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Rail Transportation of Postal Items: Opportunities and Challenges

Explore the potential for parcel transportation between China and Europe by rail, with a focus on the development of e-commerce in China and freight traffic between the two regions. Discover the existing market of Eurasian freight corridors and the opportunities it presents for railway companies. Learn about the collaboration between postal and rail regulation, including the use of the CIM/SMGS Consignment Note. Find out about solutions to increase railway competitiveness, such as the General Terms and Conditions for EurAsia Rail Transport Contracts and the UNECE Joint Declaration.

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Rail Transportation of Postal Items: Opportunities and Challenges

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  1. Transportation of postal items by rail 12 October 2016, Bucharest, European railway business in a global environment Cesare Brand, Secretary General (CIT)

  2. The CIT • 130 railway undertakings and maritime companies as full members • 6 associated members • Association under Swiss law with legal personality • Objectives: • Implementation of the COTIF and European law that has an impact upon transport law • Standardisation of the contractual relationship between carriers and between carriers and their customers for passenger and freight traffic • Representation of its members’ interests with the authorities and other organisations

  3. Potential for parcel transportation between China and Europe by rail

  4. Development of E-commerce in China

  5. Freight traffic between China and Europe • Proportion Duration Convention • ~90% > 40 daysHaag-Visby/HamburgRules • < 10% 1 dayMontreal Convention • ~1% ~15 days National law, COTIF/CIM, SMGS

  6. Opportunities & challenges for railway companies Eurasian Freight Corridors - An existing market with potential Freight traffic China-Europe ~90% Sea / 40 days <10% Air / 1 day ~1% Railway / ~15 days ~30 Freight trains per week 6

  7. Rules for postal transports by rail • Relevant organisations • are workingtogether to define the legalframework for postal transport by rail on the Eurasian corridors • MoUbetween UPU, CIT and CCTT (2016-03-13)

  8. Scope of application of COTIF/CIM and SMGS Situation on 1 August 2016 SMGS CIM CIM + SMGS Membership suspended Associate Member

  9. Interaction between postal and rail regulation CIT: CIM/SMGS Consignment Note Post D (DO/OE) Con-signee? POST CN (DO(O))/OEForwarder 15-17 days (in future – 10 days) 3 3 RU 2 3 RU 1 UPU: CN 37, CN 34, CP 83 4 Forming or acceptance of a parcel by DO(O) 4 2 4 Buyer/Con-signee 6 ULE Buyer/Con-signee SELLER/Consignor CN Post 5 SELLER/Consignor? Buyer/Con-signee Return Merchandise Service (RMS) DE Post

  10. Use of Common CIM/SMGS consignment note Implements both contracts of carriage Recognised as a customs and bank document Does not undermine the CIM/SMGS liability conditions The “sum” of the CIM and SMGS consignment notes Based on: - Article 6 § 8 CIM + Article 6 § 11 and 7 § 15 SMGS - Layout based on the United Nations Layout - Key for trade documents

  11. Electronic CIM/SMGS Consignment note as nextstep • Legal and functional specifications: • Last update – 1st October 2013; • Revision by the CIM/SMGS Legal and Experts Group; • Key issues: enforceability of standard clauses (applicable law, place of jurisdiction and duration / amendment / termination of the EDI contract) + accompanying documents in e-form (lack of legal basis); • Functional Specifications: • new edition 1st January 2016 • Legal Specifications: • under revision by the SMGS Experts • TechnicalSpecifications: • No update since issuance May 2009; • Revision by the ad hoc technical Expert Group

  12. Solutions to increase railway competitiveness: • GTC Eurasia as instrument on contractual level • General Terms and Conditions for EurAsia Rail Transport Contracts of the CIT • (GTC EurAsia) • Point 3 - of the UNECE Political Declaration • Framework contract - for participating railways (on different corridors) • Applicable law - mandatory provisions of the national law shall apply • Precondition– opting-in through the participating railways (for example DB, PKP Cargo, BC, RZD and CCTT or GETO) • Legal basis - international private law (IPR)

  13. Solutions to increase railway competitiveness: UNECE Joint Declaration • Joint Declaration on the promotion of Euro-Asian Rail Transport and activities towards Unified Railway Law (26 February 2013, Geneva) • Important step towards a solution to unify different legal regimes • State of play: Draft of relevant legal provisions to be included into a new international legal railway regime for transmission to the forthcoming session of the Inland Transport Committee (24–26 February 2015). • CIT strongly invites the states and stakeholders to coordinate their work for consistent legal layers - for the benefit of a performant transport logistic and the competitiveness of the railway transportation. SMGS COTIF/CIM Unified Rail Transport Law

  14. Status of the project • Two postal transport pilots between China (Harbin) and Russia (Moscow) on passenger trains successful • Pilot to transport postal items from China (Chongqing) to Germany (Duisburg) by container train in preparation by the end of the year • Launch of several new rail/post services between China and Europe in 2017 (US Postal Train)

  15. Success key for rail carriage of postal items • Good quality of transport infrastructure and liable services • Competitive prices • Strong collaboration between postal organisations, customs, railways and customers • Use of existing and proved transport and postal documents (paper and in short digital) • Reduction of administrative burdens • Stable and fair legal framework

  16. Cesare Brand Secretary General CIT Tel: +41 31 350 01 93 Email: cesare.brand@cit-rail.org  For further information, visit www.cit-rail.org  Thankyou for your attention!

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