‘Soft solutions’ are key to faster and cheaper trade in Central Asia

The benefits of improving soft infrastructure parallel those of developing physical infrastructure. This was IRU's key message at the Eurasian Development Bank's conference on sustainable development in Kazakhstan.

During the "Promoting Sustainable Development in Central Asia" conference in Almaty, organised by the Eurasian Development Bank (EDB), IRU joined experts from TRACECA, the Islamic Development Bank, the Asian Development Bank, and the Asian Infrastructure Investment Bank to discuss the role of both hard and soft infrastructure in enhancing connectivity.

As many projects and initiatives in Central Asia are led by multilateral development banks focused on constructing or modernising hard infrastructure, the role of soft measures, as a real game-changer, is often underestimated.

IRU General Delegate for Eurasia Vadim Zakharenko said, "Growing trade flows are placing increasing pressure on border crossings. It is only through internationally harmonised instruments and digitalisation tools, such as tried-and-tested UN conventions, that the potential of transport and transit can be maximised, and bottlenecks can be mitigated."

"The road transport sector values every metre of new road. However, fantastic roads do not improve transport and trade efficiency if they lead to congested borders," he added.

The TIR system, the UN's longest public-private partnership, celebrating its 75th anniversary this year, is a prime example of a soft solution that has significantly facilitated transit for decades. TIR IT-tools, such as TIR-EPD, are now enabling transport operators to submit advance cargo information, improving risk-based prioritisation and expediting customs procedures.

"Central Asian countries have made significant advancements in TIR digitalisation, introducing dedicated lanes for secure TIR transport, which has optimised transit flows and enhanced security," said Vadim Zakharenko.

"The industry is eager to leverage the benefits of eTIR and e-CMR. However, to fully unlock their potential, governments must establish the appropriate legal framework and implement mechanisms to support these digital tools effectively," he added.

New report

In a new report, EDB has highlighted the importance of developing soft infrastructure within the Eurasian Transport Network, which consists of international corridors crossing Eurasia, linking Asia and Europe.

From 2013 to 2023, international freight flows along the Eurasian Transport Network's five corridors more than tripled. The EDB projects that freight traffic along the three main corridors crossing Central Asia will grow 1.5 times by 2030.

However, to accommodate the growing volume of goods, improvements to both hard and soft infrastructure are needed. Central Asian exports could grow by 18% as vehicle downtime at border crossings is halved. Switching to digital technologies and electronic shipping documents could save up to four days at border crossings for international freight.

Another example is the interoperability of east-west and north-south transport corridors. The synergy between the International North-South Transport Corridor and the Middle Corridor has boosted container freight volumes by 40%, driven by new opportunities for route diversification.

A key soft solution highlighted in the report is the global TIR transit system. In Central Asia, TIR cuts border crossing times by nearly a third and costs by almost sixfold.

The report goes on to further note that eTIR could reduce transport times by 80% and costs by 38%. eTIR minimises the number of documents used in the transit of goods and accelerates risk assessment through the electronic exchange of information between national customs authorities.

Public link

Please use the above public link if you want to share this noodl on another website.