Islamic Republic of AfghanistanMinistry of Finance & Afghanistan Railway Authority

20 – 21 December

2017

Astana ( Kazakhstan )

Opportunities and Challenges:Trade & Transit Facilitation Measures

in Afghanistan

History of Railway in Afghanistan

➢ The First Afghanistan had been Constructed in 1922 between Darul Aman and Kabul city with 7Km length.

➢ The comprehensive feasibility study of Kabul – Kandahar – Herat and connecting to Iran border had been conducted in 1975 by Sufrail company.

Importance of Railway Expansion in Afghanistan

➢ Afghanistan is a land bridge between Central Asia and South Asiaand share borders with 6 countries.

➢ Both regions have a vast developed railway networks. Only Afghanistan lacks Railway infrastructure

➢Development of Railway Infrastructure in Afghanistan would connect these two important Regions

➢Plans for extension of Pakistan Railway Network into Afghanistan from Torkham and Spin Boldak➢Development of transport infrastructure in Afghanistan is not only important for its own economy, but also for the neighboring countries as well.

Legal Framework for Railway Operations▪Afghanistan Railway Law provides for the following :

- Setting up a Railway Authority and defining its powers and authorities.

- The Law permits private sector to build railway tracks, operate and maintain railway infrastructure.

- The law also provide for licensing requirements and competent authorities for issuance

- The legislation also includes provisions for safety

Afghanistan National Railway Plan(ANRP)

- The one most important document being produced by ARA is the Afghanistan National Railway Plan (ANRP).

- ANRP is based on key analysis and documents such as:

➢ The Terrain and Freight Corridor analysis

➢ The Commercial Market analysis

➢ Legal & Regulatory Framework

Afghanistan Railway Border Crossing Information

NeighborCountry

Border Crossing PointExtension of

RailwayLength

Uzbekistan Hairatan (Balkh) Extended75 Km Main line63 Km loop line

TajikistanSherkhan Bandar (Kunduz) Plan Plan

Bishkent (Balkh) Plan50 Km Main line10 Km loop line

TurkmenistanAqina (Faryab) Extended

5 Km Main line10 Km loop line

Torghundi (Herat) Extended3 Km Main line30 Km loop line

IranChah-e-Sorkh (Herat)

Under Construction

62 Km Main line20 Km loop line

Zaranj (Nimroz) Plan Plan

PakistanTorkham (Nangarhar)

Plan PlanSpin Boldak (Kandahar)

China Wakhan (Badakhshan) Plan Plan

▪ Afghanistan – Turkmenistan:

- Establishment of new railway crossing border station in Aqina(Afghanistan) and Imam Nazar(Turkmenistan) in NOV.2016

-Signing of two Railway agreements on rule and regulation of railway communication across border between two countries.

- Overhaul of the 13Km Railway lines at Turgundi cross border Railway station

- Construction of 10 KM new railway in Aqina cross border Railway station will be started soon.

Bilateral

Recent Development in Railway Sector➢ Drafting of Law for governing railway affairs and waiting for ratification by the Cabinet

➢ Establishment of Afghanistan Railway Authority

➢ Completion of 610Km Feasibility Study of Railway projects and Procurement of 680Km in 2017.

▪ Afghanistan – Uzbekistan: - Signing of two Railway agreements on rule and regulation of

railway communication across border between two countries.- Signing of Hairatan – Mazar Sharif O & M contract.- Signing of Trade, Transit and custom facility agreement.- Signing Cooperation agreement on Railway Development.- Signing of Repairing & Maintenance contract for cross boarder

bridge in Hairatan between two countries.

▪ Afghanistan – Iran:- Completion of construction 31 KM railway inside Afghanistan (Up to Ghoryan). The project is part of 5 Nations Railway Corridor.- 31 KM of railway is under construction.- Finalization of three railway agreements on rule and regulation of railway communication across border between two countries.- procurement of detailed design & construction of phase 4 of Khaf– Herat Railway(43Km).

Continue …

▪ Afghanistan – Tajikistan:

- Finalization of agreement on construction of new railway connection between two countries.

▪ Chabahar Trade & Transit Agreement

Continue ….

Multilateral

- Signing of Lapis Lazuli Trade & Transit Agreement between Five countries( Afghanistan, Turkmenistan, Azerbaijan, Georgia & Turkey- This agreement provides for multimodal transports including railway - Members countries commitments to simplify customs and transit procedures

- Signing of Chabahar Trade & TransitAgreement between Afghanistan, Iran & India

▪ Lapis Lazuli Trade & Transit Agreement.

Afghanistan 10 Years Railway Development Plan

SN Railway ProjectRailway

Length

(KM)

Current Status

Prefeasibility

StudyFeasibility Study

Detail Design

& Construction

Khaf – Herat 3rd Section 62 Completed Completed Ongoing

1 Khaf – Herat, 4th Section, Phase-1 43 Completed Completed Under procurement

Khaf – Herat, 4th Section, Phase-2 44 Completed CompletedUnder Negotiation for

funding

2 Sherkhan Bandar – Kunduz - Mazar-e-Sharif 187 Completed Completed Plan

3 Mazar-e-Sharif – Sheberghan – Andkhoy 220 Completed Completed Plan

4 Sheberghan – Maimana – Qala-e-Naw – Kushk 472 Completed Ongoing Plan

5 Bishkent – Kaldar - Jairatan 50 Completed Plan Under Negotiation

6 Torghundi – Herat Airport 173 Completed Completed Plan

7 Chaman – Spin Boldak – Kandahar 1st Phase 11.5 Completed Completed Plan

8 Chaman – Spin Boldak – Kandahar 2nd Phase 96 Completed Completed Plan

9 Peshawar – Torkham – Jalalabad 75 Completed Ongoing Plan

11 Farah - Zaranj - Lashkargah 420 Completed Ongoing Plan

14 Herat - Farah 216 Completed Completed Plan

15 Lashkargah – Kandahar 140 Completed Completed Plan

Need for harmonization of rules in Railway

➢ Unlike other sectors such as Roads and Aviation, Railway Sector suffers from lack of Harmonization

➢ Difference in hard infrastructures- CIS Gauge, Standard Gauge, and British Gauge

➢ Soft Infrastructure: No uniform rules for railway operations and border crossing

➢ Countries have different rules and regulations for customs clearance, transit, and border crossings

Afghanistan Customs Department 5-Year Strategic Plan (2018-2022)

Along with automation, TFA implementation is an important component of the Plan

TFA Implementation in 2018

Challenges: Expansion of Railway in Afghanistan

➢ Afghanistan does not have the required resources to finance the construction of the national railway on its own

➢ Lack of skilled staff to manage and maintain railway equipment and infrastructure

➢ Security and political instability that may hamper development of the network

➢ Lack of standard, terminals, warehouses, staff and rolling stock

➢No Institutional or Technological experience in railway operation.

➢Breaking gauge in borders (CIS standards 1520mm)

Implementation of WTO FacilitationAfghanistan formally acceded to WTO in 2016

Afghanistan is also signatory to WTO Trade Facilitation Agreement that will come into force next year

TFA provides for:

▪ common transit rules,

border agency cooperation that includes joint control, alignment of procedures, development and sharing of common facilities , and alignment of working days and hours

▪ use of international standards,

▪ customs cooperation including exchange of information, verification

▪ Freedom of transit

▪ Border agency cooperation

▪ Use of customs to custom cooperation and joint costumes

▪ Exchange information

Some CIS countries and Iran are not member of WTO and may not be obligated to implement TFA

THANK YOU