to 4 days – Central Asia 3 to 4 weeks No Customs due diligence low risk programsNo Customs due diligence low risk programs No trade and transport facilitation benchmarkingNo trade and transport facilitation benchmarking


Rail transportRail transportMain railway delays:Main railway delays:1.1. Railway securityRailway security2.2. Waiting in queueWaiting in queue3.3. Change of railways gaugeChange of railways gauge4.4. Old track and old ballast=slow train timesOld track and old ballast=slow train times5.5. Lack of modern signallingLack of modern signalling6.6. Lack of freight yard computerizationLack of freight yard computerization7.7. Lack of tracking and tracing using IT methodsLack of tracking and tracing using IT methods8.8. Old locos and old wooden box car wagonsOld locos and old wooden box car wagons9.9. Lack of interest using modern rail management Lack of interest using modern rail management

methods: witness Kazakhstan wheat exported in methods: witness Kazakhstan wheat exported in hoppers and not in 20 foot lined 20 foot ISO hoppers and not in 20 foot lined 20 foot ISO Containers. Moldova exports wheat to Taiwan using 20 Containers. Moldova exports wheat to Taiwan using 20 foot lined containersfoot lined containers


Mismatch of public and private Mismatch of public and private interests and agendasinterests and agendas

The challenge: public bodies are control orientated not designed to The challenge: public bodies are control orientated not designed to give facilitation-the Josef Syndromegive facilitation-the Josef Syndrome

ICDs and BCPs display control procedures because that is the way ICDs and BCPs display control procedures because that is the way it has always been done: the Customs Code Rules OK but it is not a it has always been done: the Customs Code Rules OK but it is not a trade and transport facilitation documenttrade and transport facilitation document

The challenge: private companies are business driven and must The challenge: private companies are business driven and must manage sub optimum export, import and transit supply chainsmanage sub optimum export, import and transit supply chains

Government must balance security with safety and trade and Government must balance security with safety and trade and transport facilitation but often use this pretext to control instead of transport facilitation but often use this pretext to control instead of facilitating legitimate tradefacilitating legitimate trade

Lack of trust between control agencies and the new rich tradersLack of trust between control agencies and the new rich traders The extra trade and transport costs are past onto consumersThe extra trade and transport costs are past onto consumers


SolutionsSolutions Please read Part VII in the next UNECE Please read Part VII in the next UNECE

Europe Asia Transport Links Report which Europe Asia Transport Links Report which describes many solutions how to reduce describes many solutions how to reduce land border crossing point timesland border crossing point times

Please read the new OSCE-UNECE Please read the new OSCE-UNECE Handbook of Best Practices at Border Handbook of Best Practices at Border Crossings: A Trade Facilitation Crossings: A Trade Facilitation PerspectivePerspective


Rahmiet, Spaciba, Thank YouRahmiet, Spaciba, Thank YouThanking the following Thanking the following

experts who helped experts who helped with the research with the research

findings included in findings included in this presentation: this presentation:

Nurseit Niyazbekov, Nurseit Niyazbekov, Valeriu Garstea and Valeriu Garstea and

Eugeniu HresteiEugeniu Hrestei

QUESTIONS?QUESTIONS?

Tazhen BCP Kazakhstan with Uzbekistan. Trucks might wait up to 3 days in the neutral zone. Trucks use this route from Europe to Afghanistan. Over 20 truck-trailers identified waiting in the neutral zone

Jan Tomczyk, FCILT

Documents

Transcript of Jan Tomczyk, FCILT