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Presented by: Asil Gezen, Ph.D., President, TERA International Group, Inc.

Integrating Central Asia into the World Economy: The Role of Energy and Transport Infrastructure; Washington, DC: 22-23 October 2007. CENTRAL ASIA REGIONAL ECONOMIC COOPERATION (CAREC) TRANSPORT SECTOR STRATEGY. Presented by: Asil Gezen, Ph.D., President, TERA International Group, Inc.

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Presented by: Asil Gezen, Ph.D., President, TERA International Group, Inc.

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  1. Integrating Central Asia into the World Economy: The Role of Energy and Transport Infrastructure; Washington, DC: 22-23 October 2007 CENTRAL ASIA REGIONAL ECONOMIC COOPERATION (CAREC) TRANSPORT SECTOR STRATEGY Presented by: Asil Gezen, Ph.D., President, TERA International Group, Inc. Sterling, VA 20164, U.S.A.

  2. Good neighbors… Good partners… Good prospects… …through competitive regional transport. Member Multilateral Institutions: ADB, WB, EBRD, IMF, IsDB, UNDP

  3. Good neighbors, Good partners, working together for Good prospects….Recent Examples: Guzar-Kumkurgan (Termez) Railway UZB-AFG Official Opening: 24 Aug 2007 (CAREC 3b and 6a,b) Amu Derya (Pianj) Bridge AFG-TAJ Official Opening 26 Aug 2007 (CAREC 5 and 6c) 9 October 2007: Lianyungang-Moscow 5T Intermodal Train Service inaugurated by CRCTC (CAREC 1a) 25-day guaranteed transit time

  4. BACKGROUND • Established: 1997 • Main purpose: to promote economic development through cooperation, and thus accelerate economic growth and reduce poverty. • Secretariat Function Undertaken by: ADB • Priority Core Sectors: Transport, Energy, Trade Policy, and Trade Facilitation and Customs Cooperation. • Structure: Expert Coordination Committees, Senior Officials’ Meetings, Ministerial Conferences.

  5. Current Conditions • With the exception of a few bottlenecks and inadequate infrastructure, the national transport systems in CAREC members have been performing satisfactorily in providing reasonable service in domestic movements of goods and people. • Cross border and transit trades by road within and outside CAREC have been slowly increasing and are still relatively low ranging from less than 100 to 1,100 vehicles per day largely because of inadequate facilities and delays. Cross-border trade is largely dominated by rail between CAREC members where rail mode of transport is available. • Where infrastructure is adequate, management and low-cost technology improvements are needed to increase capacity, reduce costs/transit times, and increase competitiveness.

  6. ROAD TRAFFIC DENSITY IN THE 6 CAREC CORRIDORS

  7. RAIL TRAFFIC DENSITY IN THE 6 CAREC CORRIDORS

  8. The Opportunity Foreign Trade Economy 2018 $351 Billion 8.1% 9.1% 2018 $222 Billion 2005 $128 Billion 2005 $72 Billion

  9. THE CHALLENGE: BALANCED DEVELOPMENT FOR SUCCESSFUL CORRIDOR PERFORMANCE

  10. ProposedPolicy Statement • An overall framework for the regional transport strategy It is the policy of the Governments of CAREC countries to provide safe, dependable, effective, efficient, and fully integrated transport operations and infrastructure in order to support social and economic development in the CAREC region. This will be achieved by improving levels of service; minimizing costs; and improving infrastructure, management, and technology in a manner which is both economically and environmentally sustainable. In addition, the efficiency of the transport systems will beenhanced in a regional context to allow the CAREC region to exploit its unique geographical position.

  11. Overarching TSS Goals • Establish competitive transport corridors across the CAREC region • Facilitate efficient movement of goods and people across borders • Develop safe, people-friendly transport systems that are environmentally sustainable

  12. Major Transit Trade Directions • Europe – Middle East and South Asia • Europe – East Asia • Russian Federation - Middle East and South Asia • South Europe – East Asia • East Asia – Middle East and South Asia 2 1 3 4 5

  13. Key Corridors Selection Criteria • Current traffic volume • Prospect for promoting economic growth and future traffic • Ability to increase connectivity between major population & economic centers • Potential to reduce delays (gauge change, BCP) • Economic & financial sustainability of investments in infrastructure, technology and management Inclusion Rule: At least 2 CAREC countries

  14. PROPOSED SIX CAREC CORRIDORS

  15. CAREC Transport Corridor 1

  16. CAREC Transport Corridor 2

  17. CAREC Transport Corridor 3

  18. CAREC Transport Corridor 4

  19. CAREC Transport Corridor 5

  20. CAREC Transport Corridor 6

  21. TSS PROJECTS

  22. Next Steps TSCC Endorsement SOM/MC MC’s Adoption 3rd Workshop Final Reports 2008 3 Nov Jan Mar 2nd Qtr 3rd/4th Qtr

  23. For More Information Thank you ContactDr. Asil GezenAdvisor, CAREC TSCC Secretariat TSS Project Team Leader/President TERA International Group, Inc.E-mail:agezen@teraint.comPhone: 1-703-406-1550Fax: 1-703-406-1550

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