Logistics Policy Analysis and Network Model Simulation for Cross-Border Transport in the Trans-Caspian Transport Corridor: Global Intermodal Logistics Network Simulation (GLINS) Model

The countries in Central Asia are landlocked and without coastlines. Therefore, the Trans-Caspian Transport Corridor (TCTC) will play an important role in facilitating cross-border logistics in Central Asia, particularly with land transport. To promote interregional collaborations between Central Asian countries for managing these handicaps, the Central Asia Regional Economic Cooperation Program was established through the leadership of the Asian Development Bank. We study the effectiveness of logistics policy and infrastructure development for cross-border transport along the TCTC using a simulation analysis based on a network equilibrium assignment model. The global logistics intermodal network simulation model, which we developed to cover intermodal freight transport networks (including roads, railways, ferries, and maritime shipping across the Eurasian continent) is used for policy simulation in Central Asia. In particular, the simulation incorporates the impact of the logistics policies related to cross-border transport in the TCTC, including the improvement of ferry services and rail networks along the corridor. The simulation results support the Kazakhstani approach, which emphasizes transit time reduction and transport tariffs while simultaneously enhancing cooperation within the Trans-Caspian International Transport Route Association.

WORKING PAPER NO: 1269