BAKU, Azerbaijan, September 28. A typical shipment along the Middle Corridor between the points of origin and destination entails undergoing customs transit procedures ten times, with each requiring a separate customs transit declaration.
This was stated in the World Bank report “Integration: World-Class Trade Logistics along the Trans-Caspian Transport Corridor.”
"Furthermore, the transport operation requires the processing of five documents confirming the contract of carriage (consignment notes) as well as two maritime bills of lading. Depending on the specific shipment, additional documents may be required, including truck transit permits and proof of guarantees for customs duty payments. This process is redundant and inefficient, leading to longer and less predictable delivery times and driving up trade costs.
Drawing on international experience, including practices in other segments of Eurasian logistics, the Middle Corridor could transform the current model for organizing transport and customs transit procedures by consolidating these various documents into a single document or a unified T3 data record.
The T3 document can serve not only to simplify customs transit and facilitate transport service contracts but also as a negotiable instrument. This would enable shippers to use it for trade finance purposes or to sell goods while they are in transit," the bank said.
The World Bank pointed out that documentation is just one of two key aspects of service delivery.
"The second aspect concerns how transport services, as well as cargo handling and distribution services are offered, priced, delivered, and regulated.
To improve service delivery efficiency amidst the fragmentation inherent in a system involving multiple railway operators and shipping lines across the Caspian Sea, the Trans-Caspian International Transport Route (TITR) could integrate operations under a single joint venture, specifically, an asset-light operator managing containerized rail and trans-Caspian maritime transport. Ideally, this operator would be owned by the leading state-owned railway and shipping companies, which hold the actual transport assets, from Azerbaijan, Georgia, Kazakhstan, and Türkiye. This would streamline cargo transfers between carriers and intermodal coordination, while also optimizing tariffs, routes, contingency management, cargo dispatch, and customer service," the World Bank said.
The World Bank noted the urgent need to transform the organizational model for transport and customs transit procedures along the Middle Corridor and to achieve closer integration of transport operations.
"Therefore, the countries through which the corridor passes, as well as destination countries, must take measures to address this in the near term," the bank explained.
The bank pointed out, however, that international experience suggests implementing such measures will likely take a long time - potentially spanning several years - and will require a process involving pilot projects, adjustments, and the gradual refinement of approaches.
