Trade Corridor Pilot Connects China, Mongolia, and Russia - Global Trade Magazine
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  September 14th, 2016 | Written by

Trade Corridor Pilot Connects China, Mongolia, and Russia

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  • Pilot caravan completed 1,400-mile overland trade route between China, Mongolia, and Russia.
  • Pilot caravan was an important milestone for the implementation of UN TIR Convention in China.
  • Program promotes collaboration among China, Mongolia, and Russia on customs and transportation.

The China-Russia pilot trade caravan has achieved its objective to successfully test the 1,400-mile overland trade route between China, Mongolia, and Russia, ahead of the upcoming implementation of the TIR System in China.

It completed its journey in Ulan-Ude, the capital of the Russian Federal Republic of Buryatia, where the caravan was welcomed at a closing ceremony by the Deputy Transport Minister of the Buryat government and delegations from Russia, China, and Mongolia.

The pilot caravan was an important milestone in preparations for the implementation of TIR in China, which will facilitate trade between Asia and Europe. The world’s only universal customs transit system, TIR has been in operation in Russia for over 30 years and in Mongolia for more than 10 years.

China recently ratified the United Nations Transports Internationaux Routiers (TIR) Convention, an act which will increase the potential volume of international trade in the region and provide new trade routes with access to the sea for Mongolia and other landlocked areas in Russia and Central Asia.

The caravan, organized by the transport ministries of the three countries and supported by the International Road Transport Union (IRU), an independent organization representing the international road transportation industry, comprised of nine trucks traveling together over the so-called ancient tea route.

A roundtable in Ulan-Ude at the end of the journey brought together over 80 participants from public authorities and business to evaluate the caravan and to plan ahead for future cooperation between the three countries.

Increased collaboration and information exchange between China, Mongolia, and Russia on customs, administration, transportation, and technical needs will help continue the necessary harmonization in transportation regulations and processes that IRU has long championed to improve mobility, trade, and economic development.

It was agreed at the roundtable that the trade route is already operational and adequate for future TIR transits. Some improvements in road infrastructure in certain areas were identified and would be improved. Launching a working group comprised of representatives from the three governments and possibly private sectors would help to further develop communities and economies along the route.

Dmitry Cheltsov, who leads IRU’s work in Eurasia, highlighted during the roundtable that “IRU will work closely with the Chinese government to help make TIR operational there, supporting new efficient and faster transport routes between China, Russia and Europe.”

“TIR has been used for more than 60 years in many countries and has been proven to reduce transit time transport considerably,” said Pengcheng Qu, who leads IRU’s work in China and Southeast Asia. “We look forward to seeing these benefits in China and its regional trade partners.”

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