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Speech by Kristal Alley, Special Advisor, International Division, US Chamber of Commerce

Feasibility of Euro-Asian Goods Transport by Road

EURASIA BUSINESS PLATFORM

Chamber of Commerce of the United States of America

Eurasia Business Platform

• Shaping U.S. economic policy in Central Asia, the Caucasus, Ukraine, and Turkey
• Creating and maintaining dialogue, access and interaction with Eurasia’s key government and business decision-makers
• EBP Objectives
• Create an awareness of the value of Eurasian regional integration among policy-makers in Eurasia, Europe and the USA
• Shape perceptions and policies towards Eurasia and Turkey
• Develop cross cutting policy recommendations in areas which would have a positive impact on regional development
• Strengthen the AmCham network and coordinate its lobbying efforts on issues of regional impact

Overarching Objective    

Foster regional cooperation and integration with the goal of creating a transparent and profitable commercial and investment climate while contributing to the positive development of a strategically important part of the world

Key Activities

• Commissioned Commercial Feasibility Study: Land Transport Options Between Europe & Asia
• Briefed U.S. government officials from the U.S. Departments of State, Commerce, Treasury, the National Security Council, and members of Congress
• Developed relations with U.S., European, and key international organizations
• Istanbul roundtable
• Moscow roundtable
• Main Findings
• Ocean transport:  cheap and reliable, but long transit times
• Air transport:  expensive but fast
• Rail:  More expensive than ocean transport, transit times unpredictable
• Road:  Costs are 3-4 times that of ocean transport and roughly 1 week shorter—huge potential for shortening transit times even further —a transit of 1 week shorter for trucking than for ocean transport can level the difference in costs

Modal Split: Full Load Containers Between China & Europe

China to Western Europe
A Broad Comparison

The Trans-Eurasian Land Bridge

Trucking Estimates

Developing Eurasian
Land Transport Options

• Time matters
• Predictability and reliability are key
• Border crossing and other facilitation issues must be adequately addressed
• Increased regional cooperation is a necessity

Istanbul Roundtable

• Eurasia has the potential to be a large and lucrative market beyond only the energy sector
• Regional cooperation and integration is necessary: 
  • Transport and trade facilitation measures
  • Environment and water resource management
  • Development of human capital
  • Rule of law issues and corporate governance programs
  • Protection of Intellectual Property Rights (IPR) and combating trade in counterfeit and other illicit goods
  • Energy security and diversification of the economies
  • Reducing red tape, corruption and increasing transparency

Moscow Roundtable

• IP Protection and Anti-Counterfeiting
  • Best practices from region
  • Customs training
  • Scorecard
• Transport Development & Trade Facilitation
  • Georgia-customs timing project
  • UN Transport Conventions
  • Working Group
• First annual Eurasia Forum in Washington, D.C. – Fall 2007

Meeting the Challenge

As long as the countries in the region do not address, in a meaningful way, market and economic policy fragmentation, most companies will not make the region a priority.

See the Powerpoint presentation

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