Conference on the prospects for the development of trans-Asian and Eurasian transit transportation through till the year 2015 (Dushanbe, – 23-24 October, 2007)

«ROLE OF THE IGC TRACECA IN THE DEVELOPMENT OF INTERNATIONAL TRANSIT»

Secretary General of the PS IGC TRACECA Rustan Jenalinov1

In May 1993 during the Conference the initiated a programme on the development of Europe – the – Asia (TRACECA) transport corridor

On 8 September, 1998 at the Summit in the TRACECA member-states signed: BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT FOR DEVELOPMENT OF THE EUROPE-THE CAUCASUS- ASIA CORRIDOR (MLA)

2 ORANIZATIONAL STRUCTURE OF THE IGC TRACECA

EUROPEAN INTERGOVERNMENTAL TRACECA NATIONAL COMMISSION: COMMISSION TRACECA COMMISSION TRACECA TRACECA PROGRAMME CHAIRMAN BULGARIA PERMANENT SECRETARIAT (PS) ROMANIA TAJIKISTAN SECRETARY GENERAL OF THE PS IGC TRACECA

ADMINISTRATIVE PS TEAM OF EXPERTS PERSONNEL ПОСТОЯННЫЕ ПРЕДСТАВИТЕЛЬСТВА ПС МПК ТРАСЕКА AZERBAIJAN ARMENIA BULGARIA GEORGIA KAZAKHSTAN KYRGYZSTAN MOLDOVA ROMANIA TAJIKISTAN TURKEY UKRAINE UZBEKISTAN 3

MLA TRACECA was signed by 12 countries: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan is the participant to the TRACECA Programme Afghanistan, Pakistan and are executing joining procedures Egypt expressed an intention to join the Programme as an observer THE EUROPEAN COMMISION FINANCES TECHNICAL ASSISTANCE AND INVESTMENT PROJECTS

EU implemented THE PROJECTS ARE 60 projects to the PROJECTS ARE AIMED AT: amount of IDENTIFIED: • Harmonizing legislation; more than • In close cooperation with 121 million euro • Simplification of border EC and the MLA Parties; crossing procedures; • approved at the Conferences of IGC • Improving tariff policy; TRACECA; • Institutional PROJECTS PLAY AN strengthening; IMPORTANT ROLE IN: • Capacity building; • International trade volumes • Developing transport 40% falls at increase; infrastructure investment • Freight flows growth; projects • Creation of attractive investment environment in the region

DIRECT INVESTMENT PROJECTS WERE FINANCED BY THE EUROPEAN UNION

GENERAL: EU implemented RAIL FERRY: 1. Bukhara Cotton Export 1.Design and construction of Distribution Center - 2 mln Euro; 14 investment Rail Ferry Facilities in the port of Poti- 2. Container Services between the 3,4 mln Euro; Caspian Ports of Baku and projects 2. Improvement of existing Rail Ferry Turkmenbashi – 2,5 mln Euro; of about Facilities in port of Ilychevsk -6,4 mln 3. Intermodal Terminal Equipment 50 million euro Euro; (Karmir Belur, Chimkent, Aktau, 3. Rehabilitation of the Rail Ferry Bishkek) – 2,5 mln Euro; Terminal in port Aktau-2 mln Euro; RAIL: MARITIME: 1. Rehabilitation of the Caucasian 1.Establishment of Ferry Cargo Railways – 5 mln Euro; Movement Computer System and 2. Supply of an Optical Cable Supply and Installation of Computers System for Communication and and communication Equipment for the Signaling to the Railways of ports of Ilychevsk and Poti-1,5 mln Armenia, Azerbaijan and Georgia- Euro; 15 mln Euro; 2. Cargo Container Handling 3. Rail Tank Wagon Cleaning Boilers Equipment for the ports of Baku, in Baku-0,475 mln Euro; Turkmenbashi, Poti, Ilychevsk-5,825 4. Supply of Tank wagons to mln Euro; Azerbaijan Railways-1,6 mln Euro; 3. Supply of Navigation Equipment to the ports of Baku,Aktau,Turkmenbashi- 1,6 mln Euro;

ROAD: 1. Rehabilitation of the Red Bridge and Construction of New TRACECA Bridge- 2,5 mln Euro THE ON-GOING 13 TAСIS PROJECTS: 1. Analysis and Forecasting of Traffic Flows for the TRACECA Countries and Interregional Transport Dialogue between the EU and NIS Countries 2. Maritime Training 3. Improvement of Maritime Links between the TRACECA Countries and TENs 4. Supervision over Reconstruction of the Gazi-Magomed Highway 5. Training of Operational Air Transport Control Staff of South Ring States 6. Regulation on the Transport of Dangerous Goods along the TRACECA Corridor (under completion) 7. Freight Forwarding Training Courses (under completion) FOR CENTRAL ASIA 8. Development of Equipment Certification Centers for Transportation of Perishable Goods in Central Asia in the Frame of ATP Convention 9. Reconstruction of the Galaba-Termez Railway Line 10. Navigational Channel for the Port of Turkmenbashi 11. Development of Coordinated National Transport Strategies in the Central Asian Countries 12. Development, Master Planning and Feasibility Study for the Port of Aktau 13. Pre-feasibility study for the road Sari Tash-Tajik Border 7

THERE ARE PLANNED FOR IMPLEMENTATION 8 PROJECTS MORE 1. Logistic Centres Network for All TRACECA Countries: Central Asia, Caucasus and European TRACECA 2. Strengthening of Transport Training Capacities in NIS Countries 3. Rehabilitation of the Railway Line between Tbilisi and Yerevan 4. Moldova Feasibility Study M-3 Road 5. Ukraine Port Strategy Development and Feasibility Studies 6. Development of Common Security Management System and Cooperation in the Area of Maritime Safety and Ship Pollution Prevention for the Black Sea and the Caspian Sea 7. Training of Civil Aviation Administration and the Personnel Involved in the Air Transportation 8. Motorways of the Sea (MoS) for the Black Sea and the Caspian Sea

8 GOODS TURNOVER IN THE TRACECA COUNTRIES

TRACECA/EС 2004 – 161,6 billion$ 2005 – 199,5 billion $ EC/PRC 2004 – 175,6 billion $ 2005 – 209,79 billion$ TRACECA Countries 2005 – 27,05 billion $

TRACECA/PRC 2004 – 13,96 billion$ 2005 – 19,64 billion $

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Implementation of the projects continues

In 2006 at the completion of TACIS, the EU will proceed with its support will be within the frame of:

EUROPEAN NEIGHBOURHOOD POLICY INITIATIVE (ENPI) PROGRAMME FOR DEVELOPMENT AND COOPERATION

TWO PROJECTS TO THE AMOUNT OF 14 MILLION EURO ARE PLANNED FOR IMPLEMENTATION : Transport Dialogue and Networks Interoperability between the EU and its Neighbouring Countries, and the Central Asian Countries Transport Safety and Security

10 PROJECTS REALIZATION IMPACTED TRAFFIC INCREASE

Setting into operation of two Poti–Ilychevsk–Varna – more than 4 M. t. railway ferry lines on the Baku–Aktau–Baku – more than 2 M. t. (since 2001 up to date) Black and Caspian Seas

Railway infrastructure Poti/Batumi–Baku – 14 -15 M. t/year development (in 1995 - 400-500 thousand tons)

Road network projects in Azerbaijan – more than by 25%, For instance: construction of the In Gergia – more than by 30% bridge on the border between (in 2005 in comparison with 2000) Georgia and Azerbaijan and the bridges in Azerbaijan

Rail Ferry/Maritime Rail/Road 11

STRATEGY PILLARS OF THE IGC TRACECA :

SOUND, EFFECTIVE AND INTEGRATED MULTI-MODAL TRANSPORT SYSTEM ON THE LEVELS EU-TRACECA AND TRACECA-TRACECA Transport Transport Secure Funding Institutional Component Institutional Safe, Secure and Sustainable Safe, Secure and Sound Multi-Modal Chains Exploiting Full Potential of Air Air Potential of Full Exploiting Integration of Infrastructure of Infrastructure Integration Networks

STRATEGY OF THE INTERGOVERNMENTAL COMMISSION TRACECA FOR DEVELOPMENT OF INTERNATIONAL TRANSPORT CORRIDOR “EUROPE–THE CAUCASUS-ASIA" FOR THE PERIOD UP TO 2015 THE MAIN PRIORITIES IN ACCORDANCE WITH THE STRATEGY OF THE IGC TRACECA FOR THE PERIOD UP TO 2015 ARE AS FOLLOWS:

to ensure safety and security of transport through harmonization of legislation, institutional development and capacity building

improvement of transport infrastructure through identification of key bankable projects and their implementation by attracting investment from various sources and optimization of their use

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THE FOLLOWING VITAL ISSUES WILL BE CONSIDERED AT THE IGC TRACECA ANNUAL MEETING (22-23 NOVEMBER, 2007, ASTANA, KAZAKHSTAN):

• Action Plan for 2008-2009 for implementation of the TRACECA Strategy for the period up to 2015 • Amendments to clause 2, article 6 of the MLA (as regards introduction of preferential conditions and tariffs along the TRACECA corridor) • Amendments to the Technical Annex to the MLA on Customs and Documentation Procedures (simplification and harmonization of customs procedures) • Establishment of legal basis for multimodal (combined) transportation and freight forwarding activity • Expediency of creation of the Investment Fund and Business Advisory Council of the IGC TRACECA (development of Public-Private Partnership) ANALYSIS OF GOODS TURNOVER IN CENTRAL ASIAN COUNTRIES

Goods turnover of CA countries with Russia – 10,5 milliard. EURO Goods turnover among CA countries – 1,2 milliard EURO Goods turnover of CA countries with the EC Goods turnover of CA countries – 15,0 countries with China – 7,1 milliard EURO milliard EURO

Goods turnover of CA countries with India, Iran and Pakistan – 1,75 milliard EURO

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2005 - http://ec.europa.eu/trade/issues/bilateral/regions/index_en.htm

MAIN FACTORS TO ENSURE FURTHER DYNAMIC DEVELOPMENT OF THE TRACECA CORRIDOR

Geo-strategic situation of the TRACECA countries, especially the Central Asian countries neighboured by China; Active development of the routes passing through the TRACECA countries, including construction of the lacking and new “straightening” transport links in the corridor system in the near future; Further development of container traffic along the TRACECA corridor extended towards China; Increase of container flow on the existing ferry lines Varna (Bulgaria)– Ilychevsk (Ukraine), Varna–Poti / Batumi (Georgia), Ilychevsk–Poti / Batumi and Ilychevsk – Derindje (Turkey), as well as on the perspective line Constantsa (Romania)– Samsun (Turkey)– Batumi / Poti; Growth of volumes of transcontinental freight traffic from China to the Caspian ports; Increase of crude oil transportation due to commissioning of the oil pipeline Baku-Tbilisi–Djeikhan and joining it by Kazakhstan; Construction of a grain terminal in the port of Poti, which will allow to connect other grain terminals in the port of Aktau and the recently established one in the port of Baku into a common transport chain; Taking measures to ensure all aspects of competitiveness of the TRACECA corridor by the MLA Parties with active support of EU. 16 TRACECA CORRIDOR – “REVIVED SILK ROAD” was officially acknowledged by the leading international organizations as the natural transit bridge connecting Europe with Asia

The TRACECA experience shows that the initiatives in the field of regional integration facilitates more active participation of landlocked and transit developing countries in world economy

Thank you for attention!

To obtain more detailed information on all aspects of the TRACECA activities, please, contact us via [email protected] or visit our site

www.traceca-org.org