© International Road Transport Union (IRU) 2011 Page 1 E2A return shipments: Problems and Solutions Tampa, 26 January 2011 Igor Rounov Igor Rounov, IRU Under Secretary General

© International Road Transport Union (IRU) 2011 Page 2 IRU Initiatives

© International Road Transport Union (IRU) 2011 MHI Central Asia section

© International Road Transport Union (IRU) 2011 Page 4 IRU allocates funds to UN for demining activities in Northern Afghanistan IRU cooperation with UN MAS

© International Road Transport Union (IRU) 2011 Return Shipments Return shipments - transportation of goods, produced in Afghanistan, for the markets in Europe, America and Asia, using the containers and vehicles which deliver shipments of non-lethal goods to the US forces in Afghanistan

© International Road Transport Union (IRU) 2011 Traditional Afghan Export Goods   40% - skins and leather, wool, cotton and some types of fruit, including pomegranates and pomegranate juice ;   10% - carpets   Building materials (in particular, marble slabs), etc.

© International Road Transport Union (IRU) 2011 Consumers of Afghan Export  50% - neighboring Pakistan, Iran, Turkmenistan, Tajikistan, Uzbekistan  26% - USA  16% - EU ExportImport mln USD 5330 mln USD

© International Road Transport Union (IRU) 2011 Afghan Foreign Trade Imbalance REASONS oUntapped transport potential; oWeak marketing of Afghan goods in developed countries; oAbsence of export incentives for Afghan agricultural producers.

© International Road Transport Union (IRU) 2011 Afghan Export MAIN OBSTACLES No opportunities for consolidating shipments within the country No logistical link between export and import streams of cargoes Closed market of international haulage for foreign hauliers Poor condition of roads

© International Road Transport Union (IRU) 2011 Afghan Export PROSPECTS Investment projects in the country Gradual renovation of Afghan roads Restoration of olive tree plantations Production of saffron, soya, sunflower oil Construction of citrus and pomegranate farms Expansion of production of dried fruit

© International Road Transport Union (IRU) 2011 E2A return shipments possible routes

© International Road Transport Union (IRU) 2011 A2E via Turkmenistan

© International Road Transport Union (IRU) 2011 A2E via Uzbekistan

© International Road Transport Union (IRU) 2011 A2E via Tajikistan

© International Road Transport Union (IRU) 2011 Page 15 Main Challenges for E2A return shipments of traditional Afghan exports goods

© International Road Transport Union (IRU) 2011 Page 16 Challenges Road safety Customs security Prevention of drugs trafficking

© International Road Transport Union (IRU) 2011 Challenges Construction of warehouses – for consolidation of Afghan exports goods from different regions of the country

© International Road Transport Union (IRU) 2011 Challenges Crossing the Afghan border Afghan hauliers - absence of modern vehicles Difficulties with issuance of Afghan visas for foreign drivers Lack of English or Russian speaking Afghan drivers

© International Road Transport Union (IRU) 2011 Challenges Export of empty containers from Afghanistan

© International Road Transport Union (IRU) 2011 Challenges Integration of Afghanistan into the regional legal system of international road haulage

© International Road Transport Union (IRU) 2011 Challenges Creation of export- oriented zones

© International Road Transport Union (IRU) 2011 Challenges Accession of Afghanistan to the main UN conventions and agreements, as well as significant modernization of the legal base in the country

© International Road Transport Union (IRU) 2011 Afghan Transit Caravan DLA/IRU caravan; Route: Stuttgart – Kandahar; Via the territory of 12 countries; 20 containers; Pilot return delivery of 2 containers Outcomes: Establishment of most favorable conditions for road shipments along the Silk Road; Establishment of most favorable conditions for road shipments along the Silk Road; Encouragement for institutional reforms and economic cooperation between the transit countries; Encouragement for institutional reforms and economic cooperation between the transit countries; Establishment of return shipments of export cargoes from Afghanistan to Europe, using imported containers. Establishment of return shipments of export cargoes from Afghanistan to Europe, using imported containers.

© International Road Transport Union (IRU) 2011 IRU Analytical Report Currently IRU is preparing an Analytical Report on the possibilities and prospects for developing return shipments from Afghanistan. It will include specific recommendations for the Afghan Government, as well as for international organisations, for the expansion of international road haulage of export shipments and the integration of Afghanistan into the international transportation system.

© International Road Transport Union (IRU) th Euro-Asian Road Transport Conference

© International Road Transport Union (IRU) 2011 Page 26