1. European Commission High Level Meeting
on the Impact of the Economic Crisis
on the Road Transport Sector
Brussels, 20 April 2009
Pere Padrosa
IRU Vice-President
© International Road Transport Union (IRU) 2009

2. Evolution of IRU Membership
Members 74 Countries
Created 1948
8 Founder States:
Belgium
Denmark
France
Netherlands
Norway
Sweden UK
Switzerland
© International Road Transport Union (IRU) 2009

3. The Facts about EU Road Transport
Road transport carries more than 90% of goods in terms of value.
85% of freight tonnage is carried over distances below 150km, for which there is no viable alternative.
Over 4.5 million EU
citizens are directly
employed in road
transport
© International Road Transport Union (IRU) 2009

4. Facts about EU Road Transport
In today’s globalised economy professional road transport is a vital production tool, interconnecting every business to all world markets.
The European road transport industry contributes 340 billion Euros to the European economy, yet is penalised!
© International Road Transport Union (IRU) 2009

5. Governments aid banks, yet road transport more vital to trade!
© International Road Transport Union (IRU) 2009

6. History is repeating itself
Unemployment queue 1929
Unemployment queue 2009
© International Road Transport Union (IRU) 2009

7. Impact of the Financial & Economic Crisis on EU Road Transport
Demand for goods and passenger road transport services has declined dramatically
2008’s third quarter figures, showed a decrease of road freight transport activity by 50%.
The (global) forecast for 2009 indicates a stagnation of road freight volumes at around 3.25 billion tonnes per quarter.
In the second part of 2008, the coach sector was hit by a 1% fall in world tourist numbers.
A further 2% fall is expected in 2009, worsening prospects for the sector.
© International Road Transport Union (IRU) 2009

8. Impact of the Financial & Economic Crisis on EU Road Transport
Falling rates, a squeeze on credit and escalating costs
Rates are down by up to 40% in the first quarter of 2009.
Financial institutions are closing credit lines to road transport companies.
Compared to 2008 costs are expected to rise by 3-4% in 2009, largely driven by new road user charges.
Unstable oil prices could exacerbate the situation.
© International Road Transport Union (IRU) 2009

9. Impact of the Financial & Economic Crisis on EU Road Transport
Jobs and businesses in road transport facing the axe
New vehicle registrations down by 39% in February.
Bankruptcies in the sector have doubled.
Globally there has been an average 5% decrease in employment.
140,000 jobs already lost in EU road freight transport.
© International Road Transport Union (IRU) 2009

10. ‘6 R’s Recovery Strategy’
The EU and Member States must act to avert a deepening of the crisis (1)
‘6 R’s Recovery Strategy’
REDUCE COSTS: Stop creating new taxes and environmental charges such as the proposed third Eurovignette. Reduce current fuel duties.
RESTORE CREDIT: Encourage financial institutions to reopen credit lines to road transport companies and allow moratoriums on debt.
REVISE INSOLVENCY RULES: Adopt new insolvency rules to allow a reduction of capacity instead of company liquidation.
© International Road Transport Union (IRU) 2009

11. ‘6 R’s Recovery Strategy’
The EU and Member States must act to avert a deepening of the crisis (2)
‘6 R’s Recovery Strategy’
REJECT NEO-PROTECTIONISM: Keep markets open. Uphold the free movement of goods and free provision of services within the EU’s internal market.
RETAIN WORKERS: All EU governments should adopt ‘economic unemployment’ schemes that allow skilled labour to be placed on ‘inactive’ status rather than lose their jobs.
REINVEST IN ROAD: Reduce unnecessary costs by removing bottlenecks from road infrastructure and incentivise companies to invest in new, safe and clean vehicle technologies.
© International Road Transport Union (IRU) 2009

12. Road Transport Operators can act too
Transport only if a profit can be made
Pass on all costs
Avoid empty trips
Stabilise market prices by reducing transport capacities
Place skilled personnel on inactive status
© International Road Transport Union (IRU) 2009

13. Any penalty on road transport will be a penalty on economic recovery
Conclusions
The sector faces unprecedented economic challenges which it is struggling to overcome.
The sector must be central to the global recovery plan - not an afterthought.
Any penalty on road transport will be a penalty on economic recovery
Every facilitation of road transport will stimulate a faster economic recovery
© International Road Transport Union (IRU) 2009

14. © International Road Transport Union (IRU) 2009