Improving Transnational Transport Corridors
In the OIC Member Countries: Concepts and Cases
2
In terms of trade facilitation area, the OIC transport corridors are characterized by many non-
physical barriers such as unofficial payments (corruption) and cumbersome border crossing.
Low intra trade is also characterizing the OIC transport corridors. The average is less than
10% of the total trade, while this figure is 50-60% in the EU where many successful transport
corridors are situated.
In terms of internal security and especially legal liability, especially with respect to liability for
damage, theft, and other causes of loss, is not yet well developed in the OIC transport corridors.
As such, commercial risks and insurance premiums are high, and consequently so are trading
costs. This situation partly explains why the OIC corridor countries trade mainly with Europe
and the rest of the world (where legal liabilities are more advanced) than with the neighboring
countries.
A common characteristic of OIC transport corridors in terms of technical and operational
factors, is a significant shortage and underutilized of rail infrastructure. Low interoperability
and lack of interconnections are the main challenges, although these are not only the domains
of the OIC corridors. Several TEN-T corridors are still facing road and rail interoperability
issues.
Environmental and energy efficiency issues are almost absent in the OIC transport corridor
development, most likely due to wide availability of oil. Whilst oil remains affordable,
alternative fuels are viewed as expensive and unnecessary.
Following the findings of the study, the key recommendations for improving the transport
corridors in the OIC geography are summarized as follows: