DHL Global Forwarding TURKEY - unescap.org · PUBLIC 2 DHL RAIL Speed Advantage Cost Advantage Environmental Advantage Rail Freight can reach much faster door-door transit times than

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1DHL Global Forwarding China – VAS Overview | January 2017

DHL Global Forwarding

TURKEY

Zafer Engin

Head of Value Added Services, DHL Global Forwarding Greater China

/// , 2018, ///

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DHL RAIL

Speed Advantage

Cost Advantage

Environmental Advantage

Rail Freight can reach much

faster door-door transit times

than Ocean Freight and

increase speed to market.

Rail Freight is considerably

cheaper compared to Air

Freight.

Rail Freight Emissions are similar to

Ocean Freight Emissions and have a

significant ecological advantage

compared to Air Freight.

LEAD TIME

ADVANTAGE

COST

TRANSIT TIME

RAIL?

WHY

https://thenounproject.com/term/speedometer/22555

https://thenounproject.com/term/euro/147985

https://thenounproject.com/term/tree/24234

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WHAT IS BELT AND ROAD INITIATIVE (BRI)?

“Belt and Road” is an initiative by the Chinese government aimed at reviving and extending

the historic Silk Road between China, Europe and the Middle East.

“Belt” refers to the Silk Road

Economic Belt, which passes overland

from China through Central Asia to

Continental Europe.

“Road” refers to the Maritime Silk

Road, an oceanic route connecting

China to Europe and South-East Asia

by way of ports in India and Africa.

Silk Road Economic Belt

Maritime Silk Road

China

South

China Sea

South PacificIndian Ocean

EuropeEurope

Russia

Central Asia

Southeast

Asia

South Asia

West Asia

Persian Gulf

Mediterranean Sea

DHL Global Forwarding | April 2018

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WHY DOES IT MATTER


A strong facilitator to enhance

economy and culture communication

between Asia, Africa and Western

regions136

billion

USD1

investment

by China

10,000Scholarships yearly

Multidimensionalinfrastructure network

Over $3

trilliontrade

volume(2014-2016)

Cooperation with

over 40 countries &

organizations

of the global population

of the World output

Connectivity

4.4 billion

21 trillion

50 countries

Additional

Development

1. http://opinion.jrj.com.cn/2017/06/16070522617202.shtml

https://thenounproject.com/term/businessmen/48054

https://thenounproject.com/term/degree/589159

https://thenounproject.com/term/travel/641306

http://opinion.jrj.com.cn/2017/06/16070522617202.shtml

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DHL EXISITNG SERVICE ALONG SILK ROAD ECONOMIC BELT

HONG KONG

HONG KONG


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CHINA PLAN - CONSEQUENT IMPLEMENTATION

DHL Global Forwarding China – China, AP, CIS trip | April 2018

Chengdu 22%

Chongqing 18%

Zhengzhou 13%

Other cities 13%

Wuhan 11%

Harbin5%

Changsha 4%

Shenyang4%

Yiwu4%

Suzhou3%

Yingkou3%

Top 10 China Hubs with largest volume in 2017

DHL

market share*

10%

*Laden containers

545

1182

2397

2015 2016 2017

Westbound number of blocktrains

247

540

1276

2015 2016 2017

Eastbound number of blocktrains Block train = 44 to 50 FEU

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CN – EU RAIL MARKET : CORRIDOR & BORDER UTILIZATION

DHL Global Forwarding China – China, AP, CIS trip | April 2018

CN Border Westbound

Alashankou 52.5%

Manzhouli 32.6%

Erenhot 13.8%

Khorgos 1.1%

CN Border Eastbound

Alashankou 57.6%

Manzhouli 25.8%

Erenhot 16.5%

Khorgos 0.2%

In 2017 80% of WB traffic and 90% of EB traffic was handled

by Dostyk/Alashankou border pass. Due to increasing volume

presurre, other corridors were explored in 2017 to avoid

congestions and delays.

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CHINA PLAN 2020


5,000 cargo trains*Running from China to Europe annually by 2020**

via three passageways: North, Middle & South

43 transport hubs There are over 30 hubs now, 10 more will be opened by 2020

At least one connection with Europe per hub

6 Hours – target for border crossing stopFor customs & inspection on Chinese side by 2020

>13 Train departures per day In westbound direction

* Source: National Development and Reform Commission, http://www.ndrc.gov.cn/zcfb/zcfbghwb/201610/P020161017547345656182.pdf

** There is no target for Eastbound traffic

http://www.ndrc.gov.cn/zcfb/zcfbghwb/201610/P020161017547345656182.pdf

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Trans-Caspian Corridor

Definition:

Via Western China and Kazakhstan to

Caspian Sea; via Caucasus to Black Sea,

and to Eastern Europe

Or via Turkey to Southern & Central Europe

Tariff Lead Time

Coverage

Flexibility Reliability

Customs

Status

Not ready

Under construction

Servicing place

CIS, Caucasus,

Turkey, Europe



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Southern Corridor

Definition:

Via Western China to Kazakhstan,

Uzbekistan & Trukmenistan to Iran

From Iran via Caucasus to Turkey, and to

Southern & Central Europe

Tariff Lead Time

Coverage

Flexibility Reliability

Customs

Status

Not ready

Under construction

Servicing place

CIS, Iran, Turkey,

Europe



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COMPARISON

Trans-

Caspian

Corridor

Southern

Corridor

PROS CONS

• Alternative to Russian corridors •

Lesser low termperature impact during

winter (for electronic goods, for example)

• Access to Caspain Sea, Caucasus, and

Black Sea area

• No regular operation • Irregular Wagon

ferry operation on Caspian Sea • Bad

weather impact on Caspian Sea crossing

(delays)

• Customs issues

• Alternative to Russian corridors •

Lesser low termperature impact during

winter (for electronic goods, for example)

• Access to Caspain Sea, Caucasus,

Black Sea area, and Iran with Persian

Bay • No dependency for Caspian Ferry

crossing

• No regular operational structure • Trial

trains on this lane finished in Iran only •

Political status impact • Non unify

Customs issues


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BASIC PROCESS AND TIMELINE FOR TRECECA/SOUTH CORRIDOR

China TurkeyKazakhstan / Azerbaijan / Georgia

Transit Time Sample (Westbound) – A Classical BenchmarkCountry Location Activity -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

China Cargo booking cut-off

China LianyungangCargo cut-off and export

clearance

China Lianyungang Departure

Rail Transit

China Alashankou Customs transit

Kazakhstan Dostyk Gauge change

Rail Transit

Kazakhstan Aktau Ferry loading

Caspian Sea Transit

Azerbaijan Baku Ferry unloading

Rail Transit

Georgia Poti Rail unloading to truck

Truck Transit

Turkey Manisa Truck unloading

Indicative Transit Time SimulationWestbound: Lianyungang, China – Istanbul Turkey

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CHINA TO TURKEY – TRAIN OVERVIEW


Train ATD ATA LT Origin Destination Discrepancies

LYG1 11/29/2015 12/17/2015 19 Lianyungang Manisa Total : 6.5 days delay

CTU1 7/30/2016 8/16/2016 17 Chengdu Manisa Total : 4.5 days delay

CTU2 8/20/2016 9/5/2016 16 Chengdu Manisa Total : 2 days delay

LYG2 5/30/2017 6/28/2017 29 Lianyungang Istanbul Total : 11 days delay

LYG3 6/14/2017 7/5/2017 21 Lianyungang IstanbulTotal : 3 days delay




LYG7 8/18/2017 9/12/2017 26 Lianyungang IstanbulTotal : 7 days delay

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IRREGULARITIES - SUMMARY


Irregularity Trains

affected% Days Avg (days) Root cause Next steps

China slow traffic

(slow steam)1 of 9 11% 2 2 Heavy traffic, peak season in China --

Khorgos border 6 of 9 66% 1 to 4 2.3 Slow border operation Dialogue with Khorgos GTWY

KZ railway slow traffic 3 of 9 33% 1 1 Heavy traffic, peak season Dialogue with KTZE

Aktau port operation 1 of 9 11% 2 2 slow operation Dialogue with KTZE

Caspian Sea weather 2 of 9 22% 2 to 4 3 Sea storm not controlable

Caspian Sea ferry 3 of 9 33% 1 1 Ferry delay due to slow speed ferry fleet upgrade

Baku operation 2 of 9 22% 1 to 2 1.5 slow operation Dialogue with AZY

Poti truck arrangment 2 of 9 22% 1.5 to 9 5.25 Truck arrangement delay Avoid Poti, use railway to connect to TR

Sarp border queue 1 of 9 11% 0.5 0.5 Border queue Dialogue with customs

Average T/T 22 days

Minimum T/T 16 days

Maximum T/T 29 days

Average Delay 5.4 days

Minimum delay 2 days

Maximum delay 11 days

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CRITICAL ELEMETS FOR DEVELOPING TRANS CASPIAN ROUTE

Efficiency of clearance process

▪ Improve border facilities

▪ Simplify and shorten border crossing procedure

▪ Improve Trade Security

▪ Computerized and automated clearance system

▪ Standardize Tbilisi – Kars Rail Operation

▪ Min 800km to 1200 km / daily rail performance guarantee

▪ Upgrade existing transport link

▪ Small size block train support – (20X40HC level)

▪ Develop Logistic Hubs & hinterland connections

▪ Establish dry ports and inland clearance facilitiesQuality of Logistics Services▪ Encourage integration of logistics services for trade and

distribution

▪ Allow new technology implementation for tracing and

security

▪ Introduce modern supply chain management techniques

▪ Create incentives to upgrade transport fleet

▪ Introduce online system for real time clearance monitoring

▪ Decrease operational handling times at terminals

▪ Decrease waiting times in border crossing

▪ Create schedule service structure between point to point

Transport related subjects


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BENEFITS FOR SOCIETY

▪ New tradelane development

▪ Better connection between the nations.

▪ Faster and/or cheaper delivery of goods in demand

▪ Logistics sector development in new areas

▪ New hub creation opportunities along the routes ( Khorghos / Turkmenbasi , Baku, Istanbul )

▪ Increase political interest in cross-nation multilateral cooperation


More prosperity

Better life for people

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18DHL Global Forwarding China – VAS Overview | January 2017

THANK YOU

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MAJOR BENEFITS FOR TURKIYE

▪ 3rd Bosporus Bridge

▪ Marmaray Project

▪ TCDD Inland Logistic terminals

Support Turkey Critical Projects

▪ Increase Import Logistic Time Cycle which bring more productivity to Turkish Export bcz china import

goods are mainly using export production in Turkey

▪ Support Central Asia Development

▪ Increase Export from TR to CIS

▪ Silk Road Initiative supported by China, Kazak, Azerbaijan, Georgia which brings these area more

wealth and prosperity

Other Benefits


Documents

DHL Global Forwarding TURKEY - unescap.org · PUBLIC 2 DHL RAIL Speed Advantage Cost Advantage Environmental Advantage Rail Freight can reach much faster door-door transit times than