The world is changing and we must change with it! 20-21 February 2007, Moscow Martin Marmy IRU Secretary General © International Road Transport Union (IRU) 2005

Why China grows - The Asian Model Real GDP growth, 5Y average 1 2 3 4 5 6 7 8 Real GDP growth in % If you invest more, If you add more labour, If you have more labour with more investments you will have growth! This slide demonstrates perfectly why China grows, why the Asian model is not a miracle, but is based on the following fact: [click] If you invest more, if you add more labour, you will have growth! The growth of the Asian model demonstrates that the growth in China and India is, at 7-10%, more than 3 times faster than the growth in the US or the EU. Source: UBS Investment Bank © International Road Transport Union (IRU) 2005

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! Let me explain with the simple example of a cup of coffee what globalisation is. In Europe, to have a cup of coffee at a café at the current market price requires the collaborative efforts of 29 companies from 18 countries. If 29 companies are required to produce a cup of coffee, can you imagine how much more it would cost to create an affordable motor car, a computer or a DVD machine? I am using this example to explain what globalisation is. For example, to make a car, it requires 10,000 suppliers, each of which have suppliers. Road transport interconnects all these businesses. It has therefore become a vital production tool. Source: IRU © International Road Transport Union (IRU) 2005

Evolution of sea containers in ports Global container volume 1971 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. Source: TNO, 2006 © International Road Transport Union (IRU) 2005

Global container volume 1980 In the 1980s, there are bigger vessels and only five ports are emerging – New York and Rotterdam are the biggest. Hong Kong, Shanghai, and Singapore are emerging. Source: TNO, 2006 © International Road Transport Union (IRU) 2005

Global container volume 1990 In the 1990s the same trend continues. Bigger vessels and only eight major ports are emerging. The huge growth in Asian trade is by the Pacific route to California. New York staying constant, while the Asian ports, due to the lack of road infrastructure, exploded in volume. Source: TNO, 2006 © International Road Transport Union (IRU) 2005

Global container volume 2000 In 2000, due to globalisation, the same trend continues at an even higher speed, mainly in the Asian ports. Source: TNO, 2006 © International Road Transport Union (IRU) 2005

Global container volume 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 world trade in very few ports also creates a desertification of trade development in numerous regions that most require economic, social and political stability. Remember, my name is Martin, and I have a dream. You also know that progress consists of realising dreams. My dream, which is fully shared by the US Chamber of Commerce, is to create peace and prosperity not only in a handful of ports, but in all the other regions. Source: TNO, 2006 © International Road Transport Union (IRU) 2005

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 are not only transporting goods from China to the United States, but we are more importantly interconnecting all the businesses along the 12,000 kilometer Silk Road, thus realising new business opportunities. In fact, by “looking West”, Pioneers 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, and of course, 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. It is time that we all “wake up and smell the coffee”…the 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) 2005

Beijing Euro-Asian Road Transport Conference and Ministerial Meeting, 26-27 September 2005 For more than ten years, nobody believed in my dream. Nobody believed it was possible to go West. Today I can tell you, “it is possible, it has already been done.” It was the Chinese Government who first believed in my dream. My dream has become reality. With the Vice-Prime Minister Ju Huang, who is standing beside me in the picture, we organised together for the first time a commercial trucks caravan, along the 12,000 kilometers of the Silk Road from Beijing to Brussels. © International Road Transport Union (IRU) 2005

Beijing-Brussels Caravan Launch of Historic Beijing-Brussels Caravan Brussels Today, it is possible to organise a new logistic chain from Beijing, to all the major markets, without spending one penny in infrastructure costs. This trucks caravan also demonstrated that Chinese containers could be shipped to the US, not only from one Black Sea country, but from the twelve different countries along the Black Sea, which all have different political and social advantages, and therefore highly competitive rates and excellent service in ports. Beijing © International Road Transport Union (IRU) 2005

We should start “working together for a better future”. © International Road Transport Union (IRU) 2005