© international road transport union (iru) 2005 page 1 road transport: bridging asia and europe...

© International Road Transport Union (IRU) 2005

Road Transport: bridging Road Transport: bridging Asia and EuropeAsia and Europe

Road Transport: bridging Road Transport: bridging Asia and EuropeAsia and Europe

UNECE WorkshopUNECE WorkshopGeneva, 16 September 2005Geneva, 16 September 2005

UNECE WorkshopUNECE WorkshopGeneva, 16 September 2005Geneva, 16 September 2005

Peter KrauszPeter KrauszHead, Goods Transport & Head, Goods Transport & FacilitationFacilitation


Road Transport: bridging Asia and EuropeRoad Transport: bridging Asia and EuropeRoad Transport: bridging Asia and EuropeRoad Transport: bridging Asia and Europe


Contents:Contents:

Development of domestic road goods transport in Asia: Development of domestic road goods transport in Asia: China’s exampleChina’s example

International road transport in AsiaInternational road transport in Asia

Legal background of international road transportLegal background of international road transport

Developing operational networks in AsiaDeveloping operational networks in Asia

Problems of transport operations by roadProblems of transport operations by road

The global challenge and the industry’s replyThe global challenge and the industry’s reply

Contents:Contents:

Development of domestic road goods transport in Asia: Development of domestic road goods transport in Asia: China’s exampleChina’s example

International road transport in AsiaInternational road transport in Asia

Legal background of international road transportLegal background of international road transport

Developing operational networks in AsiaDeveloping operational networks in Asia

Problems of transport operations by roadProblems of transport operations by road

The global challenge and the industry’s replyThe global challenge and the industry’s reply

Road Transport: Road Transport: bridging Asia and Europebridging Asia and Europe

Road Transport: Road Transport: bridging Asia and Europebridging Asia and Europe


Chinese GDP and Foreign TradeChinese GDP and Foreign Trade

0

50

100

150

200

250

300

350

400

450

1999 2000 2001 2002 2003

Export

Import

0

50

100

150

200

250

300

350

400

450

1999 2000 2001 2002 2003

Export

Import

0

2

4

6

8

10

12

1999 2000 2001 2002 2003

trillion RMB

0

2

4

6

8

10

12

1999 2000 2001 2002 2003

trillion RMB

bn USD

2003/1999: + 42% 2003/1999: export + 225%; import + 249%

Source: China Intercontinental Press, Beijing, 2004

GDP Trade


China: Development of China: Development of Domestic Road TransportDomestic Road TransportChina: Development of China: Development of

Domestic Road TransportDomestic Road Transport

8.17

3.43

10.54

4.7

10.29

6.13

11.16

6.8

0

2

4

6

8

10

12

1991 1995 2000 2002

bn tonnes

100 bn tonne-kms

Source: Road Transport in the PR of China, IRU 2003Source: Road Transport in the PR of China, IRU 2003


574

3.271

16.295

25.120

0

5000

10000

15000

20000

25000

30000

1991 1995 2000 2002

km

China: Development of the Expressway China: Development of the Expressway NetworkNetwork

China: Development of the Expressway China: Development of the Expressway NetworkNetwork



China: Unequal Infrastructure SupplyChina: Unequal Infrastructure SupplyChina: Unequal Infrastructure SupplyChina: Unequal Infrastructure Supply

14.1

37.2

16.7

7.9

0

5

10

15

20

25

30

35

40

Total E M W

km/100 km2


E: Eastern partE: Eastern partM: Middle partM: Middle partW: Western partW: Western part


China: Commercial Vehicles – Tools of China: Commercial Vehicles – Tools of ProductionProduction

China: Commercial Vehicles – Tools of China: Commercial Vehicles – Tools of ProductionProduction

4.8

5.09

5.4

4.5

4.6

4.7

4.8

4.9

5

5.1

5.2

5.3

5.4

2000 2001 2002

Trucks, mio



China: Unequal Gross Weight China: Unequal Gross Weight Distribution of Commercial VehiclesDistribution of Commercial Vehicles

China: Unequal Gross Weight China: Unequal Gross Weight Distribution of Commercial VehiclesDistribution of Commercial Vehicles

2.113.800

291.400

1.999.600

over 8 tonnes

4-8 tonnes

less than 4 tonnes



China: Modal Split developmentChina: Modal Split developmentChina: Modal Split developmentChina: Modal Split development

0102030405060708090

1997 1999 2001

Rail

Road

Water

Pipeline

0

10

20

30

40

50

60

70

1997 1999 2001

Rail

Road

Water

Pipeline

% per weight carried% per weight carried % per tonne-km% per tonne-km



Logistics’ Contribution to Shanghai’s GDPLogistics’ Contribution to Shanghai’s GDPLogistics’ Contribution to Shanghai’s GDPLogistics’ Contribution to Shanghai’s GDP

14.5

16.8

13

13.5

14

14.5

15

15.5

16

16.5

17

1990 2000

%



China: Trucking FeaturesChina: Trucking FeaturesChina: Trucking FeaturesChina: Trucking Features

Fragmented market: Fragmented market:

• 1.5 million small size companies (2-3 vehicles)1.5 million small size companies (2-3 vehicles)

• Big players (Cosco, Sinotrans) with 1-2% (!) market Big players (Cosco, Sinotrans) with 1-2% (!) market share onlyshare only

• Wide fragmentation leads to relatively expensive Wide fragmentation leads to relatively expensive servicesservices

““Red tape”: too many licences to obtainRed tape”: too many licences to obtain

Major issue: overloadingMajor issue: overloading

53% state-owned companies53% state-owned companies

Fragmented market: Fragmented market:

• 1.5 million small size companies (2-3 vehicles)1.5 million small size companies (2-3 vehicles)

• Big players (Cosco, Sinotrans) with 1-2% (!) market Big players (Cosco, Sinotrans) with 1-2% (!) market share onlyshare only

• Wide fragmentation leads to relatively expensive Wide fragmentation leads to relatively expensive servicesservices

““Red tape”: too many licences to obtainRed tape”: too many licences to obtain

Major issue: overloadingMajor issue: overloading

53% state-owned companies53% state-owned companiesSource: eCargo News Asia, 25 July 2005Source: eCargo News Asia, 25 July 2005


General International Economic ContextGeneral International Economic ContextGeneral International Economic ContextGeneral International Economic Context

China and India alone represent 1/3 of world populationChina and India alone represent 1/3 of world population China’s and India’s recent GDP growth: 5-10% a yearChina’s and India’s recent GDP growth: 5-10% a year CIS states are also emergingCIS states are also emerging GDP growth rate GDP growth rate << trade growth rate trade growth rate << container traffic growth container traffic growth

raterate Chinese and Central Asian economies are very openChinese and Central Asian economies are very open

• Export/GDP ration between 40-60%Export/GDP ration between 40-60%

Asian economy still maritime oriented but inland areas are Asian economy still maritime oriented but inland areas are opening up and being developedopening up and being developed

China and India alone represent 1/3 of world populationChina and India alone represent 1/3 of world population China’s and India’s recent GDP growth: 5-10% a yearChina’s and India’s recent GDP growth: 5-10% a year CIS states are also emergingCIS states are also emerging GDP growth rate GDP growth rate << trade growth rate trade growth rate << container traffic growth container traffic growth

raterate Chinese and Central Asian economies are very openChinese and Central Asian economies are very open

• Export/GDP ration between 40-60%Export/GDP ration between 40-60%

Asian economy still maritime oriented but inland areas are Asian economy still maritime oriented but inland areas are opening up and being developedopening up and being developed

Source: CEMT/CM(2005)13Source: CEMT/CM(2005)13


Repercussions on International TransportRepercussions on International TransportRepercussions on International TransportRepercussions on International Transport

TodayToday, land transport is a link serving maritime , land transport is a link serving maritime transporttransport

• land transport is dominated by rail movementsland transport is dominated by rail movements

TomorrowTomorrow: Euro-Asian : Euro-Asian LandLand Bridge will be in operation; Bridge will be in operation;

• road transport services will rapidly grow in particular for time road transport services will rapidly grow in particular for time and quality-sensitive servicesand quality-sensitive services

Congestion of ports and their hinterlandCongestion of ports and their hinterland

New potential for road transport: value for moneyNew potential for road transport: value for money

Inter-operability and multi-modalityInter-operability and multi-modality

TodayToday, land transport is a link serving maritime , land transport is a link serving maritime transporttransport

• land transport is dominated by rail movementsland transport is dominated by rail movements

TomorrowTomorrow: Euro-Asian : Euro-Asian LandLand Bridge will be in operation; Bridge will be in operation;

• road transport services will rapidly grow in particular for time road transport services will rapidly grow in particular for time and quality-sensitive servicesand quality-sensitive services

Congestion of ports and their hinterlandCongestion of ports and their hinterland

New potential for road transport: value for moneyNew potential for road transport: value for money

Inter-operability and multi-modalityInter-operability and multi-modality

Source: CEMT/CM(2005)13Source: CEMT/CM(2005)13


Progress of International Road Goods Progress of International Road Goods Transport in the Region – China’s ExampleTransport in the Region – China’s Example

Progress of International Road Goods Progress of International Road Goods Transport in the Region – China’s ExampleTransport in the Region – China’s Example

31.3

36.640.7

23.826.7

29.8

0

5

10

15

20

25

30

35

40

45

2001 2002 2003

export, tonnes

import, tonnes

589

669

760

460510

580

0

100

200

300

400

500

600

700

800

2001 2002 2003

export, trucks

import, trucks

Million tonnesMillion tonnes 1’000 truck movements1’000 truck movements

Countries considered: Russia, N-Korea, Mongolia, Vietnam, Kazakhstan, Countries considered: Russia, N-Korea, Mongolia, Vietnam, Kazakhstan, Pakistan, Kyrgyzstan, Burma, Lao, Hong Kong (85-90% of total!), Macao Pakistan, Kyrgyzstan, Burma, Lao, Hong Kong (85-90% of total!), Macao

Source: Road Goods Transport: China –Europe, IRU 2004Source: Road Goods Transport: China –Europe, IRU 2004


Multilateral Legal BackgroundMultilateral Legal BackgroundMultilateral Legal BackgroundMultilateral Legal Background

UNESCAP Recommendation 48/11, April 1992: UNESCAP Recommendation 48/11, April 1992: accede to UNaccede to UN• Convention on Road TrafficConvention on Road Traffic

• TIR ConventionTIR Convention

• Customs Convention on temporary importation of vehiclesCustoms Convention on temporary importation of vehicles

• Customs Convention on ContainersCustoms Convention on Containers

• Convention on the Harmonisation of Border ControlsConvention on the Harmonisation of Border Controls

• CMR ConventionCMR Convention

GMS Agreement on the Facilitation of Cross-border Transport GMS Agreement on the Facilitation of Cross-border Transport (Cambodia, China, Lao, Myanmar, Thailand, Vietnam)(Cambodia, China, Lao, Myanmar, Thailand, Vietnam)

In preparation: agreement of the Shanghai Cooperation In preparation: agreement of the Shanghai Cooperation Organisation on facilitation of international road transport Organisation on facilitation of international road transport (Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan)(Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan)

UNESCAP Recommendation 48/11, April 1992: UNESCAP Recommendation 48/11, April 1992: accede to UNaccede to UN• Convention on Road TrafficConvention on Road Traffic

• TIR ConventionTIR Convention

• Customs Convention on temporary importation of vehiclesCustoms Convention on temporary importation of vehicles

• Customs Convention on ContainersCustoms Convention on Containers

• Convention on the Harmonisation of Border ControlsConvention on the Harmonisation of Border Controls

• CMR ConventionCMR Convention

GMS Agreement on the Facilitation of Cross-border Transport GMS Agreement on the Facilitation of Cross-border Transport (Cambodia, China, Lao, Myanmar, Thailand, Vietnam)(Cambodia, China, Lao, Myanmar, Thailand, Vietnam)

In preparation: agreement of the Shanghai Cooperation In preparation: agreement of the Shanghai Cooperation Organisation on facilitation of international road transport Organisation on facilitation of international road transport (Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan)(Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan)


Bilateral and Regional Legal BackgroundBilateral and Regional Legal BackgroundBilateral and Regional Legal BackgroundBilateral and Regional Legal Background

China has bilateral road China has bilateral road transport agreements withtransport agreements with

• KyrgyzstanKyrgyzstan

• KazakhstanKazakhstan

• RussiaRussia

• UzbekistanUzbekistan

• TajikistanTajikistan

China has bilateral road China has bilateral road transport agreements withtransport agreements with

• KyrgyzstanKyrgyzstan

• KazakhstanKazakhstan

• RussiaRussia

• UzbekistanUzbekistan

• TajikistanTajikistan

Examples of a regional road Examples of a regional road transport agreement:transport agreement:

• Agreement on road transport Agreement on road transport among China, Pakistan, among China, Pakistan, Kyrgyzstan and KazakhstanKyrgyzstan and Kazakhstan

• Road transport protocol between Road transport protocol between Kazakhstan, China and Kazakhstan, China and UzbekistanUzbekistan

• Agreement on transit between Agreement on transit between China, Kyrgyzstan and China, Kyrgyzstan and KazakhstanKazakhstan

Examples of a regional road Examples of a regional road transport agreement:transport agreement:

• Agreement on road transport Agreement on road transport among China, Pakistan, among China, Pakistan, Kyrgyzstan and KazakhstanKyrgyzstan and Kazakhstan

• Road transport protocol between Road transport protocol between Kazakhstan, China and Kazakhstan, China and UzbekistanUzbekistan

• Agreement on transit between Agreement on transit between China, Kyrgyzstan and China, Kyrgyzstan and KazakhstanKazakhstan

Conventions often not respected,Conventions often not respected,““unofficial” procedures in placeunofficial” procedures in place


IRU Members in Asia – a strong NetworkIRU Members in Asia – a strong NetworkIRU Members in Asia – a strong NetworkIRU Members in Asia – a strong Network

IRU Membership in AsiaIRU Membership in Asia

CRTA, ChinaCRTA, China IRTB, IsraelIRTB, Israel

JTA, JapanJTA, Japan PNC-ICC, PakistanPNC-ICC, Pakistan

KAZATO, KazakhstanKAZATO, Kazakhstan ICCIM, IranICCIM, Iran

Nartam, MongoliaNartam, Mongolia Kyrgyz AIA, KyrgyzstanKyrgyz AIA, Kyrgyzstan

Asmap, RFAsmap, RF KATC, KuwaitKATC, Kuwait

DHL, BahrainDHL, Bahrain CCIAB, LebanonCCIAB, Lebanon

IATC, U.A.E.IATC, U.A.E. SNC ICC, SyriaSNC ICC, Syria

KCCI, Korea (S)KCCI, Korea (S) THADA, TurkmenistanTHADA, Turkmenistan

ABBAT, TajikistanABBAT, Tajikistan UCCET, TurkeyUCCET, Turkey

AIRCUZ, UzbekistanAIRCUZ, Uzbekistan UND, TurkeyUND, Turkey

2005 2005 180 Members180 Members

70 Countries 70 Countries

19481948 8 Members8 Members8 countries8 countries

19481948 8 Members8 Members8 countries8 countries Global membershipGlobal membership


International Road Transport International Road Transport Networks: the Example of TNT 1Networks: the Example of TNT 1 International Road Transport International Road Transport

Networks: the Example of TNT 1Networks: the Example of TNT 1

Jakarta

Shanghai

Hong Kong

Bangkok

Taiwan

Beijing

Guangzhou

Kuching

Kuala Lumpur

Manila

Bali

Tokyo

Osaka

Seoul

Hanoi

Vietnam

Ho Chi Minh

Rangoon

Delhi

Bombay

Bangalore

Singapore

Express Gateways

Logistics Warehouse Locations

Over 100 line-hauls a day• 80 Intra-Asia• Over 20 to Europe,

USA & rest of the world

Asian Regional Asian Regional NetworkNetwork

Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005


Myanmar

Present in Mekong SubregionPresent in Mekong Subregion

MyanmarMyanmar : no representation

ThailandThailand : Manpower : 2,200

Road fleet size(own vehicles) : 333

Number of Depots : 25 Total warehouse space available : 111,751 sqm

CambodiaCambodia : local provider exclusive agency

VietnamVietnam : Manpower : 263

Road fleet size(own vehicles) : 97

Number of Depots : 6 Total warehouse space available : 6,160 sqm

LaosLaos : local provider exclusive agency







Dubai

• EE Road • FTL’s• Planned

Middle East Road NetworkMiddle East Road NetworkSource: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005Source: Companies’ view om Logistics along the EWEC, P. Apthrop, TNT 2005


Problems of International Problems of International Operations: TNT’s ExampleOperations: TNT’s ExampleProblems of International Problems of International

Operations: TNT’s ExampleOperations: TNT’s Example

International conventions not in useInternational conventions not in use• Borders not open as in Europe – restricted vehicle movementBorders not open as in Europe – restricted vehicle movement• Long lines can take hours to cross, no fast lane, no 24h Long lines can take hours to cross, no fast lane, no 24h

serviceservice• Technologically irrational trans-loading obligation at bordersTechnologically irrational trans-loading obligation at borders• Customs regulations not standard between countriesCustoms regulations not standard between countries• Off load and inspection at some bordersOff load and inspection at some borders• Goods for 3Goods for 3rdrd country searched at transit border country searched at transit border• Double taxation of vehiclesDouble taxation of vehicles• Vehicle standards not harmonisedVehicle standards not harmonised• Security: communications black spots, hi-jacking, risk of theftSecurity: communications black spots, hi-jacking, risk of theft• Bribes Bribes • Local sensitivities ( e.g. Alcohol and magazines)Local sensitivities ( e.g. Alcohol and magazines)

International conventions not in useInternational conventions not in use• Borders not open as in Europe – restricted vehicle movementBorders not open as in Europe – restricted vehicle movement• Long lines can take hours to cross, no fast lane, no 24h Long lines can take hours to cross, no fast lane, no 24h

serviceservice• Technologically irrational trans-loading obligation at bordersTechnologically irrational trans-loading obligation at borders• Customs regulations not standard between countriesCustoms regulations not standard between countries• Off load and inspection at some bordersOff load and inspection at some borders• Goods for 3Goods for 3rdrd country searched at transit border country searched at transit border• Double taxation of vehiclesDouble taxation of vehicles• Vehicle standards not harmonisedVehicle standards not harmonised• Security: communications black spots, hi-jacking, risk of theftSecurity: communications black spots, hi-jacking, risk of theft• Bribes Bribes • Local sensitivities ( e.g. Alcohol and magazines)Local sensitivities ( e.g. Alcohol and magazines)



The Euro-Asian Transport ChallengeThe Euro-Asian Transport ChallengeThe Euro-Asian Transport ChallengeThe Euro-Asian Transport Challenge


The Global Transport ChallengeThe Global Transport ChallengeThe Global Transport ChallengeThe Global Transport Challenge

Sea transportSea transport Land transportLand transportKey:Key:

To EU

To EU

To CIS

To CIS

To Mid EastTo Mid East

To US East CoastTo US East Coastto US West Coastto US West Coast to US West Coastto US West Coast

To To East East CoastCoast

To Black SeaTo Black Sea

Saturated

Saturated

Satu

rate

d

Satu

rate

d


Road Transport Industry’s Reply: Road Transport Industry’s Reply: past Euro-Asian Road Transport Conferencespast Euro-Asian Road Transport Conferences

Road Transport Industry’s Reply: Road Transport Industry’s Reply: past Euro-Asian Road Transport Conferencespast Euro-Asian Road Transport Conferences

Irkutsk, Russian Federation, September 2001Irkutsk, Russian Federation, September 2001• Solve Asian land-locked countries’ problemsSolve Asian land-locked countries’ problems• Diminish losses due to barriersDiminish losses due to barriers• Improve road infrastructureImprove road infrastructure• Encourage CRTA joining the IRUEncourage CRTA joining the IRU

Tehran, October 2003Tehran, October 2003• Recognise road transport’s vital role in international tradeRecognise road transport’s vital role in international trade• Support UN conventions on road transportSupport UN conventions on road transport• Governments, abandon protectionismGovernments, abandon protectionism• Improve service quality through professional training, best Improve service quality through professional training, best

practices in applying latest transport techniques and practices in applying latest transport techniques and technologiestechnologies

Irkutsk, Russian Federation, September 2001Irkutsk, Russian Federation, September 2001• Solve Asian land-locked countries’ problemsSolve Asian land-locked countries’ problems• Diminish losses due to barriersDiminish losses due to barriers• Improve road infrastructureImprove road infrastructure• Encourage CRTA joining the IRUEncourage CRTA joining the IRU

Tehran, October 2003Tehran, October 2003• Recognise road transport’s vital role in international tradeRecognise road transport’s vital role in international trade• Support UN conventions on road transportSupport UN conventions on road transport• Governments, abandon protectionismGovernments, abandon protectionism• Improve service quality through professional training, best Improve service quality through professional training, best

practices in applying latest transport techniques and practices in applying latest transport techniques and technologiestechnologies


Road Transport Industry’s Reply: Road Transport Industry’s Reply: Beijing Euro-Asian Road Transport ConferenceBeijing Euro-Asian Road Transport Conference

Road Transport Industry’s Reply: Road Transport Industry’s Reply: Beijing Euro-Asian Road Transport ConferenceBeijing Euro-Asian Road Transport Conference

• ““Road Transport: bridging Asia and Europe”Road Transport: bridging Asia and Europe”• Business Conference for 800 delegates from trade Business Conference for 800 delegates from trade

and transportand transport• Ministerial Conference of 15 Ministers from Europe Ministerial Conference of 15 Ministers from Europe

and Asiaand Asia• International ExhibitionInternational Exhibition• Farewell to the Container Caravan by Road “Beijing-Farewell to the Container Caravan by Road “Beijing-

Berlin – Brussels”Berlin – Brussels”


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

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


Thank you.Thank you.

© international road transport union (iru) 2005 page 1 road transport: bridging asia and europe...

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