Improving Transnational Transport Corridors
In the OIC Member Countries: Concepts and Cases
19
by more than 1%. More sophisticated processing using one stop border crossings, sharing risk
analysis data and electronic data interchange can transform an inefficient and costly transit
route to an efficient and more productive one. An example of how a one stop border works is
shown i
Figure 6: Conventional two stop crossing and one stop border crossings
Source: SADC OSBP Source Report First Edition.
What is revealed from literature is that facilitation of trade is as important, some may say more
important, than infrastructure, when planning transport corridors. Certainly, the investment
needed in transport infrastructure to reduce transit time by one hour is infinitely more than
that needed to reduce border crossing processing time by 1 hour. This is exemplified by Stone
and Strutt (2010) in the ASEAN region, by Teravaninthorn and Raballand (2009) in Africa and
by Banomyong and Beresford (2000) in South East Asia.
In particular the collection and dissemination of information in participating countries has
been noted by Moïsé (2013) as being very important. Such exchange of information needs to
be based on trust and facilitated by good communications infrastructure and an agreement on
electronic data interchange. Effective consultation processes between participating countries
and collectively at the World Trade Organization is vital (Narlikar, 2002) and this speaks to the
level of institutional democracy, accountability, legitimacy of participating countries, especially
regarding measures to uphold rules of non-discrimination (Bolhofer, 2007). Participating
countries along transport corridors are also members of a preferential trade area. The Mekong
Preferential Trade Area (PTA) is an example of this (Stone and Strutt, 2010). As rules of
conducting PTAs and transport corridors evolve fees, charges, penalties, instituting acceptable
processes in corridor countries are pre-requisite. Such procedures include clarity of release
and clearance of goods procedures in corridor countries, border agency cooperation in
countries along the corridor. Incoterms9 were first developed in 1936 and are updated from
time to time to conform to current trade practices, accordingly, it will be necessary for corridor
9 Incoterms are trade terms published by th ICC) that are commonly used in both
international and domestic trade contracts. Incoterms, which is short for "international commercial terms," are used to
make international trade easier by helping traders who are in different countries to understand one another.
For more information, please refer t