4th IRU Euro-Asian Road Transport Conference Reopening of the Silk Road – Driving Progress, Regional Stability and Peace Mr Paul Laeremans President of the IRU 4th IRU Euro-Asian Road Transport Conference Warsaw, 14-15 June 2007 © International Road Transport Union (IRU) 2007

UNECE 60 years 1947-2007 © International Road Transport Union (IRU) 2007

European Union 50 years 1947-2007 © International Road Transport Union (IRU) 2007

Marco Polo on his trip to Asia 1271 © International Road Transport Union (IRU) 2007

The first truck 1897 © International Road Transport Union (IRU) 2007

IRU – 60 years of Public-Private Partnership © International Road Transport Union (IRU) 2007

2007 180 Members 70 Countries IRU Membership 8 Founder States: Created 1948 8 Founder States: Belgium Denmark France Netherlands Norway Sweden UK Switzerland 2007 180 Members 70 Countries © International Road Transport Union (IRU) 2007

Welcome to the 4th Euro-Asian Conference! © International Road Transport Union (IRU) 2007

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 Road transport has become a vital production tool! Source: IRU © International Road Transport Union (IRU) 2007

Road transport tonnage distances in Europe © International Road Transport Union (IRU) 2007

Evolution of sea containers in ports in 1971 The container movements in the main ports started with the birth of world containerisation in the 1970s. In the 1970s, it was a high number of ports linked with a high number of small container vessels. © International Road Transport Union (IRU) 2007

Evolution of sea containers in ports in 1980 In the 1980s, there were bigger vessels and only five ports were emerging – New York and Rotterdam were the biggest. Hong Kong, Shanghai, and Singapore were emerging. © International Road Transport Union (IRU) 2007

Evolution of sea containers in ports in 1990 In the 1990s the same trend continued. The huge growth in Asian trade was and remains by the Pacific route to California. © International Road Transport Union (IRU) 2007

Evolution of sea containers in ports in 2000 In 2000, due to globalisation, the same trend continued at an even higher speed, mainly in the Asian ports. The Asian ports, due to the lack of road infrastructure, exploded in volume. © International Road Transport Union (IRU) 2007

Evolution of sea containers in ports in 2006 The 2006 situation shows clearly why we have such massive congestion in all the main ports. The concentration of trade in a few ports generates not only bottlenecks, congestion and delays but above all additional costs! This concentration of 80% of world trade in very few ports also creates a desertification of trade development in numerous regions that most require economic, social and political stability. Our dream is to create, with road transport, peace and prosperity not only in a handful of ports, but in all the other regions. © International Road Transport Union (IRU) 2007

Saturated Ports Saturated Sea transport Land transport Key: to US West Coast to US West Coast Sea transport Land transport Key: © International Road Transport Union (IRU) 2007

It worked for Marco Polo If the Silk Road worked for Marco Polo then, why shouldn’t it work for trade and transport today? … I had a dream to reopen the ancient Silk Road, which has been closed despite modern transport technology for 700 years The Silk Road was closed firstly because sea transport was more competitive and less risky, secondly for political reasons, and thirdly because of ignorance. Today, I am here to make you “wake up and smell the coffee” or as Marco Polo said, “wake up and smell the espresso” © International Road Transport Union (IRU) 2007

Beijing-Brussels Caravan Launch of Historic Beijing-Brussels Caravan Brussels The truck caravan also demonstrated that it was possible to organise a new logistic chain from Beijing, to all the major markets such as the US, EU, Black Sea, the Middle East and the CIS, without spending one penny in infrastructure costs. Beijing © International Road Transport Union (IRU) 2007

Interconnecting all the businesses along the reopened Silk Road To East Coast Saturated To US East Coast Labour costs = $200/month Diesel fuel = 30 cents / litre To Black Sea to US West Coast to US West Coast Today, the reopening of the Silk Road creates numerous new opportunities. Currently China-US trade is mainly transported through the Pacific, which is, as I have just shown you, saturated. causes saturation and unnecessary costs. But to reach 60% of the US market, one still needs to reach the East coast. By doing so, without mentioning the reduction in mileage, companies will benefit from modern trucks, but a fuel price of 30 cents per litre … and labour costs of less than $200 dollars per month. Sea transport Land transport Key: © International Road Transport Union (IRU) 2007

Interconnecting all the businesses along the reopened Silk Road To CIS To East Coast To EU Saturated To US East Coast To Black Sea to US West Coast to US West Coast To Mid East By doing so, we can not only transport goods from China to the US East coast, but we interconnect all the businesses along the 12,000 kilometre Silk Road, thus realising new business opportunities. In fact, by going West, companies will also find their Middle Eastern markets, and we can interconnect all those businesses along that Middle East route, they can find their EU markets, and we can interconnect all the businesses along the EU route, they can find the CIS markets and we can interconnect all those businesses along the CIS route. ***** A truck is not a boat, it is not a train, it is not a plane. Truck service is not concentrated in a handful of ports. A truck is always, everywhere, at the disposal of everyone. Thus, “looking West”, one can find fabulous new business opportunities. Sea transport Land transport Key: © International Road Transport Union (IRU) 2007

Silk Road Feasibility Study The feasibility of my dream is also proved by the recent US Chamber of Commerce’s study on the “land transport options between Europe and Asia” just published. © International Road Transport Union (IRU) 2007

Driver Visa Problems Work to overcome Schengen restrictions Increase validity of visas Ease driver shortage by visa facilitation Consider access to visa as a human right © International Road Transport Union (IRU) 2007

Help me to help you! © International Road Transport Union (IRU) 2007