Uzbekistan

Central Asia railway consultancy formed

Posted on by Andrew Grantham

The Transportation Consulting Ltd is a newly established consulting company that specializes in provision of professional financial and engineering consulting services in the sphere of railway sector in the Republics of Central Asia. The company reflects a well matched alliance of American and Uzbek partners who have a sober ambition to participate in railway sector development in the region.
In particular, the company has a vast interest in challenging growth of goods hauled into Afghanistan as well as augmentation of existing railway logistics systems of Uzbekistan and its transit potential.
Source: Transportation Consulting

The company has addresses in New Jersey and Tashkent. Their website has a gallery of photos of construction works on the Hairatan to Mazar-i-Sharif railway project, including something which looks rather like a passenger halt.

Inter-continental route via Riga

Posted on by Andrew Grantham

The 2010-11 brochure of the Freeport of Riga Authority (“Your Reliable Partner on the Shores of the Baltic Sea”) has a page entitled The Fastest Way to Link the EU to the CIS and Asia, showing connections between the Latvian port and central Asia.

This includes a map of the route taken by trains carrying (non-lethal) supplies to Afghanistan.

Freeport of Riga Authority map showing rail freight route between Riga and Afghanistan
A BLOCK TRAIN BETWEEN
RIGA AND HAIRATON
(AFGHANISTAN )
A dedicated block train service between
Riga and Hairaton (Afghanistan) for the
delivery of non-military goods to US troops
in Afghanistan. The train is operated by the
TransContainer company in Russia, and the
transit time is 10-11 days.

The map shows a route via Moscow, Samara, western Kazakhstan, Uzbekistan, Turkmenistan, back into Uzbekistan to what appears to be Termez, and then to Dushanbe in Tajikistan. From Dushanbe the route runs south to Afghanistan, then via Kabul to somewhere in the middle of Afghanistan, and terminates at a place which is labelled “Hairaton” but is actually about where Herat is.

Presumably if the map is correct then transport onwards from Dushanbe is by road, although I might expect that traffic for central Afghanistan would actually be transshipped at Hayratan, while that for Herat would actually go by rail to Towraghondi; maybe there are political problems with going through Turkmenistan, and these can be avoided by using the route along the Uzbek/Turkmen border on a “corridor” basis?

According to the Port Authority’s website, the Afghan traffic was due to begin in 2009:

Regular cargo transit from Riga to Afganistan to be launched

According to the Ministry of Foreign Affairs consignment goods for international forces involved into peace maintenance mission will be sent from Riga to Afghanistan in the nearest two weeks. The agreement was concluded after General Duncan McNab, the commander of the US Armed Forces Transportation Command, has visited Latvia this week. Both American and Latvian representatives specify that these cargoes will not be military ones.

It was necessary to seek for other cargo transit routes due to security situation deterioration in Pakistan. That is why certain part of goods is delivered to Afghanistan through Georgia. Riga port will be the only port in the European region. From Latvia cargo will be delivered by rail through Russia, Kazakhstan and Uzbekistan.

At present there are 500 containers at Riga port. “In the framework of his visit General McNab has visited Riga port, assessed Latvia’s participation in the process and said that everything is all right,” said high-ranking US Embassy diplomat that did not want to mention his name. The speed of transshipment of cargoes that are now in Riga will mostly depend on freight forwarding companies and countries involved into transportation chain. It is planned that several cargo trains will be sent from Riga to Afghanistan every week.

Source: Freeport of Riga Authority, 2009-05-08

A train seems to have run in February 2009,1 although NATO only announced a first trial shipment from Riga on 14 May 2010, arriving in Afghanistan on 9 June.2 There seem to various subtleties about NATO or individual countries making shipments, and lethal and non-lethal cargoes.

As well as the USA, other NATO members have sent supplies by rail via Riga. The first trains with cargos of the Great Britain, Belgium and Spain arrived already in May 14 [2010]. The cargos comprise construction materials, food. To a certain extent it is connected with safety of the cargos which is difficult to guarantee, for example, in Pakistan where a train of NATO cargos has already been attacked. 3

Railway not in use yet

Posted on by Andrew Grantham

“Hairatan-Mazar Railway Not Yet Utilised” writes Tamim Shaheer at Tolo News on 12 April 2011.

The work of the railway connecting Hairatan border with the northern city of Mazar-e-Sharif has not been completed as planned. … The Afghan Ministry of Public Works said an operational team is to come to Afghanistan from the neighboring Uzbeskistan to help speed up the work.

The Ministry says the construction company is to employ 600 workers soon to complete the project so that the railway can be utilised soon.

[More…]

Press conference on US-Uzbek relations

Posted on by Andrew Grantham

Press Conference

Robert O. Blake, Jr. Assistant Secretary, Bureau of South and Central Asian Affairs
U.S. Embassy Atrium, Tashkent, Uzbekistan
February 18, 2011

[…]
Assistant Secretary Blake: […] I noted that the Unites States highly values Uzbekistan’s support for international efforts in Afghanistan, including allowing the transit of non-lethal supplies for NATO troops in Afghanistan, the provision of electricity to Afghanistan, and the construction of a railway line from Hairaton to Mazar-e Sharif.
[…]

Question: Are you looking at the possibility of transporting military supplies through Uzbekistan?

Assistant Secretary Blake: The supplies that are transiting through Uzbek territory are all non-lethal supplies. Once again I would like to express the appreciation of the United States for the Government of Uzbekistan’s support in this regard.

[…]

Question: What can you say about the Northern Distribution Network? And do you have any statistics on how many containers, how many tons of cargo have moved through Uzbekistan? And another question is – how much is the government of Uzbekistan paid for the transit of one container?

Assistant Secretary Blake: I’m afraid this is a bit too detailed for a non-specialist like me. I suggest you contact the Central Command. They might be able to provide some of that information. But I’m flattered that you think I might know that.

Source: US State Department, 2011-02-18

Increase in Uzbek rail tariffs

Posted on by Andrew Grantham

FMN Logistics Responds to Increased Uzbek Rail Tariffs

Rising tariffs will affect wide range of NDN operations

(Tashkent, Uzbekistan, February 3, 2011) – FMN Logistics, Inc., a provider of freight forwarding and logistics services, today responds to the recent significant tariff increase imposed on Northern Distribution Network (NDN) rail cargo by Uzbekistan Temir Yullari (UTI), the national railroad of Uzbekistan. UTI levied a tariff increase effective on February 1st on consigned shipments for United States and International Security Assistance Force (ISAF) non-lethal rail cargo into and out of Afghanistan.

“FMN Logistics is following these developments very closely,” said Harry Eustace, Jr. CEO of FMN Logistics. “We are communicating with our customers and all of our partners in Central Asia to ensure that everyone fully understands how this tariff hike will impact shipping operations into and out of Afghanistan. Our goal is to assure that there is no disruption to important deliveries of food and other non-lethal cargo movements.”

About FMN Logistics

FMN Logistics is a specialist freight forwarding and logistics service provider with headquarters in Washington, DC and operations throughout Central Asia and the Middle East. In 2010, FMN delivered over 2,500 cargo containers to Afghanistan for US and ISAF forces. FMN is the largest volume logistics service provider in Central Asia for Operation Enduring Freedom.
Source: Fifth Millennium Networks, Inc, 2011-02-03

Agreement signed for north-south corridor studies

Posted on by Andrew Grantham

This looks potentially significant, although the words if feasible are probably quite important. I will try to study the announcement in more detail later this week.

MINISTER SHAHRANI SIGNS HISTORIC RAILWAY AGREEMENT

Kabul: September 22, 2010

Mines Minister Wahidullah Shahrani today signed an historic agreement with the China Metallurgical Company (MCC) for a railway to connect Kabul to Pakistan and Uzbekistan.
This northern railway project is part of the Aynak Copper Mine Contract, signed between the Government and MCC. The contract specifies that MCC constructs a railway, if feasible, from northern Pakistan through Kabul to southern Uzbekistan. This rail link will connect Afghanistan to the railways of Pakistan, India, and South East Asia and to the extensive rail system of China, Europe and Central Asia.

Minister Shahrani said, ‘When complete, the railways will give substantial benefits for the Afghan economy in trade, employment and cheaper prices. This northern railway is part of a wider plan to extend the Afghan rail network to connect Afghanistan to ports in Iran and Pakistan.’

The next step is for MCC to commission and fund a competitive tender for a feasibility study to examine the preferred route proposed by the Government’s Inter-Ministerial Railway Committee. It will take up to two years for the detailed route study and another six months to complete the full feasibility study.

The feasibility of the second part of the railway, from Kabul through Bamyan, Doshe, Kunduse, Niadabob, Hairetan and on to Uzbekistan, will be studied for an additional 18 months with construction to follow.

MCC will build the railway according to the ‘BOOT’ principle – ‘Build, Own, Operate and Transfer’. MCC will own the railway until it has recovered its capital costs through collecting transport fees. The details of the BOOT Agreement will be negotiated once the Government have approved the feasibility study prepared by a independent contractor funded by MCC.

The railway will be designed to have the size and capacity to carry the heaviest of loads – copper cathodes, copper concentrates, and commercial goods for transit, agricultural products, passengers and normal freight.

MCC will employ Afghan labor as much as possible in the construction and operation of the railway. Prior to the transfer of ownership to the Government, MCC will complete a training program for Afghan workers to operate the railway. The training will range from

basic functions to high level executive management.
Estimated costs for the entire railway range from US $ 4 –5 billion. Completion of the entire route could be within five years from starting the detailed route survey.

Benefits
The opening the new railway will bring many benefits to Afghanistan. Costs of goods and services will fall due to lower transportation costs. Huge economic and social development opportunities will arise along the rail route as companies switch from road to rail transport. The mining and extractive industries will become more cost effective along the resource corridor developed with the railway.
Source: Ministry of Mines, 2010-09-22

Problems with transport in Uzbekistan

Posted on by Andrew Grantham

A EurasiaNet article by Deirdre Tynan discussing “a morass of inefficiency, arbitrariness and “informal” payments” in Uzbekistan.

Documents Highlight Problems with Uzbek Corridor of Afghan Supply Route

June 28, 2010

Responses to a Pentagon-issued request for information about sourcing fuel in Uzbekistan appear to suggest that the Uzbek-Afghan corridor of the Northern Distribution Network (NDN) is a morass of inefficiency, arbitrariness and “informal” payments.

In documents obtained under the Freedom of Information Act (FOIA), respondents to the Pentagon query made stark comments about severe delays at the Uzbek-Afghan border, and one – a major partner to USAID in Afghanistan – said corrupt payments “might be required to keep business moving.”

The NDN is a supply line for troops serving in Afghanistan spanning Europe, Russia and Central Asia. It was developed by US Transportation Command, US Central Command, Defense Logistics Agency, and the State Department, in conjunction with a variety of regional commercial and governmental actors. [For background see EurasiaNet’s archive [1]].

In August of 2009, the Defense Energy Support Center (DESC) solicited preliminary procurement evaluations from commercial companies in a query titled “Sources sought within the Republic of Uzbekistan for Products and Services in Support of Operation Enduring Freedom (OEF).” The query specifically sought information covering possible diesel, motor fuel and aviation fuel supplies.

According to the FOIA request submitted by EurasiaNet.org, eight companies responded to the DESC query. But only six responses were made available to EurasiaNet.org under the FOIA. Two responses, one from FMN International, the parent company of FMN Logistics, a firm that has strenuously denied any financial connections with the disgraced Uzbek conglomerate Zeromax, and another from NCS Fuels, were deemed “un-releasable.” [For background see EurasiaNet’s archive [2]].

One response – from Milio International Ltd, a company working in the fuel business in the former Soviet Union since 1997 – contended that “Uzbek Railways frequently (often for some period of time each month) bans all rail traffic going to the destination of Hairaton, Afghanistan. This is due to the thousands of rail cars both empty and full of all types of goods that have congested the rail stations for the past year while waiting to get to Afghanistan […] this is especially the case around the Termez and Karshi areas.”

Rail cars from the Baltic states and Russia also get “blocked from time-to-time,” the Milio response noted.

Meanwhile, Afghan Management Group (AMG) said rail transport from Bukhara, Uzbekistan, to Hairaton “with no ‘speed up fee’ takes up to 35 days.” But with “payment of informal fees, the time can be reduced to 7 to 18 days, (depending on amount of money paid).”

When asked to describe “the known impacts related to fuel specifications, taxes, transit leases/approvals, other local laws and challenges you may expect to face,” AMG outlined the payment of “informal fees” as a major challenge in Uzbekistan.

“Apart from refinery fees and transport costs, there are no taxes to be paid in Uzbekistan. However, payment of informal fees to authorities and individuals might be required to keep business moving,” the AMG response said.

“One of the biggest problems in both countries involved is the fact that rules are changing overnight and very frequently. To cope with this issue requires good contacts to authorities and flexibility to adapt own processes to a new situation,” the AMG response added. “AMG/Partner is very reluctant to pay bribes, but manages issues through established good relationship to authorities involved.”

AMG is listed as an “implementing partner” to USAID in Afghanistan. According to both USAID and AMG’s websites, “AMG is a leading firm supporting the reconstruction of developing nations, like Afghanistan, while promoting economic growth and higher living standards among the people of those nations.”

In another DESC response, Agility, one of Defense Logistics Agency’s top-100 contractors, said fuel trucks could be used as an alternative to the “normal delays” experienced at the Termez-Hairaton railway crossing.

“Government taxes and leases will always present challenges,” the Agility response added. However, initial talks with “government and commercial officials” signal that “they are willing to work with the United States to find suitable business arrangements.”

FMN, a firm that did not have its response to the Pentagon query released, reportedly maintained a strong relationship with Zeromax. According to a document available from the American-Uzbekistan Chamber of Commerce’s website, FMN Logistics purported to be capable of carrying out “rail cargo operations coordinated out of Tashkent using Zeromax Rail Code.” [For background click here [3]].

“Based on local presence, FMN Logistics and Zeromax Logistics transit times into and through Uzbekistan are half those of major shippers […] FMN Customs brokerage clearance services can cut Uzbek transit times in half,” the company asserted.

According to FMN’s website, “FMN was formed on 8 September 1999 as a domestic US corporation. The shareholders were, and remain its founder, Harry F. Eustace, Sr. and members of his family.”

“In 2009, FMN formed a subsidiary, FMN Logistics, with Harry F. Eustace, Jr. as its CEO and whose shareholders are the Eustace family plus David O’Connor, a Canadian citizen. FMN Logistics’ prime mission is to serve the US war fighter in Afghanistan by providing effective logistics solutions throughout the Central Asian Theater,” the website added.

The NDN carries 30 percent of goods delivered to US troops in Afghanistan, according to a White House statement on June 24.

Copyright (c) 2010 Open Society Institute. Reprinted with the permission of the Open Society Institute, 400 West 59th Street, New York, NY 10019 USA, wwwEurasiaNet.org

Photos of the Friendship Bridge

Posted on by Andrew Grantham

Some photos on Flickr. Some of the captions refer to the “Freedom Bridge”, though the road-rail crossing of the Amu Darya between Hayratan and a point east of Termez is usually called the “Friendship Bridge”.

100527-N-1928O-064

BALKH PROVINCE, Afghanistan (May 27, 2010) —An Afghan Border Policeman stands watch on the Freedom Bridge crossing the Amu Darya River. On 15th February, 1989 the last Soviet troops to withdraw from Afghanistan crossed the bridge into the, then, Uzbek Soviet Socialist Republic. The bridge now carries rail and vehicular traffic and is the only border crossing between Afghanistan and Uzbekistan. (U.S. Navy photo by Petty Officer 1st Class Mark O’Donald)

Balkh Province in Afghanistan
BALKH PROVINCE, Afghanistan (May 27, 2010) — General Stanley McChrystal, commander of NATO’s International Security Assistance Force, speaks to Afghan media during a visit to the Freedom Bridge in the town of Hairatan. The bridge, which crosses the Amu Darya River between Afghanistan and Uzbekistan, carries both rail and vehicular traffic. (U.S. Navy photo by Petty Officer 1st Class Mark O’Donald/Released)

Visiting with Afghan Border Police
BALKH PROVINCE, Afghanistan (May 27, 2010) — General Stanley McChrystal, commander of NATO’s International Security Assistance Force, speaks with Afghan Border Police officials on the Freedom Bridge crossing the Amu Darya River. On 15th February, 1989 the last Soviet troops to withdraw from Afghanistan crossed the bridge into the, then Uzbek Soviet Socialist Republic. (U.S. Navy photo by Petty Officer 1st Class Mark O’Donald/Released)

5th Zone ABP border crossing point to Uzbekistan
Heryatan – Afghan Border Police(ABP) and coalition forces tour the bridge seperating borders at 5th Zone ABP border crossing point to Uzbekistan June 8, 2010. The 5th Zone ABP guard all provinces of Regional Command North, being responsible for defending all borders against enemy threats and counter narcotics. (U.S. Air Force photo/ Staff Sergeant Matt Davis)