5th IRU Euro-Asian Road Transport  Conference

Conclusions and Declaration of the
5th IRU Euro-Asian Road Transport Conference
and Ministerial Meeting 

Speech by Jonathan Scheele
Director for Transport Logistics, Trans-European Transport Networks and Co-Modality, DG for Energy and Transport, European Commission

First of all, I would like to thank, on behalf of the European Commission and the European Union both the government of Kazakhstan and the IRU for the invitation to the conference, as well as for the excellent organisation and for your hospitality.

Safe, secure and sustainable transport systems are and will continue to be critical for economic development and recovery – in the EU and throughout the world.

This is the first time that the Commission has participated – both virtually and in person – at this annual event.  This should be seen as a signal of the strengthened interest – in Brussels and in the EU in general – in improving land transport links between the EU and South and Central Asia and the Far East.  There are a number of concrete activities under way in this respect.

Firstly, the Memorandum of Understanding the European Commission signed yesterday with the Kazakhstan Ministry of Transport and Communications takes the relationship between the European Commission and Kazakhstan in Transport to a new level in terms of dialogue, engagement and intensity;

The Memorandum will allow Kazakhstan and the European Commission, inter alia:

• To cooperate to enable gradual convergence towards operating standards and policies comparable to those in the European Union;
• To exchange experience and best practices on the development of sustainable transport policies covering all modes of transport;
• To discuss the best options for better and further connecting Kazakhstan to the Trans European Transport Networks;
• To work together on methodologies for better assessing infrastructure projects in all modes of transport;
• To identify horizontal and regulatory measures with a view to remove non-infrastructure bottlenecks, regionally and along the Western China – European Union corridor;
• To support together, by means of a stronger bilateral relationship, and more focused bilateral priorities, other regional initiatives, in particular TRACECA;
• To inform each other about latest developments in transport policy.

We are looking forward to exploring with our Kazakh partners the next concrete steps to achieve these objectives.  I hope that this will, in particular, include a real input into the EU’s thinking as we carry forward our review of infrastructure policy both inside the EU and of our links with the rest of the world.

Regarding the development of a road corridor between Western China and Europe, we are happy to see that a number of major funding decisions on road projects, particularly in Kazakhstan, have recently been taken by the International Financial Institutions. I refer in particular to the SOUTH WEST ROADS PROJECT: WESTERN EUROPE – WESTERN CHINA INTERNATIONAL TRANSIT CORRIDOR, which is an important project both for Kazakhstan and the wider Central Asia region, as well Russia, South Caucasus, Eastern Europe and the European Union itself. The World Bank has very recently approved a massive USD 2.125 billion funding package for an important stretch of this corridor, and the EBRD in late 2008 has decided to pledge USD 180 million to another important stretch. The MoU agreed between the Ministry of Transport and Communications of Kazakhstan and the International Financial Institutions (World Bank, EBRD, ADB, the Islamic Development Bank and the Japan Bank for International Cooperation) introducing a clear division of labour between all the actors and expressing quite clear funding intentions is a very useful tool, which we endorse and welcome, also for possible future emulation elsewhere in the region.

However, with regard to the viability of the entire Western China – European Union corridor, irrespective of the geographical detail of its various axes, the European Union considers that all major players along this corridor need to do their best to remove non-infrastructure related bottlenecks. However, measures are apparently in preparation in Russia  that would restrict the transport by road of containers above a certain size; if this new regulation comes into force, it will certainly not help the development of a road corridor between China and Europe (and any corridor obviously goes both ways) through Russia.  A discriminatory road tax - towards a number of EU Member States in particular – is also a hindrance to transport relations over road routes involving Russia. I mention this to underline the importance of coherent approaches to policymaking along the entire route. The EU is discussing these issues and others in the framework of our Transport Dialogue with the Russian Federation; no doubt the IRU and the other partners gathered here have also sought to address this matter with the Russian authorities.

A viable corridor cannot be built in the absence of strong regional cooperation, the only framework in which cross border bottlenecks, especially non-physical ones, can be dealt with.  The TRACECA framework, supported by the European Union, is one such regional or even multi-regional initiative.

The removal of non-infrastructure bottlenecks is more often than not a matter of political will and imagination, plus regulatory know how, rather than financial resources as such.  In Central Asia in particular, for historical reasons, infrastructure often disregards borders, so that the basis for a regional approach is already there.  We are hoping to see a revitalisation of initiatives to address such problems, and we will do our best to be catalysts in that process;
One of the messages we will take to the TRACECA IGC meeting next week in Issyk Kul, in Kyrgyzstan, is that we would like the TRACECA member states to formulate and express their options on regulatory policy and infrastructure development very clearly at the national level, and then work together, maybe also in regional sub-groups, to define regional projects which the Secretariat General in Baku can then make its priority in terms of technical assistance. The European Commission will on the one hand continue to support the Secretariat General by means of technical assistance and, when we find that possible major projects, especially cross-border, making sense in the context of the TRACECA corridor, have matured, we can then support in discussions with the major International Financial Institutions, including the European Investment Bank.

With regard to the accession of Iran to TRACECA, there is no doubt in my mind that this could be an important step towards strengthened regional cooperation in the transport sector, and even beyond.

Finally, the first meeting of Transport Ministers under the aegis of the Asia-Europe Ministerial Meeting (ASEM) will take place in Vilnius, Lithuania, on 19/20 October.  This will be an opportunity for ministers from the European Union and East and South Asia to discuss common problems and develop concrete joint actions.  There will also be an opportunity for key countries in Eastern Europe and Central Asia to join the discussions, as well as for representatives of the industry in a separate forum.

These different activities are only a beginning.  I look forward to more and to strengthened cooperation between the EU and the countries on the Silk Road, so that can fulfil its renewed destiny in the 21st Century.

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