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

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Integrating Central Asia into the World
Economy The Role of Energy and Transport
Infrastructure Washington, DC 22-23 October
2007
CENTRAL ASIA REGIONAL ECONOMIC COOPERATION
(CAREC) TRANSPORT SECTOR STRATEGY
Presented by Asil Gezen, Ph.D., President, TERA
International Group, Inc. Sterling, VA 20164,
U.S.A.
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Good neighbors
Good partners
Good prospects
through competitive regional transport.
Member Multilateral Institutions ADB, WB, EBRD,
IMF, IsDB, UNDP
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Good neighbors, Good partners, working together
for Good prospects.Recent Examples
Guzar-Kumkurgan (Termez) Railway UZB-AFG Official
Opening 24 Aug 2007 (CAREC 3b and 6a,b)
Amu Derya (Pianj) Bridge AFG-TAJ Official Opening
26 Aug 2007 (CAREC 5 and 6c)
9 October 2007 Lianyungang-Moscow 5T Intermodal
Train Service inaugurated by CRCTC (CAREC 1a)
25-day guaranteed transit time
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BACKGROUND

• 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.

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Current 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.

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ROAD TRAFFIC DENSITY IN THE 6 CAREC CORRIDORS
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RAIL TRAFFIC DENSITY IN THE 6 CAREC CORRIDORS
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The Opportunity
Foreign Trade
Economy
2018 351 Billion
8.1
9.1
2018 222 Billion
2005 128 Billion
2005 72 Billion
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THE CHALLENGE BALANCED DEVELOPMENT FOR
SUCCESSFUL CORRIDOR PERFORMANCE
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Proposed Policy Statement

• An overall framework for the regional transport
  strategy

• 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.

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Overarching TSS Goals

• Establish competitive transport corridors across
  the CAREC region
• Facilitate efficient movement of goods and people
  across borders
• Develop safe, people-friendly transport systems
  that are environmentally sustainable

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Major 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

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1
3
4
5
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Key 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
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PROPOSED SIX CAREC CORRIDORS
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CAREC Transport Corridor 1

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CAREC Transport Corridor 2
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CAREC Transport Corridor 3

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CAREC Transport Corridor 4

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CAREC Transport Corridor 5

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CAREC Transport Corridor 6
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TSS PROJECTS

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Next Steps
TSCC Endorsement
SOM/MC
MCs Adoption
3rd Workshop
Final Reports
2008
3 Nov Jan Mar 2nd Qtr
3rd/4th Qtr
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Thank you
For More Information
ContactDr. Asil GezenAdvisor, CAREC TSCC
Secretariat TSS Project Team Leader/President
TERA International Group, Inc.E-mail
agezen_at_teraint.comPhone 1-703-406-1550Fax
1-703-406-1550