Transport and Trade Linkages:
Central Asia & Eastern Europe
Henry Kerali
Senior Transport Specialist
The World Bank
Presentation Outline
Central Asia Transport & Trade
Status review
Main trade corridors & linkages
Trade & transport trends
Impediments & suggested reforms
Transport & Trade Facilitation in Southeast
Europe (TTFSE)
Current issues, project objectives & key actions
Project components & achievements
Recommendations & Scaling-up
Exports from Central Asia
To:
From:
Russia –
Asia /
Europe
Europe –
Asia –
West and
Southeast
South 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
Not specified; total export figure is: 736,119
Tajikistan
Turkmenistan
Uzbekistan
12,309
123,062
4,207
5,214
27,470
845,247
532,729
83,882
27,316
46,227
Source: TRACECA (Tons/Year) 2001
Imports to Central Asia
From:
To:
Kazakhstan
Kyrgyzstan
Tajikistan
Turkmenistan
Uzbekistan
Russia –
Asia /
Europe
Europe –
Asia –
West and
Southeast
South and Fareast
9,848,318
251,825
North
America
290,906
74,756
280,874
20,666
6,312
111,338
Not specified, total import figure is: 766,180
235,633
68
5,209
0
563,866
137,623
71,967
152,217
Source: TRACECA (Tons/Year) 2001
China
262,702
61,913
8,000
84,205
Main International Corridors
Southern linkages for Central Asia
Central Asia Corridor Performance
Corridors
North – Russia (Almaty-Moscow)
West – Caucasus (Almaty – Baku)
South – Iran (Almaty – Tehran)
East – China (Almaty – Urumqi)
Corridors
North – Russia (Almaty-Moscow)
West – Caucasus (Almaty – Baku)
South – Iran (Almaty – Tehran)
East – China (Almaty – Urumqi)
Km
4,050
3,934
3,250
1,338
Rail
Days
17
18
16
8
km/$
3.7
2.2
2.7
1.3
Rail
$/km km/day
0.26
238.2
0.46
218.5
0.37
203.1
0.76
167.3
USD
1,100
1,800
1,200
1,016
Km
4,391
4,090
3,120
1,330
Road
Days
10
13
16
5
km/$
1.3
0.8
0.7
0.5
Road
$/km km/day
0.76
439.1
1.30
314.6
1.49
195.0
1.90
226.0
USD
3,350
5,300
4,650
2,150
Impediments to Trade & Transport
High transportation and handling costs
Poor transport infrastructure and transport
performance
Trade barriers of neighbouring countries
Long and costly customs procedures and other
inspections
Lack of coordination between countries in the
region
Impediments 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 crime
Customs administrations do not have aligned
legislation and procedures with EU standards
Project Objectives
Reduce non-tariff costs to trade and
transport
Reduce smuggling and corruption at
border crossings
Actions (1)
Getting donors on board to complement /
coordinate / provide assistance
Regional 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 reforms
Border Inter-agency awareness and
cooperation
Pilot approach: 27 selected border crossing
points and in-land stations
National 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 reform
Strengthening mechanisms of interaction
and cooperation between private and
public parties at regional, national, and
local levels
Disseminating 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 annually
Improved 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 roles
Transparent 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 sectors
Certified learning opportunities in road
transport operations (85 locations and online)
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
approach
Higher 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 SEE
EXPAND the approach and methods to
railways, inland water-ways, ports, airports
STREAMLINE international transport
documentation & linkages
REPLICATE the program to other regions,
e.g. Caucasus, Central Asia, South Asia,
East Asia, etc.