2014 CFCFA Annual Meeting & Business Forum

To Develop terminals into International Land Ports, & Establish Land Bridge Operation Mechanism

Situation, Problems, Solutions

Xi’an International University Development and Research Center of Land Port Economics & Logistics XI Ping 2014.9.3 I. Three Corridors(North, Central, South) of the Eurasian Continental Bridge

Euro-Asia Railway Corridors

The central corridor of New is the major passage connecting the economy and trade of eastern Asia, , and . However, this passage is partially obstructed.

Various Layers of Economic Zone

Top layer centered around Eurasia Moscow Yekateringburg Ulan-Ude Economic Cooperation Organization Eurasia Urumqi Xi’an Top Layer Economic Teheran Capitals New Delhi Shanghai Economic zones centered around Moscow Yekateringburg Ulan-Ude cities along the Land Bridge Vladivostok

Rotterdam Urumqi Lanzhou Xi’an Lianyungang Teheran Middle Layer New Delhi Kunming Shanghai International logistics based on Moscow Yekateringburg Ulan-Ude “International Land Ports” Vladivostok Railway is the key Rotterdam Urumqi Lanzhou Xi’an Lianyungang Teheran Base Layer New Delhi Kunming Shanghai Develop Eurasia Land Trade International Practice II. Identify Problems

• Since the Eurasian Land Bridge is an international transport line, we can identify problems by comparing it with international ocean shipping routes; • International land transport, since the early stage of its development, has become a “point-to-point bilateral transport mechanism between two border ports of two countries”; • International ocean and air transport adopt “multilateral transport network that covers the ports of all countries in the world”, which is more reasonable, and can better facilitate the development of international trade. This is the orientation that international land transport mechanism should work towards. International ocean transport line mainly consists of 3 major hardware and 1 International Ports comprehensive software: 3 major hardware: international ports, cargo ships and international Transport mechanism shipping lines; the Trade comprehensive software: mechanism transport mechanism and Cargo Ships International Shipping trade mechanism that Lines coordinate to enable efficient operation of the hardware. International Maritime Shipping Lines vs. International Land Bridge Transportation Routes Four Pillars Maritime Land Bridge Land Bridge Land Bridge Shipping Issues Development Routs Int’l shipping Railway, road Average Improve routs lines Vehicles Ocean liners Trains, trucks OK Maintain status quo Nodes Int’l ports Domestic railway Not OK Stations upgrade to stations, logistic land ports parks Mechanisms Well developed Hardly any Not OK T develop int’l int’l trade & trade & transport transport mechanisms mechanisms Observations:将陆桥国际运输线对比海洋国际运输线可知： 1.Lack一是缺少国际运输节点 of int’l transportation nodes—— –国际港口 int’l ports 2.Lack二是缺少国际运输机制 of int’l transport mechanisms——完备的国际运输机制与国际贸易机制 – to develop comprehensive int’l trade & transport mechanisms

Inconsistent and backward mechanism of railway transport in Eurasia

Firstly, currently the railway transport in 33 countries in western Europe, north Africa and partial Asia adopts the Nepal Convention, whereas the former , , Korea, and other countries uses Agreement Concerning International Carriage of Goods by Rail. Two different mechanisms apply to the Eurasia;

Secondly, the land bridge transport mechanism remains backward, whereas international ocean transport and trade mechanism keeps evolving. Take International Rules for the Interpretation of Trade Terms for example. This Rules is amended every 10 years to adapt to new situations. But the international land bridge transport mechanism has never been revised, and become an impediment in the development of land bridge transport. The Operating Model of International Land Ports

乌兰巴托Ulaan- baatar 陆 港 Land Port

Tianjin天津港 Port Hohot呼和浩特 Port港 区 新加坡港Singapore Xi’an西安陆港 Land Port Tianjin天津港 Port Tianjin Port Xi’an Cape开普敦港 Town 天津港西安港区 Branch Qingdao Port Xi’an Qingdao青岛港 Port 青岛港西安港区 Moscow莫斯科 Lanzhou兰 州 Branch Hamburg汉堡港 Rotterdam鹿特丹港 Lianyungang Port Lianyungang Land陆 港Port Land陆 Port港 连云港西安港区 连云港 Xi’an Branch Port Shanghai Port 上海港西安港区 Los洛杉矶港 Angeles Xi’an Branch Shanghai上海港 Port Xi’an Railway No 4 Land Xi’an Land Port – Moscow Land Port 西安铁路集装箱站 NO:4 陆地 西安陆港——莫斯科陆港 Container Terminal 悉尼港Sydney Contract: FOB Xi’an 贸易合同：FOB XiAn 单证作业港区 Loading Port: Xi’an Land Port, Destination Moscow Documentation Land装船港：西安陆港 Port 目的港：莫斯科陆港 Process Port

NoNO:3 3 Develop发展 西安陆港 Xi’an Land—— Port海港 – Sea Port NoNO:2 2 Transition过渡 港区 Port—— – 海港Sea Port NoNO:1 1 Traditional传统 海港 Sea—— Port海港 – Sea Port Contract: FOB Xi’an Contract: FOB Shanghai Contract: FOB Shanghai 贸易合同： 贸易合同： 贸易合同： Loading Port:FOB Xi’anXiAn Land, Transit Port: Shanghai Loading Port:FOB ShanghaiShangHai Port Xi’an Branch, Loading Port:FOB Shanghai,ShangHai Destination Port,装船港 Destination：西安陆港 Sydney中转港 ：上海 目的港：悉尼 Destination装船港：上海港西安港区 Sydney 目的港：悉尼 Sydney装船港：上海 目的港：悉尼

海洋运输Maritime 新 New亚 Eurasia欧 大 Landbridge陆 桥 经 Economic济 带 （ Zone国 际(Int’l陆 land地 运 transport输 网 络 ） 国Int’l际 Maritime海 洋 Shipping运 输 网Network络 network) III. Solution: Give whatever is needed

Since the Land Bridge lacks international ports, we will upgrade domestic terminals along the Bridge into international land ports;

Since the Land Bridge lacks international transport mechanism, we will organize experts and scholars to revise and amend the international transport mechanism and international trade mechanism. Upgrade domestic terminals along the Bridge into international land ports, starting from • Firstly, China is a major economy in the Eurasia, and China Railway Corporation has the most railway resources including railway lines, rolling stock and railway stations. The upgrade of domestic bus stations into international land ports can only be realized with the coordination of CRC.

• Secondly, organize research efforts for the implementation plan. The Development and Research Center of Land Port Economics and Logistics of Xi’an International University will assist CRC in identifying problems with the Land Bridge transport and jointly explore the implementation plan for the upgrade in light of the ocean transport mechanism. In 2009, the author made some expansion and supplement to International Rules for the Interpretation of Trade Terms 2000 and came up with International Rules for the Interpretation of Trade Terms (for land ports). Suggestions on Incoterm Amendments for Land Port

Proposed amendments for Land Port Type Abbr. Incoterm 2000 Chinese Delivery Location Risk Division

Deliver on Deliver on Over the Board at board at ship side Loading loading port close to the Port port

Deliver at Over the gate of Deliver loading port loading port at Port Deliver at Over the bank of destination unloading port at port destination

Deliver at Deliver to Over the Carrier seller’s or carrier’s signing by warehouse carrier or yard in exp. country

Deliver at Over the gate of warehouse or yard seller’s warehouse Deliver to in exp. country or yard Buyer Deliver at Over the gate of warehouse or yard buyer’s warehouse in imp. country or yard Organize experts and scholars to revise and amend international transport and international trade mechanism

International Rules for the Interpretation of Trade Terms (for land ports) is only one of the many international regulations and norms. We should strengthen contact with ICC and other relevant organizations, organize experts and scholars to study and revise international treaties, domestic laws and international lex mercatoria including Uniform Custom and Practice for Documentary Credit Credits, Uniform Rules for Collection, Uniform Rules for a Combined Transportation Document, Uniform Rules for Contract Guarantees, Convention on the International Sale of Goods, and China’s Maritime Law and General Principles of the Civil Law to bring them in line with the need of international trade development in international land ports and inland regions, and introduce our practices to worldwide.

To Develop terminals into International Land Ports, & Establish Land Bridge Operation Mechanism

is a necessary measure to smooth the Land Bridge transport. Let’s join hands and work for that! Thanks！