The efficient decarbonisation of road transport took centre stage at the United Nations Inland Transport Committee’s kick-off day in Geneva.
At the 86th United Nations Inland Transport Committee, IRU Secretary General Umberto de Pretto moderated a high-level ministerial panel on how to accelerate the decarbonisation of road transport, including available efficiency measures and infrastructure requirements.
Setting the scene, Umberto de Pretto opened the discussion by highlighting that “the road transport industry is committed to become carbon neutral by 2050. The IRU Green Compact offers a pragmatic and realistic decarbonisation pathway to ensure that our industry can continue to meet increasing transport demand. But we need to move from ambition to action. With global coordination and genuine public-private partnerships, we can get it done.”
“We cannot wait for 2050 and then press the ‘magic button’. We need to pursue a mix of different policies right now. Governments need to provide enabling conditions that will allow transport operators to drive immediate efficiency wins, therefore cut CO₂ emissions, as well as to invest in alternative fuel technologies over the longer term,” he added.
The panellists agreed that decarbonisation requires a holistic approach that leaves no one behind and incorporates economic development, social equity and environmental protection. They also emphasised the key role of the United Nations Economic Commission for Europe in harmonising, coordinating and integrating approaches regionally and globally.
Umberto de Pretto also held a series of high-level bilateral talks with international organisations and national delegations, including with Saudi Arabia and Türkiye on TIR and transport facilitation, and with Azerbaijan and the UN’s climate change body on preparatory work ahead of COP 29.
IRU held other high-level meetings with the Secretaries General of the Economic Cooperation Organization, the Black Sea Economic Cooperation, and the International Transport Forum.
The Inland Transport Committee is the UN platform for inland transport tasked with helping to efficiently address global and regional needs in inland transport.
IRU unpacked road-rail digitalisation opportunities to boost the efficiency and transparency of trade at the European Commission’s “Investors Forum for EU-Central Asia Transport Connectivity” in Brussels.
Bringing together Central Asian countries, EU Member States and institutions, international financial organisations, and the private sector, the Forum looked to translate the conclusions of the EU-commissioned study on “Sustainable transport connections between Europe and Central Asia” into tangible operational deliverables.
The study showed that the digitalisation of transport documents reduced errors, increased transparency and curtailed corruption, thus decreasing administrative time and trade costs. Digitalisation also has a positive environmental impact due to the reduced use of paper and the transport of paper documents.
IRU contributed to the study, which prioritised soft connectivity measures, particularly through the digitalisation of transport documents with the implementation of eTIR and e-CMR, working closely with with the European Bank for Reconstruction and Development.
Speaking on the “Interoperability and Harmonisation for Connectivity” panel, IRU stressed that the transition to digitalisation is a timely opportunity to optimise the handling of transport data.
IRU Director of TIR and Transit Tatiana Rey-Bellet said, “Both road and rail transport use consignment notes as accompanying documents. CMR covers road transport, while CIM and SMSG are for rail transport. These instruments have the same function, serving as proof of contract for the carriage of goods and defining carriers’ liabilities. They also use very similar data. The transition to digitalisation should leverage existing platforms and data channels to minimise data handling and enhance the transparency of trade.”
“Close coordination between the organisations dealing with rail and road transport as well as among the authorities of the Trans-Caspian Transport Network countries are necessary to progress in this direction. The next step towards further harmonisation is to ensure their interoperability through digitalisation,” she added.
“All countries of the Trans-Caspian Transport Network are Contracting Parties to the United Nations TIR Convention. We just have to leverage all the advantages it offers. TIR is also supported by IT tools which allow customs authorities to receive advance cargo information for risk management, offering a solid foundation for risk-based transit facilitation.
UNECE and IRU are also working closely with customs authorities of countries along the Trans-Caspian Corridor to ensure a swift transition to eTIR.
“Coordination should hinge on a joint regional strategy. IRU will continue representing the interests of the private sector and drive initiatives contributing to better connectivity between Central Asia and Europe,” she concluded.
Shenzhen is accelerating the development of TIR transport corridors connecting China to Central Asia to facilitate growing trade volumes, slashing delivery times.
A Chinese TIR truck, loaded with electronic products, started its 6,500-kilometre door-to-door journey from Shenzhen, exiting China via the Irkeshtam border crossing, travelling through Kyrgyzstan, before arriving at its destination in only seven days, rather than 20 days by road without TIR.
IRU Director of TIR and Transit Tatiana Rey-Bellet said, “The opening of this new route along the strategically important China-Kyrgyzstan-Uzbekistan corridor will help southern China’s manufacturing hub of Shenzhen to further enhance its connectivity with Central Asia.”
“Companies in Shenzhen will greatly benefit from the new trade route as well as the highly efficient, secure and door-to-door road transport made possible with TIR,” she added.
By making TIR operational from the southern inland city of Shenzhen, China’s leading trade hub and home to many technology businesses and trading companies, border procedures can be further simplified, cutting transit times and costs.
Uzbek hauliers are also exploring other trade routes to China. Three TIR trucks have successfully arrived in Foshan city in southern China after departing from Uzbekistan, travelling through Kazakhstan and inland China.
This increases the number of Chinese TIR operational inland cities to 14, offering more secure transport options that are over 80% faster and 50% cheaper.
From China to Brazil, 2023 saw the TIR system continue to expand, evolve and attract newcomers. This year-in-review article spotlights ten key TIR developments from 2023.
Approaching its 75th anniversary, TIR, the only global transit system, continues to be the easiest, most secure and most reliable way to move goods across borders.
TIR, which offers a guarantee of up to EUR 100,000 per operation, gets goods efficiently and securely from a country of origin, through as many transit countries as necessary, to a country of destination in sealed load compartments, with customs inspections taking place only at the place of origin and destination.
Here are ten TIR developments from 2023 showcasing the impact of the system.
Recognising the significance of a new country joining TIR, Umberto de Pretto, IRU’s Secretary General, had then commented, “Iraq’s accession to TIR is a golden opportunity to confirm the country’s readiness to leverage the potential of international trade in supporting economic growth and driving prosperity and development.”
The implementation of TIR in Iraq, a country surrounded by TIR operational neighbours, with Iran and Türkiye being two of the biggest TIR issuing countries, will harmonise trade and transit, boosting transparency and efficiency.
Over 15 new routes were launched this year, notably linking China with Afghanistan, Mongolia, Central Asia, and Pakistan, further diversifying regional transport routes to facilitate growing trade.
Eleven new customs checkpoints have opened for TIR operations, most located in inland logistics hubs, where companies can enjoy unique benefits, streamlined border procedures, and secure door-to-door delivery.
In 2023, for the first time, a complete TIR movement was conducted by a Chinese company. With Chinese companies’ growing interest and confidence in international road transport business and TIR, the total number of Chinese TIR hauliers doubled this year.
TIR now connects China with more than 30 countries across Eurasia, offering more secure transport options that are over 80% faster and 50% cheaper.
3. GCC growth
TIR has been expanding rapidly in the Gulf Cooperation Council (GCC) region, from Oman and the United Arab Emirates (UAE) to Saudi Arabia, and most recently Qatar, significantly reducing border-crossing times and boosting regional trade.
In the second half of 2023, the GCC experienced an exponential growth in demand for TIR compared to 2022.
GCC governments are now increasingly expediting TIR’s implementation. Having witnessed the facilitation and security benefits brought by the system, GCC governments such as Saudi Arabia have now introduced dedicated express lanes for TIR trucks, a business-to-government TIR IT integration system, faster handling, and dedicated parking areas.
The Bioceanic Corridor is a highway that will span the full width of South America, from Brazil to Chile, opening new export opportunities from the Pacific, especially to China.
The conference was attended by senators, transport authorities and operators from across the country, Paraguayan senators and representatives from the Ministry of Transport, as well as public and private sector participants from Argentina.
IRU is working with its members and public authorities to support Brazil’s accession to TIR, as well as TIR’s implementation in Argentina, Chile and Uruguay.
5. TIR Green Lanes
Building on TIR’s efficiency benefits, countries are increasingly adding TIR Green Lanes at their borders.
TIR Green Lanes (express lanes at border crossings for TIR traffic) cut border crossing times, optimise transit flows with risk management mechanisms, and increase transit security.
In May, Turkmenistan established Green Lanes at ten border crossings with Afghanistan, Iran, Kazakhstan and Uzbekistan to prioritise customs clearance for TIR transport, as communicated in an IRU Flash Info.
In Kyrgyzstan, operators and shippers who send advance cargo information to Kyrgyz customs via TIR-EPD can now benefit from dedicated processing booths at the Dostuk border, the implementation of which was supported by the Organization of Turkic States.
The goods departed from Latvia and transited Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria, Türkiye, Iran via the Bandar Abbas port and then to the United Arab Emirates using a Ro-Ro vessel and finally the Kingdom of Saudi Arabia, before arriving at its destination in Kuwait.
Two drivers alternated to drive through the 13 countries according to regional driving and rest time rules.
As the only global transit system, the TIR system allowed the truck to seamlessly and intermodally pass countries and customs along the way.
7. Digitalisation
Central Asia is at the heart of east-west connectivity. With trade facilitation tools such as TIR, landlocked Central Asian countries have turned themselves into land-linked regional trade hubs.
They are also leading the way in TIR digitalisation. Central Asia’s private sector and customs administrations, with the support of the German Agency for International Cooperation (GIZ), have fully digitalised business to customs data exchanges, raising TIR’s security to a new level with advance risk management of TIR operations.
ECO-TIRACG was created to relay the private sector’s inputs to ECO bodies on transport and transit facilitation and further leverage the TIR system, which is experiencing an upward trend in ECO countries such as Azerbaijan, Iran, Kyrgyzstan, Pakistan, Türkiye, Turkmenistan, and Uzbekistan.
The ECO-TIRACG meeting also weighed other border crossing best practices, including TIR Green Lanes, intelligent queueing and e-queueing mechanisms, and simplified visa and permit procedures.
In early 2023, Huawei joined the likes of FedEx Express and DB Schenker by turning to TIR to better serve customers in Saudi Arabia and the rest of the GCC region.
Huawei is now enjoying remarkable time savings when delivering their products under TIR. TIR has been used for 1,800 Huawei deliveries so far.
The TIR system is operational across the GCC, reducing transport times between Jordan and the UAE via Saudi Arabia by 50%, over 70% between Oman and Saudi Arabia, and over 90% between the UAE and Saudi Arabia.
10. Aid delivery
Following the devastating earthquake that hit Eastern Türkiye and northern Syria in February 2023, the TIR system was used to efficiently transport humanitarian supplies across borders.
Pakistani operator NLC transported humanitarian aid – including tents, blankets and other basic aid supplies – to Türkiye via Iran, using TIR and the Islamabad-Tehran-Istanbul (ITI) corridor.
In light of Iran’s growing role in regional transit and trade, IRU’s Secretary General was in Iran to discuss how the country can continue along this path.
Umberto de Pretto, IRU’s Secretary General, was in Tehran this week for talks on trade facilitation and road transport professionalisation with the President of the Iran Customs Administration (IRICA), the President of the Road Maintenance and Transport Organisation (RMTO), the Secretary General of the Economic Cooperation Organization, and the President of IRU member ICCIMA.
On Iranian National Transport Day, IRU, ICCIMA and RMTO signed an agreement to improve road safety with IRU’s internationally recognised professional training and certification programmes.
Umberto de Pretto highlighted that the agreement, which follows a road safety webinar held last month, is a clear manifestation of how public-private partnerships can bolster road safety.
IRU and RMTO also reviewed the latest international transport and transit developments, including progress made at the national level over the past year to improve transit and border crossings. They outlined remaining challenges facing the Iranian road transport sector, particularly at borders, and plans to jointly address them in 2024.
Daryoush Amani, Iran’s Deputy Minister of Transport and the President of RMTO, noted that Iran’s transit volume grew by 33% in 2023, forecast to reach 12 million tonnes by the end of the year. He further emphasised the importance of cooperation on trade facilitation for Iran to reach its transit target volume of 40 million tonnes annually within the next five years.
Umberto de Pretto underscored that Iran could reduce border congestion and boost transit by following best practices, global standards and better procedures, including the establishment of TIR Green Lanes, transferring customs procedures from borders to inland customs offices, and eliminating the need for transhipments as well as the swapping of trailers.
Mohammad Rezvanifar, IRICA’s President, reiterated that the 11 million tonnes of goods which have transited Iran over the past eight months could have not happened without IRU’s support. He added that Iran is committed to digitalising customs documents, with IRICA soon starting the implementation of eTIR with the support of IRU and UNECE.
Recognising Iran’s high transit volume, implementation of TIR and geographical location, Umberto de Pretto stressed that the country’s transit potential is even greater. He added that to reach Iran’s transit target volume of 40 million tonnes per year, there is no option other than to improve policies and procedures, especially at border crossings.
To this end, IRU, IRICA and ICCIMA signed an MoU to conduct a study in order to identify effective measures to maximise Iran’s transit potential.
Additionally, welcoming Iraq’s accession to TIR, Mohammad Rezvanifar conveyed IRICA’s readiness to share its experience implementing TIR with Iraq and other neighbouring countries.
Iran is the leading issuer of TIR globally.
TIR in ECO region
In a meeting with the Economic Cooperation Organization’s (ECO’s) Secretary General, Ambassador Khusrav Noziri, IRU and ECO reviewed achievements advancing regional transport and transit facilitation, which were acknowledged by ECO ministers in Tashkent last month.
Umberto de Pretto highlighted the role of TIR in the ECO region, noting that over 70% of TIR operations are conducted in ECO countries, which includes the three biggest issuers of TIR globally.
Umberto de Pretto also met with the President of IRU member ICCIMA, Hossein Selahvarzi. Both sides emphasised their commitment to strengthen joint activities on international transport, transit and TIR.
The implementation of a joint project with RMTO on professional driver training, promoting TIR among traders, and addressing transit and border crossing challenges, together with the public sector, were underlined as key areas for cooperation next year.
With strong momentum driving Chinese TIR developments, IRU’s Secretary General was in China to discuss priorities for 2024 with key road transport and trade authorities.
IRU Secretary General Umberto de Pretto and Li Yang, the Vice Minister of the Ministry of Transport of China, held high-level talks in Beijing on the TIR system and major corridors.
Umberto de Pretto stressed the unique benefits of TIR and IRU’s readiness to support the Ministry of Transport to jointly develop road transport along the “Forth Logistics Corridor”, enhancing the efficiency of transport while reducing logistics costs.
As possible next steps, Umberto de Pretto and the Vice Minister explored joint efforts to optimise and cement China’s trade corridors with Central Asian countries by improving regional road transport cooperation and testing truck caravans along key corridors to demonstrate the benefits of TIR.
Following the meeting with Vice Minister Li, IRU discussed emerging challenges and opportunities facing road transport with the Ministry of Transport’s Global Sustainable Transport Innovation and Knowledge Center.
Umberto de Pretto also held high-level talks with Ren Hongbin, the Chairman of the China Council for the Promotion of International Trade (CPPIT), on joint efforts to promote road transport under multilateral standards to a wider range of upstream and downstream supply chain actors.
Both sides highlighted the strategic importance and cooperation opportunities among Belt and Road countries to strengthen the resilience of supply chains. They agreed on the need to work together to leverage each other’s networks and events to enhance engagement and collaboration between China’s business community and the global IRU network.
IRU’s Secretary General also reviewed the 2024 TIR priorities for China with Wang Limei, Chairman of IRU member the China Road Transport Association (CRTA). They focused on measures to scale up Chinese hauliers’ TIR volumes and elevating their capabilities, optimising TIR distribution networks, and improving vehicle approval procedures.
At a key Central Asian ministerial conference, IRU outlined how the TIR system can drive decarbonisation.
During the 22nd Central Asia Regional Economic Cooperation (CAREC) Ministerial Conference in Georgia, IRU unpacked how road transport and intermodality can facilitate trade and reduce carbon emissions associated with freight transport.
IRU Director of TIR and Transit Tatiana Rey-Bellet said, “The reduction of waiting times at borders, a historic mission of IRU, boosts both the efficiency and sustainability of trade, reducing freight transport’s carbon emissions. It’s a quick but significant win, which simply requires adjusting border procedures based on cargo risk profiling.
“TIR Green Lanes, which are already used in the region, are meant for exactly this purpose. Having Green Lanes on both sides of the border will be a step towards joint border controls, which is the aim of several projects initiated in the CAREC region. The CAREC region is also the most advanced in TIR digitalisation, moving fast towards the implementation of eTIR.”
“Border crossing optimisation and digitalisation, combined with measures that ease the obtainment of permits and simplify visa issuance for professional TIR drivers are necessary actions which require coordination among all CAREC countries,” she added.
With the Middle Corridor dominating the discussions at the Conference, border facilitation and intermodal transport were identified as necessary immediate steps. IRU highlighted that all CAREC countries are active TIR users.
“TIR operators in China and Pakistan are increasingly exploring new markets within the CAREC region and beyond. TIR is intermodal and offers significant opportunities to maximise the efficiency and sustainability of trade and transit,” said Tatiana Rey-Bellet.
Green Compact
IRU also presented its Green Compact, a collective global action to achieve carbon neutrality in commercial road transport by 2050. It outlines a clear roadmap for the road transport industry to meet global decarbonisation targets while continuing to provide essential transport services.
“Our Green Compact research has found that a parallel focus on both efficiency measures and alternative fuels is key to decarbonising road transport. We must recognise the crucial importance of accelerating energy efficiency measures now to decarbonise commercial road transport,” said Tatiana Rey-Bellet.
Georgia’s Prime Minister, Irakli Garibashvili, and the Asian Development Bank’s President, Masatsugu Asakawa, opened the Conference. They stressed the need for intra-regional coordination to tackle decarbonisation and improve connectivity.
The CAREC Program is a committed partnership of 11 countries – Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, Tajikistan, Turkmenistan Uzbekistan – and development partners working together to promote development through regional cooperation.
CAREC Institute
IRU’s Director of TIR and Transit also spoke at the online CAREC Chai VI event, titled “Enhancing the Middle Transport Corridor: Unlocking Opportunities in the Heart of Eurasia”, during which she reiterated road transport’s role in trade facilitation and decarbonisation.
“Today, all participants have highlighted the importance of digitalisation and harmonisation of customs procedures along the Middle Corridor to unlock its full potential. I am proud to say that TIR responds to all these calls. With CAREC countries being the most active TIR users, we have what it takes to boost the efficiency and security of trade along the Middle Corridor,” highlighted Tatiana Rey-Bellet.
The full digitalisation of TIR, regional activities and new countries topped the agenda today during a meeting between IRU’s Secretary General and UNECE’s Executive Secretary.
Following their first meeting, IRU Secretary General Umberto de Pretto and UNECE’s new Executive Secretary, Tatiana Molcean, discussed the 2024 activities for TIR at the IRU Secretariat in Geneva today.
Umberto de Pretto and Tatiana Molcean exchanged on measures to help TIR countries advance towards full digitalisation with eTIR, which is poised to further elevate the tried-and-tested benefits of the only global transit system. eTIR will further strengthen the key pillars of TIR: efficiency, security and transparency.
Concerning regional activities, Central Asian countries have shown a strong tendency to digitalise all transit and transport systems. Comprised of landlocked countries, eTIR will build on the work of TIR: turning landlocked countries into land-linked regional trade and transit hubs.
China is another key country where TIR is boosting the efficiency and security of trade and transit. Since its implementation in China in 2018, TIR has brought more efficient and secure east-west connectivity to China. TIR now connects China to over 30 countries across Eurasia. IRU and UNECE discussed practical measures to further expand its use in China and the region.
The Middle East, particularly the Gulf Cooperation Council (GCC), also continues to show significant promise for further TIR development and expansion. The implementation of TIR in Egypt and Iraq, as well as further reinforcing growth in existing TIR countries, is a key focus for 2024.
On the other side of the globe, South America remains a focus for 2024. Brazil maintains its keen interest to accede to TIR, a development that could unlock TIR in the region, with several South American countries having already acceded to TIR.
Umberto de Pretto and Tatiana Molcean also exchanged on collaboration opportunities with other international organisations.
What is TIR?
The TIR system enables goods to be shipped from a country of origin to a country of destination in sealed load compartments that are controlled by customs via a multilateral, mutually recognised system.
TIR streamlines procedures at borders, reducing the administrative burden for customs authorities and for transport and logistics companies. It cuts border waiting times significantly, saving time and money.
So many operators are finding it hard. What’s the solution?
The shortage of truck drivers is a chronic issue.
The age of the driver population is one reason why it’s a chronic issue.
A lot of truck drivers are reaching the age of retirement. But not as many new people are joining the profession. As a result, transport operators, even more so small- and medium-sized companies, the core of the road transport industry, are finding it hard to hire new drivers.
IRU’s latest truck driver shortage survey found that over 50% of trucking companies in most countries face severe or very severe difficulties hiring skilled drivers.
The 2023 IRU truck driver shortage study is based on 4,700 operators from 36 countries representing over 70% of global GDP.
What can be done?
Becoming a truck driver must be made more accessible.
High training, licence and insurance costs make it expensive to become a truck driver. In France, for example, the average cost to obtain a truck driver licence and a Certificate of Professional Competence (CPC) is EUR 5,250, over three times the minimum monthly wage.
Meanwhile, the UK’s “skills bootcamps” programme, launched in late 2021, has resulted in record numbers of people obtaining their licence. The government programme covers the cost getting a truck driver licence and CPC, going as far as covering the cost of medical tests. The government has attributed an additional GBP 50 million for 2024–2025.
The “school-to-wheel” gap also needs to be closed. The minimum driving age for international freight transport is still between 21 in some countries.
But that’s not it. The profession needs to be made more attractive.
A drastic lack of safe and secure parking areas in many parts of the world is reducing the appeal of the profession. However, in places with an ageing population such as Europe, the available pool of local talent may not be enough to cover the gap.
The access of qualified third-country drivers to the profession should be facilitated, allowing countries with a surplus of professional drivers to help cover gaps where needed.
Speaking at the World Green Economy Summit in Dubai today, IRU has outlined a realistic and practical roadmap to effectively decarbonise commercial road transport without undermining vital mobility and logistics services.
On the eve of COP28 kicking off in Dubai, leading political, industry, academic and civil society figures have come to together at the World Green Economy Summit in the city.
Under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President & Prime Minister of the United Arab Emirates and Ruler of Dubai, the annual high-level forum focuses on advancing the global green economy and sustainability agenda to achieve the UN Sustainable Development Goals.
In the Summit’s principal session on green transportation, IRU stressed the essential role of road transport and reinforced IRU’s vision and mission on sustainable transport, and the broader industry’s responsibility in driving its own decarbonisation via the IRU Green Compact.
IRU Secretary General Umberto de Pretto said, “Commercial road transport is the lifeblood of economies and communities in all countries. Our challenge is to decarbonise the sector without harming the people and their livelihoods who depend on those services.
“If we get road transport wrong, we won’t achieve any of the 17 sustainable development goals.” IRU’s Green Compact provides a clear blueprint for the industry’s decarbonisation journey.
Based on five pillars of action bringing together efficiency wins and a pragmatic roll-out of alternative fuels, the IRU Green Compact maps a wide mix of solutions that are flexible and adaptable for the wide range of countries and energy landscapes in the world today.
Over half of the necessary cumulative reduction in CO2 emissions through to 2050 can be achieved with immediate efficiency wins – with more efficient logistics chains, vehicles and drivers. But this needs political will and regulatory support.
Looking forward to the COP28 negotiations, Umberto de Pretto therefore called on governments to work in partnership with the road transport industry to scale up available and proven road transport decarbonisation best-practices and solutions.
“Governments need to legislate and communicate a clear vision and enabling conditions that will work for road transport operators to drive immediate efficiency wins, and thus CO2 emission reductions, as well as invest over the medium term in alternative fuel technology.
“Road transport operators know best how to run sustainable transport services. With the right economic and regulatory framework, the right infrastructure and operational support, and the right technology, road transport companies will decarbonise and drive the industry to become carbon neutral by 2050,” concluded Umberto de Pretto.
