Euro-Asian Transport Links Expert Group Meeting - Fifth Session. Costantinos Chr. Alexopoulos International Transport & Logistics Consultant

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1 Euro-Asian Transport Links Expert Group Meeting - Fifth Session Costantinos Chr. Alexopoulos International Transport & Logistics Consultant

2 Objective of the Study Methodology Maritime Transport Rail Transport Block Trains EATL Routes and Scenarios Scenario Presentation North South Route Economics of the trains

3 Objective of the Study

4 Objective of the Study The aim of this study is to compare the existing Euro-Asian maritime routes with selected rail routes identified in the EATL project. The methodology used for the analysis strives to be simple and pragmatic. It compares Euro-Asian maritime and rail links from the perspective of a logistics manager of a company that produces in some location and needs to deliver the goods produced to some other location.

5 Methodology

6 Methodology What kind of block trains are we talking about? Euro Asia transport is about connecting China with Germany! Is there any cargo? Why to perform trains on this route? What do we really compare, when we compare Maritime with inland transport options?...apples with oranges...!

7 Methodology What do we compare? Rail Transport : USD?? Maritime Transport : 500USD?

8 Maritime Transport

9 Maritime Transport cost structure Road Transport from Shipper to Port of Origin Terminal Handling Charges at the Port of Origin Freight Rate [Port of Origin to Port of Destination] Terminal Handling Charges at the Port of Destination Road Transport from Port of Destination to final Client

10 Maritime Transport Time Schedule Shanghai Istanbul Distance: 8,003 nm Duration: days Source:

11 Maritime Transport Freight Rates - THC

12 Maritime Transport Freight Rates Other Port Costs

13 Maritime Transport Freight Rates FROM Xingang / Qingdao / Dalian [China] (USD$) TO Middle East 20` / 40/ 40`HC 20` / 40/ 40`HC DUBAI / JEBEL ALI 1,500/2,400/2,400 B.ABBAS 1,600/2,500/2,500 ABU DHABI 1,700/2,800/2,800 SHARJAH 1,700/2,800/2,800 DAMMAM 1,600/2,500/2,500 RIYADH 1,800/2,900/2,900 BAHRAIN 1,800/2,900/2,900 DOHA 1,900/3,100/3,100 KUWAIT 1,700/2,800/2,800 MUSCAT 1,800/2,900/2,900 UM QUASER 2,300/3,700/3,700

14 Rail Transport Block Trains

15 Transport of container by truck from original shipper to main train station to be loaded on the train, loading/documentation expenses Rail transport of container from station of origin to station of destination Delivery of the container by unloading station to the final documentation expenses truck from the final shipper. Unloading /

16 Rail Transport Time Schedule EU Asia CIS 26 km/hour 21 km/hour 34 km/hour id Route 1 Bandar Abbas Sirjan Distance (km) Time (hours) Sirjan Mobarakeh Mobarakeh Tabas Tabas Torbat Heydarieh Torbat Heydarieh - Sarakhs 330 Total 1,619

17 Rail Transport Tariffs Different tariffs for the same routes are quoted by forwarders and state rail organizations State rail organizations charge different clients differently. A forwarder, a shipper, a small trader with one container or a big manufacturer with 1000 containers per year pay / ask for different tariffs The actual charged - tariffs are different than the published tariffs Tariffs differ depending whether: it is bulk or container cargo it is carried in wagons or by a block train the client is a forwarder or a shipper the amount cargo is large it is long term contract with a guarantee for the quantity terms of payment are favourable or not $/ per train kilometer or per container, or container kilometers etc

18 Rail Transport Tariffs 20 full container (per container) 40 full contain er (per contain er) 20 full container (per km) 40 full container (per km) - - Armenia Azerbaijan Belarus Bulgaria China Georgia Germany Greece Afghanistan 20 empty container (per km) 40 empty container (per km) Iran 747 1, Kazakhstan Kyrgyzstan Latvia

19 Rail Transport Tariffs 20 full container (per container) 40 full contain er (per contain er) 20 full container (per km) 40 full container (per km) Moldova Mongolia ,50 Poland Romania Russian Federation Tajikistan Turkey Turkmenist an 692 1, Ukraine Uzbekistan empty container (per km) 40 empty container (per km)

20 Road Transport Costs Country Cost of road transport (in $) Afghanistan 150 Armenia 140 Azerbaijan 160 Belarus 180 Bulgaria 195 China Georgia 180 Germany Greece 250 Iran Kazakhstan Kyrgyzstan 130 Latvia 230 Moldova 150 Mongolia 120 Poland

21 EATL Routes and Scenarios

22

23 EATL Rail Route 1. Scenario 1. D Hamburg Khabarovsk E D B Berlin Potsdam A A E C C Vostochny B

24 EATL Rail Route 2. Scenario 2. D St Petersburg E E D Kaluga C Sha B B A

25 EATL Rail Route 3. Scenario 3. Varna DE D E Shanghai C B A C Tashkent A B

26 EATL Rail Route 4. Scenario 4. Almaty B Istanbul D D E E C A C Bandar Abbas A

27 EATL Rail Route 5. Scenario 5. St Petersburg D E E Pushkin D C C A B Morvarid town A Bandar Abbas B

28 EATL Rail Route 6. Scenario 6. Kiev E E D D A Odessa C Ussuriysk A B Vladivostok C B

29 EATL Rail Route 7. Scenario 7. Gdansk E Warsaw D D E C A B C Shanghai A B

30 EATL Rail Route 8. Scenario 8. Kaliningrad ED D E C B A B C Krasnodar A Novorossiysk

31 Case Study Scenario 9. D St.Petersburg E C D Hamburg B A B Vesoul C Kaluga

32 Results... Scenarios Route Rail Maritime Best Transport Means Cost ($) Time (hrs) Cost ($) Time (hrs) Cost Time 6, , Maritime Rail 4, , Rail Rail Scenario 1: EATL Route 1 Khabarovsk (Russia) to Potsdam (Germany)] Scenario 2: EATL Route 2 Hangzhou (China) to Kaluga (Russia Fed.) Scenario 3: EATL Route 3 Tashkent (Uzbekistan) to Varna (Bulgaria) 5, , Rail Rail Scenario 4: EATL Route 4 Almaty (Kazakhstan) to Istanbul (Turkey) 5, , Maritime Rail Scenario 5: EATL Route 5 Morvarid (Iran) to Pushkin (Russia) 6, , Maritime Rail Scenario 6: EATL Route 6 Ussuriysk (Russia) to Kiev (Ukraine) 5, , Rail Rail Scenario 7: EATL Route 7 Shanghai (China) to Warsaw (Poland) 8, , Maritime Rail Scenario 8: EATL Route 8 Krasnodar (Russia) to Kalinigrad (Russia) 1, , Rail Rail Case Study /Car Vesoul (France) to Kaluga (Russia) 2, , Rail Rail Manufacturer

33 Scenario Presentation

34 Scenario Presentation

35 Scenario Presentation MARITIME TRANSPORT: Almaty (via Bandar Abbas port) Istanbul (via Istanbul port) Route km Cost($) Time(hrs) , Bandar Abbas port THC costs Bandar Abbas port other costs ,711 1, days Istanbul port THC costs Istanbul port other costs Total maritime transport 6,711 2, Total road transport 2,893 2, TOTAL 9,604 4, Almaty road Bandar Abbas port by Bandar Abbas port Istanbul port by sea Istanbul port Istanbul by road

36 Scenario Presentation RAIL TRANSPORT: Almaty Istanbul Route km Cost($) Time(hrs) Almaty Almaty rail station by road Almaty rail station loading cost Almaty rail station other costs Kazakhstan by rail Uzbekistan by rail Turkmenistan by rail 469 1, Iran by rail 1,972 1, Turkey by rail 1, Istanbul rail station unloading cost Istanbul rail station other costs Istanbul rail station Istanbul by road Total rail transport Total road transport TOTAL 5, ,065 5,

37 Scenario Presentation 800 Istanbul 700 Time (hours) Istanbul Bandar Abbas 0 Almaty Road Transport Distance (km) Rail Maritime

38 Scenario Presentation 7000 Istanbul Time (hours) 6000 Istanbul 5000 Ports Costs Bandar Abbas Almaty Road Transport Distance (km) Rail Maritime

39 North South Route

40

41 400 Pushkin 350 Time (hours) 300 Pushkin Morvarid Distance (km) Rail Maritime

42 7000 Pushkin Time (hours) Pushkin Ports Costs Morvarid Distance (km) Rail Maritime

43 Economics of the trains

44 Fixed costs

45 Thank you!

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