BAKU, Azerbaijan, September 28. A typical
shipment along the Middle Corridor between the points of origin and
destination entails undergoing customs transit procedures ten
times, with each requiring a separate customs transit
declaration.
This was stated in the World Bank report “Integration:
World-Class Trade Logistics along the Trans-Caspian Transport
Corridor.”
"Furthermore, the transport operation requires the processing of
five documents confirming the contract of carriage (consignment
notes) as well as two maritime bills of lading. Depending on the
specific shipment, additional documents may be required, including
truck transit permits and proof of guarantees for customs duty
payments. This process is redundant and inefficient, leading to
longer and less predictable delivery times and driving up trade
costs.
Drawing on international experience, including practices in
other segments of Eurasian logistics, the Middle Corridor could
transform the current model for organizing transport and customs
transit procedures by consolidating these various documents into a
single document or a unified T3 data record.
The T3 document can serve not only to simplify customs transit
and facilitate transport service contracts but also as a negotiable
instrument. This would enable shippers to use it for trade finance
purposes or to sell goods while they are in transit," the bank
said.
The World Bank pointed out that documentation is just one of two
key aspects of service delivery.
"The second aspect concerns how transport services, as well as
cargo handling and distribution services are offered, priced,
delivered, and regulated.
To improve service delivery efficiency amidst the fragmentation
inherent in a system involving multiple railway operators and
shipping lines across the Caspian Sea, the Trans-Caspian
International Transport Route (TITR) could integrate operations
under a single joint venture, specifically, an asset-light operator
managing containerized rail and trans-Caspian maritime transport.
Ideally, this operator would be owned by the leading state-owned
railway and shipping companies, which hold the actual transport
assets, from Azerbaijan, Georgia, Kazakhstan, and Türkiye. This
would streamline cargo transfers between carriers and intermodal
coordination, while also optimizing tariffs, routes, contingency
management, cargo dispatch, and customer service," the World Bank
said.
The World Bank noted the urgent need to transform the
organizational model for transport and customs transit procedures
along the Middle Corridor and to achieve closer integration of
transport operations.
"Therefore, the countries through which the corridor passes, as
well as destination countries, must take measures to address this
in the near term," the bank explained.
The bank pointed out, however, that international experience
suggests implementing such measures will likely take a long time -
potentially spanning several years - and will require a process
involving pilot projects, adjustments, and the gradual refinement
of approaches.
