96578 WORLD BANK WORKSHOP ON THE DEVELOPMENT OF A GREEN GROWTH STRATEGY IN FREIGHT TRANSPORT AND LOGISTICS IN GEORGIA Tbilisi, Georgia March 31, 2015 Jen Oh, Oceane Keou, Daniel Saslavsky WORKSHOP REPORT Contents 1. Background............................................................................................................................................ 3 2. Programme ............................................................................................................................................ 3 3. Participants............................................................................................................................................ 3 4. Workshop Summary .............................................................................................................................. 4 a. Presentations .................................................................................................................................... 4 Achievements made in Georgia in the sector, main challenges and areas for improvement ................................................. 4 Korean experience: Lessons from the field and government action ....................................................................................... 4 Greening freight transport and logistics in Georgia: assessment of constraints ..................................................................... 5 Impact evaluation of the East West Highway development on trade and economic growth ................................................. 5 Key opportunities to promote innovations in the supply chain management industry .......................................................... 5 Observations............................................................................................................................................................................ 5 b. Working Group session ..................................................................................................................... 6 Group 1: Financial and operational performance of the Georgian road transport sector ...................................................... 6 Group 2: Potential for improving intermodal connections and greening ................................................................................ 8 Group 3: Government policies on greening ............................................................................................................................. 9 c. Priority actions ranked by relevance .............................................................................................. 11 Results: Top 15 initiatives ranked as “very relevant” ............................................................................................................ 11 Results: Top 15 initiatives ranked as “very relevant” (%) ...................................................................................................... 12 Results: Importance by broad sector ..................................................................................................................................... 12 5. Conclusions: Main findings.................................................................................................................. 13 6. Next steps ............................................................................................................................................ 14 Annex 1: Workshop Agenda ....................................................................................................................... 15 Annex 2: List of Participants........................................................................................................................ 16 2 1. Background The workshop was organized by the Ministry of Economy and Sustainable Development (MESD) of Georgia and the World Bank within the framework of the ongoing project on Green Freight Transport and Logistics (GFTL). The objective of the project is to develop a green growth strategy in the freight transport and logistics sector in Georgia that aims at reducing fuel consumption and negative environmental impacts (i.e. local and global emissions), as well as developing and improving competitiveness of related service sectors and creating jobs in the process, that would lead to potential growth. The event was attended by the Deputy Minister of Economy, Natia Mikeladze, and the Deputy Minister of Finance, David Lezhava. 2. Programme The workshop aimed at allowing participants to acquire a common understanding of the critical issues constraining the development of freight transport and logistics services in Georgia. It also aimed at bridging the knowledge gap between actors from both the public and private sectors and the decision-makers, and facilitating the discussion, and ultimately consensus building, on priorities for Georgia in the said sector. Specifically the program included (i) presentation of the main achievements in the said sector and the remaining challenges, based on the Logistics Policy Note shared with the Georgian government in January 2015, (ii) the outcome of the study tour to Korea, organized in September 2014, and lessons to be learnt from the Korean government, (iii) presentation of the preliminary results of the Green Freight Transport and Logistics study, and (iv) the impact evaluation work to be carried out along the East-West highway (see Annex 1 for the agenda). Using an interactive and participative approach, this workshop provided the opportunity to get feedback on the work that has been achieved, raise awareness and create synergies among key stakeholders. Knowledgeable guest speakers, Mr. Jae-Myoung Lee (Director of the Department of Logistics Policy of the Korean Ministry of Land, Infrastructure and Transport), Prof. Dr. George Doborjginidze (Chairman of the Georgian Logistics Association and Professor for Supply Chain Management and Logistics at the Georgian Technical University), Mr. Klaas Westerkamp (Senior Consultant at Panteia, research and consultancy firm), and Mr. Lasha Labadze (Deputy Director and Senior Research Fellow at the ISET Policy Institute) also shared their concrete experience and ongoing work. 3. Participants The event was very well attended: Around 50 people from various organizations participated in the workshop. The following entities were represented (see Annex 2 for the full list of participants): - The Government of Georgia: Ministry of Finance, Ministry of Economy and Sustainable Development, Ministry of Regional Development and Infrastructure, Ministry of Environment and Natural Resources Protection. - Public Sector: Land Transport Agency, Georgian Railway. 3 - Associations, Private Sector: Georgian Logistics Association, Georgian International Road Carriers Association, Georgian Freight Forwarders Association, Export Development Association, port authorities, terminal operators, private companies. - Universities: Georgian Technical University, Batumi State Maritime Academy. - External partners: USAID, Asian Development Bank, GIZ. 4. Workshop Summary a. Presentations Achievements made in Georgia in the sector, main challenges and areas for improvement The presentation provided a sector overview, specifically, the main achievements made in the freight transport and logistics sector and the remaining challenges related to three main areas: (i) infrastructure (for all modes) and logistics services, (ii) supply chain management and (iii) corridor development and border management. This sector overview is the result of diagnostic work and policy dialogue undertaken with Georgian government agencies for the last 18 months. Following the presentation, participants were asked to fill out a questionnaire in which they would rate the relevance of various measures to improve freight transport and logistics, proposed under the above 3 areas. Through this exercise high-priority measures were identified in Section C: Priority actions ranked by relevance. Korean experience: Lessons from the field and government action It was highlighted that the transport sector is one of the key GHG emitters, and within the sector, road sector takes the lion’s share of the total emissions. Korean Government’s green logistics strategy, consisting of modal shift from road to rail, third-party logistics and joint distribution, promotion of cleaner vehicles, use of ITS technologies and promotion of eco-driving, is expected to achieve 43% reduction in GHG emissions by 2020, compared to the business-as-usual scenario. It is expected that about 60% of the total reduction will be achieved through modal shift, particularly to railway. Greening of the ports and green logistics industry was identified as another important priority. Implementation of modern ITS systems and eco driving were defined as very important tools for greening as well. The Korean Government financially supports all above mentioned initiatives. Q: Is the estimated reduction of GHG due to modal shift from road to rail/short sea shipping (SSS) mainly related to rail or to SSS, because Korea’s geographical location is favorable to SSS, but Georgia’s geographical location is not? A: This is mainly due to shift to rail. Q: Are there additional benefits for companies? Does the State encourage (by application of reduced taxes or any other measures) companies to implement greener activities? A: Yes, the Government raises awareness. Companies benefit from greening as greening saves money, and thus are easily self-motivated with some nudging and support by the Government. Additionally, some funding is provided towards consultancy services, for initial assessment/estimates and capacity-building. 4 Greening freight transport and logistics in Georgia: assessment of constraints The initial results from the interviews carried out between October 2014 and Feb/March 2015 targeting road freight companies and freight forwarding companies were shared. Q: Should rail be the dominant mode? A: To develop as a distribution center for the region, Georgia needs to have good infrastructure: ports, rail as well as roads. They should not be in competition, as each mode is needed to offer shippers the complete package. Shippers and/or freight forwarders should be given a free modal choice by creating a fiscal and operational level playing field in which all modes of transport can be exploited to their full potential, and in which co-modality will be encouraged. Though, since investments in rail infrastructure is usually quite expensive, some government support is needed. Q: A system of flat tax rates is the preferred option in Georgia. If we start developing another system (‘user pays’ principle) for vehicle tax, other sectors will also want to change. A: A good option, to further explore, would be to strategically and gradually increase the flat rate of GEL 200, making it dependent on weights & dimensions, distance. There might be other possibilities such as strengthening the bilateral permit systems. Impact evaluation of the East West Highway development on trade and economic growth The goal and methodology of the impact evaluation work were described. The model used (CGE model) is expected to provide an analytical foundation to assess the indirect economy wide benefits of the large program of investment in the East-West Highway corridor, which are not captured in project level impact evaluation. Key opportunities to promote innovations in the supply chain management industry The actions led by the Georgian Logistics Association (GLA) were presented, along with the next steps being considered by the association. GLA facilitated the implementation of a Supply Chain Council (SCC) chapter to help close the operational gaps in the supply chain management industry. A first annual Supply Chain Benchmarking Survey was carried out in 2014 to provide an overview of companies’ current strengths and weaknesses in the implementation of business processes and performance management. Key findings of this survey were presented during the workshop. As next steps, following the study tour to Korea, a strong cooperation with Inha University (Korean university) to leverage international knowledge and best practices is to be expected, as a Memorandum of Understanding between Inha University, Georgian Technical University and GLA has been signed. The aim is to support the development of advanced transportation and logistics education in Georgia. Observations Presentations were followed by engaging discussions and debates during Q&A sessions. The workshop highlighted clear areas where the government could support the private sector: as an example green initiatives taken by private companies could be financed through subsidies (rather than tax alleviation measures), as suggested by the Deputy Minister of Finance. 5 b. Working Group session Debates were structured around 4 themes: Group session 1) Financial and operational performance of the Georgian road transport sector. 2) Potential for improving intermodal connections and greening. 3) Government policies on greening (greening vehicle tax, road user charges and bilateral and multilateral trip permits systems, etc.). Plenary session 4) Potential and feasibility of greening initiatives. Group 1: Financial and operational performance of the Georgian road transport sector The first findings of the GFTL study show that the financial and operational performance of the road transport sector might be a bottleneck for greening. First, vehicle utilization (yearly kilometers) appears to be rather low. Secondly, price levels in combination with low mileage might negatively influence profitability of firms. These factors and the combination with a demand side that apparently does not stimulate the use of ‘greener’ vehicles, might make haulers reluctant to invest in greener vehicles or they simply do not have the means to invest. On the other side, the composition of the vehicle fleet of Georgian CEMT license holders is much more ‘greener’ than the average fleet. This suggests that other factors might influence investment decisions. The market shares of Georgian haulers in bilateral and transit road freight transport seems low. This indicates that the financial and operational performance of the Georgian sector is weak and international competition strong. As a consequence, policy measures aimed at the renewal of Georgian vehicle fleets might not be effective. Furthermore, the Georgian transport sector will only be able to profit from the unique geographical position if it is innovative and competitive, which raises the question how this can be achieved. Questions to steer the discussion were the following: 1. Do you believe that the financial and operational performance of the Georgian road transport sector is a bottleneck for the greening of transport, and specifically for the renewal of fleets, and if so, in what way? 2. What should be improved in the Georgian road transport sector and how (market shares in bilateral and transit transport, size of companies, productivity of fleets in terms of yearly mileage and utilization rates)? 3. What is the position of the Georgian road transport sector regarding innovation and competitiveness and how can this position be strengthened (value added logistics, modern vehicle and IT technologies)? 4. Do you believe that vehicle tax systems, road user charges, trip licensing system could be used to stimulate haulers to invest in modern trucks? 6 5. How can inter-agency, inter-sectoral and public-private partnership in this field be strengthened and promoted? And how can the role of transport associations in this field be strengthened? GROUPS’ CONCLUSIONS Answer Q1. The main factors which influence the greening of transport are: - Quality of vehicle fleet (old/new); - Quality of roads (surface and geotechnical conditions); - Quality of fuel, vehicle oil and spare parts (low quality – increased emissions); - Quality of technical maintenance centers (low quality – unsatisfactory technical condition of vehicles); - Quality of technical personnel (capacity building needed). The financial position of most companies limits their ability to renew the vehicle fleet. Answers Q2 to Q5: Measures needed include: - Increased size of companies involved in the transportation sector; - Taxation applied to transport sector should be improved; - Technical regulations should be improved and enforced; - Single window principle to be improved further; - Road user charges based on euro class, weights & dimensions, distance; - Open up discussion with neighbors about all these issues; - Measures to be identified to develop cooperatives in the transport sector; - Implementation of modern IT technologies in the transportation and distribution sectors; - Possibility of implementation of PPP projects seems to be crucial in the sector; - Strengthening of the non-commercial sector serving the transport field; - Promotion of automation services. Lots of potential for innovation and strengthened competitiveness. The sector needs consolidation, as there are too many small firms which are not good at developing innovative solutions. Maybe Logistics Centers or Consolidation Platforms in which small firms could cooperate could solve the problem. But the current lack of critical mass is a problem to develop state-of-the-art IT services, groupage services, route planning and value added logistics. The larger firms (operators or freight forwarders) will probably focus more on warehousing and logistics, and increase the contracting out of transport services to smaller operators. These larger firms could thus be the lead in innovation. Regular dialogue between the private sector and the government is essential, and the role of strong associations is important. 7 Group 2: Potential for improving intermodal connections and greening The first findings of the GFTL study indicate that road transport has a strong position in comparison with rail in transit flows in connection with the Georgian Black Sea ports. In spite of stakeholders indicating that rail transport is, in principle, much cheaper, it is estimated that around 150,000 containers are transported by road from the Georgian ports to Azerbaijan. Apparently, bottlenecks in rail transport currently prevent a modal shift from road to rail. Nevertheless, there is real potential and large (transit) flows might shift from road to rail in the future. Another factor that needs discussion, is how Georgia is going to take advantage from its position as an important transit country. Policy measures should be developed to avoid the situation where Georgia is left with the negative consequences of transit flows (emissions, noise) without benefiting in monetary terms. Questions to steer the discussion on this topic: 1. Do you agree that, potentially, rail transport could play a more dominant role in the sector, especially in transit flows in connection with the Georgian Black Sea ports and how? 2. What are the main bottlenecks in rail transport and how should these be dealt with? 3. What is your opinion on the connections between Georgian ports and rail and road transport, and do you have suggestions for improvements? 4. How can road goods transport companies better cooperate with rail operators? 5. Are there other possibilities to facilitate a modal shift? 6. How can inter-agency, inter-sectoral and public-private partnership in this field be strengthened and promoted? And how can the role of transport associations in this field be strengthened? GROUPS’ CONCLUSIONS Answer Q1: - Railway is an environmental friendly mode of transport; - Safety on the roads will be increased if part of the traffic goes onto rail; - Railway transportation can be commercially more attractive to customers; - Highways will be less damaged (deteriorated), due to heavy traffic movement of heavy vehicles; - Railway transport may be faster in comparison with road due to enforcement of AETR agreement (digital tachographs). Answer Q2: - Deteriorated/out-of-date infrastructure or total absence of infrastructure (e.g. for truck on rail) are constraints for modal shift to rail; - Geographical constraints which increase operational charges and imply rail tariff increase (e.g. Khashuri – Zestaponi section), which can become a constraint for modal shift. Answer Q3. It’s very important to improve the rail-port connections: - Implementation of modern IT technologies; - Improvement of access rail and road links; 8 - Creation of necessary terminal facilities for truck on rail and container transportation. Answer Q4: - Capacity building of operators working in the transportation field is very important for improvement of services and development of a new type of services; - Awareness campaigns and trainings should be introduced to keep operators informed about new technologies and opportunities in the transportation/railway sector. Answer Q5: - Flexible taxation policies should be developed based on sound data and analysis; - National regulations to be better enforced. Answer Q6: - Creation and permanent activities of an intergovernmental commission: to hold regular working groups, reinforcing the joint decision-making process, will dramatically help develop the transport sector and find solutions to existing challenges; - Strengthening the role of associations and their capacity building is also important; - Capacity building of the governmental sector is highly needed. Rail is cleaner, safer and cheaper. Currently the share of road freight transport is higher. But in the end the potential for rail is good, it can be fast because there are no restrictions such as driving and rest times for drivers. The main bottleneck for rail is the lack of good facilities to transfer cargo to rail in the ports. The connection between the ports and road or rail transport could be improved with modern IT solutions that inform parties when a ship is arriving. Better access roads and access to trains is essential, and should reduce delays. There should be possibilities to load semi-trailers on trains. Education and awareness are also essential to promote rail. Now road operators do not have sufficient knowledge on how to use rail services. Other possibilities for modal shift include tax arrangements for intermodal transport, and special arrangements pertaining to weights and dimensions or trip permits for vehicles involved in intermodal transport. Group 3: Government policies on greening The first findings of the GFTL study show that vehicle tax and road user charges are not designed to stimulate investments in greener trucks. The transit fee for foreign trucks is a flat rate of GEL 200, with no distinction according to the weight and dimensions of the vehicle, the number of kilometers, or the emission class. An analysis of the composition of Georgian CEMT license holders in comparison with other fleets, show that the CEMT system may be an incentive for greening of fleets. These examples suggest that there is room for improvement in Government policies to facilitate greening of the transport sector. 9 Questions to steer the discussion on this topic: 1. Do you think that a ‘green’ focus in vehicle tax and road user charges (more polluting vehicle pay more than cleaner vehicles) could contribute to the greening of fleets, and do you think that such a policy is feasible? 2. Do you think that a ‘green’ focus in bilateral and multilateral trip permits systems and in transport licensing (more permits for greener vehicles) could contribute to the greening of fleets, and do you think that such a policy is feasible? 3. What other government policies could facilitate the greening of the Georgian transport sector? 4. Could border crossing management contribute to improvements, and how? And other innovative infrastructure management systems? 5. How can inter-agency, inter-sectoral and public-private partnership in this field be strengthened and promoted? And how can the role of transport associations in this field be strengthened? GROUPS’ CONCLUSIONS Answers Q1-Q3: - Further facilitation of customs procedures and application of customs charges: application of higher customs charges to older vehicles and lower charges to new (younger) ones; - Promotion of green urban transport modes – electric tram (light rail transport), metro – to decrease passenger car traffic in urban areas and improve the efficiency of urban freight distribution. Answer Q2: The group fully agreed with the statement. Issuing of permits should be better managed – most permits should be issued to EURO 4/5 vehicles. Answer Q4: - The Government should support the introduction of integrated border management (IBM) based on European standards, while enhancing cross-border cooperation and transparency. Answer Q5: - Intergovernmental commission to be created and fully operational; to ensure participation of associations and private sector in meetings. In general, government policies on tolls and customs could contribute to greening. Urban transport is another critical challenge to tackle in Georgia. And cooperation road/rail should be stimulated. To introduce a green approach to the issuance of bilateral trip permit systems is certainly feasible, and will be taken into account during the annual bilateral meetings. The Government should take the initiative to set up a Steering Committee that meets once per quarter. Members should be the Government and public agencies, the private sector and the transport associations. The objective should be to better understand each other’s position and the challenges each stakeholder is facing. 10 c. Priority actions ranked by relevance As aforementioned, following the presentation on the main achievements and remaining challenges for the country in the freight transport and logistics sector, a list of initiatives – or priority actions – classified under broad categories were suggested to the participants. The following results were extracted from the responses received during the workshop. The tables represent the top 15 initiatives respectively based on (i) the absolute number of responses confirming high relevance; and (ii) the percentage of responses confirming high relevance over the total number of responses for the same action (among others, to eliminate any bias related to potentially limited knowledge of a specific subsector). The last graph represents the results aggregated by relevance, by subsector and transport mode, for presentation purposes. Broadly speaking, the exercise revealed that “hard” and “soft” measures are priorities for the government and private actors, including transport and logistics infrastructure assets upgrading, border management procedures streamlining and ICT revamping, regulatory issues affecting freight forwarding and brokerage services, commercial and cross-border dialogue issues with Azerbaijan affecting logistics services provision along the corridor, and skills upgrading for supply chain management, among others. Results: Top 15 initiatives ranked as “very relevant” Complete remaining sections of the East-West Highway Corridor (already under way) 11 Explore traffic management schemes for Sarpi BCP / OSBP design to avoid truck congestion 10 Engage in public-private dialog to discuss brokerage and freight forwarding services regulatory framework, especially on "access to profession" (i.e. professional competence, good repute, financial standing) 10 Support training and skills upgrading, adoption of KPI framework in the logistic and supply chain management sector, directly or indirectly, with other international donors 10 Support Georgian Railways’ modernization efforts by 2022 (as per AA-DCFTA Annex 14): separation of accounts, user charges, capacity allocation based on EU Single Rail Area principles 9 Concentrate efforts to upgrade existing port infrastructure 9 Reinstate interface between ASYCUDA WORLD system and TIR electronic applications (EPD and SAFeTIR) 8 Explore different financing mechanisms and future private sector participation for operation and maintenance after completion of the E-W Highway (e.g. tolling) 8 Modernize and expand rolling stock and locomotives fleet 8 Continue support of advocacy groups and efforts to build a supply chain management curricula with local universities and/or partnerships with foreign technical institutions 8 Re-introduce self-assessment principle (as opposed to GRS default provision of services) for filing export/import declarations 7 Address double taxation for international freight transport services 7 Upgrade secondary and local roads network 7 Solve track capacity bottlenecks West of Tbilisi (e.g. Poti–Samtredia and Zestaponi– Khashuri) within ongoing rail network modernization efforts 6 Concentrate efforts to promote Tbilisi International Airport as sole cargo gateway 6 11 Results: Top 15 initiatives ranked as “very relevant” (%) Promote establishment of logistics centers with dry port functionality operating on commercial basis 83% Complete remaining sections of the East-West Highway Corridor (already under way) 73% Explore traffic management schemes for Sarpi BCP / OSBP design to avoid truck congestion 71% Engage in public-private dialog to discuss brokerage and freight forwarding services regulatory framework, especially on "access to profession" 71% Support training and skills upgrading, adoption of KPI framework in the logistic and supply chain management sector, directly or indirectly, with other international donors 71% Strengthen cooperation with Azerbaijan to address governance issues at Border Crossing Points 71% Engage in strategic planning at the corridor level; consider using scenario planning methodologies; incorporate railway and port planned activities 67% Reinstate interface between ASYCUDA WORLD system and TIR electronic applications (EPD and SAFeTIR) 62% Support Georgian Railways’ modernization efforts by 2022 (as per AA-DCFTA Annex 14): separation of accounts, user charges, capacity allocation based on EU Single Rail Area principles 60% Concentrate efforts to upgrade existing port infrastructure 60% Address lack of single negotiated rail tariff (GR/ADDY) for Poti-Baku services; continue to build on Poti-Baku block train services 60% Address double taxation for international freight transport services 58% Explore different financing mechanisms and future private sector participation for operation and maintenance after completion of the E-W Highway (e.g. tolling) 57% Modernize and expand rolling stock and locomotives fleet 57% Results: Importance by broad sector 100% 90% 80% 70% 60% 50% 40% 30% 65% 64% 63% 60% 56% 20% 48% 44% 10% 21% 0% FREIGHT SCM CORRIDOR PORTS BORDER RAILWAY ROAD AIR CARGO FWD MGMT INFRA AND SVCS VERY RELEVANT SOMEWHAT RELEVANT NOT RELEVANT DON’T KNOW Freight Forwarding / Supply Chain Management / Corridor Development / Ports / Border Management / Railway / Road Infrastructure and Freight Services / Air Cargo 12 5. Conclusions: Main findings The workshop generated a great deal of interest from participants across various entities, from policy-makers, to academia and technical experts, and to practitioners. Moreover, the participatory and interactive platform of the workshop encouraged lively discussions and debates among participants. The outcome of the workshop was highly positive, as it facilitated exchange of views and helped reaching some level of consensus on the way forward and the long-term strategy. Most participants strongly agreed with the urgent need to pursue sustainable growth in the freight transport and logistics sector by investing in infrastructure, particularly the East-West Highway and intermodal connections, enforcing bi-national agreements, facilitating for better communication between the Government and the private sector and through the Government’s leadership and actions. Highlights of the presentations and the discussions are the following:  The road transport sector should be strengthened via road user charges based on the “user pays” principle instead of a flat rate, improved technical regulations and inspections, discussion and cooperation with neighboring countries, and the introduction of the “single window” concept.  The size of companies is an important issue. Companies are too small to develop innovative transport and logistics concepts. It is hoped that the current trend of bigger firms focusing more on warehousing and logistics and consequently contracting out road transport services might help develop modern logistics services.  All stakeholders are convinced that cooperation between the Government and the sector is essential for further development. Quarterly transport sector wide Steering Committee meetings with the objective to better understand each other’s position and the challenges faced by each stakeholder will result in better solutions, and sector wide support for government transport policies.  Rail has good potential (cleaner, safer, cheaper), but serious efforts are needed in the field of infrastructure, equipment and IT for transfer between rail and ports.  Government policies to green transport by introducing road user charges based on vehicle weights and dimensions, emission class and distance travelled are feasible, although the overall government policy to prefer simple taxation should be taken into account.  Government policies to green transport by adding conditions for bilateral permits linked to the emission class of vehicles is feasible and will be taken into account during the coming annual bilateral negotiations. The Ministry of Economy and Sustainable Development and the Ministry of Finance reflected that the workshop was highly useful both in sharing new information/knowledge and facilitating debates and discussions. Final results from the Green Freight Transport and Logistics TA are expected to help the Government of Georgia shape a viable Freight Transport and Logistics strategy – This is well aligned with the upcoming National Logistics Program to be developed by the Ministry of Finance. 13 6. Next steps The Green Freight Transport and Logistics Study was launched in August 2014 and the preliminary results were shared during this interim workshop. The Draft Final Report is to be completed by mid-2015, based on the findings from the workshop and on the ongoing discussion with the different stakeholders. This report will include recommendations for (i) the development of a green strategy in the freight transport and logistics sector [from infrastructure improvement to improved regulations, fiscal environment, data management, governance, etc.] and (ii) the development of an investment program for multimodal freight corridors and green logistics, guided by the strategy. The Report will also provide a timeframe for the implementation of the investment program. After consultation, the Final Report will be shared with the Georgian Government in September 2015. 14 Annex 1: Workshop Agenda Date: March 31, 2015 Venue: Radisson Blu Iveria Hotel, Tbilisi Agenda 9:00 – 9.30 Registration, coffee Introduction and goal of the workshop Henry Kerali, Regional Director for the South Caucasus, World Bank (or representative) 9.30 – 9:50 Natia Mikeladze, Deputy Minister of Economy and Sustainable Development David Lezhava, Deputy Minister of Finance Achievements made in Georgia in the sector, main challenges and areas for 9.50 – 10:20 improvement Presenters: Daniel Saslavsky and Oceane Keou, World Bank Korean experience: Lessons from the field and government action 10:20 – 11:15 Presenters: Ketevan Takaishvili, MESD and Jae-Myoung Lee, MOLIT (Korea) Q&A 11.15 – 11.30 Break Greening freight transport and logistics in Georgia: assessment of constraints 11.30 – 12.30 Presenters: Jen Oh, World Bank and Klaas Westerkamp, Panteia Q&A 12.30 – 13.30 Lunch Working groups: Discussion on priorities for Georgia in the sector in light of the 13.30 – 14.30 presentations Moderator: Vakhtang Marsagishvili Report back from WG sessions and plenary discussion on priority actions 14.30 – 15.30 Moderator: Vakhtang Marsagishvili 15.30 – 15.45 Break Impact evaluation of the East West Highway development on trade and economic growth 15.45 – 16.15 Presenters: Ari Kalliokoski, World Bank and Lasha Labadze, ISET Institute Q&A Key opportunities to promote innovations in the supply chain management industry 16.15 – 16.45 Presenter: George Doborjginidze, Georgian Logistics Association Q&A 16.45 – 17.00 Next Steps and Concluding Remarks 15 Annex 2: List of Participants No NAME TITLE ORGANIZATION Government of Georgia 1 Mr. David Lezhava Deputy Minister 2 Mr. Mamuka Shalikashvili Chief Specialist Ministry of Finance 3 Mr. Tengiz Gvelesiani Head of Analytical Department 4 Ms. Natia Mikeladze Deputy Minister Head of Transport Policy 5 Ms. Ketevan Salukvadze Department Deputy Head, Transport Policy 6 Mr. Gogita Gvenetadze Department Ministry of Economy and Head of Transport Corridor Sustainable Development 7 Ms. Ketevan Takaishvili Development Division 8 Mr. Koba Metreveli Chief Specialist 9 Mr. Mikheil Paatashvili Head of Department 10 Mr. Grigol Svanidze Chief Specialist 11 Mr. Nugzar Gasviani First Deputy Chairman Roads Department (MRDI) 12 Mr. Giorgi Japaridze Consultant Deputy Head of Environment Policy 13 Ms. Tamar Aladashvil Department Ministry of Environment 14 Mr. Ulrich Kindermann Expert, Climate Change Office Public Sector 15 Mr. Mikheil Khmaladze Director 16 Mr. Dimitri Balakhadze Chief Specialist Land Transport Agency 17 Ms. Tamar Gabrichidze Land Transport Safety Specialist 18 Ms. Salome Kelenjeridze Chief Specialist Georgian Railway Associations and Academia International Road Carriers 19 Mr. Lasha Kvirikashvili Department Administrator Association Georgian Logistics Association / 20 Mr. Giorgi Doborjginidze Chairman/ Professor Georgian Technical University 21 Ms. Sopho Japaridze Director Georgian Logistics Association 22 Mr. Zurab Shengelia Director Georgian Association of Expeditors 23 Mr. Davit Nobadze Manager Ecology Association 24 Ms. Tinatin Goreziani Railway Expert Georgian Technical University 25 Mr. Roman Mamuladze Professor Batumi State Maritime Academy 16 Private Sector Firms Mr. Avtandil 26 Engineer Batumi Port Ghoghoberidze Batumi International Container 27 Ms. Ketevan Oragvelidze Marketing Manager Terminal 28 Mr. Mamuka Tevzadze Director LTD “Santa-Trans” 29 Mr. Paata Kutaladze Deputy Director LTD “Santa-Trans LTD “Trans Caucasus Terminals” 30 Mr. Ilia Zhgenti Sea Lines Communication Manager (subs. Georgian Railway) 31 Mr. Zviad Chkhartishvili Project Manager LTD “Georgian Trans Expedition” 32 Mr. Artur Oganezov Director LTD “Neomedi” LTD “AG Transport and 33 Mr. Dito Sichinava Director Development” 34 Mr. Guga Samkharadze CEO LTD “Sun Solution” 35 Ms. Tamar Ivanishvili Air Freight Manager Georgian Express - DHL 36 Ms. Maka Daushvili General Manager VENGO Transportation Company Consultancies 37 Ms. Inga Pkhaladze Project Manager Winrock International (for USAID) 38 Mr. Irakli Samkharadze National Key Advisor GIZ 39 Mr. Klaas Westerkamp Senior Consultant PANTEIA 40 Ms. Asmat Abesadze Consultant SPECTRUM 41 Mr. Giorgi Gigauri Consultant 42 Mr. Lasha Labadze Deputy Director ISET International Financial Institutions Deputy Team Leader for Transport 43 Mr. Mamuka Chantladze Asian Development Bank Policy Project 44 Mr. Ahmed Eiweida Program Leader 45 Ms. Jung Eun Oh Senior Transport Economist 46 Ms. Oceane Keou Transport Specialist 47 Mr. Daniel Saslavsky Trade Specialist World Bank 48 Mr. Ari Kalliokoski Transport Specialist 49 Mr. Vakhtang Marsagishvili Consultant 50 Ms. Militsa Khoshtaria Program Assistant 17