EBRD offers CA countries to develop seamless transport system within Middle Corridor 

The European Bank for Reconstruction and Development (EBRD) offers the Central Asian countries to develop a seamless transport system within the framework of the Trans-Caspian International Transport Route (Middle Corridor, TITR), Report informs.

“This would support the introduction of single and unified tariffs, as well as a single payment platform along the corridor. It could also facilitate the provision of regional traffic information and smooth border-crossing procedures,” the Bank said.

According to the EBRD, to increase the efficiency of the transport sector and reap the benefits of international and regional trade, Central Asian countries need to improve their transport infrastructure, logistical capabilities and human capital, remove non-tariff barriers, and introduce coordinated policies and strategies: “Endorsement of a plan to develop the CTCN by the Central Asian countries would enhance regional coordination, which could improve connectivity, lower transaction costs, enhance the safety, reliability and security of transportation, and improve environmental outcomes. A well-established coordination and cooperation mechanism requires the coordination of interfaces between national and international transport systems, as well as the integration of different modes of transport, such as rail, road and maritime. The range of operational approaches to establishing a regional coordination mechanism can start with less formal structures (namely, ad hoc arrangements based on short-term issues) and move on to more formal ones (that is, a regional legal entity with dedicated resources, authorities and representation of members). The more formalised the coordination mechanism, the more enforcement capacity it can have.”

“Currently, high logistics costs due to time delays and uncertainty are among the key reasons for the lack of regional integration. Inadequate soft and hard infrastructure components, and limited trade liberalisation, as well as inefficiencies at BCPs, dim the prospects for the development of regional value chains. If the CTCN is developed from a regional perspective, focusing on targeted measures to improve hard and soft connectivity components, it could support the development of regional value chains that are also better linked with Europe and better integrated into global supply-chain logistics,” the Bank said.

The analysts of the Bank say that Currently, a lack of harmonised practices increases transaction costs significantly for regional and international operators: “The growth of cross-border trade challenge the implementation of conventional border control mechanisms and necessitate the adoption of a risk-management approach, concentrating on high-risk goods, in coordination with trade partners. Development of the CTCN, including improvements to border-crossing practices, would add to the viability of the network for moving cargo between Europe and Asia. However, benefits can only materialise if Central Asian countries coordinate closely with each other to alleviate inefficiencies with respect to border-crossing practices. This would result in fewer disruptions at borders, lowering transportation costs and waiting times at border-crossing practices. A coordinated border management system, supported by national border control agencies, could bring many advantages, including the efficient delivery of services, as well as better harmonisation of practices and policies by different agencies. Wider sharing of data and information would allow for the introduction of better risk assessment and management practices, enabling efficient delivery of facilitation and intervention programmes.”