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Improving Transnational Transport Corridors

In the OIC Member Countries: Concepts and Cases

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constrained in various ways. It may also be difficult for some OIC countries to fully

perceive the benefits of deep collaboration in matters of trade and transport due to the

fortunate position they may have with respect to being providers of oil products. None the

less, transport corridor development does have demonstrable benefits in lowering

transport costs that should be of interest.

3.

Trade facilitation

Trade facilitation plays a very important role in the success of a transport corridor. It

includes many attributes ranging from trade agreements to travel time and transport

costs. Which attribute is more important than the others really depends on the objectives

of the transport corridors development. Most transport corridors in Asia and Africa have

an objective to open-up the trade potential of many landlocked countries. In the MENA

region, transport corridors are mainly catalysts to enhance regional integration and trade

cooperation, although this is not yet achieved.

The OIC transport corridors are characterized by many non-physical barriers such as

unofficial payments (corruption) and cumbersome border crossing. All OIC countries have

at least one bilateral FTA and being participants of international transport conventions.

However implementation of and compliance with the agreements vary among countries,

resulted in low common standards.

Low intra trade is also characterizing the OIC transport corridors. The average is less than

10% of the total trade, while it is 50-60% in the EU. A major objective of multinational

transport corridors is thus to stimulate and facilitate trade between countries along the

corridor rather than seeing at a means to access trading partners on other continents.

4.

Social factors

A transport corridor does not only mobilize trade, but also materially affected the quality

of people’s lives. Increased trade and foreign investments will ultimately result in poverty

reduction. The freedom of movement relates to work opportunities.

A successful transport corridor like TEN-T plays its role very well in accommodating and

promoting these factors. Several OIC transport corridors like CAREC and TRACECA are

also successful in this sense, although to a lesser extent. With about 10% of the workforce

active in transport in a wide meaning, improvements of the transport systems obviously

affect the daily working lives of millions of truck drivers, railway workers and those

servicing the transport sector.

5.

Safety, security and the legal liability

Road safety in general is a crucial issue for the OIC countries as many of them are

suffering from high mortality rates on the streets and traffic related injuries. National

road safety figures are largely available, but this is not the case with road fatalities along

OIC transport corridors. This reflects the importance of including this aspect in the

corridor data and statistics collection system.

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