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Goran ANDREEV
Consultant, ESCAP
15-16 December 2020
Strengthening Subregional Connectivity in
East and North-East Asia through Effective
Economic Corridor Management
Training-Workshop Series: Workshop 2
Lecture: Railway Transport
Outline
1. Emerging trends in international railway transport
2. Enhancing interoperability for facilitation of international railway transport
3. Electronic information exchange for facilitation of border crossing by rail
Case Study: Electronic information exchange between railways and Customs in
Russian Federation and INTERTRAN Project
4. Use of new technologies for efficient and secure border crossing by rail
5. Facilitation of Customs transit procedures for international railway transport
6. Joint border controls and streamlined border crossing
Case Study: Border crossing at Rezekne railway station (Latvia)
7. Corridor management mechanism for railway transport
1. Emerging
trends in
international
railway
transport
1.1 Railways
as a part of
sustainable
economy
1.2 Railways
as a basis
for
international
connectivity
1.3 Railways
as a part of
overall
logistics
solutions
1.4
Reliability
and
resilience of
railways
Railways as a part of Sustainable Economy
Source: SLoCaT (2018). Transport and Climate Change Global Status Report 2018.
Railways on global level:
▪ 8% of passenger transport
▪ 28% of surface freight transport
Only 3% of global transport
CO2 emissions from railway
By 2050 global projected freight
transport demand will triple
Transit traffic in Central Asia will
increase by 6% per year until 2050
Potential for increased freight flows
in Mongolia is substantial
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
2015 2030 2050
Sea Road Rail Inland waterways Air
bill. t-km
OECD/ ITF (2019), “Enhancing Connectivity and Freight in Central Asia
Global freight transport demand by mode of transport
Source: OECD, 2019, ITF Transport Outlook 2019
Railways as a part of Sustainable Economy
Sustainability
advantages of railway
in comparison to road
transport
costs per 1,000 ton-km (EUR)
▪ Shift-to-rail initiatives
- smart client-oriented solutions
▪ Green technologies
▪ Green financing
National & International
policies, strategies,
initiatives
Source: Rail Freight Forward, 2018, White paper: 30 by 2030
Railways as a basis for
International Connectivity
▪ “Soft” - operational connectivity
• access to railway services,
interoperability, facilitation of
cross-border railway operations
and
• regulatory controls of border
crossing agencies
(Customs, border control, sanitary
and quarantine agencies)
Figure Source: ERA
▪ Hard” - physical (infrastructural) connectivity
• Intergovernmental Agreement on the
Trans-Asian Railway Network (2009)
• Belt and Road Initiative
• Eurasian Economic Union (EAEU)
coordinated (agreed) transport policies
• Program of China-Mongolia-Russia
Economic Corridor (2016)
• Bilateral railway transport / transit
agreements (Mongolia – China /
Mongolia – Russian Federation)
• International Convention on the
Harmonization of Frontier Controls of
Goods (1982) (Annex 9 on Facilitation of
border crossing procedures for
international rail freight)
• WCO Revised Kyoto Convention (1999)
• …
Examples of
instruments and
initiatives that
support
international
connectivity
Expanding favourable environment
for realization of coherent
connectivity policies
Railways as a part of overall logistics
• Traditional markets vs. changing markets & requirements
• Railway operational efficiency and overall supply chain view
• Addressing fragmentation of networks
• Integrated planning and investment
• Reduction of inefficiencies and reductions of costs
• Increased cooperation with stakeholders (shippers, freight
forwarders and third-party logistics providers – e.g. affiliated
companies / mutually arrangements)
Reliability of railway operations
Source: UN ESCAP, 2020, Study on Smart Solutions for Railway Transport
Physical reliability Non-physical reliability
▪ from traditional to predictive
maintenance
▪ automation of
mainline/shunting operations,
including driving
▪ use of new digital tools for
data-driven operations and
maintenance: sensors, e-
seals, drones, etc.
▪ calculation of ETA with
improved accuracy (e.g.
with use of AI);
▪ e-data exchange, including
pre-arrival exchange;
▪ construction of trusted
digital ecosystems for
transportation and cargo
data sharing
▪ Reliability and competitiveness of railways
Resilience of Railways
Disinfection tunnels at Iranian railway border crossings Source: UIC,
June 2020, MANAGEMENT OF COVID-19: RAILsilience
▪ Dealing with COVID-19 pandemic
• challenges and opportunities
▪ Long lasting impact
• need for higher predictability and
reliability
• less dependence on human factor
• less physical interaction
• harmonization of border-crossing
issues
• automation and information
interchange
Discussion
▪ What are the policies of Mongolia regarding railways as a
part of sustainable economy?
▪ Could you briefly describe some related initiatives / projects
already launched?
▪ What are the lessons learned from such projects ?
Technical Interoperability
Legal Interoperability
Operational Interoperability
2. Enhancing
interoperability
for facilitation
of international
railway
transport
▪ From individual national railways
networks to interoperable and well-
connected railway corridor
▪ Comprehensive approach to railways
interoperability
▪ Focus on:
o common parameters for interoperability
o border crossings
o non-physical barriers
Technical Interoperability
▪ Common technical parameters of railways infrastructure and rolling
stock: track gauge, structure and loading gauge, maximum axle load,
train length, rolling stock technical specifications (vehicle authorization
and safety certification), etc.
▪ Break of gauge 1,520 mm - 1,435 mm gauge
▪ Efficient of break of gauge operations
– transshipment of containers (preferred option)
– Change of bogies
– Variable-gauge bogies (specific circumstances only)
▪ Efficient operational practices to address lack of interoperability based on
advanced information exchange between the railways
Key elements for increased efficiency of
break of gauge operations
Sufficient rail tracks with
both gauges
Sufficient capacity of
facilities (side-tracks,
platforms, container yards)
Available equipment
(gantry cranes
reach-stackers;
bogie-changing stations)
Increased automation of
loading/unloading,
container transfers and
shunting
Efficient coordination
between railways for
organization and
optimization of processes
Efficient coordination
between railways and
wagon owners,
loading/unloading service
providers, container yard
operators
Organization break of
gauge operations in parallel
with other border crossing
railway operations and
control formalities
Transshipment of containers
• directly and simultaneously
• through container yards
• automation of loading/unloading
Watch: New China TV video on
Alataw Pass transshipment
warehouse
Alashankou transhipment station (China), Source: ADB
Manzhouli Port (China), Source: Photo Xinhua
Discussion
▪ What are the experiences
of dealing with break of
gauge at Erlian (CN) –
Zamiin-Uud (MN) border
crossing ?
▪ What is the status of new
transshipment Zamiin-
Uud Regional logistic
park (benefits and
remaining challenges) ?
Source: Ministry of Road and Transport Development of Mongolia
Development of transshipment capacities
at: Zamiin-Uud Regional logistic park
Legal Interoperability
▪ Unified contractual obligations to customers from origin to destination
▪ OSJD Agreements e.g.:
• on the International Railway Goods Transport (SMGS)
• on Rules for the Use of Freight Wagons in International Traffic (PGW)
▪ Bilateral arrangements (based on OSJD rules)
▪ Harmonization of transport law in OSJD members and COTIF
▪ Common CIM / SMGS consignment note
CIM/SMGS consignment note
▪ Implements both contracts of carriage
(sum” of the CIM and SMGS consignment
notes, liability conditions)
▪ Recognized as a Customs and bank
document
▪ Expanding the use of CIM-SMGS
▪ Use of electronic CIM/SMGS
▪ Functional, legal and technical
specifications for the electronic CIM/SMGS
Consignment Note (CIT/OSJD, July 2019)
▪ Paperless pilots and next challenges
Operational Interoperability
Harmonized operation practice over entire
international corridor
• Operational interoperability of railways (e.g. harmonized
international train timetables, train composition, traffic
management, handover of trains, changing of locomotive and
train crew, technical inspections and maintenance of wagons..)
• Operational interoperability of other entities (Customs and
OGA); (harmonized documents for Customs transit,
recognition of Customs control measures...)
Common operational parameters
categories:
Operational Interoperability
▪ Target: improvement of
efficiency and
competitiveness (time,
service quality, tariff)
▪ Depends on the level of
technical and legal
interoperability
▪ Relations with customers and
other stakeholders
▪ Complexity, priorities, and
jointly agreed strategies on
corridor level
3. Electronic
information
exchange for
facilitation of
border crossing
by rail
▪ Between Railways
▪ Among railways and
control authorities
Automated Information Systems of
Railways
▪ Communication interface with clients,
business partners and other railways
undertakings
▪ Transport operation planning, processing of
railway transport documentation, automation
of traffic control, transport operations
support, cross-border data exchange
▪ Digitalization and automation for
optimization and facilitation
Electronic information exchange
between railways
TAF
(EU, COTIF)
EDI, SMGS
(OSJD)
MESPLAN,
train
handover
sheet,
tracking
(CIS CRT)
▪ Independently developed
systems
▪ Lacking interfaces
▪ Aimed at facilitation of
international freight traffic
▪ Common essential
exchangeable information
Electronic information exchange
between railways
Source: ERA, 2020
OSJD - ERA
Contact Group
mapping between
TAF TSI and
corresponding
OSJD messages
Electronic information exchange
between railways
Numerous supporting IT tools
- RailData (ORFEUS, ISR)
- Rail Net Europe (RNE)
(CCS, PCS, TIS)
- HIT Rail (HEROES, Hermes)
- UIP (RSRD2)
- Infoset-21
- …
TAF TSI Supporting IT Tools, Source: ERA, 2019
XML and UN/EDIFACT standards
Electronic information exchange between
railways
▪ EDI agreement between the railways
▪ Establishing adequate information systems and
infrastructure for electronic exchange
▪ Mutual recognition of the electronic signatures
▪ Paperless electronic document processing
– empty wagons
– transport of goods
.
.
.
Cross-border electronic exchange
between JSC RZD and AO NK KTZ
Source: OSJD Leaflet R 941-4
Electronic information exchange
among railways and control authorities
▪ Communication interface between IT systems of
railways, Customs and other control agencies
▪ Support for completion of Customs and OGA
formalities (border security, immigration, sanitary and
phytosanitary, veterinary and food safety)
▪ Pre-arrival information (regarding cargo declaration
and entry into Customs territory – security and safety)
▪ Customs transit (simplifications and railways as AEO)
Electronic information exchange among
railways and control authorities
Challenges:
▪ lack of harmonized data requirements (e.g. goods classification,
railways and Customs data sets, Customs requirements along
the corridor)
▪ different level of automation and development of interfaces
▪ authentication and legal requirements for acceptance of
paperless electronic documents
▪ complex, extensive requirements from multiple authorities
WCO standards and recommendations (e.g. WCO RKC,
WCO SAFE Framework of Standards, WCO Data Model)
Case Study: Electronic interaction
Railways - Customs in Russian Federation
Source: RZD 2019
Electronic information interaction between FCS of Russia and JSC RZD
Case Study: Electronic interaction
Railways - Customs in Russian Federation
Source: RZD 2019
Information flows with electronic interaction between RZD and FCS of Russia
Case Study: Project INTERTRAN
Project INTETRAN, Source: RZD
▪ Electronic interaction between the stockholders at ports and railway stations,
▪ Increased use of paperless technology (up to 30 transport document in fully
electronic form, mobile workstations for paperless processing)
▪ Optimization of railway operations at ports / railway stations; and
▪ Paperless Customs transit procedures for rail (e.g. fully electronic transit
declarations and electronic closing of Customs transit procedure).
Case Study: Project INTERTRAN
Project INTERAN, Source: RZD
▪ Phase I (2018-2019) intermodal transport in import direction to Russian Federation
▪ Phase II (2019-2020) transit movements across Russian Federation
▪ Gradual expansion on piloting of routes (destination/transit stations)
Case Study: Project INTERTRAN
Project INTERAN, Source: RZD
Watch PROSTO Production
Video: INTERTRAN
Benefits from electronic information exchange
among railways and control authorities
▪ Improved communication / coordination
▪ Reduced paper-based processing, automation
▪ Reuse of data & reduction of multiple data entries
▪ Improved data accuracy and reliability
▪ Optimization of organization of transport operations and controls
▪ Improved risk management
▪ Simplifications for Customs procedures
▪ Reduced time for Customs procedures and streamlined control formalities
▪ Accelerated transport operations & reduced costs of transport
Impact of E-Interoperability
Source: UIC/IEC, 2020, Eurasian corridors: development potential.
Discussion
▪ What are the experiences and status of electronic
information exchange of UBTZ with Russian Railways and
Chinese Railways (including use of e-signature
technologies)?
▪ What are the experiences and status of electronic
information exchange of UBTZ with Mongolian Customs?
▪ What are the benefits and remaining challenges of
electronic information exchange between railways, and
railways and Customs in your country?
4. New
technologies
for efficient and
secure border
crossing by rail
Automated and non-
intrusive inspections
Electronic tracking
with e-seals
Automated and non-intrusive inspections
▪ Railway inspections and regulatory controls
(e.g. Customs)
▪ Targeting efficiency and security aspects
▪ Collecting data while the train is in motion
(dynamic control)
▪ Use of electronic systems to compare and analyse
data, detect irregularities and suggest further actions
(automation)
▪ Control of goods, transport means without physical
interference (non-intrusive inspections)
Automated and non-intrusive inspections
Individual systems
▪ electronic dynamic weighing scales
▪ video surveillance
▪ scanning systems
Positioning
Data sharing
Data usage
Dynamic weight scales, Photo Source: Information Ministry of the Republic of Latvia
Automated and non-intrusive inspection
Multifunctional intelligent gate systems:
▪ detecting, imaging and video processing
▪ optical character reding (OCR) (wagon/container numbers identification)
▪ laser scanning (oversize cargo control)
▪ heat, chemical sensors etc.
Watch Lithuanian
Railways Video:
Automated train
inspection system
Source: Lithuanian Railways, 2015 (Kena border crossing)
Automated and non-intrusive inspections
▪ X-ray and gamma-ray scanning of
containers/wagons
▪ Radiation detectors
▪ Electronic and video surveillance
systems (movement in controlled areas) Stationary radiometric gates and control panel,
Source: Information Ministry of the Republic of Latvia
Dynamic X-Ray scanner, Source: Information Ministry of the Republic of Latvia
Minimized interruption of
railway freight traffic
Risk management and
increased security
Electronic tracking for secure border
crossing
▪ Integrated technologies: satellite positioning systems, cellular
communication systems, RFID enabled e-seals, advanced web-based
software and computer networks
▪ Use of e-seals:
• mandatory/conditional/voluntary
• single country / multi country
▪ E-seals characteristics:
• mechanical/electronic security
• active / passive
• integrated electronic tracking or
connected to additional tracking
device
Adapted from ESCAP Secure Cross Border Transport Model
Electronic Cargo Tracking System (ECTS)
– India
▪ Facilitation of traffic-in-transit of third-party
imports for Nepal (by road and rail)
▪ MoU India/Nepal & India Customs regulation
▪ Registration at website of Manged Service
Provider (Transecure)
▪ Electronic sealing and GPS tracking
▪ Support for electronic Customs Transit
Declaration (e-CTD)
▪ Automatic reconciliation/discharge of transit
with ECTS "trip-report”
▪ Reduced container turnaround time and
avoided demurrage/ detention charges Source: Transecure, 2019 Presentation on ECTS
GLONASS Electronic navigation seals in
Russian Federation
▪ Russian Federation regulation related to permission of transit to
certain sanctioned goods (by road and rail)
▪ Roles of transport and Customs authorities, sealing operator and
transport carriers
▪ Electronic sealing and GLONNASS
tracking
▪ Sealing Operator: Digital Platforms
Development Center (CRCP) website
operations and sealing services
▪ Tested within Russian Federation and
joint EAEU pilot
ЦВКЕ.464425.006 navigation seal (Source: CRCP User manual)
Benefits from electronic tracking
▪ Enhanced safety and security against unlawful intrusion and
smuggling
▪ Increased confidence in properly conducted transit movements
▪ Increased efficiency of Customs clearance if accompanied by:
• reduction of paper-based procedures
• simplification of Customs formalities (e.g. waiver of guarantee, less
physical inspections)
▪ Faster turnaround time, lower insurance costs
▪ Higher quality of customer services (own cargo tracking)
▪ Potential for expanding to electronic tracking of cargo conditions
(if additional sensor technologies are employed)
Discussion
▪ What are the new technologies already employed at
Mongolian railway border crossings? How they contribute to
increased efficiency at border crossing inspections and
controls ?
▪ What are the possibilities for further improvement and
information sharing of data collected from new technologies
in Mongolia?
▪ What are the relevant benefits and challenges for
implementation of electronic tracking in your country?
5. Facilitation
of Customs
transit for
international
railway
transport
Railway consignment note as
a Customs document
Potential for new international
railway Customs transit
arrangements
Facilitation of Customs transit for
international railway transport
Customs transit challenges:
▪ Lack of harmonized Customs procedures along corridor
▪ Diverse advance information requirements
▪ Different Customs transit documents
▪ Requirements for re-sealing by Customs
▪ Burdensome/repetitive regulatory procedures (Customs and other)
▪ Repetitive inspections of goods, containers, rolling stock
Increased complexity, costs and delays
Use of railway consignment note as a
Customs document
▪ Common railway consignment note (SMGS, CIM-SMGS)
▪ Annex 9 on Facilitation of border crossing procedures for
international rail freight of the International Convention on the
Harmonization of Frontier Controls of Goods (1982)
▪ Reuse of already available railway data / documents as Customs
transit document
▪ Facilitation of border crossing formalities, reduced involvement of
intermediary parties
▪ Paper-based, dual and paper less format of railway consignment
note
Use of railway consignment note as a
Customs document
▪ National / Customs Union Customs requirements
• Entry/exit in/from Customs territory (e.g. pre-arrival info)
• Customs transit procedures
▪ Role of the carrier (railways / representative) as declarant / principal
▪ Harmonization based on WCO Instruments (cargo / goods)
• RKC (Specific Annex A and Specific Annex E Customs transit)
• WCO SAFE FoS (e.g. recommended time limit)
• WCO Data Model (e.g. advance cargo declaration / goods
declaration datasets)
Use of railway consignment note as a
Customs document
▪ Customs transit declaration (rail)
• In electronic format - from already available data elements in railway
consignment note (additional data elements; supporting docs)
• In paper-based format - equivalent of paper-based railway consignment note
(no additional Customs document) (supporting docs)
▪ Implementation differs e.g. in EAEU, EU, other countries
▪ Customs transit procedure based on EU Customs regulation and
Convention on a common transit procedure:
• simplified paper-based procedure - CIM (CIM/SMGS) as Customs document
• standard paperless procedure (NCTS) - paper CIM as transport document only
• standard paperless procedure (NCTS) - reuse of e-CIM/e-CIM-SMGS
Paper-based transit procedure for rail based on
European Convention on a common transit
Source: European Commission, May 2019, Transit Manual Amendment
Simplified railway Customs transit
procedures in Turkey
▪ Entry summary declaration and arrival notification submitted
electronically to the Customs authorities
▪ Turkish Railways as AEO for simplified Customs transit procedure
(Turkish Customs legislation and Convention on Common Transit Procedure)
▪ Paper-based CIM consignment note as a Customs transit declaration
+ electronic data exchange between the Turkish railways and Customs
(minimal info only: wagon number, CIM number, shipment date, Customs offices)
▪ Electronic signature technologies and interconnected Customs offices
Concept on new International Railway Customs Transit
Country A Country B Country C Country D
National Transit A
Outward Transit
National Transit B
Through Transit
National Transit C
Through Transit
National Transit D
Inward Transit
International Customs Transit
Framework Agreement for harmonized international Customs transit principles
CN
as
CTD
e-CTD
(R2C)
based
on
R2R
Guarantee
waiver
Harmonized
procedure
International
cooperation
Railways
as
AEO
Multilateral Customs Transit Agreement between B, C and D
Bilateral Customs Transit Agreement between A and B
Electronic information exchange under the concept of new
International Railways Customs Transit System
(distributed solution)
Country B, C
Forwarding
Station
Customs
Office of exit
(en route)
Customs
Office of
departure
Customs
Office of exit
(en route)
Customs
control
Customs
Information
System
No Transit
Guarantee
Railway Seals
No Customs Seals
CIM/SMGS
Country A Country D
CIM/SMGS
CIM/SMGS
Customs
Office of entry
(en route)
CIM/SMGS CIM/SMGS
Customs
Information
System
No Customs
Formalities
Exit
Notification
•Risk
assessment
Arrival
Notification
Access to
Railway’s
Systems
Customs
Information
System
No Transit
Guarantee
ECTD
Customs
Office of entry
(en route)
Customs
Office of
destination
CIM/SMGS
Arrival
Notification
Departure
Notification
Arrival
Notification
Destination
Notification
R2R key messages
No Transit
Guarantee
•Risk
assessment
•Risk
assessment
Customs
control
Record
the exit
Record
the exit
Record
the entry
Record
the entry
International Customs Transit
Discussion
▪ What is the experience in using railway consignment note
as Customs transit declaration in your country? Is it possible
to further facilitate organization of Customs transit on
national level ?
▪ What are your views on the suggested concept of a new
International Railways Customs Transit System?
6. Joint border
controls and
streamlined
border
crossing
Joint border controls
within a country
Single stop inspections at
joint border crossings and
no-stop border crossings
Single window facilities
for railway transport
Joint border controls and streamlined
border crossing
Border crossing challenges:
▪ Manual and paper-based
processing
▪ Inefficient transport / logistics
coordination
▪ Lengthy and uncoordinated
regulatory controls
Inordinate delays and increased costs
Smart solutions:
▪ Digitalization and electronic
information exchange (R2R, R2C…)
▪ Automation of processing
(loading/unloading, new tech.)
▪ Use of railway consignment
note as a Customs document
Reorganization and streamlining
Joint border controls within a country
▪ Coordination of railway inspections and regulatory controls
(separately in exit and entry country country)
▪ Transfer of border control responsibilities (e.g. to Customs)
▪ Single window inspection principles (example Russian Federation
– e.g. first level examination SPS documents by Customs)
▪ Joint border inspection teams
• Arrival / Departure (Railways, Customs, Border Guards)
• Clearance (Customs, OGA)
Efficient electronic
information exchange
Common control location
and joint use of equipment
Single window facility for railway
transport
▪ Links multiple:
- stakeholders (private and public)
- sources of information
- information systems
▪ No resubmission of
same/similar info
▪ Risk management and
efficiency of controls
▪ Regulatory SW linked/integrated with digital logistics platforms
National Transport and Logistics Public
Information Platform (LOGINK) in China
▪ Exchange of logistics info
across entire supply chain
▪ B2G, G2B, and B2B exchanges
▪ Railway info: e.g. carrier
registration, e-booking, freight
rates inquiry, tracking, e-waybill
▪ Customs clearance interface
▪ Cross-border connection -
NEAL-NET (China, Japan, RoK)
Source: ESCAP, 2016, Regional Study: The use of Logistics Information Systems for increased efficiency and effectiveness
Single stop inspections at joint border
crossing
▪ Only one common border
station (entry or exit)
▪ Railway interchange station
and all railway processes
▪ Common inspection area for
control procedures of both
countries (e.g. Customs, OGA)
▪ Example: Padang Besar
Malaysia (passenger trains)
Case Study of Rezekne (Latvia) railway
border crossing
Video surveillance from the Rezekne control room,
Source: ESCAP/OSJD 2016
▪ Minimal operations at border and
transfer of operations/controls at next
major station
▪ Advance information R2R, R2C
▪ Use of dynamic and automated control
equipment (scales, X-ray,
multifunctional inspection gate)
▪ Expeditious handover inspections
▪ Risk assessment, railway as AEO
Discussion
▪ What is the experience of railways related joint border
controls, single window facilities and logistics platforms in
your country ?
▪ What are the benefits / challenges for the railways in
Mongolia to participate in such activities ?
▪ How can increasing use of new technologies and smart
solutions support potential reorganization and streamlined
movement across railway border crossings at China-
Mongolia-Russian Federation Economic Corridor ?
7. Corridor management mechanism for
railway transport
▪ Need for harmonized and coordinated approach (common objectives,
legal / institutional framework) (single, multiple arrangements)
▪ Examples: European Rail Freight Corridors (RFC), New Eurasian Land
Bridge Economic Corridor, Trans-Siberian route and CCTT, China-
Mongolia-Russian Federation Economic Corridor, CAREC corridors, …
▪ Corridor management functions: development of transport
infrastructure, resolution of bottlenecks, enhancing interoperability,
harmonization and facilitation of border crossing procedures, corridor
performance monitoring, stakeholder coordination, capacity building
Concept of corridor management
mechanism for railway transport
More structured and
permanent corridor
management mechanism
for regular consultation
and increased
operational performance
STEERING COMMITTEE
RAILWAY
ADVISORY
GROUP
BORDER
CROSSING
ADVISORY
GROUP
NATIONAL
RAILWAY
COMPANIES
MINISTERIAL MEETING
STATES
GOVERNMENTS
constitute
STATES
AUTHORITIES
consultation
TRANSPORT
MARKET
Thank you

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Presentation-Railway Transport.pdf

  • 1. Goran ANDREEV Consultant, ESCAP 15-16 December 2020 Strengthening Subregional Connectivity in East and North-East Asia through Effective Economic Corridor Management Training-Workshop Series: Workshop 2 Lecture: Railway Transport
  • 2. Outline 1. Emerging trends in international railway transport 2. Enhancing interoperability for facilitation of international railway transport 3. Electronic information exchange for facilitation of border crossing by rail Case Study: Electronic information exchange between railways and Customs in Russian Federation and INTERTRAN Project 4. Use of new technologies for efficient and secure border crossing by rail 5. Facilitation of Customs transit procedures for international railway transport 6. Joint border controls and streamlined border crossing Case Study: Border crossing at Rezekne railway station (Latvia) 7. Corridor management mechanism for railway transport
  • 3. 1. Emerging trends in international railway transport 1.1 Railways as a part of sustainable economy 1.2 Railways as a basis for international connectivity 1.3 Railways as a part of overall logistics solutions 1.4 Reliability and resilience of railways
  • 4. Railways as a part of Sustainable Economy Source: SLoCaT (2018). Transport and Climate Change Global Status Report 2018. Railways on global level: ▪ 8% of passenger transport ▪ 28% of surface freight transport Only 3% of global transport CO2 emissions from railway By 2050 global projected freight transport demand will triple Transit traffic in Central Asia will increase by 6% per year until 2050 Potential for increased freight flows in Mongolia is substantial 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 2015 2030 2050 Sea Road Rail Inland waterways Air bill. t-km OECD/ ITF (2019), “Enhancing Connectivity and Freight in Central Asia Global freight transport demand by mode of transport Source: OECD, 2019, ITF Transport Outlook 2019
  • 5. Railways as a part of Sustainable Economy Sustainability advantages of railway in comparison to road transport costs per 1,000 ton-km (EUR) ▪ Shift-to-rail initiatives - smart client-oriented solutions ▪ Green technologies ▪ Green financing National & International policies, strategies, initiatives Source: Rail Freight Forward, 2018, White paper: 30 by 2030
  • 6. Railways as a basis for International Connectivity ▪ “Soft” - operational connectivity • access to railway services, interoperability, facilitation of cross-border railway operations and • regulatory controls of border crossing agencies (Customs, border control, sanitary and quarantine agencies) Figure Source: ERA ▪ Hard” - physical (infrastructural) connectivity
  • 7. • Intergovernmental Agreement on the Trans-Asian Railway Network (2009) • Belt and Road Initiative • Eurasian Economic Union (EAEU) coordinated (agreed) transport policies • Program of China-Mongolia-Russia Economic Corridor (2016) • Bilateral railway transport / transit agreements (Mongolia – China / Mongolia – Russian Federation) • International Convention on the Harmonization of Frontier Controls of Goods (1982) (Annex 9 on Facilitation of border crossing procedures for international rail freight) • WCO Revised Kyoto Convention (1999) • … Examples of instruments and initiatives that support international connectivity Expanding favourable environment for realization of coherent connectivity policies
  • 8. Railways as a part of overall logistics • Traditional markets vs. changing markets & requirements • Railway operational efficiency and overall supply chain view • Addressing fragmentation of networks • Integrated planning and investment • Reduction of inefficiencies and reductions of costs • Increased cooperation with stakeholders (shippers, freight forwarders and third-party logistics providers – e.g. affiliated companies / mutually arrangements)
  • 9. Reliability of railway operations Source: UN ESCAP, 2020, Study on Smart Solutions for Railway Transport Physical reliability Non-physical reliability ▪ from traditional to predictive maintenance ▪ automation of mainline/shunting operations, including driving ▪ use of new digital tools for data-driven operations and maintenance: sensors, e- seals, drones, etc. ▪ calculation of ETA with improved accuracy (e.g. with use of AI); ▪ e-data exchange, including pre-arrival exchange; ▪ construction of trusted digital ecosystems for transportation and cargo data sharing ▪ Reliability and competitiveness of railways
  • 10. Resilience of Railways Disinfection tunnels at Iranian railway border crossings Source: UIC, June 2020, MANAGEMENT OF COVID-19: RAILsilience ▪ Dealing with COVID-19 pandemic • challenges and opportunities ▪ Long lasting impact • need for higher predictability and reliability • less dependence on human factor • less physical interaction • harmonization of border-crossing issues • automation and information interchange
  • 11. Discussion ▪ What are the policies of Mongolia regarding railways as a part of sustainable economy? ▪ Could you briefly describe some related initiatives / projects already launched? ▪ What are the lessons learned from such projects ?
  • 12. Technical Interoperability Legal Interoperability Operational Interoperability 2. Enhancing interoperability for facilitation of international railway transport ▪ From individual national railways networks to interoperable and well- connected railway corridor ▪ Comprehensive approach to railways interoperability ▪ Focus on: o common parameters for interoperability o border crossings o non-physical barriers
  • 13. Technical Interoperability ▪ Common technical parameters of railways infrastructure and rolling stock: track gauge, structure and loading gauge, maximum axle load, train length, rolling stock technical specifications (vehicle authorization and safety certification), etc. ▪ Break of gauge 1,520 mm - 1,435 mm gauge ▪ Efficient of break of gauge operations – transshipment of containers (preferred option) – Change of bogies – Variable-gauge bogies (specific circumstances only) ▪ Efficient operational practices to address lack of interoperability based on advanced information exchange between the railways
  • 14. Key elements for increased efficiency of break of gauge operations Sufficient rail tracks with both gauges Sufficient capacity of facilities (side-tracks, platforms, container yards) Available equipment (gantry cranes reach-stackers; bogie-changing stations) Increased automation of loading/unloading, container transfers and shunting Efficient coordination between railways for organization and optimization of processes Efficient coordination between railways and wagon owners, loading/unloading service providers, container yard operators Organization break of gauge operations in parallel with other border crossing railway operations and control formalities
  • 15. Transshipment of containers • directly and simultaneously • through container yards • automation of loading/unloading Watch: New China TV video on Alataw Pass transshipment warehouse Alashankou transhipment station (China), Source: ADB Manzhouli Port (China), Source: Photo Xinhua
  • 16. Discussion ▪ What are the experiences of dealing with break of gauge at Erlian (CN) – Zamiin-Uud (MN) border crossing ? ▪ What is the status of new transshipment Zamiin- Uud Regional logistic park (benefits and remaining challenges) ? Source: Ministry of Road and Transport Development of Mongolia Development of transshipment capacities at: Zamiin-Uud Regional logistic park
  • 17. Legal Interoperability ▪ Unified contractual obligations to customers from origin to destination ▪ OSJD Agreements e.g.: • on the International Railway Goods Transport (SMGS) • on Rules for the Use of Freight Wagons in International Traffic (PGW) ▪ Bilateral arrangements (based on OSJD rules) ▪ Harmonization of transport law in OSJD members and COTIF ▪ Common CIM / SMGS consignment note
  • 18. CIM/SMGS consignment note ▪ Implements both contracts of carriage (sum” of the CIM and SMGS consignment notes, liability conditions) ▪ Recognized as a Customs and bank document ▪ Expanding the use of CIM-SMGS ▪ Use of electronic CIM/SMGS ▪ Functional, legal and technical specifications for the electronic CIM/SMGS Consignment Note (CIT/OSJD, July 2019) ▪ Paperless pilots and next challenges
  • 19. Operational Interoperability Harmonized operation practice over entire international corridor • Operational interoperability of railways (e.g. harmonized international train timetables, train composition, traffic management, handover of trains, changing of locomotive and train crew, technical inspections and maintenance of wagons..) • Operational interoperability of other entities (Customs and OGA); (harmonized documents for Customs transit, recognition of Customs control measures...) Common operational parameters categories:
  • 20. Operational Interoperability ▪ Target: improvement of efficiency and competitiveness (time, service quality, tariff) ▪ Depends on the level of technical and legal interoperability ▪ Relations with customers and other stakeholders ▪ Complexity, priorities, and jointly agreed strategies on corridor level
  • 21. 3. Electronic information exchange for facilitation of border crossing by rail ▪ Between Railways ▪ Among railways and control authorities
  • 22. Automated Information Systems of Railways ▪ Communication interface with clients, business partners and other railways undertakings ▪ Transport operation planning, processing of railway transport documentation, automation of traffic control, transport operations support, cross-border data exchange ▪ Digitalization and automation for optimization and facilitation
  • 23. Electronic information exchange between railways TAF (EU, COTIF) EDI, SMGS (OSJD) MESPLAN, train handover sheet, tracking (CIS CRT) ▪ Independently developed systems ▪ Lacking interfaces ▪ Aimed at facilitation of international freight traffic ▪ Common essential exchangeable information
  • 24. Electronic information exchange between railways Source: ERA, 2020 OSJD - ERA Contact Group mapping between TAF TSI and corresponding OSJD messages
  • 25. Electronic information exchange between railways Numerous supporting IT tools - RailData (ORFEUS, ISR) - Rail Net Europe (RNE) (CCS, PCS, TIS) - HIT Rail (HEROES, Hermes) - UIP (RSRD2) - Infoset-21 - … TAF TSI Supporting IT Tools, Source: ERA, 2019 XML and UN/EDIFACT standards
  • 26. Electronic information exchange between railways ▪ EDI agreement between the railways ▪ Establishing adequate information systems and infrastructure for electronic exchange ▪ Mutual recognition of the electronic signatures ▪ Paperless electronic document processing – empty wagons – transport of goods . . .
  • 27. Cross-border electronic exchange between JSC RZD and AO NK KTZ Source: OSJD Leaflet R 941-4
  • 28. Electronic information exchange among railways and control authorities ▪ Communication interface between IT systems of railways, Customs and other control agencies ▪ Support for completion of Customs and OGA formalities (border security, immigration, sanitary and phytosanitary, veterinary and food safety) ▪ Pre-arrival information (regarding cargo declaration and entry into Customs territory – security and safety) ▪ Customs transit (simplifications and railways as AEO)
  • 29. Electronic information exchange among railways and control authorities Challenges: ▪ lack of harmonized data requirements (e.g. goods classification, railways and Customs data sets, Customs requirements along the corridor) ▪ different level of automation and development of interfaces ▪ authentication and legal requirements for acceptance of paperless electronic documents ▪ complex, extensive requirements from multiple authorities WCO standards and recommendations (e.g. WCO RKC, WCO SAFE Framework of Standards, WCO Data Model)
  • 30. Case Study: Electronic interaction Railways - Customs in Russian Federation Source: RZD 2019 Electronic information interaction between FCS of Russia and JSC RZD
  • 31. Case Study: Electronic interaction Railways - Customs in Russian Federation Source: RZD 2019 Information flows with electronic interaction between RZD and FCS of Russia
  • 32. Case Study: Project INTERTRAN Project INTETRAN, Source: RZD ▪ Electronic interaction between the stockholders at ports and railway stations, ▪ Increased use of paperless technology (up to 30 transport document in fully electronic form, mobile workstations for paperless processing) ▪ Optimization of railway operations at ports / railway stations; and ▪ Paperless Customs transit procedures for rail (e.g. fully electronic transit declarations and electronic closing of Customs transit procedure).
  • 33. Case Study: Project INTERTRAN Project INTERAN, Source: RZD ▪ Phase I (2018-2019) intermodal transport in import direction to Russian Federation ▪ Phase II (2019-2020) transit movements across Russian Federation ▪ Gradual expansion on piloting of routes (destination/transit stations)
  • 34. Case Study: Project INTERTRAN Project INTERAN, Source: RZD Watch PROSTO Production Video: INTERTRAN
  • 35. Benefits from electronic information exchange among railways and control authorities ▪ Improved communication / coordination ▪ Reduced paper-based processing, automation ▪ Reuse of data & reduction of multiple data entries ▪ Improved data accuracy and reliability ▪ Optimization of organization of transport operations and controls ▪ Improved risk management ▪ Simplifications for Customs procedures ▪ Reduced time for Customs procedures and streamlined control formalities ▪ Accelerated transport operations & reduced costs of transport
  • 36. Impact of E-Interoperability Source: UIC/IEC, 2020, Eurasian corridors: development potential.
  • 37. Discussion ▪ What are the experiences and status of electronic information exchange of UBTZ with Russian Railways and Chinese Railways (including use of e-signature technologies)? ▪ What are the experiences and status of electronic information exchange of UBTZ with Mongolian Customs? ▪ What are the benefits and remaining challenges of electronic information exchange between railways, and railways and Customs in your country?
  • 38. 4. New technologies for efficient and secure border crossing by rail Automated and non- intrusive inspections Electronic tracking with e-seals
  • 39. Automated and non-intrusive inspections ▪ Railway inspections and regulatory controls (e.g. Customs) ▪ Targeting efficiency and security aspects ▪ Collecting data while the train is in motion (dynamic control) ▪ Use of electronic systems to compare and analyse data, detect irregularities and suggest further actions (automation) ▪ Control of goods, transport means without physical interference (non-intrusive inspections)
  • 40. Automated and non-intrusive inspections Individual systems ▪ electronic dynamic weighing scales ▪ video surveillance ▪ scanning systems Positioning Data sharing Data usage Dynamic weight scales, Photo Source: Information Ministry of the Republic of Latvia
  • 41. Automated and non-intrusive inspection Multifunctional intelligent gate systems: ▪ detecting, imaging and video processing ▪ optical character reding (OCR) (wagon/container numbers identification) ▪ laser scanning (oversize cargo control) ▪ heat, chemical sensors etc. Watch Lithuanian Railways Video: Automated train inspection system Source: Lithuanian Railways, 2015 (Kena border crossing)
  • 42. Automated and non-intrusive inspections ▪ X-ray and gamma-ray scanning of containers/wagons ▪ Radiation detectors ▪ Electronic and video surveillance systems (movement in controlled areas) Stationary radiometric gates and control panel, Source: Information Ministry of the Republic of Latvia Dynamic X-Ray scanner, Source: Information Ministry of the Republic of Latvia Minimized interruption of railway freight traffic Risk management and increased security
  • 43. Electronic tracking for secure border crossing ▪ Integrated technologies: satellite positioning systems, cellular communication systems, RFID enabled e-seals, advanced web-based software and computer networks ▪ Use of e-seals: • mandatory/conditional/voluntary • single country / multi country ▪ E-seals characteristics: • mechanical/electronic security • active / passive • integrated electronic tracking or connected to additional tracking device Adapted from ESCAP Secure Cross Border Transport Model
  • 44. Electronic Cargo Tracking System (ECTS) – India ▪ Facilitation of traffic-in-transit of third-party imports for Nepal (by road and rail) ▪ MoU India/Nepal & India Customs regulation ▪ Registration at website of Manged Service Provider (Transecure) ▪ Electronic sealing and GPS tracking ▪ Support for electronic Customs Transit Declaration (e-CTD) ▪ Automatic reconciliation/discharge of transit with ECTS "trip-report” ▪ Reduced container turnaround time and avoided demurrage/ detention charges Source: Transecure, 2019 Presentation on ECTS
  • 45. GLONASS Electronic navigation seals in Russian Federation ▪ Russian Federation regulation related to permission of transit to certain sanctioned goods (by road and rail) ▪ Roles of transport and Customs authorities, sealing operator and transport carriers ▪ Electronic sealing and GLONNASS tracking ▪ Sealing Operator: Digital Platforms Development Center (CRCP) website operations and sealing services ▪ Tested within Russian Federation and joint EAEU pilot ЦВКЕ.464425.006 navigation seal (Source: CRCP User manual)
  • 46. Benefits from electronic tracking ▪ Enhanced safety and security against unlawful intrusion and smuggling ▪ Increased confidence in properly conducted transit movements ▪ Increased efficiency of Customs clearance if accompanied by: • reduction of paper-based procedures • simplification of Customs formalities (e.g. waiver of guarantee, less physical inspections) ▪ Faster turnaround time, lower insurance costs ▪ Higher quality of customer services (own cargo tracking) ▪ Potential for expanding to electronic tracking of cargo conditions (if additional sensor technologies are employed)
  • 47. Discussion ▪ What are the new technologies already employed at Mongolian railway border crossings? How they contribute to increased efficiency at border crossing inspections and controls ? ▪ What are the possibilities for further improvement and information sharing of data collected from new technologies in Mongolia? ▪ What are the relevant benefits and challenges for implementation of electronic tracking in your country?
  • 48. 5. Facilitation of Customs transit for international railway transport Railway consignment note as a Customs document Potential for new international railway Customs transit arrangements
  • 49. Facilitation of Customs transit for international railway transport Customs transit challenges: ▪ Lack of harmonized Customs procedures along corridor ▪ Diverse advance information requirements ▪ Different Customs transit documents ▪ Requirements for re-sealing by Customs ▪ Burdensome/repetitive regulatory procedures (Customs and other) ▪ Repetitive inspections of goods, containers, rolling stock Increased complexity, costs and delays
  • 50. Use of railway consignment note as a Customs document ▪ Common railway consignment note (SMGS, CIM-SMGS) ▪ Annex 9 on Facilitation of border crossing procedures for international rail freight of the International Convention on the Harmonization of Frontier Controls of Goods (1982) ▪ Reuse of already available railway data / documents as Customs transit document ▪ Facilitation of border crossing formalities, reduced involvement of intermediary parties ▪ Paper-based, dual and paper less format of railway consignment note
  • 51. Use of railway consignment note as a Customs document ▪ National / Customs Union Customs requirements • Entry/exit in/from Customs territory (e.g. pre-arrival info) • Customs transit procedures ▪ Role of the carrier (railways / representative) as declarant / principal ▪ Harmonization based on WCO Instruments (cargo / goods) • RKC (Specific Annex A and Specific Annex E Customs transit) • WCO SAFE FoS (e.g. recommended time limit) • WCO Data Model (e.g. advance cargo declaration / goods declaration datasets)
  • 52. Use of railway consignment note as a Customs document ▪ Customs transit declaration (rail) • In electronic format - from already available data elements in railway consignment note (additional data elements; supporting docs) • In paper-based format - equivalent of paper-based railway consignment note (no additional Customs document) (supporting docs) ▪ Implementation differs e.g. in EAEU, EU, other countries ▪ Customs transit procedure based on EU Customs regulation and Convention on a common transit procedure: • simplified paper-based procedure - CIM (CIM/SMGS) as Customs document • standard paperless procedure (NCTS) - paper CIM as transport document only • standard paperless procedure (NCTS) - reuse of e-CIM/e-CIM-SMGS
  • 53. Paper-based transit procedure for rail based on European Convention on a common transit Source: European Commission, May 2019, Transit Manual Amendment
  • 54. Simplified railway Customs transit procedures in Turkey ▪ Entry summary declaration and arrival notification submitted electronically to the Customs authorities ▪ Turkish Railways as AEO for simplified Customs transit procedure (Turkish Customs legislation and Convention on Common Transit Procedure) ▪ Paper-based CIM consignment note as a Customs transit declaration + electronic data exchange between the Turkish railways and Customs (minimal info only: wagon number, CIM number, shipment date, Customs offices) ▪ Electronic signature technologies and interconnected Customs offices
  • 55. Concept on new International Railway Customs Transit Country A Country B Country C Country D National Transit A Outward Transit National Transit B Through Transit National Transit C Through Transit National Transit D Inward Transit International Customs Transit Framework Agreement for harmonized international Customs transit principles CN as CTD e-CTD (R2C) based on R2R Guarantee waiver Harmonized procedure International cooperation Railways as AEO Multilateral Customs Transit Agreement between B, C and D Bilateral Customs Transit Agreement between A and B
  • 56. Electronic information exchange under the concept of new International Railways Customs Transit System (distributed solution) Country B, C Forwarding Station Customs Office of exit (en route) Customs Office of departure Customs Office of exit (en route) Customs control Customs Information System No Transit Guarantee Railway Seals No Customs Seals CIM/SMGS Country A Country D CIM/SMGS CIM/SMGS Customs Office of entry (en route) CIM/SMGS CIM/SMGS Customs Information System No Customs Formalities Exit Notification •Risk assessment Arrival Notification Access to Railway’s Systems Customs Information System No Transit Guarantee ECTD Customs Office of entry (en route) Customs Office of destination CIM/SMGS Arrival Notification Departure Notification Arrival Notification Destination Notification R2R key messages No Transit Guarantee •Risk assessment •Risk assessment Customs control Record the exit Record the exit Record the entry Record the entry International Customs Transit
  • 57. Discussion ▪ What is the experience in using railway consignment note as Customs transit declaration in your country? Is it possible to further facilitate organization of Customs transit on national level ? ▪ What are your views on the suggested concept of a new International Railways Customs Transit System?
  • 58. 6. Joint border controls and streamlined border crossing Joint border controls within a country Single stop inspections at joint border crossings and no-stop border crossings Single window facilities for railway transport
  • 59. Joint border controls and streamlined border crossing Border crossing challenges: ▪ Manual and paper-based processing ▪ Inefficient transport / logistics coordination ▪ Lengthy and uncoordinated regulatory controls Inordinate delays and increased costs Smart solutions: ▪ Digitalization and electronic information exchange (R2R, R2C…) ▪ Automation of processing (loading/unloading, new tech.) ▪ Use of railway consignment note as a Customs document Reorganization and streamlining
  • 60. Joint border controls within a country ▪ Coordination of railway inspections and regulatory controls (separately in exit and entry country country) ▪ Transfer of border control responsibilities (e.g. to Customs) ▪ Single window inspection principles (example Russian Federation – e.g. first level examination SPS documents by Customs) ▪ Joint border inspection teams • Arrival / Departure (Railways, Customs, Border Guards) • Clearance (Customs, OGA) Efficient electronic information exchange Common control location and joint use of equipment
  • 61. Single window facility for railway transport ▪ Links multiple: - stakeholders (private and public) - sources of information - information systems ▪ No resubmission of same/similar info ▪ Risk management and efficiency of controls ▪ Regulatory SW linked/integrated with digital logistics platforms
  • 62. National Transport and Logistics Public Information Platform (LOGINK) in China ▪ Exchange of logistics info across entire supply chain ▪ B2G, G2B, and B2B exchanges ▪ Railway info: e.g. carrier registration, e-booking, freight rates inquiry, tracking, e-waybill ▪ Customs clearance interface ▪ Cross-border connection - NEAL-NET (China, Japan, RoK) Source: ESCAP, 2016, Regional Study: The use of Logistics Information Systems for increased efficiency and effectiveness
  • 63. Single stop inspections at joint border crossing ▪ Only one common border station (entry or exit) ▪ Railway interchange station and all railway processes ▪ Common inspection area for control procedures of both countries (e.g. Customs, OGA) ▪ Example: Padang Besar Malaysia (passenger trains)
  • 64. Case Study of Rezekne (Latvia) railway border crossing Video surveillance from the Rezekne control room, Source: ESCAP/OSJD 2016 ▪ Minimal operations at border and transfer of operations/controls at next major station ▪ Advance information R2R, R2C ▪ Use of dynamic and automated control equipment (scales, X-ray, multifunctional inspection gate) ▪ Expeditious handover inspections ▪ Risk assessment, railway as AEO
  • 65. Discussion ▪ What is the experience of railways related joint border controls, single window facilities and logistics platforms in your country ? ▪ What are the benefits / challenges for the railways in Mongolia to participate in such activities ? ▪ How can increasing use of new technologies and smart solutions support potential reorganization and streamlined movement across railway border crossings at China- Mongolia-Russian Federation Economic Corridor ?
  • 66. 7. Corridor management mechanism for railway transport ▪ Need for harmonized and coordinated approach (common objectives, legal / institutional framework) (single, multiple arrangements) ▪ Examples: European Rail Freight Corridors (RFC), New Eurasian Land Bridge Economic Corridor, Trans-Siberian route and CCTT, China- Mongolia-Russian Federation Economic Corridor, CAREC corridors, … ▪ Corridor management functions: development of transport infrastructure, resolution of bottlenecks, enhancing interoperability, harmonization and facilitation of border crossing procedures, corridor performance monitoring, stakeholder coordination, capacity building
  • 67. Concept of corridor management mechanism for railway transport More structured and permanent corridor management mechanism for regular consultation and increased operational performance STEERING COMMITTEE RAILWAY ADVISORY GROUP BORDER CROSSING ADVISORY GROUP NATIONAL RAILWAY COMPANIES MINISTERIAL MEETING STATES GOVERNMENTS constitute STATES AUTHORITIES consultation TRANSPORT MARKET