Transport%20and%20Trade%20Linkages:%20Central%20Asia%20

1
Transport and Trade LinkagesCentral Asia
Eastern Europe

• Henry Kerali
• Senior Transport Specialist
• The World Bank

2
Presentation Outline

• Central Asia Transport Trade
• Status review
• Main trade corridors linkages
• Trade transport trends
• Impediments suggested reforms
• Transport Trade Facilitation in Southeast
  Europe (TTFSE)
• Current issues, project objectives key actions
• Project components achievements
• Recommendations Scaling-up

3
Road Rail Links to/from Central Asia
4
Exports from Central Asia
Source TRACECA (Tons/Year) 2001
5
Imports to Central Asia
Source TRACECA (Tons/Year) 2001
6
Main International Corridors
7
Southern linkages for Central Asia
8
Central Asia Corridor Performance
9
Impediments to Trade Transport

• High transportation and handling costs
• Poor transport infrastructure and transport
  performance
• Trade barriers of neighbouring countries
• Long and costly customs procedures and other
  inspections
• Lack of coordination between countries in the
  region
• Impediments amount to between 10 15 for roads
  and 2 10 for rail
• Transportation costs amount up to 50

10
Suggested Reforms

• Need for regional trade and transport policy
• Diversification of the transport industry
  including forwarding, handling, containerization,
  etc
• Regional harmonization and implementation of
  customs procedures
• Promotion of trade and transport standards
• Common and transparent transit fees
• Development of rail shuttle services
• Implementation of international freight handling
  standards, e.g. TIR, ASYCUDA, etc.

11
Trade and Transport Facilitation in Southeast
Europe(TTFSE)

• World Bank supported project

12
(No Transcript)
13
Program Countries

• Albania
• Bosnia and Herzegovina
• Bulgaria
• Croatia
• Macedonia
• Moldova
• Romania
• Serbia Montenegro

14
(No Transcript)
15
The Issues

• The high cost and uncertainties of trade and
  transport in Southeast Europe are major
  constraints on economic recovery and development
  in the region
• Complicated, opaque and non-standardized border
  procedures affect the business environment and
  deter foreign investment (the Paper Curtain)
• Countries concerned with high level of
  corruption, smuggling, organized crime
• Customs administrations do not have aligned
  legislation and procedures with EU standards

16
Project Objectives

• Reduce non-tariff costs to trade and transport
• Reduce smuggling and corruption at border
  crossings

17
Actions (1)

• Getting donors on board to complement /
  coordinate / provide assistance
• Regional approach/mechanisms
• Regional Forum Steering Committee
• Public Private Partnerships (PPP)
• Training programs for transport operators,
  freight-forwarders, importers, exporters
• TTFSE website
• Survey of users

18
Actions (2)

• Focus on Customs procedural reforms
• Border Inter-agency awareness and cooperation
• Pilot approach 27 selected border crossing
  points and in-land stations
• National Coordinator
• Performance monitoring overall Customs and pilot
  indicators
• Local Project Teams

19
Country Regional Program

• Regional Investment Program US120 m
• WB 78 million
• US Government (grant) 13 million
• Others France, Austria
• Each project was designed to be country specific,
  but supported the development objectives by the
  selection of elements under similar components

20
Total Program Costs
21
Common Components

• Supporting customs reform
• Strengthening mechanisms of interaction and
  cooperation between private and public parties at
  regional, national, and local levels
• Disseminating information and providing training
  to the private sector

22
Achievements in 2 ½ years

• Significant reduction of waiting time at the
  border and inland pilot points (50 and more)
  leading to US8million savings annually
• Improved dialogue among Customs administrations
  through regional consultation and information
  sharing (8 RSC meetings)
• Institutional awareness the facilitation role
  of border agencies vs. revenue collection
  control classic roles
• Transparent and public Customs performance
  monitoring system in place

23
Achievements in 2 ½ years ..

• User participation in the evaluation of border
  agencies performance
• A collaborative culture of partnership between
  the public and the private sectors
• Certified learning opportunities in road
  transport operations (85 locations and on-line)
• Detailed information available to the public at
  www.TTFSE.org

24
Achievements in 2 ½ years.

• Revenue collected by Customs doubled through risk
  management and selectivity approach
• Higher than estimated trade volumes increase (e.g
  almost doubled in Romania)
• EC WB Policy Notes from lessons learned

25
Scaling-up TTF

• REPLICATE the program to other/all borders, and
  cross-border projects in SEE
• EXPAND the approach and methods to railways,
  inland water-ways, ports, airports
• STREAMLINE international transport documentation
  linkages
• REPLICATE the program to other regions, e.g.
  Caucasus, Central Asia, South Asia, East Asia,
  etc.

26
(No Transcript)