© International Road Transport Union (IRU) 2010 Creation of Model Highway – Public Private Initiative to revitalise the Silk Road TIFA Meeting Tashkent, 5 May 2010 TIFA Meeting Tashkent, 5 May 2010 Martin MARMY, Secretary General

Page 2 © International Road Transport Union (IRU) 2010 IRU’s global Membership Created 1948 National Associations from 8 founding countries Belgium Denmark France Netherlands Norway Sweden UK Switzerland Members 74 Countries

Page 3 © International Road Transport Union (IRU) 2010 Effects of Globalisation on Trade and the Supply Chain The combined efforts of 29 companies in 18 countries Source: IRU What does it take to have a cup of coffee in a café? Road transport has become a vital production tool! No country is landlocked to road transport!

Page 4 © International Road Transport Union (IRU) 2010 Evolution of sea containers in ports

Page 5 © International Road Transport Union (IRU) 2010 Daily telecommunications activities Telecommunications gap corresponds to the regions that have not been interconnected to global trade Source: Centre for Strategic International Studies (CSIS), Washington, DC

Page 6 © International Road Transport Union (IRU) 2010 If the Silk Road was the main trade artery 2000 years ago, why not today? Ancient Silk Road

Page 7 © International Road Transport Union (IRU) 2010 IRU New Euro-Asian Land Transport Initiative - NELTI Launched in September 2008Launched in September 2008 Commercial transport deliveries performed by transport operators from 12 Euro-Asian countriesCommercial transport deliveries performed by transport operators from 12 Euro-Asian countries 5 routes5 routes In cooperation with the Asian Development BankIn cooperation with the Asian Development Bank

Page 8 © International Road Transport Union (IRU) 2010 NELTI: Problems are Procedural! 40% of time lost at border crossings! Bakshish at the border accounts for 30% of additional costs!

Page 9 © International Road Transport Union (IRU) 2010 Page 9 © International Road Transport Union (IRU) 2010 If road construction is always beneficial, it is always more expensive, complex and time consuming than to implement the UN facilitation instruments How to reduce the “economic distance” Scenario 1: construct new roads

Page 10 © International Road Transport Union (IRU) 2010 Key aspects of the Model Highway Initiative (MHI) 1. 1.Institutional reforms 2. 2.Creation of support infrastructure 3. 3.Implementation of best practices 4. 4.Establishment of a multilateral investment fund

Page 11 © International Road Transport Union (IRU) st key aspect of the MHI Institutional Reforms Introduction of effective border crossing procedures based on international regulations Simplified procedures for allocation of land along the model highway Accession to and effective implementation of international agreements and conventions on trade and road transport facilitation Reduction of border waiting times jointly with anti-bribery action plan

Page 12 © International Road Transport Union (IRU) nd key aspect of the MHI Creation of Support Infrastructure Border crossing facilities Access to border crossing facilities Warehouses and multimodal logistics centres Gas stations Parking areas Motels

Page 13 © International Road Transport Union (IRU) rd key aspect of the MHI Implementation of Best Practices Introduction of “TIR Green Lanes” Implementation of electronic pre-declaration of goods (IRU TIR-EPD) Joint customs control procedures Implementation of Single Window border crossing procedure Recognition of the International Weight Certificate Simplified multi-entry visa for professional drivers

Page 14 © International Road Transport Union (IRU) th key aspect of the MHI The development of trade and road transport along the Great Silk Road needs a Multilateral Investment Fund for Implementation of administrative reforms Creation of support infrastructure Implementation of best practices

Page 15 © International Road Transport Union (IRU) 2010 Model Highway Initiative Selection of segments

Page 16 © International Road Transport Union (IRU) 2010 Page 16 © International Road Transport Union (IRU) 2010 Comparison of economic return from different types of infrastructure Source: The World Bank World Bank supported infrastructure projects

Page 17 © International Road Transport Union (IRU)