PRESENTATION Shankar Shinde ... International North South Transport Corridor (INSTC)PRESENTATION Shankar

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  • International North South Transport Corridor (INSTC) PRESENTATION

    Shankar Shinde FEDERATION OF FREIGHT FORWARDERS’ ASSOCIATION IN INDIA

    COURTESY Ministry 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)

  • INSTC

  • BAKU

    AMIR ABAD

    INCHEH BOROON

    Bandar Abbas

    ASTARA

    ASTRAKHAN

    SARAKHS

    INSTC

    CIS

  • THE NEW ROUTE 1

  • ROUTE 2

    Amirabad

    Bandar Anzali

  • RELEVANT DISTANCES FOR THE FUTURE

    KANDLA

    MUMBAI

    CHABAHAR

  • 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

  • World mapping of Rail Gauges

  • North –South Corridor

    advantages

    Asian and European countries could make their cargo transportation through North-South Corridor with double speed compared to Suez channel,

    Carriage cost is 30% less, Transit 40% Shorter

    A few countries exist along the route therefore (less border crossings 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.

  • EURASIAN ECONOMIC UNION :

    RUSSIA, BELARUS, KAZAKHSTAN, ARMENIA, KYRGYZSTAN

  • 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

  • The Future Connectivity

  • Ministry of Commerce & Industry , Ministry of External Affairs, GOVERNMENT OF INDIA

    shankar.shinde@globalbm.com Mb : +91 9321473101

    mailto:Shankar.shinde@globalbm.com