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© International Road Transport Union (IRU) 2009 1 IRU-AULT-LAS SEMINAR ON ARAB AND INTERNATIONAL ROAD TRANSPORT AGREEMENTS AND THEIR ROLE IN DEVELOPING ARAB FOREIGN TRADE THE WAY FORWARD... IRU-AULT-LAS SEMINAR ON ARAB AND INTERNATIONAL ROAD TRANSPORT AGREEMENTS AND THEIR ROLE IN DEVELOPING ARAB FOREIGN TRADE THE WAY FORWARD... Cairo – 26 October 2009 Haydar Özkan IRU General Delegate to the Middle East and Region
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© International Road Transport Union (IRU) 2009 2 From Camels to Trucks Pictures: Volvo website, 2008 Freedom of Trade and Transport Growth, Regulation and Facilitation Modernity, JIT, Globalisation and Neo-protectionism No visas, No quotas, Etc. Trucks, Reconstruction of Europe, UNECE Conventions. Visas, Quotas, Competition.
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© International Road Transport Union (IRU) 2009 3 The LAS Region
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© International Road Transport Union (IRU) 2009 4 The LAS region is located at the crossroads of world trade flows and depends on efficient and professional services of road transport to seize better the opportunities of globalisation of trade!
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© International Road Transport Union (IRU) 2009 5 What is crossroads? The first world map? No extant copies, but described in books II and IV of Herodotus' [254] Anaximander of Miletus (c.610BC-546BC), Turkey. The first world map? No extant copies, but described in books II and IV of Herodotus' [254] Anaximander of Miletus (c.610BC-546BC), Turkey. Map of Anaximander
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© International Road Transport Union (IRU) 2009 6 What is crossroads? Interpretive redrawing of the St. Sever world map. (1030 AD) Interpretive redrawing of the St. Sever world map. (1030 AD) St. Sever World Map
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© International Road Transport Union (IRU) 2009 7 Where is the Center?
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© International Road Transport Union (IRU) 2009 8 Where is the Center?
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© International Road Transport Union (IRU) 2009 9 Where is the Center?
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© International Road Transport Union (IRU) 2009 10 Each day of delay = reduces trade by at least 1% Each day of delay = 85 km of distancing from trade partners Poor trade facilitation affects the composition of trade prevents countries to export time-sensitive goods prevents countries to export time-sensitive goods a day’s delay reduces a country’s relative exports of time-sensitive goods on average by 7 % a day’s delay reduces a country’s relative exports of time-sensitive goods on average by 7 % Each day of delay = reduces trade by at least 1% Each day of delay = 85 km of distancing from trade partners Poor trade facilitation affects the composition of trade prevents countries to export time-sensitive goods prevents countries to export time-sensitive goods a day’s delay reduces a country’s relative exports of time-sensitive goods on average by 7 % a day’s delay reduces a country’s relative exports of time-sensitive goods on average by 7 % Barriers to Road Transport Impede Development Source: Economic and Policy Research Institute, TEPAV, 2007
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© International Road Transport Union (IRU) 2009 11 Physical distance to major markets: Higher transport costs Higher transport costs Longer travel times Longer travel times Predictability: key factor in transport Changes in production processes Changes in production processes Just-in-time production Just-in-time production - Reduced stocks: cost saving Border waiting times UN legal instruments and multilateral agreements UN legal instruments and multilateral agreements Trade barriers encourage red tape and illegal trade Physical distance to major markets: Higher transport costs Higher transport costs Longer travel times Longer travel times Predictability: key factor in transport Changes in production processes Changes in production processes Just-in-time production Just-in-time production - Reduced stocks: cost saving Border waiting times UN legal instruments and multilateral agreements UN legal instruments and multilateral agreements Trade barriers encourage red tape and illegal trade Transport and Development
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© International Road Transport Union (IRU) 2009 12 Source: WTО, 2007 23,1% 26,3 % 50,6% USA and EU share in Chinese exports, % Volume of Chinese exports of goods in 1994-2007, USD, bln. Source: WTО, 2008 Globalisation of Trade and China Volume of FDI in China in 2000-2006 Source: WTО, 2007
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© International Road Transport Union (IRU) 2009 13 Evolution of sea containers in ports
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© International Road Transport Union (IRU) 2009 14 Supply Chain SuppliersManufacturersWholesalersRetailersConsumers Transport
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© International Road Transport Union (IRU) 2009 15 CountryLPI Singapore1 Netherlands2 Hong Kong8 UAE2020 China30 Turkey34 Bahrain36 India39 Saudi Arabia41 Kuwait44 Qatar46 Oman48 Jordan52 Tunisia60 Source: http://info.worldbank.org/etools/tradesurvey/mode1b.asp CountryLPI Brazil61 Sudan64 Mauritania67 Iran78 Comoros85 Morocco94 Egypt97 Lebanon98 Russian Federation99 Yemen112 Somalia127 Syria135 Algeria140 Djibouti145 World Bank LPI 2007
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© International Road Transport Union (IRU) 2009 16 The way forward...
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© International Road Transport Union (IRU) 2009 17 The LAS Member States need to re-organise the road transport market in a coordinated manner with a view to ensuring more dynamic, competitive and professional transport services for the LAS economies and playing a more active role as a transit region for vertical and horizontal flows of world trade across their pivotal territories. Recommendation 1
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© International Road Transport Union (IRU) 2009 18 Professional competence confirmed by a Certificate for Professional Competence (CPC) – for the transport managers and for the drivers. Good repute. Financial standing. Key to a strong Arab road transoprt industry: Regulate the access to the road transport market like in the EU!
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© International Road Transport Union (IRU) 2009 19 Worldwide Excellence in Road Transport Training
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© International Road Transport Union (IRU) 2009 20 International Recognition 2008 – 2009 IRU ACADEMY ADVISORY COMMITTEE (ADC) IRU ACADEMY INITIATIVES ALSO SUPPORTED BY: UNECE United Nations Economic Commission for Europe
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© International Road Transport Union (IRU) 2009 21 The LAS Member States need to reinforce and expand implementation of the key UN transport conventions in order to be better integrated with the European and Asian road transport markets. Recommendation 2
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© International Road Transport Union (IRU) 2009 22 The intergovernmental LAS policies need to be complemented by implementing at national level the UN CONVENTIONS:
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© International Road Transport Union (IRU) 2009 23 Status of 56 UN Conventions in the LAS Region as of 17 Sep 2009 0 0 0 0 1 9 15 16 0 5 0 0 5 3 9 7 6 1 4 2 0 Map Source: wikimedia.com / Map of League of Arab States countries
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© International Road Transport Union (IRU) 2009 24 Contracting Parties in the Region as of 16 March 2009 20 6 1 9 3 31 18 14 12 9 4 9 18 12 6 10 4 3 2 2 7 5 5 5 37 1 7
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© International Road Transport Union (IRU) 2009 25 Key UN Conventions Convention on the Contract for the International Carriage of Good by Road (CMR), of 1956 Convention on the Harmonization of Frontier Controls of Goods, 1982 Convention on Road Traffic, 1968 TIR Convention, of 1975 Convention on Road Signs and Signals, of 1968 Customs Convention on Temporary Import of Commercial Road Vehicles, 1956 Customs Convention on Containers, of 1972 Road Traffic, 1949 Convention on the Contract for the International Carriage of Good by Road (CMR), of 1956 Convention on the Harmonization of Frontier Controls of Goods, 1982 Convention on Road Traffic, 1968 TIR Convention, of 1975 Convention on Road Signs and Signals, of 1968 Customs Convention on Temporary Import of Commercial Road Vehicles, 1956 Customs Convention on Containers, of 1972 Road Traffic, 1949 UNESCAP Resolution 48/11, 1992
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© International Road Transport Union (IRU) 2009 26 Key UN Conventions European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR) (1957) Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be Used for such Carriage (ATP) (1970) Note: These two Agreements are not included in the UNESCAP Commission Resolution 48/11 of 1992. However, their implementation would benefit to the road transport industry in the LAS region, significantly. European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR) (1957) Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be Used for such Carriage (ATP) (1970) Note: These two Agreements are not included in the UNESCAP Commission Resolution 48/11 of 1992. However, their implementation would benefit to the road transport industry in the LAS region, significantly.
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© International Road Transport Union (IRU) 2009 27 The main LAS or ESCWA road transport corridors can be integrated with the NELTI project in order to identify actual non-physical and physical bottlenecks and prioritise common action in public-private partnership. Recommendation 3
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© International Road Transport Union (IRU) 2009 28 IRU’s vision – the Middle East can be again the world’s crossroad for trade
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© International Road Transport Union (IRU) 2009 29 IRU NELTI Project… changed the mindsets in Asia! It can work in the Middle East, too!
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© International Road Transport Union (IRU) 2009 30 LAS region for the International Transit Trade Flows An important bridge for the road transport to interlink developing East markets via major gulf ports with the European Markets.
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© International Road Transport Union (IRU) 2009 31 NELTI routes can be expanded to the LAS region! WE CAN DO IT... 1. By collecting data about the actual commercial deliveries across the LAS region; 2. By implementing an Arab-TIR initiative in partnership with the IRU and the AULT under the LAS and with the support of the IDB Group. WE CAN DO IT... 1. By collecting data about the actual commercial deliveries across the LAS region; 2. By implementing an Arab-TIR initiative in partnership with the IRU and the AULT under the LAS and with the support of the IDB Group.
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© International Road Transport Union (IRU) 2009 32 The way forward... In true public-private partnership... Reinforce and expand the UN Conventions as global instrumentsReinforce and expand the UN Conventions as global instruments - UNESCAP Commission Resolution 48/11, 1992 - In particular the TIR Convention, CMR and Harmonisation Convention... - But also the ADR and ATP Conventions Develop professional training at international standardsDevelop professional training at international standards - A condition to have access to profession! - Transport managers, drivers including dangerous goods carriage - IRU Academy international standards – implement and promote! Join the NELTI for collecting real data and addressing right problemsJoin the NELTI for collecting real data and addressing right problems What is next?What is next? - IRU is ready to work together with the LAS and all pan-Arab organisations! - The Council of Arab Ministers of Transport should make the policy decision... - We all count on the UN Regional Commissions... - The Islamic Development Bank Group should be a close partner, too!
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© International Road Transport Union (IRU) 2009 33
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© International Road Transport Union (IRU) 2009 34
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