Economic Cooperation Organization Secretariat ECO PROSPECTS AND CHALLENGES in Transport & Communication Sector Tehran-Iran September, 2002 1 CONTENTS Foreword Transport system in ECO region -Overview -Background -Economic situation ECO objectives and goals in transport sector -Undaunting challenges -ECO strategy Decisions/recommendations of Ministerial Meetings -1st Ministerial meeting -2nd Ministerial meeting -3rd Ministerial meeting Review of important developments -1st Ministerial meeting -2nd Ministerial meeting -3rd Ministerial meeting Country Reports; Status and trends. - Afghanistan - Azerbaijan - Iran - Kazakhstan - Kyrgyzstan - Pakistan - Tajikistan - Turkey - Turkmenistan - Uzbekistan Issues at stake Country Profiles ECO in figures. Relevant maps 2 FOREWORD This brief publication is one of its kind ever brought out under the supervision of the ECO Secretariat. It is undoubtedly far from perfection, which can be further improved, both in terms of its contents and presentation. However, incomplete information in transport development in member states has almost restrained us to embark upon this adventure. The 10th anniversary of the expansion of ECO from a 3-member to 10-member organization encouraged us to compile whatever data and material we could collect from different sources and weave them into an essay on the evolving transport system in the region. The product understandably requires lots of improvement, particularly in the field of more updated data and information on development strategies in the member states. The publication will be revised and improved in the light of the views of the member states as well as the general reader. Finally, yet importantly, this publication may not have seen light without the active support of the His Excellency Seyed Mojtaba Arastou, Secretary General ECO and assistance of Mr. Fazli Sak, Programme Officer (Directorate of Economic Research & Statistics) and Mr. Bijan Moshir-Vaziri, Programme Officer (Directorate of Transport & Communications). Mr. Mohammad Javed, Steno-Secretary was also a great help in collecting some basic material on the decisions of the ministerial meetings in this sector as well as typing the major part of publication. Sanaullah Deputy Secretary General (Transport & Communications) 3 Transport System in ECO Region Overview 1. Today, it is universally accepted that external factors such as economic, trade and population trends highly influence the achievements/developments in transport and the related infrastructure. Rapid socio-economic developments generate a high demand for infrastructure facilities and services, while limited infrastructure or capacity, especially in various modes of transport and communications, may well hinder further socio-economic development. 2. In ECO region, development of transport sector for regional cooperation assumes greater dimension as seven out of its ten member states are landlocked countries and remain dependent on transport for developing their economies. The high transport costs have been negatively impacting their imports as well as making their exports expensive. The development of transport system in ECO region, therefore, is a sine qua non in creating supportive edifice to ensure integration of the economies of the new member states with countries beyond ECO region. In this spirit, ECO has been attaching top priority to the development of efficient and seamless movement of cargo and passengers by road, air, and rail. Many useful programmes in this regard have been chalked out, both using the indigenous resources as well as the technical and financial support from international organizations. 3. In view of the realization of the significant role an efficient transport system can play in shaping economies, the member states have been sensitive to ECO policies and programmes. As a result, the ECO activities in this regard have been much more than the activities in other priority sectors such as trade and energy. Since the expansion of ECO from three to ten members, three Ministerial meetings have taken place in this sector. The salient decisions taken at these meetings have been included in the booklet to refresh our memories of past decisions and priorities of the member states. 4. ECO achievements in this sector have been modest. Nevertheless, the Secretariat is satisfied with the results given the odds and problems facing all modes of transport in the region. It is a matter of pride that now the member states have started a regular run of container train on Istanbul- Tehran- Tashkent- Almaty 4 route of Trans-Asian Railway main line. However, their efforts to start a similar ECO passenger train for which a pilot run was made from 14 March 2002 to 17 March 2002 did not succeed. It is hoped that the technical problems surrounding this important project would soon be resolved and, as planned, the train would start running from October 2002. 5. In view of the importance of the decisions at the previous Ministerial meetings, the Secretariat, under the guidance of the Secretary General, is placing due emphasis on strong follow up mechanism to monitor, on regular basis, their implementation. A recently prepared follow up report on the implementation of the decisions of the three Ministerial meetings on Transport and Communications has been included in this booklet for perusal. Background 6. A very preliminary look at the mutations taking place at the global level which is involved in shaping and even creating new phenomena would show that even the big economies are seeking shelters within various economic regional grouping and blocks such as NAFTA, SAARC, EFTA, EU, ASEAN, APEC, etc. This situation of course is, then, a reflection of the global atmosphere where small economic entities are finding it extremely difficult to survive in a highly competitive atmosphere. 7. This trend originated after the end of Second World War. However, with the end of the cold war in late 80s geographically contiguous and culturally homogeneous regions started evolving into groups and blocks. In this sprit, the Regional Cooperation for Development (RCD) established by Iran, Pakistan, and Turkey in 1964 was restructured and revived under its present name of Economic Cooperation Organization (ECO) in 1987. ECO was fully launched in early 1991 as an inter-governmental organization with an aim to promote regional economic cooperation. In November 1992, the Organization gained a new momentum, when Afghanistan, Azerbaijan, and Central Asian countries of former Soviet republics namely Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan decided to join it. The new members shared cultural and historical affinities. In the new environment, they saw new opportunities for raising the standard of living for their citizens. 8. As the new members of ECO endeavoured to open up to the outside world and transform their economies from centrally planned to market oriented ones, 5 cooperation in the main pillars of economic structure e.g. transportation, trade, energy and agriculture become pressing priority sectors of cooperation in the ECO region. 9. The accession of seven new countries to ECO was a significant event in the life of the Organization. The region encompassed about 8 million sq.km comprising one of the richest parts of the world. It is full of complementarities and potential in terms of the opportunities offered by oil and gas, mineral resources, hydroelectric power and human resources dynamics. To this end, various numbers of ECO projects and programmes have been evolved since 1992 for integration of the ECO economies into the global market place. 10. Because of its central geopolitical location, the ECO and its members, act as an important bridge between this region and other regions of the world. All the ten member states of the ECO are members of the organization of Islamic Conference (OIC). The Caucasian and Central Asian member states of ECO have many deep economic links with Russia and with the CIS, with whom they share lines of economic communication and population intermingling since the Soviet era and beyond. All those countries are members of OSCE. Three ECO countries such as Pakistan, Turkey, and Kyrgyzstan are full members of WTO. Turkey is a bridge by itself, sitting as it does, on two continents simultaneously; it is also a member of NATO, the EU Custom Union and an associate member of the EU. Pakistan is a member of the SAARC, which is a group of seven member states of the South Asia. Iran is a member of OPEC and it has a leading role in the crucial waterways of the world. 11. Soon, ECO will be completing its first ten years of existence. During this short period, ECO has come a long way in pursuing its goals/objectives. The return of normally in Afghanistan this year came as a challenge for the ECO members to demonstrate their regional solidarity to assist one brotherly state in its reconstruction drive. ECO is taking concrete steps to contribute towards development and stability in Afghanistan. The member countries have shown unswerving commitment to work together for achieving progress and prosperity in Afghanistan as well as in the region. Economic Situation 12. In 1998, three quarters of Central Asian countries exports were primary commodities (in particular, oil and gas). Major export market for majority of them 6 is still the Russian Federation, which received one third of its exports. However, lately Central Asia has started diversifying its export commodities and destinations. New partners in trade include China, Turkey, and Eastern European countries. 13. All the Central Asian countries remain in transition and the advantages of new trade opportunities cannot be optimized due to bottlenecks in physical infrastructure, institutional capacity, and regional cooperation. Nevertheless, the past two years witnessed considerable progress in stabilizing economic growth across the region. The Caucasian and Central Asian member states of ECO took significant strides towards market economy, particularly in the areas of privatization and liberalization. On the other hand, the founding members namely Iran, Pakistan, and Turkey suffered in varying degree from the global economic recession. 14. The impact of globalization has been evident in the region with increasing inter and intraregional trade. This has stimulated a demand for development of infrastructure, creating new financing challenges, and increasing the focus of the governments on efficiency and integration of all transport modes. In view of the crucial importance of transport and communications for promotion of regional economic integrations, detailed orientation of ECO in this field can be described as follows; ECO Objectives/Goals in Transport Sector 15. The Izmir Treaty which provided the basis for establishment of ECO, called for "accelerating the development of Transport and Communications infrastructures linking the member states with each other and with the outside world." To facilitate this, the ECO Secretariat annually plans eleven to fourteen ECO and non-ECO events. Besides, the member states in May 1998 adopted the Transit Transport Framework Agreement (TFA), heavily drawing on TIR convention. TTFA could become the key driver of all activities related to the removal of non-physical barriers, to the harmonization of operations and regulations, and the accession by member states to international transport conventions and standards. 16. The objectives for development of transport infrastructure in the region were set out in the Quetta Plan of Action, adopted by the ECO Council of Ministers in February 1993. These objectives were reinforced in the ECO's Long Term Perspectives (Istanbul Declaration), endorsed by the 2nd ECO Summit, in July, 1993. Following this, in October 1993, the ECO Ministers of Transport and 7 Communications adopted the Almaty Outline Plan for the Development of the Transport Sector in the Eco Region. This plan was the basis for the Program of Action for the ECO Decade of Transport and Communications, and the Program, adopted by the 2nd Ministerial meeting on Transport and Communications (Ashgabat, March 14, 1998) and subsequently endorsed by the 8th Meeting of the Regional Planning Council (Tehran, April 19-21, 1998) and by the 8th meeting of the Council of Ministers (Almaty, May 9, 1998). Undaunting Challenges 17. The challenges confronting ECO members in this field can best be understood by looking at the geographical fault lines in ECO sub region. Seven out of the 42landlocked countries in the World are located here. The shortest distance for any of the landlocked countries to a coastal line is not less than 2000 km. 18. The challenges are clearly beyond the ECO capacity. The railway intensive transport system in Central Asian Republics is in real bad shape. The infrastructure is crumbling. The situation is slightly better in other member states. The system needs huge investment to make it work efficiently. International traffic worthy roads are scarce with plenty of missing links in the region. 19. Technical difficulties such as different gauges, different sizes of cargo bogies, lack of bogie change facilities at border crossing points and absence of a joint manufacturing and maintenance facility for rolling stock are gigantic. Additionally, the introduction of new information technology in the region is required to bring the transport system of the land locked developing countries to a minimum acceptable level of efficiency. Unfortunately, the respective governments do not have adequate financial resources to maintain or modernize rail and road infrastructure. ECO Strategy 20. The methodology applied to achieve the ECO objectives in this field was three pronged. Firstly, an attempt was made to identify the missing road and rail links to build adequate infrastructure. Since the Secretariat had no financial means to finance such a capital-intensive projects, member states undertook to complete the missing links through their national budgets. It was decided that the ECO priorities would get a prominent place in national development planning. Secondly, through an elaborate system of expert level groups, workshops and accession to 8 international agreements and treaties were pursued to harmonize rules/regulations, build common rail tariff policy and initiate seamless passenger and container train etc. The objective was largely to remove logistic, administrative and legal impediments basically encountered at boarder points. Thirdly, measures were undertaken to strengthen institutional capacity both at the Secretariat and within the member states to benefit from technical advice from international rail and road associations as well as UNCTAD and UNESCAP. Decisions/Recommendations of Ministerial meetings 21. First Ministerial meeting. Almaty (Kazakhstan) (25-27 October 1993) Agreed conclusions decisions and recommendations - Enable trucks to travel from one end of the region to the other in accordance with internationally accepted standards and by routes prescribed by the member states. - Expand and integrate national railway networks to permit transportation by rail across the region. - Expand air connections to provide air connection between the capitals and major cities of each of the ECO countries at least once a week. - Develop port facilities to handle the sea-borne trade of the region. - Conclude bilateral or multilateral agreements within or beyond the region that may be necessary to facilitate such transport including access through new border and custom posts that may be established. - Recommended the ECO Secretariat to submit the Outline Plan to the Council of Ministers of ECO in the established order with the objective of including in the National Programs of Transport Development and providing own financing along with the possibilities of international financing. Moreover, to carry out the Plan’s activities in cooperation with related international organizations. 9 - - Complete designing, construction of missing links and reconstruction of existing parts of ECO Road Network at its own expense and with international financial assistance. Study border-crossing and related custom problems with the objective of bringing the border points in accordance with expected traffic density. - Consider the possibility of acceding to International conventions on road and rail transport modes in relation to facilitation measures. Complete the preparation and signing of bilateral Inter-Governmental agreements on International transportation of goods and passengers. - Identify financing sources and start projecting and constructing of the railway lines: 1. Kushka (Turkmenistan) – Hirat (Afghanistan) – Kandahar (Afghanistan) – Chaman (Pakistan) 2. Serakhs (Turkmenistan) – Meshad (Iran) – Merman (Iran); 3. Zahedan (Iran) – Mirjava (Iran); Meshad (Iran); Bandar Turkaman (Iran) – Ghizil Atrak (Turkmenistan) – Ghazanjagh (Turkmenistan). To provide shortest connections of landlocked countries to Persian Gulf Ports and Ports of Karachi and Qasim (Pakistan) in Arabian Sea. 22. Second Ministerial meeting. Ashgabat (Turkmenistan) (14 March 1998) Agreed conclusions decisions and recommendations - Welcomed the draft Transit Transport Framework Agreement (TTFA) as formulated with assistance of the UNCTAD and considered during a conference held on 18-20 November 1997 in Ashgabat with the participation of the ECO member states. - Recommended that to ensure timely implementation of the projects included in the Programme of Action for ECO Decade on Transport and Communications (1998-2007), the participation of the private sector in their implementation be encouraged and funds from international financial institutions be sought for specific projects of the member states on the basis of bilateral and multilateral arrangements. 10 - Encouraged the member states to expedite national level actions on the Regional Action Programme and to nominate national focal points and priority projects, in accordance with the ESCAP request, if they had not already done so. - Recalled para 5 of the Ashgabat Declaration issued by the ECO Extraordinary Summit held in Ashgabat in 1997 in which it was provided that in view of the urgent need for the development of ECO region’s rollingstocks, close cooperation amongst the ECO member states be promoted for manufacturing and repairing of locomotives, passengers carriages, freight cars, containers and other railway equipment, using ECO countries’ own resources as well as preferential credits of international financial institutions issued under the guarantee of the governments of ECO member states and other financial sources. - Noted with appreciation the offer of the Islamic Development Bank to sponsor a study on restoration of capability of the railway locomotives belonging to the Central Asian members of ECO and to assist with the establishment of cooperation among all the ECO member states for maintenance and operation of their locomotives and rolling stock. - Decided that implementation of para 5 of the Ashgabat Declaration should be expedited and urgent measures should be taken to conduct the IDB study. After the results of the IDB study are available, the Secretariat will set up a High-Level Experts Group to examine and evaluate the recommendations and evolve necessary actions. - Decided to establish a Permanent Commission on Transport and Communications in Ashgabat in pursuance of para 16 of the Ashgabat Declaration. The member states were accordingly requested to nominate their representatives for the Experts Group as soon as possible and inform the Secretariat by the end of May 1998. - Directed to prepare a compendium of laws, rules and procedures governing road, rail and air-transport, customs rules and procedures, trade practices as well as the postal and telecommunications network available in the member countries. This information may also please be made available in a website on Internet. Preparation of a directory of industries and services available in 11 - - 23. the member countries, specifically in the Transport and Communications sector. Decided to exchanging information in respect of training facilities available in Transport and Communication sector in the member countries. Agreed that for undertaking consultancies, the potential available in member countries would be utilized to the maximum and hiring of consultants from the countries which are non-member of ECO be avoided as far as possible. Third Ministerial meeting. Islamabad (Pakistan) 27-28 April 2000 Agreed conclusions decisions and recommendations - Decided to indicate the average speed of the container and/or block trains of 1000 km per day (24 hours) along the “East-West” and “North-South” Transport Corridors at national level as the target value to be achieved in future. - Highlighted that the completion of the Bafq-Meshhad, Kerman-Zahedan, Bosphorus Tunnel Crossing, and other missing railway links were of vital importance to the ECO Region. On the other hand, the importance of construction of Chamman-Herat-Kushka railway link was also highlighted. - Endorsed the decision of the 4th meeting of the Heads of ECO Railway Authorities to set up an Experts Group to study and formulate a flexible tariff policy for economical and efficient organization of railway transportation in the ECO region. However, Turkmenistan delegation expressed reservation regarding the above- mentioned decision. - Decided to set up a committee consisting of countries, which have paid their initial equity shares to resolve problems of the ECO Shipping Company. This committee, in consultation with the ECO Secretariat and its Legal Adviser, will revise the Articles of Association of the said company in accordance with the relevant laws and regulations and make appropriate decisions on the new status of the company. - Emphasized the importance of ratification of TTFA by all signatory member states at the earliest to make it operational within the year 2000 and 12 recommended to the relevant authorities in the Member States to designate their representatives to the Transit Transport Coordination Council according to Article-1 of the TOR of the TTCC by October, 2000 at the latest. - Recommended to the 1st meeting of the ECO Civil Aviation Authorities and Heads of National Airlines held in Karachi on 12-14 February, 2001 to consider: (a) (b) (c) the expediency of further development of ECO Air project, as well as the possibility for the non-signatory Member States to join ECO Air or the possibility of introducing instead of ECO Airline an ECO Air Pool within the ECO region particularly among the capitals and major cities of the member states and among the popular tourist centers in the region. - Took note of the enormous potential for growth of postal business in the ECO region and the scope for more closer collaboration between the postal administrations of the member states to mutually exploit and avail the so far unexplored opportunities in postal market. With a view to ensuring the development of cooperation between them, it was decided that qualified postal officials should in future be invited from each member country to participate in the meetings of the Directors General of Telecommunications and Postal Authorities. One full session should be reserved for discussion on postal matters, in future meetings. - Noted with appreciation the signing of the Technical Assistance Grant Agreement between ECO and IDB concerning the Introduction of Multimodal Transport Operations in the ECO Region on 11 September, 1999 and confirmed the obligations of ECO as envisaged in this Agreement as well as requested the relevant authorities in the member states to implement the ECO/IDB/ESCAP/UNCTAD Work Programme properly as scheduled. - Recommended to the member states to nominate their national coordinating departments to deal with the above-mentioned programmes/projects and corridors to facilitate smooth coordination with 13 the ECO Secretariat and furnish the particulars of their focal points to the Secretariat. Review of Important ECO Decisions Overview 24. Three Ministerial meetings held in 1993, 1998 and 2000 took far reaching decisions. Nevertheless, some long-term issues have run from the first to the third Ministerial meeting without making substantive progress. The long gestation period and heavy capital investment needed for development of an efficient transport system are mainly responsible for this sorry state of affairs. 25. On its own the Secretariat has been following the methodology to monitor progressive implementations of the decisions by asking a) member states to undertake completion of the missing links through their national budgets, b) pursue harmonization of rules/regulations, removal of logistic, administrative and legal impediments basically encountered at border points. Ministerial meetings 26. The 1st Ministerial meeting on Transport and Communication, which was held in Kazakhstan on 25-27 October, 1993 basically focused on the identification of a vision allowing an unimpeded movement of vehicles and railway equipment from one end of the region to the other in accordance with the internationally accepted standard and the rules prescribed by member states. The meeting succeeded in defining a strategy contained in the Outline Plan contained in Quetta Plan of Action as well as in the Istanbul Declaration. The meeting set out certain targets and sincerely believed that given the political support and genuine need for the six landlocked countries for access to coastal area, the goal poles would be maintained. In this context, national governments were requested to ensure construction of missing links with regard to road and railway tracks at their own expense and where possible with international financial assistance. 27. Nevertheless, the 1st Ministerial meeting set out very high targets and too ambitious deadlines. For instance, construction of missing road and rail links were to be completed by 2000, accession to International conventions on road and rail transport modes in relation to facilitation measures to be carried out by 1994, completion of multilateral convention on transit regulations and a common system 14 of Customs procedures in the region in accordance with international laws and conventions to be created by July 1994. No doubt, the high target forced a pace which was perhaps then needed to galvanize the newly expanded ECO into a fast track mode. 28. In line with the decisions of the meeting missing road and rail links in ECO region were identified and the first edition of ECO road and rail network maps was published. The process could not continue due to non-acceptance of the said edition on political grounds by some countries. The member states were encouraged to resolve their differences on this matter. 29 In order to implement multilateral convention on transit regulations and create a common system of customs procedures in the region, the Transit Transport Framework Agreement (TTFA) was devised in consultation with UNCTAD. The same was adopted in May 1998. A lot more efforts were taken to finalize eight annexes covering decisions taken by various expert groups meetings under the jurisdiction of the Transport sector. 30. The 2nd Ministerial meeting (1998) basically called for follow-up of the long term plans approved by the First Ministerial meeting. These included timely implementation of all projects included in the Programme of Action for ECO Decade on Transport and Communications (1998-2007), as well as in the Almaty Outline Plan such as participation of private sector in Transport development projects and construction of missing road and rail links. Most of these infrastructure projects were undertaken by respective member states as the Secretariat was neither mandated nor had the financial and technical capacity to carry out such capital intensive projects. The Secretariat merely worked as a “book keeper” to monitor the activities of the member states in this respect. Uzbekistan completed 203 km rail line (Uchkuuduk – Nukus). Kazakhstan strengthened 305 km rail track (AktogaiDruzhba). Iran and Pakistan took similar work to make their railways more efficient. A lot more was done to strengthen road system in Iran, Pakistan and Turkey. 31. Specifically, the Second Ministerial meeting called for a study by the Turkish authorities to formulate recommendations for bringing ECO road network in line with the prevalent international standards. In this regard, a mention was made to highlight identification of locations and constructions of “minimum road infrastructure requirements (e.g. filling stations, vehicle service workshop, motels, capes etc). Also, a draft Directory of ECO Road Network (in English and Russian 15 languages) specifying the existing and planned road infrastructures. Unfortunately both the proposed assignments have not been carried out due to lack of interest both on account of the relevant Turkish authorities and the ECO Secretariat. Two years ago on the eve of the 11th RPC, the Turkish authorities were requested to indicate the cost for undertaking the study. The matter was not pursued further. Even the draft Directory could not be completed for the same reason. 32. In fact, it was not a good decision for the member governments to identify locations for filling stations, workshops, cafes, and motels, etc. This should have been left to the private sector as market forces alone could have determined the most suitable locations and the number of facilities needed. The governments’ interventionist measures are no longer acceptable to the private sector and mainly for this reason no member state took interest in pursuing the study. On the other hand, the draft Directory could have been published as it meant mere compilation of information already available in the Planning Divisions of the member states. Perhaps, somewhere lurked serious doubts about its end use. 33. Another decision provided for development of rolling stock in the region through promotion of close cooperation among member railways in the fields of manufacturing, repairing locomotives, passenger carriages, freight cars, containers, and other railway equipment. The proposed study was initially delayed as it got linked up to completion of an IDB funded study on the Introduction of Multimodal Transport Operation. Later, UNDP sponsored a pre-feasibility study on the current status of rolling stock in member railways, their capacity for maintenance and manufacturing and an assessment of the potential for cooperation in maintenance and manufacturing among member railways. UNDP, due to lack of necessary funds, declined to sponsor the 2nd phase of the study. In fact, joint manufacturing and maintenance of rolling stock was considered pre-mature given the current state of cooperation among member railways. Immediate technical assistance in the following areas were recommended; - Railway data exchange systems - to assist in achieving the objective of a common information system. - Tariff and pricing – to assist member states in the development of a common approach to evolve competitive tariffs and fares. - Passenger ticketing systems and freight way bills system. 16 34. The above recommendations did not receive any response from member states. The subject still enjoys some priority with majority of member states. Therefore, ECO Secretariat plans to hold a workshop on the issue in 2003, subject to the approval of the 13th RPC. 35. The meeting also encouraged all member states to consider speedy accession not only to all the transport conventions listed in the UN-ESCAP Resolution 48/11 but also to the Convention on Transit Freedom Status (Barcelona Convention, 1921), Transit Trade Convention of Land-Locked Countries (New York Convention, 1965) and the International Convention on Simplification and Harmonization of Customs Procedures (Kyoto Convention, 1973). The Secretariat circulated copies of these Conventions among the member states and on regular basis, kept urging the member states to sign and ratify these conventions. Considerable progress is in evidence. 36. In line with another decision of the meeting, efforts were and continue to be made to collect laws, rules governing the use of roads, rails customs and postal facilities. Those available were placed on ECO Website. With regard to use of local consultant, the Secretariat has already received a formal undertaking from UNDP for employment of consultants from ECO member states. 37. Also a decision was taken to promote HRD and training as part of ECO measures to improve transport system in the ECO region. However, no specific action was carried out by the Secretariat to implement this decision due to lack of requests from member states. Nevertheless, ECO-UNDP Capacity building project as well as ECO-IDB/UNESCAP/UNCTAD Multimodal Transport Study envisaged many such opportunities. 38. The Ministerial meeting also called for early implementation of the IDB/UNESCAP/UNCTAD/ECO Multimodal Transport study project, initiated in 1998. The project has taken off with much difficulty. Local consultants have now been appointed for Turkey, Azerbaijan, Pakistan, Kyrgyzstan, and Tajikistan. Nominations from Iran, Kazakhstan, Turkmenistan, Afghanistan, and Iran are awaited. The delay in selection of local consultants has delayed the subsequent developments including scheduling of workshops in member states, engagement of international consultant and release of funds by IDB for the project. 17 39. The key recommendation of the meeting was the finalization of the Transit Transport Framework Agreement (TTFA). As directed, the endorsement of the 8th meeting of the COM (Almaty, May 1998) was obtained for the Agreement. 40. The 3rd Ministerial meeting, held in April 2000, took stock of many issues discussed earlier in the 1st and 2nd Ministerial meetings on Transport and Communications. Prominently among those included completion of rail and road missing links, publication of a detailed directory for drivers of the road transport, early operationalization of PCTC, circulation of ECO Road and Railway Network Maps as well as ratification of TTFA and early implementation of ECO/IDB/UNESCAP/UNCTAD Joint Project on Introduction of Multimodal Transport Operations in the ECO region. 41. In addition, the meeting set up an Experts Group to study and formulate a flexible Tariff Policy for economic and efficient organization of railway transportation. An Expert Group, which was set up to implement this decision, recommended an MOU on ECO Railway Tariff Policy instead of adoption of ECORTP. A draft MOU was circulated among member states and so far only Kazakhstan Railway authorities has furnished its comments. There is a need for a flexible rail tariff policy but it has to be determined on the basis of commercial viability and easy use of concerned railways officials/operators. The task is not easy as it involves harmonization of the existing tariff policy in six CARs with other member sates. 42. Any forward move on the Turkish proposal regarding introduction of ECO Multimodal Quota for Road Transport Permits and harmonization of bilateral road permit prices was for stalled as the proposed meeting of the concerned Working Group was postponed at the request of Turkey in 2001. The matter was not pursued in the 12th RPC held in March 2002. 43. The 3rd Ministerial meeting also called for setting up of a committee to resolve some outstanding issues of ECO Shipping Company. The said Committee was set up in 2002 which looked into the affairs of the Company. Its report suggested that the changes effected in the Articles of Associations were not in violation of the original Articles of Association. Pakistan as a signatory country which had paid (besides Iran) its due share, contests this report. 44. Another decisions related to establishment of a Permanent Commission on Transport and Communication. The 3rd Ministerial meeting on April 27-28, 2000 18 (with Turkmenistan abstaining) approved the Terms of Reference of the Commission. TORs were devised to provide technical advice to the Directorate (Transport and Telecommunications). Also PCTC was expected to expedite implementation of all transport issues as well as active ECO involvement at planning level in Member States; eliminating non-physical barriers and resulting in increased harmonization of national legislations and regulations in the transport sector within the framework of Ashgabat Declaration. The expectations seem too lofty to fit the present scenario. 45. The establishment of this additional institution (PCTC) is likely to have serious implications for the existing Directorate (Transport and Communications). It seems that this aspect has not been seriously considered. 46. Except that Kazakhstan, Kyrgyzstan, Tajikistan, Pakistan, Uzbekistan, Turkey, and Iran have nominated their representatives to PCTC, there has not been any active support for scheduling of the meeting of PCTC, which is essential to operationalize PCTC. Partial hospitality by the Secretariat has failed to elicit a favourable response to this effect. The meeting, as a result, has been postponed thrice. The establishment of PCTC needs to be reviewed in the light of these developments. 47. The decision to develop an ECO Air project was reviewed at the level of Heads of National Airlines in February 2001. A new idea emerged in its place, which called for a Framework Agreement for enhancing cooperation among member states. Work with regard to compilation of views of member states in this regard is underway. 48. The Ministerial meeting also considered the implementation of the Plan for Development of Telecommunication in the ECO region, particularly, accession of the members states to TAEFOS. TAEFOS now works to the mutual satisfaction of its members which include Iran, Turkey, Turkmenistan, Kazakhstan and Uzbekistan. 49. The meeting also took note of the enormous potential for postal business in the ECO region. It was perhaps an over statement as the subsequent inquiries revealed that there was not enough business to initiate Urgent Mail Service (UMS) among member states. Nevertheless, Kazakhstan has now offered to hold the 13th meeting of the Directors General of Telecommunication and Postal authorities in 19 October 2002. The meeting is likely to look into issues related to the development of postal sector in the ECO region. 50. The Ministerial meeting recommended to the Member States to nominate their national coordinating departments to deal with the Project Working Group (PWG) on Transport and Border Crossing Facilitation under UNESCAP/UNECE Special Programme for the Economies of Central Asia (SPECA) and Global Rail Corridors Task-Forces’ activities as well as ECOI/IDB/ESCAP/UNCTAD Work Programme on the Introduction of Multimodal Transport operations in the ECO region to facilitate smooth coordination with the ECO Secretariat and furnish the particulars of their focal points to the Secretariat was realized. So far Azerbaijan, Kyrgyzstan, Pakistan, Tajikistan and Turkey countries have conveyed their names to the ECO Secretariat. 51. The potential for cooperation matches the challenges available in Transport sector in ECO region. A little more conversion of political will and commitment into concrete support for agreed decisions will bring us closer to realization of our goals in this priority sector. Also, if member states may pause as they move along the path of consolidation of regionalism to reflect on their decisions in the light of new experiences and priorities and also if they are willing to cast away the unnecessary burden to refocus their energies on doable priorities, the destination will no doubt draw nearer. COUNTRY REPORTS 52. The following paper on status and trends in the development of transport infrastructure has been prepared in accordance with the available information for countries of the ECO region. Afghanistan War has not only devastated the existing infrastructure and deferred maintenance in Afghanistan but also prevented new investment from taking place, which would have raised the services above the prewar levels. In fact, it is difficult to understate the low base from which reconstruction will begin. Major infrastructure bottlenecks need to be removed in order to stimulate early economic recovery and growth in Afghanistan. Immediate challenges include establishing communications systems, removing major transport bottlenecks and re-establishing safe emergency air traffic services. 20 The national road network is in poor condition. Significant numbers of bridges and causeways are damaged or destroyed. For example, 128 km of the 227 km Torkham–Jalalabad–Kabul road (crucial both for trade and for relief shipments) is so damaged that it takes 4 days for a truck to make a return trip between Peshawar and Kabul, a journey that used to take less than a day. The extent to which roads are seeded with land mines is unclear, but this is likely to be a significant problem in the short term. Few rural villages have all-weather road access. Petroleum storage facilities around major urban centers have been destroyed and transport costs of imported fuels are inflated by the high costs of road transport. Natural gas used to be a major export, but gas fields have ceased to operate and wells have been capped. Urban infrastructure is also severely damaged or destroyed: about 40% of roads are damaged and communications facilities are seriously underdeveloped. Access to telecommunications is one of the lowest in the world with only 2 telephones per 1,000 people. Roads For a mountainous, landlocked country like Afghanistan, roads and airports are vital for transport, for international trade, to facilitate national integration, and to avoid supply bottlenecks that create inflation. The road network comprises about 5,800 kilometers (km) of national roads, of which 3,100 km are primary highways including 2,400 km roads that were originally paved. The national primary road network largely consists of the ring road (Herat-Kandahar-Kabul-Mazar-i SharifShibergan-Maimana-Herat) and the six international links to neighboring countries. The remaining network of 2,700 km secondary national roads and 15,000 km provincial roads is either gravel or earthen. The coverage and condition details of tertiary road network consisting of village access roads are not known, except that these roads are all unpaved. More than two decades of conflict combined with a prolonged lack of maintenance has resulted in damages to long sections of roads, critical structures, bridges and other significantly high transportation costs. According to the last condition survey undertaken in 1994, 17 percent of the network was in good condition, 35 percent in fair condition, and the remaining 48 percent in poor condition. Based on recent 21 information some sections of the network, the road conditions have deteriorated significantly. The first priority is to restore normal traffic operations on the main road network, facilitating transport movements on key import/export links and main corridors. A second early priority is to begin construction of the missing section of the Ring Road (Herat to Shiberghan). To break the historic isolation of minorities, it is also critical to initiate as soon as possible work on the Central-Afghanistan roads connecting Kabul to Hazarajat, and Hazarajat to Herat and to Mazar-e-Sharif. Given the weak capacity of the private sector in Afghanistan, the initial emphasis should be on utilizing local enterprises as subcontractors to large international contractors, thus exposing local businesses to the quality of work and international standards required in the reconstruction of the regional highway network. At the same time this would provide on-the-job learning while the responsibility for quality of works remains with the international contractor. This would allow building of local capacity to undertake major road rehabilitation work with low cost and at low risk, while ensuring fast implementation. Poor access to villages in rural areas is a key constraint to rural development. A tremendous potential exists for generating employment opportunities while addressing rural isolation through a labor-based rural access road construction program. Further studies are needed to define such a program. One option could be the establishment of a rural access fund, initially financed by grants, to provide for labor-intensive investments that improve accessibility at the rural level in response to the priorities set by villagers themselves. Technical assistance is urgently needed to facilitate speedy implementation and better define future years of the road program. These involve construction supervision, defining future institutional and financing arrangements for the road sector, supporting the local construction and consulting industry, preparing a national highways strategy, and ensuring road safety. Civil Aviation Civil aviation has always been an important transport mode because of the size and geography of Afghanistan. An efficient air transport system will facilitate reconstruction, especially during the period when internal security is being stabilized. Immediate priorities for the first year include; 22 (i) installing Emergency Air Traffic Services (ATS) for both international and domestic air traffic, which would also generate income from over-flying rights; (ii) designing and tendering of contracts for rehabilitation of airports and facilities; and (iii) strengthening government capacity to manage the sector and regulate safety. Over the next 2.5 years emergency rehabilitation will be needed at key airports (Kabul, Kandahar, Herat, Kunduz, Mazar-e-Sharif, and Jalalabad), as well as reinstatement of basic communication and navigational aid facilities to enable minimum air traffic services. However, the bulk of rehabilitation investments could be back-loaded. Communications The telecommunications sector in Afghanistan is virtually destroyed. The nation’s network of phone lines is in the critical state of disrepair and is barely functioning, and a limited few have access to radios. Adding together the analogue and wireless local loop networks suggests a country teledensity on the order of 2 telephones per 1,000 (14 phones per 1,000 in Kabul, 0.6 phones per 1,000 in the rest of the country). To bring limited geographic and population coverage telecommunications service to a position of modern telecommunication infrastructure is one of the key reconstruction objectives. As part of the infrastructure reconstruction programme the GSM network was launched in Afghanistan in April 2002 providing services for five major cities of the country. However, constraints such as poverty of the population, severe destructions and lack of financial resources present major challenges for telecommunications development in Afghanistan. Investment in telecommunications, in both the short and long term, is likely to be dominated by the private sector but urgent policy framework issues need to be resolved in the short term to facilitate investment and service expansion. International experience, even in post conflict conditions, suggests that telecommunications investment needs minimal government expenditure. Sustained periods of 100% annual growth in subscriber numbers can be achieved in the first years of a competitive mobile market. A teledensity of 10 per 1,000 (a realistic target for the next 2 years) would require private investment conservatively 23 estimated at around $200 million, with competitive private investment taking the lead. Establishing a regulatory and contractual environment that promotes competition and new entrants is key to the rapid expansion of telecommunications services. Donor support will be required mainly for technical assistance and capacity building along the following lines: (i) providing legal services to support the AIA in critical areas of regularizing contracts of incumbent operators; and (ii) supporting early work on sector reform, regulatory design, and tendering of licenses. In most sectors, the magnitude of required investment will increase with the shift from rehabilitation to system expansion and modernization. But investment is highly sensitive to the supporting policy framework, development of delivery capacity (private and community as well as public), and progress toward costrecovery. Examples of the transition from recovery to development for infrastructure sectors include; (i) (ii) (iii) Roads: moving to upgrading of secondary and tertiary road networks to reduce isolation of rural communities; continuing expansion of village access; continuing restoration and possible expansion of national road network; Civil Aviation: repairing and retrofitting of terminal and supporting infrastructure at Kabul and key regional and smaller airports; Telecommunications: expanding wireless-based services in urban and rural areas (target teledensity of 50 per 1,000 by year 10), primarily through private sector investment and delivery, but with potential for subsidy schemes to promote access in isolated rural areas; Republic of Azerbaijan Transport System Azerbaijan Republic covers and area of 86,6 th. km. Azerbaijan adjoins in the North with Russian Federation (length of the border 390 km.), in the West with Armenia Republic (1009 km.), in the Northwest with Georgia (480 km.), in the 24 Southwest with Republic of Turkey (12 km.), and in the South with Islamic Republic of Iran (765 km.). The geopolitical location of Azerbaijan makes it natural bridge between Europe and Asia and one of the key points in the shortest transport corridors in the Euro-Asian region. Main priorities in transport policy are: - Accelerated integration of transport to the international transport system. Harmonization of legal transport regime with the norms of international transport law. Development of multimodal transport. Development of information network together with application of modern means of telematics to control transport process. Adoption of unified laws allowing efficient and cost-effective transportation of freight and passenger. TRACECA (Transport Corridor Europe – Caucasus – Asia) has a special value for Azerbaijan in connection with the transportation of large volume of freight from Europe, USA, and the states of the South – East Asia to Baku. It also presents significant alternative for transport communication through the Russian Federation. In connection, Azerbaijan can establish long-term stable relations on service of transit freight traffic. It is necessary to note that some steps concerning TRACECA corridor are already being taken under TACIS Program (Program of Technical Cooperation with CIS Countries), which had been worked out by the European Economical Community to render assistance for development of harmonized and strong economical and political communication between the European Community and new independent states. In 1996 Uzbekistan, Azerbaijan, Georgia, and Turkmenistan agreed on cooperation in the field of regulation of the transit traffic between these countries with the purpose of improved usage of the transport corridor Europe – Caucasus – Asia through Azerbaijan. This agreement provides state guarantee for safety of transported goods, simplification of customs procedures and reduced fares for goods transport by 50 percent. Due to all this the volume of cargo carriage in 1997 has increased in comparison with 1996 by 2,5 times. 25 Azerbaijan also signed an agreement with Georgia, Ukraine, and Moldova about creation of Euro–Asian transport corridor (Ilyichevsk-Poti-Tbilisi-Baku). Azerbaijan also cherishes interest in “Silk Road” which is the natural prolongation of Cretan corridor connecting Europe with Black Sea proceeding towards Central Asia through Georgia-Azerbaijan-Turkmenistan-Kyrgyzstan and further through China to the countries of South - East Asia. Azerbaijan is in close contact with "TACIS-TRACECA" to realize more than 20 projects: staff training, work out model of transport laws and codes, simplification and computerization of customs procedures, renovation of railway and sea transport, improvement of highway conditions, forecasting of regional traffic on multimodal transport systems etc. In 1996 within the project "Prior Investment Research and Pilot Express-Train" it put into operation a pilot – train on route Baku – Tbilisi – Poti and thus provided a new kind of container transport services. The Baku International Marine Port has worked out the investment project of renovated ferry crossing and development of dry-cargo part of port with a container terminal. Under the projects of Technical Assistance financed by TACIS, 1,5 mln. ECU is allocated for feasibility study report of activities on renovation, 2,0 mln. ecu for repair and purchase of handling machinery for Baku International Seaport and 0,7 mln. ECU for purchase of spare parts for ferries. The credit allocating is planned in amount US $ 30 mln., including US $ 18 mln. for the ferry terminal by European Bank for Reconstruction and Development. Azerbaijan is taking measures on activation and stimulation of investment process for development of transport infrastructure. Road transport There is planned renovation of motorway Baku – Alyat – Kazi - Magomed – Kursamir – Evlakh – Gazakh – border of Georgia. TACIS has allocated 1,9 million. ECU to prepare feasibility study report. The European Bank for Reconstruction and Development will allocate the credit in amount US $ 30 mln. With purpose to provide efficient and regular work of transport complex of Republic and full development of transit flow of goods, the special attention is given to improvement of exploitation and further development of all types of transport, its infrastructure, strengthening of material and technical base. 26 Transit corridors in Azerbaijan The two major transport corridors cross Azerbaijan: - North to the South (Russia - Azerbaijan - Iran and further to the countries of Middle East); West to the East (Europe - Georgia - Azerbaijan and further through ferry crossing by Caspian Sea to the countries of Central Asia, China and the Far East). Annually about two millions tons of freight are transported through the North - South corridor by road and railway transport, and about three millions tons on the West - East corridor in both directions. The countries of Central Asia and also Uzbekistan and Kazakhstan successfully use this transport corridor. Besides the Europe-Caucasus-Asia corridor, country has recently activated the work on signing an International Cooperation Agreement, which had already been signed by Russia, Iran, India, and Kazakhstan. The creation of favourable conditions for successful functioning of this corridor will allow improving structure of transport costs and increasing cargo carriage from Europe to Iran – India and the countries of the Southeast Asia. Cooperation in the field of road transport For integration of road transport of Azerbaijan to the global transport network it is necessary to improve transport policy. Now, Azerbaijan is a full-right member of ECMT (European Conference of Ministers of Transport). Besides, Azerbaijan is the member of many international transport organizations: international marine organization (IMO), international organization of a civil aviation (ICAO), international union of railroad (IUR), international union of road transport (IRU), European Conference of Ministers of Transport. The Azerbaijan Forwarders Association was established in Republic which furthermore became a member of international association of forwarding agents "FIATA" on 1997. Azerbaijan has also acceded to six international conventions on sea transport: Chicago convention on air transport, customs convention on the international transport of goods under cover of TIR carnets (TIR Convention), convention on road safety, agreements on international cargo transport (AICT), international passenger transport (IPT), European Agreement on Main International 27 Traffic Arteries (AGR), European Agreement concerning the Work of Crews of Vehicle’s engaged in International Road Transport (AETR). Table-1 Capacity of Transit Carriage (th.tons) Year Transit 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2200 4000 4600 6000 6947 7500 7800 8100 8500 Transported by Railroad 1500 3200 3500 5000 6300 7400 7550 7700 7800 Marine 43 1570 3070 3100 5000 6300 7400 7550 7700 7800 Container 11,2 14,1 14,0 10,7 8,8 10.7 7,6 - Problems of development of transport Azerbaijan has outdated carriage rolling stock of automobile transport. In order to solve this problem the necessary investments and state assistance are required. About 70 forwarder’s organizations in Azerbaijan are operating separately without appropriate harmonized mechanism. It results in uncontrolled activity, different negative events, and "control" of transport market of the Republic by foreign carriers. Therefore, these forwarder’s organizations were combined under the aegis of Forwarders’ Association. No road in the Republic meets the international standards. Full renovation and construction of new highways with appropriate service infrastructure is required. 28 Table-2 Volume of container transportation in Azerbaijan (ton) Type of transport Railway Sea Total 1995 1996 1997 1998 1999 2000 11161 2380 13541 14100 14100 14027 200 14227 10652 10652 8845 300 9145 10711 10711 Islamic Republic of Iran Iran has a total of 5,170 kilometers (3,214 miles) of dry border with her neighbouring countries, of which 1,740 kilometers (1,081.7 miles) with the central Asian Republics; 1,280 kilometers (795.5 miles) with Iraq; 470 kilometers (292 miles) with Turkey, 830 kilometers (515.8 miles) with Pakistan, and 850 kilometers (528.3 miles) with Afghanistan. Iran's water frontiers in Persian Gulf, and Gulf of Oman are about 1,880 kilometers (1,168.4 miles). The beautiful green, rainy coastal line of Caspian Sea in the north is about 630 kilometers (391.5 miles), therefore Iran has about 2,500 kilometers (1,553.8 miles) of water frontier which is a great natural blessing. Telecommunication At present, the country's telecommunication network is active with 7,782 thousand telephones in operation, and by the end of the Third Development Plan, this figure will amount to 15,000 thousands. The number of rural areas having access to telecommunications is 19,887, and up to the end of the Third Development Plan will rise to 35,000, therefore; all the rural areas of Iran with 20-families or more will have access to telecommunication networks. The number of public phones in operation will increase from 75,666 at present to 120,000 by the end of the Third Development Plan. The number of mobile phones in operation will increase from 450,000 at present to 3,000,000 by the end of the Third Development Plan. 29 The expansion of the country's transferring information network is presently in operation with 180-cities under its coverage and about 11,000 ports of X.25 which will rise to 27,000 ports in 400 cities. Plans for development of infrastructure The plans include the following; - Implementation of the long distance inter-city optical fiber network countrywide, in order to substitute the optical fiber in main route of long distance network instead of radio system. - Implementation and expansion of countrywide information-transferring network with the acceptable speeds (28.8 kilobytes for general subscribers, and 64 kilobytes to 2-megabytes for the customers and subscribers who requested higher speeds). Manufacturing and offering advanced telecommunication equipment at home. In the post sector, the development plans with priorities and infrastructure schemes are as follows: - At present, 300 million pieces of mail are dispatched by the postal network, and by the end of the Third Development Plan it will rise to 530 millions. - The number of urban postal offices from 1,500 at present will rise to 2,500 by the end of the Second Development Plan. (This number will develop in Third Plan). - The number of rural postal offices from more than 3,500 in the Second Plan (including the post and telecommunication joint offices) will rise to 10,000 by the end of the Second Development Plan. (This number will increase in the Third Plan). - The numbers of rural and urban post-boxes are 26,500 at present, which is predicted to rise to 33,000 during the Third Development Plan. Priorities of post sector - Redevelopment and improvement of the postal network. Expansion of the postal network. Substitution of postal services for people's referrals to the state offices. Utilizing the mechanized system for sorting and postal exchanges. Automation of post offices. Development and expansion of the post-bank. Transit of international regional mail. 30 - Utilization of 10-digit postal system in the country. Combining the post and Telecommunication offices in rural areas. Infrastructure schemes Planning for initiation of seven mechanized postal centers, postal research, coding, and development of urban and rural postal units. Roads and Transportation The length of Iran’s roads network, including free ways, highways, feeder and rural roads, is about 166,000 kilometers. With the exception of free ways, which were constructed through implementation of the cooperative law, the existing road networks have been generally constructed through government development budget. The main railroad lines in the country is about 6067 kilometers in length of which Bafq-Bandar Abbas, Mashhad-Sarakhs railroads are some of the most important routes. The operational airports with programmed flights have been increased to 44 airports. One of the most important project which is currently underway in air transportation is the construction of the Imam Khomeini (R.H) International Airport of which the first phase has been envisaged for the relocation of 4.5 million passengers. The capacity of trade ports is 36.4 million tons annually. In water transport, the important project underway is the construction of Amir-Abad Port, which will be built with the goal of developing the transit transportation. In water transport, development of container transportation and the protection of marine environment are two important measures that are to be pursued. Priorities in the roads and transportation projects and schemes: - Promoting the maintenance and safety of the country's present network of roads. Promoting the use of public transportation for transferring the passengers on the roads. Enhancement of passenger and cargo transferability by railways. 31 - - - - - Eliminating the bottlenecks of the present railway network and completion as well as development of the railway tracks with private sector participation. Adaptation of sea and port operations in the country's trade exchanges. Promoting greater facilities for relocation of passengers through the sea. Increasing the number of international and operational airports, and upgrading the acceptance capacity of transiting airplanes through the country's corridor. Enhancing the maintenance of the country's present road network (highways, main roads, minor roads, rural roads), for safe keeping of the national capitals. Development of road networks in the framework of transportation demand, technical and economical justifications, through continuation of executive operations and completion of the roads under construction. Construction of highways with participation of the private sector. Investment Programme A brief list of the investment plans in regard to infrastructure affairs during the first six months of 1999 is presented. Post and Telecommunications 1. 2. 3. 4. 5. 6. Radio communications. The study of frequency spectrum planning. The substitution of postal equipment. Construction of distribution and exchange center, post institute, and the headquarters. To equip the country's postal unit. To equip the centers administratively. Roads and Transportation 1. 2. 3. Upgrade the level of roads in heavy traffic and change main ways to highways. Building new ways in the frame word of transportation demand and in accordance with economical justifications. Enhancement of safety of traffic in roads through deletion of accidentprone places. 32 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Substitution of present transport vehicles with state of the art technology. Building of terminals of goods, passengers, and welfare complexes and by the non-governmental sector. Establishing and implementation of Transportation Services Information Center for transport users. Establishment and implementation of railways particularly BafghMashad and Kerman-Zahedan. Reconstruction and building of double railway systems for the present networks, especially in busy routes. Reconstruction of railway fleet. Partnership of the private sector in developing the transportation section has yet to be accomplished in building and development of highways. Preparing the country's trade ports to receive giant ships. Encouraging merchandise owners to use container ships in marine transport. Construction of Amir-Abad Port (in the northern part of the country) in order to facilitate the transit transport of the central Asian countries. Table-1 Investment Programme on Roads and Transportation Routes Ghazvin-Zanjan Tehran-Saveh Qom-Kashan Zanjan -Tabriz Kashan-Esfahan Tehran-Chaloos Bandar-Abas Bypass Mashad-Baghcheh Esfahan-Western Bypass Constructed 186 Km 112 Km 104 Km - Under construction 288 Km 185 Km 121 Km 32 Km 40 Km 90 Km Table-2 Transport Industry Total length of road: Total length of railway line (no electric): Total length of railway line (electric) : Total No. of railway wagon : Locomotive fleet(no in operation) : Total no of port's : 33 81112 km 6150 km 146 km 18000 cars 269 11(3 in north, 8 in south) Total no of port's : Total berth of port's : Type of berths' : 1113 in north , 8 in south 101 berths' G.cargo, container, bulk cargo Table-3 Freight Industry -Road Transport/Cargo Fleet, (1998-99) Total number of vehicles: Active vehicles: Non-active vehicles: 178040 116519 61521 Note 1 : Only vehicles with loading capacity of 3 tons and more are included Note 2 : active vehicles are lorries and trailers with more than 10 trips per year Table-4 Freight Industry Origin Destination Survey for domestic haulage,(1998-99) Total weight of goods carried /per year: Domestic Bill of Lading issued: Total ton/km produced: Average load per tripe: Average distance per trip: Average price of ton/km: 111 million tons 10335000 57472935000 ton/km 10.7 tons 506 km 86 Rials Table-5 Imports by mode of transport: (1998-99) Maritime shipping: Road transport: Rail transport: Total import: 14960 thousand tons = 96.44% 344 thousand tons =2.26% 198 thousand tons = 1.3% 15232 thousand tons Table-6 Domestic transport (inflow) of imports: (1998-99) By road transport: 10888 thousand tons=74% of import-inflow 3755 thousand tons =26% of import-inflow 14693 thousand tons By rail transport: Total inflow of import: 34 Table-7 Import and export classified by sea/land borders: (1998-99) 94.4% 3.6% 86.8% Share of ports in import: Share of land borders in import: Share of ports in export: Republic of Kazakhstan The development of a transport network in Kazakhstan under the USSR was carried on primarily to exploit rich natural resources of the Republic and the transportation of these resources to the main industrial centers of the Union, as well as to provide links from the Central Asia Republics and Kazakhstan to Central and Eastern parts of Russia. Due to the long distances and involved to special character of the freight, the main mode of transportation in Kazakhstan is railway, which accounts for 85 percent of cargo and 30 percent of passenger traffic. The existing railway network (6.4 km per 1000 km2) is insufficient for the normal functioning of the economy of the state. There are 52.5 km of public roads per 1000 km2. Due to low level of motorization and poor quality road pavement, there are no highways of sufficient standard to comply with international standards. Only around 10 percent of roads can accommodate trucks with the axle load of 10 tons. In 1992, the State Programme for development of transport and communications in Kazakhstan up to year 2010 was prepared. However, those measures envisaged in the Programme for 1993-1996 were not implemented due to the economic situation. The level of development of telecommunications in Kazakhstan is characterized by a constant gap between supply and demand due to long-term insufficiency in investment in this area. There are 13.8 telephones per 100 citizens of the Republic and in rural areas 7.3 telephones. Telephone services are mainly of low quality. Since 1992, modernization of the network and reorganization of management structures has been implemented. During this period modern digital systems have been introduced in a number of regional centers. Also construction project and high speed fiber-optical communication lines have been initiated. The number of international lines increased from 10 to 783. 35 Strategy of infrastructure development: The main strategic directions of transport infrastructure development are as follows: - Development of a national transportation network, which should be integrated with the international transportation system and provide Kazakhstan an outlet to tide water; - Modernization of existing railways and roads, inland waterways and sea ports, airports and air navigation infrastructure taking into account the development of a rational system of international transport and communications between Europe and Asia and between Central Asian countries; OEC members; - Development of manufacturing and repair capabilities for railway rolling stock, (freight and passenger), road transport, (trucks and automobiles) by conversion and reorientation of exiting production facilities; - Development of national transport capability and integrated information system; - Consumer oriented improvement of structure and management of transport, reduction of the share of transport costs in total production costs in order to increase the competitiveness of Kazakhstan goods on international markets by improved efficiency in operations. Main objectives in the context of development of telecommunications are as follows: - Intensive development of telecommunication network for public use and development of digital network, in order to integrate all services; - Linkage of the national telecommunication system into the international network and development of country's international telecommunication capabilities; 36 - Development of telecommunication industry, production, scientific research, and development of telecommunication services. Support strategy for the regional infrastructure development: New approaches to infrastructure development are determined by the following conditions: market reforms in the Republic which is being integrated into the world economic system; evolvement of state sovereignty under the existing level of infrastructure development. These conditions necessitate the provision of support to the development of the region in the following areas: - Rationalization of the railway network in order to reduce transportation costs; - Construction of modern freight handling terminals and development of multimodal transportation systems in order to service industrial, commercial and trade centers; - Rehabilitation of the main road routes and development of road transport, which should confirm to international standards; - Development of transportation corridors, (including inter and intra regional) to facilitate external economic relations; - Modernization of air navigation equipment; - Development of satellite communication services and information networks. Scale and priority projects of infrastructure development programme During 1992-1996, more than US$ 500 million has been spent for the development of transport and communications, of which US$ 234 million has been used for the development of telecommunications in the ten regions of the republic. The rest was utilized for the acquisition of rail passenger cars, buses for urban transportation and spare parts. In 1996, credit agreements for US$ 131 million were 37 additionally signed for the development of Druzhba station on Kazakhstan-China border, for the development of Actay port on the Caspian Sea and for the purchase of spare parts. About 90 percent of the resources have been met from foreign credits. The remaining 10 per cent was carried out by low interest credits and by selffinancing of the enterprises. Electrification of the railway link Arys-Shu-Almaaty, development of Druzhba station, construction of a passenger railway car repair works and some other activities were carried out under self financing. In 1996, the State investment programme for 1996-1998 was adopted and plans for transport development up to 2005 were prepared. These envisage dramatic growth in infrastructure investment. Overall volume of investment during this period will reach US$ 4.9 billion, of which US$ 2 billion were expected to be utilized before the year 2000: - railway transport development 38 percent - road transport and road infrastructure 23 percent - air and water transport 27 percent - development of telecommunications 12 percent Foreign credits and direct foreign investments by foreign companies are expected to constitute the main source (70 per cent) of the total inflow. Railway transport: The railway development programme envisages three main activities: - Modernization of the existing network and organization of multimodal transport; Establishment of repair works for railway rolling stock and equipment; Development of a network for rationalization of traffic flows. Using direct foreign and national investments from companies, in the private sector, it is planned to develop a multimodal transport system and repair works. Direct investment inflow is now hampered by the lack of reinvestment opportunities and the 38 preparation of projects. Technical assistance, which is provided to Kazakstan by international organizations and banks, will overcome this problem in two or three years. During the period covered by the plan, 762 km of new lines will be constructed. These railway lines will substantially reduce transportation costs thus lowering production costs and will assist government control of its transportation network. It will also provide for the development of resources. National and international companies will carry out the construction of the new rail links jointly. To this end, the Government has enacted measures, which provide privileges during the constriction and operation of new facilities. These measures will guarantee profitability and return on invested capital. Motor transport: During the implementation of the first stage of the Programme for motor transport development, it is envisaged to replace the obsolete vehicle fleet which does not accord with environmental standards as well as to develop national vehicle manufacturing factories on the basis of the existing enterprises. Initially the fleet of buses is being expanded and renovated using the available credits. Additionally, the purchase of a limited number of trucks for interregional and international transportation will take place. Vehicle manufacturing plants are being established jointly with the main foreign firms; these plants are to produce buses for different purposes, trolleybuses and small trucks. The Concept for the development of a multimodal transportation system in the republic is being prepared with the technical assistance of the EU under the TRACECA programme. After preparation and adoption of the Programme, development will be supplemented by the projects, which cover automobile transport in the multimodal transportation system. This Programme is going to be implemented with the help of foreign companies and national private sector. Roads: The situation in road transport in the republic dictates that rehabilitation of existing roads of national significance, which are used for interregional and international traffic must start first. 39 The length of such roads is 17.4 thousand km, 71 percent of which have light or transitional type of pavement, 211 km are unpaved. It is envisaged that the following roads Tashkent - Almaty - Khorgos (Chinese border); Almaty - Akmola; Aralsk - Actiubinsk - Uralsk will be rehabilitated first. Large investments for road network reconstruction in Western Kazakhstan are planned in connection with the exploration of oil reserves as well as in relation to the necessary to restore roads near the Caspian Sea, the water level of which continues to rise. The total amount of investments in the road network should reach US$ 1,051 million by 2005; this amount will finance 70 per cent of the work, the rest of resources will come from international sources. The question of construction of toll roads using private investment is being studied. Rehabilitation of roads will be done simultaneously with organization of modern road services according to the international requirements. It will also take into account the necessity of the development of multimodal transport. Inland water transport: Reconstruction of Aktau on the Caspian Sea is the primary objective of water transport development in Kazakstan. This port is the most important sea gateway, which connects the republic with the rest of the world by waterway via a network of canals to Russia. This problem is also related to rising water level in the Caspian Sea. The credit agreement for port reconstruction worth US$ 54 million was signed with EBRD, an additional credit worth US$ 20 million for the reconstruction of the protective dam and breakwater is now being negotiated. It is planned to attract foreign investors in order to develop the fleet of "river - sea" type vessels on a leased basis. The technical and economic feasibility study was prepared for the purchase of 10 such vessels by the year 2000. The republic's river network (4 thousand km in 1980) used to provide transportation for up to 11 million tons of various cargoes. Due to the considerable reduction of volumes the river fleet is now in a difficult situation. A programme of river fleet privatization is being implemented. The reconstruction of installations is planned in order to keep them in working condition. 40 Air transport: In air transport following is need to be done: reconstruction of the majority of airports, purchase of new aircraft, rehabilitation of the existing aircraft repair plants and air navigation infrastructure. In Almaty, Aktau, and Akmola it is planned to build new or reconstruct existing international airports. Measures are being taken to provide international flights in Kazakhstan airspace for foreign airlines; this will reduce the length of existing air routes by up to 3000 km. Structural reform of civil aviation now is being carried out. A number of private companies have been established. Airports are now separated from the national air company "Kazakstan Aue Joly"; A state company "Kazairo navigatsiya" has been established in order to provide air traffic control. The biggest airport, in Almaty is going to be managed by "Lufthansa". There are similar offers for other airports. It is planned to modernize the aircraft fleet with "Boeing" aircraft. During the next ten years, the need in investment in the development of civil aviation is estimated at US$ 1.2 billion in foreign credits and direct investments. Telecommunications: In 1996-1998 it is planned to expand existing international stations in Almaty and Akmola and construct a third international station in Western Kazakhstan. It is planned to change from analogue to digital systems in all regional centers. Existing physically obsolete systems and cables are to be substituted with fiber-optical telecommunication lines (FOTL) in order to eliminate the imbalances between commutation equipment and basic main line networks. Major importance is attached to the development of the national link of TransAsian European (FOTL), which will reach from the border with China over four regions of the Republic to the boarder with Uzbekistan. Making this international line operational will provide sustainable international telecommunications with all countries of Asia and Europe. The line, which is under construction, will be connected with the Russian FOTL, which connects the Far East with the European part of Russia. 41 In order to develop digital telecommunication of zonal and local telephone systems it is planned to link the lines of zone and main networks. The cellular communication network, which will service 18,880 customers in all regional centers of the republic, is being developed. The establishment of joint ventures is developing the manufacturing of telecommunication equipment with foreign companies on the basis of existing production capacities and conversion. During the initial period the production of a limited number of telecommunication equipment, radio spare parts, and microchips is planned; in the future national the telecommunication industry will be developed on the basis of wide integration with leading foreign companies and firms. Kyrgyz Republic Total length of Kyrgyz railway is 424,6 km, covering 323,4 km in the North and 101,2 km in the South, including 219.2 km of station tracks, 92,6 km of approach/branch lines. The freight car fleet amounts to 2457 units and passenger car fleet to 471 units. A core issue in transport strategy will be the formation of North-South trunk-railway, towards Balykchy-Kara-Keche-Djalal-Abad direction with outlet to China. Having connected together the existing dead-end railroads of the northern and southern industrial areas of Kyrgyzstan into unified network, this trunk-railway will ensure reliable interregional transport communication. The construction of trunk railways will require considerable funds and foreign investments. After implementation of the entire project of trunk-railroads, Kyrgyzstan will have the following two alternative outlets to the international network of railroads: Torugart-Jalal-Abad-Andijan to the Turkmenistan and the Caucasus with an outlet to Southern and Central Europe or to Iran and the Near East to the Persian Gulf ports. Torugart-Balykchy-Bishkek-Lugovoye-Arys-Aktau that will allow access via Pre-Caspian port Aktau to all basic directions from Asia to Europe and visa versa. 42 Kyrgyzstan has already commenced the implementation of this project starting with the construction of the first stage of the railway line BalykchyKochkor-Kara-Keche. Regarding construction of Kyrgyz section of the AndizhanDjalal-Abad-Torugart-Kashgar railway, negotiations are underway with the Chinese counter parts. Table-1 Facts on Railway System of Kyrgyzstan (2001) 1. Length of main Routes (km) Double Single 2. Length of Auxiliary/sub Routes (km) 3. Total operational Length (km) Double Single 4. Under Construction Double Single 5. Total Personnel Male Female 6. Number of Wagons Passenger coaches Freight Wagons Containers 7. Number of Stations 8. Number of Border interchange/stations* 30.050 65.636 423.9 3724 1165 421 2351 1939 27 5 (*) Border Stations; Lugovaya, Karasu, Kyzyl-Kiya, Uchkurgan, Djalal-Abad. Road Transport: These days the emphasis has shifted railways modes of transport to roadbased transport system. 79 percent of the freights and more than 80 percent of passengers are now taken care of road-based transport. The government is attaching priority to the existing and alternative transport infrastructure. Top priority in this regard is given to the development of infrastructure that connects Kyrgyzstan with Kazakhstan, Uzbekistan, Tajikistan, and China. 43 Within this mode, private sector has been encouraged to take a dominant place in carrying out major volume of transportation. As of January 2002, there were about 264900 vehicles, including 5547 of freight vehicles, 189679 of passenger cars, 55129 of special cars and 14545 of buses. Table-2: Exchange of permit forms of the Ministries of transport of selected ECO member states No Country 1999 2000 2001 2002 1. 2. 3. 4. Azerbaijan Iran Turkey Kazakhstan 3rd countries Uzbekistan 3rd countries 50 102 100 1000 300 - 30 100 100 5000 420 200 50/89/38 100/25 5000/4958 200/120 - 50/500/50/12 1000/200/- 5. Priority directions of motor transport development: - Development of interstate motor transportation links; - Integration of national motor transport into the international motor transportation system of freight traffic on the basis of establishment of national normative/standard base of industry branch according to international requirements; - Increase of competitiveness among motor carriers; - Improvement of policy and strategy of management of motor transport in terms of market economy; - Assistance in establishment and activity of enterprises of various patterns of ownership in motor transport with attraction for both domestic and foreign investors; - Establishment of conditions for development of competition in the market of motor transportation freight traffic and services; 44 - Development of scientific and technical advance, equitable and mutually advantageous cooperation with foreign scientific and technical institutions; - Development of research-and-development plan of motor transportation enterprises. The establishment of transit transportation systems and outlets to the global sea-lanes are urgent issues for the Kyrgyz Republic and other Central Asian countries. Expansion and development of international trade and economic relations increasingly depends on the status and level of motor roads in the Central Asia and neighbouring countries, particularly in mountainous areas. Kyrgyzstan attaches great importance to the issue of revival and formation of the Great Silk Road routes and takes active measures on its formation. However, international requirements must be met as the country lies within the network of the regional Asian highway. Transit highways: - Irkeshtam - Sary-Tash-Osh –Bishkek - Bishkek - Naryn - Torugart - Kordai (Georgiyevka) - Bishkek - Chaldovar - Osh - Andijan highway section 898 km 539 km 110 km 5 km Five highways of the Kyrgyz Republic are included in the ECO transport and communications Action Program for the decade period of 1998 - 2007. Four of them are included in the network of priority roads of the country and Kyrgyzstan takes measures on projection, construction, and reconstruction of these highways. Bishkek - Osh highway is part of regional Asian highway Irkeshtam - SaryTash –Osh - Bishkek - Kordai (Georgiyevka of the Republic of Kazakhstan), provides an outlet in the south to China and in the north to Kazakhstan. Bishkek - Naryni- Torugart is the second highway by its importance and significance ensuring transit across the territory of the country to the North - South direction from China (“Torugart” frontier point) in the South, and up to the 45 inhabited locality Kordai in the Republic of Kazakhstan in the North. In 1998, at the expense of the grant of Islamic Development Bank was developed the feasibility study of rehabilitation of this highway. The project documentation on implementation of reconstruction works for initial pass-over sections of the road for the amount of US $ 15 million. Also at the expense of the grant of Islamic Development Bank, the country was prepared to launch the feasibility study of rehabilitation of Taraz-TalasSusamyr road (located in the highland valley) and included in the ECO roads structure. Kordai – Bishkek - Chaldovar highway is a part of Almaty-BishkekTashkent-Ashgabat international trunk-highway. This highway will become a basis for formation of the infrastructure of the motor transportation corridor en route in the East - West strategic direction. Airways: Civil aviation is an integral part of the unified transport system. Its special role is defined by a possibility to provide much greater speed of passenger, freight and mail air service on long-distances in comparison with the other modes of transport. At present, the system of civil aviation includes the following air/aviation enterprises: • “Manas” international airport, • “Kyrgyzstan aba joldoru" national air carrier, • “Kyrgyzaeronavigation" state enterprise. Besides, there are 13 private airlines carrying out air service by both domestic and international air flights to the CIS and foreign countries. Islamic Republic of Pakistan The economic strength and social well being of a country greatly depends upon the level of development achieved in its infrastructure of which transportation forms an integral part. It is, therefore, important to understand the basic transportation needs of a country, which relate to the carriage of passengers and 46 freight within a local area that is extended to include inter-city, inter-provincial, and finally international movements. This portion however, is limited to the transportation of overland freight within Pakistan and at the border crossings, especially related to the ECO region. Geographically the whole region is divided into a number of formidable mountain ranges that act as physical barriers mainly running east to west. Despite these intimidating divides, there are accessible corridors that allow passage of travelers and goods. The famous “Silk Route” from China to Europe passed through this region while a part of this lucrative trade also branched southwards towards the Indian sub-continent. With such a rich legacy where folklore and common legendary heroes abound, it is understandable to once again bridge the gap that temporarily separated the region for almost 150 years. Overland transportation and distribution: Except for Turkey, Iran and Pakistan the other seven ECO member countries are land-locked. The importance of overland transportation with access to the major sea ports of the former RCD member states for the future prosperity of the ECO region as a whole therefore, is quite apparent. There is a concerted effort to develop the region as a whole, especially the land locked countries, which have rich mineral, fossil fuel and agricultural resources. All this will require an efficient and cost effective transportation system to cater for the envisaged increase in business opportunities. It will therefore, be necessary to touch the whole range of opportunities that have drawn the ECO member states closer to one another during the last decade. The whole range of overland transportation and distribution services includes: Inland waterways Railways Road Inland waterways: While inland waterways is an important and inexpensive means of transportation this region unfortunately, is not blessed with such a natural “thoroughfare”, except on the shores of the Caspian Sea, which serves a small area connecting eastern Azerbaijan with northern Iran and western Turkmenistan. Even though the mighty Indus traverses the complete length of Pakistan, it carries 47 negligible traffic, as the unpredictable and seasonal flow of water is not conducive to ensure its position as a serious mode of transportation. Railways: The rail network in Pakistan is Broad Gauge and covers about 8,500 km of track with 737 stations, 575 locomotives (almost all over 25 years old), over 25,000 freight wagons (mostly out-dated) and about 2,000 passenger coaches. The main line connecting Karachi with Peshawar is almost 1,800 km and allows a top speed of 120 km per hour for modified coaches and wagons. With the exception of about 350 km between Lahore and Lodhran where electric locomotives are used, dieselelectric locomotives serve the rest of the network. International Rail Connections: There are presently four railway stations that handle international traffic, which are: a) Taftan in the province of Baluchistan lies on the Iranian border. A Standard Gauge connects Mirjaveh, the Iranian border town with Zahidan less 120 km away. b) Chaman in Baluchistan where cargo is transferred to / from road vehicles for carriage between Spin Buldak, the Afghan border town and beyond, as there is no rail service in Afghanistan. Chaman is almost 125 km from the southern city of Kandahar. c) Landikotal in the province of NWFP (North Western Frontier Province) from where road vehicles carry cargo between Jalalabad, Kabul and beyond. The Landikotal / Torkham border crossing caters for the majority of the traffic under the Afghan Transit Trade Agreement d) Wagah in the province of the Punjab has a well-developed rail link with India, which also has a Broad Gauge network. The Wagah / Atari border crossing now is not operational since the suspension of the rail service by India in February 2002. 48 49 With an efficient and well-operated rail system, the movement of large volumes of freight over long distances will be fast and cost effective compared with the same volume moving by road. With the possibility of private investors operating freight trains, in the near future it is expected that this commercially oriented service would attract a substantial volume of business both from the domestic market and tonnage representing sea-borne trade. With the need to promoting trade and cultural links within the ECO region and the need to provide a cost effective access to international markets it is necessary to reexamine the plan to introduce a rail system in Afghanistan. While Turkey and parts of Iran have a rail link with Europe this mode of transportation is unfortunately, not available to Pakistan and the rest of the sub-continent as there is a stretch of about 400 km that needs to be constructed between Zahidan and the city of Kerman. The establishment of a railway system in Afghanistan is to be seriously considered. The old proposal of the late 70’s is to be re-examined. The short stretch of less than 150 km between Chaman and Kandahar may be considered as Phase I of this major project. The missing rail link of about 300 km between Zahidan to Kerman in Iran is to be considered for construction, as it would connect Pakistan and the rest of the sub-continent with Europe. At the same time, it would provide an alternative overland route between the ECO region and Europe. Roads: The network of roads provides the greatest flexibility to the movement of passengers and freight in a country. The optimum density of the road network is considered to be in excess of 0.5 km. per square km. The total road network in Pakistan is in the region of 188,000 km, which gives a density of less than 0.2 km per square km. There is therefore, a need for further development of the road infrastructure. 50 Road Traffic between Pakistan & ECO Countries (in tonnes) Exports 1999 National Flag Afghanistan Azerbaijan Iran Kazakhstan Kyrgyzstan Pakistan Tajikistan Turkey Turkmenistan Uzbekistan 2000 Foreign Flag National Flag 2001 Foreign Flag National Flag Foreign Flag 12,148 - 27,200 14,000 25,029 15,000 35,314 - - - - - 3,186 25,777 33,990 16,085 78,140 - - - - - - 15,334 52,977 19,079 59,019 31,084 113,454 5,079 Imports 1999 National Flag Afghanistan Azerbaijan Iran Kazakhstan Kyrgyzstan Pakistan Tajikistan Turkey Turkmenistan Uzbekistan 2000 Foreign Flag National Flag - - - 33,986 78,623 29,157 - - - 33,986 78,623 Foreign Flag - National Flag 87,471 - 29,157 2001 35,924 87,471 Foreign Flag 92,377 35,924 92,377 Note: Trade between Pakistan and the Central Asian Republics were negligible by road but some traffic moved by air. 51 Road Links: There are presently five international road border crossings in Pakistan, which are listed below. It is unfortunate, that no data is available to indicate the volume of traffic in each of these locations. a) Taftan / Mirjaveh on the Iranian border is an important crossing as the road traffic between the two countries and the limited movement to other ECO countries (other than Afghanistan) passes through this customs station. b) Chaman / Spin Baldak has traditionally been less significant of the two border crossings between Pakistan and Afghanistan. This could change in the future as it is the closest custom station located on the route from the new port of Gwadar to Afghanistan and beyond to the northern ECO states. The road traversing the short but steep Kojak pass needs to be widened to improve the flow of long vehicles once the envisaged traffic materializes. Quetta, the provincial capital of Baluchistan and the southern city of Kandahar in Afghanistan are to enhance their image as the two important commercial staging centres on the shortest route to Central Asia, provided of course, the security concerns in Afghanistan are satisfactorily brought under control. c) Landikotal / Torkham is the main border crossing between Pakistan and Afghanistan. This facility should continue to play an important role in the future trading pattern that is emerging. Cargoes originating from the provinces of Punjab and NWFP would move on this route together with the sea-borne traffic from Karachi to and the northern regions of Afghanistan and beyond to Tajikistan, Uzbekistan and Kyrgyzstan. d) Sust on the Highway between Pakistan and the Chinese province of Xingiang is presently involved with the movement of the limited flow of goods between the two countries. The all weather road through the formidable Karakoram Range is able to carry long vehicles despite the fact that the Kunjrab Pass is over 16,000 feet. The road is being further improved to cater for the envisaged increase in traffic well into the 21 centaury. It is possible to carry freight on this route to Tajikistan and Kyrgyzstan lying on the eastern flank of the region comprising of ECO countries. 52 e) Wagah / Atari border crossing between Pakistan and India remains closed since February 2002 except for the small tonnage of Afghan exports, consisting of dried and fresh fruits to Indian. Future Plans: The government of Pakistan has emphasized the need for greater trade and interaction within the ECO region. A number of long term steps have already been taken with the development of the new deep-water port at Gwadar. It has sanctioned funds to undertaking an engineering survey in Baluchistan with a view to establishing a rail link from the new port to the existing railway track leading to Afghanistan and Iran. There is a need to examine the possibility of developing an alternative route via the Karakoram Highway via the China route, which would provide the right of way for this traffic. The Government of Pakistan would have to progress this subject with the Chinese government. Good air connections and modern communication links would be another important factor to be considered for the regions’ prosperity. Easy international access and unhindered traveling within the region would all act as a catalyst towards achieving its objective. The will to bringing about a change for the better is however, the most important element that would make the difference between success and lost opportunities! 53 Proposed rail links from the new port of Gwadar to the Quetta / Taftan railway line. Baluchistan, Pakistan 54 Map 2 – Iran 55 56 Map 3 – Air Connections from Pakistan 57 Republic of Tajikistan Road transport Transport sector in Tajikistan is an integral part of its economy and plays an exceptionally important role. After independence Tajikistan has turned from a region of inadequate roads into country of modern transport infrastructure. Road transport is the most popular mode, used for movement of cargo and passengers to almost all regions in Tajikistan. However, during the period from 1991 until 2000 the number of road vehicles (except motorcars) tended to decrease which affected the dynamics of cargo and passengers traffic and as a result the turnover in road transport sector rapidly decreased. At present, 72,7 percent of the whole fleet of road vehicles consists of private motorcars. Licence system serves as a basis for the motor transport management Most of the road fleet is made of all-purpose trucks with an average loading capacity. There is a strong demand for dump trucks, wagons, refrigerator vans and tankcars. Existing supply of trucks in the home market is inadequate. The available stock does not comply with the commercial and technical world standards. Motor roads Effective operation of road transport can be ensured with proper infrastructure, including motor roads. Total length of the national motor roads exceeds 30000 km, 13612 km. of which are intended for general use. Motor roads density amounts to 0,095 km/km2 and 2,27 km/thousand people. Motor roads network controlled by the Ministry of Transport is 13624 km, including 10157 km. with asphalted concrete pavement, 2539 km. with blacktop and gravel pavement, 928 km. with soil pavement. The bridges have a total length up to 36567 running meters. Most of the roads pass through mountain areas; due to the lack of the ground, these roads are paved close to mountain sides or along mountain rivers. They, thus, remain permanently damaged by landslides, landslips, stone falls, floods and other natural disasters. 58 During the last years, motor roads in Tajikistan were characterized by rapid decrease of the pavement loading capacity. Most of them (more than 80%) were planned and paved several years ago for the axial load up to 6-tons. The road transport fleet has now undergone many changes. Nowadays, modern trucks and buses are with axial load exceeding 10 tons. Their maintenance cause intensive damage to the existing roads. Annual maintenance control confirmed that only 20 percent of all motor roads could be considered durable. Most of them have dangerous defects. Up to 30 percent of road, bridges and overpasses in Tajikistan do not meet the modern load capacity standards (average loading 30 tons), about 7 percent of them are considered to be unsafe. Railway transport The railway transport is distinguished by high transportation capacity with low transport costs, regular traffic, and large investments for construction of railways, which can be reimbursed only with the great quantity of transport flows. Still the railways plays a great role in the national economy and includes three sections: Northern in Sugd region, Central in Dushanbe region and Southern in Khatlon region. All these sections are isolated. Connection between them can be established only via the territories of other countries (Uzbekistan and Turkmenistan). The role of railways in local transport infrastructure is significant, about 90 percent of external freight forwarding is carried out by rail. During 2000, the share of rail transport amounted to 56,3 percent. By the end of 2000, the freight cars fleet had 2015 units, including 442 box cars, 234 goods trucks, 522 open wagons, 106 tanks, 212 isometric and 499 other types of cars. The average working life of these cars is 32 years. Already the average age of these cars was 23 years. The situation is the same with the passenger cars fleet, which included 300 units (139 compartment cars, 117 carriages with numbered reserved seats, 10 sleeping-cars, 11 restaurant cars, 15 baggage cars, 4 special technical cars, 2 generator cars and 1 interregional car). The average age of each car makes about 19.6 years. There are 860.5 km. of rails. Every 3-year a renewal is required, that is equal to the annual repair of 180 km. of wooden sleepers. Every 9-year a mid-life repair is required, that is equal to 90 km. of wooden sleepers and 45 km. concrete ties. In addition, each 12-year period major repair has to be carried out, that is equal to 93 km. of wooden 59 sleepers and 44 km. of concrete ties. Due to the lack of financial support, all required repair works could not be carried out during the last three years. Locomotive fleet includes 57 diesel locomotives with the average age of 20 years; 21 of them were to be written off by January 2001. Power supply, signaling, and communication in railway transport have been operated for a long time without any reconstruction or repair works. Part of the equipment has become out of date. Lines of communication (cable and air), power lines, and substations 6-10/0,4 kilovolt were constructed more than 25 years ago. Main supply line Bekabad-Kanibadam has been operating for more than 38 years, with an average working life up to 20 years. Existing main communication cable at the stations of Khoshadi and Kurgan-Tube was constructed in 1972 and has been operative for 28 years with an average working life up to 25 years. Foreign investments are needed for improvement of transport infrastructure in Tajikistan. Up today feasibility studies for projects Zigar-Hostav-Shkev and ShagonZigar, Kulyab-Kalay-Humb motor road have been produced. These projects will be implemented with the loans from IDB, Kuwait Fund and other international co-financing institutions. ADB will provide US $ 20 mln. for rehabilitation of motor road DushanbeKurgan-Tube-Dangara-Kulyab, that makes 76 percent of the total cost of the project. ADB intends to provide Republic of Tajikistan with US $ 40,0 mln. loan for realization of other projects. Construction and rehabilitation of motor roads in major directions, forming of modern transport corridors and attraction of traffic flows will help to eliminate economic isolation, ensure stable economic development, industrial and agricultural production, reduce unemployment. 60 Table-1 Facts on Railway System of Tajikistan (2001) 1. Length of main Routes (km) Double Single 2. Length of Auxiliary/sub Routes (km) Station Subsidiary 3. Total operational Length (km) Double Single 4. Under Construction Double Single 5. Total Personnel Male Female 6. Number of Wagons Passenger coaches Freight Wagons Containers 7. Number of Stations 8. Number of Border interchange/stations* (*) Border Stations; Pakhtaabad, Khoshady, Nau, Kanibadam. 62.4 553.8 210.7 54.1 62.4 943.4 5959 1586 280 1813 902 36 4 Republic of Turkey Transport System: Turkey is located between Asia and Europe serving as an intersection of trade. Transport sector has a significant role in economy since the country is surrounded by sea on three sides and covers an extensive area of 814,578 sq. kilometers. Transportation is gaining even more importance now with globalization. Transport sector consists of land, sea, air and rail transport. There is no inland water transport in Turkey except Lake Van ferry operation. Transport has been the locomotive and major contributor to economic growth, competitiveness and employment. 61 In Turkey, railways was the main driving force of Turkey’s economic development following the foundation of the Republic in 1923 until 1950s. The railway network was about 4,000 route km in 1920s, and while national policies favoured railway transportation in the first two decades, the network grew to about 7,000 km. After 1950s transport policy changed, giving more emphasis to highway transportation and resulting in a rapid expansion of the national road system. The road network expanded from 18000 km in 1920 to 63,167 km in 2001 including 1851 motorways, 31,376 km state roads, 29,940 km provincial road excluding village roads and forest roads. The development of the road transport was further encouraged by three factors during recent decades: • rapid development of the domestic automotive industry after the 1970’s. • an infrastructure investment program which resulted in the construction of 1300 km of motorways in the 1980s. • failure of successive Governments to adopt policies which would either require or allow the publicly owned railway industry effectively to respond to a competitive transport market structure dominated by private sector operators. The highway led the domestic freight transport with a share of 89.10% in 1999, the ratio is 4.36% for railway, 4.76 for maritime and 0.185 for airways. 96% of the domestic passenger transport in Turkey is by road. Road: Turkish road network is 354,382 km in total. International Highway network of Turkey, called E-Road, spreads across the country from west to east and north to south. Infrastructure and operations are separated in road transport like in other countries. The government is fully responsible for the construction and maintenance of the road infrastructure through General Directorate of Highways within Ministry of Public Works and Housing, Highway operators are completely private. Railways: During the establishment of the Turkish Republic in the 1920s, State intervention in economic activity was widely used to foster economic development. In 1924 private railways in Turkey was nationalized by Law but by the beginning of multi-party 62 democracy in 1950s, the dominant role of government was more widely questioned. However, the role of the State in the railways industry was not seriously challenged. The railways are now governed by laws and policies which are rooted in its historical nature as a public service monopoly, rather than reflecting current economic realities. Prices have been distorted by regulatory authorities in favour of certain classes of passengers and shippers. The railway continues to offer services which are no longer in demand, at prices below cost. Table-1 Turkish rail transport system (2001) (km) Non-electrified 6,778 Mainlines 141 Doubling Mainlines 6,919 Total Mainlines 1,899 Subsidiary Lines 8,818 Total Source: TCDD Annual Statistics 2001 Electrified 1,479 273 1,752 370 2,122 Total 8,257 414 8,671 2,269 10,940 Table-2 Facts on Railway System of Turkey (2001) 1. Length of main Routes (km) 414 Double 8,257 Single 2. Length of Auxiliary/sub Routes (km) 2,269 3. Total operational Length (km) 414 Double 10,526 Single 4. Under Construction Double Single 5. Total Personnel 45,175 Male Female 6. Number of Wagons 1,385 Passenger coaches 16,513 Freight Wagons Containers 7. Number of Stations 911 8. Number of Border interchange/stations* 6 *Border Stations; Kapikule (Bulgaria), Pityon (Greece) Meydanekbez (Syria), Nusaybin (Syria), Kapikoy (Iran), Dogukapi (Armenia) (Closed) 63 The number of staff employed in railway sector is more than 45.175 including affiliated corporations which are manufacturing locomotive and rolling stock. For improving financial and operational performance of business units, considerable emphasis is being placed on improving revenue yields by increasing tariffs and service quality. Maritime In Turkey, 7 big public ports comprising Derince, Bandirma, Mersin, Iskenderun, Samsun, Haydarpasa and Izmir are operated by TCDD – Turkish State Railways, all having connections to railway network and accept Izmir in other points have been registered as international ports and container terminals. Table -3: Capacities of TCDD ports Ports Ship / Year Freight (Handling (1000 tons) General Cargo Passenger Dry Bulk Container Total Haydarpasa Derince Samsun Mersin Iskenderun Bandirma Izmir 2,651 1,105 1,130 2,650 630 1,037 2,389 623 3,240 1,246 2,834 1,799 2,189 2,639 3,224 2,636 1,469 3,082 2,855 4,082 5,916 1,799 2,189 5,494 3,224 2,636 5,551 Total 11,602 5,109 16,790 10,019 26,809 Source: TCDD Annual Statistics 1999 Airways After the adoption of the Civil Aviation Law in 1983 by the Parliament, Turkish air transport sector has shown a significant progress. In this period, not only the modernization and the service standards of the Turkish Airlines (THY) which is a public corporation (100% state owned) but also the number of the private airline operators were increased. The biggest operator is Turkish Airlines (THY) and its shares will be sold in 64 near future. There are 8 private airline operators. In parallel to these developments, the market share of airways has improved. There is no full competition in domestic flights since the leader air operator is Government and its investment is covered by the State in the meantime. Table - 4: Airports in Turkey Type of Airports No International and domestic Domestic and charter Domestic Cargo 10 9 16 1 TOTAL 36 Source: DHMI (General Directorate of State Airports Operations) Combined Transport The main combined transport market for Turkey is ISO containers. Considering these facts, combined transport strategy for Turkey is focused on developing a commercial combined transport business in partnership with private sector. There are three main potential container markets which are given below: • Transit via Turkey to/from the Middle East, Central Asian Republics, Black Sea Region and the Caucuses (extending northwards to Russia). The source of trade may be either overland to Turkey and then transit, or an alternatively via Turkish seaports as maritime cargoes and then overland transit. • International trade between Turkey and these same regions. • Domestic flows, including to / from seaports as traffic nodes. With trade growth, port expansion, further development of Inland Container Terminals and unit load train services, containerized transit trade does have more potential. 65 Ro-Ro Transport In recent years, due to the problems arising in the road transport, ro-ro transport has increased to significant level. 28% of the total export to the European countries and 6% of the total import from European countries is realized by ro-ro transport. There is ro-ro transport between the following lines. There are 29 ro-ro vessels in Turkish fleet. 6 regular private ro-ro vessels are operating to CIS countries through Black Sea. RO / RO Line Cesme-Bari/Brindis/Ancona Cesme-Trieste Kumport-Trieste Tekirdag-Trieste Derince-Constanta Derince-IIyichevsky Haydarpasa-Trieste Samsun-IIyichevsky Samsun-Novorossisky Trabzon-Sochi Zonguldak-Crimia Country Italy Italy Italy Italy Romania Ukraine Italy Ukraine Russia Russia Ukraine Source: Ministry of Transport Ferry transport Train ferry operation was started between the ports of Constanta and Samsun. There are studies to identify common standards to ensure efficient ferry operation between the ports of Samsun and Novorossisk, as well. Mersin and Samsun ports which are very well equipped for ferry transportation, have been included in the international rail-ferry terminals by the AGTC Agreement. Turkmenistan Road transport Public road transport sector includes 62 enterprises, located across the whole territory of Turkmenistan, involving more than 13,5 thousand employees and 12 thousand transport means. The Ministry of Road Transport of Turkmenistan transports each year 90 percent of all passengers and 74 percent of all goods in Turkmenistan. 66 Enterprises of the Ministry of Road Transport are involved in daily implementation of large-scale programmes, aiming at improvement of different spheres of national economy. Turkmenistan joined a number of conventions on inland transport, elaborated, and signed within ECO, UN, and international organizations such as MCAT and FIATA. These allow carrying transport operations in any country of the region, based on simplified border-crossing procedures and provide overall transport-forwarding services. Licensing and working out of legal acts, signing of bilateral and multilateral agreements on international road connection with other countries, control of their implementation is carried out by the Ministry of Road Transport. It ensures harmonized development of the relevant market and protects national rights. It also ensure establishment of a common economic area in Turkmenistan. Sea transport The port was established in October 1896, 27 years after the establishment of Krasnovodsk (Turkmenbashi). Before this port turned to be a self-dependent economic unit, the main customer for cargo sea transport from Russia and Caucasus had been the Caspian railway. Port of Kransnovodsk was founded in Muravyev bay, in the southeast of the city, surrounded by Kubadag, Shagadam and Ufra mountains. Port improvement was carried out along the northern coast, aiming to link both the harbors. To combine and regulate goods and passengers transport, Commercial Sea Port Department was established on January 1, 1903. In 1959, the construction of a ferry crossing was launched. Turkmenistan is one of the countries in the region with a good opportunity to transship cargo by vessels from Turkmenbashi to Russia and Europe. In 1993, three dry cargo ships of 3000 tons displacement were purchased "S. Niyazov", "Mahtumkuli" and "Turkmenistan". After that operation of 5000 tons ship "Balkan" was started. Turkmenistan, with its reach oil and gas resources has a strong need for tanker fleet. Turkish shipbuilding company "Bsrk Denizchilik" received an order from the government of Turkmenistan to construct the first oil tanker of river-sea class, with capacity up to 5000 tons. At present, this tanker actively operates along Turkmen sea lines, transporting oil products. 67 Republic of Uzbekistan Railways The state joint-stock railway company "Uzbekistan railways" was formed in November 7, 1994. The operational length of "Uzbekistan railways" is 3986 km, structure of the company includes 246 stations equipped with electrical centralization of pointers and signals, 1579 km of sites are equipped with dispatching centralization and 935 km are automatic lock-out, 619 km are electrified. "Uzbekistan railways" there are 19 locomotive and wagon depots, 11 divisions of the signal system and communication, 25 divisions of line and power supply. In 2001, the following projects were completed: The railway traffic on a site Uchkuduk -Misken by the extent of 226,4 km. was opened. The factory on repair of carriages in city Tashkent equipped by modern equipment and technological lines, shipped from Germany, Holland, Japan, Southern Korea, Poland, Finland, and England was upgraded. The operations on electrification of railway lines on a site Marokand-Bukhara were undertaken. The rehabilitation of path on a site Chengeldi-Samarkand was carried out. There are 125 enterprises in the state joint stock company, including 30 enterprises of the basic activity, 7 industrial enterprises, 20 enterprises of contract activity, 52 enterprises of social sphere, 4 enterprises of a subsidiary agriculture and 12 others. From the total, 83 are state enterprises, 31 joint-stock companies, and 3 joint ventures. By 2000, 42346 thousand tons of cargoes were transported with cargo turnover 15,4 billion ton/kilometer. Under the forecasts by 2005, the volume of transportation of cargo will make about 45 million tons, cargo turnover will be 16000 million ton/kilometer, and passenger turnover would be 2,200-million passenger kilometer. The whole length of the railway lines will be 4400 km, including 900 km electrified. The turnover of cargo by railway makes more than 66 percent of the cargo turnover of all modes of transports, except pipeline. Main cargoes transported by the railway are: petroleum 29,9 percent building cargoes 26,1 percent, coal 7,3 percent, clap filament 2,4 percent, chemical and mineral fertilizers 6,3 percent. 68 Road transport The existing network of the basic highways of Republic of Uzbekistan becomes the integral part of the international road network, both in Central Asia and other regions of the World. The total length of roads makes 147 thousand km, including, highways of general usage 44 thousand km, inter-economic roads 78,6 thousand km, street of the cities and the regional centers 13,8 thousand km, inspection and access roads 7,4 thousand km, other roads 3,0 thousand km. From highways of general usage, 3300 km are highways of the international importance, 20000 km are highways of state importance, 21469 km highways of local importance. The concern "Uzavtoyul" is the association uniting on a voluntary basis the state joint-stock companies, collective enterprises and organizations, carrying out designing, construction, reconstruction, and operation of highways and bridges. The concern "Uzavtoyul" is the member of the International Road Federation (IRF) and member of the World Road Association (PIARC). List of project for transport sector development: Name of project Mode of transport Cost million ($ US) Name of Bank Modernization of the airports in Samarkand, Bukhara and Urgench Uzbekistan airways 165.60 Modernization of the "Tashkent" airport Reconstruction of the Center for technical servicing for modern aircrafts m/by USA, EU and e.c. in Tashkent Improvement of the passenger train and traffic Uzbekistan airways Uzbekistan airways 48.00 Bank of international relation of Japan EBRD 18.80 Bank of KfW Germany Uzbekistan railways 50.47 Uzbekistan railways Uzbekistan railways Uzavtotrans 70.00 Bank of international relation of Japan ABRD 40.00 EBRD 29.00 World Bank Rehabilitation railways Renewal of the rolling stock (projects of import electric locomotives) Develop of the passenger transportation and traffic at the town, large and small urban communities ECO PRIORITY ISSUES 69 Early operationalization of ECO transit regime including TTFA and TTA Construction of missing road and railway links such as Kerman-Zahedan and Mashad-Bafq etc. Operationalization of container trains from Almaty to Istanbul and possible links to Europe. International passenger train from Almaty to Istanbul via Tehran. Trade and transport facilitation measures within the region including easy access to visas, reduction of transit fees and simplifying custom procedures. 70 Country Profiles 71 Afghanistan Official Name Head of State National Day Capital Area Border countries Official Language Population GDP (at current prices) GDP per capita National Currency Unit Interim Administration of Afghanistan President H.E Mr. Hamid KARZAI 19th August (Independence Day-1919) Kabul 652,090 sq.km. China, Iran, Pakistan, Tajikistan, Turkmenistan, Uzbekistan. Pashto and Dari (Afghan Persian) 22,500 thsd. persons (2001) 11,200 mln US$ (1998) 478.6 US$ (1998) Afghani (AFA) Exchange rate (AFA/US$) 39,000 (June 2002) Imports Total value: 450 mln US$ (2000) Major Items: petroleum products, foodstuff, sugar, wheat, flour, rice, cooking oil, agricultural inputs, electronics, crockery, cars/motorbikes, auto parts, fabrics, cosmetics, tires, tea. Exports Total value: 130 mln US$ (2000) Major Items: Dried fruits and nuts, carpets and rugs, wool, raw cotton, hides and pelts, natural gas, precious and semiprecious gems. Natural Resources Natural gas, petroleum, hydrocarbon, coal, copper, chrome, talc, barites, sulfur, lead, zinc, iron ore, tin, salt, gold, silver, lapis, uranium, rubies, rare metals. Agricultural Products Wheat, meat, fruits, nuts; wool, mutton, karakul pelts Main Industries Small-scale production of textiles, soap, furniture, shoes, fertilizer, cement; hand-woven carpets; natural gas, oil, coal, copper, leather, gold and silver jewelry. 72 Azerbaijan Official Name (local form) Head of State National Day Capital Area Border countries Official Language Population GDP (at current prices) GDP per capita National Currency Unit Exchange rate (AZM/US$) Imports Exports Natural Resources Agricultural Products Main Industries Azerbaijan Republic (Azarbaycan Respublikasi) President H.E Mr.Heydar ALIYEV 28th May (Establishment date-1918) Baku (Baki) 86,600 sq.km. Iran, Turkey, Russia, Georgia, Armenia. Azerbaijanian (Azeri) 8,100 thsd. persons (2001) 5,716 mln US$ (2001) 705.7 US$ (2001) Manat (AZM) 4,870 (June 2002) Total value: 1,465 million US $ (2001) Major Items: machinery and equipment, food products, beverages, spirits and vinegar, tobacco, base metals, vegetables, musical instruments, electrical & medical equipment, mineral products, alive animals, plastic, rubber, chemicals and textiles. Total value: 2,079 million US $ (2001) Major Items: oil and gas, oilfield equipment, machinery, mineral products, base metals, chemicals, textile, cotton, vegetables, foodstuffs, electrical equipment. Petroleum, natural gas, alumina, iron ore, nonferrous metals. Cotton, grain, sugar beet, rice, grapes, fruits, vegetables, tea, tobacco; cattle, pigs, sheep, poultry, goats. Petroleum and natural gas, petroleum products, oilfield equipment, mineral substances, metallurgy, pulp & paper, wood & wood products, steel, iron ore, foodstuffs & tobacco, cement; chemicals and petrochemicals, textiles. 73 Iran Official Name form) Head of State National Day Capital Area Border countries (local Islamic Republic of Iran (Jomhuri-ye Eslami-ye Iran) President H.E Hojjatoleslam Seyed Mohammad KHATAMI 11th February (Islamic Revolution of Iran-1979) Tehran 1,648,000 sq.km. Afghanistan, Armenia, Azerbaijan (Nakhichevan), Iraq, Pakistan, Turkey, Turkmenistan. Persian (Farsi) Official Language 64,900 thsd. persons (2001-2002) Population 128,194 mln US$ (2001-2002) GDP (at current prices) 1,975 US$ (2001-2002) GDP per capita Rial (IRR) National Currency Unit Exchange rate 7,916.60 (June 2002) (IRR/US$) Imports Exports Natural Resources Agricultural Products Main Industries Total value: 18,138 million US$ (2001-2002) Major Items: Road vehicle & machinery, base metals, chemical products, iron, steel & manufactures, animal and vegetable fats, chemicals & pharmaceuticals, food & live animals, plastics, tobacco, and technical services. Total value: 23,716 million US$ (2001-2002) Major Items: Petroleum, gas, and petrochemical products, mineral products, food products, carpet, pistachio, caviar, skin and leather, handicrafts, fresh & dried fruits, hides, iron and steel, chemicals, textiles, refined copper. Petroleum, natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur. Wheat, rice, barley, potato, sugar beets, cotton, date, pistachio, nuts, fresh and dried fruits, poultry, meat, dairy products, wool, caviar, flowers and medicinal plants. Oil and gas, steel, aluminum, copper, electric and electronic equipment, cement & other building materials, metallurgy, home appliances, iron, textile, rugs and carpets, tapestry, miniature, ceramic, food processing (particularly sugar refining & vegetable oil production), petrochemicals, and car manufacturing & assemblies. 74 Kazakhstan Official form) Name (local Republic of Kazakhstan (Qazaqstan Respublikasy) Head of State President H.E. NAZARBAYEV National Day 25th October (Republic Day-1990) Capital Area Border countries Astana 2,724,900 sq km. China, Kyrgyzstan, Turkmenistan, Uzbekistan, Russia Official Language Kazakh, (Russian widely used in government and business) Population 14,821 thsd. persons (2001) GDP (at current prices) 22,391 mln US$ (2001) GDP per capita 1,510 US $ (2001) National Currency Unit Tenge (KZT) Exchange (KZT/US$) Import Export Natural Resources Agricultural Products Main Industries Mr. Nursultan Abishevich rate 153,10 (June 2002) Total value: 6,363 mln US$ (2001) Major Items: Machinery and parts, industrial materials, oil, natural gas and consumer goods. Total value: 8,647 mln US$ (2001) Major Items: Oil, ferrous and non-ferrous metals, chemicals, grain, wool, and meat. Oil and gas, coal, iron ore, manganese, chrome ore, nickel, cobalt, copper, molybdenum, lead, zinc, bauxite, gold, silver, aluminium, uranium, potassium, cadmium, salt and construction materials. Grain (mostly spring wheat), cotton; wool, livestock. Oil, coal, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur, iron and steel, nonferrous metal, tractors and other agricultural machinery, electric motors, construction materials. 75 Kyrgyzstan Official Name (local form) Head of State National Day Capital Area Border countries Official Language Population GDP (at current prices) GDP per capita National Currency Unit Exchange rate (KGS/US$) Import Export Natural Resources Kyrgyz Republic (Kyrgyz Respublikasy) President H.E Mr.Askar AKAYEV 31st August (Independence Day-1991) Bishkek 198,500 sq km China, Kazakhstan, Tajikistan, Uzbekistan. Kyrgyz, Russian (lingua franca) 4,974 thsd. persons (2001) 1,525 mln US$ (2001) 310.7 US$ (2001) Som (KGS) 47.97 (June 2002) Total value: 467.2 mln US$ (2001) Major Items: grains, mineral products, natural gas, automobile fuel, bituminous coal, kerosene, cars, equipment and machinery, products of chemical, vegetable, lumber, textile and base metals. Total value: 476.1 mln US$ (2001) Major Items: precious metals, electric power, tobacco, cotton, scrap and wastes of aluminum, chemicals, filament lamps, means of land transport and spare parts, agricultural products (vegetables and fruits), cement and slate, copper wastes and scrap, raw leather and wool. Hydropower; gold and rare earth metals; coal, oil, natural gas, nepheline, mercury, bismuth, lead, and zinc Agricultural Products Tobacco, cotton, potatoes, vegetables, grapes, fruits and berries; sheep, goats, cattle, wool Main Industries Small machinery, textiles, food processing, cement, shoes, sawn logs, refrigerators, furniture, electric motors, gold, rare earth metals. 76 Pakistan Official Name (local form) Head of State National Day Capital Area Border countries Official Language Population (thsd. persons) GDP (at current prices) GDP per capita National Currency Unit Exchange rate (PKR/US$) Imports Exports Natural Resources Agricultural Products Main Industries Islamic Republic of Pakistan (Islam-i Jamhuriya-e Pakistan) General Pervez MUSHARRAF 23rd March (Republic Day-1956) Islamabad 796,095 sq. km Afghanistan, China, India, Iran English, Urdu (national language) 139,100 (2000-2001) 59,416 mln US$ (2000-2001) 429 US$ (2000-2001) Rupee (PKR) 60.05 (June 2002) Total value: 10,336 mln US$ (2001-2002) Major Items: Industrial equipment, vehicles, iron ore, wheat, tea, fertilizer, non electrical machinery, petroleum & products, chemicals, edible oil, transport equipment, steel & products, grains, electrical goods. Total value: 9,124 mln US$ (2001-2002) Major Items: Cotton, sugar, textile-goods, garments & hosiery, rice, leather items, carpet & rugs, sports goods, fruits, handicrafts, surgical instruments and electrical appliances, sea food (fisheries). Land, extensive natural gas reserves, petroleum, coal, iron ore, copper, salt, limestone. Wheat, cotton, rice, sugarcane, fruits, vegetables, condiments, oil seeds, pulses, maize, barley, tobacco, poultry, goats, beef, sheep, cattle, mutton. Textiles, food processing, cement, fertilizer, steel, sugar, electric goods, shipbuilding, beverages, construction materials, clothing, paper products, shrimp. 77 Tajikistan Official Name (local form) Head of State Republic of Tajikistan (Jumhurii Tojikiston) National Day 9th September (Independence Day-1991) Capital Dushanbe Area 143,100 sq km Border countries Afghanistan, China, Kyrgyzstan, Uzbekistan. Official Language Tajik (Russian widely used in government and business) Population 6,290 thsd. persons (2000) GDP (at current prices) President H.E. Mr. Emomali RAHMONOV 1,035 US$ (2001) GDP per capita 167 US$ (2001) National Currency Unit Somoni (SM) Exchange rate (SM/US$) 2,704 (June 2002) Imports Total value: 915 mln. US$ (2001) Major Items: Alumina, natural gas, petroleum products, electricity, grain, flour, machinery and equipment, foodstuffs. Total value: 877 mln US$ (2001) Major Items: Aluminum, electricity, cotton fiber, fruits, vegetable oil, textiles, precious and semi-precious stones. Exports Natural Resources Aluminium, coal, oil, natural gas, iron, lead, zinc, antimony, mercury, gold, silver, tin, tungsten, uranium, boron, salt, carbonates, fluorite, precious and semi-precious stones. Agricultural Products Cotton, grain, silk, tobacco, fruits, grapes, vegetables; cattle, sheep, goats. Main Industries Hydro-electric power, textiles, garment manufacture, aluminum, zinc, lead, chemicals and fertilizers, cement, vegetable oil, metal-cutting machine tools, refrigerators and freezers. 78 Turkey Official Name (local form) Head of State National Day Capital Area Border countries Official Language Population GDP (at current prices) GDP per capita National Currency Unit Exchange rate (TRL/US$) Import Exports Natural Resources Agricultural Products Republic of Turkey (Turkiye Cumhuriyeti) President H.E Mr. Ahmet Necdet SEZER 29th October (Republic Day-1923) Ankara 783,577 sq.km Georgia, Armenia, Azerbaijan, Bulgaria, Greece, Iran, Iraq, Syria Turkish 68,036 thsd. persons (2001) 148,340 mln US$ (2001) 2,180 US$ (2001) Turkish Lira (TRL) 1,569,143 (June 2002) Total value: 41,399 mln US$ (2001) Major items: Mineral fuels-oils, gas, boilers, machinery and mechanical equipment, vehicles and parts, organic chemicals, plastic and products, cotton yarn and fabrics, pharmaceutical products, optical parts and accessories, paper and paperboard, iron and steel products, aircraft and parts, tanning or dyeing extracts. Total value: 31,334 mln US$ (2001) Major items: textiles, cotton yarn & fabrics, iron and steel products, electrical machinery and equipment, vehicles and parts, edible fruits, nuts, vegetables, salt, sulphur, earths and stone, plastic and rubber products, tobacco, glass and glassware, ceramics. Coal, antimony, mercury, sulfur, lignite, crude petroleum, iron, chrome, copper, boron, minerals, magnasite, lead-zinc. Grain (wheat and barley), tobacco, cotton, dry beans, potatoes, vegetables, tea, fruits (nuts, citrus, grapes, apples, olives), sugar beets, pulses, livestock. 79 Turkmenistan Official Name Head of State National Day Capital Area Border countries Official Language Population GDP (at current prices) GDP per capita National Currency Unit Exchange rate (TMM/US$) Import Exports Natural Resources Agricultural Products Main Industries Turkmenistan President H.E. Mr. Saparmurat Atayevich NIYAZOV 27th October (Independence Day-1991) Ashgabat 488,100 sq. km Kazakhstan, Uzbekistan, Iran, Afghanistan Turkmen, Russian (lingua franca) Russian is widely used in government and business 5,479 thsd. persons (2001) 4,600 mln. US$ (2001) 968 US $ (2001) Manat (TMM) 5,200 (June 2002) Total value: 2,105 mln US$ (2001) Major Items: Machinery and parts, grains, food and beverages, plastics, wheat, flour, textiles. Total value: 2,560 mln US$ (2001) Major Items: natural gas, oil, cotton, petroleum products, chemicals, processed foods, minerals, sulfur, textiles, electricity, and hand-made carpets. Oil, natural gas, coal, precious non-ferrous and rare metals, celestine, sulfur, bentonite and kaolin clays, iodine, bromine, potassium and common salts, marble onyx, various construction materials, fresh subsoil, mineral waters. Cotton, grains, fodder crops, melons, livestock. Natural gas, oil, petroleum products, textiles, food processing, machine building, production of construction materials, carpet weaving. 80 Uzbekistan Official Name form) Head of State National Day Capital Area Border countries (local Republic of Uzbekistan (Uzbekiston Respublikasi) President H.E. Mr. Islam Abduganievich KARIMOV 1st September (Independence Day-1991) Tashkent (Toshkent) 447,400 sq. km Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan Official Language Uzbek, Russian (lingua franca) Population 25,116 thsd. persons (2001) GDP (at current prices) 7,088 million US$ (2001) GDP per capita 282.2 US$ (2001) National Currency Unit Sum (UZS) Exchange rate 750.04/ 757.04 (Official)/1080.0 (Market) (June 2002) (UZS/US$) Import Total value: 3,137 mln US $ (2001) Major Items: Minerals and chemicals, grains, rubber, plastic, machinery and equipment, energy products, textile, pharmacological products, perfume, cosmetics and detergents, ferrous & non-ferrous metals, foodstuffs. Exports Total value: 3,265 mln US$ (2001) Major Items: Cotton, gold, natural gas, fertilizers, silk, mineral and chemical goods, energy products, ferrous and non-ferrous metals, textiles, food products, equipment and mechanical devices, electrical machines and equipment, gears and apparatus, automobiles. Natural Resources Natural gas, petroleum, coal, gold, uranium, silver, copper, lead, zinc, tungsten, molybdenum, aluminum, wolfram, rhenium, marble, granite and gabbro, phosphorites, salts Agricultural Products Cotton, grain, potatoes, vegetables, melons, fruits, silkworm cocoons, astrakhans, hides, leather, wool, grapes, cattle, and poultry. Main Industries Electric power, fuel, natural gas, ferrous & non-ferrous metals, chemical and petrochemical, machine-building, forest, wood processing and paper, construction materials, textiles, food processing, aviation and automobile, metallurgy. 81 ECO IN FIGURES / MAIN STATISTICS Table-1 Landlocked ECO Member States exports to International Markets (1998-Million US$) Countries Industrial Countries Azerbaijan 62.6 2.8 215.2 Middle East + others 7.8 Kazakhstan 1265.1 569.7 522.2 114 Kyrgyzstan 221.5 21.3 83.8 Tajikistan 121.4 15.8 53.7 35.3 0.8 39.8 266.8 Turkmenistan 127.7 28.1 39.5 52.8 4.3 215.6 468 575.30 81.3 Uzbekistan 576 357.4 471.7 303.5 103.2 81.5 1893.3 2447.30 77.4 Total 2374.3 995.1 648.7 1167.7 781.6 6198.6 10,215 60.7 Asia Russia* Europe 38.7 ECO Countries Total transit trade(1) Total Trade(2) ** 169.4 457.8 700.3 Transit Rate (1/2) (%) 65.4 255.3 2726.3 5,403.80 50.5 1.1 20.2 386.4 513.4 75.3 575.1 46.4 231.2 Share of exports going through transit operations (%) 60.7 Source: IMF Trade Statistics (2000) (*) excluding trade with neighbouring countries. (**) Including neighbouring countries. 82 Table 2: Transport Volume in the ECO Region 1999 2000 2001 Export* No. of Trucks Export* No. of Trucks Exports* No. of Trucks 727,513 40,417 733,156 40,740 526.079 635,850 1,820,068 101,115 1,130,833 62,724 Afghanistan Azerbaijan Iran Kazakhstan 562,890 31,272 834,131 46,341 315,436 17,524 Kyrgyzstan 1,581,961 87,887 1,185,687 65,872 1,145,281 63,627 Pakistan 68,312 3,795 78,098 4,339 144,459 8,026 Tajikistan 2,942 163 13,643 758 3298 183 Turkey 493,109 27,395 560,325 31,129 Uzbekistan 162,591 9,033 272,015 15,112 258,069 14,337 Total ECO 3,599,318 199,962 5,497,123 305,395 3,523,455 195,746 Other Countries*** 35,019,492 1,945,527 16,295,204 905,289 13,353,651 741,870 General Total 38,618,810 2,145,489 20,977,509 1,165,417 16,877,106 937,616 Turkmenistan 83 Table-3 International Border Crossing Points of ECO Countries Afghanistan Azerbaijan Iran Kazakhstan Kyrgyzstan International Border Crossing Points (1) Pakistan (2) Iran (3) Tajikistan (4) Uzbekistan (5) Turkmenistan (1) Georgia (2) Russia (3) Iran (4) Turkey (1) Afghanistan (2) Armenia (3) Azerbaijan (4) Iraq (5) Pakistan (6) Turkey (7) Turkmenistan (1) Kyrgyzstan (2) Turkmenistan (3) Uzbekistan (4) Russia (5) China (1) Kazakhstan (2) Uzbekistan (3) Tajikistan (4) China Gazakh, Belokanik Kuba Astara, Kanlihk, Kyahlvae, Julfa Cedorek Dogharoun Nordouwz Astara, Bilehsavar, Jolfa Khosravi Mirjaveh Bazargan, Sero Bajgiran, Sarackhs, Lotfabad, Pol Georgevka, Merke, Kemin Bekdash Stephoe, Kopaya, Akjibit Pogodaevo, Troizk, Chistoe, Karapoga, Zelezinka, Lokot, Kotyaevka, Ozernoe, Tashanta Khorgos, Maikapchagai, Bakhty, Druzhba Georgievka, Chaldovar, Kegan Osh, Karasu, Kizibl-Kiya Isfand, Sari-Tash, Karamik Torugart, Irkeshtam 84 Table-3 International Border Crossing Points of ECO Countries (continued) Pakistan Tajikistan International Border Crossing Points (1) Afghanistan (2) China (3) India (4) Iran (1) Kyrgyzstan (2) Uzbekistan (3) Afghanistan (4) China (1) Iran (2) Georgia (3) Azerbaijan (4) Iraq (5) Syria Turkey Turkmenistan Uzbekistan (6) Bulgaria (7) Armenia (8) Greece (1) Kazakhstan (2) Uzbekistan (3) Iran (4) Afghanistan (1) Kazakhstan (2) Kyrgyzstan (3) Tajikistan (4) Turkmenistan (5) Afghanistan Source: Torkham, Chamman Khunjerab Wagha Taftan Sulokta, Murgab, Dzhirgital Tursan-Zabe, Penjikent, Ura-Tube, Bekabad, Bulok, Kanibadam Ishkashim, Aivadzh Kulma Pass Gurbulak, Esendere Sarp, Turkgozu, Aktas Dilucu Habur Yayladag, Cilvegozu, Oncupinar, Cobanbeyli, Akcakale Kapikule, Aziziye Dogukapi (closed) Bekdash Kunya-urgench, Mangit, Togta, Tezenbazar, Takhiatash, Farap, Gazojak, Kelif, Tallymerjen Gandan, Artyk, Gudriolum, Saragt Gushgy Chernyavka, Kugayaz, Oqzts Khodzhaabad, Aim, Fergana Khavast, Taylak, Uzun, Bekhabad, Kirovo, Pungan Khodzeili, Tokhitash, Mangit, Gurlen, Kshahkupir, Alat Khzarasp, Tarimardzhan, Bordir Khairaton UNESCAP, Transport, Communications, Tourism and Infrastructure Development (TCTID) Division. 85 ECO in Figures 86 Table 4 Status of ECO countries accession or being party to International conventions listed in UNESCAP resolution 48/11 as at 12 April 2002 Convention on road traffic 1968 Convention on road signs and signals 1968 (x) (*) (x) (*) x (*) x (*) Country Afghanistan Iran Kazakhstan Kyrgyzstan Pakistan Tajikistan Turkey Turkmenistan Uzbekistan (*) (*) (*) (*) Custom’s convention on international. transport of goods under TIR carnet 1975 Custom’s convention on Temporary. Importation of commercial road vehicle 1956 (x) (x) (*) (*) (x) (*) (*) (x) (*) (*) Convention on contraries 1972 (*) (x) (*) Notes: (x) Party / acceded (*) Acceded after the adoption of 48/11 Source: UNESCAP / 250 report 87 (*) International convention on the harmonization of frontier control of goods. Convention on the contract for the International carriage of goods by road (CMR) 1956 (*) (*) (*) (*) (*) (*) (*) Table 5 Existing visa fee structure for Nationals of ECO Member States Name of country Islamic Republic of Pakistan For member states Single entry Double entry Gratis Gratis US$10 US$40 Afghanistan Tajikistan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan and Azerbaijan Rls150,000 Islamic (Rs.940) Republic of Iran Rs.283 Republic of Turkey Multiple entry) Gratis US$40 Rls320,000 (Rs.2000) Rls320,000 (Rs.2000) Rs.566 Rs.498 88 Islamic Republic of Pakistan Islamic Republic of Iran Republic of Turkey Afghanistan Republic of Uzbekistan 10 days single 20 Turkmenistan (In US$ dollars) 20 days 1 month 3 months single Single Multiple Single Multiple 30 40 60 100 140 6months 1 year Single Multiple Single Multiple 190 260 370 500 20 30 40 60 100 140 190 260 370 500 16 24 32 48 80 112 152 208 296 400 20 40 40 50 60 60 60 60 140 140 140 140 260 260 260 260 500 500 500 500 Republic of Tajikistan (In US$) Afghanistan, Iran, Pakistan and Turkey Turkmenistan 7 days 14 days 1 month 2 months 3 months 6 months 40 Single 50 Single 60 Single 70 Single 80 Single 120 Multiple 180 Single 240 Multiple 300 20 - 50 Single 70 95 130 185 250 No visa 10 No visa No visa 20 No visa 10 (10 days) 15 (20 days) Single 30 1 year multiple multiple Uzbekistan Azerbaijan, Kazakhstan & Kyrgyzstan No visa No visa 4 No visa No visa 89 No visa Republic of Uzbekistan (In US$) 7days Afghanistan, Iran, Pakistan, Turkey Kazakhstan Azerbaijan Kyrgyzstan, Tajikistan Turkmenistan 15 days 1 month 3 months 6 months 1 year 40 50 60 Single 80 Multiple 150 Single 120 Multiple 150 Single 160 Multiple 250 Gratis -do4 Gratis -do4 Gratis -do4 Gratis -do10 Gratis -do10 Gratis -do15 Gratis -do15 Gratis -do25 Gratis -do25 51 61 71 91 161 131 161 171 261 90 Relevant Maps Map 1 – Central Asia The four road / rail border crossings together with the northern border crossing at Sust into China are marked in the above map. The proposed rail link between Chaman to Kandahar is also marked on the map. 91