1. 31.10..2007IRU Academy Seminar on Professional Management of Large Scale Transport Companies 1 GLOBAL UN CONVENTIONS AND ROAD TRANSPORT TAMER DİNÇŞAHİN UND PRESIDENT

2. 2  According to WTO Statistics: Value of world trade (exports + imports) has amounted to US $ 20 trillion World trade increases twice as fast as world production… GLOBAL TRADE AND TRANSPORT

3. 3 RELOCATION AND DECENTRALISATION OF PRODUCTION ↓ LOWERING INPUT AND PRODUCTION COSTS ↓ ECONOMIC EFFICIENCY ↓ WORLDWIDE SALES AND DELIVERY However, global goods flow and production flows are IMPOSSIBLE without DELIVERING THE RIGHT PRODUCT TO THE RIGHT PLACE AT THE RIGHT TIME… meaning “TRANSPORT”

4. 4 Therefore, the quality of logistics services offered to customers with higher expectations, is a factor in competitiveness in global markets…. GLOBAL TRADE AND TRANSPORT

5. 5  Value of the global logistics industry amounted to nearly US $ 7 trillion  Promising regions include Asia-Pacific, Latin America, Eastern Europe and Africa- Middle East. GLOBAL LOGISTICS INDUSTRY

6. 6  Value of the European logistics market has exceeded EUR 730 billion dollars  EU expects to have a 38 % increase in the demand for freight transport services by 2010 EUROPEAN LOGISTICS INDUSTRY

7. 7 Coupled with the rapid increase in and expansion of e-commerce ↓ the logistics management principle Just In Time has been replaced by Anytime-All the Time MEANING: Logistics processes that are now a part of the production process, MUST be flexible and faster than ever ! LATEST TRENDS IN GLOBAL LOGISTICS

8. 8 Road Transport:  Production of welfare and its distribution throughout the society  Flexibility, speed and cost-effectiveness  Availability for door-to-door deliveries SIGNIFICANCE OF ROAD TRANSPORT Road transport is an integral part of national economies… Plays an integral role in proper functioning of economies, production and distribution and trade.. A production tool per se…

9. 9  Road transport industry (including poduction of motor vehicles and parts, auxiliary servicces and infrastructure) employs 6.5 million people in Europe and  has a 5% contribution to European GDP  Value of European road transport industry is EUR 200 billions  Contribution of road transport to national economies around the world ranges from 10 % to 20% MATERIAL VALUE OF ROAD TRANSPORT

10. 10  Poor condition of roads and relevant infrastructures  Conditions of infrastructure varies from country to country  National road transport legislation and rules differ from country to country  Long waiting times at borders  Long and cumbersome border crossing procedures (controls, complex visa procedures and customs procedures etc.)  Long waiting times have negative impact upon health conditions of drivers, lower resting times and eventually cause accidents  Drivers are subject to frequent attacks and organized crime COMMON PROBLEMS HINDERING THE PERFORMANCE OF ROAD TRANSPORT

11. 11 Such problems are mainly caused by arbitrary, country-specific and inconsistent practices leading to SERIOUS ECONOMIC LOSSES – DELAYS and COST INCREASES and these are ULTIMTALEY REFLECTED TO END USERS OF GOODS – NATIONAL ECONOMIES …

12. 12 Duty of governments:  Ensuring reliable and efficient connections between production and consumption; among related transport markets Duty of road transport associations:  Ensuring that road transport businesses operate under equal conditions in expanding markets We must co-operate with international organisations and governments to ensure optimum design, implementation and control of legal, financial and technical conditions in order to eliminate unfair competition as well as restrictive and arbitrary practices SIGNIFICANCE OF ROAD TRANSPORT

13. 13 GLOBALISATION OF TRADE AND PRODUCTION NECESSITATES TRADE FACILITATION EFFORTS AT GLOBAL LEVEL GLOBAL TRADE AND TRANSPORT

14. 14 IRU-BSEC RING HIGHWAY CARAVAN  The Caravan findings indicate tat waiing times at borders around BSEC amount to 5 million hours annually  Direct costs of waiting times amount to EUR 104 million  Indirect + direct costs of waiting times amount to EUR 208 million FACILITATION OF TRADE AND TRANSPORT: INTERNATIONAL EFFORTS

15. 15 Global UN Conventions – concrete gains of international cooperation: facilitate transport by  Harmonising country-specific and inconsistent border and customs practices  Reducing red-tape expect 50 % decrease in costs GLOBAL UN CONVENTIONS AS A TOOL FOR FACILITATION

16. 16 Bearing in mind, the socio-economic significance of road transport and its challenges, governments of United Nations came together in 1947 to cooperate for the facilitation of road transport... GLOBAL UN CONVENTIONS AS A TOOL FOR FACILITATION

17. 17 Under the aegeis of UNECE, UN governments negotiated and participated /ratified 56 legally binding multilateral conventions. Turkey is already a party to 20 of these conventions. UNECE AND GLOBAL CONVENTIONS ON ROAD TRANSPORT

18. 18 CMR TIR AGR AETR 1982 HARMONIZATION CONVENTION * Final ratification of participation to ADR is expected in the first half of 2009. TURKEY AND UN CONVENTIONS: SOME EXAMPLES

19. 19 Current performance of Middle Eastern countries indicate a need for further imporvement with regard to participation to Global UN Conventions: Algeria joined 9 UN Conventions (is a party to TIR but not a party to an equally important one: CMR) Bahrain joined only 2 UN Conventions; not a party to TIR nor CMR Egypt joined 5 UN Conventions; not a party to TIR nor CMR Iran joined 9 UN Conventions (including TIR and CMR) Jordan and Lebanon joined 6, Kuwait joined 4 and Saudi Arabia joined only 2 UN Conventions so far... GLOBAL CONVENTIONS AND MIDDLE EASTERN COUNTRIES

20. 20 Thanks to these legal documents :  Infrastructure networks are harmonised and streamlined  Border crossing procedures are harmonised and simplified  Arbitrary restrictions and practices are eliminated  Legislation aimed at increasing transport efficiency, safety and protecting environment are harmonised among countries BENEFITS OF GLOBAL UN CONVENTIONS

21. 21 One of the most influential trade & transport facilitation tools developed by UNECE  In force since 1975  Based on close cooperation between UNECE and IRU as well as between national customs administrations and IRU  No repetitive customs controls at borders  No additional customs duties incurred at every transit customs office  Decrease in waiting times at borders and in costs alongside maximum safety and security in transport operations. TIR CONVENTION

22. 22  Implemented in 55 countries  Made Turkish international road transport fleet, one of the strongest fleets in Europe, ensuring unrestricted transportation of Turkish foreign trade goods in 55 countries  20 % of the 3 million TIR Carnets used around the world in a year, is used by Turkish road transport operators  In 2006, the number of TIR Carnets used by Turkish operators amounted to 689.000 Turkey is one of the leading beneficiaries of TIR System… TIR CONVENTION

23. 23  China will join the TIR system in 2008.  Work for participation are underway in Pakistan, India and Saudi Arabia.  Expansion of TIR System will bring many opportunities for Turkish transport operators and Turkish foreign trade. EXPANSION OF TIR SYSTEM

24. 24 Thanks to the perfect functioning of TIR System in 55 countries and acceptance (prestige) of TIR Carnets by national customs administrations, today, TIR Carnets distributed in Turkey by TOBB, have never experienced any problem of recognition in any country. BENEFITS OF TIR SYSTEM

25. 25 Turkey’s (Turkish Grand National Assembly’s) approval to participate the ADR Convention, was an important decision with important implications for regional as well as global transport. TURKEY AND ADR CONVENTION 2007: 50th ANNIVERSARY OF ADR CONVENTIONS

26. 26  In 2006, we celebrated the 50th Anniversary of CMR Convention  Thanks to this convention, implemented by 46 countries, legislation regulating international road transport contracts been unified from Atlantic to Pacific, from East to West… CMR CONVENTION

27. 27 TURKEY Turkey, situated at the crossroads of a 600 billion worth flow of goods between East and West in the heart of the Eurasian trade through her extensive road network, railways, seas surrounding 3 sides of the country,airports and distribution centers; is connecting Europe, the Balkans, the Black Sea Caucasus, Middle East and North Africa. Thanks to this strategical position,she has the potential for becoming the most significant logistics hub in this geopolitical setting and this potential has been realized day by day…

28. 28  6,1 % growth rate, higher than EU average  Value of exports is over US $ 100 billion, before the end of 2007  A consumer market of 70 million  Strategic location at intersection of transport routes within Eurasia  Lower-wage but qualified labor force  Young and dynamic population  World-class service in transport and logistics by one of the largest road transport fleets in Europe DATA ON TURKISH ECONOMY

29. 29 UND AIMS TO MAKE TURKEY THE REGIONAL LOGISTICS HUB AND TO RAISE THE SECTOR’S CONTRIBUTION TO THE ECONOMY TO AT LEAST 10 % OF NATIONAL GDP.

30. 30 TURKISH INTERNATIONAL ROAD TRANSPORT INDUSTRY  53 % of Turkish exports are carried by Turkish road transport opeators  Turkish trucks carry out nearly 1 million export trips annually

31. 31 International Road Transport Industry represented by UND : 980 Members A fleet of 43.000 tractor-trucks USD 5 billions of investment Employ 400.000 people Foreign exchange revenue brought to Turkey amounts to USD 4 billion per year

32. 32  Share of goods transport in Turkish transport industry is 92 %  Number of licensed international road transport operators amounted to 1400  Capacity of own-vehicle fleet has exceeded 2 billion tonnes TURKISH INTERNATIONAL ROAD TRANSPORT INDUSTRY

33. 33 31ST IRU WORLD CONGRESS WILL BE HELD IN ISTANBUL ON 15-16 MAY 2008 WITH THE THEME: REVIVAL OF THE ANCIENT SILK ROAD

34. 34 TRANSPORT RELATIONS WITH MIDDLE EAST  Turkish export goods transport operations to Middle East amount to 600.000 trips per year  There have been an annual 30 % increase in the number of transit operations between Europe and Middle Eastern countries through Turkey

35. 35  Changing global logistics map of the 21st century…  Asia’s increasing role in global economy…  Rapidly expanding goods traffic between Europe and Asia… ENSURING SMOOTH TRADE & TRANSPORT FLOWS BETWEEN EUROPE AND ASIA SHOULD BE A PRIORITY FOR THE COUNTRIES IN OUR REGION. BECAUSE ONLY WHO FACILITATES WILL BE THE ONE WHO BENEFITS FROM THE “REVITALIZED SILK ROAD”...

36. 36 THANK YOU.