(c) International Road Transport Union (IRU) 2011 Innovation in Transport & Technology Green Logistics Session World Bank Transport Forum Washington, 29 March 2011 Jens Hügel Head - Sustainable Development

This is the IRU © International Road Transport Union (IRU) 2011 Page 2

Evolution of IRU Membership Created 1948 National Associations from 8 founding countries BelgiumBelgiumDenmarkDenmarkFranceFranceNetherlandsNetherlands NorwayNorwaySwedenSwedenUKUKSwitzerlandSwitzerland © International Road Transport Union (IRU) 2011 Page Members 74 Countries

IRU Priority Issues  Sustainable Development InnovationInnovation IncentivesIncentives InfrastructureInfrastructure  Facilitation TradeTrade TourismTourism Road TransportRoad Transport © International Road Transport Union (IRU) 2011 Page 4

The Biggest Innovation is? Source, IRU Road Transport! It has become a vital production tool! What does it take to have a cup of coffee in a café? The combined efforts of 29 companies in 18 countries Page 5 © International Road Transport Union (IRU) 2011

Innovation reduces Commercial Vehicle Toxic Emissions Page 6 (c) International Road Transport Union (IRU) 2011 Source: IRU based on EU Commission 2008, US Environmental Protection Agency 2010, Japan Ministry of the Environment % - 95% - 97% - 98%

(c) International Road Transport Union (IRU) 2011 Page 7 Innovation Reduces Fuel Consumption Source: Verband der Automobilindustrie (VDA) e.V., %

IRU’s 3 “i”s for Sustainable Development 1.Innovation – develop ever more effective “at- source” technical measures & operating practices to reduce environmental impact. 2.Incentives – encourage faster introduction by transport operators of best available technologies and practices. 3.Infrastructure – ensure free-flowing traffic through adequate investment in new infrastructure, to remove bottlenecks and missing links and make full use of existing infrastructure. © International Road Transport Union (IRU) 2011 Page 8

IRU « 30 by 30 » Resolution The road transport sector has voluntarily committed, on the basis of innovative technologies and practices, to reduce CO 2 emissions by 30% by 2030 based on transport performance in tkm and pkm. - 30% CO 2 by 2030 © International Road Transport Union (IRU) 2011 Page 9

IRU « 30 by 30 » Resolution  Through investments in innovative engine and latest vehicle technology;  Through driver training, as provided by the IRU Academy;  Through innovative logistic concepts, such as ITS and optimised weights and dimensions of heavy commercial vehicles. © International Road Transport Union (IRU) 2011 Page 10

Modular Concept – the Innovative Solution for Green Logistics © International Road Transport Union (IRU) 2011 Page 11  reduction of fuel consumption  reduction of CO 2 emissions  reduction of number of trips  reduction of transport cost  reduction of fuel consumption  reduction of CO 2 emissions  reduction of number of trips  reduction of transport cost Longer and heavier vehicles provide better rather than more transport!

© International Road Transport Union (IRU) Further Examples of Green Logistics Benefits for the environment Benefits for the road transport operator Driver training and Well Driven Campaigns Lower fuel consumption Less CO 2 emissions Lower fuel costs Less vehicle downtime Lower insurance costs Environmental Management Systems (EMS) Less waste Less consumption of water, fuel and other resources Lower taxes and charges Lower fuel costs, water bill, electricity cost Source : IRU, 2008 Page 12 Green Logistics = Profitability!

(c) International Road Transport Union (IRU) 2011 Implementing Green Logistics Learning from the best Page 13

International Road Transport Union (IRU) 2011 Page 14 Innovation is not a Panacea ChinaUSA EU Source: IRF World Road Statistics 2006, Eurostatt 2008 (road expenditure in million $ / 2004) FranceSpainPolandSwitzerland Adequate infrastructure is a sine-qua non condition for green logistics!

Page 15 © International Road Transport Union (IRU) 2011© International Road Transport Union (IRU) 2011 Comparison of Economic Return from Different Types of Infrastructure Source: The World Bank World Bank supported infrastructure projects

The Innovative Model Highway Initiative (MHI) 1. 1.Institutional reforms 2. 2.Creation of support infrastructure 3. 3.Implementation of best practices 4. 4.Establishment of a multilateral investment fund

© International Road Transport Union (IRU) 2011 Page 17 Innovation in Green Logistic It can go wrong! Biofuels increase food prices!

© International Road Transport Union (IRU) 2011 Page 18 Biofuels are not CO 2 Neutral

Innovation in Green Logistics – Myths and Reality! © International Road Transport Union (IRU) 2011 Page 19 Myth: Combined transport is the most environmentally friendly way of transport in terms of CO 2 emissions Reality: Rail transport achieves lowest CO 2 emissions where trains use electricity from nuclear power stations. ? Combined Transport is not inherently more environmentally friendly!

IRU’s 3 “i”s for Sustainable Development 1.Innovation – develop ever more effective “at- source” technical measures & operating practices to reduce environmental impact. 2.Incentives – encourage faster introduction by transport operators of best available technologies and practices. 3.Infrastructure – ensure free-flowing traffic through adequate investment in new infrastructure, to remove bottlenecks and missing links and make full use of existing infrastructure. © International Road Transport Union (IRU) 2011 Page 20

Road Freight Transport: Interconnecting every business and every transport mode

Page 22 (c) International Road Transport Union (IRU) 2011