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TIR transforms landlocked Central Asian countries into regional trade hubs - IRU SecGen (Exclusive interview)

Central Asia Materials 3 September 2024 09:20 (UTC +04:00)
TIR transforms landlocked Central Asian countries into regional trade hubs - IRU SecGen (Exclusive interview)
Alyona Pavlenko
Alyona Pavlenko
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BAKU, Azerbaijan, September 3. The TIR system (an international customs transit system enabling goods to flow across borders by road) is solidifying the transition of landlocked Central Asian countries into regional trade hubs, Umberto de Pretto, Secretary-General of the International Road Transport Union (IRU), told Trend in an exclusive interview.

“It is crucial that we maintain multi-stakeholder discussions about key challenges and opportunities to ensure that road transport and the TIR system continue to spread prosperity and solidify the transition of landlocked Central Asian countries into regional trade hubs,” he said.

The Secretary-General highlighted that the upcoming international road transport conference in Tashkent, organized by IRU member the Association of International Road Carriers of Uzbekistan (AIRCUZ) in partnership with IRU, will be a timely opportunity for the union members and industry leaders from over 30 countries, as well as development partners, international organizations, and financial institutions, to address challenges and capitalize on opportunities to optimize international trade.

“Road transport provides resilience and sustainability amid geopolitical instability, shifting trade corridors, and rising freight flows. It can deliver goods from the point of departure to the final destination and is an indispensable component of any multimodal route. We must combine 'hard infrastructure' and 'soft infrastructure' upgrades to better support trade: standardized facilitation procedures and techniques,” de Pretto said.

He added that the conference will also highlight 75 years of the global TIR transit system, the United Nations’ longest continuous public-private partnership.

“TIR is critical to global transit and trade, enhancing the efficiency and security of transport while reducing carbon emissions,” he added.

De Pretto noted that the TIR system is continuously growing, opening new avenues for fast, secure, and sustainable trade. This year, following the successful launch of the Shenzhen (China) and Almaty (Kazakhstan) TIR route in 2023, a new route connecting Shenzhen to Tashkent, Uzbekistan, was activated. Uzbek hauliers are also exploring other trade routes to China. With TIR, it takes eight days to travel from Southern China to Tashkent via Kyrgyzstan, compared to 20–30 days by road without TIR.

“Central Asian countries are leading in TIR digitalization. Digitalization not only facilitates trade but also makes it more secure and transparent. The digital version of TIR, eTIR, further enhances the benefits of the system. I should note that implementing eTIR should be accompanied by other digital tools, such as e-CMR, e-visas, and e-permits. TIR is also supported by existing digital mechanisms and IT tools that connect private sector actors and allow operators to send advance cargo information to customs for more effective risk management,” he said.

He pointed out that Central Asia is bursting with untapped potential. Although the number of trade hubs in the region is growing, it is still only scratching the surface. With increasing volumes of goods transiting the region, accelerating the digitalization of trade is becoming essential.

Moreover, de Pretto noted that Uzbekistan has been the leading global issuer of TIR carnets for two consecutive years, under the leadership of AIRCUZ’s Chairman, Sanjar Pulatov, and his team.

He emphasized that while Uzbekistan is a double-landlocked country surrounded by other landlocked countries, its geographical location remains crucial, straddling key north-south and east-west corridors and connecting global trade and economic powerhouses.

“Uzbekistan has rightly identified the development of the road transport industry as a central policy priority. IRU is proud to be part of this transformation, enhancing transport and development prospects in the region,” he said.

De Pretto also highlighted further potential for TIR routes for Uzbekistan via Kazakhstan, such as the Khorgos-Alashankou border crossing and the Kashgar border, as well as Türkiye-Central Asia routes via Uzbekistan.

“Central Asian countries, in partnership with the private and public sectors, and with support from international organizations and development partners, have been leading the way in digitalizing trade and transit. They have shown concrete progress in TIR digitalization and have established dedicated lanes for secure TIR operations. These lanes optimize transit flows with robust risk management mechanisms, raising transit security and facilitation to new heights,” he said.

Following COVID-19, transport operators from Central Asia and China resumed long-distance, door-to-door deliveries, reaching the most remote cities and trade hubs.

“Transport operators are testing various scenarios and itineraries to find the most efficient, fast, and cost-effective solutions. Based on these pilot results, IRU is helping both the public and private sectors address border bottlenecks and ensure smooth and sustainable transit. This is just the beginning,” he said.

In 2023, Chinese hauliers also began long-distance, door-to-door journeys with their own fleets and drivers, linking China to South Asia, Central Asia, Türkiye, and the Caucasus.

IRU, together with its members and partners, activated over 15 new Chinese TIR routes in 2023, notably connecting China with Afghanistan, Central Asia, and Pakistan, diversifying regional transport routes to facilitate growing trade.

Just over five years since the official launch of TIR in China, TIR now connects China with more than 30 countries across Eurasia, offering more secure transport options that are over 80% faster and 50% cheaper than other available transport options and routes.

The number of Chinese TIR operators is also growing rapidly (from 29 in 2023 to 122 so far in 2024). Three exclusive Chinese TIR operators have opened various new routes directly linking China to Central Asia, South Asia, Türkiye, and the Caucasus.

Additionally, the types of cargo transported under TIR are diversifying. For example, e-commerce goods are now being transported from Kashgar, China, to Eurasia and beyond via Uzbekistan.

The Secretary-General added that 16 Chinese inland cities have initiated TIR transport, including Shenzhen, Shanghai, Zhengzhou, Qingdao, and Chengdu, among other important economic centers and manufacturing bases in China. These cities are using TIR to transport cargo efficiently and securely by road to Samarkand, Dushanbe, Bishkek, and other cities in Central Asia.

“Over the years, IRU has been working with its members and partners to initiate new TIR routes, ensuring seamless freight flows across borders. We are committed to continuously developing and improving these routes to support growing trade and economic ties in the region. It’s important not only to open new routes but also to enhance existing ones through risk-based facilitation. By sharing advance cargo information with customs via TIR-EPD, we can perform advance risk management and prioritize clearance for TIR trucks,” he said.

He also noted that a growing number of TIR and TIR-EPD green lanes, windows, and booths are opening at border crossings across Central Asia. Customs authorities have also extended Authorized Economic Operator lanes to TIR transport or integrated TIR prioritization into border-management mechanisms such as e-queues.

Additionally, in the context of ever-growing containerization in the region, a wider use of TIR in intermodal transport could be a game changer.

“Finally, two IRU-accredited TIR logistics hubs have recently opened in China’s Xinjiang region, which borders Central Asia. The hubs offer a one-stop-shop for TIR transport companies, customs services, and supply chain players. They consolidate all essential transit services under one roof: customs clearance, warehousing, cargo handling, route development, and transport-capacity matching. Proper logistics planning can significantly boost the efficiency of trade,” he concluded.

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