© International Road Transport Union (IRU) 2011 Page 1 E2A return shipments: Problems and Solutions...

E2A return shipmentsE2A return shipments::

Problems and SolutionsProblems and Solutions

Tampa, 26 January 2011Tampa, 26 January 2011

Igor RounovIgor Rounov,IRU Under Secretary General

IRU InitiativesIRU Initiatives

MHI Central Asia sectionMHI Central Asia section

19,7%(234 km)

10,4%(220 km)

40,1%(846 km)

20,0% (422 km)

18,4%(389 km)

0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0

China Kyrgyz Republic Tajikistan Uzbekistan Afghanistan

IRU allocates

funds to UN

for demining activities in

Northern Afghanistan

IRU cooperation with UN MASIRU cooperation with UN MAS

Return ShipmentsReturn Shipments

Return shipments - Return shipments -

transportation of goods, transportation of goods, produced in Afghanistan, for the produced in Afghanistan, for the markets in Europe, America and markets in Europe, America and Asia, using the containers and Asia, using the containers and

vehicles which deliver vehicles which deliver shipments of non-lethal goods shipments of non-lethal goods

to the US forces in Afghanistanto the US forces in Afghanistan

Traditional Afghan Export GoodsTraditional Afghan Export Goods

40% - skins and leather, wool, cotton and some types of fruit, including pomegranates and pomegranate juice ;

10% - carpets

Building materials (in particular, marble slabs), etc.

Consumers of Afghan ExportConsumers of Afghan Export

50% - neighboring Pakistan, Iran, 50% - neighboring Pakistan, Iran, Turkmenistan, Tajikistan, UzbekistanTurkmenistan, Tajikistan, Uzbekistan

26% - USA26% - USA

16% - EU16% - EU

ExportExport ImportImport

20092009 547 mln 547 mln USDUSD

5330 mln 5330 mln USDUSD

Afghan Foreign Trade ImbalanceAfghan Foreign Trade Imbalance

REASONS

o Untapped transport potentialUntapped transport potential;;

o Weak marketing of Afghan goods in developed Weak marketing of Afghan goods in developed countriescountries;;

o Absence of export incentives for Afghan Absence of export incentives for Afghan agricultural producersagricultural producers..

Afghan ExportAfghan Export

MAIN OBSTACLES

No opportunities for consolidating shipments within the countryNo opportunities for consolidating shipments within the country

No logistical link between export and import streams of cargoesNo logistical link between export and import streams of cargoes

Closed market of international haulage for foreign hauliersClosed market of international haulage for foreign hauliers

Poor condition of roadsPoor condition of roads

Afghan ExportAfghan Export

PROSPECTS

Investment projects in the countryInvestment projects in the country

Gradual renovation of Afghan roadsGradual renovation of Afghan roads

Restoration of olive tree plantationsRestoration of olive tree plantations

Production of saffron, soya, sunflower oilProduction of saffron, soya, sunflower oil

Construction of citrus and pomegranate farmsConstruction of citrus and pomegranate farms

Expansion of production of dried fruitExpansion of production of dried fruit

E2A return shipments E2A return shipments possible routespossible routes

A2E via TurkmenistanA2E via Turkmenistan

A2E via UzbekistanA2E via Uzbekistan

A2E via TajikistanA2E via Tajikistan

Main Challenges for E2A return shipments of traditional Afghan exports goods

ChallengesChallenges

• Road safety

• Customs security

• Prevention of drugs trafficking

Construction of warehouses – for consolidation of Afghan exports goods from different regions of the country

Challenges

Crossing the Afghan border

Afghan hauliers - absence of modern vehicles

Difficulties with issuance of Afghan visas for foreign drivers

Lack of English or Russian speaking Afghan drivers

Challenges

Export of empty containers from Afghanistan

Integration of Integration of Afghanistan into Afghanistan into the regional legal the regional legal system of system of international road international road haulagehaulage

Challenges

Creation of export-Creation of export-oriented zonesoriented zones

Challenges

Accession of Afghanistan to the main UN conventions and agreements, as well as significant modernization of the legal base in the country

Afghan Transit CaravanAfghan Transit Caravan

DLA/IRU caravanDLA/IRU caravan;;RouteRoute: : Stuttgart – KandaharStuttgart – Kandahar;;Via the territory of 12 Via the territory of 12 countriescountries;;20 containers20 containers;;Pilot return delivery of 2 Pilot return delivery of 2 containerscontainers

OutcomesOutcomes::• Establishment of most favorable conditions for road Establishment of most favorable conditions for road shipments along the Silk Roadshipments along the Silk Road;;• Encouragement for institutional reforms and economic Encouragement for institutional reforms and economic cooperation between the transit countriescooperation between the transit countries;;• Establishment of return shipments of export cargoes from Establishment of return shipments of export cargoes from Afghanistan to Europe, using imported containersAfghanistan to Europe, using imported containers..

IRU Analytical ReportIRU Analytical Report

Currently IRU is preparing an Analytical Report Currently IRU is preparing an Analytical Report on the possibilities and prospects for on the possibilities and prospects for

developing return shipments from Afghanistan. developing return shipments from Afghanistan. It will include specific recommendations for the It will include specific recommendations for the Afghan Government, as well as for international Afghan Government, as well as for international

organisations, for the expansion of organisations, for the expansion of international road haulage of export shipments international road haulage of export shipments

and the integration of Afghanistan into the and the integration of Afghanistan into the international transportation system. international transportation system.

66thth Euro-Asian Road Transport Euro-Asian Road Transport ConferenceConference

www.iru.orgwww.iru.org

© International Road Transport Union (IRU) 2011 Page 1 E2A return shipments: Problems and Solutions...

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