Costs of Waiting at Borders the Road

Costs of Waiting at Borders – the Road Transport Industry’s Point of View The Problem Peter Krausz, Head, Goods Transport and Facilitation, IRU ITF/UNECE/WB Joint Seminar Paris, 5 -6 March 2009 © International Road Transport Union (IRU) 2009

IRU Priorities 2009 § Sustainable Development • Innovation • Incentives • Infrastructure § Facilitation • Trade • Tourism • Road Transport © International Road Transport Union (IRU) 2009

What is at Stake? Not just our daily Cup of Coffee… What does it take to have a cup of coffee in a Paris café? The combined efforts of 29 companies in 18 countries Road Transport has become a vital production tool! Source: IRU © International Road Transport Union (IRU) 2009

Economic and Social Importance of Border Waiting Times § Macro and micro-economic losses § Benefits of lifting borders (the EU lesson) § Existing Barriers cost billions (The Hague Study; IRU-intern estimations for TIR traffic) § Insecurity leads to economic losses and human suffering (ITF-IRU “attack survey”) © International Road Transport Union (IRU) 2009

Dismantling internal EU borders § Saved traders ECU 5 billion / year § Longest delays: SP/Pl, GR/IT, SP/F and IT/F § Surplus costs to hauliers in 1992: ECU 900 mln § Greatest savings in the Mediterranean (long delay times) and between Germany, France and Benelux (high traffic volumes) § Total weighted direct saving to hauliers thanks to efficiency gains: ECU 370 million § Further benefits: distribution centres; just-in-time techniques © International Road Transport Union (IRU) 2009

Shadow Costs of Various Barriers Source: Hague Consulting Group, 1998 Page 6 * Includes lost opportunities © International Road Transport Union (IRU) 2009

Border Waiting Time Costs Money to TIR Users Indicator Value Average number of TIR carnets issued per year 2’ 923’ 481 Minimum number of border crossing operations in the TIR system per year 8’ 770’ 443 Total waiting time, hour per year, for TIR traffic 8’ 770’ 443 Value of an hour lost per truck, USD per hour 50 Total lost value per year, TIR traffic, USD 438’ 522’ 188 Total lost value** 1998 -2005, TIR traffic, USD 3’ 508’ 177’ 500 * EU 25 External, EU 4, CIS & Balkan Borders, 1998 -2005 * EU 25 1998 -2005 **Direct costs can double through losses to producers and traders, including lost opportunities due to longer and unreliable transport time, thus: tota USD 7. 0 billion. Source: IRU 2006 Page 7 © International Road Transport Union (IRU) 2009

Attacks on International Drivers (ITF-IRU Survey 2007 -08) § Security = major concern across transport and logistics chain also at borders: ð theft of goods, vehicles ð illegal immigration ð smuggling of goods… § Violent attacks on truck drivers a growing problem over the surveyed period (20012005 © International Road Transport Union (IRU) 2009

Attack locations Border queues are also dangerous and harmful © International Road Transport Union (IRU) 2009

Attack Frequency & Targets 1 in 6 or 17% of drivers attacked in the past 5 years (30% more than once) © International Road Transport Union (IRU) 2009

Financial Impact of Attacks § Direct financial loss due to incidents identified in the survey: Euro 12 million § Extrapolated direct financial loss for a calculated number of attacks on international HGV drivers in 36 countries over five-years: Euro 7. 217 billion § With indirect losses: 2 - 8 times Euro 7. 217 billion © International Road Transport Union (IRU) 2009

Solutions ? © International Road Transport Union (IRU) 2009

Improve Border Crossings What to do? => PMI § Improve Procedures as per international standards § Change stakeholders’ Mindset § Invest in physical Infrastructure © International Road Transport Union (IRU) 2009

Practical Issues to Solve § Transport quotas and licences – GATT V § Non compliance with MFN treatment § Requirements for transhipment § Mandatory convoys § Illegal immigration § Mandatory use of certain commercial services § Problems in obtaining visas for professional drivers © International Road Transport Union (IRU) 2009

Practical Issues to Solve § § § § Transit or quasi transit fees Quasi security measures Measures without prior or with short notice Non accession to conventions and nonharmonised application Regional transport and transit agreements Deadlines too short to appeal Non-harmonised transport documents Improper application of TIR © International Road Transport Union (IRU) 2009

The Way Forward § Accession to and coherent implementation of UN Conventions on road transport Most important areas: § TIR and other customs conventions § CMR (consignment note) § Border control harmonisation § AGR (E roads) § AETR (social) § Road traffic § ADR, ATP (special cargo) § Vehicle technical standards § Sign bilateral agreements supporting multilateral schemes © International Road Transport Union (IRU) 2009

Border Control Harmonisation Convention, Annex 8 § Sets necessary legal environment for improving border crossing conditions in its almost 50 Contracting Parties § New Annex 8 entered into force on 20 May 2008 § Rapid and efficient application of this Annex needed – not even published in many countries © International Road Transport Union (IRU) 2009

Annex 8 – Main Focuses § Visa – Art. 2 (!) § Streamlining procedures (urgent consignments) – Art. 3 § Vehicle technical inspection – Art. 4 § Standardised weighing operations – Art. 5 § Minimum infrastructure requirements – Art. 6 § Monitoring – Art. 7 © International Road Transport Union (IRU) 2009

Actions Needed § Implement Annex 8 • obtain official publication of Annex 8 • elaborate and adopt a national action plan to implement Annex 8 • initiate information exchange with neighbouring countries • support special private industry projects © International Road Transport Union (IRU) 2009

IRU Border Waiting Times Observatory (BWTO) OBJECTIVES § Daily operational support • Route planning; Route changes § Lobby tool, transport and infrastructure development policy • Identify neuralgic border crossing points • Identify major source of problems: procedures or other Page 20 © International Road Transport Union (IRU) 2009 © International Road Transport Union (IRU)

BWTO – Functioning: http: //www. iru. org/index/bwt-app § Data input • direct input by national data suppliers via einterface • Border waiting times in hours (sum of wait in country A & B) • Input by national body (government authorities or road transport association, or other) • Several data input per day possible (quasi real time) • Input of short verbal notice possible on reasons of wait Page 21 © International Road Transport Union (IRU) 2009 © International Road Transport Union (IRU)

BWTO – Functioning: http: //www. iru. org/index/bwt-app § Data use • Constraint: data availability!! - political will & decision! • Data search by traffic mode and direction • Data visualisation by days or periods; statistics and graphs • Access to textual information Page 22 © International Road Transport Union (IRU) 2009 © International Road Transport Union (IRU)

BWTO - Facts and Figures © International Road Transport Union (IRU) 2009

Actions Needed § Encourage the use of BWTO • Promote the system to transport operators; create a link from association / authority web sites to IRU site • Use BWTO data and statistics in political and professional lobbying § Join the BWTO as data supplier, whereby Associations • SE Europe and in Asia in particular • Identify reliable data sources • Appoint a person in charge • Register with IRU and start / continue data supply © International Road Transport Union (IRU) 2009

From Caravans to Daily Operations = NELTI New Euro-Asian Land Transport Initiative 26