Transport and Trade Linkages: Central Asia & Eastern Europe
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Transcript of Transport and Trade Linkages: Central Asia & Eastern Europe
Transport and Trade Linkages:Central Asia & Eastern Europe
Henry KeraliSenior Transport Specialist The World Bank
Presentation Outline
Central Asia Transport & TradeStatus reviewMain trade corridors & linkagesTrade & transport trends Impediments & suggested reforms
Transport & Trade Facilitation in Southeast Europe (TTFSE)
Current issues, project objectives & key actionsProject components & achievementsRecommendations & Scaling-up
Exports from Central Asia
To: From:
Russia – Asia /
Europe
Europe – West and
South
Asia – Southeast
and Fareast
North America
China
Kazakhstan 44,822,516 8,211,831 574,525 14,191,597 4,113,412
Kyrgyzstan 111,648 7,006 877 530 90,675
Tajikistan Not specified; total export figure is: 736,119
Turkmenistan 12,309 123,062 4,207 5,214 27,470
Uzbekistan 845,247 532,729 83,882 27,316 46,227
Source: TRACECA (Tons/Year) 2001
Imports to Central Asia
Source: TRACECA (Tons/Year) 2001
From: To:
Russia – Asia /
Europe
Europe – West and
South
Asia – Southeast
and Fareast
North America
China
Kazakhstan 9,848,318 290,906 74,756 280,874 262,702
Kyrgyzstan 251,825 20,666 6,312 111,338 61,913
Tajikistan Not specified, total import figure is: 766,180
Turkmenistan 235,633 68 5,209 0 8,000
Uzbekistan 563,866 137,623 71,967 152,217 84,205
Main International Corridors
Southern linkages for Central Asia
Central Asia Corridor Performance
Rail Road Corridors Km Days USD Km Days USD North – Russia (Almaty-Moscow) 4,050 17 1,100 4,391 10 3,350 West – Caucasus (Almaty – Baku) 3,934 18 1,800 4,090 13 5,300 South – Iran (Almaty – Tehran) 3,250 16 1,200 3,120 16 4,650 East – China (Almaty – Urumqi) 1,338 8 1,016 1,330 5 2,150
Rail Road Corridors km/$ $/km km/day km/$ $/km km/day North – Russia (Almaty-Moscow) 3.7 0.26 238.2 1.3 0.76 439.1 West – Caucasus (Almaty – Baku) 2.2 0.46 218.5 0.8 1.30 314.6 South – Iran (Almaty – Tehran) 2.7 0.37 203.1 0.7 1.49 195.0 East – China (Almaty – Urumqi) 1.3 0.76 167.3 0.5 1.90 226.0
Impediments to Trade & Transport
High transportation and handling costs Poor transport infrastructure and transport performanceTrade barriers of neighbouring countries Long and costly customs procedures and other inspectionsLack of coordination between countries in the regionImpediments amount to between 10 – 15% for roads and 2 – 10% for rail Transportation costs amount up to 50%
Suggested Reforms
Need for regional trade and transport policy Diversification of the transport industry including forwarding, handling, containerization, etc Regional harmonization and implementation of customs procedures Promotion of trade and transport standards Common and transparent transit fees Development of rail shuttle services Implementation of international freight handling standards, e.g. TIR, ASYCUDA, etc.
Trade and Transport Facilitation in Southeast Europe(TTFSE)
World Bank supported project
The Issues
The high cost and uncertainties of trade and transport in Southeast Europe are major constraints on economic recovery and development in the region Complicated, opaque and non-standardized border procedures affect the business environment and deter foreign investment (the Paper Curtain) Countries concerned with high level of corruption, smuggling, organized crimeCustoms administrations do not have aligned legislation and procedures with EU standards
Project Objectives
Reduce non-tariff costs to trade and transportReduce smuggling and corruption at border crossings
Actions (1)
Getting donors on board to complement / coordinate / provide assistanceRegional approach/mechanisms:
Regional Forum: Steering Committee Public – Private Partnerships (PPP) Training programs for transport operators, freight-forwarders, importers, exporters TTFSE website Survey of users
Actions (2)
Focus on Customs procedural reformsBorder Inter-agency awareness and cooperation Pilot approach: 27 selected border crossing points and in-land stationsNational Coordinator Performance monitoring: overall Customs and pilot indicators Local Project Teams
Country & Regional Program
Regional Investment Program: US$120 m
WB $78 million US Government (grant) $13 million; Others: France, Austria
Each project was designed to be country specific, but supported the development objectives by the selection of elements under similar components
Common Components
Supporting customs reformStrengthening mechanisms of interaction and cooperation between private and public parties at regional, national, and local levelsDisseminating information and providing training to the private sector
Achievements in 2 ½ years …
Significant reduction of waiting time at the border and inland pilot points (50% and more) leading to US$8million savings annuallyImproved dialogue among Customs administrations through regional consultation and information sharing (8 RSC meetings)“Institutional awareness”: the facilitation role of border agencies vs. revenue collection & control classic rolesTransparent and public Customs performance monitoring system in place
Achievements in 2 ½ years ..
User participation in the evaluation of border agencies’ performance A collaborative culture of partnership between the public and the private sectorsCertified learning opportunities in road transport operations (85 locations and on-line)Detailed information available to the public at: www.TTFSE.org
Achievements in 2 ½ years.
Revenue collected by Customs doubled through risk management and selectivity approachHigher than estimated trade volumes increase (e.g almost doubled in Romania)EC – WB Policy Notes from lessons learned
Scaling-up TTF
REPLICATE the program to other/all borders, and cross-border projects in SEEEXPAND the approach and methods to railways, inland water-ways, ports, airportsSTREAMLINE international transport documentation & linkagesREPLICATE the program to other regions, e.g. Caucasus, Central Asia, South Asia, East Asia, etc.