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The Role of Road Transport Serving Mobility, Economic and Social Growth and Development Moldovan Transport Academy Chisinau, 21 September 2010 Moldovan.

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Presentation on theme: "The Role of Road Transport Serving Mobility, Economic and Social Growth and Development Moldovan Transport Academy Chisinau, 21 September 2010 Moldovan."— Presentation transcript:

1 The Role of Road Transport Serving Mobility, Economic and Social Growth and Development Moldovan Transport Academy Chisinau, 21 September 2010 Moldovan Transport Academy Chisinau, 21 September 2010 Martin MARMY Secretary General

2 Page 2 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

3 Page 3 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

4 Page 4 © International Road Transport Union (IRU) 2010 Evolution of IRU Membership Created 1948 National Associations from 8 founding countries Belgium Denmark France Netherlands Norway Sweden UK Switzerland 2010 180 Members 74 Countries

5 Page 5 © International Road Transport Union (IRU) 2010 Evolution of IRU Structure 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

6 Page 6 © International Road Transport Union (IRU) 2010 The democratic structure of the IRU

7 Page 7 © International Road Transport Union (IRU) 2010 IRU International Commissions and Working Parties Social AffairsSocial Affairs Economic AffairsEconomic Affairs Customs AffairsCustoms Affairs Legal AffairsLegal Affairs Technical AffairsTechnical Affairs Road SafetyRoad Safety Services to Transport OperatorsServices to Transport Operators Commissions Working Parties Dangerous GoodsDangerous Goods Combined TransportCombined Transport Taxis and hire cars with driverTaxis and hire cars with driver

8 Page 8 © International Road Transport Union (IRU) 2010 IRU Priority Issues  Sustainable Development InnovationInnovation IncentivesIncentives InfrastructureInfrastructure  Facilitation TradeTrade TourismTourism Road TransportRoad Transport These are also the priorities of the IRU Academy

9 Page 9 © International Road Transport Union (IRU) 2010 TIR System The most effective UN facilitation instrument

10 Page 10 © International Road Transport Union (IRU) 2010 International recognition of your vocational training

11 Page 11 © International Road Transport Union (IRU) 2010 CPC MANAGER PROGRAMME IRU ACADEMY ONLINE INTERNET APPLICATION “IRU ACADEMY ONLINE“ INTERNET APPLICATION TACHOGRAPH PROGRAMME & DRIVING & REST TIME RULES CPC DRIVER PROGRAMME TRIPARTITE HIV/AIDS PROJECT DANGEROUS GOODS (ADR) PROGRAMME Vocational training provided by the IRU Academy

12 Page 12 © International Road Transport Union (IRU) 2010 WCO and IRU work together to provide facilitation learning package

13 Page 13 © International Road Transport Union (IRU) 2010 The IRU structure should always be adapted to the changing world Change is life. The world is changing. To be successful the IRU is obliged to adapt its structure and working methods to the changing world.

14 Page 14 © International Road Transport Union (IRU) 2010 The IRU: Spokesman of the road transport industry (1)   1947-1953: First transport coordination under the auspices of the UNECE and ECMT   1956-1959: CMR, ADR and TIR Conventions   1957: Rome Treaty – Free movement of people and goods   Until 1973 (oil crisis): prosperous era in Europe   As of 1978: Start of US leadership in economic deregulation   1985: EU Council’s shortcomings in creating a Common Transport Policy   1985: Decision to create an EU Common Market as of 1993   1957-1992: No technical, social or fiscal harmonisation

15 Page 15 © International Road Transport Union (IRU) 2010 European Union (EU) Member States

16 Page 16 © International Road Transport Union (IRU) 2010 Commonwealth of Independent States (CIS)

17 Page 17 © International Road Transport Union (IRU) 2010 The IRU : Spokesman of the road transport industry (2)   Until 1973 (oil crisis): prosperous era in Europe   As of 1978: Start of US leadership in economic deregulation   1985: EU Council’s shortcomings in creating a Common Transport Policy   1985: Decision to create an EU Common Market as of 1993   1957-1992: No technical, social or fiscal harmonisation

18 Page 18 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

19 Page 19 © International Road Transport Union (IRU) 2010 Creation of the Common Market and the Impact on Road Transport   1 January 1993, on EU territory: Suppression of border controls Liberalisation of road transport by replacing quantitative restrictions and price control by quality criteria   Fall of Berlin Wall  2004: Interpretation of “liberalisation of road transport” by the PECO countries as “freedom – no rules” Transformation of State-owned companies into numerous flourishing private road transport companies

20 Page 20 © International Road Transport Union (IRU) 2010 Black Sea Ring Highway Truck Caravan, April 2007 The Caravan was initiated with the aim of promoting the future BSEC Ring Highway and identifying the physical road conditions and the non-physical barriers to road transport.

21 Page 21 © International Road Transport Union (IRU) 2010 Shanghai Cooperation Organisation (SCO)

22 Page 22 © International Road Transport Union (IRU) 2010 EurAsEC

23 Page 23 © International Road Transport Union (IRU) 2010 Economic Cooperation Organisation (ECO)

24 Page 24 © International Road Transport Union (IRU) 2010 Eastern Partnership

25 Page 25 © International Road Transport Union (IRU) 2010 Country membership of the Regional Organisations

26 Page 26 © International Road Transport Union (IRU) 2010 New IRU structure – to better serve Regional Organisations

27 Page 27 © International Road Transport Union (IRU) 2010 Analysis of freight forwarders’ activities – EU vs USA   Since the liberalisation of road transport in Europe and deregulation in the USA, road transport companies have developed as follows: In the USA, 10% of the road transport market is in the hands of 10 mega road transport companies In Europe, big road transport companies   are becoming smaller and smaller, or   are growing because they are fully or partially state-owned entities   This is the result of the different rules applied to freight forwarders

28 Page 28 © International Road Transport Union (IRU) 2010 Mistakes made in the liberalisation of road transport in Europe   Liberalisation of road transport without prior effective harmonisation of rules   Same rules (EU acquis) should not be applied when the starting conditions are radically different   The non-regulation of EU freight-forwarders creates major distortion of competition. No level- playing field between the EU and the USA

29 Page 29 © International Road Transport Union (IRU) 2010 Analysis of the low return on investment in road transport Low return on investment is the result of: The big bang liberalisation of road transport in 1993 and for the PECO in 2004 and 2007; The lack of effective harmonisation prior to liberalisation; The ineffective quality criteria to regulate access to the profession and to the market; The distortion of competition resulting from the lack of appropriate regulation of freight-forwarding.

30 Page 30 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

31 Page 31 © International Road Transport Union (IRU) 2010 OPEC Countries’ oil price Source: EIA 2010 May 2003 July 2008 April 2010

32 In road transport, oil is Black Gold ! © International Road Transport Union (IRU) 2010 Page 32

33 Page 33 © International Road Transport Union (IRU) 2010 Petrol / gasoline11 Diesel Fuel11 Propane (C 33 )81.9 Butane (C 4 H 10 )81.4 Hydrogen (H 2 ) - Gas at 200 BAR2522 Hydrogen (H 2 ) - Liquid at -253°C45.8 Metal Hydride - Magnesium53.2 Metal Hydride - Vanadium101.7 Metal Hydride - Iron-Titanium203.2 Methanol (CH 3 OH)2.22.1 Ethanol (C 2 H 5 OH)1.621.53 Lead Battery7012 Weight & volume of fuel tank for same amount of energy Weight coefficient Volume coefficient Road transport has no economically viable alternative to oil!

34 Page 34 © International Road Transport Union (IRU) 2010 Evolution of Commercial Vehicle Toxic Emissions - 88% - 95% - 97% - 98% Source: EU Commission 2008 © International Road Transport Union (IRU) 2010 Page 34

35 Page 35 © International Road Transport Union (IRU) 2010 Source: UNFCCC 2008 Global fossil fuel use and CO 2 production 3% 27% 33% 30% 17% 20% Power generation Heating Other (waste disposal agriculture, etc) Private Car, Airline, Ship, Rail Goods transport by road

36 Page 36 © International Road Transport Union (IRU) 2010 Road transport is 100% dependent on oil! Need to diversify the energy market

37 Page 37 © International Road Transport Union (IRU) 2010 Price of diesel fuel vs OPEC price Source: IRU 2010 IRU in May 2003 = +$118 / brl in July 2008 = +$260 / brl in April 2010 = +$181 / brl Results

38 Page 38 © International Road Transport Union (IRU) 2010 Price of diesel fuel vs OPEC price Source: IRU 2010 IRU in May 2003 = +$113 / brl in July 2008 = +$230 / brl in April 2010 = +$169 / brl Results

39 Page 39 © International Road Transport Union (IRU) 2010 Price of diesel fuel vs OPEC price Source: IRU 2010 IRU in May 2003 = +$174 / brl in July 2008 = +$255 / brl in April 2010 = +$212 / brl Results

40 Who gets what from one litre of diesel fuel in the G8 countries? (June 2008) Source: national Governments, OPEC 2008 28% 30% 38% 51% 49% 52% 56% US$/litre Based on the UK fuel price at the pump, a barrel of oil would cost almost $400 Page 40 © International Road Transport Union (IRU) 2010

41 Oil price and fuel price are decoupled Same oil price ($50/brl) but 12% higher fuel price Source: Finanz.net 2008, National Members IRU © International Road Transport Union (IRU) 2010 Page 41

42 Source: national associations, TCS No level playing field between transport modes! Airline fuel: no tax! Maritime bunker fuel: no tax! Railway energy: no tax! Road Transport fuel tax: more than 3 times the OPEC price Page 42 © International Road Transport Union (IRU) 2010

43 Page 43 © International Road Transport Union (IRU) 2010 Any penalty on road transport is an even greater penalty on trade Source: Hague Consulting Group, 1998 * includes lost opportunities

44 Page 44 © International Road Transport Union (IRU) 2010 IRU Resolution on Fuel Price Strategy for Governments Introduce a professional fuel with the same tax as the other modes, applicable to all commercial transport industries. Calls on Governments to:

45 Page 45 © International Road Transport Union (IRU) 2010 Impact of the Economic Crisis on Road Transport

46 Page 46 © International Road Transport Union (IRU) 2010 Dow Jones indices

47 Page 47 © International Road Transport Union (IRU) 2010 Eurostox indices

48 Page 48 © International Road Transport Union (IRU) 2010 DAX indices

49 Why China grows: the Asian Model Source: UBS Investment Bank Real GDP growth, 5Y average 0 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! Page 49 © International Road Transport Union (IRU) 2010

50 Page 50 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

51 Page 51 © International Road Transport Union (IRU) 2010 Source: UN 2009 Key driver of economic development – world population

52 Page 52 © International Road Transport Union (IRU) 2010 Source: ProgTrans 2009 Transport development lags behind in Europe!

53 Page 53 © International Road Transport Union (IRU) 2010 Source: ProgTrans 2009 Transport development is forging ahead in China! Transport development is forging ahead in China!

54 Page 54 © International Road Transport Union (IRU) 2010 IRU Resolution – to reduce the impact of the economic crisis Facilitate trade and road transport Reject neo-protectionism Reduce taxation Restore credit Revise insolvency rules Invest more in road infrastructure Calls on Governments to

55 Page 55 © International Road Transport Union (IRU) 2010 G20 leaders call for facilitation of trade and road transport!

56 Page 56 © International Road Transport Union (IRU) 2010 IRU Resolution on the economic crisis – fully supported by the WEF

57 Page 57 © International Road Transport Union (IRU) 2010 Global Future Trends EU vs BRIC countries IRU Source: IRU 2010 IRU EU Indices Brazil Indices road freight GDP truck registrations

58 Page 58 © International Road Transport Union (IRU) 2010 Global Economic Trends EU vs BRIC countries © International Road Transport Union (IRU) 2010 Source: IRU 2010 EU Indices Russian Indices IRU China IRU EU IRU India IRU Russia road freight GDP truck registrations road freight GDP truck registrations

59 Page 59 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

60 Page 60 © International Road Transport Union (IRU) 2010 If the Silk Road worked for Marco Polo, then why shouldn’t it work for trade and road transport today? Itineraries of the Ancient Silk Road up to 700 years ago

61 Launch of historic Beijing-Brussels Caravan Beijing Brussels Page 61 © International Road Transport Union (IRU) 2010

62 Page 62 © International Road Transport Union (IRU) 2010 Comparison of economic return from different types of infrastructure Source: The World Bank World Bank supported infrastructure projects

63 Page 63 © International Road Transport Union (IRU) 2010 Comparison of land used for roads as % of country’s total surface Average 0.5 Source: CE based on Eurostat and IRF

64 Page 64 © International Road Transport Union (IRU) 2010 Globalisation and the Logistics Chain The combined efforts of 29 companies in 18 countries Source: IRU What does it take to have a cup of coffee in a café? Road transport has become a vital production tool!

65 Page 65 © International Road Transport Union (IRU) 2010 Road transport is the only mode to provide door-to-door service

66 Page 66 © International Road Transport Union (IRU) 2010 Evolution of sea containers in ports

67 Page 67 © International Road Transport Union (IRU) 2010 Euro-Asia road transport feasibility study

68 Page 68 © International Road Transport Union (IRU) 2010 IRU New Eurasian Land Transport Initiative - NELTI NELTI ResultsNELTI Results 41 % unjustified levy paid41 % unjustified levy paid 39 % of waiting time at borders39 % of waiting time at borders

69 Page 69 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

70 Page 70 © International Road Transport Union (IRU) 2010 An IRU-ITF Survey 2008 Securing trade entails protection from organised crime – Secure Parking needed!  1 in 6 drivers attacked in the past five years (30% more than once) 17% 5-year attack rate

71 Page 71 © International Road Transport Union (IRU) 2010 TRANSPark Search www.iru.org Radius search Site Close-up Route Planning

72 Page 72 © International Road Transport Union (IRU) 2010 WCO SAFE Framework  

73 Page 73 © International Road Transport Union (IRU) 2010 Today’s Topics I.Evolution of the IRU II. Creation of an EU Common Market and Liberalisation of Transport III. Oil, Financial and Economic Crises IV.Economic and Transport Challenges V.Globalisation of Trade and its Effects on the Logistics Chain VI.Road Transport Security VII.Conclusion

74 Page 74 © International Road Transport Union (IRU) 2010 Requirements for a better future for road transport Governments must:   Recognise road transport’s crucial role in economic and social development ;   Implement efficient cooperation between the public and private sectors at national, regional and global level to allow for innovation in legislation, taxation, energy, standardisation, technology and training; in order to stimulate entrepreneurship and enable road transport to expedite economic recovery.

75 Page 75 © International Road Transport Union (IRU) 2010


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