Transit Corridors: A Review of Operational and Facilitation Issues

Jean Francois Arvis John Arnold

Corridor Analysis
Derived Demand
Examine Trade Flows

Quality of Services
Measure End-to-End Performance

Multimodal
Routes Rather Than Links

Regional Integration
Border Crossings

Classification
Domestic
Internal Trade

Foreign
Bilateral Trade Border Crossing or Gateway

Transit
Third Country Trade Border Crossing and Gateway

Typical Corridor

Typical Network

Reasons for Developing Corridors

Domestic
Promote efficient production Reduce delivered costs to consumers

Foreign
Improve competitiveness Reduce delivered costs to consumers

Transit
Improve economy and political stability of neighboring countries Develop economic activity providing services and processing activities for the transit cargo

Performance Measures
Transit Time
Average Door-to-Door Essential Activities

Logistics Cost
Shipper Out-of-pocket Discretionary Expenditures

Reliability
Scheduled-Stochastic

Flexibility
Routes, modes

c ca,ta,ra

cb,t ,t b,rb

cc,tc,rc cd,td,r ,r d

Volume of trade

ce,te,re

Local Component
100 90 80 70 60 50 40 30 20 10 0 Cost Time
Destination Ocean Inland

Door-to-door Cost

Cost

Origin

Distance

Destination

Door-to-door Time

Time

Origin

Distance

Destination

Corridor Improvements
Short-term
customs and border crossing procedures improvement in quality of logistics services traffic control

Medium-term
development of infrastructure and interconnections commercialization of infrastructure services certification, liabilities relocation of clearance activities

Long-term
harmonization of standards Liberalized trade and transit agreements modification of cabotage, reciprocity

Project TEN TRACECA Can-Mex (NAFTA) Pan American Bolivia-Chile (Mercosur) Northern Corridor Maputo Corridor Trans-Kalahari West African Corridors Turkey-Jordan Asian Highway Mongolia-China SAARC Corridors GMS Corridors Northern West-Borneo

Establish Interoperability

Increase Interconnections

Improve Interconnections

Improve Market Access

Increase Route Capacity

X X

X X

X X X X X X X X X X X X X X X

X X X

X X X

X X X X

X X

X X X X

X X

Management Role
Not Control but Coordination Promotion and Advocacy Focus on Choke Points Build Public-Private Partnership Bilateral versus Multilateral

Management Models
Disjointed Incrementalism
West Bengal, Pan American Central Corridor

Legislative
TEN, TRACECA, Maputo, Mercosur, Can-Mex

Consensus Building
Trans-Kalahari, Northern Corridor, Asian Highway

Corridors and SME Development

Retailer, Chain

DC for Brand Domestic Manufacturer Manager, Wholesaler

Intl. Suppliers, Generic or Brand Contract Manufacturer

SME Suppliers

Thank You