Transcript Global Facilitation Partnership for Transportation and Trade

Trade and Transport Facilitation: From
Diagnostic to Implementation
Our CIS7+2 and Southeast Europe
Experience
Gérald Ollivier
World Bank
May 2003
Removing trade
barriers to
international
transport
Transport &
Telecom reforms:
De-monopolization,
Deregulation,
Privatization
Reducing long
waiting times at
borders and
during
clearance
What is Trade and Transport Facilitation?
Reforming customs and
other border agencies by
introducing modern MIS,
new procedures and new
Human Resource
Management, better interagency and cross-border
cooperation
Increasing
availability of high
quality training in
logistics, transport,
customs brokerage,
telecom and IT
Why TTF matters?
 Economic growth through SMEs
 Trade and TTF : growth drivers
 In 90s less globalized GDP –1%; more globalized +5%
 70% in variation in per capita income explained by market
proximity (Redding/Venable)
 Frequently Customs tariffs < transport cost
 Logistics drive firm/country competitiveness
 Need for integrated transport infrastructure and
services, in cooperation with border agencies to
deliver predictably (day cost 0.8% of value)
Diagnostic Tools
 Diagnostic Tools and Recommendations for actions
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UNECE/UNCTAD Recommendations
Trade and Transport Facilitation Toolkit (GFP)
WCO Diagnostic Study Process
Customs Reform (WCO, World Bank Handbook..)
ICC Customs Guidelines, Explanatory Notes, Integrity
toolkit
 Performance Measurements (TTFSE, WCO, ICC)
-> A multi-disciplinary/cross border approach is
needed
Port 2
Poti Port and Customs
Inland transport
Inland transport
Preparation
Cumulative cost in USD
TTF Issues in CIS 7+2
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Container ship from
Poti to N. Europe
0
5
10
15
20
25
Cumulative time in days
 9 Countries/similar TTF constraints
 Distant markets/few commodities
 High transport costs (up to 50% of goods value)
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Small fragmented transport market (not in KZ and TK)
Mostly landlocked countries
Insufficient market access rights
Under-developed logistics/multi-modal transport
 Significant informal costs
 Frequent facilitation payments (up to 50% of transport
cost)
 Unclear and changing requirements/procedures
-> About $1 billion of potential savings (UN)
30
35
Recommended Actions
 Prepare National TTF Reform Plan
TIR for transit/remove escort of regular cargo
Exchange transit/market access rights for transport
Harmonize transit fees
Harmonize/simplify border procedures (rail/road)
Measure performance
Strengthen public private dialogue (PRO
Committees/TRACECA TF WG)
 Publish under a common platform rules/procedures
 Participate in ECMT multilateral road quota system (CAR)
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 Share widely this Plan to secure support
(nationally/regionally/donors/public/private)
Diagnostic Lessons
 Duplication riskCreating an open coordination
platform (potentially through new GFP website)
 Wide range of issues  mixing local and
international experts
 Identification of key driving forces
(public/private)
 Partial data availability
 Relatively, the easiest part of the TTF process
Caucasus : Formulating Action Plan
 Preparation of three policy notes (action plan)
 Inclusion of these plans into broader WB products
(Trade Diagnostic Studies with comprehensive
action plans, SAC)
 Proposed Georgian Transit Strategy
 Active cooperation with other players (TRACECA..)
 Performance measurements
 Creation of Public-Private Committees
Action Plan Formulation: Lessons
 Need for coordination to avoid contradictory
priorities (national/regional/donors)
 Sustained dialogue (workshops/meeting) to tailor
solutions to local evolving realities
 Building up public-private dialogue takes time and
local presence/momentum (TRACECA)
 Eager private sector : the need for TTF is there
 While formulating an implementation plan is
complex, implementation is the difficult part
TTFSE: Implementation Example
Trade and Transport Facilitation in Southeast Europe
 Vision and political commitment (EU)
 Massive external support/good coordination
 8 countries, US$123 million (TA, IT, Civil works)
 Measuring results: Manual and database
 Focused approach: pilot sites
 Increased transparency (www.ttfse.org)
 Local/international Training (www.gfp-dli.org)
 Active PRO Committees involvement
 Peer pressure (Regional Steering Committee)
Implementation Issues
 Resistance to introduce selectivity
 Lack of interagency cooperation
 Excessive turnover in key staff
 Need for comprehensive approach to
corruption
 Multisectoral approach a must
-> Yet significant results achieved over two
years
Bulgaria, Plovdiv
Clearance Times
BOSNIA AND HERZEGOVINA FED. - GRUDE
CLEARANCE TIMES
180
350
160
300
140
120
minutes
200
150
100
80
60
40
100
20
50
Sep 02
Aug 02
Jul 02
Jun 02
May 02
Apr 02
Mar 02
Feb 02
Sep 01
Jul 01
Jun 01
May 01
0
0
Oct 00
Nov 00
Jan 01
Feb 01
Mar 01
Apr 01
May 01
Jun 01
Jul 01
Aug 01
Sep 01
Oct 01
Nov 01
Dec 01
Jan 02
Feb 02
Mar 02
Apr 02
May 02
Jun 02
Jul 02
Clearance actual time
Target time
Linear (Clearance actual time )
Clearance actual time (minutes)
Target time
Linear (Clearance actual time (minutes))
CROATIA, JANKOM IR
CLEARANCE TIM ES
400
350
300
250
200
150
100
50
Clearance actual tim e (m inutes )
Target tim e
Linear (Clearance actual tim e (m inutes ))
Sep 02
Jul 02
May 02
Mar 02
Jan 02
Nov 01
Sep 01
Jun 01
Mar 01
0
Jan 01
minutes
minutes
250
Country
Pilot site
WT 2001
WT 2002
Reduction
(%)
Final
target
Albania
Tirana
4.5
hours
1.7
hours
62%
1 hour
Bulgaria
Plovdiv
3.7
hours
1.5
hours
60%
< 1 hour
Croatia
Jankomir
5.3
hours
3.0
hours
43%
< 1 hour
Croatia
Stara
Gradiska
3.3
hours
0.4 hour
88%
< 1 hour
Romania
Bacau
3.0
hours
1.4
hours
53%
1 hour
Romania
Constanta
4.3
hours
3.0
hours
31%
2 hours
4.0
hours
1.8
hours
Average:
Conclusions
 Political commitment essential
 Coordination around a clear action plan
 Use of existing tools
 Focus on manageable, progressive solutions
 Get private sector involved
 Cooperate globally on training (www.gfpdli.org )
Thank You !
 Gérald Ollivier ([email protected])
 Resources
 GFP: http://wbln0018.worldbank.org/twu/gfp.nsf
 Complete TTFSE progress report available at
www.seerecon.org/ttfse
 Distance learning: www.gfp-dli.org
 Europe and Central Asia Transport In the WB
(CIS 7+2 report):
http://www.worldbank.org/ECA/Transport