Presented by:Presented by:

Asil Gezen, Ph.D., President, TERA International Group, Asil Gezen, Ph.D., President, TERA International Group, Inc.Inc.

Sterling, VA 20164, U.S.A.Sterling, VA 20164, U.S.A.

Integrating Central Asia into the World Economy:Integrating Central Asia into the World Economy:The Role of Energy and Transport Infrastructure; The Role of Energy and Transport Infrastructure;

Washington, DC: 22-23 October 2007Washington, DC: 22-23 October 2007

CENTRAL ASIA REGIONAL ECONOMIC

COOPERATION (CAREC) TRANSPORT SECTOR

STRATEGY

Good neighbors…

Good partners…

Good prospects…

……through competitive regional through competitive regional transport.transport. Member Multilateral

Institutions:

ADB, WB, EBRD,

IMF, IsDB, UNDP

Good neighbors, Good partners, working together for Good neighbors, Good partners, working together for Good prospects….Good prospects….Recent Examples:Recent Examples:

Amu Derya (Pianj) Bridge AFG-TAJ Official Opening 26 Aug 2007

(CAREC 5 and 6c)

Guzar-Kumkurgan (Termez) Railway UZB-AFG Official Opening: 24 Aug

2007 (CAREC 3b and 6a,b)

9 October 2007: Lianyungang-Moscow 5T Intermodal Train Service inaugurated by CRCTC (CAREC 1a) 25-day guaranteed transit time

BACKGROUNDBACKGROUND Established: 1997 Main purpose: to promote economic

development through cooperation, and thus accelerate economic growth and reduce poverty.

Secretariat Function Undertaken by: ADB Priority Core Sectors: Transport, Energy, Trade

Policy, and Trade Facilitation and Customs Cooperation.

Structure: Expert Coordination Committees, Senior Officials’ Meetings, Ministerial Conferences.

Current ConditionsCurrent Conditions

With the exception of a few bottlenecks and inadequate infrastructure, the national transport systems in CAREC members have been performing satisfactorily in providing reasonable service in domestic movements of goods and people. Cross border and transit trades by road within and outside CAREC have been slowly increasing and are still relatively low ranging from less than 100 to 1,100 vehicles per day largely because of inadequate facilities and delays. Cross-border trade is largely dominated by rail between CAREC members where rail mode of transport is available. Where infrastructure is adequate, management and low-cost technology improvements are needed to increase capacity, reduce costs/transit times, and increase competitiveness.

ROAD TRAFFIC DENSITY IN THE 6 CAREC CORRIDORSROAD TRAFFIC DENSITY IN THE 6 CAREC CORRIDORS

RAIL TRAFFIC DENSITY IN THE 6 CAREC CORRIDORSRAIL TRAFFIC DENSITY IN THE 6 CAREC CORRIDORS

The OpportunityThe Opportunity

2018$222 Billion

2018$351 Billion

2005$128 Billion 2005

$72 Billion

8.1%

9.1%

Economy Foreign Trade

THE CHALLENGE: BALANCED DEVELOPMENT FOR THE CHALLENGE: BALANCED DEVELOPMENT FOR

SUCCESSFUL CORRIDOR PERFORMANCESUCCESSFUL CORRIDOR PERFORMANCE

It is the policy of the Governments of CAREC countries to provide safe, dependable, effective, efficient, and fully integrated transport operations and infrastructure in order to support social and economic development in the CAREC region. This will be achieved by improving levels of service; minimizing costs; and improving infrastructure, management, and technology in a manner which is both economically and environmentally sustainable. In addition, the efficiency of the transport systems will be enhanced in a regional context to allow the CAREC region to exploit its unique geographical position.

ProposedProposed Policy StatementPolicy Statement-An overall framework for the regional transport strategy

Overarching TSS GoalsEstablish competitive transport

corridors across the CAREC regionFacilitate efficient movement of goods and people across bordersDevelop safe, people-friendly transport systems that are environmentally sustainable

Major Transit Trade DirectionsMajor Transit Trade Directions

Europe – Middle East and South Asia

Europe – East Asia

Russian Federation - Middle East and South Asia

South Europe – East Asia

East Asia – Middle East and South Asia

1

2

43

5

Key Corridors Selection CriteriaKey Corridors Selection Criteria

Current traffic volume Prospect for promoting economic growth and

future traffic Ability to increase connectivity between major

population & economic centers Potential to reduce delays (gauge change, BCP) Economic & financial sustainability of

investments in infrastructure, technology and management

Inclusion Rule: At least 2 CAREC countries

PROPOSED SIX CAREC CORRIDORSPROPOSED SIX CAREC CORRIDORS

CAREC Transport Corridor 1CAREC Transport Corridor 1

CAREC Transport Corridor 2CAREC Transport Corridor 2

CAREC Transport Corridor 3CAREC Transport Corridor 3

CAREC Transport Corridor 4CAREC Transport Corridor 4

CAREC Transport Corridor 5CAREC Transport Corridor 5

CAREC Transport Corridor 6CAREC Transport Corridor 6

TSS PROJECTSTSS PROJECTS

Investment TA TotalCorridor

1 23 2 252 24 5 293 25 3 284 1 2 35 16 4 206 31 6 37

Multiple Corridors 38 7 45All Corridors 1 21 22

Other/Not Applicable 4 9 13Subtotal by Corridor (*) 163 59 222

Mode 0Aviation 8 6 14

Intermodal/Logistics 1 3 4Rail 32 8 40

Road 36 18 54Sea 3 2 5

All 1 8 9Total Projects 81 45 126

Project Type (number)Corridor/Mode

Summary of Projects

Next StepsNext StepsM

C’s

Adop

tion

3rd W

orks

hop

Fina

l Rep

orts

TSCC

End

orse

men

t

SOM

/MC

3 Nov Jan Mar 2nd Qtr 3rd/4th Qtr

2008

ContactContact

Dr. Asil GezenDr. Asil GezenAdvisor, CAREC TSCC SecretariatAdvisor, CAREC TSCC Secretariat

TSS Project Team Leader/President TSS Project Team Leader/President TERA International Group, Inc.TERA International Group, Inc.

E-mail:E-mail: agezen@teraint.comagezen@teraint.comPhone: 1-703-406-1550Phone: 1-703-406-1550

Fax: 1-703-406-1550Fax: 1-703-406-1550

For More Information

Thank Thank youyou