Realising the Potential of the Middle Corridor
This study, based on surveys from and interviews with the private sector, maps and sequences main reform priorities in relation to regional integration, infrastructure, trade facilitation and supra-national coordination. It suggests that the primary aim should be to develop the corridor not solely a...
| Formato: | Libro electrónico |
|---|---|
| Idioma: | Inglés |
| Publicado: |
Paris :
Organization for Economic Cooperation & Development
2023.
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| Edición: | 1st ed |
| Ver en Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009792116006719 |
Tabla de Contenidos:
- Intro
- Foreword
- Acknowledgments
- Abbreviations and acronyms
- Executive summary
- Realising the Middle Corridor's potential requires to transform it into a major trade route
- Regional integration: creating traffic and demand on the route will largely stem from increased regional economic and trade integration
- Trade facilitation: reforms should focus on advancing digitalisation and harmonisation of border procedures and permit requirements
- Infrastructure: additional investments are needed to improve multimodality across the route and port and vessel capacity in the Caspian Sea
- Transnational co-operation: a common regional approach is required to implement these reforms, and deepen regional economic and trade integration
- 1 The Context: Growing interest in the Middle Corridor
- Central Asia, the South Caucasus and Türkiye can play a central role in intensifying regional co-operation and opening new trade routes
- Türkiye represents a central East-West and North-South trade hub
- Central Asia and the South Caucasus could benefit from a possible shift in China's regional trade and transit strategy
- The Middle Corridor constitutes a promising alternative to the Northern route, but much remains to be done to realise its potential
- The Middle Corridor is a viable, albeit complex, route connecting Asia to Europe through Central Asia and the South Caucasus
- This report assesses challenges and identifies reform priorities in relation to infrastructure, trade facilitation and stakeholder co-ordination along the Middle-Corridor
- Infrastructure bottlenecks and inadequate trade facilitation increase costs and transit times along the Middle Corridor
- Limited regional trade and economic integration in Central Asia and the South Caucasus further reduce the route's trade competitiveness.
- Unlocking the Potential of the Middle Corridor: Challenges, Opportunities, and Pathways Forward
- The economies of the South Caucasus and Central Asia remain closely integrated with Russia, leaving them vulnerable to supply risks and secondary sanctions
- Countries along the corridor can foster regional co-operation and generate trade opportunities
- The Middle Corridor has the potential to become a viable route if capacity constraints and regional co-operation issues are addressed
- References
- 2 Further regional economic and trade integration is key to the route's long-term viability
- Limited integration into global trade constrains private-sector demand for the Middle Corridor
- The corridor countries' trade integration could improve
- The participation of the South Caucasus and Central Asia in global trade is limited
- Intra-regional trade remains under-developed in Central Asia and the South Caucasus
- Weaknesses in the overall business climate in Central Asia and the South Caucasus constrain private sector development and export growth
- Regional logistics services remain underdeveloped along the Middle Corridor reducing transit efficiency and reliability
- High prices and low capacity along the Middle Corridor weigh on its competitiveness
- Rail and maritime tariffs and schedules are unpredictable and often poorly accessible
- Overall, quasi-monopolies hamper the development of this sector
- Recommendations
- Further reforms to improve framework conditions for private-sector development can enhance the region's trade potential and stimulate demand along the route
- Develop national and regional export promotion strategies through SME and entrepreneurship development
- Address remaining gaps in the operational environment for firms, particularly in relation to trade and investment.
- Improved logistics services can increase the efficiency and reliability of the Middle Corridor and contribute to more integrated regional markets
- Incentivise the development of logistics centres along the route, especially in Central Asia and the South Caucasus
- Harmonise, and clearly communicate, rail and maritime tariffs along the route
- References
- Notes
- 3 Facilitating trade: harmonisation and digitalisation for traffic development
- Trade facilitation has progressed for each country along the route, but regional efforts so far remain limited
- Stakeholders have identified the need for better trade facilitation and governments have advanced reforms to increase the Corridor's attractiveness
- Yet, the persistence of bottlenecks at borders highlights the need for soft measures to improve the route's competitiveness
- Multilateral efforts exist but are scattered
- Cargo traffic remains subject to multiple and unharmonised regulatory, license, and permit requirements along the Middle Corridor
- Unharmonised legal framework conditions, especially for rail and road standards, result in interoperability issues along the route
- The legal regime for rail cargo carriage creates interoperability issues
- Road cargo transport documents and procedures
- Countries are still working to address the partial and unharmonised digitalisation of transit and border documents
- Insufficient border customs capacity and lacking co-operation among customs agencies along the route lead to congestion when traffic increases
- Difficult co-operation between customs along the route lead to repetitive inspections and delays
- Border customs lack the capacity needed to handle increased traffic
- Recommendation: develop a regional approach to border and transit documents, and build the capacity of border crossing points.
- Develop a single regional legal framework regulating all transport modes and ensure standardisation and implementation of requirements
- Digitalise border and transit documentation and intensify electronic exchange of data
- Improve information exchange and expand customs capacity through intensified cross-border co-operation
- References
- 4 Improving the Middle Corridor's attractiveness requires investing in port and rail infrastructure, with a focus on multimodality
- Governments across the region have invested in road, rail, and maritime infrastructure in recent years
- Azerbaijan, Georgia, Kazakhstan, and Türkiye have been developing their seaports
- Rail networks have been expanded and modernised along the route
- Road networks have been expanded in the South Caucasus and Türkiye but remain problematic in Central Asia
- However, infrastructure bottlenecks lead to congestion, especially at border points and ports, and reduce the route's attractiveness
- Despite increased investment in transport infrastructure, Middle Corridor economies' investments remain low in absolute terms
- Container and Caspian Sea vessel fleet capacity is not in line with current and projected needs and leads to congestion issues
- Deficient multimodality, lack of equipment and limited automation of ports lead to important congestion despite low utilisation rates
- Border crossings and inland transport also suffer from a lack of multimodality
- Recommendations
- Develop multimodal infrastructure
- Enhance the transhipment of goods at border crossings
- Improve the multimodality of ports
- Create dry ports and containerisation infrastructure
- At the national level, advance last-mile connectivity to better connect local growth poles along the route
- Increase vessel fleet capacity and regularity in the Caspian Sea.
- Develop rail capacity to improve the route's throughput and sustainability
- Set up adequate environmental standards and incentives to develop a low-carbon transport offer
- References
- Notes
- 5 Effective implementation: strategic planning, private sector involvement and regional co-operation
- Regional dialogue on the Middle Corridor has intensified, but greater co-ordination will be needed to develop it
- A regional inter-governmental dialogue on an action plan to develop the route has started to formalise
- Collaboration between Middle Corridor countries is increasing but could be further improved
- Reform efforts also largely remain within the domestic scope
- At the national level, the lack of an integrated strategy and limited co-ordination between levels of government constrain reform
- Co-operation and co-ordination among various authorities, as well as between the public and private sectors at the national level, is still insufficient
- Public-private co-operation also remains at the margins and limits private sector involvement in the planning and financing of the route's development
- Public-private partnership frameworks for infrastructure financing and development exist, yet remain at an early stage of development
- Despite improved dialogue at the regional level, the private sector is largely excluded from strategic discussions about the route's development, at the national level
- Current infrastructure projects therefore remain mainly publicly financed, with limited interest from private investors
- Defining a co-ordination framework and building capacity for efficient and transparent planning to enhance regional co-operation
- Develop the institutional tools to support a common approach to the development of the Middle Corridor
- Set up a formal coordination framework for the Middle Corridor.
- Define and publish a long-term infrastructure development plan.
