InternatIonal north South tranSport CorrIdor (InStC) NORTH SOUTH TRANSPORT CORRIDOR ... with optimal transit/cost for the Indian Exporters/Importers. The Member Countries signatory

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  • InternatIonal north South tranSport CorrIdor (InStC)

    dry run report 2014

    (Apex Body of Custom Brokers' Associations In India )

    Federation oF Freight Forwarders' associations in india

    (FFFai)

    lR;eso t;rsgoVernMent oF india

    MInIStry oF CoMMerCe & InduStry

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    TABLE OF CONTENTS1. Executive Summary

    2. Introduction - Terms of Reference for Study 2.1 International North South Transport Corridor (INSTC) 2.2 Main objective of the agreement 2.3 Terms of reference given by Ministry of Commerce for the purpose of Study A Route 1 : Nhava Sheva/India Bandar Abbas /IRAN - By Sea Astara/Iran - by Road Astara/Azerbaijan-by Road Baku /Azerbaijan- by Road B Route 2 : Nhava Sheva/India Bandar Abbas/ IRAN - By Sea Amirabad /Iran-by Road Astrakhan/ Russia- by Sea 2.4 Methodology Adopted 1. Physical Shipment 2. Point to point Physical meetings and study 3. Photography 4. Videography 5. Meetings 6. Conferences

    3. Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC 3.1 A Route 1 : Nhava Sheva/India to Baku/Azerbaijan

    Nhava Sheva/India Bandar Abbas - By Sea Bandar Abbas /Iran Astara / Iran - By Road Astara/Iran Astara /Azerbaijan - by Road - Border crossing Astara ( Azerbaijan Border) Baku (ICD) Azerbaijan - By Road) with cargo

    (terminate container) 3.1.1 Summary of activity, distance and cost 3.1.2 At the port of origin viz. Nhava Sheva (Mumbai) 3.1.3 At the port of transshipment viz. Bandar Abbas 3.1.4 During the movement by road from Bandar Abbas to Astra border crossing 3.1.5 At International cross border at Astara (Azerbaijan) 3.1.6 At port of destination viz. Baku ICD (Azerbaijan) 3.1.7 Map of road route from Bandar Abbas to Baku (Azerbaijan)

    3.2 B Route 2 : Nhava Sheva/India To Astrakhan/Russia Nhava Sheva --> Bandar Abbas (By Sea) Bandar Abbas --> Amirabad (Iran) by Road Amirabad --> Astrakhan (Russia) by Sea with cargo (terminate container)

    3.2.1 Summary of activity, distance and cost

  • 3.2.2 At the port of origin viz. Nhava Sheva (Mumbai) 3.2.3 At the port of trans-shipment viz. Bandar Abbas (Iran) 3.2.4 During the movement by road from Bandar Abbas to Amirabad (Iran) 3.2.5 During movement by sea from Amirabad to Astrakhan (Russia)

    4. Micro Analysis of Resources, Potential, Availability and Limitation of Ports /Infrastructure 4.1 INDIA: A Nhava Sheva / Mumbai:

    1. Terminals and facilities2. CFSs3. Agents and Freight forwarders4. Lines and Operators5. THC6. Observation / Comments on cost reduction / Way ahead

    4.2 IRAN: A Bandar Abbas:

    1. Port Terminals and facilities2. Railway3. Agency charges4. Payment issues5. Observation / Comments on cost reduction / Way ahead

    B Amirabad:1. Terminals and facilities2. Lines and Operators3. ICDs and CFSs4. Agents5. Observation/ comments and way ahead

    C. Bandar Anzali Port1. Terminals and facilities2. Lines and Operators3. ICDs and CFSs4. Agents5. Observation/ comments and way ahead

    4.3 RUSSIA A Astrakhan:

    1. Terminals and facilities2. Lines and operators3. ICDs and CFSs4. Olya Port5. Traders

    TABLE OF CONTENTS

  • 4.4 Azerbaijan A Baku Port

    1. Terminals and facilities

    4.5 Details of Port Infrastructure

    5. OPERATORS PERSPECTIVE IRAN:

    A. Meeting with the Port Authorities(DG of PMO)B. I.R. of Iran Road Maintenance & Transport Organization C. Meeting with Shipping AgentsD. Meeting with Inter RailE. Meeting with the Shipping AssociationF. Meeting with ITCA Office BearersG. Meeting with Railway AuthoritiesH. Meeting with Customs ManagerI. Meeting in Amirabad PortJ. Meeting at Astrakhan /RussiaK. Meeting at Moscow /Russia

    6. CUSTOMERs PERSPECTIVE A. Meeting with the Chamber of Commerce.B. Meetings with stake holders at the Indian Embassy in Tehran.C. Meeting with the Russian Embassy in Tehran.D. Meeting with the Kazakhstan Embassy in Tehran.E. Meeting with the Turkmenistan Embassy in Tehran.

    7. THE WAY FORWARD FOR INSTC A. Filling in the gaps on documentation issuesB. Establishing single Operator / Agency network in all 3 Region C. Identifying and Linking the Resources for Movement D. Restructuring the cost structure E. Promoting the trade at Astrakhan and shifting their base thru Moscow from St Petersburg to

    AstrakhanF. Linking the ECO

    8. APPENDICES Hard Copies of Brochures

    1. Copies of Shipment documents 5 pages (including Transhipment )2. Port of Amirabad.3. ECO- Latest Project Report.4. Port of Olya.5. File made by Indian Mission in Tehran.

    TABLE OF CONTENTS

  • 6. International transport and Customs Agents Association-List.7. Federal Agency for Maritime and River Transport.8. Persian Gulf International Transport Co.9. Anzali Port Maritime Authority.10. Turkish State Railway ECO.11. Laws of Transit.12. INSTC Agreement and minutes of all meetings till 2013.13. IRAN Railways.14. Railway Transportation Co. Kazakhstan.15. INSTC Brochure by IRAN Railways.

    Hard Copies of All contact details.

    1. MOSCOW Inland container Depot Brochure.2. New Article in IRAN dated 3.08.2014.3. Olya Port Brief.4. Amirabad Port Transit Cargo tariff and service tariff.5. Chabahar Port Data.6. IRAN Railway Freights.7. Kazakhstan Trade Data.8. Turkmenistan Trade Data.9. Maps.10. Indias Trade data of INSTC.11. Irans Trade data related to INSTC.12. Traffic Data at 3 ports of IRAN.13. List of Iranian Co.s that attended conference held at Indian Embassy in Tehran.14. Compilation of Important mails received during the visit.15. Soft Copies: 16. Audio Recordings17. Photos18. Maps19. Videos20. Various Tariff and statistics

    ThanksAll Countries Participants for Co-operation

    TABLE OF CONTENTS

  • 1 EXECUTIVE SUMMARY

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    EXECUTIVE SUMMARY1INTERNATIONAL NORTH SOUTH TRANSPORT CORRIDOR (INSTC)Dry Run Study Conducted during August 2014 by Mr. Shankar Shinde/ Mr. Sohel Kazani

    It was pleasure to participate as Indian delegates on behalf of Ministry of Commerce, Govt. Of India for the project on INSTC(International North South Transport Corridor) entrusted to our Federation of Freight Forwarders Association of India (FFFAI).

    The study included the detailing report on the issues faced by the Importers / Exporters /Logistics Players and other stake hold-ers involved in the movement of cargo to Russia / CIS and possibility of diverting it on the INSTC route.

    The proposed INSTC route via Bandar Abbas in Iran to Russia and CIS Destination in transit through IRAN, could be the best route with optimal transit/cost for the Indian Exporters/Importers.

    The Member Countries signatory to the INSTC convention :-INDIA THE ISLAMIC REPUBLIC OF IRAN THE BELARUS REPUBLIC THE KAZAKHSTAN REPUBLIC THE KIRGIZSTAN

    REPUBLIC THE REPUBLIC OF ARMENIA THE REPUBLIC OF AZERBAIJAN THE REPUBLIC OF BULGARIA THE RUSSIAN FEDERATION THE SULTANATE OF OMAN THE TAJIKISTAN REPUBLIC THE TURKEY REPUBLIC UKRAINE.

    It was proposed in 5th Meeting of Coordination Council 24-25 June, 2013; Baku, Azerbaijan that the FFFAI will conduct the dry run study on the above route to envisage the issues faced by the trade with two containers on two different routes.

    The following Two routes were decided with physical cargo container shipment

    Route 1 : Nhava Sheva, India to Baku , Azerbaijan

    Nhava Sheva Bandar Abbas By Sea

    Bandar Abbas Baku - By Road

    Route 2: Nhava Sheva , India to Astrakhan , Russia

    Nhava Sheva Bandar Abbas By Sea

    Bandar Abbas Amirabad By Rail / Road

    Amirabad to Astrakhan By Caspian Sea

    Following delegates from FFFAI -India conducted the INSTC dry Run Study

    1. Sh. Shankar Shinde,Vice Chairman to study Route 1 2. Sh.Sohel Kazani , Executive Committee Member to study Route 2

    The member states of International North-South Transport Corridor Project interested in North-South transport :-

    1. Recognizing the potential for efficient and seamless North-South transport caused by economic globalization and by ever increasing trade within the Euro Asia area

    2. Noting the progress of important infrastructure projects along North-South transport links

    3. Noting also the continuous growth of containerized transport between North and South where railways, land trans port and seaports are called upon to take a significant role,

    4. Convinced that long distance North-South transport of goods may significantly increase, if fast, reliable and seamless intermodal transport services are developed along North-South links,

    5. Aware that globalization, transport reform and opening of transport markets provide new options to reach out to transcontinental traffic and to turn North-South transport market opportunities into transport business,

    Mr. Shankar Shinde, Vice Chairman, FFFAI Mr. Sohel Kazani, Executive Committee Member, FFFAI

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    6. Convinced that in order to make rapid progress towards that goal, Governments, with the assistance of international organizations, should cooperate and commit to a set of common objectives, legal principles and operational rules to provide support to transport,

    7. Aware that North-South transport involves and transits many countries, all members of the International North-South Transport Corridor, with different national transport systems and structures as well as different legal regimes governing international transport, i.e.

    8. Bearing in mind the progress achieved by the all transport modes in harmonizing and simplifying their legal framework, making it imperative to ensure comparable business conditions among all modes of transport,

    9. Conscious that different legal regimes along North-South