Overview of infrastructure and operational status along ... · Hungnam 4 Rajin 3 Sonbong 2 Wonsan 2...

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Expert Group Meeting on Strengthening Connectivity between the Republic of Korea and Europe through the Eurasian Transport Corridors Beijing, 28-Feb-2019 Edouard Chong Economic Affairs Officer Transport Division Overview of infrastructure and operational status along the Eurasian Transport Corridors connecting the Republic of Korea to Europe

Transcript of Overview of infrastructure and operational status along ... · Hungnam 4 Rajin 3 Sonbong 2 Wonsan 2...

  • Expert Group Meeting on Strengthening Connectivity between

    the Republic of Korea and Europe

    through the Eurasian Transport Corridors

    Beijing, 28-Feb-2019

    Edouard Chong

    Economic Affairs Officer

    Transport Division

    Overview of infrastructure and operational status

    along the Eurasian Transport Corridors connecting

    the Republic of Korea to Europe

  • BACKGROUND:

    ESCAP INITIATIVES TO ENHANCE REGIONAL CONNECTIVITY

    • Inter Governmental Agreements on Asian Highway, Trans-Asian Railway

    Networks and the Dry Ports of international importance

    • Transport facilitation is inherently challenging:

    • Involves numerous countries, government agencies and local

    authorities

    • Different institutional environment

    • Implementation capacities

    • ESCAP transport facilitation framework, tools and models and other

    intergovernmental agreements

  • STRENGTHENING CONNECTIVITY BETWEEN THE REPUBLIC OF KOREA AND

    EUROPE THROUGH THE EURASIAN TRANSPORT CORRIDORS

    Infrastructure:

    • Identify appropriate transport corridors

    • Review the infrastructure status along the corridors

    • Identify gaps: missing links, substandard infrastructure and technical challenges etc.

    • Compile information on financing options for infrastructure investments

    Operational:

    • Compile information on operational gaps and cross-borders challenges

    • Review current institutional mechanism and legal instruments for cross-border transport operation

    • Provide recommendations on transport facilitation

    • Propose a more effective and efficient institutional mechanism for smooth operation of the corridors

    Brief analysis on trade and transport flows between the Korean Peninsula and Europe

  • UNESCAP EURASIAN TRANSPORT CORRIDORS

  • EURASIAN NORTHERN TRANSPORT CORRIDORS

    – Intercontinental & multimodal routes – On the Asian Highway and Trans-Asian Railway networks – 23 countries – 48 inland border crossing points – 36 seaports

    NORTHERN CORRIDOR

    CENTRAL CORRIDOR

    SOUTHERN CORRIDOR

  • OVERLAPPING INITIATIVES ALONG THE

    MAIN ROUTES OF NORTHERN CORRIDORS

  • OVERLAPPING INITIATIVES ALONG THE

    MAIN ROUTES OF NORTHERN CORRIDORS

  • RAILWAY NETWORK

  • RAILWAY NETWORK STATUS ALONG

    EURASIAN NORTHERN TRANSPORT CORRIDORS

  • BORDER CROSSING AREAS AT THE KOREAN PENINSULA

    Source: Kim et al, 2003

  • RAILWAY OPERATIONS

    No missing links in railway network on Eurasian Northern Transport Corridors

    Operational challenges remain:

    • Technical aspects such as: differences in train length and fleet; railways electricity infrastructure, signal

    systems; axle load; cargo trains speed etc.

  • RAILWAY OPERATIONS

    Operational solutions ….

    • Transhipment of freight by manual or mechanical means from wagons of one gauge to wagons of another

    gauge directly or indirectly through platform, yard, storage or warehouse, or the transfer of passengers from

    one train to another train.

    • Bogie changing is the operation by which wagons are lifted on a set of jacks, bogies of one gauge rolled out

    and bogies of the other gauge rolled in.

    • Use of wagons with ‘variable-gauge’ bogies enables wagons to be pulled along a special transition track at

    reduced speed. During the process, the distance between wheels is adjusted from one track gauge to another.

    • Provision of two different track gauges is made on a single track foundation through the insertion of a third rail

    • Conversion of tracks of different gauges to a single gauge standard is to build or re-build tracks in the same

    standard.

    .

    Operational challenges remain:

    • Different gauges: wide gauge of 1,520 mm vs. standard gauge of 1,435mm

  • RAILWAY OPERATIONS

    Operational challenges remain:

    Imbalance of rail cargo container flows – availability of wagons

    Tariffs: non-competitive tariffs, fluctuations or sudden tariff adjustments; subsidies

    Complexity of documentation requirements and transit time

    o Risks relating to different administrative rules and documentation requirements.

    o With regard to customs clearance, occasional difficulties in this area have been reported.

    Delays of trains at border crossings are mostly caused by significant time required by control authorities, such as Customs,

    immigration and quarantine, to process and clear documents and inspect goods. A survey made by OSJD indicated that 34% of

    time of international trains was spent for border crossing formalities.

    According to the Coordinating Council of Trans-Siberian Transportation (CCTT), main reasons for cargo delays or detentions at

    borders along the Eurasian corridors route are:

    - Incorrect execution of commercial/carriage documents (56%)

    - Untimely provision of cargo consignment by empty rolling stock (12%)

    - Customs procedures (9%)

  • RAILWAY CONTAINERS THROUGH MONGOLIA

    Documents issues:

    • Containers are arriving with incomplete documents

    • Accompanying documents arrive in English but on the

    Russian side, translation into Russian language is

    mandatory.

    Wagon supply issues:

    • Wagon shortage

    • Dilapidated wagons

    • Weakness in management: group of wagons for block train coming in separate

    groups; causes delays and sometimes confusions

    • Single track – delays and lack of punctuality will impact traffic flows in both

    directions

    Source: Solongo 2017 presentation at UNESCAP

    Average speed 36 km/h

  • ROAD NETWORK

  • ASIAN HIGHWAY NETWORK STATUS ALONG

    EURASIAN NORTHERN TRANSPORT CORRIDORS

  • INTERNATIONAL ROAD OPERATIONS

    Traffic rights and transport permits

  • INTERNATIONAL ROAD OPERATIONS

    Operational issues: lack of standardized weights and dimensions for road freight vehicles

    Maximum Width,

    mm

    Maximum

    Height,

    mm

    Maximum Length, mm Maximum Gross

    Weight, ton

    Maximum Axle

    Load, ton

    Rigid

    truck

    Articulated

    Vehicle/Road

    Train

    Rigid

    Vehicle,

    ton

    Articulated

    Vehicle/Road

    Train, ton

    Group

    Axles,

    ton

    Single

    Axle

    Load,

    ton

    Republic of

    Korea1

    2,500x 4,000 .. 16,700 .. 40 .. 10

    Democratic

    People’s

    Republic of

    Korea

    .. .. .. .. .. .. .. ..

    China2 2,550 4,000 12,000 20,000 31 49 24.00i 11.50iii

    Mongolia3 2,500 4,000 12,000 18,750 ..

    25

    44 .. 11.5

    Kazakhstan4 2,550ii 4,000 12,000 20,000 25 44 27 10

    Russian

    Federation5

    2,550ii 4,000 12,000 20,000 35 44 26.00i 11.5

    EU6 2,550ii 4,000 12,000 18,750 32 44 24.00i 11.5

    EAEU7 2,550ii 4,000 12,000 20,000 32 40 .. 11.5

    1 Reference Data to the Republic of Korea Motor Vehicle Management Act No.14546, Enforcement Date 18 July

    2017’. 2 ‘People’s Republic of China National Standard GB 1589-2016: Limits of Dimensions, Axle Load and Masses for

    Motor Vehicles, Trailers and Combinations Vehicles.’, 2016. 3 Mongolian State Standard: General Requirement for Technical Condition of Road Vehicles MNS 4598:2011

    (Code: 43.040.01)’. 4 Order of the Minister of the Investments and Development of the Republic of Kazakhstan No.342 from 26 March

    2015 “On Approval of the Permissible Parameters of the Road Vehicles to Be Used on the Roads of the Republic of

    Kazakhstan”’. 5 Decree of the Government of the Russian Federation "On Approval of the Rules on Transport of Cargoes by Road

    Transport No.272 from 15 April 2011 as Amended 22 December 2016.’ 6 ‘Council Directive 96/53/EC of 25 July 1996 Laying down for Certain Road Vehicles Circulating within the

    Community the Maximum Authorized Dimensions in National and International Traffic and the Maximum

    Authorized Weights in International Traffic’; ‘Directive (EU) 2015/719 of the European Parliament and of the

    Council of 29 April 2015 Amending Council Directive 96/53/EC Laying down for Certain Road Vehicles

    Circulating within the Community the Maximum Authorised Dimensions in National and International Traffic and

    the Maximum Authorised Weights in International Traffic’. 7 Annex 5 to the ‘Technical Regulations ТР ТС 018/2011 of the Customs Union “On Safety of the Wheeled

    Transport Vehicles” Approved by the Decision of the Custom Union’.

  • INTERNATIONAL ROAD OPERATIONS

    Operational issues: lack of standardized weights and dimensions for road freight vehicles

  • INTERNATIONAL ROAD OPERATIONS

    Operational issues: differences in emissions standards

  • INTERNATIONAL ROAD OPERATIONS

    Operational issues: different documents required at the border-crossings:

    China Kazakhstan

    • Filing Form for International Road Transport Vehicle • Customs Declaration Form for temporary admission of the

    vehicle

    • Customs Vehicle Inspection Report • Passport or any other identification document of a person

    undertaking customs clearance procedures

    • Four color pictures of the vehicle

    • Guarantee for vehicle required

    • Advance electronic information about vehicle and cargo at

    least one hour before arrival to the border crossing point

    China Mongolia

    • Filing Form for International Road Transport Vehicle • Customs Declaration for Temporary Importation of Vehicle

    • Customs Vehicle Inspection Report • Vehicle Registration Certificate

    • Four color pictures of the vehicle • National Vehicle Registration Plate and the Distinguishing

    Sign.

    • Guarantee for vehicle required

    • Advance electronic information about vehicle and cargo at

    least one hour before arrival to the border crossing point

    Russian Federation Kazakhstan

    No documents required – Eurasian Economic Union No documents required – Eurasian Economic Union

    Customs requirements for vehicles

  • INTERNATIONAL ROAD OPERATIONS

    Operational issues: examples of documents required at the border-crossings

    Examples of required documents by transport

    authorityExamples of required documents for cargo

    • Vehicle Registration Certificate Customs Declaration Form for Importing Goods

    • Vehicle Inspection Certificate • Trading Contract

    • Cross-border Transport Permit • Consignment Note

    • Third Party Liability Vehicle Insurance Certificate • Authorization and Entrustment Agreement for Customs

    Clearance

    • Valid Driving License Commercial Invoice

    • National Vehicle Registration Plate and the Distinguishing

    Sign• Packing List

    • Veterinary Certificate, Phytosanitary Certificate

  • INTERNATIONAL ROAD OPERATIONS

    Other operational issues:

    • Designated transport routes

    • Visa requirements for drivers and crew

    • Insurance requirements

    • Diver’s license

  • DRY-PORTS AND SEA-PORTS

    Country Seaport Turnover (million tons)

    Dalian 423

    Yingkou 331

    Tianjin 540

    Lianyungang 196

    Nampo 14

    Chongjin 8

    Hungnam 4

    Rajin 3

    Sonbong 2

    Wonsan 2

    Busan 292

    Gwangyang 211

    Incheon 97

    Pyeongtaek-Dangjin 92

    Pohang 91

    Ulsan 71

    Vladivostok 15

    Nahodka 21

    Vostochny 58

    St. Petersburg 61

    China

    Democratic People’s

    Republic of Korea

    Republic of Korea

    Russian Federation

  • SEA-LAND CONNECTIVITY

    REPUBLIC OF KOREA – EUROPE AND CENTRAL ASIA

    Short Sea Shipping ->

    • Trans-Siberia Railway

    • Trans-Mongolia Railway

    • Trans-China Railway

    Artic Sea Route

    Transport Corridors

  • SEA-LAND CONNECTIVITY

    REPUBLIC OF KOREA – MONGOLIA

    Source: Adapted from Presentation by SJ Logistics, Seoul, 14 April 2016

  • SEA-LAND CONNECTIVITY:

    REPUBLIC OF KOREA – ASEAN AND SOUTH ASIA

  • IN SHORT ….

    Railway sections in poor condition

    Dilapidated railway rolling stock

    Ope

    ratio

    nal g

    aps Railways interoperability

    Infra

    stru

    ctur

    e ga

    ps

    Multiple railway gauges

    Road sections of Asian Highway Class III and below

    Lack of modern inland logistics intermodal facilities

    Stretches of non-electrified and single-tracked railway lines

    Missing railway links

    Ope

    ratio

    nal g

    aps Railways interoperability

    Mismatch in bilateral regulations for international road transport

    Delays at border crossings due to infrastructure or procedures

    high/inflexible tariffs

  • Thank you!

    Edouard Chong

    Economic Affairs Officer – Transport Division

    [email protected]

    mailto:[email protected]