the role of road transport in servicing international trade

The Role of Road Transport in

Servicing International Trade

TARITARITashkent, 4 May 2010Tashkent, 4 May 2010

TARITARITashkent, 4 May 2010Tashkent, 4 May 2010

Martin MARMYMartin MARMY Secretary GeneralSecretary GeneralMartin MARMYMartin MARMY Secretary GeneralSecretary General

© International Road Transport Union (IRU) 2010© International Road Transport Union (IRU) 2010

Future of Road Transport:Search for global solution

Increased cooperation at national, regional and international levels

Development of the complementarity of the various transport modes harmonisation of regulations and standards and deployment of Intelligent Transport Systems

Market opening including public transport improve efficiency through competition

Improve vocational training and education improve professionalism and quality and sustainable development


Today’s TopicsToday’s Topics

I. This is the IRU - Structure and Priorities

II. Road transport regulation andUN Conventions

III. Contribution of road transport to the logistics chain, economic development and the environment


This is the IRUThis is the IRU


Evolution of IRU MembershipEvolution of IRU Membership

CreatedCreated19481948

National Associations National Associations

from 8 founding countriesfrom 8 founding countries

BelgiumBelgium DenmarkDenmark FranceFrance NetherlandsNetherlands

NorwayNorway SwedenSweden UKUK SwitzerlandSwitzerland

2010 2010 180 Members180 Members 74 Countries 74 Countries


Evolution of IRU StructureEvolution of IRU Structure

19481948 IRU founded in GenevaIRU founded in Geneva

19731973 IRU Permanent Delegation to theIRU Permanent Delegation to theEU established in BrusselsEU established in Brussels

19981998 IRU Permanent Delegation to theIRU Permanent Delegation to theCIS established in MoscowCIS established in Moscow

20052005 IRU Permanent Delegation to theIRU Permanent Delegation to theMiddle East established in IstanbulMiddle East established in Istanbul


The democratic structure of the IRUThe democratic structure of the IRU


IRU International CommissionsIRU International Commissionsand Working Partiesand Working Parties

• Social AffairsSocial Affairs

• Economic AffairsEconomic Affairs

• Customs AffairsCustoms Affairs

• Legal AffairsLegal Affairs

• Technical AffairsTechnical Affairs

• Road SafetyRoad Safety

• Services to Services to Transport OperatorsTransport Operators

CommissionsCommissions Working PartiesWorking Parties

• Dangerous GoodsDangerous Goods

• Combined TransportCombined Transport

• Taxis and hire cars Taxis and hire cars with driverwith driver


IRU Priority IssuesIRU Priority Issues

Sustainable DevelopmentSustainable Development• InnovationInnovation

• IncentivesIncentives

• InfrastructureInfrastructure

FacilitationFacilitation• TradeTrade

• TourismTourism

• Road TransportRoad Transport

These areThese are also the also the priorities priorities

of theof the IRU Academy IRU Academy


TIR SystemTIR System

The most effectiveThe most effectiveUN facilitation instrumentUN facilitation instrument


Geographical scopeGeographical scopeof the TIR Conventionof the TIR Convention

6868

5757

11

33

66

Contracting Party in Contracting Party in Admission ProcessAdmission Process

TIR Operational TIR Operational CountriesCountries

In Negotiation In Negotiation ProcessProcess

InterestedInterestedPartiesParties

ContractingContracting PartiesParties


International recognition ofInternational recognition ofyour vocational trainingyour vocational training


International Recognition throughInternational Recognition throughIRU Academy Advisory CommitteeIRU Academy Advisory Committee

UNECEUNECEUnited Nations United Nations Economic Economic Commission for Commission for EuropeEurope


IRU AcademyIRU AcademyCPC Manager ProgrammeCPC Manager Programme

Fully compliant with European DirectivesFully compliant with European Directives96/26/EC and 98/76/EC96/26/EC and 98/76/EC

RecognitionRecognitionRecognitionRecognition


IRU AcademyIRU AcademyCPC Driver ProgrammeCPC Driver Programme

Fully compliant with European Directive 2003/59/EC onFully compliant with European Directive 2003/59/EC onProfessional DrivingProfessional Driving

CompetenceCompetenceCompetenceCompetence


CPC MANAGER CPC MANAGER PROGRAMMEPROGRAMME

“IRU ACADEMY ONLINEIRU ACADEMY ONLINE“ INTERNET APPLICATIONINTERNET APPLICATION

TACHOGRAPH PROGRAMME TACHOGRAPH PROGRAMME & &

DRIVING & REST TIME DRIVING & REST TIME RULESRULES

CPC DRIVER PROGRAMMECPC DRIVER PROGRAMME

TRIPARTITE HIV/AIDS TRIPARTITE HIV/AIDS PROJECTPROJECT

DANGEROUS GOODS (ADR) DANGEROUS GOODS (ADR) PROGRAMMEPROGRAMME

Vocational trainingVocational trainingprovided by the IRU Academyprovided by the IRU Academy

Vocational trainingVocational trainingprovided by the IRU Academyprovided by the IRU Academy


WCO and IRU work together to WCO and IRU work together to provide facilitation learning packageprovide facilitation learning package


The IRU structure should always be The IRU structure should always be adapted to the changing worldadapted to the changing world

Change is life.Change is life.

The world is changing. The world is changing.

To be successful the IRU is obliged to To be successful the IRU is obliged to adapt its structure and working methods adapt its structure and working methods to the changing world.to the changing world.


European Union (EU)European Union (EU)Member StatesMember States


Commonwealth ofCommonwealth ofIndependent States (CIS)Independent States (CIS)


Economic CooperationEconomic CooperationOrganisation (ECO)Organisation (ECO)


Shanghai Cooperation Shanghai Cooperation Organisation (SCO)Organisation (SCO)


EurAsECEurAsEC


Country membership Country membership of the Regional Organisationsof the Regional Organisations


New IRU structure – to better serve New IRU structure – to better serve Regional OrganisationsRegional Organisations


Objective of the UNECEObjective of the UNECE

Mission Statement: In its 56 member countries, including Georgia and Russia, the UNECE manages 57 multilateral instruments such as International Conventions and Agreements related to:

I. UNECE Regulations II. UNECE Conventions

- Road Safety - Facilitation of transport

- Energy saving and trade

- Environmental protection


I. UNECE RegulationsI. UNECE Regulations InfrastructureInfrastructure

European Agreement on Main International Traffic Arteries (AGR)

Trans-European North-SouthMotorway Project (TEM)

Vienna convention (signalisation)


Comparison of economic return from Comparison of economic return from different types of infrastructuredifferent types of infrastructure

Source: The World Bank

World Bank supported infrastructure projectsWorld Bank supported infrastructure projects

6

1215

19 20

29

0

10

20

30

Ave

rag

e ec

on

om

ic r

ates

of

retu

rn (

%)


Comparison of land used for roadsComparison of land used for roadsas % of country’s total surfaceas % of country’s total surface

0.60.3

0.7 0.8

0.3

0.7 0.70.6 0.5

1.4

0.1

0.6

0.2

0

1

2

3

4

5

A CZ D DK E F GB H I NL P PL S

perc

enta

ge

Average 0.5Average 0.5

Source: CE based on Eurostat and IRF


Evolution of Road Safety Evolution of Road Safety Performance (EU27)Performance (EU27)

757680

96

135

100

60

80

100

120

140

1990 2000 2001 2005 2006 2007

Source: EU Energy & Transport in Figures, 2009

Road fatalities (all road vehicles)Road fatalities (all road vehicles)2000 = 1002000 = 100

This has been achieved through:

1. Major improvements of the human factor2. Major improvements of the used

infrastructure3. Major improvements of the vehicle

technology


II. UNECE ConventionsII. UNECE Conventions

The role of road transport is so vital that:

of 57 international transport conventions, 33 are UN Conventions aimed at facilitating road

transport and trade

Road Transport benefits from facilitation instruments

Road Transport benefits from facilitation instruments


G20 leaders call for facilitation G20 leaders call for facilitation of trade and road transport!of trade and road transport!

G20 leaders call for facilitation G20 leaders call for facilitation of trade and road transport!of trade and road transport!


Any penalty on road transport Any penalty on road transport is an even greater penalty to tradeis an even greater penalty to trade

0

2

4

6

8

10

12

14

16

USD

Billi

ons

Transport Costs only All Costs *

Source: Hague Consulting Group, 1998Source: Hague Consulting Group, 1998 * includes lost opportunities* includes lost opportunities


An IRU-ITF Survey 2008

An IRU-ITF Survey 2008

Securing trade entails protection from Securing trade entails protection from organised crime – Secure Parking needed!organised crime – Secure Parking needed!

Securing trade entails protection from Securing trade entails protection from organised crime – Secure Parking needed!organised crime – Secure Parking needed!

1 in 6 drivers attacked in the past five years (30% more than once)

1 in 6 drivers attacked in the past five years (30% more than once)

17%

5-year attack rate


TRANSPark SearchTRANSPark SearchTRANSPark SearchTRANSPark Search

Sites around Berlin Sites around Berlin

Site Close-upSite Close-up

Route Planning Route Planning


IRU BWTO GraphsIRU BWTO Graphs(Border Waiting Times Observatory)(Border Waiting Times Observatory)

IRU BWTO GraphsIRU BWTO Graphs(Border Waiting Times Observatory)(Border Waiting Times Observatory)


Inefficient transport/customs procedures discourage investment Inefficient transport/customs procedures discourage investment and make companies and national economies less competitiveand make companies and national economies less competitive

Inefficient logistics

High transaction (trade) costs

Increased inventories

Poor Competitiveness

Reduced FDI

Lower transport volumes

Road transportRoad transportmust be facilitated!must be facilitated!

Transport costs representup to 15% of the export value


Source: NELTI Final Report, www.iru.org

from 0.5 day

to 4.5 days

Border waiting times are costlyBorder waiting times are costlyfor national economiesfor national economies


Implementation does not require large financial outlay, but mainly administrative/organisational measures

For exampleThe UNECE International Convention on the

Harmonization of Frontier Controls of Goods and the TIR Convention

Reduce number and duration of border controls

Cheap

Goal

Investment in UN border facilitation is Investment in UN border facilitation is not only cheap, but sometimes costlessnot only cheap, but sometimes costless


GlobalisationGlobalisationand the Logistics Chainand the Logistics Chain

The combined efforts of29 companies in 18 countries

Source: IRUSource: IRU

What does it take to have a cup of coffee in a café? What does it take to have a cup of coffee in a café?

Road transport has becomea vital production tool!


Road transport is the only mode Road transport is the only mode to provide door-to-door serviceto provide door-to-door service

Why China grows:Why China grows:the Asian Modelthe Asian Model

Source: UBS Investment BankReal GDP growth, 5Y average Real GDP growth, 5Y average

00

11

22

33

44

55

66

77

88Real GDP growth in %Real GDP growth in %

If you invest more,

If you add more labour,

If you have more labour with more investments you will have growth!


New opportunities resulting fromNew opportunities resulting fromthe reopening of the Silk Roadthe reopening of the Silk Road

Sea transportSea transportKey:Key:

to US West Coastto US West Coastto US West Coastto US West Coast

Saturated

Saturated

Satu

rate

d

Satu

rate

d


Evolution of sea containersEvolution of sea containersin portsin ports

Evolution of sea containersEvolution of sea containersin portsin ports


Satellite Intercepts of the World’s Satellite Intercepts of the World’s Telecommunications in a 24-Hour PeriodTelecommunications in a 24-Hour Period

Modern Activity Gap: The blank swath in the northern Modern Activity Gap: The blank swath in the northern hemisphere is centred on Central Asia!hemisphere is centred on Central Asia!

Source: Centre for Strategic International Studies (CSIS), Washington, DC


If the Silk Road worked for Marco Polo, If the Silk Road worked for Marco Polo, then why shouldn’t it work for trade then why shouldn’t it work for trade

and road transport today?and road transport today?

Itineraries of the Ancient Silk Itineraries of the Ancient Silk Road up to 700 years agoRoad up to 700 years ago


Interconnecting all the businesses Interconnecting all the businesses along the reopened Silk Roadalong the reopened Silk Road

Sea transportSea transport Land transportLand transportKey:Key:


To To East East CoastCoast

Saturated

Saturated

Satu

rate

d

Satu

rate

d

To Black SeaTo Black SeaDiesel fuel = 30 cents/litreDiesel fuel = 30 cents/litreLabour costs = $200/monthLabour costs = $200/monthTo US East CoastTo US East Coast


Interconnecting all the businesses Interconnecting all the businesses along the reopened Silk Roadalong the reopened Silk Road

Sea transportSea transport Land transportLand transportKey:Key:


To To East East CoastCoast

Saturated

Saturated

Satu

rate

d

Satu

rate

d

To Mid EastTo Mid East

To EU To EU To CISTo CIS

Launch of historicLaunch of historicBeijing-Brussels CaravanBeijing-Brussels Caravan

BeijingBeijing

BrusselsBrussels


Black Sea Ring HighwayBlack Sea Ring HighwayTruck Caravan, April 2007Truck Caravan, April 2007

The Caravan was initiated with the aim of The Caravan was initiated with the aim of promoting the future BSEC Ring Highway and promoting the future BSEC Ring Highway and identifying the physical road conditions and the identifying the physical road conditions and the non-physical barriers to road transport.non-physical barriers to road transport.


IRU New Euro-Asian Land IRU New Euro-Asian Land Transport Initiative - NELTITransport Initiative - NELTI

• Launched in September Launched in September 20082008

• Commercial transport Commercial transport deliveries performed by deliveries performed by transport operators from transport operators from 12 Euro-Asian countries12 Euro-Asian countries

• 5 routes5 routes

• In cooperation with the In cooperation with the Asian Development BankAsian Development Bank


Road transport Euro-Asia Road transport Euro-Asia feasibility studyfeasibility study

Road Transport and Road Transport and

the environmentthe environment


IRU’s 3 “i”s for IRU’s 3 “i”s for Sustainable DevelopmentSustainable Development

11.. InnovationInnovation – develop ever more effective “at- – develop ever more effective “at-source” technical measures & operating source” technical measures & operating practices to reduce environmental impact.practices to reduce environmental impact.

2.2. IncentivesIncentives – encourage faster introduction by – encourage faster introduction by transport operators of best available transport operators of best available technologies and practices.technologies and practices.

3.3. InfrastructureInfrastructure – ensure free-flowing traffic – ensure free-flowing traffic through adequate investment in new through adequate investment in new infrastructure, to remove bottlenecks and infrastructure, to remove bottlenecks and missing links and make full use of existing missing links and make full use of existing infrastructure.infrastructure.


Evolution of Commercial Evolution of Commercial Vehicle Toxic EmissionsVehicle Toxic Emissions

0

20

40

60

80

100

CO HC NOx particulates

per

cen

tag

e (1

990

= 1

00)

Euro 0 (1990) Euro I (1993) Euro II (1996) Euro III (2000) Euro IV (2005) Euro V (2008) Euro VI (2014)

- 88%- 88% - 95%- 95% - 97%- 97% - 98%- 98%

Source: EU Commission 2008Source: EU Commission 2008


European Standard VehiclesEuropean Standard Vehicles vs. Modular Concept vs. Modular Concept

Two vehicles instead of three• Less total fuel consumption• Less emissions per tonkm • Less total room on road• Lower cost per tonne/km• Less road damage

• Possible to decouple to shorter combinations

• Standard loading units• Same volume of cargo

EU regular combinations

13.6 m

7.82 m 7.82 m

13.6 m

Modular Concept

13.6 m7.82 m

13.6 m 7.82 m


IRU “30 by 30” ResolutionIRU “30 by 30” Resolution

The road transport sector has The road transport sector has voluntarily committed, on the basis voluntarily committed, on the basis of innovative technologies and of innovative technologies and practices, to reduce CO2 emissions practices, to reduce CO2 emissions by 30% by 2030 based on by 30% by 2030 based on transport performance in tkm and transport performance in tkm and pkm and related to the base year 2007.pkm and related to the base year 2007.

- 30% CO- 30% CO22 by 2030 by 2030

Road Transport and OilRoad Transport and Oil

In road transport,In road transport,oil is Black Gold !oil is Black Gold !In road transport,In road transport,oil is Black Gold !oil is Black Gold !


What is the “real” price in US$ / barrelWhat is the “real” price in US$ / barrelof one litre of diesel?of one litre of diesel?

The current spot price in New York is $70 / barrel

But!Fuel price at the pump The "real price"

UK: £1.138 / litre UK: $285 / barrel

US: $0.728 / litre US: $116 / barrel

RUS: $0.66 / litre (= 19.33 Rub) RUS: $105 / barrel

Source: National governments; OPEC 2006

We need an Energy PolicyWe need an Energy Policy instead of a fiscal policy! instead of a fiscal policy!

0 0.2 0.4 0.6 0.8 1 1.2 1.4

UK

Italy

Germany

France

Japan

Canada

USA

Crude Oil Price Distrib. Cost & Margin Tax (VAT, Excise duty)

19%19%

25%25%

34%34%

48%48%

50%50%

44%44%

60%60%

US$/litreUS$/litre


Road transport has no viable Road transport has no viable alternative to petrol and diesel fuel!alternative to petrol and diesel fuel!

Petrol / gasoline 1 1

Diesel Fuel 1 1

Propane (C3H3) 8 1.9

Butane (C4H10) 8 1.4

Hydrogen (H2) - Gas at 200 BAR 25 22

Hydrogen (H2) - Liquid at -253°C 4 5.8

Metal Hydride - Magnesium 5 3.2

Metal Hydride - Vanadium 10 1.7

Metal Hydride - Iron-Titanium 20 3.2

Methanol (CH3OH) 2.2 2.1

Ethanol (C2H5OH) 1.62 1.53

Lead Battery 70 12

Weight & volume of fuel tank for same amount of energy

Weightcoefficient

Volumecoefficient


Road transport is 100% dependent on oil Need to diversify the energy market


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