Regional Cooperation in Transport for Development

1
Regional Cooperation in Transport for Development

• Transit Mongolia Forum Ulaanbaatar, March 19th

2
Regional Cooperation in Transport Brings Growth

• Trade Major constraint for land-locked countries
• Potential impacts in Central Asia
• International transport costs
• Incomes and consumption
• Long-term regional GDP

3
Benefits of Regional Cooperation in Transport

• Cost of road Freight and Transit Time for
  Shipment from/to Central Asia 2004 Actual v.
  Potential

US
From/to Benelux (actual)
From/to Benelux (potential)
Within Central Asia (actual)
Within Central Asia (potential)
days
4
How Much Does Transport Cost to Mongolia?

• Transport costs
• Demurrage costs
• Trans-border costs
• Total international transport costs
• 11 of value of imports
• 33 of value of exports

5
Improving Mongolian Transport Systems

• Physical constraints
• Rail rolling stock
• Road infrastructure
• Logistic infrastructure
• Port infrastructure at Tianjin
• Non-physical constraints
• Management of roads and railways
• Logistics industry

6
The Long Road Towards Transit Facilitation

• Regional transit customs issues
• Transit policies
• Custom procedures not standardized
• Lack of transparency
• Lack of coordination
• Staged approach
• Good transit facilitation agreements take time
• and requires important institutional capacity

7
ADB-Mongolia Partnership in the Transport Sector

• Main axes
• Development of international road corridors
• North-South corridor (Asian Highway 3)
• Western Regional Road Corridor (Asian Highway 4)
• Reduction of transport bottlenecks for trade
  development and transit facilitation
• Regional Logistics Development Project
• Customs modernization project
• Support for private sector participation in
  transport for mining resources development

8
ADB-Mongolia Partnership in the Transport Sector
Regional Road Corridor Project
Western Regional Road Corridor Project
Regional Logistics Project