CARECCPMM Corridor Performance Measurement and Monitoring

Asia Pacific Trade Facilitation Forum

Trade Facilitation Implementation and Performance Monitoring Workshop

22 October 2015 | Wuhan, Hubei, PRC

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2014 Annual Report

Transport Corridors & CPMM

What is CPMM?

● Detailed measurement and monitoring of corridor efficiency

● Identify bottlenecks, Improve predictability

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2014 Annual Report

Institutional Arrangements: CPMM Partners

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2014 Annual Report

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Time/Cost-Distance (TCD) Methodology

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WUQIA IRKESHTAN KARAMYK DUSHANBE

DUSHANBE BATKEN OSH Wuqia Waiting in queue, 8h Customs clearance 4h, $194 Health inspection 3h, $175

Yierkeshitan-Irkeshtan (PRC-KGZ) border PRC side Waiting in queue , 3h KGZ side Waiting in queue, 3h Customs clearance, 3h, $1000 Health inspection ,1h

Karamyk (KGZ-TAJ) border KGZ side Waiting in queue , 4h Customs clearance, 1h TAJ side Customs clearance, 3h, $200

Dushanbe Waiting in queue, 8h

Osh Waiting in queue , 25h Customs clearance, 2.5h, $30

Isfara-Batken (KGZ-TAJ) border KGZ Side Waiting in queue , 1h Customs clearance, 2h, $10 TAJ Side Waiting in queue , 7h Customs clearance, 4.5h, $200

Dushanbe Customs clearance 2h

DISTANCE (km)

Sample TCD: Kashi (PRC) – Dushanbe (TAJ)

Via Karamyk Via Batken-Isfara

877 km 1,198 km

75 hr 111 hr

$ 7,333 $ 9,212

2014 Annual Report

Trade Facilitation Indicators (TFIs)

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2012 2013 2014

TFI1 Time to Clear a BCP in hours

Avg 10.9 10.0 14.1 Median 4.2 5.3 5.8

TFI2 Cost Incurred at BCP in US$

157 235 172 76 120 125

TFI3 Cost Incurred to Travel a Corridor

Section in US$, per 500km per 20 ton

941 1,467 1,360 598 1,018 937

TFI4 Speed to Travel on CAREC

Corridors (SWD) in kph

23.0 20.0 20.8 25.0 18.2 20.6

Speed without Delay (SWOD) in kph

38.1 36.3 40.2 35.5 34.2 41.4

2014 Annual Report

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TFI1: Time to Clear Borders Pakistan Data Scenario

13.1 13.2 14.1

10.9 10.0 11.3

2012 2013 2014

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Overall (Road and Rail)

● Among indicators, only TFI1 (time to clear a BCP) for road was severely affected by the inclusion of Pakistan data in to the CPMM sample (particularly BCPs along Corridors 5 and 6).

● This is largely due to long border crossing from Pakistan to Afghanistan at Torkham-Peshawar and Chaman-Spin Buldak

2.7

6.1 4.4

7.9

28.9

9.6

6.9 6.6

1 2 3 4 5 6

11.5 9.8 9.9

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5.6 5.9

2012 2013 2014

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Road Indicators Road Corridors, 2014

Without Pakistan

With Pakistan*

*PIFFA submissions since 2012 enables CPMM to estimate Pakistan data prior to its formal inclusion into CAREC corridors in 2014

2014 Annual Report

TFI Trends 2010-2014

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163 157

235

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2010 2011 2012 2013 2014

8.7 8.9

10.9 10.0

14.1

2010 2011 2012 2013 2014

35 38 38

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2010 2011 2012 2013 2014

674

914 941

1,467

1,360

2010 2011 2012 2013 2014

TFI1

Time to Clear a BCP

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$, p

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kph

TFI2

Cost Incurred at BCP

TFI3

Cost Incurred to Travel

a Corridor Section

TFI4

Speed to Travel on

CAREC Corridors

(SWD)

2014 Annual Report

Corridor Comparison

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1,360 1,180

513

2,348

1,269

2,050

769

● 1 2 3 4 5 6

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Time (hours)

Time (TFI1) and Cost (TFI2) spent at border crossing

TFI3 Cost Incurred to travel a corridor section, per 500km, in $

40 45

49 48

32 36

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Speed Indicators (TFI4) in kph

● Compared to other corridors, Corridor 3 averaged the least cost and least delay to cross a border.

● However, data suggest that it is substantially cheaper to travel along Corridor 2.

● In terms of speed, Corridors 1, 2, 3 and 6 SWOD estimates are above average. However, Corridor 3 reveal efficient border crossing with a narrow SWOD-SWD gap percentage.

2014 Annual Report

Variation in Sample

● The Coefficient of Variation (CV) measures uncertainty, reliability, and predictability.

● The quadrants provide the relative efficiency of corridors in terms of SWD.

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SWD

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Speed w/ Delay (kph)

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Q1

Q2

Q3

2014 Annual Report

Spin Buldak AFG 5,6 60.0

Torkham AFG 5,6 36.9

Peshawar PAK 5,6 25.2

Khorgos PRC 1 13.5

Sherkhan Bandar AFG 2,5,6 10.6

Zamyn Uud MON 4 8.8

Tazhen KAZ 2,6 7.8

Konysbayeva KAZ 3,6 7.5

Farap TKM 2,3 7.3

Dustlik UZB 2 7.2

Khorgos KAZ 1 6.8

Fotehobod TAJ 2,3,6 6.6

Chaldovar KGZ 1,3 6.5

● CPMM also highlights BCPs with lengthy delays (in hours) during border clearance

procedures

CAREC BCPs

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OUTBOUND TRAFFIC

Chaman PAK 5,6 36.0

Peshawar PAK 5,6 33.9

Khorgos PRC 1 19.3

Erenhot PRC 4 15.3

Tazhen KAZ 2,6 7.3

Dautota UZB 2,6 6.9

Yallama UZB 3,6 6.4

Alat UZB 2,3 6.2

Sarahs TKM 3 6.1

Dustlik UZB 2 6.0

Sarasiya UZB 3 5.7

Farap TKM 2,3 5.5

Merke KAZ 1,3 5.3

INBOUND TRAFFIC

2014 Annual Report

0.5

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Border Security / Control

Customs Clearance

Health / Quarantine

Phytosanitary

Veterinary Inspection

Visa/Immigration

GAI/Traffic Inspection

Police Checkpoint / Stop

Transport Inspection

Weight/Standard Inspection

Vehicle Registration

Emergency Repair

Escort / Convoy

Loading / Unloading

Road Toll

Waiting/ Queue

Delays at the border Average duration of delays at BCPs 2014, Road transport, in hours

Waiting in queues and loading/unloading are very time-consuming, and are frequently experienced during shipments, specifically in these BCPs, when entering neighboring countries

● Peshawar (PAK), 12 hrs ● Chaman (PAK), 12 hrs ● Khorgos (PRC), 11 hrs

Among activities with high duration, customs clearance stands out. In 2014, the average delay for customs clearance rose to 7.7 due to lengthy procedures at Chaman and Peshawar.

2014 Annual Report

Rail Transport Efficiency

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19 25

10 9 7 10

1 2 3 4 5

SWOD

SWD

Route 1: Chongqing-Duisburg Express Train Route 2: Chongqing-Almaty Route 3: Urumqi-Almaty Route 4: Chongqing-Ulaan Baatar Route 5: Tianjin-Ulaan Baatar

● Activities time is very high, constituting about 80%, in conventional trains moving along CAREC Corridor 1 and 4, hence the huge gap in the SWOD and SWD estimates.

● Despite the slow movement during transit, the express train service from Chongqing-Duisburg (Route 1) crosses borders faster and registers faster SWDs.

Long delays at the border are often due to:

● Unavailability of wagons

● Waiting time for Reloading

● Restriction on Entry

● Other common reasons such as ‘Transload at Gauge Change Point’, and ‘Waiting for Priority Trains to Pass’ are important, but there is limited intervention possible.

2014 Annual Report

CAREC BCP Improvements

KAZ: Akzhol-Chu BCP and Almaty-Bishkek road

MON: Zamyn-Uud BCP

KGZ: Bishkek-Torugart road improvement

TAJ: Kulma BCP, border with the PRC and Kyzyl-Art BCP,

border with KGZ (with US Government funding); Khodjent,

Spitamen, Isfara, Gafurov & Murgab; border with KGZ–

Karamyk; border with UZB–Fatehabad, Patar, Zafarabad,

Kushtigirmon/Platina & Aivaj; border with AFG–Kokul,

Ishkoshim, & Ruzvaj

KGZ: Karamyk BCP

TAJ: Guliston BCP, Sarazm BCP and road

rehabilitation between Ayni–Panjakent and the

border with Uzbekistan (with OFID funding)

AFG: Djomarchi Bolo BCP, border with TAJ & Kal’ai Zol BCP

KGZ: border outposts located in Ferghana Valley, Batken,

Leylek, Madaniyat, Kaitpas, Kadamjay, Kyzyl-Bel,

Kairagach and Kyzyl-Kiya

TAJ: Fortekabot BCP & Patar BCP

TAJ-AFG border: Ruzvai, Tem and Ishkashim

ADB-Funded Projects (completed)

EU BOMCA Project

ADB-Funded Projects (ongoing)

2014 Annual Report

CAREC BCP Improvements

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2014 Annual Report

Examining the Competitive Environment

●By route – some options not accessible to all

●By mode – comparative advantages don’t always apply

●By country – some countries discourage transit traffic

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2014 Annual Report

Looking Ahead

Fine-tuning CPMM ●Expanding coverage of railway movements ●Examining how best to measure and monitor

performance of trade logistics services

Reducing Delays at BCPs ●Inviting proposals for new RIBS projects ●Replicating best practice (JCC, express rail

experience) Improving Accessibility

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