REGIONAL ECONOMIC COOPERATION AND CONNECTIVITY IN THE SUB-REGION: POTENTIAL AND CHALLENGES

18 OCT 2012 , NEW DELHI

“ECO & Transit Transport Connectivity”

Dr. Esmaeil Tekyeh sadatDirector of Transport and ComunicationECO

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TRANSIT TRANSPORT OPERATIONAL CONNECTIVITY FLOWCHART

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ECO TRADITIONAL TRANSIT TRANSPORT CONNECTIVITY

MAP OF MARCO POLO'S TRAVELS IN 1271–1295

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ECO Present Geostrategic Location

Features of the ECO region:

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Features of the ECO region:

ECO Geostrategic Economic Capacities

• Historical transit routs – Silk Road• New transit opportunities • Strengthening of regional integration• Dynamic development• Richness of resources• Relative sustainability to crises• Assistance of international community • Landlocked countries• Access to the sea• Border with the EU• Border with the Customs Union (EurAsEC)• Border with China• Post-conflict regions

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ECO TRANSPORT CONNECTIVITY UNDER TRANSPORT TRANSIT FRAMEWORK AGREEMENT (TTFA)

Ò Road CommitteeÒ Rail CommitteeÒ Transit CommitteeÒ Insurance Committee

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ACHIEVEMENTS OF ROAD COMMITTEE

Ò Islamabad- Tehran- Istanbul Corridor (ITI)Ò Iran-Afghanistan- Tajikistan- Kyrgyzstan

Corridor (KIAT)Ò Uniform ECO Visa StickerÒ Permit Ò Receiving National Reports and Developing

Master Plan in cooperation with Consultant

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ACHIEVEMENTS OF RAIL COMMITTEEÒ Islamabad- Tehran- IstanbulÒ Kazakhstan- Turkmenistan- Iran CorridorÒ Almati- Bandarabas CorridorÒ Almati – Istanbul CorridorÒ Rasht- Astara- Baku CorridorÒ Follow up initiative for construction standard

Rail among Iran- Afghanistan- Tajikistan-Kyrgyzstan to China

Ò Developing Master Plan on ECO Rail Networking

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ISLAMABAD –TEHRAN – ISTANBUL ROAD-RAIL CONNECTIVITY

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ALMATY- ISTANBUL – BANDARABASRAILWAY CONNECTIVITY

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ALMATY- ISTANBUL RAILWAY CONNECTIVITY

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RASHT- ASTARA – BAKU RAILWAY CONNECTIVITY

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KAZAKHSTAN- TURKMENISTAN –IRAN RAIL CONNECTIVITY

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ACHIEVEMENTS OF TRANSIT COMMITTEE

Ò Encouraging member states to join Harmonization Convention

Ò Using EPD and RTS along the ITI and KATI Corridors in Cooperation with IRU

Ò Regular Annual Transport-Custom High Official meetings in cooperation with IRU for harmonizing transit Custom along the Corridors and in border crossing

Ò Cooperation with UNCTAD for Custom to Custom connectivity along the Corridors

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1. The Contracting Parties shall establish a Customs Transit System for thecargo and means of transport in accordance with the relevant InternationalCustoms Conventions for the purpose of facilitating the movement of goods int h e i r t e r r i t o r i e s .

TTFA Article 28Establishment of Customs Transit System

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ACHIEVEMENTS OF INSURANCE COMMITTEEACTION PLAN

Ò Developing Criteria's for enhancing ECO Capacity Building for Establishment White Card like green Card & organizing Training courses

Ò Receiving National Report and developing Master Plan in cooperation with Consultant

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ECO PPP INITIATIVES

Ò ECOLPAF InitiativesÒ Initiating joint action course with IRU, UICÒ Use the potential of ECO Bank for transport

projectsÒ Using potential of ECO member states for

ECO ProjectsÒ Planning for ECO Business Transit FORUMS

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ECO KEY OPERATIONAL CORRIDORS

Ò Islamabad- Tehran- Istanbul Corridor (ITI)

Ò Iran-Afghanistan- Tajikistan- Kyrgyzstan Corridor (KIAT)

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ISLAMABAD- TEHRAN- ISTANBUL CORRIDOR (ITI)ACTION PLAN

Ò Using TIR along the Corridor Ò Pakistan accession to TIR

Shortly(Cooperation with IRU)Ò Developing a Logistic Centers and Standard

Road along the Corridor Ò Organizing High Level Working Group

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IRAN-AFGHANISTAN- TAJIKISTAN- KYRGYZSTAN CORRIDOR (KIAT)ACTION PLAN (HERAT MEETING, MAY 2012)

Ò Implementing TIR in AfghanistanÒ Running two TRUCKS with TIR along Iran

borderÒ Planning to run another two Trucks along

Turkey BorderÒ Organizing High level working Group

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ECO/IRU COOPERATIONJOINT ACHIEVEMENTS AND FINDINGS

Ò (i) ECO-IRU Silk Road Truck Caravan (October 2010) was organized to identify actual road transport conditions in the Region

Ò (ii) Upon instruction of ECO Heads of State in December 2010, they agreed to implement ECO Regular Monitoring of Trucks in partnership with NELTI-3 (ECO RMT), where 29 companies in 8 ECO Member States regularly provided data

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Major obstacles on implementation of TIR Convention include:1. Issuance of visa formalities,2. Border crossing points and infrastructure 3. Lack of harmonization of customs and border crossing

regulations,4. Duplication of controls on both sides of borders,5. Different requirements in terms of accompanying documents6. Lack of parking place,7. Standardization of highways, 8. Unofficial payments,9. Differences of price of fuel, 10. Manual processing of documents, 11. Limited working hours at the border crossing points and,12. Long waiting queues

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• high transit fee• low road transport quotas• unofficial payments• stringent visa requirements• multitude of border points• internal customs and check points• lack of information on customs rules and road use• under-developed logistic service• lack of credible insurance companies• poor institutional framework

ECO Transport Transit challenges

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ECO RMT / NELTI-3 PROGRESS

Ò 31 Dec 2011 137 project Questionnaires received from over 30

road transport companies of 7 ECO Member states

Ò 6 Jan 2012 First interim results based on the data from 40

Questionnaires presented at the 173rd ECO CPR

? (40 data entries x 4,5 hrs = 180 working hrs; 3 officers)

Ò End Jan 2012 Data Analysis by NEA begins

Ò 1st Quarter 2012 ECO/IRU Report and recommendations for

National Action Plans of the ECO Member States

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Page 24 (c) International Road Transport Union (IRU) 2012

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ECO RMT MONITORED ROUTES AS OF 31.12.2011

Page 25 (c) International Road Transport Union (IRU) 2012

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ECO TRANSPORT TRANSIT KEY PROBLEMS

Ò (i) Tremendous infrastructure needs;Ò (ii) Lack of adequate mechanisms for custom-to-customs

information and cooperation on both commercial and security matters;

Ò (iii) Lack of adequate offices and logistics facilitiesÒ at Border Crossing Points (BCPs);Ò (iv) Lack of adequate technology and modern equipment with

capabilities of detecting narcotics; andÒ (v) Incompatible automated customs clearance systems with

most neighboring countries.

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ECO PHYSICAL TRANSPORT TRANSIT CONNECTIVITY REQUIREMENTS

Ò Reliable Transit Facilitation Connectivity at Border Station

Ò Reliable Transit Facilitation Connectivity at accessible Ports

Ò Reliable Transit Facilitation Connectivity at Multimodal Terminal

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ECO NON PHYSICAL TRANSIT TRANSPORT CONNECTIVITY REQUIREMENTS

Ò Common interoperability Mechanism for transport providers to access market

Ò Common Quality of service Mechanism, to be measured in terms of transit time

Ò Common reliability of schedules and flexibility in routing

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PROPOSED INTEGRATED MEASURES FOR PHYSICAL ECO TRANSPORT TRANSIT CONNECTIVITY

Ò Give priority to improving existing infrastructure networking and construction of missing link along ECO Rail/Road Corridors

Ò Modernize Integrated warehousing, distribution, distribution processing and information processing

Ò Modernize port logistics , Port Logistics Park and integrated port integrated system

Ò Modernize Integrated border stations systemÒ Develop market- oriented operation pattern.Ò Develop investment and financing transport transit

management system

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PROPOSED INTEGRATED MEASURES FOR NON PHYSICAL ECO TRANSPORT TRANSIT CONNECTIVITY A) Develop a multilateral multiple-entry transport license system B) Agreement on grant multiple entry visas C) Develop a Third-party insurance D) Unity on The permissible weights and dimensions of vehiclesE) Establishment of a regional network of legal experts on transport

facilitationF) Accession to international Road Transit facilitation conventionsG) To Strength ECO regional agreementsH) Applications of new technologies such as building modern border

crossing facilitiesI) Development of professional training for Transit stakeholders J) Take necessary measures to facilitate Border CrossingK) Take necessary measures to Modernize the Fleet of Commercial VehiclesL) Develop TIR EPD and RTS SystemM) Develop TIR Parking

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ECO – UN COOPERATION ON TRANSPORT TRANSIT CONNECTIVITY

Ò Active participation in WP30 and AC2 Ò Active participating in TIR ExBÒ Assistance to Afghanistan to expedite the process

of launching the TIR systemÒ Ac cession of Pakistan to the TIR ConventionÒ Accession of Pakistan, Afghanistan and

Turkmenistan to harmonization Convention Ò Active participation in Unified Rail Law initiatives

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ThanksEsmaeil Tekyeh Sadat

Director of Transport & CommunicationPhD (Organization Development)

Web: www.ECOsecretariat.orgEmail: Director.TC@ECOsecretariat.org

1 Golbou Alley, Kamranieh, Tehran, IR.IranTelefax:(+9821) 2613 1409Tel: (+9821) 2283 1733-4Fax: (+9821) 2283 1732