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Transit Corridors:

A Review of Operational and

Facilitation Issues

Jean Francois ArvisJohn Arnold

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Corridor Analysis

Derived Demand

Examine Trade Flows

Quality of Services Measure End-to-End Performance

Multimodal

Routes Rather Than Links

Regional Integration

Border Crossings

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Classification

Domestic

Internal Trade

Foreign Bilateral Trade

Border Crossing or Gateway

Transit Third Country Trade

Border Crossing and Gateway

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Typical

Corridor

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Typical Network

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Reasons for Developing Corridors

Domestic Promote efficient production

Reduce delivered costs to consumers

Foreign Improve competitiveness

Reduce delivered costs to consumers

Transit

Improve economy and political stability ofneighboring countries

Develop economic activity providing services andprocessing activities for the transit cargo

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Performance Measures

Transit Time

Average Door-to-Door

Essential Activities

Logistics Cost Shipper Out-of-pocket

Discretionary Expenditures

Reliability Scheduled-Stochastic

Flexibility

Routes, modes

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c a,ta,racb,t b,rb

cc,tc,rc

cd,td,rd

ce,te,re

Volume of trade

cb,tb,rb

cd,td,rd

ca,ta,ra

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Local Component

0

10

20

30

40

50

60

70

80

90

100

Cost Time

Destination

Ocean

Inland

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Cost

Distance DestinationOrigin

Door-to-door

Cost

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Tim

e

Distance DestinationOrigin

Door-to-door

Time

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Corridor Improvements

Short-term customs and border crossing procedures

improvement in quality of logistics services

traffic control

Medium-term development of infrastructure and interconnections

commercialization of infrastructure services

certification, liabilities

relocation of clearance activities

Long-term harmonization of standards

Liberalized trade and transit agreements

modification of cabotage, reciprocity

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Project Establish

Interoperability

Increase

Interconnections

Improve

Interconnections

Improve

Market Access

Increase

Route Capacity

TEN X X X X X

TRACECA X XCan-Mex (NAFTA) X X XPan American XBolivia-Chile X X(Mercosur) XNorthern Corridor X X X X XMaputo Corridor X

X

Trans-Kalahari X XWest African Corridors X XTurkey-Jordan X XAsian Highway X XMongolia-China XSAARC Corridors X X XGMS Corridors X X XNorthern West-Borneo X X

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Management Role

Not Control but Coordination

Promotion and Advocacy

Focus on Choke PointsBuild Public-Private Partnership

Bilateral versus Multilateral

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Management Models

Disjointed Incrementalism

West Bengal, Pan American

Central Corridor

Legislative TEN, TRACECA,

Maputo, Mercosur, Can-Mex

Consensus Building Trans-Kalahari, Northern Corridor,

Asian Highway

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SME Suppliers

Intl. Suppliers, Generic or Brand

DC for Brand Manager, Wholesaler

Retailer, Chain

Contract Manufacturer

Domestic Manufacturer

Corridors and SME Development

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Thank You