© International Road Transport Union (IRU) 2010 Creation of Model Highway – Public Private...

© International Road Transport Union (IRU) 2010© International Road Transport Union (IRU) 2010

Creation of Model Highway – Public Private Initiative to

revitalise the Silk Road

TIFA Meeting TIFA Meeting Tashkent, 5 May 2010Tashkent, 5 May 2010

TIFA Meeting TIFA Meeting Tashkent, 5 May 2010Tashkent, 5 May 2010

Martin MARMY,Martin MARMY, Secretary GeneralSecretary GeneralMartin MARMY,Martin MARMY, Secretary GeneralSecretary General

Page Page 22 © International Road Transport Union (IRU) 2010© International Road Transport Union (IRU) 2010

IRU’s global MembershipIRU’s global Membership

CreatedCreated19481948

National Associations National Associations

from 8 founding countriesfrom 8 founding countries

BelgiumBelgium DenmarkDenmark FranceFrance NetherlandsNetherlands

NorwayNorway SwedenSweden UKUK SwitzerlandSwitzerland

2010 2010 180 Members180 Members 74 Countries 74 Countries


Effects of GlobalisationEffects of Globalisationon Trade and the Supply Chainon Trade and the Supply Chain

The combined efforts of29 companies in 18 countries

Source: IRUSource: IRU

What does it take to have a cup of coffee in a café? What does it take to have a cup of coffee in a café?

Road transport has becomea vital production tool!

No country is No country is landlocked to landlocked to

road transport!road transport!


Evolution of sea containersEvolution of sea containersin portsin ports

Evolution of sea containersEvolution of sea containersin portsin ports


Daily telecommunications activitiesDaily telecommunications activities

Telecommunications gap corresponds to the regions that have Telecommunications gap corresponds to the regions that have not been interconnected to global tradenot been interconnected to global trade

Source: Centre for Strategic International Studies (CSIS), Washington, DC


If the Silk Road was the main trade If the Silk Road was the main trade artery 2000 years ago, why not today? artery 2000 years ago, why not today?

Ancient Silk RoadAncient Silk Road


IRU New Euro-Asian Land IRU New Euro-Asian Land Transport Initiative - NELTITransport Initiative - NELTI

• Launched in September Launched in September 20082008

• Commercial transport Commercial transport deliveries performed by deliveries performed by transport operators from transport operators from 12 Euro-Asian countries12 Euro-Asian countries

• 5 routes5 routes

• In cooperation with the In cooperation with the Asian Development BankAsian Development Bank


NELTI: Problems are Procedural!

40% of time lost 40% of time lost at border at border

crossings!crossings!

Bakshish at the Bakshish at the border accounts for border accounts for

30% of additional 30% of additional costs!costs!

Page Page 99 © International Road Transport Union (IRU) 2010© International Road Transport Union (IRU) 2010Page Page 99 © International Road Transport Union (IRU) 2010© International Road Transport Union (IRU) 2010

If road construction is always beneficial, it is always more expensive, complex and time consuming than to

implement the UN facilitation instruments

How to reduce the “economic distance”How to reduce the “economic distance”Scenario 1: construct new roadsScenario 1: construct new roads


Key aspects of theKey aspects of theModel Highway Initiative (MHI)Model Highway Initiative (MHI)

1. Institutional reforms

2. Creation of support infrastructure

3. Implementation of best practices

4. Establishment of a multilateral investment fund


1st key aspect of the MHI

Institutional Reforms

Introduction of effective border crossing procedures based Introduction of effective border crossing procedures based on international regulationson international regulations

SimplifiedSimplified procedures forprocedures for allocationallocation of land along the of land along the model highwaymodel highway

Accession to and effective implementation of international Accession to and effective implementation of international agreements and conventions on trade and road transport agreements and conventions on trade and road transport facilitationfacilitation

Reduction of border waiting times jointly with anti-bribery Reduction of border waiting times jointly with anti-bribery action planaction plan


2nd key aspect of the MHI

Creation of Support Infrastructure

Border crossing facilitiesBorder crossing facilities

Access to border crossing facilitiesAccess to border crossing facilities

Warehouses and multimodal logistics centresWarehouses and multimodal logistics centres

Gas stationsGas stations

Parking areasParking areas

MotelsMotels


3rd key aspect of the MHI

Implementation of Best Practices

Introduction of “TIR Green Lanes”Introduction of “TIR Green Lanes”

Implementation of electronic pre-declaration of goods (IRU Implementation of electronic pre-declaration of goods (IRU TIR-EPD)TIR-EPD)

Joint customs control proceduresJoint customs control procedures

Implementation of Single Window border crossing Implementation of Single Window border crossing procedureprocedure

Recognition of the International Weight CertificateRecognition of the International Weight Certificate

Simplified multi-entry visa for professional driversSimplified multi-entry visa for professional drivers


4th key aspect of the MHI

The development of trade and road transport along the Great Silk Road needs a Multilateral Investment Fund for

Implementation of administrative reformsImplementation of administrative reforms

Creation of support infrastructureCreation of support infrastructure

Implementation of best practicesImplementation of best practices


Model Highway InitiativeSelection of segments

Page Page 1616 © International Road Transport Union (IRU) 2010© International Road Transport Union (IRU) 2010Page Page 1616 © International Road Transport Union (IRU) 2010© International Road Transport Union (IRU) 2010

Comparison of economic return from Comparison of economic return from different types of infrastructuredifferent types of infrastructure

Source: The World Bank

World Bank supported infrastructure projectsWorld Bank supported infrastructure projects

6

1215

19 20

29

0

10

20

30

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ates

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www.iru.orgwww.iru.org

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