1. Trade and Transport Facilitation in Southeast Europe -Vision for Integrated Trade and Transport Corridors- Liljana Sekerinska Consultant World Bank

2. Trade and Transport Facilitation and the WB TTFSE I Program – initiating discussion Scaling up TTFSE I – the corridor approach TTFSE II current preparation status Trade and Transport Facilitation in Southeast Europe -Vision for Integrated Trade and Transport Corridors-

3. What do we tackle under trade and transport facilitation and why? Trade and Transport Facilitation and the WB Trade liberalization is progressing well (e.g. the new CEFTA agreement) and practical experiences show border formalities more significant barrier than tariffs Transport demand v. investment and maintenance/rehabilitation Transport networks conditions Inter-agency and cross-border agency relations Inclusion of business sector Customs reform

4. Naslov na prezentacija TTFSE I Program – initiating discussion Trade and Transport Facilitation and the WB Scaling up TTFSE I – the corridor approach TTFSE II current preparation status

5. TTFSE geographical scope TTFSE I Program – initiating discussion SERBIA MONTENEGRO

6. TTFSE I Program objectives To reduce non-tariff costs to trade and transport To increase revenue and compliance To reduce smuggling and corruption at border crossings TTFSE I Program – initiating discussion

7. TTFSE I Program Common components:  Supporting customs reform;  Strengthening mechanisms of interaction and cooperation between private and public parties at regional, national, and local levels;  Disseminating information, and  Providing training to the private sector TTFSE I Program – initiating discussion Key elements:.  Border crossing points and in-land terminals;  National coordinator;  Performance indicators;  Local project teams;  Survey of users;  Regional steering committee and MoU, and  Regional websites

8. TTFSE achievements (1)  Reduced border crossing times by 65%  Reduced inland clearance times by 63%  Increased trade volumes by 46%  Increased customs revenue by 86% TTFSE I Program – initiating discussion

9. TTFSE achievements (2)  Reduced border crossing times by 65%  Reduced inland clearance times by 63%  Increased trade volumes by 46%  Increased customs revenue by 86% TTFSE I Program – initiating discussion

10. TTFSE I Lessons learned Border crossing facilitation involves several agencies; Communication & info sharing – a “must” among border agencies and across borders; Regional cooperation heightened by common interest in EU accession; High-level Government commitment - condition for success; Selectivity and harmonization of procedures – key to TF; TF requires strengthening role of users (private sector); Replication and scaling up of what worked. TTFSE I Program – initiating discussion

11. Scaling up TTFSE I – the corridor approach Trade and Transport Facilitation and the WB TTFSE I Program – initiating discussion TTFSE II current preparation status

12. Scaling up the Program (TTFSE II) Same regional platform and mechanisms; regional indicators; …but broader scope: Extension to several modes of transport and multi/inter- agency cooperation; Continue dialogue and cooperation with Stability Pact, EU, donors; EU (TEN) corridor approach complementary to EC Core Network MoU (Luxemburg 2004); Promoting interoperability of transport modes across borders; Focus on cost reduction as a result of increased speed and reliability along the corridor. Scaling up TTFSE I – the corridor approach Minimize the “economic distance to markets” through a corridor approach

13. TTFSE II: key features  Focus on the main TEN-T Corridors running through Southeast Europe and connecting the region with its neighbours (Corridors IV, V, VII, VIII, IX, X)  Multi-agency coverage: involvement of all agencies active at the border  Multi-modal coverage: expansion of TTF measures to include various modes of transport  Replication of the TTFSE pilot approach at all BCPs and inland terminals along the main TEN-T Corridors in the region Scaling up TTFSE I – the corridor approach

14. Exemplifying the TTFSE II Corridor approach: TEN-T Corridor X Corridor X: critical access to EU and SEE markets however Under-optimized  Long delays at road and rail border crossing points (up to 24 hours)  Uncertainties due to multiple borders  Limited rail traffic  low turnover  RORO from Turkey to Italy preferred alternative to Corridor X Scaling up TTFSE I – the corridor approach

15. Corridor X: Road Challenges Border challenges  Need for procedural improvement  Reduce duplication of controls  Optimize staffing policy/incentives  Interagency cooperation and information flow  Smart border infrastructure (use better what exists)  Equipment for faster controls Road Infrastructure in needs of upgrade and repair (partially on-going)  Section Nis-Sofia, Nis-Kumanovo Scaling up TTFSE I – the corridor approach

16. Corridor X: Rail Challenges Strong competition and shift in traffic Rail Infrastructure: needs upgrade and repair No advance processing Need more commercially-driven service: reliability at wagon level, price, safety, time Border operational practices leading to long delays Change of loco, brake tests, wagon tests, technical checks at the border instead of marshalling yards Need regional integration of documentation processing with border agencies Scaling up TTFSE I – the corridor approach

17. Potential Benefits 47 hours 98 hours 51 hour Scaling up TTFSE I – the corridor approach

18. TTFSE II current preparation status Trade and Transport Facilitation and the WB TTFSE I Program – initiating discussion Scaling up TTFSE I – the corridor approach

19. Current status of preparation of TTFSE II Macedonia – appraisal stage, Board approval beginning of 2007 Bulgaria – Board approval December 2006 Croatia – Trade and Transport Integration Project for Port of Ploce, approved Romania, Turkey - brainstorming sessions Albania - indicated interest Serbia, Montenegro and Moldova – late start of TTFSE I TTFSE II current preparation status

20. Potential specific project objectives Improved regional transport infrastructure (TEN-T Corridors, border crossings, etc) Integrated and transparent border management at national and regional level Enhanced security without constraining the flow of goods Improved regional coordination and exchange of data Alignment of data requirements at regional level Stronger public-private sector cooperation TTFSE II current preparation status

21. TTFSE II Macedonia Infrastructure upgrade of Corridor X section BCP Tabanovce – Kumanovo Modernization of the Road Toll Collection System Upgrade of the Blace BCP Streamlining railway corridor X border procedures TTFSE II current preparation status

22. TTFSE II Bulgaria Improvement of physical capacity and working conditions at future EU external BCP's, focusing on the TEN-T corridors Construction of access road to Kapitan Andreevo BCP Harmonization of trade and transport data and streamlining of operational procedures between border crossing agencies Strengthen capacity of SME trade community for international trade TTFSE II current preparation status

23. Thank you. lsekerinska@worldbank.org ls86@law.georgetown.edu http:// www.ttfse.org http://www.seerecon.org/ttfse http:// www.worldbank.org/transport