Executive Secretary United Nations Economic Commission for Europe UNECE contribution to revival of the Silk Road 31st IRU World Congress Istanbul, 15-16 May 2008 Marek Belka Executive Secretary United Nations Economic Commission for Europe

The glorious past

Efforts to revive the Silk Road Confronted with: Political integration Significant financial risks Formalities at borders and trans-shipments Competing sea routes

UNECE contribution The centre of International Regulations, Standards and Norms for international inland transport and for dangerous goods; The centre of the TIR Convention, that is World’s most expanded customs guarantee scheme; Through its convening power and consultation forum it helps convert political wills into action: e.g. Ministerial Joint Statement on development of Euro-Asian Transport Links, February 2008; Agent of knowledge management: technical assistance (TA), advisory workshops, seminars and other capacity building activities…

E-Road network in Caucasus and Central Asia UNECE Transport Division

Challenges persist Underdeveloped, unsafe and low quality infrastructure Non harmonized transport policies and legislation, gaps in their implementation Long and cumbersome border crossing procedures Congestion at frontiers and ports Problems with visas for transport operators Transit constraints

Within Central Asia (now) Cost of freight and transit time for shipments from/to Central Asia 2004: Actual v. Potential US$ From/to Benelux (now) From/to Benelux (normal) This graph shows cost in $ and days of transport to/from Central Asia for various locations (Benelux and Central Asia are marked; others are Moscow and Istanbul). “Now” are costs at present; “normal” are estimated costs for border crossing standards that could be achieved with standard improvements in border management, customs, visa and other transit conditions. Within Central Asia (normal) Within Central Asia (now) days

Way forward to the glorious future Regional cooperation and integration – with each other, neighbours and rest of world – are key to success ------ Intensive cooperation could double regional GDP over 10 years, esp. for the poor and for border communities Facilitation measures to take and monitor Continued reforms and liberalization of the transport sector Pursue “good governance” reforms Accession to existing international legal instruments in transport (e.g. CMR, e-consignment note) Consistent implementation of international transport agreements, norms and standards Further modernization of the TIR System Benefit from technical assistance, advisory services, training and other capacity building activities Consensus building on all unresolved issues

Concluding Remarks Regional cooperation is key to success Euro-Asian transport links in need of development and upgrading Continued reforms of both transport and customs could be accelerated if benchmarking measures are in place, e.g. on border crossing performance UNECE commitment to support your efforts to revitalize the Silk Road and to further enhance the partnership also with regional cooperation initiatives and with the IRU UNECE ready to work with all stakeholders towards reaching consensus on all unsettled issues which are in the area of its responsibility and competence.

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