1. EXPERT GROUP MEETING ON TRANSPORT AND TRADE FACILITATION IN ESCWA REGION Dubai, 10 April 2013 Haydar Özkan IRU General Delegate to the Middle East and Region

2. HOW TRADE LOGISTICS MATTER IN THE ARAB REGION Page 2

3. Global Pioneer in trade and road transport facilitation Page 3 (c) International Road Transport Union (IRU) 2012 Page 3

4. © International Road Transport Union (IRU) 2013 Page 4 This is the IRU

5. © International Road Transport Union (IRU) 2013 Page 5 Evolution of IRU Membership 1948: eight founder countries 2013: 170 Members in 74 countries …and 26 CRIPA Members in 22 countries

6. Page 6 IRU Secretariat General 1948 – IRU founded in Geneva 1973 – IRU Permanent Delegation to the European Union in Brussels 1998 – IRU Permanent Delegation to Eurasia in Moscow 2005 – IRU Permanent Delegation to the Middle East and Region in Istanbul 2012 – IRU Secretariat for Africa in Geneva © International Road Transport Union (IRU) 2012© International Road Transport Union (IRU) 2013 2013 – IRU Permanent Delegation to the United Nations in New-York

7. IRU Priority Issues   Sustainable Development Innovation Incentives Infrastructure   Facilitation Trade Tourism Road Transport These are also the priorities of the IRU Academy Page 7

8. IRU Academy: Worldwide Excellence in Road Transport Training Page 8 International Network of IRU Academy Accredited Training Institutes (ATIs) IRU Academy Advisory Committee World Bank United Nations Economic Commission for Europe © International Road Transport Union (IRU) 2013

9. A Strategic Region: UNESCWA Page 9

10. Where is the Center? Page 10

11. Where is the Center? Page 11

12. Where is the Center? Page 12

13. Efficient and professional services of the road transport industry will enable the ESCWA member states, at the crossroads of world trade flows, to seize better the opportunities of globalisation of trade! Opportunities vs Challenges (c) International Road Transport Union (IRU) 2012 Page 13

14. Barriers to Road Transport Impede Development  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 %   Source: Economic and Policy Research Institute, TEPAV, 2007 Page 14

15. World Bank LPI 2007 vs 2013 CountryLPI Singapore1 -1 Netherlands2 - 5 Hong Kong8 - 2 UAE20 - 17 China30 - 26 Turkey34 - 27 Bahrain36 - 48 India39 - 46 Saudi Arabia41 - 37 Kuwait44 - 70 Qatar46 - 33 Oman48 - 62 Jordan52 - 102 Tunisia60 - 41 Page 15 CountryLPI Brazil61 - 45 Sudan64 - 148 Iran78 - 112 Morocco94 -50 Egypt97 - 57 Lebanon98 - 96 Russian Federation99 - 95 Yemen112 - 63 Somalia127 - 155 Syria135 - 92 Libya132-137 Iraq148- 145 Algeria140 - 125 Source: http://info.worldbank.org/etools/tradesurvey/mode1b.aspSource: http://info.worldbank.org/etools/tradesurvey/mode1b.asp

16. © International Road Transport Union (IRU) 2012 © International Road Transport Union (IRU) 2012 Page 16 NELTI reconfirms road infrastructure is NOT the problem More than 105 round trips via territories of 10 countries

17. 8. Waiting/time in queue 411 96 days 5. Sum of unjustified levies paid 2 693 USD 4. Amount of total costs 57 263 USD 2. Time spent en route 855 days Page 17 3. Distance covered242 164 km 5. Sum of unjustified levies paid 2 693 USD 1. Number of trips108 7. Average speed en route 343 km/day – 14,3 km/hrs 2. Time spent en route 855 days 8. Waiting/time in queue411 96 days 4. Amount of total costs57 263 USD 6. Cargo carried 1 868 500 tonnes (c) International Road Transport Union (IRU) 2012 NELTI-4 Problems are Procedural! Problems are Procedural! 47% of total trip time wasted on borders and some drivers waiting as long as 2 weeks

18. Page 18 NELTI: Solutions NELTI: Solutions Introduce multilateral transport permit systemIntroduce multilateral transport permit system NELTINELTI Implement UN trade and road transport facilitation toolsImplement UN trade and road transport facilitation tools Increase cooperation between transit StatesIncrease cooperation between transit States Improve customs proceduresImprove customs procedures Provide multi-entry and transit visas for driversProvide multi-entry and transit visas for drivers

19. Key UN Conventions  UNESCAP Resolution 48/11, 1992  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 Page 19

20. 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 theESCWA region, significantly. Page 20

21. Status of 58 UN Conventions in the ESCWA Region as of 30 Jan 2013 Page 21 16 16 0 5 1 7 9 3 0 5 4 0 2 1 6 0

22. Contracting Parties in the Region as of 30 Jan 2013 Page 22 3737 2121 6 7 9 5 1 3 9 14/1514/15 3131 1 12/1412/14 1010 6 5 2 4 4 3 1212 12/1812/18 1010 5 2 7 0

23. Transports Internationaux Routiers Managed by the IRU since 1949 Securing and facilitating trade and international road transport © International Road Transport Union (IRU) 2013 Page 23

24. What is the TIR System?  A tried and tested, affordable facilitation instrument for international transport and trade MultilateralMultilateral Multimodal (road-rail, road-maritime, road-air)Multimodal (road-rail, road-maritime, road-air) GlobalGlobal  Based on TIR Convention of 1975, signed by 68 contracting parties Page 24 © International Road Transport Union (IRU) 2013

25. Page 25 Geographical scope of the TIR Convention

26. © International Road Transport Union (IRU) 2013 Page 26 The six pillars of the TIR System

27. LAS Council of Arab Ministers of Transport endorsed past Seminar Conclusions, regularly, and supported expansion of the UN Conventions, notably TIR and ADR and launched work for compulsory vocational training at its sessions in 2009 thru 2012. Arab Ministers call upon Arab States to join TIR and ADR (c) International Road Transport Union (IRU) 2012 Page 27

28. IRU works together with LAS, IDB, AULT since 2007 Page 28

29. IDB supports IRU-AULT-LAS cooperation since 2011 On 14 February 2011, the IDB approved a Road Transport Technical Assistance Grant to the AULT upon the IRU’s initiatives. The IDB will support:- LAS TIR Study LAS TIR Study Prefeasibility of a LASTAC Study Prefeasibility of a LASTAC Study NELTI-4 for LAS Region NELTI-4 for LAS Region Transfer ADR Training to LAS Region Transfer ADR Training to LAS Region Expand CPC Manager Training Expand CPC Manager Training 3 Training Workshops 3 Training Workshops 3 TIR Workshops 3 TIR Workshops IRU-LAS-AULT Ministerial Conference IRU-LAS-AULT Ministerial Conference (c) International Road Transport Union (IRU) 2012 Page 29

30. Save the date! © International Road Transport Union (IRU) 2012 Page 30

31. www.iru.org Page 31