Today’s Challenges that faces Transporters on the New Silk Road

1. Today’s Challenges that faces Transporters on the New Silk Road • Necessary Governments Actions Required in Transportation

2. Agenda • The Historical & the Current Importance of Silk Road. • Challenges that faces Transporters on the New Silk Road connecting Asia, Europe, and Africa . • The Expected out comes of overcoming these Challenges. • The Reality of Logistics in the Arab World, and how to • develop it. • What are the Responsibilities of Governments in the Silk Road. • How to Practically Implement Governments Decisions on • Road Transportations…

3. The Historical & the Current Importance of Silk Road. • Silk Road had a significant impact on prosperity of ancient Chinese, Indian, Egyptian and Roman civilizations • Silk Road extended from commercial centers in northern China • where it is divided into two main roads, North and South • The North Road passes from Bulgar - Kipichak across Eastern Europe thru the Black Sea ,the Balkans, ending in Venice . • The South Road passes from Turkistan across Mesopotamia thru Anatolia ,Syria, the Mediterranean Egypt and North Africa.

4. China- Magnolia- Iran- Iraq-Kurdistan-Turkey- Syria- Mediterranean Sea- Egypt- North Africa

5. الصين -  منغوليا – أفغانستان -  إيران – العراق –كردستان- تركيا – بلاد الشام ”سوريا-    إلى البحر الأبيض المتوسط أو عبردمشق و بلاد الشام إلى مصر وشمال إفريقيا .

6. Challenges that faces Transporters on the New Silk Road • Variations of Road Taxes between different countries. • The absence of Agreements and Regulations that determine the customs and tax • Closure of border for usually unconvincing reasons. • The absence of a common policy on goods and services crossing. • The high risks and danger of road bandits.

7. Challenges that faces Transporters on the New Silk Road • The Undeveloped laws and institutional structures. • Lack of trust between the leadership in the region, makes each of them concerned more about private matters in his country without paying attention to the common interest. • Political disputes between the regional countries has a negative impact on commercial transportation. • Variation of development levels between the countries through which the Silk Road hinders Progress and prosperity

8. Challenges that faces Transporters on the New Silk Road • Poor road network in the region. • Poor Management and low operational efficiency. • Extremely Old Fleet operating in the region. • The lengthy procedures. • Corruption and illegal practices

9. Number of Procedures and Signatures required. المصدر : مبادرات الاسكو”ESCWA”Economic and Social Commission for Western Asia 2001

10. Number of Procedures and Signatures required. Comparison the number of procedures and signatures in Egypt 2005 , 2012From one of the ESCWA studies

11. ما هي التحديات التي تواجه مشغلي النقل التجاري على طول طريق الحرير الحديث؟ Principles of Transport & electricity Transportation Always Takes the Easiest Way Exactly like Electricity that takes the path that is least resistant.

12. The Expected out comes of overcoming these Challenges. • Increase in commercial transport, which leads to movement of trade and money. • ​​ Development and prosperity • Enhance Multi cultures and promote dialogue among civilizations • Promote World Peace.

13. The Reality of Logistics in the Arab World, and how to • develop it. • World Bank has adopted a five-point scale ( Logistics Performance Index) and was able to evaluate of the 150 countries in terms of the international supply chain performance • The five points can be categorized on the following criteria • Customs procedures • Cost of logistics and freight transport operations • Infrastructure related to transportation operations • Time taken for the goods to reach destination • The efficiency of the local logistics industry

14. The Reality of Logistics in the Arab World, and how to • develop it. Low-preforming countries , mostly of which are from developing countries, ( large number of Arab states) suffers form complexity of the procedures, poor transport services sector, and lack of investment in the sector.

15. Logistics Performance Index ( 1=Low, 5=High) World Bankhttp://data.albankaldawli.org/indicator/LP.LPI.OVRL.XQ/countries?display=map

16. Logistics Performance Index World Bankhttp://data.albankaldawli.org/indicator/LP.LPI.OVRL.XQ/countries?display=map

17. How to Develop Logistics in Arab Region Expand the traditional means to help facilitate trade: • Infrastructure for transportation • Development of information systems at the customs service. Including restructuring and development of logistics. • Reshape international Supply Chain and transportation Logistics.

18. How to Develop Logistics in Arab Region Expected results: • Reduce the differences between the countries performance indexes • Entering the Arab countries in a real international economic competition • Transforming the national economy from an economy burdened with problems and obstacles to effective and practical economy that will attracts investments. • Flexibility in the procedures. • Speed ​​and accuracy in logistics. • Simplicity in the laws and legislations .

19. What are the Responsibilities of Governments in the Silk Road. Government should give high political priority to promote and facilitate trade and transport in the Middle East and along the Silk Road, which will make it easier for transport companies to do business, through the implementation of the principal instruments of the United Nations to facilitate customs, standardize procedures, and dramatically reduce costly waiting times at the border. Reducing Obstacles ……Increasing Trade

20. How to Practically Implement Governments Decisions on Road Transportations… . After taking government actions needed to facilitate Logistics , One must apply these decisions on the ground and through the training of transport companies on establishing international standards, made by the IRU Academy “International Road Union ) In partnership with the United Nations , the European Commission and, Arab Union for Land Transport (AULT) and The World Bank.

21. Thank You Bahiej Al Biqawi bahiej@almajdouie.com ceo@jadarahgroup.com +970 592 92 88 88