1. No category

Integrating Transport Networks in Eurasia
: Status and Future Direction
Mar. 24. 2015
Jaehak OH
Vice President
The Korea Transport Institute
Contents
1. Economic Status and Growth in Eurasia
2. Transport Network Conditions in
Eurasia
3. Review of Eurasian Transport Network
Development Plans
4. Future Direction toward Promoting
International Cooperation
2
1. Economic Status and Growth
in Eurasia
3
Geographic Status
Location

Geographic Status
Continents of Asia and Europe
Area

64.92 mil. ㎢(40% of the world)
Population

4.5 bn (75% of the world)
Source: Wikipidia
Key Economic Potential

Emerging markets with great potential for economic growth
4
Economic Status
Annual
Trade volume
Share
West Europe, East Asia as one of the
three economic blocks in the world
East Europe, Central Asia showing
rapid economic growth
change(%)
(mil. $)
(10 years)
EU
11,321,758
32.25%
8.13%
East Europe
1,590,633
4.53%
17.60%
Middle East
1,993,559
5.68%
17.64%
Southeast Asia
2,572,152
7.33%
12.79%
Southwest Asia
901,550
2.57%
20.16%
Central Asia
176,612
0.50%
20.01%
East Asia
7,597,602
21.64%
13.68%
Oceania
641,096
1.83%
13.64%
North America
4,845,550
13.80%
7.31%
South and
central
America
2,291,090
6.53%
12.18%
Africa
1,176,310
3.35%
15.60%
Total
35,107,912
100%
10.87%
Source: KITA
5
Economic Growth
Asia
Growth in trade volume due
to rapid economic growth
Europe
Stagnation or decline in
trade with Eurasian region
except Asia
Share of total trade between regions in the world, 1990(%)
CIS & Middle East
CIS : Growth in trade
volume with Asia
Middle east : Decline in
trade volume with Europe,
but increase with Asia
Share of total trade between regions in the world, 2011(%)
6
Economic Growth
Eurasian emerging market leading
the world economy

Annual average economic growth 10%

15.2% of the world GDP
Growth of Logistics demand due to
rapid economic growth
7
2. Transport Network Conditions
in Eurasia
8
Major Barriers in Eurasia Transport Network
Physical Barriers: Transport Development Gap among the Eurasian Countries

Underdeveloped and poorly maintained transport infrastructure in Central Asia
and some of East Europe(development gap between Europe and Asia)

Bottle necks, missing links and poorly equipped border post in Central Asia and
some of regions can render a whole Eurasian Network ineffective
Non-Physical Barriers

High transit tariffs, fees and fiscal charges

Imbalance between westbound and eastbound cargo volumes(Europe  East
Asia) < (East Asia  Europe)

Absence of harmonized Inter-governmental transport laws, customs procedures
Disconnected Transport Network between the two Koreas

Missing links on the Korean peninsula

Poorly maintained transport infrastructure in North Korea
9
Logistics Performance Index in the Eurasian Region (LPI)
Region
West
Europe
North East
Asia
Infrastruct
ure
Internatio
nal
shipment
s
Logistics
quality and
competence
Tracking
and
tracing
Timeliness
Economy
LPI
Custo
ms
Germany
1
2
1
4
3
1
4
United Kingdom
4
5
6
12
5
5
7
France
13
18
13
7
15
12
13
Japan
10
14
7
19
11
9
10
Korea, Rep.
21
24
18
28
21
21
28
China
28
38
23
22
35
29
36
Turkey
30
34
27
48
22
19
41
Saudi Arabia
49
56
34
70
48
54
47
Russian Federation
90
133
77
102
80
79
84
Armenia
92
75
107
90
79
114
98
Ukraine
61
69
71
67
72
45
52
Kazakhstan
88
121
106
100
83
81
69
Uzbekistan
129
157
148
145
122
77
88
Tajikistan
114
115
108
92
113
119
133
Middle East
East Europe
Central Asia
Source: World Bank, The Logistics Performance Index and Its Indicators, 2014
10
LPI & Economic Growth
LPI Scores by Eurasian Regions
Transport Development
Gap among Eurasian
Economies
West Europe
East Asia
East Europe

Improved logistics
systems in Europe and
East Asia with high
growth in GDP

Inefficient logistics
systems in Central Asia
and East Europe showing
low growth in GDP
Middle East
South Asia
Central Asia
Source: World Bank, "World Development Indicators", http://databank.worldbank.org/data/home.aspx(2014. 7. 3)
11
Differences in Railway Systems & Trade Imbalance
Different Track
Gauges
Increasing
logistics costs
due to
transshipment at
borders
Too Many Transit
Countries
Imbalance of
Container Trade
12
Disconnected Transport Network in Korean peninsula
Disconnection between Eurasian Transport Networks and Korean Transport Network
13
Large gap in transport infrastructure between North and South
unit
South(A)
North(B)
A/B
Territory
km2
100,188
123,138
0.8
Population
thou
50,004
24,427
2.0
GNI
bil. won
1,279,546
33,479
38.2
GNI per capita
10 thou.won
2,559
137
18.7
Trade Value
100mil. $
10,675
68
157.0
Rail lines
km
3,559(8,419)
5,299
1.6
Metro
km
597 2)
34
17.6
Roads
km
105,703
26,114
4.0
Expressway
km
4,044
727
5.6
Port cargo handling
capability
thou. ton
1,017,190
37,000
27.5
Car registration
thou. veh
18,871
266
70.9
Source: Kostat
14
3. Review of Eurasian Transport
Network Development Plans
15
United Nations
AH, TAR : Asian Transport Network (UNESCAP)
EATL : Integrated Transport Network Linking Europe and Asia (UNESCAP
+ UNECE)
European Union
TEN-T : EU funded project - Trans-European Transport Network
TRACECA : Transport Corridor on a West-East axis from Europe, through
the Caucasus to Central Asia
ADB & Multilateral Organizations
CAREC : Project aiming at Promoting Development in Central Asia
Supported by 6 Multilateral Institutions
16
AH (Asian Highway) - UNESCAP
Over 141,000 km of roads passing through 32 member countries
17
TAR (Trans-Asian Railway) - UNESCAP
117,500 km of railway lines serving 28 member countries
18
TEN-T (Trans-European Transport Network) - EU
Nine core network corridors
Trans-European Transport Network
19
TRACECA (Transport Corridor Europe-Caucasus-Asia) - EU
EU and member countries
20
EATL (Euro-Asian Transport Linkages) – UNECE + UNESCAP
Corridors connecting Europe with Asia
9 EATL road routes, 9 EATL rail routes, 17 water transport links, 52
inland river ports and 70 maritime ports were identified
21
China -“One belt, One Road”
Silk Road Economic Belt, Maritime Silk Road initiative
22
Russia - Eurasian Integration Policies
EEU (Eurasian
Economic
Union)

Regional trading
bloc that brings
together Belarus,
Russia,
Kazakhstan and
Armenia

One fifth of
world gas
reserves and
about 15 percent
of oil reserves in
the world
Source: Indian Defence Forum
23
Korea – Eurasia Initiative
One Continent

Transport: Silk Road Express, Northern Sea Route

Energy: Jointly developing energy resources, Eurasian
energy network

Eurasian
Initiative
Trade and investment: Eurasian single market
Continent of Creativity

Technology: creativity, convergence of science and technology

Culture and Humanities: Cultural and people-to-people exchanges
Continent of Peace

Peace & Security : Trust-building process on the Korean
Peninsula, Northeast Asian Peace and Cooperation Initiative
24
Korea – Silk Road Express
Disconnection & Confrontation → Place for coexistence & openness,
Building the single market
25
Eurasia Transport Networks
26
4. Future Direction toward Promoting
International Cooperation
27
Need for Strategy of Promoting Eurasia Common Prosperity
China
One belt,
One Road
Russia
Eurasia Integration
Policies, EEU
Central Asia
CAREC, Silk Road
Initiative
Eurasia
Common
Prosperity
Korea
Eurasia Initiative,
SRX, Northeast
Asian Peace and
Cooperation
Initiative
Europe & United States
New Silk Road Initiative
including TEN-T,
TRACECA
28
Infrastructure and Operation System Integration
International Transport Network Projects

Active support and participation in international network reconstruction
Transport and Logistics Operation System Integration

Inter-governmental transport laws, Integration of customs procedures
Integrated map of AH, TAR & dry ports
29
Rail Cooperation through OSJD
Need for Rail Cooperation through OSJD

Most Northern Eurasian nations are members of OSJD

Effectiveness of Cooperation through OSJD
Expansion of OSJD Membership and Expected Effects

Korea and Japan, two of the main Eurasian countries are non-members

Increase in the use of rail network between Europe and Asia

International cooperation in improvement of technology
International Agreement :

IGA : Inter - Government Agreement

HGA : Host - Government Agreement
30
Connecting Railway Network between Korean Peninsular and the Continent
East Coast Line

Modernization of Busan-Sokcho-Wonsan-RajinVladivostok Line (750km, 2.4B USD), (Plan for
integration with TSR)
North Korea Benefit

100M USD/year/30 years, without any trade cost
Seoul-Shinuiju Line

Modernization of Gaesung-Pyongyang-Shinuiju Line
(375km, 1.3 B USD), (Plan for integration with TCR)
Connection to the Continent

corner-stone for unification of Korean Peninsular
31
PRC-ROK-DPRK Cooperation Project
Yellow Sea Economic Belt

Economic development through logistics integration in the Yellow Sea region

Encourage open-door policy of DPRK for peace and prosperity
Beijing
Tianjin
Balhae Sea Rim Economic Bloc
Dalian
Pyongyang
Economic Bloc
Ongjin
Weihai
Yantai
Capital area
Economic Bloc
Yellow Sea Rim
Economic Bloc
The Korea - China Ferry
32
Russia-ROK-DPRK Infrastructure Package Project
Infrastructure Package Project

Integration of rail, gas and electricity industry

Optimization of economic efficiency
Russia-ROK-DPRK Gas Pipeline
Infrastructure Package
33
Financing for Improving Eurasia Integrated Transport Infrastructure
EU,
United
States
European
Bank for
Reconstruction
and
Development
Russia,
Central
Asia
World
Bank
Asian
Development
Bank
Eurasia
Integrated
Transport
Network
North - East
Asian
Development
Bank
International
Monetary
Fund
Asian
Infrastructure
Investment
Bank
Stimulating
cooperation
among the
participating states
for transport
development
Promoting
integration of the
Korean peninsular
into the Eurasian
transport network
Korea,
China,
Japan
34
Thank you !