International Conference and Exhibition on Logistics and Supply Chain Trade Logistics in Central Asia 22 Nov 2011, Lahore (Pakistan) Mr. Max EE Principal Consultant Contents 1. Introduction of CAREC 2. CAREC Member Countries 3. CAREC Corridors 4. Implications for Pakistan 2 The Central Asia Regional Economic Cooperation, or CAREC, Program is a partnership of 10 countries, supported by 6 multilateral institutions, working together to promote development through cooperation, leading to accelerated growth and poverty reduction. CAREC’s 6 multilateral partners are: Asian Development Bank (ADB) European Bank for Reconstruction and Development (EBRD) International Monetary Fund (IMF) Islamic Development Bank (IsDB) United Nations Development Programme World Bank Priority areas CAREC helps Central Asia and its neighbors realize their significant potential by promoting regional cooperation in four priority areas: • Transport • Trade Facilitation • Trade Policy 3 • Energy CAREC and PIFFA Corridor Performance Measurement and Monitoring (CPMM) A regional study on the time and cost for cargo transportation in Central Asia. Objectives • To estimate the time and cost of goods movement in Central Asia • To identify the bottlenecks in transport corridors • To promote regional cross border trade and transport 4 CPMM Data Collection Yes Drivers PIFFA CAREC Questions? No Accept Data 5 Time/Cost – Distance Analysis Day 4 Sea transport $400 Day 3 $300 Day 2 $200 Day 1 $100 Wait at sea port Transport to sea port Wait at border crossing/change transport mode Transport to border 500 km 1000 km 1500 km 2000 km 6 Central Asia – Micro View 7 Central Asia – Macro View 8 CAREC Member Countries Azerbaijan Afghanistan China Kazakhstan Kyrgyz Republic Mongolia Pakistan Turkmenistan Tajikistan Uzbekistan 9 Key Indicators Afghanistan Azebaijan China Kazakhstan Kyrgyz Republic Mongolia Pakistan Tajikistan Turkmenistan Uzbekistan Population (millions) 34.38 9.04 1,338.00 16.31 5.36 Real GDP (Billions, USD) $11.75 $51.09 $5,878.00 $142.98 $4.61 GDP Per CapitaRead GDP % Growth $341.77 3.40% $5,651.55 5.00% $4,393.12 10.30% $8,766.40 7.00% $860.07 -1.40% 2.75 173.59 6.87 5.04 28.16 $6.08 $174.80 $5.64 $21.07 $38.98 $2,210.91 $1,006.97 $820.96 $4,180.56 $1,384.23 6.10% 4.40% 3.80% 8.10% 8.50% Source : ADB, World Bank, IMF 10 Key Indicators Export (Billions, Import (Billions, USD) USD) Afghanistan $0.40 $3.33 Azebaijan $14.68 $6.11 China $1,201.00 $1,066.00 Kazakhstan $43.19 $28.40 Kyrgyz Republic $1.17 $2.97 Mongolia $1.67 $2.41 Pakistan $17.55 $31.58 Tajikistan $0.90 $2.56 Turkmenistan $2.15 $5.22 Uzbekistan $5.34 $8.07 Ease of Doing Business 167 54 79 59 44 73 83 139 N.A. 150 Source : ADB, World Bank, IMF 11 Trading Across Border Export Import Documents Time (Days) Cost (USD) Documents Time (Days) Cost (USD) Countries Afghanistan 10 74 $3,545 10 77 $3,830 Azebaijan 8 38 $2,905 10 42 $3,405 China 8 21 $500 5 24 $545 Kazakhstan 9 76 $3,130 12 62 $3,290 Kyrgyz 8 63 $3,210 9 72 $3,450 Republic Mongolia 8 46 $2,265 8 47 $2,400 Pakistan 7 21 $660 8 18 $705 Tajikistan 11 82 $3,850 9 83 $4,550 Turkmenistan Uzbekistan 10 71 $3,150 11 92 $4,650 Source : Doing Business 2012, World Bank 12 1. Western Europe-Western China Corridor 1. Steel products, coal and sulphur are some products commonly exported to the south (CIS) and east (PRC) of Kazakhstan. 2. East-West Corridor 3. North-South Corridor 4. TransMongolian Corridor Road Transport 336 km 736 km 4. Common items transported are cosmetics, food, medicine, and spare parts. Rail Transport Transit : 1,100 km, $2810, 12-14 days Route : Naushki-Sukhbaatar-TolgoitZamyn Uud – Erlian- Tianjin Products : Wood/Timber Carriage : 60-70 tons using rail wagons Import : 1,700 km, $3670, 10-14 days Route : Tianjin-Erlian-Zamyn Uud-UB Products : Manufactured Goods, Food Carriage : 20” or 40” Containers Export: 1,700 km, $2231, 10-14 days Route : UB-Zamyn Uud – Erlian- Tianjin Products : Minerals, Cashmere, Copper Cathodes Carriage : 20” or 40” Containers 5. Southern Corridor 1. VOC is very high in TAJ. For a distance of 600-700km, the VOC is $2,000. 2. In AFG, NATO can sometimes stop traffic causing delays. 6. Northwest Corridor 1. In AFG, the most heavily used route is Hayratan-KabulTorkham. Traffic is both ways. The distance spans 600700km, costs $2,500 and takes 1-2 days. 2. In the Hayratan-KabulTorkham route, common item is scrap iron. In the opposite direction, the common item carried is perishables(food). Results of CPMM Study Common Products Shipped Across Central Asia CC02 Vegetables CC16 Machineries CC13 Industrial Materials CC11 Textiles CC15 Base Metals CC20 Manufactured Items CC17 Vehicles CC04 Food and Beverages CC12 Shoes CC09 Wood CC22 Mized Cargoes CC06 Chemicals CC07 Plastics CC05 Minerals CC01 Animals CC03 Animal Fats CC08 Hides and Skins CC18 Instruments CC10 Pulp and Paper CC14 Precious Stones 16.6% 13.3% 10.3% 10.1% 9.7% 7.5% 5.6% 4.2% 3.8% 3.6% 3.3% 3.2% 2.9% 1.6% 1.3% 1.2% 0.7% 0.5% 0.4% 0.2% 24 Results of CPMM Study Comparisons of Speed by Corridors Corridors Corridors 25 Results of CPMM Study Comparisons of Speed vs Reliability 26 Implications for Pakistan Transport Logistics Terminals Investment Sectors 27 1. Transport 1. Most CAREC member countries are landlocked and do not access to seaports. 2. Can Pakistan serve as a transit country for Central Asia? 3. What Pakistan need to provide, invest and improve to attract more goods flowing through the country? 28 2. Logistics Terminals 1. Where are the bottlenecks in Pakistan transport corridors? 2. Can the construction of new logistics terminals and facilities relieve the bottlenecks? 3. Can one-stop service (single window) for customs clearance be achieved at border crossing points? 29 3. Investment 1. There are many investment opportunities now in Central Asia. 2. Examples : Multi-modal logistics terminals, railways rolling stocks, special economic zones (SEZs). 3. How can Pakistan private companies capture this historical opportunity? 4. Can Public-Private Partnership (PPP) be the way forward? 30 4. Sectors 1. Attractive Investment / Collaboration areas include : • • • • • • • • • Agricultural Mining Real Estate Retail Consumer Goods Security Services Hospitality / Entertainment Trading (Import / Export) Transport / Freight Forwarding 31 Thank You! Max Ee Supply Chain Consultant SCM Analytics Pte Ltd Contact : +65 8138 8700 Email: satica@pacific.net.sg