WELCOMEPABSECWELCOMEPABSEC Geneva, 10 March 2011

Evolution of IRU Representation 1948 IRU founded in Geneva 1973 IRU Permanent Delegation to the EU established in Brussels 1998 IRU Permanent Delegation to the CIS established in Moscow 2005 IRU Permanent Delegation to the Middle East established in Istanbul

Page 4 Evolution of IRU Membership Created Founder States: Created Founder States: BelgiumDenmarkFranceNetherlands NorwaySwedenUKSwitzerland Members 74 Countries

What is Globalisation? The combined efforts of 29 companies in 18 countries Source: IRU Road Transport has become a production tool! What does it take to have a cup of coffee in a café?

Road transport tonnage distances in modern economies

Impact of Globalisation on transport Sea transport Land transport Key: to US West Coast Saturated Saturated

Evolution of sea containers in ports

Interconnecting all the businesses along the reopened Silk Road Sea transport Land transport Key: to US West Coast To East Coast Saturated Saturated To Black Sea Diesel fuel = 30 cents / litre Labour costs = $200/month To US East Coast

Interconnecting all the businesses along the reopened Silk Road Sea transport Land transport Key: to US West Coast To East Coast Saturated Saturated To US East Coast To Mid East To EU To CIS

2005 Launch of Historic Beijing-Brussels Caravan Beijing Brussels

Page Black Sea Ring Highway Truck Caravan The Caravan was initiated and promoted with the aim of promoting the future BSEC Ring Highway and identifying the physical road conditions and the non- physical barriers to road transport.

ECO-IRU Truck Caravan: driving progress, prosperity and peace! Page 13

IRU NELTI Project: interconnecting every business to every major world market

  NELTI confirms road infrastructure is NOT the problem  12 road transport companies companies from 8 countries; from 8 countries;  More than 117 round trips 117 round trips via territories of 24 via territories of 24 countries countries

4. Sum of unjustified levies paid USD NELTI: Problems are Procedural! 1. Time spent en route by all vehicles5 041 days 2. Distance covered km 4. Sum of unjustified levies paid USD 3. Amount of official levies paid USD 5. Number of stops en route Number of state border crossings Length of downtime en route1 880 days 8. Cargo carried4 200 tonnes 1. Time spent en route by all vehicles5 041 days 7. Length of downtime en route1 880 days 3. Amount of official levies paid USD 40% of time lost at border crossings! Bakshish at the border accounts for 30% of additional costs!

Page 17 Source: Hague Consulting Group, 1998 * Includes lost opportunities Any penalty on road transport is an even greater penalty on the economy as a whole!

Join UN Global tools to permit road transport to interconnect businesses

Border Waiting Times due to inappropriate procedures penalise BSEC countries’ trade!

Implementation of Annex 8 of 1982 UN Convention is needed to prevent waiting times!   New Annex 8 on facilitating border crossing by trucks entered into force on 20 May 2008   Still not implemented!   Need to work together to ensure implementation in every BSEC country, as well as EU!

Road Freight Transport: Interconnecting every business and every transport mode between Europe and Asia – Focus on the Caucasus