1. 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

2. © International Road Transport Union (IRU) 2009

3. 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

4. Evolution of IRU Membership
Members 74 Countries
Created 1948
8 Founder States:
Belgium
Denmark
France
Netherlands
Norway
Sweden UK
Switzerland
© International Road Transport Union (IRU) 2009

5. 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

6. 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
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© International Road Transport Union (IRU) 2008 6

7. Road transport tonnage distances in modern economies
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8. 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

9. Beijing-Brussels Caravan
2005 Launch of Historic
Beijing-Brussels Caravan
Brussels
Beijing
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10. IRU NELTI Project: interconnecting every business to every major world market
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11. 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
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12. NELTI Routes
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13. NELTI: Problems are Procedural!
1. Time spent en route by all vehicles days
1. Time spent en route by all vehicles days
40% of time lost at border crossings!
Bakshish at the border accounts for 30% of additional costs!
2. Distance covered km
3. Amount of official levies paid USD
3. Amount of official levies paid USD
4. Sum of unjustified levies paid USD
4. Sum of unjustified levies paid USD
5. Number of stops en route
6. Number of state border crossings 1064
7. Length of downtime en route days
7. Length of downtime en route days
8. Cargo carried tonnes
© International Road Transport Union (IRU) 2009

14. 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

15. 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

16. 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

17. 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. 18 © International Road Transport Union (IRU) 2009