The Role of Road Transport in Servicing International Trade MADI University Moscow, 15 March 2010 MADI University Moscow, 15 March 2010 Martin MARMY, Secretary.

The Role of Road Transport in Servicing International Trade MADI University Moscow, 15 March 2010 MADI University Moscow, 15 March 2010 Martin MARMY, Secretary General

© International Road Transport Union (IRU) 2010 Future of Road Transport Identify major trends and challenges World trends seek global solutions with more quality and more liberalisation Increasing cooperation through appropriate organisation at national, regional and international level to improve - - the interconnection of landlocked countries with the global market - - transport quality through professionalism and vocational training - - environmental performance (emissions) - - energy saving to meet the increasing scarcity of fossil fuels (dearer- dirtier) - - the efficiency of subsidised transport modes due to the reduction in public funds

© International Road Transport Union (IRU) 2010 Instruments available to meet the new trends and challenges of road transport   Increased cooperation between the public and private sectors at national, regional and international level through existing organisations   Development of the complementarity of the various transport modes  harmonisation of regulations and standards and deployment of Intelligent Transport Systems   Market opening including public transport  improve efficiency through competition   Improve vocational training and education  improve professionalism and quality and sustainable development

© International Road Transport Union (IRU) 2010 Today’s Topics I. I.This is the IRU - Structure and Priorities II. II.Road transport regulation and UN Conventions III. Contribution of road transport to the logistics chain, economic development and the environment

© 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

© 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

© 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

© 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

© International Road Transport Union (IRU) 2010 Geographical scope of the TIR Convention 68 57 1 3 6 Contracting Party in Admission Process TIR Operational Countries In Negotiation Process InterestedParties Contracting Parties Parties

© 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

© 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.

© International Road Transport Union (IRU) 2010 Frontiers and Customs Union  Customs Union: Safeguards frontiersSafeguards frontiers Abolishes internal border controlsAbolishes internal border controls By virtue of its Article 2, TIR can apply on the territory of any Customs Union, because TIR applies as soon as the TIR transport crosses a border

© International Road Transport Union (IRU) 2010 Objective of the UNECE Mission Statement: In its 56 member countries, including Georgia and Russia, the UNECE manages 57 multilateral instruments such as International Conventions and Agreements related to: I. UNECE RegulationsII. UNECE Conventions - Road Safety - Facilitation of transport - Energy saving and trade - - Environmental protection

© International Road Transport Union (IRU) 2010 I. UNECE Regulations 1. Vehicle technology 2. Infrastructure 3. Human factor To improve - - Road Safety - - Energy saving - - Environmental protection Road transport is the most regulated mode of transport! Therefore road transport needs to be facilitated by the effective implementation of the UN multilateral facilitation instruments

© International Road Transport Union (IRU) 2010 I. UNECE Regulations 1. Vehicle technology The World Forum for Harmonization of Vehicle Regulations is a UNECE working party (WP29). Its role is to develop new regulations and update current UNECE Regulations.   The WP29 is composed of six working parties   The WP29 deals with 140 different UNECE Regulations Chairman: Mr B. Gauvin (France) Vice-Chairman: Mr B. Kisulenko (Russian Federation)

© International Road Transport Union (IRU) 2010 Examples of UNECE WP29 Regulations 1.Working Party on Brakes and Running Gear (GRRF) REGULATION No. 13 (Braking efficiency) 2.Working Party on Passive Safety (GRSP) REGULATION No. 16 (Safety-belts) 3.Working Party on Pollution and Energy (GRPE) REGULATION No. 49 (HGV emissions) 4.Working Party on Lighting and Light-Signalling (GRE) REGULATION No. 104 (Retro-reflective contour marking)

© International Road Transport Union (IRU) 2010 I. UNECE Regulations 2. Infrastructure   European Agreement on Main International Traffic Arteries (AGR)   Trans-European North-South Motorway Project (TEM)   Vienna convention (signalisation)

© International Road Transport Union (IRU) 2010 I. UNECE Regulations 3. The human factor to improve road safety and the environment The human factor can be the   Head of a logistics in a company   Head of the company transporting goods – just in time and over short and long distances   A driver of the commercial vehicles which is not only the captain on the road but also the road industry According to international statistics, more than 85% of all road accidents are linked to the human factor!

© International Road Transport Union (IRU) 2010 Evolution of Road Safety Performance (EU27) Source: EU Energy & Transport in Figures, 2009 Road fatalities (all road vehicles) 2000 = 100 This has been achieved through: 1.Major improvements of the human factor 2.Major improvements of the used infrastructure 3.Major improvements of the vehicle technology

© International Road Transport Union (IRU) 2010 Results from the European Truck Accident Causation Study The analysis of 624 accidents in seven countries shows that the main cause of an accident is linked to human error. However, of the 85.2% only 25% is linked to human error by the truck driver However, of the 85.2% only 25% is linked to human error by the truck driver Sources: EU, IRU

© International Road Transport Union (IRU) 2010 II. UNECE Conventions The role of road transport is so vital that: of 57 international transport conventions, 33 are UN Conventions aimed at facilitating road transport and trade Road Transport benefits from facilitation instruments

© International Road Transport Union (IRU) 2010 Examples of main UN facilitation instruments for road transport   Road Traffic (established: 1968; contracting parties: 66)   CMR Convention (established: 1956; contracting parties 51)   TIR convention (established: 1975; contracting parties: 67)   Temp. import. commercial vehicles (established: 1956; contracting parties: 41)   Customs Container Convention (established: 1972; contracting parties: 35)   Harmonization Frontier Controls of Goods (established: 1982; contracting parties: 49)

© 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

© International Road Transport Union (IRU) 2010 Inefficient transport/customs procedures discourage investment and make companies and national economies less competitive Inefficient logistics High transaction (trade) costs Increased inventories Poor Competitiveness Reduced FDI Lower transport volumes Road transport must be facilitated! Transport costs represent up to 15% of the export value

© International Road Transport Union (IRU) 2010 If road construction is always beneficial, it is always more expensive, complex and time consuming than to implement the UN facilitation instruments How to reduce the “economic distance” Scenario 1: construct new roads

© International Road Transport Union (IRU) 2010 The solution is to improve customs procedures at borders through better coordination and cross-border international cooperation This solution offers cheap, simple, immediate results Facts demonstrate that 75% of delays happen at borders Delays in international road transport do not result from lack of road infrastructure How to reduce the “economic distance” Scenario 2: focus on facilitation at borders

© International Road Transport Union (IRU) 2010 Implementation does not require large financial outlay, but mainly administrative/organisational measures For example The UNECE International Convention on the Harmonization of Frontier Controls of Goods and the TIR Convention Reduce number and duration of border controls Cheap Goal Investment in UN border facilitation is not only cheap, but sometimes costless

© International Road Transport Union (IRU) 2010 Summary of the advantages provided by the UN facilitation instruments Conclusion: For every country, it is far cheaper and more effective to ensure the strict implementation of the UN facilitation instruments than to invest in road infrastructure. This is why it is even more important, in this economic crisis, for every government to work together in a true public-private partnership with the trade representative and the IRU to ensure quicker economic recovery and further facilitate trade and road transport by effectively implementing the UN facilitation instruments.

© 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!

© International Road Transport Union (IRU) 2010 Globalisation and road transport   Globalisation does not mean transport over long distances   Globalisation means: Each individual is in competition with every other individual Cooperation is key to better seize the opportunity of the global market Road transport is the best tool to interconnect all the businesses in door to door service   Globalisation does not mean transport over long distances   Globalisation means: Each individual is in competition with every other individual Cooperation is key to better seize the opportunity of the global market Road transport is the best tool to interconnect all the businesses in door to door service

© International Road Transport Union (IRU) 2010 Phases of Globalisation 1500 – 1850 Globalisation was driven by the countries with major maritime fleets 1850 – 1990Globalisation was driven by multinational companies 1990 – today Globalisation is driven by individuals - due to internet purchase - due to globalisation of markets following the fall of the Berlin Wall 1500 – 1850 Globalisation was driven by the countries with major maritime fleets 1850 – 1990Globalisation was driven by multinational companies 1990 – today Globalisation is driven by individuals - due to internet purchase - due to globalisation of markets following the fall of the Berlin Wall Today, everyone is in competition with everyone else!

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!

© International Road Transport Union (IRU) 2010 Satellite Intercepts of the World’s Telecommunications in a 24-Hour Period Modern Activity Gap: The blank swath in the northern hemisphere is centred on Central Asia! Source: Centre for Strategic International Studies (CSIS), Washington, DC

© 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

© International Road Transport Union (IRU) 2010 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

© International Road Transport Union (IRU) 2010 Interconnecting all the businesses along the reopened Silk Road Sea transport Land transport Key: to US West Coast To East Coast Saturated Saturated To Mid East To EU To CIS

Launch of historic Beijing-Brussels Caravan Beijing Brussels

© 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.

© International Road Transport Union (IRU) 2010 IRU New Euro-Asian Land Transport Initiative - NELTI Launched in September 2008Launched in September 2008 Commercial transport deliveries performed by transport operators from 12 Euro-Asian countriesCommercial transport deliveries performed by transport operators from 12 Euro-Asian countries 5 routes5 routes In cooperation with the Asian Development BankIn cooperation with the Asian Development Bank

Road Transport and the environment

© International Road Transport Union (IRU) 2010 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) 2010 European Standard Vehicles vs. Modular Concept Two vehicles instead of three Less total fuel consumption Less emissions per tonkm Less total room on road Lower cost per tonne/km Less road damage Possible to decouple to shorter combinations Standard loading units Same volume of cargo EU regular combinations 13.6 m 7.82 m 13.6 m Modular Concept 13.6 m 7.82 m 13.6 m7.82 m

© International Road Transport Union (IRU) 2010 Smart Move Campaign www.busandcoach.travel   A joint industry initiative to double the use of buses and coaches worldwide by: providing up-to-date facts and figures on bus and coach transport raising political awareness of safe, green, efficient, affordable and user- friendly services offered by bus and coach; guarantee an optimal operating environment for buses and coaches; induce regulatory frameworks and incentives that encourage and facilitate a greater use of bus and coach transport by citizens;

© International Road Transport Union (IRU) 2010 IRU “30 by 30” Resolution The road transport sector has voluntarily committed, on the basis of innovative technologies and practices, to reduce CO2 emissions by 30% by 2030 based on transport performance in tkm and pkm and related to the base year 2007. - 30% CO 2 by 2030

Road Transport and Oil

In road transport, oil is Black Gold !

© International Road Transport Union (IRU) 2010 What is the “real” price in US$ / barrel of one litre of diesel? The current spot price in New York is $70 / barrel But! Fuel price at the pump The "real price" UK: £1.138 / litreUK: $285 / barrel US: $0.728 / litreUS: $116 / barrel RUS: $0.66 / litre (= 19.33 Rub) RUS: $105 / barrel

Source: National governments; OPEC 2006 We need an Energy Policy instead of a fiscal policy! 19% 25% 34% 48% 50% 44% 60% US$/litre

© International Road Transport Union (IRU) 2010 Road transport has no viable alternative to petrol and diesel fuel! Petrol / gasoline11 Diesel Fuel11 Propane (C 3 H 3 )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

The Role of Road Transport in Servicing International Trade MADI University Moscow, 15 March 2010 MADI University Moscow, 15 March 2010 Martin MARMY, Secretary.

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The Role of Road Transport in Servicing International Trade MADI University Moscow, 15 March 2010 MADI University Moscow, 15 March 2010 Martin MARMY, Secretary.

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Presentation on theme: "The Role of Road Transport in Servicing International Trade MADI University Moscow, 15 March 2010 MADI University Moscow, 15 March 2010 Martin MARMY, Secretary."— Presentation transcript:

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