FREIGHT AND LOGISTICS LEADERS FORUM Hamburg, 7 May 2009 Umberto de Pretto Deputy Secretary General © International Road Transport Union (IRU) 2009

Evolution of IRU Membership 2009 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 vital production tool! Source: IRU © International Road Transport Union (IRU) 2009

Road transport tonnage distances in modern economies © International Road Transport Union (IRU) 2009

Sustainable Development IRU Charter for Sustainable Development (1996) IRU Initiative “Driving Towards Sustainable Development” (1997) IRU Guide to Sustainable Development (2000) IRU Reports on Road Transport Best Industry Practices (2002/4) Industry as a Partner for Sustainable Development UNEP (2002/6) © International Road Transport Union (IRU) 2009

IRU’s 3 “i”s for Sustainable Development 1. innovation – to develop ever more effective “at-source” technical measures & operating practices to reduce environmental impact. 2. incentives – to encourage faster introduction by transport operators of best available technology and practices. 3. infrastructure – without free-flowing traffic, the above measures are useless. Adequate investment in new infrastructure to remove bottlenecks and missing links, plus fullest use of existing infrastructure, are essential. © International Road Transport Union (IRU) 2009

Focusing on toxic emissions first Evolution of Commercial Vehicle Emission Standards in the EU - 88% -95% - 97% - 98% Source: Eur Commission 2008 © International Road Transport Union (IRU) 2009

Evolution of Fuel Consumption 40-tonne truck 1970-2004: -36% Massive investments in the latest technology by the road transport operators have significantly increased fuel efficiency as a result fuel consumption between 1970 and 2005 has dropped from 50 litres/100km to 32 litres/100km…. Leading in turn to a direct drop in CO2 emissions. Source: Verband der Automobilindustrie (VDA) e.V., 2004 © International Road Transport Union (IRU) 2009

Misperception – who really produces CO2 3% 27% 33% 30% 17% 20% Power generation Heating Other (waste disposal agriculture, etc) Private Car, Airline, Ship, Rail Goods transport by road While power generation and heating contribute to over 50% of CO2 emissions, these are areas where viable alternate energy sources with low CO2 emissions exist already today. Man made sources of carbon dioxide come mainly from the burning of various fossil fuels, including diesel fuel. The use of fossil fuel varies from country to country. However, figures taken from the UNFCCC reporting system for the KYOTO protocol for developed countries show that fossil fuel is mostly used for: Power generation: 33% Heating: 20% Other ( waste disposal, agriculture…): 17% Private car, airlines, ships, rail…: 27% Goods transport by road : 3% © International Road Transport Union (IRU) 2009

Road transport is 100% dependent on oil - Energy Characteristics of Various Fuels Weight & volume of fuel tank for same amount of energy Weight coefficient Volume coefficient Petrol / gasoline 1 Diesel Fuel Propane (C3H3) 8 1.9 Butane (C4H10) 1.4 Hydrogen (H2) - Gas at 200 BAR 25 22 Hydrogen (H2) - Liquid at -253°C 4 5.8 Metal Hydride - Magnesium 5 3.2 Metal Hydride - Vanadium 10 1.7 Metal Hydride - Iron-Titanium 20 Methanol (CH3OH) 2.2 2.1 Ethanol (C2H5OH) 1.62 1.53 Lead Battery 70 12 © International Road Transport Union (IRU) 2009

Focus on the right issue! Fossil fuel is not renewable! Our industry is 100% dependent on oil. No economically viable alternatives to fossil fuel. Our duty is to ensure that our children’s children can benefit from black gold through a sustainable energy policy. © International Road Transport Union (IRU) 2009

Clean rail transport – only with nuclear power Combined Transport achieves lowest CO2 emissions where trains use electricity from nuclear power stations. Lille-Avignon (train for semi-trailers, nuclear electricity) Pure Road Transport (same route) CO2 emissions (index) Source: IFEU, SGKV, 2001 © International Road Transport Union (IRU) 2009

European Modular Concept – Supporting Co-Modality Reduction of transport cost by 23% Reduction in number of trips by 32% Reduction of fuel consumption by 15% Reduction of CO2 emission by 15% BETTER TRANSPORT rather than MORE TRANSPORT Harmonisation and standardisation of various combinations is needed to allow intra- and inter-modal exchangeability. © International Road Transport Union (IRU) 2009

Increasing number of companies facing major financial difficulties © International Road Transport Union (IRU) 2009

Governments aid banks, yet road transport more vital to trade! © International Road Transport Union (IRU) 2009

Road transport is penalised rather than promoted and facilitated © International Road Transport Union (IRU) 2009

IRU Resolution and letter of support from the WEF on the impact of the economic crisis on road transport © International Road Transport Union (IRU) 2009 © International Road Transport Union (IRU) 2009

G20 leaders call for facilitation of trade and road transport! Page 18 © International Road Transport Union (IRU) 2009 © International Road Transport Union (IRU) 2009

New business opportunities during times of economic crisis © International Road Transport Union (IRU) 2009