- Purpose of This Document
This document establishes a comprehensive institutional and operational framework for enabling multimodal transportation involving road, sea, and rail under a single continuous Customs transit regime governed by the TIR Convention, with rail transport legally enabled through Pakistan’s membership of OTIF and operationalized in a phased manner.
The framework aims to:
Improve Pakistan’s export competitiveness and logistics reliability
Strengthen maritime and hinterland connectivity with Gulf markets
Align Customs, ports, maritime operators, and railways under existing international instruments
Create a bankable, future-ready trade corridor without requiring new treaties or legislation - Strategic Context
Pakistan has:
⦁ Strategic seaports on the Arabian Sea
⦁ Significant and growing trade with Gulf economies
⦁ Membership in key international transit and rail law frameworks
Despite this, trade logistics remain constrained by:
⦁ Mode-specific silos (road, sea, rail not aligned)
⦁ Repeated handling and clearance points
⦁ Underutilization of rail for freight logistics
⦁ Lack of continuity between inland, port, and maritime segments
This framework addresses these constraints by operationalizing existing conventions into a single multimodal system. - Legal Foundations (Existing & Applicable)
3.1 TIR Convention – Customs Transit (Core Regime)
⦁ The TIR Convention provides the legal basis for:
⦁ International Customs transit
⦁ Revenue protection through an international guarantee system
⦁ Seal-based control and risk management
⦁ A single, continuous transit operation
Key characteristics:
⦁ Mode-neutral (road, sea, rail permitted)
⦁ Requires at least one road leg
⦁ TIR operation terminates only at the final destination Customs office
The global administration and guarantee chain is coordinated by the International Road Transport Union.
3.2 Rail Transport – OTIF Membership and CIM (COTIF)
Pakistan Railways is a member of the OTIF (Intergovernmental Organization for International Carriage by Rail), which administers the COTIF Convention, including the CIM Uniform Rules governing international rail carriage of goods.
Current position:
⦁ Pakistan Railways does not presently operate international rail freight services under CIM
However, no new treaty accession or legislative approval is required to operationalize CIM when rail services are developed
Implication:
⦁ Rail transport is legally enabled under Pakistan’s OTIF membership
⦁ CIM may be operationalized administratively and progressively, as rail connectivity and services evolve
3.3 Compatibility of TIR and Rail Operations
⦁ TIR governs Customs transit, seals, and guarantees
Rail carriage, when used:
⦁ Initially operates under domestic rail rules
⦁ May transition to CIM for international rail services when activated
⦁ The two regimes are complementary and non-overlapping
⦁ Modal shifts between road, sea, and rail do not interrupt the TIR operation, provided seal integrity and guarantee conditions are maintained - Multimodal Transport Architecture
4.1 Modes Covered
This framework explicitly covers:
⦁ Road transport (truck / trailer)
⦁ Sea transport (Ro-Ro or other maritime carriage)
⦁ Rail transport (phased, where infrastructure and services exist)
4.2 Core Principle
Multimodal sea–land–rail transportation shall operate as a single continuous Customs transit under the TIR Convention.
Rail transport is legally enabled through OTIF membership and may be operationalized in phases without interrupting TIR transit. - End-to-End Operational Flow
Step 1: Origin (Exporter / Inland Location)
⦁ Cargo declared and prepared
⦁ Cargo loaded into a sealable unit
⦁ Customs seal applied
⦁ TIR Carnet issued and activated
Step 2: Inland Movement (Road and/or Rail)
Cargo moves to port or dry port:
⦁ By road, or
⦁ By rail (where available)
⦁ Customs transit continues under TIR
⦁ Rail movement initially under domestic rules; CIM may apply when operationalized
Step 3: Port of Export (Seaport)
⦁ Entry as TIR transit cargo
⦁ No re-declaration or fiscal processing
⦁ No unloading
⦁ Port acts as a transit facilitator
Step 4: Sea Leg
⦁ Maritime transport as part of the same TIR operation
⦁ Sealed unit remains intact
⦁ Carrier maintains custody during voyage
Step 5: Port of Transit / Entry (Gulf Hub)
⦁ Discharge as international transit cargo
⦁ No import declaration or duties
⦁ Seal verification only
Step 6: Inland Distribution (Road or Rail)
⦁ Onward movement to final destination
⦁ Rail use permitted where infrastructure exists
⦁ TIR remains active
Step 7: Final Destination
⦁ TIR termination at designated Customs office
⦁ Import declaration
⦁ Duties and taxes collected
⦁ Guarantee released - Role of Ports
Ports function as:
⦁ Transit facilitation nodes
⦁ Mode-change interfaces
⦁ Secure environments for sealed units
Ports do not:
⦁ Terminate TIR
⦁ Require import declarations for transit cargo
⦁ Break seals except under Customs instruction
Key port responsibilities:
⦁ Dedicated transit lanes
⦁ Secure staging areas
⦁ Predictable handling windows
⦁ Coordination with Customs and carriers - Role of Customs Authorities
Customs authorities retain:
⦁ Full sovereignty
⦁ Revenue authority
⦁ Enforcement discretion
Customs functions include:
⦁ Seal verification
⦁ Risk profiling
⦁ Intelligence-based intervention
⦁ TIR endorsement at entry/exit points
⦁ Routine unloading or inspection of sealed transit units is not required unless risk is identified. - Role of Railways (Phased Integration)
⦁ Rail transport may be used for inland movement of sealed TIR units
⦁ Initial operations governed by domestic rail rules
⦁ CIM may be operationalized administratively for international rail services when developed
Inland rail terminals and dry ports may serve as:
⦁ Origin points
⦁ Transit nodes
⦁ Final TIR termination points
Rail integration is procedural and phased, not legally constrained. - Role of Maritime Carriers
Maritime carriers shall:
⦁ Provide scheduled sea services
⦁ Maintain custody and security of sealed units
⦁ Submit advance cargo information
⦁ Coordinate with ports and Customs
Carrier liability during the sea leg follows applicable maritime conventions and contracts. - Compliance and Safeguards
The framework ensures:
⦁ No loss of fiscal control
⦁ No duty or tax leakage
⦁ Full traceability of cargo and seals
⦁ Sanctions and prohibited-goods screening at origin
⦁ Risk-based enforcement across all segments - Institutional Coordination Mechanism
A Multimodal Transit Coordination Group is recommended, comprising:
⦁ Customs
⦁ Port authorities
⦁ Maritime authorities
⦁ Pakistan Railways
⦁ TIR guaranteeing association
⦁ Operators (as required)
Role:
⦁ Finalize SOPs
⦁ Resolve operational issues
⦁ Monitor pilot performance
⦁ Guide phased scale-up - Strategic Value for Pakistan
⦁ Improved export competitiveness
⦁ Strengthened maritime economy
⦁ Rail freight readiness without upfront reform
⦁ Reduced logistics costs
⦁ Regional connectivity and hub diversification
⦁ Alignment with WTO Trade Facilitation principles
⦁ Bankable infrastructure with private capital participation - Conclusion
Pakistan already possesses the legal and institutional foundations to operate a true multimodal sea–land transportation system under the TIR Convention, with rail integration legally enabled and operationally phased through OTIF membership.
The remaining task is procedural alignment and institutional coordination, not new legislation or treaties.
This framework provides a credible foundation for:
⦁ Pilot corridors
⦁ Private investment
⦁ Gulf hub diversification (UAE and Saudi Arabia)
⦁ Long-term logistics resilience
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