Energy

Te availability and security of

energy sources plays a major
role in the development and
politics of Northeast Asia,
where some countries are major
energy producers and others are
consumers. Oil, coal, natural
gas, and wind power are all
signifcant sources of energy in
the region. Close cooperation
and policy integration in the energy sector will generate benefts for
all parties in the region. In this regard, the GTI Energy Board was
established to address regional energy issues on a policy and strategy
basis while also including private sector expertise and resources.

Te Inaugural Meeting of the GTI Energy Board was successfully held on 16
September 2009 in Ulaanbaatar, Mongolia. Practical cooperation in the energy
sector among central and local authorities, the private sector, and fnancial and
research institutions in NE Asia was strengthened, and the GTI Energy Action
Plan for 2010-2012 was adopted.
Environment

The Great er Tumen Regi on, l i ke
other parts of Asia, has experienced
economic development at the expense
of the environment. Restoring the
environment and preventing further
damage requires regional initiatives
and local support. GTI has aimed
to ensure that environmental concerns are addressed in the priority
sectors, and issues such as climate change, eco-tourism, clean energy and
industrial technologies are integrated into development projects. The
GTI Environmental Board seeks to bring together various stakeholders,
including the private sector, local governments, and international
organizations to create better development practices in order to ensure
both environmental and economic viability.

The 6th Workshop on the Trans-boundary Environmental Impact Assessment in
Northeast Asia was held in Jeju, ROK from 7 to 10 December 2009, jointly
organised by the Ministry of Environment of ROK and the Korea Environment
Institute, in cooperation with the Tumen Secretariat. Participants agreed to further
enhance communications at both the governmental and research levels through the
GTI Environment Board in order to promote TEIA activities.
Trade & Investment
The Greater Tumen Region has exciting potential to expand its
industrial capacity but is one of the few remaining multi-border
regions without a regional trade agreement in place. Previous eforts
have laid an infrastructural and policy foundation for the region
to develop a thriving economy. Today, GTI seeks to create a more
investment-friendly environment in order to make the region
more competitive and attractive in the global business sphere. GTI
works towards these aims through a variety of initiatives such as
strengthening private-public dialogue and partnerships, identifying
and promoting investment opportunities, and facilitating the policy
environment for regional trade and investment. Investment Forums
are organized to encourage collaboration and exchange investment
information. In addition, GTI publishes economic research and
investment guides to promote Northeast Asia as a whole as well as its
individual cities and provinces.
Business Advisory Council
Opportunities for the Private Sector
To further improve the investment climate in the region, the annual GTI Investment Forum is organized back-to-back with the annual
intergovernmental meeting, providing a platform for the private sector and member governments to exchange important information on business
opportunities and attracting additional foreign investment into Northeast Asia.
Te 1
st
GTI Investment Forum was held on 16 November 2007 in Vladivostok, Russia, under
the motto Greater Tumen Initiative Gateway to Northeast Asia with the goal of promoting
interregional trade and attracting additional foreign investment into North-East Asia. About 150
regional and international representatives from the private sector, research institutes and academia
as well as government ofcials attended the Forum, confrming the high potential of Northeast
Asia for new investment opportunities.
Te 2
nd
GTI Investment Forum was held on 25 March 2009 in Ulaanbaatar, Mongolia following
the meeting of the 10th GTI Consultative Commission. Te Forum brought together more than
200 delegates from the GTI member governments, senior business leaders from all over the world,
and high-level representatives of various non-governmental organizations and the UN. In four
thematic sessions, participants discussed diferent aspects of the challenges and opportunities in
economic cooperation in the Northeast Asian region.
GTI has made increasing eforts to fully involve the private sector in regional development.
The Business Advisory Council (BAC), established at the 9th meeting of the GTI
Consultative Commission, serves as a public-private partnership platform for the active
engagement of the private sector in regional development and cooperation. Through
constructive dialogue between governments and the private sector, BAC helps directly improve
the investment climate in Northeast Asia by providing advice and feedback to policymakers,
resulting in more efective economic cooperation and greater opportunities for investors.
BAC brings together regional and international investors to actively engage in regional
initiatives, converting the great potential of the region into actual business opportunities
and projects. Up til now, the number of BAC members has reached a total of 60, including
representatives of multinationals, Chambers of Commerce and investment promotion
agencies from GTI member states and other regions of the world.
BAC acts as a mechanism for public-private cooperation through various promotional
activities. Te Inaugural BAC Meeting was held in Nov. 2007 in Vladivostok and the 2
nd

BAC Meeting was held in March 2008 in Shanghai, marking the adoption of the BAC
Terms of Reference. Te 3
rd
BAC Meeting, held in March 2009 in Ulaanbaatar back-to-
back with the frst joint session between the GTI Consultative Commission and BAC, laid
a solid foundation for strengthening public-private dialogue in Northeast Asia. Te 4
th
BAC
Meeting was held on 19-20 April, 2010 in Changchun, China.
The BAC Executive Committee was established in October 2009 in Beijing, providing
effective guidance and ensuring better coordination among BAC members. Mr. James
Zimmerman, Chairman Emeritus of the American Chamber of Commerce (China), was
elected as the BAC Executive Committee Chair for 2009 to 2012.
Investment Forums
* Te 2010 Northeast Asia Economic Forum will be held in Changchun, China on 2 September 2010.
At the 9
th
Meeting of the GTI Consultative Commission, held in 2007 in Vladivostok, Russia, a number
of concrete projects in the priority sectors were identifed as the GTI Projects to support economic
development. Since then, the promotion of these projects has been efectively undertaken by the Tumen
Secretariat, with the support of the GTI member states and UNDP. Strong partnerships and cooperative
networks among GTI governments, international organisations and the private sector were established
for the joint realisation of these projects.
SECTOR NO. NAME OF THE PROJECT
Transport
1 NEA Ferry Route Border Infrastructure Framework
2 Modernisation of Zarubino Port
3 Mongolia-China Railway Construction
4 Resuming Hunchun-Makhalino Railway
5 China Road, Harbour Project in the Border between China and DPRK
Energy 6 Capacity Building on GTI Energy at Regional Level
Tourism 7 Capacity Building on GTI Tourism at Regional Level
Investment 8 Training Program for Ofcials from GTI Member Countries
Environment
9 GTI Environmental Cooperation: Focusing on Trans-boundary Environmental Impact Assessment (TEIA)
in GTR and Environmental Standardisation in the Northeast Asia
10 Feasibility Study on Tumen River Water Protection
GTI Projects
GTI has a focus on the promotion of the Greater Tumen
Region, which covers the three Northeast provinces (Jilin,
Heilongjiang and Liaoning) and Inner Mongolia of China;
the Eastern Provinces of Mongolia; the Eastern port cities of
the Republic of Korea; and the Primorsky Territory of the
Russian Federation. With a skilled and low-cost labour pool,
this region possesses enormous potential for investment and
job opportunities. Te Tumen River ties this region together,
situated at the crossroads of vital trade, transport and energy
routes. Rich in gas, oil and minerals, the region provides easy
access to affluent markets in the Northeast Asian countries,
representing millions of consumers.
THE GREATER TUMEN REGION AT A GLANCE
Area Population Area (km2)
Major Cities in the Greater
Tumen Region
Main Industries
China Heilongjiang
Province
36,890,000 454,600 Haerbin and Heihe Energy, equipment, food processing, forestry,
petrochemicals, pharmaceuticals
Inner Mongolia 24,000,000 1,180,000 Huhhot Agriculture, chemicals, energy, iron and steel,
textiles, pharmaceuticals
Jilin Province 27,340,000 187,400 Changchun, Yanji and Hunchun Automobiles, energy, metallurgy, petrochemicals,
textiles, tourism
Liaoning Province 42,380,000 145,900 Shenyang, Dalian and
Dandong
Electronics, machinery, metallurgy, petrochemicals
Mongolia Eastern Mongolia 223,000 287,600 Choibalsan Agriculture and agro-processing, mining, tourism
ROK Eastern Ports 5,300,155 3,055 Busan, Sokcho, Ulsan and
Pohang
Automobiles, multimedia and IT, port logistics,
equipment and spare parts, oil refnery, ship-
building, steel production, tourism and conventions
Russian
Federation
Primorsky Territory 2,200,000 165,900 Vladivostok Aquaculture, engineering, food processing, forest
products, mining, services, tourism
Map of Te Greater Tumen Region
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Greater Tumen Region
Primorsky Territory, rich in natural resources and with a strong industrial and
transportation base, is the largest economy in the Russian Far East and the Greater
Tumen Region. Formerly dominated by state-run enterprises, about 90% of the
enterprises in Primorsky are now privately owned. Coal and non-ferrous metal mining, ship repair,
ship building, and food processing are the largest industrial employers. Te overwhelmingly export-
based transport industry is also well developed. Five of the ten major Russian shipping companies
are based in this area, and strong regional growth in recent years has resulted in greater export
volumes, especially of metals and other resources. In addition to the port in Vladivostok, the end
of the lines of the Trans-Siberian Railway (TSR) in Nakhodka and Vostochny are also located in
Primorsky. The TSR is one of the shortest routes between East Asia and Europe and is a major
route for Japanese transit cargo.
The Eastern port cities of ROK offer some of Northeast Asias most dynamic
transportation and shipping connections, as well as accounting for signifcant tourist
attractions. Busan, a city of around 4 million people, is a growing regional financial
center and one of the largest container handling ports in the world with a capacity of 6.44 million
TEU containers per year. Sokcho is an eastern coast port city in the Gangwon Province and a major
tourist gateway to Northeast Korea, ofering ferry and container transportation services to China,
Russia and Japan. Ulsan is the industrial powerhouse of ROK, which is home to the world's largest
automobile assembly plant, the world's largest shipyard, and the world's second largest oil refnery.
Pohang is a major port city in North Gyeongsang Province and the home of the Pohang Steel
Company, one of the largest steel producers in the world, and a host of related industries.
Four provinces in China (Jilin, Heilongjiang, Liaoning and Inner Mongolia) are actively
involved in GTI. Tey have a total population of over 131 million and an area of nearly
2 million km. Tese provinces are rich in natural resources Inner Mongolia alone
boasts 90% of the countrys proven rare earth oxides and fve major coalfelds with reserves of over
10 million tons each, while Heilongjiang produces almost half of the countrys oil and is a prime
candidate for wind power development. Other resources like timber in Jilin and iron in Liaoning
also play a large role in the regional economy. Recent policies have emphasised the revitalisation
of traditional industrial bases. Changchun in Jilin Province is home to one of the countrys most
important auto manufacturers, First Automobile Works. Dalian in Liaoning Province is expected
not only to become one of Chinas fve largest ports but also to rise as a global leader in software
and service outsourcing. In this environment of growing industries and markets, the Tumen
transport corridor is a vital connection for Northeast China and its neighbours.
The three aimags (provinces) of Hentii, Dornod and Sukhbaatar form the Eastern
Mongolian region involved in GTI. Tis large (287,600 km) but sparsely populated
area is relatively less developed. Tis is one of the largest and last undisturbed steppe
ecosystems in the world and is the core habitat of the Mongolian gazelle. As such, tourism
is promising, thanks to the areas unspoiled natural beauty, cultural traditions and festivals.
Currently, agriculture and forestry account for 33% of the countrys GDP, while transport and
communications account for 10%, mining and quarrying (especially of copper, fluorspar, and
molybdenum) for 9%, and manufacturing for 6%. Mongolias radically changing and privatising
economy means that the government is placing high priority on developing the countrys natural
resources processing sector and also on accessing regional transportation corridors.
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GTI partners with the United Nations system, development agencies,
the private sector, nancial institutions, foundations, nongovernment
organizations and the academia to jointly promote economic
cooperation and development in Northeast Asia.
GTI Partners
MAIN PARTNERS
United Nations Development Programme (UNDP) www.undp.org
United Nations Oce for Partnerships www.un.org/unop
United Nations Oce for Project Services (UNOPS) www.unops.org
World Tourism Organization (UNWTO) www.unwto.org
United Nations Economic and Social Commission for Asia and the Pacic (UNESCAP) www.unescap.org
United Nations Industrial Development Organisation (UNIDO) www.unido.org
United Nations Environment Programme (UNEP) www.unep.org
United Nations Educational, Scientic and Cultural Organization (UNESCO) www.unesco.org
Asian Development Bank (ADB) www.adb.org
Global Environment Facility (GEF) www.thegef.org
Te Association of North East Asia Regional Governments (NEAR) www.neargov.org
Te Economic Research Institute for Northeast Asia (ERINA) www.erina.or.jp
Korea Development Institute (KDI) www.kdi.re.kr
Russian Academy of Science www.ras.ru
BOAO Forum for Asia www.boaoforum.org
Institute for Strategic Studies www.iss.gov.mn