Globalisation of Trade and New Challenges and Opportunities for the Middle East Region Cairo, 26 October 2009 Umberto de Pretto, IRU Deputy Secretary General © International Road Transport Union (IRU) 2009
© International Road Transport Union (IRU) 2009
Evolution of IRU Representation 1948 IRU founded in Geneva 1973 IRU Permanent Delegation to the EU established in Brussels 1998 IRU Permanent Delegation to the CIS established in Moscow In order to best serve its members and to adapt to the evolution in the world, IRU has representations in Brussels (to the EU), in Moscow (to the CIS) and in Istanbul (to the Middle East and the region). 2005 IRU Permanent Delegation to the Middle East established in Istanbul © International Road Transport Union (IRU) 2009
Evolution of IRU Membership 2008 180 Members 74 Countries Created 1948 8 Founder States: Belgium Denmark France Netherlands Norway Sweden UK Switzerland © International Road Transport Union (IRU) 2009
The combined efforts of 29 companies in 18 countries What is Globalisation? What does it take to have a cup of coffee in a café? The combined efforts of 29 companies in 18 countries If to have one cup of coffee at an affordable price, it takes 29 companies in 18 countries, you imagine how much more it would cost if all items came from the country where the end product is consumed? If we know that it takes 10’000 suppliers, which in turn have their own suppliers, to create an affordable motor car, you can imagine the vital role of road transport in a liberalised economy. Therefore, to stay in business, we need to see globalisation as an opportunity and not as a threat. To do so, we need to develop together the entrepreneurial spirit currently lacking in Europe. Road Transport has become a production tool! Source: IRU © International Road Transport Union (IRU) 2009
Any penalty on road transport is an even greater penalty to the economy One of IRU’s strategic priorities is the facilitation of international trade and road transport. The unreasonable direct costs of and therefore losses due to non-tariff barriers like congestion, waiting times at borders, traffic restrictions, blockades and strikes on roads represent almost USD 8 billion in 5 investigated European countries (F, UK, I, CZ and PL) annually according to a study made at the end of the 90s. If lost business opportunities are also considered, this amount can be doubled. ./. Direct losses to INTERNATIONAL traffic Source: Hague Consulting Group * Includes lost opportunities Page 6 © International Road Transport Union (IRU) 2009 © International Road Transport Union (IRU) 2008 6
Road transport tonnage distances in modern economies © International Road Transport Union (IRU) 2009
Evolution of sea containers in ports The container movements in the main ports started with the birth of world containerisation in the 1970s. Here, the green dots demonstrate a high density of container ports in the various countries. This high number of ports is linked with a high number of small container vessels. ***** The evolution of the container in the port at ten-year intervals is even more explicit. © International Road Transport Union (IRU) 2009
Beijing-Brussels Caravan 2005 Launch of Historic Beijing-Brussels Caravan Brussels Beijing © International Road Transport Union (IRU) 2009
IRU NELTI Project: interconnecting every business to every major world market © International Road Transport Union (IRU) 2009
NELTI reconfirms road infrastructure is NOT the problem 12 road transport companies from 8 countries; More than 117 round trips via territories of 24 countries © International Road Transport Union (IRU) 2009
NELTI Routes © International Road Transport Union (IRU) 2009
NELTI: Problems are Procedural! 1. Time spent en route by all vehicles 5 041 days 1. Time spent en route by all vehicles 5 041 days 40% of time lost at border crossings! Bakshish at the border accounts for 30% of additional costs! 2. Distance covered 1 560 000 km 3. Amount of official levies paid 167 200 USD 3. Amount of official levies paid 167 200 USD 4. Sum of unjustified levies paid 143 700 USD 4. Sum of unjustified levies paid 143 700 USD 5. Number of stops en route 5 917 6. Number of state border crossings 1064 7. Length of downtime en route 1 880 days 7. Length of downtime en route 1 880 days 8. Cargo carried 4 200 tonnes © International Road Transport Union (IRU) 2009
NELTI NELTI: Solutions Implement UN trade and road transport facilitation tools Increase cooperation between transit States Introduce multilateral transport permit system Improve customs procedures Provide multi-entry and transit visas for drivers © International Road Transport Union (IRU) 2009
Join UN Global tools to permit road transport to interconnect businesses The basis of the global approach is represented by rules, to be observed by all involved. As many as 56 multilateral legal instruments (agreements, conventions) and a number of Recommendations and Resolutions are governing transport. Of the 56, 42 regulate road transport related issues. © International Road Transport Union (IRU) 2009
TIR…further expansion benefits Arab League states! Contracting Parties 68 TIR Operational Countries 56 Contracting Parties in admission process 2 In negotiation process 3 Interested 6 © International Road Transport Union (IRU) 2009
Provision of Advanced Cargo Information WCO – SAFE and AEO requirements can be fully satisfied by the TIR Convention The four core elements of WCO SAFE are: Pre-departure examination Provision of Advanced Cargo Information Risk Management to security and safety Benefits For Trade 1 2 3 4 Mutual recognition & Controlled Access Electronic Pre-declaration Risk Management In TIR convention (e.g. Annex 10) Communication Platform between AEO & Authorities 1 2 3 4 © International Road Transport Union (IRU) 2009
18 © International Road Transport Union (IRU) 2009