Road Transport: bridging Asia and Europe

1. Road Transport: bridging Asia and Europe UNECE Workshop Geneva, 16 September 2005 Peter Krausz Head, Goods Transport & Facilitation

2. Road Transport: bridging Asia and Europe

3. 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

4. bn USD 2003/1999: + 42% 2003/1999: export + 225%; import + 249% Chinese GDP and Foreign Trade GDP Trade Source: China Intercontinental Press, Beijing, 2004

5. China: Development of Domestic Road Transport Source: Road Transport in the PR of China, IRU 2003

6. China: Development of the Expressway Network Source: Road Transport in the PR of China, IRU 2003

7. China: Unequal Infrastructure Supply E: Eastern part M: Middle part W: Western part Source: Road Transport in the PR of China, IRU 2003

8. China: Commercial Vehicles – Tools of Production Source: Road Transport in the PR of China, IRU 2003

9. China: Unequal Gross Weight Distribution of Commercial Vehicles Source: Road Transport in the PR of China, IRU 2003

10. China: Modal Split development % per weight carried % per tonne-km Source: Road Transport in the PR of China, IRU 2003

11. Logistics’ Contribution to Shanghai’s GDP Source: Road Transport in the PR of China, IRU 2003

12. 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: eCargo News Asia, 25 July 2005

13. 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

14. 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

15. 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

16. 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)

17. China has bilateral road transport agreements with Kyrgyzstan Kazakhstan Russia Uzbekistan Tajikistan Examples of a regional road transport agreement: Agreement on road transport among China, Pakistan, Kyrgyzstan and Kazakhstan Road transport protocol between Kazakhstan, China and Uzbekistan Agreement on transit between China, Kyrgyzstan and Kazakhstan Bilateral and Regional Legal Background Conventions often not respected, “unofficial” procedures in place

18. 1948 8 Members 8 countries 2005 180 Members 70 Countries Global membership IRU Members in Asia – a strong Network

19. 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 Hanoi Bombay Hong Kong Manila Vietnam Bangalore Rangoon Ho Chi Minh Bangkok Kuching Kuala Lumpur Singapore Express Gateways Logistics Warehouse Locations Bali Jakarta International Road Transport Networks: the Example of TNT 1 Asian Regional Network Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005

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

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

22. 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 24h service • Technologically irrational trans-loading obligation at borders • Customs regulations not standard between countries • Off load and inspection at some borders • Goods for 3rd 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

23. The Euro-Asian Transport Challenge

24. To CIS To East Coast To EU To US East Coast To Black Sea to US West Coast to US West Coast Saturated To Mid East Saturated Sea transport Land transport Key: The Global Transport Challenge

25. 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

26. 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”

27. Road Transport Industry’s Reply: Road Container Caravan Beijing – Brussels”

28. Thank you.