“A Regional Strategic Framework for the Development of Trade, Transit and International Road Transport

Links across the Middle East and North Africa Region”

“A Regional Strategic Framework for the Development of Trade, Transit and International Road Transport

Links across the Middle East and North Africa Region”

Dr. Mahmoud Abdallatt Secretary General

Arab Union Of Land Transport

Dr. Mahmoud Abdallatt Secretary General

Arab Union Of Land Transport

1- What is AULT.

2- AULT’s Involvement in Arab Land Transport

Agreements.

3- Strategic Partnership with IRU.

4- Role & Importance of Road Transport to Trade.

5- The Arab Trade and Land Transport.

6- Recommendations.

7- Conclusion.

1- What is AULT.

2- AULT’s Involvement in Arab Land Transport

Agreements.

3- Strategic Partnership with IRU.

4- Role & Importance of Road Transport to Trade.

5- The Arab Trade and Land Transport.

6- Recommendations.

7- Conclusion.

A Regional Strategic framework for the Development of Trade, Transit and International Road Transport Links across the Middle East and

North Africa Region

A Regional Strategic framework for the Development of Trade, Transit and International Road Transport Links across the Middle East and

North Africa Region

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What is AULTWhat is AULT

1- Established in 1976 as a Pan- Arab Organization based in Amman – Jordan. 2- Prime objective to facilitate and develop road transport amongst Arab Countries.3- “70” Members of “16” Arab Countries, about 60,000 vehicle , 1.25 Billion U.S $ in capital.

4- Observer Member : 1- Arab Ministers of Transport Council (LAS). 2- Arab Ministers of Tourism Council (LAS). 3- The Social & Economical Ministerial Council (LAS) . 4- Arab Land Transport Technical Committee.

1- Established in 1976 as a Pan- Arab Organization based in Amman – Jordan. 2- Prime objective to facilitate and develop road transport amongst Arab Countries.3- “70” Members of “16” Arab Countries, about 60,000 vehicle , 1.25 Billion U.S $ in capital.

4- Observer Member : 1- Arab Ministers of Transport Council (LAS). 2- Arab Ministers of Tourism Council (LAS). 3- The Social & Economical Ministerial Council (LAS) . 4- Arab Land Transport Technical Committee.

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AULT’s Involvement in Arab LandTransport Agreements

AULT’s Involvement in Arab Land Transport Agreements

1- Drafted the Agreement of Carriage of Goods in Arab Countries.*(1)2- Co-drafted the Agreement of Passengers Transport in Arab

Countries.*(1) 3- Participated in preparing the Multi-Mode Transport Agreement in

Arab Countries. *(1)4- Liasoning between Decisions – Makers and Operators.

1- Drafted the Agreement of Carriage of Goods in Arab Countries.*(1)2- Co-drafted the Agreement of Passengers Transport in Arab

Countries.*(1) 3- Participated in preparing the Multi-Mode Transport Agreement in

Arab Countries. *(1)4- Liasoning between Decisions – Makers and Operators.

*(1 ) All these Agreements have been approved within LAS and now are openfor signature

*(1 )All these Agreements have been approved within LAS and now are open for signature

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Strategic Partnership with IRUStrategic Partnership with IRU

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1- M.o.U in Geneva, 2007.

2- Conferences and workshops on road transport.

3- Cooperation on training.

4- M.o.U in 2010 by which AULT is the Examining Authority of CPC & ADR courses.

5- M.o.U in 2011 to implement IDB Technical Grant.

1- M.o.U in Geneva, 2007.

2- Conferences and workshops on road transport.

3- Cooperation on training.

4- M.o.U in 2010 by which AULT is the Examining Authority of CPC & ADR courses.

5- M.o.U in 2011 to implement IDB Technical Grant.

Role & Importance of Road Transport to Trade.Role & Importance of Road Transport to Trade.

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1- Road transport has the best accessibility.

2- The cheapest ton/km for short distance.

3- Little investments in infrastructure in comparison.

4- Carries about 80% to 100% of Arab bilateral trade.

1- Road transport has the best accessibility.

2- The cheapest ton/km for short distance.

3- Little investments in infrastructure in comparison.

4- Carries about 80% to 100% of Arab bilateral trade.

Arab Trade and Land Transport. ( Physical Barrier)Arab Trade and Land Transport. ( Physical Barrier)

1- Arab Transit Agreement as opposed to T.I.R.2- About 30% of Journey time at the borders.3- About 30% of total transport cost unjustified.4- About 80% of final price of the goods is transport cost as opposed to 20 – 30% .

5 -Infrastructure of land transport in the Region.Impact of so-called “ Arab Spring” on trade in -6 .the Region

1- Arab Transit Agreement as opposed to T.I.R.2- About 30% of Journey time at the borders.3- About 30% of total transport cost unjustified.4- About 80% of final price of the goods is transport cost as opposed to 20 – 30% .

5 -Infrastructure of land transport in the Region.6- Impact of so-called “ Arab Spring” on trade in the Region.

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Total Arab Trade (*)

2006-2011 in billions of U.S .$

Total Arab Trade (*)

2006-2011 in billions of U.S .$

77

Year Total Volume of Export

Growth Total Volume of Import

Growth

2006 659.6 % 18 373 % 14.7

2007 754.7 % 16 508 % 32.8

2008 1081.2 % 32.5 701.6 % 32.2

2009 729.1 - (% 32) 603.3 - (% 14.4)

2010 904.5 % 25.2 655.2 % 10.2

2011 1195.8 % 30.6 752.6 % 12.8

The year of the Global financial crises The year of the Global financial crises

* Source: Arab Economical Annual Report (LAS) 2012* Source: Arab Economical Annual Report (LAS) 2012

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Share of Arab BilateralTrade of the Total Trade (*)

2006-2011

Share of Arab BilateralTrade of the Total Trade (*)

2006-2011

2006 2007 2008 2009 2010 2011 Export % 8.6 % 8.9 % 8.9 % 10.7 % 10.7 % 8.0

Import % 3.3 % 12.1 % 3.3 % 11.3 % 11.8 % 12.3

* Source: Arab Economical Annual Report (LAS) 2012* Source: Arab Economical Annual Report (LAS) 2012

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Year Total Arab Total bilateral Trade In U.S.$ billions

Growth

2006 54 % 21

2007 63.1 % 12.7

2008 82.5 % 22.5

2009 71.1 - (% 19.6)2010 77.4 % 3.7

2011 93.9 % 19.6

Growth of Bilateral Arab Trade (*)

2006-2011 Growth of Bilateral Arab Trade (*)

2006-2011

*Source: Arab Economical Annual Report (LAS) 2012

*Source: Arab Economical Annual Report (LAS) 2012

The year of the Global financial crises The year of the Global financial crises

Growth of Arab Bilateral TradeCompared to its Capital Small Total Trade (*)

2006-2011

Growth of Arab Bilateral TradeCompared to its Capital Small Total Trade (*)

2006-2011

* Source: Arab Economical Annual Report (LAS) 2012* Source: Arab Economical Annual Report (LAS) 2012

The year of the Global financial crises The year of the Global financial crises

Year Total Trade Bilateral trade

2006 16.35 % 12.7

2007 24.4 % 12.7

2008 32.35 % 22.5

2009(*2) - (32.2) - (% 19.5)2010 17.7 % 3.7

2011 21.7 % 19.6

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Obstacles Hindering Road Transport & Arab Bilateral Trade Obstacles Hindering Road Transport & Arab Bilateral Trade

A- The legal factors: 1- Diversity of road transport regulators. 2- Differences of laws and regulations ( axle-load). 3- Lack of transparencies.

B- The Fiscal factors: 1- High taxes and fees. 2- Differences of fiscal policies and implementations. 3- Constant changes without notice.

A- The operational factors: 1- Different roads standers. 2- long and hectic border procedures.

A- The legal factors: 1- Diversity of road transport regulators. 2- Differences of laws and regulations ( axle-load). 3- Lack of transparencies.

B- The Fiscal factors: 1- High taxes and fees. 2- Differences of fiscal policies and implementations. 3- Constant changes without notice.

A- The operational factors: 1- Different roads standers. 2- long and hectic border procedures.

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Major Recommendations

Major Recommendations

1- Unification of laws and regulations.

2- Simplifying and minimizing taxes.

3- Facilitating borders crossing.

4- Increasing and improving training.

5- Improving road safety.

6- Joining international road transport agreements e.g: TIR, ADR, CMR….etc.

7-The Political will and Political influence.

1- Unification of laws and regulations.

2- Simplifying and minimizing taxes.

3- Facilitating borders crossing.

4- Increasing and improving training.

5- Improving road safety.

6- Joining international road transport agreements e.g: TIR, ADR, CMR….etc.

7-The Political will and Political influence.

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Conclusion

Conclusion

- No trade without transport.

- Trade growth and its final cost depends largely on the effectiveness of transport.- Any penalty imposed on road transport is an ever bigger penalty on the trade.

- Value of any commodity at its factory is almost zero.

- Investment in and development of transport has multiple effect.

- Any goods used or consumed by you must have used road transport.

- To develop Arab trade: adherence to International Road Transport agreements.

- No trade without transport.

- Trade growth and its final cost depends largely on the effectiveness of transport.- Any penalty imposed on road transport is an ever bigger penalty on the trade.

- Value of any commodity at its factory is almost zero.

- Investment in and development of transport has multiple effect.

- Any goods used or consumed by you must have used road transport.

- To develop Arab trade: adherence to International Road Transport agreements.

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Thank YouThank You