Eurasian Transport Network - The Times Of Central Asia

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New Report Analyses Eurasian Transport Network

On 27 June, the Eurasian Development Bank (EDB) released a report titled “The Eurasian Transport Network”. The report introduces a new conceptual approach to future developments within the Eurasian Transport Network and outlines key projects and initiatives aimed at improving transport connectivity in Eurasia. The Eurasian Transport Network is a system of interconnected latitudinal and longitudinal international transport corridors and routes, facilitating intra- and trans-continental connectivity for Eurasian countries. It builds upon over 50,000 km of international east-west and north-south transport corridors, linking Asia, Europe, and the Middle East. The Eurasian Transport Network consists of five key international transport corridors: the Northern, Central and Southern Eurasian Corridors, TRACECA, and the International North-South Transport Corridor (INSTC), along with branch lines and regional routes. According to EDB analysts, in 2023, international freight traffic along these five corridors of the Eurasian Transport Network totaled 260 million tons, including 3.6 million 20-foot containers (TEU). Compared to 2013, the volume of international container traffic has more than tripled. The most dynamic growth has been driven by foreign trade and transit container transit with China. Since 2013, the number of container trains to and from China via the Eurasian Economic Union countries and Central Asia has increased by a factor of 200. The EDB introduced the concept of a Eurasian Transport Network in 2021, and this report presents its detailed framework. Three years ago, the EDB released a report titled “The International North–South Transport Corridor: Promoting Eurasia’s Intra- and Transcontinental Connectivity”, which estimated that connecting international transport corridors would yield a 40% increase in freight traffic. In 2024, this projection was fully confirmed by the dynamic development of the INSTC and its linkage to TRACECA. The advancement of the Eurasian Transport Network is paving the way for the establishment of a transport hub in Central Asia. The development of multimodal transport and transit corridors is the only viable solution for Central Asian countries due to the significant distances between trade partners. Establishing a transport hub will facilitate an increase in international traffic, including transit. The EDB projects that freight traffic along the three main corridors running through Central Asia will increase by 1.5 times to 95 million tons by 2030. Container traffic is expected to grow even more rapidly, by almost two-thirds, reaching 1.7 million TEU. Evgeny Vinokurov, EDB Chief Economist, underlines that “at present, transportation costs for landlocked countries are 1.4 times higher than for coastal states. Even during the time of the Silk Road, trade routes in Central Asia were predominantly latitudinal, in the east-west direction. Building new north-south transportation links is a historic opportunity for Central Asia. This is an opportunity to become the continent’s transport hub, unlock new production niches and improve conditions for foreign trade, especially with West and South Asia.” The EDB concludes that given the limited investment opportunities facing most developing countries in Eurasia, a key area of cooperation to develop transport links in Eurasia is boosting the number of projects attractive to international development banks and private investors. This includes projects implemented...

business and economy Eurasian Transport Network International trade International transport International Cooperation Eurasian Development Bank (EDB)

EDB Annual Meeting and Business Forum to Focus on Eurasian Transport Network

The Eurasian Development Bank’s (EDB) Annual Meeting and Business Forum, to be held in Almaty, Kazakhstan on 27-28 June, is to focus on cross-border transport corridors in Eurasia. The EDB is a multilateral development bank serving Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. According to the EDB press service, this year’s forum session, “The Eurasian Transport Network: Potential, Challenges and Solutions” will analyse a report on the development of cross-border transport corridors crucial to the region’s economies. The report highlights the significant constraints in economic development posed by the remoteness of Central Asian countries from global markets and their landlocked status. According to EDB estimates, trade costs in some Central Asian nations are 40% higher than those of coastal states. Overcoming the lack of transport connectivity is key to unlocking the strong economic potential of all Central Asian countries. The concept of the transport network is based on the premise that linking East–West and North–South transport corridors generates synergies, creating new routes, logistics opportunities and better through tariffs. The EDB projects that freight traffic along the three main corridors crossing Central Asia (Central Eurasian Corridor, TRACECA and North–South) could potentially increase by almost two-thirds to 1.7 million containers (TEU) by 2030. Implementing this objective will require concerted efforts from all participating countries.

Eurasian Transport Network Transport Russia European Union Finance

Alternative Transport Routes in Kazakhstan: Potential and Current Opportunities

Kazakhstan's President Kassym-Jomart Tokayev has ordered alternative transportation and shipping routes to be drawn up and supply routes to be diversified. Amid ongoing geopolitical shifts, routes passing through Kazakhstan's territory are already seeing relatively high freight flows. Still, to develop them, further measures are needed to enhance international logistics cooperation and increase efficiency along the entire length of the transport corridors. The country's deputy minister for transport Maksat Kaliakparov kindly agreed to answer some questions from The Times of Central Asia. TCA: Not so long ago, Kazakhstan Temir Zholy (KTZ) announced the launch of a project to create a digital corridor as part of the Trans-Caspian International Transport Route (TITR) with the company Global DTC Pte Ltd. What countries are to be integrated into this project? Can a similar digital trade corridor be considered for the International North-South Transport Corridor (INSTC)? MK: As you know, on August 16, 2022, KZT and the Singaporean company PSA concluded a memorandum according to which one of the identified areas for cooperation is developing a digital trading corridor (DTC). Towards this, a multimodal DTC has been developed. Using this platform, three container trains were sent on the route from Xi'an (China) to Absheron (Azerbaijan) as a test run. Integration with the railway systems of Kazakhstan and Azerbaijan has been carried out. Currently, the process of integration with Georgian systems is underway. Overall, the DTC platform allows for: entering into online contracts with freight forwarding companies; seeing and receiving transportation tariffs from logistics companies; tracking the location of containers along all routes; getting customs status based on transit declarations when crossing borders along the route, etc. This year, it is also planning to launch the commercial operation of a container tracking service in Kazakhstan, Azerbaijan, and Georgia, and it is also planning to be integrated with a Chinese logistics operator. In addition, the Tez Customs platform has been developed. It is part of DTC, created to automate the customs clearance process of railway transit freight on the route China-Kazakhstan-Central Asia/Europe. Tez Customs allows for: automating the process of customs transit clearance at the Kazakhstan-China border; reducing the time of customs procedures (from 4-8 hours to 30 minutes); tracking the status of transit declarations and freight until final departure from the territory of Kazakhstan. Meanwhile, a similar DTC for the INSTC is being considered within the cooperation framework with the UAE company Abu Dhabi Ports. TCA: As part of the development of the INSTC, the railway administrations of Kazakhstan, Russia, and Turkmenistan are planning to create a joint venture (JV). Tell us about the plans for how it is to be formed. How will shares in the JV be allocated between the countries? MK: Yes, indeed, for the further development of the eastern branch of the INSTC, the participating countries are working to create an equal-term JV between KTZ Express, Russian Railways Logistics, and the Transport and Logistics Center of Turkmenistan. Today, the railway administrations of Russia, Kazakhstan, Turkmenistan, and Iran are creating a favorable tariff...

Eurasian Transport Network International trade International transport Eurasian Development Bank (EDB)

EDB Concept for Eurasian Transport Network

On 6 June, the Eurasian Development Bank (EDB) announced that it is preparing a concept for the Eurasian Transport Network aimed at enhancing connectivity across Eurasia and stimulating economic development, trade and mobility in the region. The EDB is a multilateral development bank with investments in the Eurasian states of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The Eurasian Transport Network is a system of international transport corridors and routes spanning over 50,000 kilometres. In 2023, five key corridors — the Northern, Central and Southern Eurasian Corridors, TRACECA (including the Trans-Caspian International Transport Route) and the International North-South Transport Corridor — carried 260 million tons of freight and 3.6 million international containers. According to the EDB, container traffic has tripled over the past decade. Having mooted the notion of the Eurasian Transport Network back in 2021, the EDB is now poised to present a detailed concept of its development. Analysis has shown that the synergy of corridors is ensured not through their competition, but through the connection and complementarity nature of its routes. The concept includes ten key elements, including addressing Central Asia’s challenges by making the region a transport crossroads, focusing on intra-regional connectivity, and providing a strong impetus to realize the region’s vast agro-industrial potential through new logistics and specialized rolling stock. The EDB’s new report, titled The Eurasian Transport Network, also examines promising transport infrastructure development projects and initiatives, including cooperation between countries and multilateral development banks towards their implementation. The report will be launched at the EDB Business Forum, scheduled for 27–28 June 2024 in Almaty, Kazakhstan.