International road
transport of goods as the
central element in the
revival of the ancient Silk
Road
Jan Tomczyk, FCILT
IRU Conference “Prospects of Transport and Transit
Development in Central Asia and the Caspian Region”
Ashgabat Turkmenistan
16th May 2012
Approach
Yes and No
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Yes: new roads will help
generate more truck exports,
imports and transit cargo
No: new roads alone will not
lead to faster truck cargo
Why? Because getting trucks
faster from point A to point B
using new roads will not help
much if, behind the border
problems and border crossing
point time delays are not
solved
Jan Tomczyk, FCILT
Some BCPs have been modernized
but are closed: Kyrgyz Kara Su BCP
with Uzbekistan 2011
IRU Conference 16 May 2012
2
Recent research (1)
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The UNECE Europe Asian Transport Links project finds that
border crossing points create major delays for trade and
transport;
The ADB TA7775 project identified several Central Asia
border crossing point procedures and management methods
making them perform in a sub optimum way;
A World Bank project in Moldova draft findings indicate sub
optimum border crossing point procedures and management
methods what is the delay % v. total trip time comparison?
See also the new OSCE-UNECE Handbook of Best
Practices at Border Crossings for examples of challenges
and good practice examples
http://www.unece.org/trans/publications/wp30/best_practices.html
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
3
Recent research (2)
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To sum up: Trade and transport is obstructed
not only by hard infrastructure physical obstacles
related to geographical constraints and poor
infrastructure but also by non physical obstacles
such as: (i) laws designed to control borders and
trade not facilitate trade; (ii) control policies; (iii)
sub optimum procedures and management
methods; and (iv) lack of professionally
motivated and trained staffs
The message: none of it is fit for purpose which
means inefficient export supply chains and
expensive imports
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
4
Recent research (3)
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1.
2.
3.
4.
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Other physical and non physical trade and
transport obstacles include:
Lack of accession to international trade and
transport agreements;
Lack of intermodal transport infrastructure;
Lack of professional international good
practice logistics; and
The absence of regional cooperation.
The result: no predictable export, import and
transit supply chains
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
5
Recent research (4)
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2.
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The next UNECE EATL Report Part VII
will include a matrix describing BCP:
Obstacles
Causes, and
Effects
Each of the three descriptions includes:
BCP human resources, BCP hard
infrastructure, BCP management
methods and BCP procedures
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
6
Recent research (5)
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2.
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EATL smooth
working BCPs:
Russian FederationBelarus
Moldova-Ukraine
Ukraine-Poland
Belarus-Poland, and
Georgia-Turkey
Jan Tomczyk, FCILT
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.
IRU Conference 16 May 2012
7
Recent research (6)
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2.
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EATL hard working BCPs:
Turkmenistan-Azerbaijan
Russian Federation-Kazakhstan
Kazakhstan-Kyrgyz Republic
Iran-Turkey
Kyrgyz Republic-Uzbekistan
So, what are the challenges and solution
opportunities?
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
8
Recent research (7)
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Initial findings of export supply chains shows
about 34% of time is waiting time
The 34% waiting time consists of: (i) truck
waiting outside and waiting inside an Inland
Clearance Depot (ICD); (ii) on the border
crossing point approach road waiting to get into
the BCP Customs Control Zone
One day spent preparing export support
documents: “biegunok”
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
9
Challenges and solutions (1)
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Professional truck driver visas
Export and import documents
International trade and transport agreements
Poor hard infrastructure
Punitive and arbitrary transit charges
Intermodal transport
Cost of logistics
Rail transport
Mismatch of public and private interests and
agendas
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
10
Truck driver visas
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Consulates give truck drivers a visa: not the challenge
The challenge is how and when they give a truck driver
his visa
There is no fast track to give truck drivers a visa
Truck drivers are not tourists or businessmen
No truck driver visas available at BCPs: must apply in a
consulate
Giving truck drivers their visas might take several days
Truck drivers must also get OVIR Registration even
though they do not have an address because drivers
sleep in their cabs
Solutions: (i) fast track truck driver visas; (ii) consulates
and immigration must keep a database to identify
problem drivers allowing the good ones to get their visas
in minutes; and (iii) use the Merchant Seamen ID
method
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
11
Export and import documents
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Export bad practice countries include: Tajikistan 11
documents, Afghanistan and Uzbekistan 10, Belarus and
Kazakhstan 9 while many others insist on 8 documents.
Why?
Good practice example: Georgia 4 documents
Import bad practice examples: Afghanistan, Azerbaijan,
Belarus and Russian Federation insist on 10 documents
Kazakhstan insists on 12 documents
Good practice import documents: Georgia 4 docs
Getting the export support documents and ICD and BCP
“biegunoks”: multi “biegunoks” and they think this is
normal!
Lack of electronic Single Window Systems
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
12
International trade and transport
agreements
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Current sub optimum practice is the use of
bilateral inter governmental road transport
agreements
Why is it sub optimum? Because a transit truck
might cross more than one border for example a
Turkish truck going to Kazakhstan might travel
via Turkmenistan or via Russian Federation
Bilateral agreements means “agreed contingent”
of annual truck permits and is contra WTO and
GATT Article V
Bilateral agreements fix routes: no route
flexibility and so no “free transit”
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
13
Poor Road Infrastructure (1)
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Poor quality road pavement gives: (i) slower truck
speeds=longer time to market; (ii) extra wear and tear of
vehicles; and (iii) road safety challenge
Congested border crossing point approach roads so
trucks might wait 2 to 4 hours or more
Many road border crossing points congested because
the BCPs are located at geographical choke points such
as villages and river bridges
Many road border crossing points are not designed for
the current and future traffics: they are not fit for purpose
No ministry or border control agency is accountable for
BCP approach road congestion and truck queuing for
kilometres
Good practice: create a BCP agency and make it
accountable
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
14
Poor Road Infrastructure (2)
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Some long distance road
routes are on gravel
roads
Gravel roads give safety
issues such as visibility
and greater risk of tyre
puncture
Gravel roads result in
slow truck speeds
Expensive to convert to
tarmac pavement
Jan Tomczyk, FCILT
Truck and trailer travelling along
CAREC route in Kazakhstan to
Uzbekistan on gravel road;
September 2011
IRU Conference 16 May 2012
15
Poor Road Infrastructure (3)
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Some long distance road
routes between
Kazakhstan and The
People’s Republic of
China consists of narrow
poor quality tarmac
pavement
Corrugation
Worn and cracked
Segments with no tarmac
Trucks wander off road
creating multi dirt tracks
Jan Tomczyk, FCILT
Truck on the road in Kazakhstan from
Aktogay to Dostyk/Al Shankou on
CAREC routes 1a and 1b;
September 2011
IRU Conference 16 May 2012
16
Punitive and arbitrary transit
charges
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International road transport quotas reduce
competition
Road transit fees are a charge on access to the
market rather than an infrastructure use charge
Buying TIR Carnets might include buying
insurance from the same TIR association
CMR and TIR trucks treated the same at BCPs:
same size fits all syndrome
No fast track lanes at border crossing points
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
17
Intermodal transportation (1)
Caspian Sea ferry links are a challenge:
 No fixed sailing schedule
 Cannot book truck space on the internet
 No on board insurance
 Ferries must sail only when full: some trucks in Aktau
waited 7 days for a ferry
 Ferries main business carrying rail tanker wagons
 Ferry operators not looking for new truck business
 Truck driver transit visas might expire while they wait for
a ferry
 Sub optimum ferries make cargo go by long distance
road via Iran, Turkmenistan and Russian Federation
 Solutions: (i) eliminate State ferry monopoly; (ii) use
intermodal road and maritime good practices; (iii)
develop through rates
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
18
Intermodal transportation (2)
Good practice example
Bad practice example
Almaty Logistics Centre complete
with A Class warehouse and rail to
road fork lift trucks to lift containers
Three bags at a time. Old wooden
box car rail wagon means cargo must
be reloaded into trucks by hand not
by fork lift
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
19
Logistics costs
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Landlocked countries depend on trade corridors and the
performance of export supply chains in neighbouring
countries: a chain is as good as all the links are goodone weak link and the whole supply chain is sub
optimum
High truck costs because of long distances, and
Unpredictable transport times and rent seeking
Lack of reliability leads to lack of investment
Lack of reliability gives high warehouse inventory levels:
Europe 3 to 4 days – Central Asia 3 to 4 weeks
No Customs due diligence low risk programs
No trade and transport facilitation benchmarking
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
20
Rail transport
Main railway delays:
1.
Railway security
2.
Waiting in queue
3.
Change of railways gauge
4.
Old track and old ballast=slow train times
5.
Lack of modern signalling
6.
Lack of freight yard computerization
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Lack of tracking and tracing using IT methods
8.
Old locos and old wooden box car wagons
9.
Lack of interest using modern rail management
methods: witness Kazakhstan wheat exported in
hoppers and not in 20 foot lined 20 foot ISO
Containers. Moldova exports wheat to Taiwan using 20
foot lined containers
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
21
Mismatch of public and private
interests and agendas
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The challenge: public bodies are control orientated not designed to
give facilitation-the Josef Syndrome
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
trade and transport facilitation document
The challenge: private companies are business driven and must
manage sub optimum export, import and transit supply chains
Government must balance security with safety and trade and
transport facilitation but often use this pretext to control instead of
facilitating legitimate trade
Lack of trust between control agencies and the new rich traders
The extra trade and transport costs are past onto consumers
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
22
Solutions
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Please read Part VII in the next UNECE
Europe Asia Transport Links Report which
describes many solutions how to reduce
land border crossing point times
Please read the new OSCE-UNECE
Handbook of Best Practices at Border
Crossings: A Trade Facilitation
Perspective
Jan Tomczyk, FCILT
IRU Conference 16 May 2012
23
Rahmiet, Spaciba, Thank You
Thanking the following
experts who helped
with the research
findings included in
this presentation:
Nurseit Niyazbekov,
Valeriu Garstea and
Eugeniu Hrestei
QUESTIONS?
Jan Tomczyk, FCILT
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
IRU Conference 16 May 2012
24