Faster Border Crossing Time, Higher Transport Costs in CAREC Countries

Average transport cost in CAREC corridors increased in 2013 due to rising vehicle operating costs, according to the 2013 CPMM report.
Average transport cost in CAREC corridors increased in 2013 due to rising vehicle operating costs, according to the 2013 CPMM report.

It takes slightly less time to cross border-crossing points (BCPs) but the cost of border clearances and traveling across CAREC corridors is significantly higher, according to the latest CAREC Corridor Performance Measurement and Monitoring (CPMM) Report.

The annual CPMM report studies the time and cost of moving goods along the six CAREC corridors using sample data provided by partner freight forwarder and road carrier associations.

Data from the 2013 report shows a general reduction in border crossing time from 10.9 hours in 2012 to 10 hours in 2013.

Border-crossing time improved in all CAREC Corridors, except Corridor 1, where it surged due to long waiting time caused by limited clearance processing capacity in BCPs and more stringent rules in customs inspections. (CAREC corridor map)

Border-crossing costs, meanwhile, rose from $157 to $235 due to an increase in customs clearance fees. High volume of cargo trucks–which contribute to longer waiting time–also added to transport costs.

Average transport cost* when traveling across a corridor increased year-on-year from $999 to $1,482, driven by an increase in vehicle operating cost in Corridor 5 and increase in railway transport cost in Corridor 4.

In particular, cost in Corridor 5 surged from $1,580 in 2012 to $2,392 in 2013 as mountainous terrain and harsh winter made navigation difficult for cargo trucks in certain sections of Tajikistan.

Now in its fifth year, CPMM was introduced to monitor and evaluate the progress of the CAREC Transport and Trade Facilitation Strategy. The revised strategy, aligned with CAREC 2020 framework, was endorsed during the 2013 CAREC Ministerial Conference.

With the new strategy emphasizing the integration of transport and logistics infrastructure, the CPMM methodology will also expand and increase focus on railways and trade logistics services.

CAREC projects in transport and trade facilitation also support modernizing BCPs and harmonizing customs policies and procedures across member countries.

*The cost of traveling along a road section is measured in $ per 20-ton cargo per 500 kilometers.

(Download the CAREC Corridor Performance Measurement and Monitoring Annual Report 2013.)

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