Global Challenges Require Global Solutions University of Mumbai, 11 January 2008 Umberto de Pretto Deputy Secretary General © International Road Transport Union (IRU) 2008

Evolution of IRU Membership 2007 180 Members 72 Countries Created 1948 8 Founder States: Belgium Denmark France Netherlands Norway Sweden UK Switzerland Updated August 2007 © International Road Transport Union (IRU) 2008

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) 2008

Impact of Globalisation on transport Saturated to US West Coast to US West Coast As you know, China has become the factory of the world. 75% of your goods are produced in China. Wal-Mart, the biggest company in the world, produces 80% of its goods in China. What is the impact of this huge growth? The ports are saturated. (UDP – click – saturated) Why and where are the ports so saturated? Let me show you. Sea transport Land transport Key: © International Road Transport Union (IRU) 2008

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) 2008

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 This is why I am ready to share with you this dream that has already become a reality. Currently China-US trade is mainly transported through the Pacific, which as I have just shown you … causes saturation and unnecessary costs. But to reach 60% of your market you still need to reach the East coast. Instead of looking East, be a pioneer. “Go West young man”, like any modern-day cowboy, by truck, to the Black Sea or the Baltic Sea, and from there with the container vessels directly to your East ports. By doing so, without mentioning the reduction in mileage, you will benefit from modern trucks, but a fuel price of $1.18 per gallon, instead of $2.65 … and labour costs of $200 dollars per month. Sea transport Land transport Key: © International Road Transport Union (IRU) 2008

Interconnecting all the businesses along the reopened Silk Road To CIS To East Coast To EU Saturated To US East Coast to US West Coast to US West Coast To Mid East By doing so, we are not only transporting goods from China to the States, but we are interconnecting all the businesses along the 8,000 mile Silk Road, thus realising new business opportunities. In fact, by “looking West, young man”, you will also find your Middle Eastern markets, and we can interconnect all those businesses along that Middle East route, you can find your EU markets, and we can interconnect all the businesses along the EU route, you 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”, you could find fabulous new business opportunities. Remember, a truck provides door-to-door service. A truck is therefore the best tool to unite people and to improve the distribution of wealth. You might be looking at me and saying, “Martin, you’re crazy!” But I say to you again, “wake up and smell the coffee, my dream has become reality.” 25% of world trade with neighbours sharing common border 50% of world trade between partners less than 3,000 km apart Trade between Canadian provinces 22 times greater than trade between a Canadian province and US state of similar size and distance Sea transport Land transport Key: © International Road Transport Union (IRU) 2008

Beijing-Brussels Caravan Launch of Historic Beijing-Brussels Caravan Brussels Beijing © International Road Transport Union (IRU) 2008

UNESCAP-IRU Asian Highway Truck Caravan Be a partner © International Road Transport Union (IRU) 2008

Contracting Parties to 56 UN Conventions – status at 6 June 2007 © International Road Transport Union (IRU) 2008

Main Trade & Transport Facilitation Legal Instruments of the UN (1) Convention on Road Signs and Signals of 1968 Convention on Road Traffic of 1968 Global Vehicles Regulations, 1998 AETR Agreement, 1970 CMR Convention 1956, and its Protocol of 1978 The UN legal instruments which are important for the road transport industry and should thus be dealt with on a priority basis, as Turkey is not yet a Contracting Party to all of them, are the following: © International Road Transport Union (IRU) 2008

Main Trade & Transport Facilitation Legal Instruments of the UN (2) International Convention on the Harmonisation of Frontier Control of Goods of 1982 Conventions on Temporary Importation of Road vehicles (1954-Private, 1956- Commercial) ATP Agreement of 1970 ADR Agreement 1957 and its Protocol of 1993 TIR Convention, 1975 Customs Container Convention, 1972 While concluded under auspices of the Economic Commission for Europe, most of these Legal Instruments are open to all Member States of the United Nations. As a matter of fact, a large number of UN Member States that are not members of the Economic Commission for Europe have already become Contracting Parties to these Legal Instruments.   To become Contracting Party to any of these Conventions or Agreements, a Member State must deposit with the Secretary-General an instrument of accession, acceptance or approval, indicating its intention to implement the provisions of the Convention or Agreement. Becoming a Contracting Party does not involve any financial obligation or fee. This presentation contains a summary description of the Objectives, Key Provisions and Benefits of each of the selected legal instruments. For the sake of efficiency I will only deal in-depth with those to which Turkey is not a Contracting Party. © International Road Transport Union (IRU) 2008

UNESCAP Resolution 48/11, 1992 UNESCAP promoted through this resolution the aim of reaching a minimum level of facilitation among its member countries, therefore it selected 7 legal instruments judged as being of vital importance for facilitating international transport while providing for a high level of safety, security and environmental protection in transport.   By facilitating international transport, they provide the basic conditions for the development of international trade, exports and imports, which are a key factor, and an increasingly important one, for the economic and social development of countries, particularly of landlocked developing countries. At the same time they are a means to avoid isolationism… © International Road Transport Union (IRU) 2008

TIR System an overview Facilitation © International Road Transport Union (IRU) 2008

The TIR System Worldwide Future Contracting Parties: PAK, PRC, SAU, THA, UAE, YEM… AND INDIA? ? 1949 6 Pioneer States : BEL, DEU, FRA, ITA, LUX, NLD, Now: 67 Contracting Parties Now 55 Operational Countries © International Road Transport Union (IRU) 2008

Applicability of TIR Convention Road Rail Sea ... using road for at least one leg of the journey INTERMODALITY © International Road Transport Union (IRU) 2008

IRU World Congress 2008: Istanbul JOIN US! 15-16 May 2008: Register @ www.iru.org © International Road Transport Union (IRU) 2008

5th Euro-Asia Conference: Almaty 11-12 June 2009! © International Road Transport Union (IRU) 2008

© International Road Transport Union (IRU) 2008