Freight Costs Reduction to Boost Central Asia’s Trade

In order to cut Freight costs Tajikistan acceded to the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific in the year 2022. Digital Cross border trade is the new frontier of logistic artificial intelligence (AI ) .After the Uzbekistan – Pakistan Transit Trade Agreement Uzbekistan would also be a beneficiary as it would have an alternative route for its exports by gaining access to the international seaports of Pakistan and container freight and logistic costs would significantly reduce.

Courtesy IRU

TIR

The Transports Internationaux Routiers (TIR) is an International Customs Transit System managed by the International Road Transport Union (IRU) and operates under a UN mandate. The TIR facilitates the seamless and digital movement of sealed containers through transit countries and harmonises and streamlines customs  procedures at borders .

Kyrgyzstan – Uzbekistan – Afghanistan – Pakistan Route

 Courtesy EURACTIV.com

 

Recent achievements of the TIR in the backdrop of Central Asian Republics connectivity are the containerised transport of tanned leather from Kyrgyzstan via Uzbekistan and Afghanistan to the international seaports of Pakistan and this may present an alternate trade route and access to ports for the landlocked Central Asian Republics in the near to medium term .The strategic economic depth of Pakistan would extend to the heart of Central Asia . To achieve this objective the authorities would have to remove the existing chaotic conditions , upgrade dilapidated road infrastructure and congestion , parking areas, establish e portal and introduce and enforce e bills of lading for the cargo at border crossing into land locked Afghanistan. Allegations are rampant that extortion takes place in broad daylight .Trucks or containers that cross the Pakistan – Afghan border at Torkham have to pay exacting amounts as speed money to customs officials which deprive both countries of its legitimate revenues , distort trade dynamics besides enhancing cost of doing business and freight costs.

By Nadir Mumtaz