Coordinated development of road transport auxiliary infrastructure – a pragmatic approach, the Model Highway Initiative International Conference on Prospects of Trade and International Road Transport Development in the Black Sea, Central Asia and Middle East Regions November 28, 2012, Izmir, Turkey Igor Rounov, IRU Under Secretary General Page 1 © International Road Transport Union (IRU) 2012 IRU Truck Caravans Page 2 © International Road Transport Union (IRU) 2012 IRU New Eurasian Land Transport Initiative – NELTI Launched in September 2008 Commercial road transport deliveries performed by road transport companies from the Eurasian continent 5 routes In cooperation with the Asian Development Bank Page 3 © International Road Transport Union (IRU) 2012 NELTI: Problems are Procedural! 1. 1. Time Time spent spent en en route routeby byallallvehicles vehicles 55 041 041 days days 40% of time Bakshish at thelost border accounts for at border 30% of additional crossings! 2. Distance covered 1 560 000 km 3. Amount of official levies paid 167 200 USD 4. 4. Sum Sum of of unjustified unjustified levies levies paid paid 143 143 700 700 USD USD 5. Number of stops en route 5 917 6. Number of state border crossings 1064 costs! 7. Length of downtime en route 1 880 days 8. Cargo carried 4 200 tonnes Page 4 © International Road Transport Union (IRU) 2012 Model Highway Initiative (MHI) Page 5 © International Road Transport Union (IRU) 2012 MHI Letters of Support Page 6 © International Road Transport Union (IRU) 2012 Decision of the Ministers of Transport of BSEC Member States … 8. Assist to the implementation of transport, auxiliary and logistic infrastructure development projects in the BSEC region in cooperation with other international organizations and financial institutions and by involvement of the business community, particularly on the basis of the public-private partnership, notably by inclusion of the IRU Model Highway Initiative (MHI) into the future project of the BSRH Master Plan and cooperation in preparation of required feasibility studies. … © International Road Transport Union (IRU) 2012 Model Highway Definition “Model Highway is a chosen section (2-3 stretches) of an internationally rated trunk road of 1500 – 2000 km in length, crossing the territories of several Eurasian countries and of strategic importance for interconnecting and promoting Eurasian trade and transit by road to major world markets.” Page 8 © International Road Transport Union (IRU) 2012 1st key aspect of the MHI Creation of modern ancillary roadside infrastructure Border crossing points (BCP) and facilities Rest areas (RA) Service areas (catering, shops, gaz stations, parkings, etc) Safe parking lots for trucks and buses / coaches Roadside hotels, motels and campings Dry ports and multimodal logistics centres Maintenance and repair centers for cars, trucks and buses Page 9 © International Road Transport Union (IRU) 2012 2nd key aspect of the MHI Institutional reforms and implementation of best practices in the road transport sector Liberalisation of international road transportation Harmonisation and facilitation of border crossing procedures Accession to and effective implementation of international agreements and conventions on trade and road transport facilitation Page 10 © International Road Transport Union (IRU) 2012 3d key aspect of the MHI Multilateral Investment Mechanism (Regional Infrastructure Fund - RIF MHI) Allocate funds for MHI infrastructure projects Public-private partnership Involve business community (international, national and local businesses) into the process of creation, and modernisation of ancillary roadside infrastructure Model highway functioning management Other measures (Including ancillary MHI infrastructure clause into long term credit lines, etc.) Page 11 © International Road Transport Union (IRU) 2012 MHI Group of Experts 1. The First meeting of the Group of experts on ancillary infrastructure development (September 14, 2011, Yalta, Ukraine, organised jointly with the Ministry of infrastructure of Ukraine); 2. The Second meeting of the Group of experts on ancillary infrastructure development (October 10-11, Batumi, Georgia, organised jointly with GUAM and the Ministry of Economy and Sustainable Development of Georgia); 3. The Third meeting of the Group of experts on ancillary infrastructure development (February 16, Astana, Kazakhstan, organised jointly with the Ministry of Transport and Communication of the Republic of Kazakhstan). 4. The Workshop on investment, financial and technological issues of the MHI implementation (March 6-8, 2012, Thessaloniki, Greece, jointly with BSEC and Black Sea Trade and Development Bank) Page 12 © International Road Transport Union (IRU) 2012 MHI sections MHI South Caucasus (BTBT) section: Trabzon - Sarpi (Georgia/Turkey BCP) – Batumi – Tbilisi – Krasny Most (Georgia/Azerbaijan BCP) - Baku Future extension (under negotiation): Baku port (BCP) - Turkmenbashi port (BCP) - Ashgabat MHI Central Asia section: Pol-eXomri - Nizhniy Panj (Afghanistan/ Tajikistan BCP) – Dushanbe – Karamyk (Tajikistan/ Kyrgyzstan BCP) – Bishkek – Kordai (Kyryzstan/Kazakhstan BCP) Shimkent – Kzyl-Orda Branches : - Kordai – Almaty – Khorgos (Kazakhsatn/China BCP) - Sarytash -Irkeshtam (Kyrgyzstan/China BCP) Page 13 © International Road Transport Union (IRU) 2012 Multilateral Cooperation and Respective Responsibilities National Governments Institutional reforms in the road transport sector International Finance Institutes and development banks Regional Infrastructure Fund MHI (RIF MHI) International Professional Organisations Coordination governments and business activities Local and transnational businesses act as main contructors Ancillary roadside infrastructure creation and operation Page 14 © International Road Transport Union (IRU) 2012 Prefeasibility Study on the development of Model Highway Pre-Feasibility Study presentations: 1. Baku, Republic of Azerbaijan, October 30, 2012 2. Tbilisi, Georgia, November 1, 2012 3. Ankara, Turkey, November November 14, 2012 Page 15 © International Road Transport Union (IRU) 2012 MHI - what’s next? 1 Feasibility study (Master Plan) 2 Negotiations on Regional Infrastructure Fund creation (RIF MHI) 3 Involving contractors (creation of the contractors pool) 4 Creation of the MHI coordination committee 5 Implementation study Page 16 ©©International InternationalRoad RoadTransport TransportUnion Union(IRU) (IRU)2011 2012 www.iru.org Page 17 © International Road Transport Union (IRU) 2012