Intermodality leads to Sustainability Workshop for the Working Party on Intermodal Transport & Logistics (WP.24) Geneva, 30 November 2015 Jens Hügel, Head – Sustainable Development

2 This is the IRU

3 Founding Members in 1948 v 14 Founding IRU Members in 8 countries

4 Today: present in over 100 countries v 14 Founding IRU Members in 8 countries v IRU Members v IRU Regional Committee for Africa including FESARTA Members

5 Turning Challenges into Opportunties  Sustainable Development Innovation Incentives Infrastructure  Facilitation Trade Tourism Road Transport These are also the priorities of the IRU Academy

6 Sustainable Development IRU Charter for Sustainable Development (1996) IRU Initiative “Driving Towards Sustainable Development” (1997) IRU Guide to Sustainable Development (2000) IRU “Best Industry Practices Reports” (2002/4) Industry as a Partner for Sustainable Development UNEP (2002/6) IRU “30-by-30” Resolution (2009) IRU is a stakeholder to UN Global Compact (2010) GPST (2013)

7 IRU’s 3 " i " strategy to achieve 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.

8 Social sustainability – social acceptability Source: IRU Intermodal transport has become a vital production tool! The combined efforts of 29 companies in 18 countries What does it take to have a cup of coffee in a café? IRU is in favour of intermodal transport

9 IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units CTU Code addresses poor practices in packing of cargo units (developed with ITF and governments)

10 Modular Concept – addressing driver shortage BETTER TRANSPORT rather than MORE TRANSPORT

11 Polluter Pays Principle (PPP) – Social Costs PPP excludes efficiency because it has automatically decided who and how to deal with external costs. Sound cost-benefit analysis is excluded. 11 But PPP says it’s always this way! But there may be a smarter route to take!

12 Polluter Pays Principle (PPP) – The wrong approach A tax collection scheme: polluter pays – problem stays Do parking fines create new parking spaces?

13 Cheapest Cost Avoider Principle (CCAP) A modern, scientific approach In economic circles, the Cheapest Cost Avoider Principle, which won Ronald Coase a Nobel Prize in 1991, has superseded the PPP THE CCAP IS A NOBEL PRIZE WINNING SOLUTION

14 The underlying principle of the CCAP is that a cost benefit analysis is conducted and the stakeholder who can prevent external costs at the lowest cost for the overall economy should take action. CCAP solves the problem! Cheapest Cost Avoider Principle (CCAP) A modern, scientific approach

15 NELTI / intermodal transport operations Drivers are "taken hostage" From September 2008 Monitoring over 200,000 border crossings 57% of transport time lost at border crossings 38% of transport costs due to unofficial levies

16 Implementation of key UN facilitation instruments