WELCOMEWELCOME

PABSEC PABSEC

WELCOMEWELCOME

PABSEC PABSEC

Geneva, 10 March 2011Geneva, 10 March 2011

Evolution of IRU Representation Evolution of IRU Representation

19481948 IRU founded in GenevaIRU founded in Geneva

19731973 IRU Permanent Delegation to theIRU Permanent Delegation to theEU established in BrusselsEU established in Brussels

19981998 IRU Permanent Delegation to theIRU Permanent Delegation to theCIS established in MoscowCIS established in Moscow

20052005 IRU Permanent Delegation to theIRU Permanent Delegation to theMiddle East established in IstanbulMiddle East established in Istanbul

Page Page 44

Evolution of IRU MembershipEvolution of IRU Membership

CreatedCreated

19481948

8 Founder 8 Founder States:States:

CreatedCreated

19481948

8 Founder 8 Founder States:States:

BelgiumBelgium DenmarkDenmark FranceFrance NetherlandsNetherlands

NorwayNorway SwedenSweden UKUK SwitzerlandSwitzerland

2011 2011 180 Members180 Members 74 Countries 74 Countries

What is Globalisation?

The combined efforts of

29 companies in 18 countries

Source: IRUSource: IRU

Road Transport has become a production tool!Road Transport has become a production tool!

What does it take to have a cup of coffee in a café? What does it take to have a cup of coffee in a café?

Road transport tonnage distancesin modern economies

Impact of Globalisation on transport

Sea transportSea transport Land transportLand transportKey:Key:

to US West Coastto US West Coastto US West Coastto US West Coast

Saturated

Saturated

Satu

rate

d

Satu

rate

d

Evolution of sea containersin ports

Interconnecting all the businesses along the reopened Silk Road

Sea transportSea transport Land transportLand transportKey:Key:

to US West Coastto US West Coastto US West Coastto US West Coast

To To East East CoastCoast

Saturated

Saturated

Satu

rate

d

Satu

rate

d

To Black SeaTo Black SeaDiesel fuel = 30 cents / litreDiesel fuel = 30 cents / litreLabour costs = $200/monthLabour costs = $200/monthTo US East CoastTo US East Coast

Interconnecting all the businesses along the reopened Silk Road

Sea transportSea transport Land transportLand transportKey:Key:

to US West Coastto US West Coastto US West Coastto US West Coast

To To East East CoastCoast

Saturated

Saturated

Satu

rate

d

Satu

rate

d

To US East CoastTo US East Coast

To Mid EastTo Mid East

To EU

To EU

To CIS

To CIS

2005 Launch of Historic2005 Launch of HistoricBeijing-Brussels CaravanBeijing-Brussels Caravan

BeijingBeijing

BrusselsBrussels

Page 12

2007 Black Sea Ring Highway 2007 Black Sea Ring Highway Truck CaravanTruck Caravan

The Caravan was initiated and promoted with the The Caravan was initiated and promoted with the aim of promoting the future BSEC Ring Highway aim of promoting the future BSEC Ring Highway and identifying the physical road conditions and and identifying the physical road conditions and the non- physical barriers to road transport.the non- physical barriers to road transport.

ECO-IRU ECO-IRU Truck CaravanTruck Caravan: driving : driving progress, prosperity and peace!progress, prosperity and peace!

Page Page 1313

IRU NELTI Project: interconnecting every business to every major world

market

NELTI confirms road infrastructure NELTI confirms road infrastructure is NOT the problemis NOT the problem

12 road 12 road transport transport companies companies from 8 from 8 countries;countries;

More than More than 117 round trips117 round trips via territories of via territories of 24 24 countriescountries

4. Sum of unjustified levies paid4. Sum of unjustified levies paid 143 700 USD143 700 USD

NELTI: Problems are Procedural!

1. Time spent en route by all vehicles1. Time spent en route by all vehicles 5 041 days5 041 days

2. Distance covered2. Distance covered 1 560 000 km1 560 000 km

4. Sum of unjustified levies paid4. Sum of unjustified levies paid 143 700 USD143 700 USD

3. Amount of official levies paid3. Amount of official levies paid 167 200 USD167 200 USD

5. Number of stops en route5. Number of stops en route 5 917 5 917

6. Number of state border crossings6. Number of state border crossings 10641064

7. Length of downtime en route7. Length of downtime en route 1 880 days1 880 days

8. Cargo carried8. Cargo carried 4 200 tonnes4 200 tonnes

1. Time spent en route by all vehicles1. Time spent en route by all vehicles 5 041 days5 041 days

7. Length of downtime en route7. Length of downtime en route 1 880 days1 880 days

3. Amount of official levies paid3. Amount of official levies paid 167 200 USD167 200 USD40% of time lost 40% of time lost

at border at border crossings!crossings!

Bakshish at the Bakshish at the border accounts for border accounts for

30% of additional 30% of additional costs!costs!

Page 17

0

2

4

6

8

10

12

14

16

USD

Billio

ns

Transport Costs only All Costs *

Source: Hague Consulting Group, 1998Source: Hague Consulting Group, 1998 * Includes lost opportunities* Includes lost opportunities

Any penalty on road transport is an even Any penalty on road transport is an even greater penalty on the economy as a whole!greater penalty on the economy as a whole!

Join UN Global tools to permit road transport to interconnect businesses

Border Waiting Times due to inappropriate procedures penalise

BSEC countries’ trade!

Implementation of Annex 8 of 1982 UN Convention is needed to prevent

waiting times! New Annex 8 on facilitating

border crossing by trucks entered into force on 20 May 2008

Still not implemented!

Need to work together to ensure implementation in every BSEC country, as well as EU!

Road Freight Transport: Interconnecting every Road Freight Transport: Interconnecting every business and every transport mode between business and every transport mode between Europe and Asia – Focus on the CaucasusEurope and Asia – Focus on the Caucasus