PRESENTATION Shankar Shinde...International North South Transport Corridor (INSTC)PRESENTATION...
Transcript of PRESENTATION Shankar Shinde...International North South Transport Corridor (INSTC)PRESENTATION...
International North South Transport Corridor (INSTC)PRESENTATION
Shankar Shinde FEDERATION OF FREIGHT FORWARDERS’ ASSOCIATION IN INDIA
COURTESYMinistry of Commerce & Industry
Ministry of External Affairs
Ministry of Finance
GOVERNMENT OF INDIA
26th Sept. 2018
INSTC Member Countries
Founder Members
INDIA IRAN RUSSIA
Other Members
REPUBLIC OF AZERBAIJAN
REPUBLIC OF ARMENIA
REPUBLIC OF KAZAKHSTAN
REPUBLIC OF KYRGYZSTAN
REPUBLIC OF TAJIKISTAN
REPUBLIC OF TURKEY
REPUBLIC OF UKRAINE
REPUBLIC OF BELARUS
OMAN
SYRIA
BULGARIA (OBSERVER)
MOSCOW
ТEHRAN
ASTRAKHAN
DELHI
ASTRAKHAN
MAKHACHKALA
AKTAU
TURKMENBASHI
NEVSHEHIR
ANZALI
BAKU
OLYA
Transport links of the Astrakhan water transport port hub
5 Countries
4
1. TURKMENISTAN
2. AZERBAIJAN
3. RUSSIA
4. IRAN
5. KAZAKHSTAN
Rail Challenges
Break-of-gauge and options
Transshipment/Transfer
Bogie changing
Use of wagons with variable-gauge bogies
Dual gauge
Uni gauge
North –South Corridor
advantages
Asian and European countries could make their cargotransportation through North-South Corridor with double speedcompared to Suez channel,
Carriage cost is 30% less, Transit 40% Shorter
A few countries exist along the route therefore (less bordercrossings and easier for the countries to reach agreements),
The route has few discontinues points, resulting into transloading.
The railway and using train is emphasized.
Intergartion and supplementing other Corridors
Recommended by international organizations: UN,UIC and ECO.
CUSTOMS UNION - ADVANTAGES
FREE TRADE AREA
No Tariff between Members
No External Tariff( Checks on Country of Origin
Can Negotiate Own Trade
CUSTOMS UNION
NO Tariff
No Border Check
Common External Tariff
Trade Deals for whole customs Union
SINGLE MARKET
Common External Tariff
Freedom of Movement goods and People
Common rules and Regulations
REGIONAL CONNECTIVITY
CENTRAL LOCATION ADVANTAGE
ASIA - EUROPE
IRAN – TRANSIT HUB
IRAN - AZERBAIJAN – RUSSIA & GEORGIA
IRAN – ARMENIA – GEORGIA
IRAN TURKEY
Infrastructure
Operations
Advantages
Warehousing ( Reefer /Perishable Cargo )
Customs Union – On time delivery
Advantage : The new “Rail Baltic project” ,
Estonia ,Lithuania partner co-operation to link
Baltic countries
EASE OF TRANSIT PROCESS
DOCUMENTATION
CMR -
TIR has eased the process and cargo can move on single
documentation
L/C conditions – by Importers ./ Banks Acceptance
BANKING PARTICIPATION - Remittances due to sanction .
COMPLIANCE
Sanitary / Quarantine / Drug Controller Testing & NOC process
ROUTE OPTIONS –
MEMBER S / NON MEMBERS COUNTRIES both can utilise the routes
Help to raise volume for regular Rail movements
SAFETY OF CARGO
There is smooth movement of cargo transportation on regular basis
Insurance facilities available for transit cargo
CHALLENGES - TRADE
Trade
Gain Confidence & Willingness for Participation
Government Support
Banking Channels
Insurance
Shipping Support ( vessel operators)
PSU sector to operate on INSTC route
Issuance of Visa
Single window operators
CHALLENGES – LOGISTICS
Limitation of shipping Lines
National Shipping Lines should regularly operate on the sea
route of India - Iran
NVOCC ( Non Vessel Owner Common Carriers) operators
participation
MTO ( Multimodal Transport Operators)participation
Majorly SOC ( Shipper own container ) operation ( high cost of
containers)
Slot Arrangements rates are higher than regular COC.
Volumes for feasibility and break even in rail transportation.
Logistics Partner Remittances Challenges.
OPERATIONAL CHALLENGES – TRADE / LOGISTICS
LACK OF LOGISTICS PARTNERS PARTICIPATION
REGISTRATION OF IMPORTERS /EXPORTERS AT RUSSIAN
PORTS
AVAILABILITY OF CONTAINERS & RETURN CARGO
CONTAINERISED CARGO V/S. BULK CARGO
CASPIAN SEA REGULAR OPERATIONS
RAIL/ TRANSPORT SERVICE PROVIDERS AT RUSSIA
CASPIAN SEA
PROMOTION OF PORTS ON CASPIAN
WAY FORWARD
Technology :Common IT platform – tracking
• (GPS/RFID) enabled
Seamless movements
• Single window with other agency drug control /
quarantine clearances.
Connectivity V/S. Speed
Integration of Corridors ,
• Supplementing rather than Competing
• TIR Accession
AWARENESS AND PROMOTION
Trade promotion and participation
Aligning infrastructure
Competitive and consistence services
Expertise of logistics partners
Reliability , security , safety measures
International railway co-operation
Harmonization of customs cross
border clearances operation /
processes.
1. There is a need to have a common facilitation cell in each country
2. The cell should consist of Logistics council, Shipping council,
legislative and legal, trade council.
3. All the cells should be centrally connected thru the INSTC website
and update the knowledge bank as well as resources/opportunities
time to time.
4. All councils should consist of government as well as trade
members and some experts/consultants on the panel to ensure
unbiased growth.
Common Implementation by all countries
Ministry of Commerce & Industry ,Ministry of External Affairs, GOVERNMENT OF INDIA
[email protected] : +91 9321473101