Presentation on theme: "Transport and Trade Linkages: Central Asia & Eastern Europe"— Presentation transcript:
1 Transport and Trade Linkages: Central Asia & Eastern Europe Henry KeraliSenior Transport SpecialistThe World Bank
2 Presentation Outline Central Asia Transport & Trade Status reviewMain trade corridors & linkagesTrade & transport trendsImpediments & suggested reformsTransport & Trade Facilitation in Southeast Europe (TTFSE)Current issues, project objectives & key actionsProject components & achievementsRecommendations & Scaling-upThe results of the TRRL studies were used to develop the RTIM2 model whilst the World Bank developed a more comprehensive model incorporating the findings from all previous studies and this led to HDM-III. Both models were originally designed to operate on mainframe computers and, as computer technology advanced, the University of Birmingham produced a microcomputer version of RTIM2 for TRRL. Later, the World Bank produced HDM-PC, a microcomputer version of HDM-III.Further developments of both models continued with the TRRL producing RTIM3 in 1993 to provide a user-friendly version of the software running as a spreadsheet, and in 1994, the World Bank produced two further versions; HDM-Q incorporating the effects of traffic congestion into the HDM-III program, and HDM Manager providing a menu-driven front end to HDM-III.
9 Impediments to Trade & Transport High transportation and handling costsPoor transport infrastructure and transport performanceTrade barriers of neighbouring countriesLong and costly customs procedures and other inspectionsLack of coordination between countries in the regionImpediments amount to between 10 – 15% for roads and 2 – 10% for railTransportation costs amount up to 50%
10 Suggested Reforms Need for regional trade and transport policy Diversification of the transport industry including forwarding, handling, containerization, etcRegional harmonization and implementation of customs proceduresPromotion of trade and transport standardsCommon and transparent transit feesDevelopment of rail shuttle servicesImplementation of international freight handling standards, e.g. TIR, ASYCUDA, etc.
11 Trade and Transport Facilitation in Southeast Europe (TTFSE) World Bank supported project
15 The IssuesThe high cost and uncertainties of trade and transport in Southeast Europe are major constraints on economic recovery and development in the regionComplicated, 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 crimeCustoms 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 assistanceRegional approach/mechanisms:Regional Forum: Steering CommitteePublic – Private Partnerships (PPP)Training programs for transport operators, freight-forwarders, importers, exportersTTFSE websiteSurvey of users
18 Actions (2) Focus on Customs procedural reforms Border Inter-agency awareness and cooperationPilot approach: 27 selected border crossing points and in-land stationsNational CoordinatorPerformance monitoring: overall Customs and pilot indicatorsLocal Project Teams
19 Country & Regional Program Regional Investment Program: US$120 mWB $78 millionUS Government (grant) $13 million;Others: France, AustriaEach project was designed to be country specific, but supported the development objectives by the selection of elements under similar components
21 Common Components Supporting customs reform Strengthening mechanisms of interaction and cooperation between private and public parties at regional, national, and local levelsDisseminating 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 US$8million savings annuallyImproved 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 rolesTransparent and public Customs performance monitoring system in place
23 Achievements in 2 ½ years .. User participation in the evaluation of border agencies’ performanceA collaborative culture of partnership between the public and the private sectorsCertified learning opportunities in road transport operations (85 locations and on-line)Detailed information available to the public at:
24 Achievements in 2 ½ years. Revenue collected by Customs doubled through risk management and selectivity approachHigher than estimated trade volumes increase (e.g almost doubled in Romania)EC – WB Policy Notes from lessons learned
25 Scaling-up TTFREPLICATE the program to other/all borders, and cross-border projects in SEEEXPAND the approach and methods to railways, inland water-ways, ports, airportsSTREAMLINE international transport documentation & linkagesREPLICATE the program to other regions, e.g. Caucasus, Central Asia, South Asia, East Asia, etc.