BAKU, Azerbaijan, December 23. CEVA Logistics plans involve the development of the Middle Corridor using the TIR system, Kelvin Tang, VP of Ground and Rail, Greater China, and Global Cross-Border and Multimodal Leader at CEVA Logistics, told Trend.
TIR (Transports Internationaux Routiers) is the international customs transit system with the widest geographical coverage. TIR cuts border waiting times significantly, saving time and money.
“CEVA Logistics plans involve both the optimization of existing routes, such as the Middle Corridor, and the exploration of new avenues to foster a dynamic and responsive trade network that benefits all interested parties,” he added.
Kelvin Tang elaborated that CEVA Logistics is committed to furthering the development of trade routes from China to the West, actively involving Central Asian countries.
“CEVA Logistics is in the process of evaluating the feasibility of extending our network to connect with key economic hubs in Central Asia, such as leveraging rail connections to Turkmenistan. This expansion aims to provide more coverage and facilitate smoother trade between China and Western destinations,” Kelvin Tang said.
He also noted that streamlined TIR procedures across the China-Kyrgyzstan-Uzbekistan truck corridor have facilitated faster cross-border movements.
"The growth of this new corridor has been remarkable, especially in cross-border trucking, including the implementation of the TIR operation model. Currently, more than 500 trucks traverse this corridor daily, and this number continues to rise. The adoption of the TIR operation model has demonstrated significant benefits, with a 30 percent reduction in lead time and a 10 percent decrease in costs compared to normal trucking solutions," mentioned Kelvin Tang.
"The streamlined TIR procedures have not only facilitated faster cross-border movements but have also contributed to substantial savings in operational expenses. The efficiency gains indicate a positive impact on both time and financial aspects of logistics operations within the region," he added.
Furthermore, he said that CEVA Logistics is exploring the expansion of the TIR procedure to various routes within Central Asian regions. Presently, all Central Asian countries have joined the TIR Convention, signifying a unified commitment to streamlined international transport procedures.
"In addition to our focus on Central Asia, we are currently engaged in extending the TIR corridor from China through Kyrgyzstan and Uzbekistan to the Caucasus, Türkiye and Europe by road. Our strategy includes implementing a multimodal solution, incorporating rail transport from China's main cities to the Kashgar train station, followed by a seamless transition to TIR trucking through Kyrgyzstan and Uzbekistan," he said.
He also said CEVA Logistics is working on network expansion from China's Kashgar to Pakistan, introducing a comprehensive multimodal solution combining trucking and ocean transport to connect to Dubai and extend further to Africa.
“This strategic approach aligns with our commitment to enhancing international trade connectivity and facilitating efficient logistics solutions across diverse regions,” Kelvin Tang said.
Furthermore, it was noted that CEVA Logistics is actively engaged in robust collaboration with local authorities and partners to ensure the success of the new logistics initiative. The company’s established infrastructure includes a well-equipped hub in China's Kashgar and an overseas hub in Uzbekistan, supporting seamless door-to-door services, including distribution within Uzbekistan.
He said that from July to September 2023, CEVA Logistics solidified strategic partnerships with two leading Silk Road railway operators, marking a significant step toward the further development of the China-Kyrgyzstan-Uzbekistan rail and multimodal (rail + TIR trucking) import and export business.
“As part of our ongoing efforts, we have entered strategic hub cooperation agreements with Xian Railway and Guangwu Railway in Uzbekistan. Additionally, we are actively collaborating with our partners to establish a consolidation hub near the Kyrgyzstan border. This initiative aims to enhance our TIR network and optimize truck utilization, focusing on achieving efficient round-trip volumes. These collaborative endeavors underscore our commitment to fostering strong partnerships and leveraging local expertise for the success of our logistics initiatives in the region,” he said.
Speaking about the company’s Kelvin Tang, he said that CEVA Logistics’ objective is to achieve significant time and cost efficiencies through the implementation of the TIR procedure on the China-Kyrgyzstan-Uzbekistan route.
“We aim to reduce the door-to-door (DTD) lead time to Almaty and Bishkek by 5 days and to Tashkent by 7 days, translating to a remarkable 40 percent reduction in lead time compared with normal trucking. Additionally, we anticipate a substantial 30 percent cost savings,” he said.
The Middle Corridor is a transportation and trade route that connects Asia and Europe, passing through several countries in the region. It is an alternative route to the traditional Northern Corridor and Southern Corridor.
The route starts in China and crosses Central Asian countries such as Kazakhstan, Uzbekistan, and Turkmenistan. It then passes through the Caspian Sea, Azerbaijan, Georgia, and Türkiye before reaching Europe.