Informal document No. 1 Distr.: General 20 January 2017 English only Economic Commission for Europe Inland Transport Committee Working Party on Transport Trends and Economics Group of Experts on Euro-Asian Transport Links Fifteenth session Yerevan, 31 January and 1 February 2017 Item 2 of the provisional agenda Identification of cargo flows on the Euro-Asian transport links Draft report of the phase III of the Euro-Asian Transport Links project Prepared by the "Scientific and Research Institute of Motor Transport" (NIIAT) Introduction 1. This document contains the draft final report of the phase III of the Euro-Asian Transport Links (EATL) project. It presents the results of the project’s phase III whose aim was to identify measures to make the overland EATL operational. 2. In particular, the report offers an overview and analysis of the existing situation in transport and trade along EATL routes, it reviews existing studies, programmes and initiatives on the development of EATL in the period 2013-2016, it identifies main transportation and trade obstacles in transport, trade, border-crossing, customs and transit along the EATL routes, and it formulates recommendations to overcome the identified obstacles as well as to further develop the trade across the EATL area. 3. This document is submitted to the fifteenth session of the Group of Experts on EATL for discussion and review. Informal document No. 1 TABLE OF CONTENTS I. EURO-ASIAN TRADE ROUTES AND FREIGHT FLOWS I.1. Economics and trade current situation in EATL Region I.1.1. General overview: world trade and economics I.1.2. European region I.1.3. Asia and Pacific region I.1.4. CIS member-states I.2. Euro-Asian trade routes I.2.1. Trade routes general development I.2.2. Main trade partners I.2.3. Main commodity groups I.2.4. Container freight I.3. Euro-Asian transport flows I.3.1. Maritime routes situation I.3.2. EATL main routes general overview I.3.3. EATL Railway routes and railway transport I.3.3. EATL Road routes and road transport I.3.5. EATL Inland waterways and ports I.3.6. Air routes and main airports I.4. EATL related sea ports and their hinterland connections I.4.1. Sea ports role in EATL corridors I.4.2. Port statistics and trends I.4.3. Most important sea ports identification I.4.4. Logistic centers and dry ports in the EATL system 1.5. Comparative analysis of the duration and expenses of different modes of transport between Europe and Asia on selected Euro-Asian routes 2 Informal document No. 1 II. CURRENT INITIATIVES, PROJECTS AND STUDIES IN EATL REGION II.1. Overview of international studies, programmes and initiatives on Euro-Asian transport links development II.1.1. UN GA II.1.2. UN ECE II.1.3. UN ESCAP II.1.4. UN OHRLLS II.1.5. UNCTAD II.1.6. UN SPECA II.1.7. European Union II.1.8. Eurasian Economic Union II.1.9. Silk Road Economic BELT Initiative II.1.10. OSCE II.1.11. OSJD II.1.12. BSEC II.1.13. TRACECA II.1.14. ECO II.1.15. GUAM II.1.16. World Bank II.1.17. ADB and CAREC Program II.1.18. IDB II.1.19. EBRB II.1.20. EDB II.1.21. IRU II.1.22. UIC II.1.23. Global Partnership for Sustainable Transport (GPST) II.2. Most important national level programmes and projects II.3. Container block-trains in the EATL trade II.3.1. Block trains role in the Euro-Asian logistics 3 Informal document No. 1 II.3.2. Block trains: case descriptions II.3.3. Pre-conditions for effective block-trains operation III. MAIN OBSTACLES HAMPERING THE EURO-ASIAN TRANSPORT LINKAGES DEVELOPMENT III.1. General overview III.2. Border Crossing Points as bottlenecks III.3. Barriers concerning goods transported III.4. Barriers concerning border crossing technologies and procedures III.5. Road transportation specific barriers III.6. Rail transportation specific barriers III.7. Intermodal transportation specific barriers III.8. Political situation III.9. Mismatch of public and private interests IV. EATL: LOOKING INTO THE FUTURE V. CONCLUSIONS AND RECOMMENDATIONS REFERENCES 4 Informal document No. 1 ABBREVIATIONS ADB Asian Development Bank AIIB Asian Infrastructure Investment Bank ASEAN Association of Southeast Asian Nations BSEC Organization of the Black Sea Economic Cooperation BSEC-URTA BSEC Union of Road Transport Associations CAREC Central Asian Regional Economic Development Program CCTP Coordinating Council on Trans-Siberian Transportation International Association CEFIR Centre for Economic and Financial Research at the New Economic School CIM Uniform Rules concerning the Contract of International Carriage of Goods by Rail CIS Commonwealth of Independent States COSCO China Ocean Shipping Company COTIF Convention concerning International Carriage by Rail EAEU Eurasian Economic Union EATL Euro-Asian Transport Links EBRD European Bank for Reconstruction and Development ECO Economic Cooperation Organization EDB Euro-Asian Development Bank EECCA Eastern Europe, Caucasus and Central Asia EU European Union FAS FESCO Amur Shuttle FASw FESCO Amur Shuttle westbound FBS FESCO Baltic Shuttle service FELB Far East Land Bridge FESCO Far East Shipping Company FMS FESCO Moscow Shuttle FMSe FESCO Moscow Shuttle eastbound FOB free on board FOS FESCO Ob Shuttle FSS FESCO Siberian Shuttle FSSe FESCO Siberian Shuttle eastbound FUS FESCO Ural Shuttle GDP gross domestic product GIS Geographical Information System GPST Global Partnership for Sustainable Transport GUAM Organization for Democracy and Economic Development GVC Global value chain IBRD International Bank for Reconstruction and Development ICT information and communication technology IDA International Development Association IDB Islamic Development Bank IGC Intergovernmental Commission IM Infrastructure Manager IMF International Monetary Fund IRF International Road Federation ISIC International Road Transport Union ISIC International Standard Industrial Classification KTZ Kazakhstan Railways LDC Least developed countries LHV long and heavy vehicles LLDC Landlocked developing countries MLA Multilateral Agreement 5 Informal document No. 1 OBOR One Belt – One Road Initiative OECD Organisation for Economic Co-operation and Development OSCE Organization for Security and Co-operation in Europe OSJD Organization for Cooperation of international Railways OTIF Intergovernmental Organisation for International Carriage by Rail PETC Pan-European Transport Corridors RZD Russian Railways RZDL Russian Railways (RZD) Logistics SDGs Sustainable Development Goals SITC Standard International Trade Classification SMGS Agreement on Direct International Goods Transport by Rail SPECA United Nations Special Programme for the Economies of Central Asia SREB Silk Road Economic Belt TAR Trans-Asian Railway Network TEL Trans Eurasia Logistics TEM Trans-European Motorways Project TEN-T Trans-European Network - Transport TER Trans-European Railways Project TEU Twenty-foot equivalent unit TRACECA Transport Corridor Europe – Caucasus – Asia TSR Trans-Siberian Railway TWG Thematic Working Group UIC International Union of Railways UNCTAD United Nations Conference on Trade and Development UN DESA United Nations Department of Economic and Social Affairs UNDP United Nations Development Program UNECE United Nations Economic Commission for Europe UN OHRLLS United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and the Small Island Developing States UNESCAP United Nations Economic and Social Commission for Asia and Pacific UNWTO United Nations World Tourism Organization UTLC United Transport and Logistics Company WCM World Container Model WCO World Customs Organization WTO World Trade Organization XUAR Xinjiang Uyghur Autonomous Region, China 6 Informal document No. 1 INTRODUCTION History and background The Euro-Asian Transport Links (EATL) project is a part of long-term collaborative work carried out during recent decades by international institutions and particular countries of the Eurasia to improve the conditions for trade and socio-economic development on the continent. At the moment EATL is supported by 38 countries: Afghanistan, Armenia, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cyprus, Finland, France, Georgia, Germany, Greece, Iran, Italy, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Malta, Mongolia, Pakistan, Poland, Portugal, Republic of Moldova, Romania, Russian Federation, Serbia, Spain, Tajikistan, The former Yugoslav Republic of Macedonia, Turkey, Turkmenistan, Ukraine, Uzbekistan. EATL started in 2002 as a joint undertaking between the United Nations Economic Commission for Europe (UNECE) and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). Phase I of the project (2002-07) had selected the main Euro-Asian road, rail and inland water transport routes, transshipment points and ports. Projects were prioritized in order to improve the selected routes. The first analysis of physical and non-physical obstacles hampering the trade via the surface Euro-Asian routes was undertaken. An Expert Group established under the Phase I proved to be the effective cooperation platform for the coordinated development of coherent Euro-Asian inland transport links. Phase II of the EATL project (2008 to 2013) was coordinated by UNECE. Within this phase the Expert Group identified nine rail and nine road corridors (EATL corridors) which should be considered as principle transport links between Europe and Asia. At the same time 311 projects linked with the EATL corridors were proposed by the participating countries. The projects have been evaluated from