Road Transport bridging Asia and Europe UNECE Workshop

Road Transport: bridging Asia and Europe UNECE Workshop Geneva, 16 September 2005 Peter Krausz Head, Goods Transport & Facilitation 1 © International Road Transport Union (IRU) 2005

Road Transport: bridging Asia and Europe 2 © International Road Transport Union (IRU) 2005

Road Transport: bridging Asia and Europe Contents: § Development of domestic road goods transport in Asia: China’s example § International road transport in Asia § Legal background of international road transport § Developing operational networks in Asia § Problems of transport operations by road § The global challenge and the industry’s reply 3 © International Road Transport Union (IRU) 2005

Chinese GDP and Foreign Trade GDP Trade bn USD 2003/1999: + 42% Source: China Intercontinental Press, Beijing, 2004 2003/1999: export + 225%; import + 249% 4 © International Road Transport Union (IRU) 2005

China: Development of Domestic Road Transport Source: Road Transport in the PR of China, IRU 2003 5 © International Road Transport Union (IRU) 2005

China: Development of the Expressway Network Source: Road Transport in the PR of China, IRU 2003 6 © International Road Transport Union (IRU) 2005

China: Unequal Infrastructure Supply E: Eastern part M: Middle part W: Western part Source: Road Transport in the PR of China, IRU 2003 7 © International Road Transport Union (IRU) 2005

China: Commercial Vehicles – Tools of Production Source: Road Transport in the PR of China, IRU 2003 8 © International Road Transport Union (IRU) 2005

China: Unequal Gross Weight Distribution of Commercial Vehicles Source: Road Transport in the PR of China, IRU 2003 9 © International Road Transport Union (IRU) 2005

China: Modal Split development % per weight carried % per tonne-km Source: Road Transport in the PR of China, IRU 2003 10 © International Road Transport Union (IRU) 2005

Logistics’ Contribution to Shanghai’s GDP Source: Road Transport in the PR of China, IRU 2003 11 © International Road Transport Union (IRU) 2005

China: Trucking Features § Fragmented market: • 1. 5 million small size companies (2 -3 vehicles) • Big players (Cosco, Sinotrans) with 1 -2% (!) market share only • Wide fragmentation leads to relatively expensive services § “Red tape”: too many licences to obtain § Major issue: overloading § 53% state-owned companies Source: e. Cargo News Asia, 25 July 2005 12 © International Road Transport Union (IRU) 2005

General International Economic Context § § China and India alone represent 1/3 of world population China’s and India’s recent GDP growth: 5 -10% a year CIS states are also emerging GDP growth rate < trade growth rate < container traffic growth rate § Chinese and Central Asian economies are very open • Export/GDP ration between 40 -60% § Asian economy still maritime oriented but inland areas are opening up and being developed Source: CEMT/CM(2005)13 13 © International Road Transport Union (IRU) 2005

Repercussions on International Transport § Today, land transport is a link serving maritime transport • land transport is dominated by rail movements § Tomorrow: Euro-Asian Land Bridge will be in operation; • road transport services will rapidly grow in particular for time and quality-sensitive services § Congestion of ports and their hinterland § New potential for road transport: value for money § Inter-operability and multi-modality Source: CEMT/CM(2005)13 14 © International Road Transport Union (IRU) 2005

Progress of International Road Goods Transport in the Region – China’s Example Million tonnes 1’ 000 truck movements Countries considered: Russia, N-Korea, Mongolia, Vietnam, Kazakhstan, Pakistan, Kyrgyzstan, Burma, Lao, Hong Kong (85 -90% of total!), Macao Source: Road Goods Transport: China –Europe, IRU 2004 15 © International Road Transport Union (IRU) 2005

Multilateral Legal Background § UNESCAP Recommendation 48/11, April 1992: accede to UN • • • Convention on Road Traffic TIR Convention Customs Convention on temporary importation of vehicles Customs Convention on Containers Convention on the Harmonisation of Border Controls CMR Convention § GMS Agreement on the Facilitation of Cross-border Transport (Cambodia, China, Lao, Myanmar, Thailand, Vietnam) § In preparation: agreement of the Shanghai Cooperation Organisation on facilitation of international road transport (Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan) 16 © International Road Transport Union (IRU) 2005

Bilateral and Regional Legal Background § China has bilateral road transport agreements with § Examples of a regional road transport agreement: • Kyrgyzstan • Agreement on road transport among China, Pakistan, Kyrgyzstan and Kazakhstan • Kazakhstan • Russia • Tajikistan • Road transport protocol between Kazakhstan, China and Uzbekistan Conventions often not respected, “unofficial” procedures in place • Agreement on transit between China, Kyrgyzstan and Kazakhstan • Uzbekistan 17 © International Road Transport Union (IRU) 2005

IRU Members in Asia – a strong Network IRU Membership in Asia CRTA, China IRTB, Israel JTA, Japan PNC-ICC, Pakistan KAZATO, Kazakhstan ICCIM, Iran Nartam, Mongolia Kyrgyz AIA, Kyrgyzstan Asmap, RF KATC, Kuwait DHL, Bahrain CCIAB, Lebanon IATC, U. A. E. SNC ICC, Syria KCCI, Korea (S) THADA, Turkmenistan ABBAT, Tajikistan UCCET, Turkey AIRCUZ, Uzbekistan UND, Turkey 1948 8 Members 8 countries Global membership 18 2005 180 Members 70 Countries © International Road Transport Union (IRU) 2005

International Road Transport Networks: the Example of TNT 1 Over 100 line-hauls a day • 80 Intra-Asia • Over 20 to Europe, USA & rest of the world Tokyo Beijing Osaka Seoul Shanghai Taiwan Delhi Guangzhou Hong Kong Hanoi Bombay Manila Vietnam Bangalore Rangoon Bangkok Ho Chi Minh Kuching Kuala Lumpur Asian Regional Network Singapore Express Gateways Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005 Apthrop, Jakarta 19 Bali Logistics Warehouse Locations © International Road Transport Union (IRU) 2005

International Road Transport Networks: the Example of TNT 2 Thailand : Manpower : Road fleet size(own vehicles) : 333 Number of Depots : Total warehouse space available : Myanmar 2, 200 25 111, 751 sqm Laos : local provider exclusive agency Cambodia : local provider exclusive agency Myanmar : no Vietnam : representation 263 Road fleet size(own vehicles) : Present in Mekong Subregion Manpower : 97 Number of Depots : Total warehouse space available : 6 6, 160 sqm Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005 Apthrop, 20 © International Road Transport Union (IRU) 2005

International Road Transport Networks: the Example of TNT 3 Dubai • EE Road • FTL’s • Planned Middle East Road Network Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005 Apthrop, 21 © International Road Transport Union (IRU) 2005

Problems of International Operations: TNT’s Example § International conventions not in use • • • Borders not open as in Europe – restricted vehicle movement Long lines can take hours to cross, no fast lane, no 24 h service Technologically irrational trans-loading obligation at borders Customs regulations not standard between countries Off load and inspection at some borders Goods for 3 rd country searched at transit border Double taxation of vehicles Vehicle standards not harmonised Security: communications black spots, hi-jacking, risk of theft Bribes Local sensitivities ( e. g. Alcohol and magazines) Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005 Apthrop, 22 © International Road Transport Union (IRU) 2005

The Euro-Asian Transport Challenge 23 © International Road Transport Union (IRU) 2005

The Global Transport Challenge To US East Coast Key: To E U To Black Sea t id Eas To M Sa tur ate d d d rate Satu To East to US West Coast To CI S Sea transport 24 to US West Coast Land transport © International Road Transport Union (IRU) 2005

Road Transport Industry’s Reply: past Euro-Asian Road Transport Conferences § Irkutsk, Russian Federation, September 2001 • Solve Asian land-locked countries’ problems • Diminish losses due to barriers • Improve road infrastructure • Encourage CRTA joining the IRU § Tehran, October 2003 • Recognise road transport’s vital role in international trade • Support UN conventions on road transport • Governments, abandon protectionism • Improve service quality through professional training, best practices in applying latest transport techniques and technologies 25 © International Road Transport Union (IRU) 2005

Road Transport Industry’s Reply: Beijing Euro-Asian Road Transport Conference • “Road Transport: bridging Asia and Europe” • Business Conference for 800 delegates from trade and transport • Ministerial Conference of 15 Ministers from Europe and Asia • International Exhibition • Farewell to the Container Caravan by Road “Beijing. Berlin – Brussels” 26 © International Road Transport Union (IRU) 2005

Road Transport Industry’s Reply: Road Container Caravan Beijing – Brussels” 27 © International Road Transport Union (IRU) 2005