Evaluation of a Corridor Performance Using the UNESCAP Time/Cost-Distance Methodology

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1 ADB-UNESCAP Inception Workshop on Trade and Transport Facilitation Performance Monitoring System (TTFPM), November 2013, Bangkok, Thailand Evaluation of a Corridor Performance Using the UNESCAP Time/Cost-Distance Methodology Fedor Kormilitsyn Economic Affairs Officer Transport Facilitation and Logistics Section Transport Division

2 What is the Time/Cost Distance Methodology? The UNESCAP Time/Cost Distance Methodology is the graphical representation of cost and time data associated with transport processes. The purpose of the model is to identify inefficiencies and isolate bottlenecks along a particular route by looking at the cost and time characteristics of every section along a route. The UNESCAP Time/Cost Distance Methodology enables policy makers to: compare - over a period of time - the changes of cost and/or time required for transportation on a certain route; compare and evaluate competing modes of transport operating on the same route; compare alternative transport routes.

3 Simple to use Benefits: Provides a snap-shot of the present situation Can track changes over time Possibility of comparing alternative routes Can be understood by all Powerful instrument for international cooperation

4 Benefits: Can be utilised to measure and assess the performance of any transport corridor (unimodal or intermodal) Includes both transport (road, rail, inland waterway, maritime) and intermodal transfer (ports, rail-freight terminals, inland clearance depots) as cost and time components.

5 Destination The model Day 4 Day 3 $400 $300 Transport to sea port Wait at sea port Sea transport Day 2 Day 1 $200 $100 Wait at border crossing/change transport mode Transport to border 500 km 1000 km 1500 km 2000 km Point of Origin

6 Other benefits Comparison of Border Crossings by Cost or Time Cost per TEU $700 $650 $600 $500 $400 $300 $200 $100 $131 $100 $293 $155 $124 $200 $0 Lao PDR- Thai Lao PDR- Viet Nam Mongolia- China Mongolia- Russian Fed. Nepal- India Kazakhstan- Russian Fed. *Uzbekistan- Turkmenistan * Estimated from cost of standard European 12 meter semi trailer.

7 Minimum Information Required: Route from origin to destination, including border crossings Mode of transport for each leg (e.g. Road/Rail/Sea/Air) Distance for each leg/mode Time for each leg/mode Cost for each leg/mode

8 Instructions on Data Collection for Route Analysis with the UNESCAP Time/Cost-Distance Methodology Basic template and Detailed template 8

9 9 The questionnaire All in one MS Excel file

10 Time-distance and cost-distance graphs The individual charts Time over Distance and Cost over Distance are plotted automatically as a function of the information you entered into the highlighted cells on worksheets Part A General Questions and Part B Route.

11 Back-Up: All the information in one graph

12 Objective to straighten the transport Day 4 Day 3 Day 2 line and decrease the time/cost $400 $300 $200 angle These straight vertical lines illustrate periods where the goods are inactive in the transport chain and where there is an increase in time and/or cost. Transport line Time/ Cost angle Day 1 $ km 1000 km 1500 km 2000 km

13 Example of TCD application: Tianjin-Ulaanbaatar Railway link Ulaanbaatar Tianjin Port

14 Day 4 Example of TCD application: Tianjin-Ulaanbaatar Railway link Ulaanbaatar 1700 km Day 3 Day 2 75 hrs 31 min a.m a.m. Zamyn Uud 1000 km Average speed 22.4 km/h Day 1 29 hrs 12 min a.m. 20 hrs 31 min. Tianjin, 0 km 33.7 km/h Erenhot, 983 km 1,691 km 500 km 1000 km 1500 km 2000 km Transshipment: Shunting + train formation: 3 hrs. 20 min. (3.5 min. per box) 3 hrs. 35 min. Customs: China, Mongolia, 3 hrs. 00 min. 4 hrs. 50 min.

15 Examples of TCD application: ADB CAREC CPMM

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17 Example of TCD application: ADB CAREC CPMM

18 Proposed TCD application for selected SASEC transport corridor(s) Use of TCD to measure the performance of SASEC transport corridors as the part of BPA+ Consider the establishment of the system of regular monitoring of transport corridor performance based on the available experience TCD can also be applied to compare the efficiency of road and rail corridors

19 SASEC Road Corridors

20 SASEC Rail Corridors

21 Thank you!