Diapositiva 1

ECO: Rail-based intermodal transport corridors

TC Department, Economic Cooperation Organzation

TC ESCAP Seminar on Railway Network Connectivity & Infrastructure Challenges

Contents: ❖Connectivity ❖Institutional Mechanism ❖Challenges: Infrastructure/Connectivity ❖Regional initiatives

TC ECO-ESCAP Railway Connectivity:

KTI

✓MoU ✓MoA ✓KTI Project

TC Institutional mechanism: ECO- ESCAP KTI Project: CMM

TTFA KTI CMM TAR

TC Istanbul-Almaty & Almaty-Bandar Abbas

Feasibility study 2016

RPC, December Istanbul- 2017 Almaty Istanbul Almaty

Study on commercialization 2018

14th COM, April Bandar 2018 Abbas

Turkmenbashi Almaty- Declaration Bandar (para4) 2018 Abbas TC Infrastructure challenges

✓Gauge ✓Rolling stock

TC Harmonization of international multimodal railway standards

TC Adherence to int. transport standards on intermodal railway system

ECO TIR Kyoto COTIF/CIM SMGS CMR ADR Convention Afghanistan * + Azerbaijan + + + + + + Iran + + + + + Kazakhstan + + + + + Kyrgyzstan + + + + Pakistan + + + Tajikistan + + + + +

Turkey + + + + Turkmenistan + + + Uzbekistan + + +

TC Harmonization through capacity building: Transit Transport Framework Agreement of ECO (TTFA)

UNECE, ESCAP, IDB, IRU, ICT

Capacity building:

▪TTFA ▪TIR ▪CMR ▪SMGS ▪SMPS ▪ADR ▪AETR ▪ATP

TC Rehabilitation, upgradation, construction of missing links (paras 4-5, Turkmenbashi Declaration) ITI

TCDD PR PPP

CPEC

•The freight train would carry textile, cotton, medical tools, furniture, fruits, machinery and parts, chemical products, paper, car spares and IR agricultural tools (acc. to 9TH HLWG Meeting). First passenger train scheduled for September 2018. •Trade between the three countries amounted to $1 billion in 2017.

TC Regional initiative: Intermodal Connectivity: LLCs -Sea Port Infrastructure

1 2

8 7

9 6

Sea Port Logistics Rail Center

Road Dry Port Logistics Center

Paras 9-11 of Turkmenbashi Declaration envisages the development of effective inter- linkages amongst ECO’s logistics centers to liaise the Dry Ports with the Sea Ports

TC Potential of ECO’s Sea Ports

Table 1. Turkey's share in world maritime profile, 2016 % of world total DWT/TEU/GT/km Coastline(km) 0.5 National flagged fleet (DWT) 0.47 8658 Fleet ownership (DWT) 1.56 27951 Container port throughput 1.25 8457612 (TEU) Ship building GT 0.16 105645 Ship scrapping (GT) 3.45 998714

Source: UNSTAD, IMO, Turkstat Table 2. Turkey’s carrying capacity by type of ship, 2016 (Thousands DWT) 2005 2010 2015 2016 Total fleet 7 048.0 7 878.0 8 497.8 8 568.2 Oil tankers 959 1 693.6 1 291.8 1 308.4 Bulk carriers 4 087.0 3 357.7 4 235.3 4 043.9 General cargo 1 565.0 2 011.5 1 598.8 1 618.2 Container ships 290 572.9 749.1 982.5 Other types of 147 242.3 622.9 615.2 ships

*Increase of Turkey’s fleet was by 8% in 2016. Source: UNSTAD, IMO, Turkstat

TC Continued

Table 3. Iran's carrying capacity by type of ship, 2016 (Thousands DWT) 2005 2010 2015 2016 Total fleet 9 114.0 1 333.3 4 548.2 4 877.3 Oil tankers 6 134.0 120.3 403.1 812.4 Bulk carriers 1 703.0 453.4 2 174.0 2 087.1 General cargo 731 297.7 700.3 704.1 Container ships 420 252.4 1 128.0 1 128.0 Other types of ships 126 209.5 142.8 145.8

*Iran’s fleet growth increased by 7.2% in 2016. Source: UNSTAD, IMO

Table 4. Iran's share in world maritime profile, 2016 % DWT/TEU/GT/km Coastline(km) 0.36 National flagged fleet (DWT) 0.27 4877 Fleet ownership (DWT) 1.00 17 838 Container port throughput (TEU) 0.35 2731000 Ship building GT … Ship scrapping (GT) …

Source: UNSTAD, IMO

TC Continued

Table 5. Pakistan’s carrying capacity by type of ship, 2005-2016 (Thousands DWT) 2005 2010 2015 2016 Total fleet 472 481.1 709.7 709.7 Oil tankers 274 281.7 427.7 427.7 Bulk carriers .. 65.7 255.2 255.2 General cargo 184 107.5 .. .. Container ships ...... Other types of 14 26.3 26.8 26.8 ships

*Pakistan’s fleet growth increased by 0.0% in 2016 Source: UNCTAD, IMO, UN Data

TC Potential of ECO’s Dry Ports

Main dry ports in ECO

Afghanistan Pakistan 1 Torkham 1 Lahore Dry Port

2 Shir-Khan 2 Lahore NLC Dry Port 3 Keyrabad 3 Multan Dry Port

Azerbaijan 4 Rawalpindi Dry Port 1 Alyat 5 Sialkot Dry Port Iran 6 Larkana Dry Port 1 3 1 Motakhari Dry Port 7 Quetta Dry Port 2

2 Ahlan SEZ 8 Quetta NLC Dry Port 3 Zahedan LC 9 Hyderabad Dry Port 4 Shiraz LC 10 Gilgit Dry Port 5 Markazi LC 11 Sost Dry Port 4 6 Isfahan LC 12 Azakhel Dry Port 5 6 7 Kerman LC 13 Havelian Dry Port

8 Khorasan-e-Razavi 14 Peshawar Dry Port

9 Aprin Dry Port 15 Faisalabad Dry Port Kazakhstan 16 Jamrud Dry Port 1 Khorgos 17 Karachi Dry Port 7 9 2 Pavlodar 18 Karachi NLC Dry Port 8 3 Semey 19 Muzaffarabad Dry Port

4 Oskemen Tajikistan Kyrgyzstan 1. Osh 1 Nijnii Panj Uzbekistan 2 Tursunzade 1 Angren 3 Dushanbe 2 Navoi 10 11 12 3 Termez

* Turkey's dry ports have not be reflected as they are integrated within sea ports infrastructure. TC ECO platform for regional initiatives

The 2011-2018 decisions on regional transport

TC Sustainable transport performance

Transport services share in ECO’s exports (%) 2000-2016 Transport modes (% by km) in ECO countries, 2017

45.0 100% 0.5 0.5 12.2 1.7 40.0 90% 1.0 13.2 2.3 36.7 20.0 35.0 80% 70% 36.3 11.9 5.3 30.0 60% 1.1 19.0 36.3 3.0 17.8 25.0 50% 27.4 3.0 40% 20.0 32.2 2.3 30% 14.1 3.6 8.0 15.0 20% 26.9 15.0 5.4 10.0 10% 21.9 0.7 0.8 17.5 0% 0.12.1 5.0 0.0 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

ECO 31. 30. 37. 33. 31. 31. 33. 32. 29. 32. 33. 36. 36. 39. 40. 38. 39. Rail Roads Inland Pipelines 20.00 10.00 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -10.00 -20.00 Share of transport (%) in GDP (c.p.) 2002-2016 Change (%)

TC Continued

Growth in ECO countries’ GDPs (US$ bn at c.p. and % change) 2017 Goods transported by rail in ECO, mn ton-km, 2010-2016

Goods transported by rail (million ton-km) % change 2500.0 20.0 315062 309559 350000.0 1922.3 10.0 294708 300905 294683 2000.0 2.4 269507 269599.3 300000.0 1875.3 0.0 250000.0 1500.0 -10.0 200000.0 1000.0 -20.0 851.1 150000.0 863.7 -30.0 439.5 100000.0 500.0 418.6 305.0 -40.0 138.3159.4 278.7 67.1 50000.0 20.8 40.7 42.4 48.7 1.4 2.1 4.5 -1.8 -5.0 -9.3 0.0 0.0 19.5 37.8 7.6 37.9 -50.0 6.8 7.07.1 0.0 AFG AZE IRN KAZ KGZ PAK TAJ TKM UZB TUR Total -50000.0 2016 2017 % change 2010 2011 2012 2013 2014 2015 2016

Passengers transported by rail in ECO (mn passenger-km), % change, 2010-2016 Intra-ECO Trade 69000 0.5 All values US $ Billion 68000 0 Year Imports Exports Total Trade Trade % 67000 Balance Change 66000 -0.5 in Trade 65000 -1 64000 2013 35.67 39.31 74.98 3.64 63000 -1.5 2014 35.05 38.71 73.76 3.66 -1.63 62000 -2 2015 27.99 29.7 57.69 1.71 -21.79 61000 -2.5 60000 2016 25.34 28.86 54.2 3.52 -6.05 59000 -3 2017 26.68 26.57 53.25 -0.11 -1.75 2010 2011 2012 2013 2014 2015 2016

Passengers transported by rail (mn passenger-km) % change

TC Rail freight transportation (2011-2017)

Volumes transported by regularized freight container trains from/to PRC incl. through ECO (2011-2017)

Regular trains by container 2011 2012 2013 2014 2015 2016 2017 type/container load/traffic volumes from to from to from to from to from to from to from to

Freight container 17.00 0.00 42.00 0.00 80.00 0.00 280.00 28.00 550.00 265.00 1130.00 572.00 2399.00 100.00 trains (units)

Freight container 702.00 0.00 1837.00 0.00 3480.00 0.00 11902.00 1133.00 23566.00 10885.00 48700.00 4197.00 106000. 52965.0 00 0 traffic (FEU)

Train load (FEU, 41.00 44.00 0.00 44.00 0.00 43.00 40.00 43.00 41.00 43.00 28.00 44.00 42.00 ave)

TC Regional network potential

2010 Length of railway, road, inland waterways, pipelines (km) and airports (units)

350000 100

90 300000 80

250000 70

60 200000 50 150000 40

100000 30 20 50000 10

0 0 AFG AZE IRN KAZ KGZ PAK TAJ TUR TKM UZB Raillroads (km) 0 2,090 4,850 14,460 370 8,773 480 10,413 2,120 3,460 Roads (km) 21,000 36,700 140,200 18,900 30,300 177,410 29,900 320,611 23,000 78,400 Inland waterways (km) 1,200 904 0 0 0 0 1,200 0 0 Pipelines (km) 180 900 14,350 7,830 200 5,179 400 4,767 4,650 1,100 Airports (total) 7 5 80 31 4 19 2 91 6 16

TC 2010/2017 Increase/Decrease in railways, roads, inland waterways (km) and airports (units)

31.6%

0.0%

+11.9%

+18.6%

Railways Roads Inland waterways Airports

TC ECO Railway Network, 2017

By country share of transport (%) 2017

Afghanistan 12.8 17.1 Azerbaijan Iran 7.5 Kazakhstan 7.2 7.1 Kyrgyzstan 3.0 Pakistan Tajikistan 10.0 12.1 Turkey Turkmenistan 9.9 13.4 Uzbekistan

TC Completion of Assessment of FS progress reports of MS/Financing/Start of Rasht-Astara (IRI)-Astara (AZ) Execution of Projects under missing links. Launch TTFA Operationalization construction works in 2019

2019 2019 2019 2018

2019 2018 2018 2020

Early commercialization Implementation of TIR Operationalization Q1-2019 Regional Strategy and operationalization adopted in 2018. Start Q1-2019 of implementation since 2019

TC Our structured operations

Approval Procedure for a PPP contract

Identify a priority Initial Business project concept Case To prepare as PPP

Screen

Appraisal Structure PPP PPP

Progress toward investment decision

TC Targets on connectivity

Regular run of ECO Truck Caravan

Regularization of Almaty-Bandar Abbas

Regularization of Istanbul - Almaty Regularization of KTI

Revival of works on ITI

TC 2018 Connectivity & infrastructure milestones

Tabriz-Van passenger train resumed its regular runs on 18 May 2018 Urumchi– Aktau -Anzali container train launched on 26 June 2018

1st Rail stock repair center for Central Asia, Serial locomotives production in Kazakhstan Astana Opening of Turkmenbashi International Seaport on 2 May 2018 TC Towards ECO Vision-2025

Growth in global transport demand 3 2015-2030 2015-2050 in 2015-2030: 2

▪Rail at the 3.3 rate% 1 ▪Road 4.1% 0 GDP Passenger Rail Road Air ▪Air 5.1% transport

Source: McKinsey TC Rail

2500

2000

1500

Railway In operation 1000 efficiency is a Under construction gateway to 500 0 PRC ECO Japan, Europe CIS sustainable Korea regional transport

955km of HSR is in operation in ECO 1,180km of HSR is currently under construction.

TC Road

700000

600000 ▪Global freight transport 500000 demand forecasts to grow 400000 2050 at 3.3% rate by 2030. 2030 300000 ▪Maritime freight to grow 2015 from 71% in 2015 to 75% 200000 of total by 2050. 100000 0 ▪Air freight at 5% rate per Rail Road Sea Air annum, faster than other modes.

TC Intermodal linkages by rail and maritime

International Almaty Convention on Caspian Sea. Plan of 12 August 2018 Action ▪Seven of the ECO ten Member States are LCCs. ▪Overall maritime demand in freight accounts to over 71% of transport. ▪ECO is revitalizing its maritime cooperation. ▪9th Meeting of Ministers of Transport of ECO Member States on 1&3 May 2018 in Turkmenbashi. Vienna ▪5th Summit of Caspian States adopted milestone decisions on 12 Program August 2018 in Aktau. ▪Summit of Founder States of IFAS approved an implementation plan on 24 August 2018 in Turkmenbashi.

UN Resolution International A/72/L.42. 14 Agreement on April 2018 Dry Ports

TC Thank you.

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