20 Forum
09 Highlights

Transport for a Global Economy
Challenges & Opportunities in the Downturn20 Forum
09 Highlights

Transport for a Global Economy
Challenges & Opportunities in the Downturn© OECD/ITF 2009
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table of contents
INTrodUCTIoN
The International Transport Forum
A Look Back at the Forum by Jack Short
Binali Yıldırım: A Key Element of Economic Growth
Wolfgang tiefensee: A Great Opportunity to Choose the Future Direction

4
6
8
10

ChallENGEs & opporTUNITIEs IN ThE doWNTUrN
Highlights of the Keynote by Jacques Attali:
Lessons Learnt from the Crisis
Highlights of the Keynote by Ray lahood:
A Co-operative Approach
Highlights of the Keynote by Antonio tajani:
The European Response to the Crisis
Key Messages from the Ministerial Session

14
16
18
20

polICY paNEls
Transport and the Downturn – Economic Impacts
Transport and the Downturn – Social & Environmental Impacts
Supply Chains and the Gateways in Volatile Markets
Infrastructure: Public and Private Roles after the Credit Crunch
International Leaders’ Roundtable – Moving the Agenda Forward

24
30
36
40
46

Workshops
Intermodal Transport & Supply Chains – Moving the Global Economy
Social Impacts of International Transportation
Strategic Transport Infrastructure Planning & Financing
Ensuring a Secure Global Transport System
Environmental Impacts of International Transport

54
58
62
68
74

Modal Workshops
Gateway Airport Investment and Development of Airline Services
Road Transport: Promoting Global Trade, Travel and Development
Railways in a Globalised WorldInternational Shipping: Global Regulation for a Global Industry

80
86
90
96

A Focal Point of Exchange
Prize-Winners 2009
Forum Exhibition
Field Visits and Social ProgrammeInternational Transport Forum 2010 – Transport and Innovation
Alphabetic List of Speakers
Relevant ITF Publications

102
103
104
106
108
110

the international transport ForumA Worldwide Platform for transport Ministers, industry
and civil Society
A global Response to the challenges of transport
The International Transport Forum is theleading global platform and meeting place fortransport, logistics and mobility, where theTransport Ministers of 52 member countries
discuss the strategic and policy challengesof the sector with key figures from industry,
research and civil society. The engagement
and involvement of such a broad range ofactors makes the International Transport
Forum truly unique.

4

Transformed from the European Conferenceof Ministers of Transport (ECMT), theInternational Transport Forum is an intergovernmental organisation within theMember Countries

OECD family. Its members include all OECD
countries, as well as many countries inCentral and Eastern Europe, and India. In
addition, China and Brazil are being invited
to participate. The involvement of more than
50 Ministers of Transport ensures direct links
and strong relevance to policy making at bothnational and international levels. The creationof the Forum is a reflection of the need to serve
not only Ministries, but also society in general
in a more relevant and dynamic way. As ahigh level think tank for Ministers, industry,
research and civil society, the Forum has theaspiration of filling a crucial missing link intransport discussions in our society today.

Observer Countries
Invited participants

The highlight of the International Transport
Forum’s activities is its annual meeting heldin Leipzig, where key figures from politics,
industry, research and civil society are invited
to debate with Transport Ministers on a topic
of strategic importance. The conclusions of
the annual Forum meetings are expectedto act as important signals to the transport
sector and society at large.
The Organisation for Economic Co-operation
and Development (OECD) is a unique forum
where the governments of 30 democracies
work together to address the economic,
social and environmental challenges ofglobalisation. The Organisation provides asetting where governments can compare
policy experiences, seek answers to common
problems, identify good practices and work
to co-ordinate domestic and international
policies.
The OECD and the International Transport
Forum established a Joint Transport ResearchCentre in 2004. The Centre conducts cooperative research programmes addressing
all modes of transport to support policy
making in Member countries and contributeto the sessions of the International Transport
Forum.

5

Jack Short

A look Back at the Forum

Jack Short,
Secretary generalof the internationaltransport Forum(itF), Director of
the Joint oEcD/itF
transport Research
center (JtRc)

6

When we chose the theme of this year’s
Forum – Transport for a Global Economy –our key concerns included bottlenecks andcapacity limitations due to rapid economic
growth. Barely a year later, the Forum
took place at a very difficult time, in which
finance had dried up, companies were
failing, supply chains were weakened, andprotectionism was increasing. Now, there
are real fears that the transport sector
will be seriously damaged by this sudden
and profound downturn, with important
implications for economies and societies.
The depth and suddenness of the crisis
underlined the relevance of our theme.
We live in a time of unprecedented global
interdependence, which is likely to increase
further – not decrease – as a result of thefinancial and economic crisis. Globalisation
has its critics and, certainly, actions
are needed to minimise any social orenvironmental harm due to it; however, theevidence is overwhelming on the economic
benefits of exchange and trade in reducing
poverty and inequalities. This reinforces
the need for improved international
co-operation, where the transport sector,
as a key facilitator, is a central player.
The discussions this year were thus highly
topical and came at a point when all
governments and industry were struggling
with how best to respond to the crisis inboth the short and longer terms.
One certainty is that transport is more
important than it has ever been – inbusiness, in the lives of citizens and in theworld economy. The figures alone – 8% ofjobs, 15% of household spending, 6% ofvalue added – tell only part of the story.
The transport sector is at the heart ofglobalisation. Logistics and passenger
services strongly support trade andeconomic growth. Beyond that, there ishardly a global threat or challenge that does
not have a significant transport component,
whether it is mass migrations, geopoliticalconflicts, natural disasters, health threatsor piracy.
It is obvious that transport systems need
to be reliable and sustainable to support
economic recovery. In this regard, many
existing policies remain central in order toinvest where needed, improve efficiency,
reduce environmental harm and increasesafety. Transport has a strong case incompeting for stimulus funding and indeed
has been a major beneficiary in somecountries. It remains to be seen, however,whether the aims to innovate, to redesign
the system and to move to a low-carbon
economy will be achieved by these stimulus
packages.
A strong message throughout the Forumwas the need to avoid protectionism.
The discussions and background papers
underlined the benefits that the openingof markets has provided in the past, andthe risks of trade restrictions in hampering
recovery and growth. There are still many
areas in transport where considerable
new gains could be made by the further
opening of markets. The challenge now
for most Countries is to maintain thesesound principles under domestic politicalpressure.

Closely linked to this is the need for secureand reliable international supply chains tofacilitate future growth. Too often borders
and entry points are impediments to tradeor even instruments for protectionism.
Significant scope for improvements remains
in many areas of the world and both security
and efficiency benefits can be obtained
through, for example, greater use ofrisk-based procedures.
The crisis does not alter fundamental
challenges, particularly for transport to be
more sustainable. The need for transport to
reduce its greenhouse gas emissions – andhow this might happen – was the subject of the2008 Forum, and was central to discussions
at the 2009 Forum. All modes will need tomake progress, though there is still sharp
debate on the most effective methods within
and between modes. Undoubtedly transport
needs to show more concrete results in thelead up to and after the December 2009 UN
Climate Change Conference in Copenhagen.
The transport sector can assist the global
economic recovery by increasing its
efficiency and here there is much work to
be done to help the sector itself overcome
the results of the downturn, as well as tooptimise its contributions to economies andsocieties. Given the degree of mutual relianceat the global level, improved international
co-operation will be essential.
The International Transport Forum, in thissecond year, has taken important strides
in its aim to become the global strategic
meeting place for the transport sector. As
well as the many Ministers and high level

delegates from the more than 50 Members,
India became a full member of the Forumand there was a strong Chinese presence inLeipzig. The Forum once again attracted over
900 participants, including many leading
decision-makers and thinkers from thetransport sector and beyond. The outputs
from the Forum are included or summarised
here. They include the Ministerial politicalstatement, some reflections from theSecretariat, the conclusions of the various
panels and workshops, as well as thescientific studies and background papers
for the event. The web site contains all thismaterial which provides a rich collection of
information on the topic.
Many participants in 2009 argued thatthe solutions to the major challenges of thetransport sector – including climate change,
efficiency, safety, security and accessibility –will require seeking out new ways of providing
services and infrastructure. That is why thetheme of next year’s Forum – Transport andInnovation – is so exciting and important.
Turkey has held the presidency of theForum this year and sincere thanks go to
Binali Yıldırım, Minister of Transport of the
Republic of Turkey, and his staff, for theirtireless efforts over the year. The dynamic
support of Germany, especially the active
involvement of Minister Tiefensee, but also
the city of Leipzig and Lord Mayor Burkhard
Jung have been enormously helpful indriving the Forum forward. Sincere thanks
as well go to the Member Countries and their
Ministers for their continuing support andinvolvement in the preparations and runningof the Forum.

7

Binali Yıldırım

A Key Element of Economic Growth

Binali Yıldırım,Minister ofTransport of Turkey,
President of the2009 International
Transport Forum

8

Globalisation of production and trade isamong the defining characteristics of ourera. The scale of economic activity is justas impressive as the speed of technologicaldevelopment, and lower production costs andhigher productivity have contributed to thecreation of greater wealth today than everbefore.
Without a doubt, transport is an indispensable
part of this process. It provides vital
distribution for production, as well as essential
personal mobility, directly interconnecting
businesses to worldwide markets. Transport
is a key element of economic growth andcompetitiveness.
Thus, the 2009 International Transport
Forum, focusing on “Transport for a Global
Economy – Challenges and Opportunities inthe Downturn”, was held at a crucial momentin history, characterised by great challenges.
Transport itself has been heavily affectedby the global financial crisis. A contracting
global economy, frozen credit and increased
operating costs have led to economic
difficulties and job losses across the sector.
Companies are struggling to survive withlimited financial resources in an environment
where global trade is shrinking.
We, the Members of the International
Transport Forum, should learn from thecurrent crisis, and provide guidance toour sector in designing and implementing
necessary measures to overcome the current
difficulties and emerge stronger.
Domestic demand must be sustained toensure the crisis does not deepen. Investment

9in infrastructure to stimulate the economy
and create jobs has a vital role in responding
to the downturn. Many countries, including
the developing ones, have put in place stimulus
packages to support infrastructure projects.
We should also look beyond short-term
measures. Long-term goals are vital, precisely
because of the recession. For example, it is
crucial that the public and private sectors work
together to ensure the existence of a modern,sustainable and efficient transport sector totake advantage of the upturn when it comes.
The crisis should also underscore theimportance of greater international
co-operation. I truly believe all of us areready to make a combined effort to restore
confidence and make our sector lessvulnerable. International planning should

focus on global transport accessibility andconnections. At the top of the agenda shouldbe the simplification and harmonisation ofprocesses at border crossings.
We must all share responsibility for preventing
the deepening of the recession. This Forum –and indeed the 2009 meeting – has alreadyplayed a key role.
The International Transport Forum is aunique international platform for addressing
the major issues related to transport. In
its capacity as President of the second
International Transport Forum, Turkey isconfident that the 2009 Forum has provided
strong outcomes with regard to maintaining
international transport activities andensuring that the sector continues to fuel the
dynamism of the global economy.

Wolfgang tiefensee

A great opportunity to choose
the Future Direction

Wolfgang tiefensee,
Federal Minister oftransport,
Building and Urban
Affairs, germany

10

The second ITF took place against the
backdrop of the global financial andeconomic crisis. “Globalisation” had been
selected as a subject to be discussed at thisyear’s ITF long before the first signs of thecredit crunch in the US became visible, but
due to economic developments in the world
this subject acquired a new urgency.
In the past decades globalisation was mainly
seen as a factor for economic growth.
However, during the crisis, another side of thedevelopment became more apparent: Due tothe mutual dependence of the markets, thecrisis hit national economies everywhere andled to declining economic performance and aconsiderable reduction of growth.
At the ITF in Leipzig, more than 900
participants from around 50 states
discussed this situation and its relevance forthe transport sector but they also discussed
chances and opportunities arising fromthe crisis. It was particularly important tohighlight the contribution that transport canmake to a globalised world economy.
The global economic crisis must not be used
as a pretext for protectionism with the aim ofclosing off markets. Economic recovery is only
possible with free trade and fair competition.
Protectionist measures always rebound on
business and the workforce at home. Thus,
the discussions at the ITF made it veryclear that economic integration can only be
supported by co-operative behaviour of all
stakeholders. The ITF is headed in the right
direction, establishing itself as an importantinternational Forum for discussing solutions
to problems of global relevance.

In the fora and panels and also during
the numerous bilateral discussions on
the sidelines, many nations, including
Germany, confirmed that the economic
recovery packages were the right solution
for safeguarding as many jobs as possible
and paving the way for long-term economic
growth. The green shoots of economic
recovery confirm this. The considerable
financial efforts are at the same time a great
opportunity to choose the future direction of
the economy and the transport sector.
But at the same time, investment ininfrastructure must not just be a flash in
the pan. We must continue our investment
even after the crisis has ended. Because an
efficient global infrastructure, and a moderntransport system are a crucial precondition
for a lasting economic recovery.
And consumers have shown that energyefficient, green cars have good market
opportunities, even in times of economic
recession. Those who are involved in thedevelopment and commercialisation, will
also prevail in global competition.
Businesses are thus called-upon to continue
investing in sophisticated environmental
technologies and in the skills of theiremployees, even in times of economic
difficulty. A competition for innovationand environmentally and climate-friendly
products is needed. This requires specific,
targeted investment in new technologies
like electric mobility, supported by a clearcut strategy for the mobility of the future.
Public and private sectors alike are calledupon to ensure that industry and transportcan emerge from this presently difficult
phase stronger than before.
Against this background, the entire
spectrum of “Transport and Innovation” willbe the subject of intensive discussions at thethird ITF, which will take place from 25-28
May 2010.
I am very glad that in 2010 transportministers will come to Leipzig again to
successfully support the ITF as the world’s

most important platform for discussions
in the transport sector. After India joined
the set of ITF member states this year, weeagerly await other interested states like
Brazil and China to join us in the future.
Ministers of Transport, government
representatives from 52 states andindustry, scientific and research luminaries
will meet in Leipzig and from there they willcontinue to jointly shape the future a little
more.

11

transport fora global Economy
challenges & opportunities in the Downturnhighlights of the Keynote by Jacques Attali

lessons learnt from the crisis

Jacques Attali,
Economist and Writer

14

Transportation is one of the aspects where
economic progress has made itself most
palpable. Transport is a growth factor but
it also has a curbing impact, it strongly
affects the environment. Currently,
transportation is a key to understand theeconomic and financial crisis. I tend to berather pessimistic when being asked about
the crisis and its prospective duration. I
believe it is just beginning. It certainly shows
various mechanisms taking place on threedifferent levels.
First, let us consider the United States andthe many intricate links between the loan,banking, real estate and automobile andother consumer industries. The excessive
growth of lending capital and taking badloans on real estate, for example, was thefirst mechanism. This, in turn, resulted in
the development of a second mechanism, thecreation of loan pools by banks with extreme
profits – but clearly understated risks. The
third mechanism was the fact that – on a
local level – there was no real regulationor control of these developments. Europe,by contrast, has created a common market
with regulations in the past 30 years. This iswhat the world needs today: a single market
with one set of regulations. We do not only
need the legal stipulations, but we also needto enforce their compliance.
We may very well not be witnessing the endof the current crisis. We see mixed signals some major downturns, but economic growthin some other sectors. Financial markets areundergoing a restructuring process, withexchange prices rising and some countries
even seeing growth rates again. We haveseen a major downturn: minus 60 to 70% in
economic growth in some sectors. However,the financial sectors have undergone
restructuring, exchange prices are rising,some countries, like China, are starting tosee growth rates again. Billions and billions
have been spent, banks can return tooffering liquidity and take out loans. Thereis a certain economic dynamism that is
showing itself again and I would really hopethat this recovery was here to stay.
But what about the cash flow of banks. Is
it sustainable? What about the budgets ofthe major countries and the liquidities andcash flow if it is not? The current recovery
may well not be sustainable. And what about
trust in currencies and budgets? The global
deficit is currently exploding; there areexcessive debts everywhere, but we knowthat the crisis can only be overcome if wecall back our debts.
Bearing these questions in mind, it is notentirely clear whether we will be able toextricate ourselves from this crisis orwhether – due to its magnitude – we will
resolve it at all.
There are three scenarios worth looking
at. First of all: we may assume that there
is a deepening of the crisis; that we will beplunged even deeper into a recession; thatthe global economy will continue to create
zero or even negative growth rates. In
a second scenario, the heavy borrowing
simply continues, as will debts – with all
the negative long-term repercussions.
Thirdly, we may see another growth periodwith high saving rates, high degree ofsavings deposits, always assuming that
we have high growth rates again – despite
occasional volatility.

But these rules where not complied with. So
we certainly need to improve complianceand to enforce accountability.

As Europeans, we have learned our lessons
from history. We understand that weneed to balance our budgets, set rules
and regulations to overcome deficits. We
understand that we do need taxes andregulations – not more but better ones.
After all, we have got regulation in place; wehave the Basel capital accord. But Basel is
not applied accordingly. Banks solvency, forexample, was regulated in the Basel accord.
Basel said that the debt ratio must not exceed
the factor of 12 of the deposit in your bank.

If there is a lesson to be learnt from thefinancial crisis for our future it is the factthat unregulated markets will pose a real
problem once we face challenges on an evenlarger scale – climate change, for example.
Therefore I believe history is going torepeat itself unless we learn the lessons. For
transportation in the crisis this means that
we need common rules on a global scale, andalso need new transport proposals that arecompatible with tomorrow’s challenges.

15highlights of the Keynote by Ray lahood

A co-operative Approach
As we all know, we are facing a number ofserious challenges around the world. For
instance, the global credit crunch makes
it difficult for all of us to sustain ourinvestments in the transport infrastructurethat we depend on to move people and goods
around the world.
Ray lahood,
U.S. Secretary oftransportation

16

The way forward is through cooperative
agreements on research and technology,
mutually enforced standards to enhance
security and environmental practices in
the global supply chain, effective guidance
and training to help the maritime industry
combat piracy and a continuing commitment
to opening our borders to free trade. Thisis only the beginning. Achieving these goals
will not be easy. And we will not agree on
everything. But we are inter-dependent –now more than ever. Our economic ups anddowns ripple across the continents.
Our decisions on energy policy and fuelefficiency affect market prices for oil – andthe rate of climate change. As President
Obama said recently: “The history of a nation
is not about things coming easy. It’s about
rising to the moment when the moment ishard, converting crisis into opportunity, andseeing to it that we emerge from whatevertrials we face stronger than we were before.”economic development at home, and ourparticipation in international trade abroad.
The American Recovery and Reinvestment
Act, which President Obama signed into law
three months ago, is a ground-breaking,787-billion-dollar effort to stimulate theU.S. economy through targeted short-term
investments in infrastructure, energy, tax
relief, and other vital areas. The Recovery
Act awarded 48 billion dollars to the U.S.
Department of Transportation for new
investments in roads, bridges, transit
systems, seaports, airports, and othercritical infrastructure. This is a remarkableand historic effort, and we’re managing itwith great efficiency.
As a result of our efforts, the Recovery Act
has so far succeeded in pumping nearly
13 billion dollars in transportation funding
directly into our economy, with billions
more to follow. These federal funds allow
all 50 states to make much-needed repairs
and upgrades to roads, bridges, transit
systems, port facilities, airport runways
and more. A portion of the funds support
cleaner, greener transit vehicles that reducegreenhouse gas emissions.

I believe all of us here today share thiscommitment. This forum is an excellent
place to carry on this work.

These are investments that most states
simply cannot afford to make on their own due
to budget cuts. So the federal governmentis truly stimulating local economies – andsaving or creating thousands of good paying
jobs. Many of those jobs are “green” jobs.

In the United States, we are responding toour challenges with short- and long-term
strategies to ensure that our transportsystems continue to play a vital role in our

The Recovery Act also breaks new groundfor America, in the area of high-speed
and passenger rail. President Obama hascommitted more than eight billion dollars tonew and revitalised passenger rail corridors
across the country. This is by far the largest
single federal investment in passenger railin our nation’s history.

We’re also expediting critical port development
projects to help freight flow more easily. And weare investing a hundred million dollars to enhancesmall shipyards under the Recovery Act.

Looking ahead, we recognise that the U.S.
must do even more to develop a diverse,
environmentally sustainable, multi-modaltransportation network to keep our
economy moving and make our communities
more liveable.

In aviation, our top priority is our NextGen
program, which will modernise and transform
our air traffic control system for the 21st
century. NextGen is needed to make aviationsafer, more efficient – and environmentally
sustainable. Ambitious energy goals to
reduce emissions and noise pollution are amajor part of this effort. But as we know,
our environmental issues do not stop at ourborders. That is why it’s good to see that theEuropean Community has made progress on
SESAR – the counterpart to NextGen.

The President recently announced plans
to substantially reduce greenhouse gas
emissions and raise fuel economy standards
for passenger cars and light duty trucks,
beginning in model year 2012. This is aserious push to make transportation muchcleaner and greener in the United States.
In the freight rail industry, we are in theprocess of developing new national freighttransportation corridors that will help us
make better use of trucks, barges, and rails
across North America.

The United States, Europe, and Asia must
set an example by fighting climate change
effectively, and setting the pace for leadershipand innovation in all modes of transportation.
Let us work together to enhance thoseconnections, and use transportation to unite
our nations in peace and prosperity.

17

highlights of the Keynote by Antonio tajani

the European Response to the crisis

Antonio tajani,
Vice-President,
European commission

18

No one can deny the direct connection
between the financial crisis and transport.
All operators are facing the same issues;
the crisis has had its impact on every sector.
The demand for transport, especially in thefreight sector, has declined dramatically;
prices are falling while the cost of
infrastructure use is increasing.
However, the ability to transport our goods
quickly and efficiently is a prerequisite
for growth. Ever since the beginning of thecrisis, I have said that we need to respond byinvesting in transport and infrastructure,
an area that represents 10% of jobs in
Europe. But of course, this is not enough.
We must also anticipate future capacities
and increase European competitiveness inthe sector.
All of us here share the belief that transport
is a key sector of the economy. That is why
investment in transport infrastructureranks so high in the economic stimulus
packages that European countries intend
to implement. We need to focus and we needto make those infrastructure investments,
both for projects that are already in thepipeline or under construction, and for
future ones.
Nevertheless, I also strongly believethat this crisis is also an opportunity –if we follow a co-ordinated strategy at
operational, financial and political level. As
this is a global crisis, we should not act in a
protectionist manner; we shouldn’t create a
fortress around us. Coordinated strategies
can’t simply stop at the borders of theEuropean Union. We should look beyond

that and also cover the Mediterraneancountries beyond the EU, the countries on
our eastern borders of the EU and also
Africa.
48 billion dollars are expended forinfrastructure in the US, a spectacularamount; much more than we spend here.
But let’s evaluate what we have beenable to mobilise in our European budget,whether by the communitarian budget
or the European Investment Bank, andalso look at the considerable investmentson the member state level. We have theEuropean Union’s Stability and Growth
pact, to address the immediate crisis.
We are trying to be a catalyst forinvestment, helping the financial market
and companies. This is why we increased
the capital of the European Investment
Bank and initiated the Marguerite 2020
European fund for energy, climate change
and infrastructure, which will invest in
member states’ environmental, energy andtransport infrastructures. Of course, we
also encourage the private sector to get
involved, for example through PPPs.
In the year 2009 we have been able toallocate 500 million Euros for shovel-readyprojects on the Trans-European transport
network (TEN-T), whose leverage on publicfinances is estimated at 5 billion euros.
In addition, the annual and multi-annual
budget for TEN-T foresees 500 million
Euros for 2009.
In this context, the Commission this year
has committed to a revision of the TEN-T
policy. For this, we proposed a Community-

wide approach, based on a truly European
and multimodal plan. This will allow for an
intelligent management of transport flows,for example through the widespread useof intelligent traffic management systems
and ERTMS.
That said, for the revision of the TEN-T
policy to succeed, it will be necessary tomobilise more resources, on the national
and European level, from public as wellas private sources. We are co-operatingclosely with the European Investment Bankon this.

I am convinced that this crisis represents
an opportunity for the sector. I think we
can no longer afford to procrastinate.
It must be recognised once for all thatinvestment in transport is an importantmeans to foster economic growth. Finally,in the long term, transport has to be
assigned its rightful place in the Statebudget and states should continue tocoordinate their resources.
The crisis calls for a global response. The
European Community stands ready toassume its role.

19Key Messages from the
Ministerial Session
is a crucial prerequisite for a successful
economy and social well-being. Transport
investment can form an important part ofwell designed stimulus packages provided
it is properly prioritised on the basis ofa rigorous evaluation, capable of being
quickly implemented and contributes tosustainability objectives.

20

Transport Ministers met with industry
stakeholders, research and civil society
representatives at the 2009 International
Transport Forum: transport for a global
Economy – challenges and opportunities
in the Downturn. Key Messages emerging
from the Ministerial discussion emphasised
the importance of:• efficient transport systems and soundinvestments;• maintaining progress towards open
markets;• addressing unintended environmental
and social consequences of globalisation;• finding adequate funds for transport andprioritising scarce resources;• reliable and secure supply chains.
An efficient global transport system willplay a significant role in the economic
recovery. Ministers expressed concern
about how severely the transport sector has
been affected by the downturn in the global
economy. They underlined how transport

Trade and open markets are keys to global
recovery. Protectionist measures are not asustainable solution. Where markets havebeen opened, there have been substantial
benefits to economies and citizens. The
current economic downturn will notreverse the underlying trend to increased
globalisation and international division oflabour. The process of market opening andcompetition needs to be continued, while
addressing equity and improving quality,
safety and environmental standards.
Economic recovery in the transport sector
should be environmentally sustainable.
Agreement at the UN Climate Change
Conference (COP15) in Copenhagen and inother organisations such as IMO and ICAO,
should enhance international actions for the
mitigation of transport emissions, and buildon the conclusions of the 2008 International
Transport Forum. Governments working
together can promote cost-effective low
carbon sustainable transport that meetsthe challenges of the future and the needs ofcitizens, business and the global community.
It is necessary to secure a high levelof long-term investment in transport.
Whilstacknowledging
governments’
responsibility in planning and financing

transport infrastructure, the importanceof private investment and public privatepartnership was endorsed. Sound analysis
should underpin investments in the global
transport system, with a solid evidence baseto support decision-making.
International supply chains need to be
secure and reliable. Co-ordinated and riskbased regulation is vital to ensure that
economic and security benefits are achievedin a cost-effective and equitable way.
Improving border crossing has significant
potential to improve efficiency and facilitate
trade. Ministers are determined to continue
to work together internationally. The ITF

will provide an important forum for thisengagement. These challenging times
present a window of opportunity to rethink,
to review and to reform policies, systems
and technologies to stimulate development
towards a sustainable and more effective
global transport system. Innovation will bea key to success, and Ministers agreed thatit should be the central topic for the 2010
Forum.

Background reports from experts and the Secretariat
are available from the ITF website
http://www.internationaltransportforum.org

21

22

Policy Panels

23

Anthony Albanese
Minister for Infrastructure, Transport,
Regional Development and Local
Government, Australia

camiel Eurlings
Minister of Transport, Public Works andWater Management, Netherlands

Rüdiger grube
CEO, Deutsche Bahn AG

Joachim hunold
CEO, Air Berlin

24
candan Karlıtekin
CEO, Turkish Airlinesleif Östling
CEO, Scania

John Rice
Vice Chairman, General Electric

Wolfgang tiefensee
Federal Minister of Transport, Building and
Urban Affairs, Germany

Ronald Widdows
CEO, Neptune Orient Lines

25
Rapporteur:

Anthony Venables
Professor of Economics, Centre for Analysis
of Resource Rich Economies, Oxford
University, UK

Policy Panel 1, Session 1:

transport and the Downturn
Economic impacts

Policy Panel 1, Session 1:

transport and the Downturn
Economic impacts
The global economic crisis has reduced theflow of passengers and goods worldwide,
thereby placing severe constraints on many
manufacturers, transport operators andfacilities. In turn, this has had consequences
for the many millions who work in, anddepend on, the transport sector.
“Reverting toprotectionism would be
totally, totally wrong.”
Rüdiger grube,
Deutsche Bahn

26

In the panel’s first session, on “Economic
Impacts”, Ministers, CEOs and high-level
experts discussed how plummeting demand,fluctuating fuel prices and liquidity issues
are affecting global business. In thissession, panellists also considered what
national governments and internationalorganisations can and should do to help
mitigate the impacts of the crisis on the
sector and stimulate economic recovery.
A second session then shifted focus to the“Social and Environmental Impacts” of thedownturn, considering the measures needed
to deal with the social consequences of theeconomic downturn and how environmental
goals can be met even in time of economic
constraints.

EconoMic iMPActS“Integrating thedifferent modesof transport more
efficiently will makeit possible to beeconomically efficientand environmentallyfriendly.”
Wolfgang tiefensee,
german Ministerof transport

The transport sector has suffered heavily
as a result of the global economic crisis.
With ailing global financial markets, several
panellists noted that credit is lacking for
maintenance and for the development of new
infrastructure and equipment in all modes oftransport. A newly emerged “nationalism” inbanking has restricted availability of financing
for transport in a number of countries. Lackof liquidity remains a problem for financing
transport system improvements.

The session concluded that international
co-operation would pave the way forrecovery, with greater accessibility andimproved connections between markets andacross transport modes forming the vision
for success in the future.
globalisation and investment in researchand development remain the way
forwardGlobalisation should not be reversed in
response to the crisis, said Rüdiger grube,
CEO of Deutsche Bahn. The crisis should
be viewed as an opportunity to invest in
research and development. In this respect,
he conceded, the automotive industry issignificantly ahead of the rail industry.
Developments have to take account of theimportance of the environment, Mr Grube
said, with efficient and fair conditions forinvestment for rail as well as the automotive
industry. Wolfgang tiefensee, the German
Minister of Transport, supported this view,
stating that we need to improve the modal
share, putting more goods onto rail andwaterways.
Maritime shipping weathers changes intrade flows; a different ‘world order’to follow the crisis
The shipping industry is implicitly linked tothe economy, and tends to experience theimpacts of economic fluctuations before otherareas of the sector, said Ron Widdows, CEO of
Neptune Orient Lines. Several factors werealready contributing to a sectoral downturn
when the crisis hit, including a maturing in offshore manufacturing with a corresponding
gradual decline in direct foreign investment.

Moderator:
Melinda Crane,
Moderator,
International
Broadcaster and
Journalist

Mr Widdows noted that there had been signsof a cyclical downturn in container shipping
prior to the crisis, and that the precipitous
drops in demand and tightening of liquidity
in the financial markets during the crisis had
exacerbated this. In addition, for some time,
there had been “irresponsible investment” –excessive ordering of new ships – which has
led to excess capacity. The current lack ofliquidity in markets will thus not necessarily
be detrimental to the shipping sector,
because new investments are not presently
needed in the sector.
Job creation and investment in infrastructure are now likely to take place in arobust way, opening access to lower labourcosts in, for example, China. When there is
economic recovery, the world will not returnto the way it was, Mr Widdows predicted.
Growth rates in maturing countries will beless than previously seen, and there will bemuch more domestic growth in India andChina. In turn, this will have a significant
impact on trade flows.
Airlines – adapting the business model
Airlines are restructuring and revising theirbusiness models to adjust to the effects of theeconomic crisis and the excess capacity thathas emerged in the sector over many yearsof relatively easy credit and proliferationof market players. This means, for instance,
reconfiguring available products to better
correspond to the price the passenger is willingto pay. It also means concentrating on corebusiness activities (e.g., less on-board duty-freesales) with fewer cross-subsidies, according tocandan Karlıtekin, CEO, Turkish Airlines.

Joachim hunold, CEO of Air Berlin, concurred
that, in times of crisis, markets tend to
consolidate, with capacity having to beadapted. These are circumstances that theairlines have managed well in the past, he
noted, provided the appropriate market
conditions and frameworks have been in place.
Panellists called for a new set of global
market conditions in order to facilitate
efficient functioning of the sector. There was
general agreement among panel membersthat global policy responses are requiredfor global problems – emissions trading inaviation was cited as one example of this.
A single international sky in terms ofregulation and air traffic management isessential for the airline industry, asserted
Minister Tiefensee. Anthony Albanese,
Australia’s Minister for Infrastructure,
Transport, Regional Development and Local
Government, echoed this point, highlighting
the need for a global single sky, without
which distortions would emerge and put the27Southern Hemisphere at a disadvantage,
particularly if emissions trading were totarget the first point of landing.

“The big danger isprotectionism.”
John Rice,general Electric

Joachim Hunold also supported the need fora single sky, noting that 47 different control
centres exist in Europe, whereas in the UnitedStates there is only one. This means, heexplained, flights do not always take directroutes in Europe, therefore contributing tohigher costs and carbon emissions.
Decline in demand in the automotive
industry28“We need tobreak the nexus
between the political
cycle and theinvestment cycle.”
Anthony Albanese,
Minister for
infrastructure,transport, Regional
Development andlocal government

Reflecting on the impact of the crisis inroad transport, Leif Östling, CEO of Scania,
confirmed that business in the first quarterhad declined by 90% compared with thefirst quarter of 2008. For equipment
manufacturers, the economic crisis has
dealt a heavy blow, he said.
As a result of the credit crunch, small
and medium-sized enterprises in roadtransport are struggling in particular tofinance maintenance of working capital. In
addition, the average age of vehicle fleetsis increasing by 2 – 2.5 years, producing
higher emissions and greater safety risk.
Moreover, product development costs
are rising as a proportion of sales, withdrastically reduced demand and lower
sales volumes.
A role for government – stimulus
packages need to preserve open markets,consider longer term objectives
Stimulus packages are designed topreserve the job market, emphasised John
Rice, Vice Chairman of General Electric.

Although there are signs emerging of theeffectiveness of stimulus programmes inmeeting this objective, the danger is thatthese programmes can go beyond theireconomic stimulus objective and become
protectionist in nature, as language
regarding the allocation of stimulus funds
would suggest in some cases.
camiel Eurlings, Minister of Transport,
Public Works and Water Management for
The Netherlands, echoed this concern,
calling for stimulus packages that were“timely, temporary and targeted”, andnoting the need to remain vigilant withregard to growing public deficits.
Maintaining balance in the stimulus
package
Minister Albanese outlined the Australian
response to the crisis, with stimulus
funding focusing on road and rail
infrastructure. Although it is easy tobring forward road, as opposed to rail
projects, he said, policy-makers should not
repeat mistakes that have led to a market
distortion through failure to invest in
productivity.
Minister Albanese highlighted the tension
in investment decision-making between
short-term (3- to 4-year) politicaldecisions taken in response to popularpressure, and longer-term infrastructure
investment cycles of 10 years or more.
By definition, investments in infrastructure will yield benefits in the longer
term. Therefore, investment decisions
that deal with the immediate need tocreate jobs should also consider longerterm objectives, such as the mitigation ofclimate change.
Minister Eurlings highlighted the needto ensure increased efficiency in transport
operations by reducing bureaucracy
in investment decision-making andadministrative procedures at bordercrossings.
need for co-ordinated action
Panellists agreed that working together
across national boundaries – especially on

innovation (e.g., electric vehicles) and climatechange mitigation – is essential. In particular,international solutions are needed in aviation
emissions trading, as are fiscal incentives tosupport innovation.
Governments need to work together
for equitable market conditions amongmodes, panellists agreed. And perhaps
most importantly, countries must ensurethat markets remain open – especially inthis time of economic hardship. Market
entry barriers need to come down in roadtransport, as well as in both passenger andfreight rail markets.

”Stimulus packages forthe short-term have tobe timely, temporary
and targeted.”
camiel Eurlings,
Minister of transport,
netherlands

29Peter Bakker
CEO, TNT

george Dragnich
Executive Director for Social Dialogue,
International Labour Organization

christian FelberSpeaker, Attac Austria

Stelios haji-ioannou
President, easyGroup PLC

30

geoff hoon
Secretary of State for Transport, UK

Moritz leuenberger
Federal Councillor, Head of the Federal
Department of Environment, Transport,
Energy and Communications, Switzerland

graham Smith
Senior Vice President, Toyota Motor Europe

Rapporteur:

Anthony Venables
Professor of Economics, Centre for Analysis
of Resource Rich Economies, Oxford
University, UK

31

Policy Panel 1, Session 2:

transport and the Downturn
Social and Environmental impacts

Policy Panel 1, Session 2:

transport and the Downturn
Social and Environmental impacts
The global economic crisis has reduced theflow of passengers and goods worldwide,
thereby placing severe constraints on many
manufacturers, transport operators andfacilities. In turn, this has had consequences
for the many millions who work in, anddepend on. the transport sector.
In the panel’s first session, on “Economic
Impacts”, Ministers, CEOs and high-level
experts discussed how plummeting demand,fluctuating fuel prices and liquidity issues
are affecting global business. Panellists also
considered what national governments andinternational organisations can and should
do to help mitigate the impacts of the crisis on
the sector and stimulate economic recovery.

32

In this second session, the panellists shiftedfocus to the “Social and Environmental
Impacts” of the downturn, considering themeasures needed to deal with the social
consequences of the economic downturnand how environmental goals can be met
even in time of economic constraint.

SociAl AnD
EnViRonMEntAl iMPActS“We cannot use thedownturn as an
excuse for avoiding
the adjustment to an
economy thatwill have afundamentallydifferent basis: that isthe challenge ofclimate change.”
geoff hoon, UK
Minister of transport

Transport energy use and carbon emissions
are projected to be about 80% higher
than current levels by 2030. As Rajendra
Pachauri, Nobel-Prize-winning Chairmanof the International Panel on Climate
Change, pointed out in his keynote address
at the 2008 International Transport Forum,
continued GHG emissions at or above current
levels would cause further warming andinduce many changes in the global climate
system during the 21st century that would

very likely be more extensive than thoseobserved during the 20th century, with
implications for people around the world.
Complicating efforts to mitigate CO2
emissions within the transport sector is thecurrent economic and financial crisis, which
has taken a major toll on transport sector
activity: the road sector in the European
Union alone, for example, has seen 140 000
jobs lost due to the crisis.
the environmental challenge
Policy-makers currently face particularly
difficult choices as they try to balanceModerator:
Melinda Crane,
Moderator,
International
Broadcaster and
Journalist

short-term crisis management with longterm sustainability goals. This second
session of the Minister-Industry paneloffered an opportunity to discuss options
for the transport sector to seek economic
recovery, and at the same time pursue
longer-term social and environmental goals.
Can the sector continue to pursue cleaner
and greener transport while at the sametime preserving jobs?
Facing the threat of climate change
While all panellists agreed on the urgent
need to find solutions to the climate change
problem, their views differed as to how toapproach this challenge.
green technology
Some, like Minister geoff hoon, expressed
the hope that carbon emissions reduction
targets could be satisfied mainly with thehelp of innovative technology, such as new
materials for aircraft and engines, andby seeking more efficient ways of moving
goods and passengers around the world.
Major players in the sector are alreadypursuing efficiency gains in theiroperations by deploying innovativetechnology. According to Peter Bakker,
CEO of TNT, for example, all urban deliveries
should go 100% electric within the next
five years, while biodiesel should be used
exclusively for long-haul road transport.
He expressed his wish for TNT to become
the first company to reach these goals andcalled for stronger regulatory incentives
to do so.

But Mr Bakker warned of investing too muchhope in new technology. He also called for amore fundamental change: whole businessmodels have to be rethought and global
supply chains need to be redesigned, he said.
To underline the importance of this point, he
explained that TNT’s two Boeing 747 aircraft– that make nine rotations per week between
Europe and China, often flying nearly empty
to China and coming back fully loaded– produce more CO2 emissions than thecompany’s entire fleet of road vehicles, which
consists of about 30 000 vans and trucks.
All panellists highlighted the need for arigorous, effective policy framework toaddress climate change. Minister Hoonstressed that the transport sector and its
policy-makers – especially the Transport
Ministers need to set their own CO2 reduction
objectives. This is the only way to prevent
others from setting these targets for them,which could lead to unrealistic demands on
the sector.

“If we don’t change thesystem – don’t change
everything – thenwe are not going to
make it.”Peter Bakker, tnt

33

A dissenting stand on the crisis andglobalisation
christian Felber, a representative of the antiglobalisation movement Attac, presented hisview of the current crisis and what needs tobe done about it.
Mr Felber refuted the notion that globalisation
carries with it economic and societal benefits
and argued that more trade requires moretransport, which leads to an ever-higher
consumption of natural resources.
Mr Felber highlighted that only about 3% of
the world’s population has ever set foot in“In my view, we should
not be talking about
how to lower the cost oftransport, but how toincrease it.”christian Felber, Attac

“A tax paid by thosecountries that are
responsible for highCO2-emissions can beused to compensate thecountries that are
most impacted.”
Moritz leuenberger,
Minister of transport,
Switzerland

34

an aircraft; he warned that if the other 97%
were to take up air travel, climate change
would be accelerated by a factor of 4 or
5. He suggested that all the economic andsocial damage that transport causes should
be factored into the cost of transport, thus
making transport much more expensive than
it is today. This, in turn, would strengthen therole of sustainable regional and local markets.
“First establish human rights, labour, social,environmental, health and tax standards,
then trade”, Mr Felber said.
Social impacts and the benefits ofglobalisation
In response to Mr Felber’s remarks, theother panellists evoked the benefits ofglobalisation, not only for industrialised
economies, but around the world. Several
panellists called attention to the benefits ofa globalised economy for poverty reduction.
Citing development in China, george
Dragnich, Executive Director of theInternational Labour Organisation (ILO),
warned that without global trade, there
would be a dramatic drop in employment
all over the world. Echoing this perspective,
UK Minister Hoon noted that the regularflights carrying fresh produce from Africa
to Europe facilitate an important sourceof employment and income for many
Africans. According to Anthony Venables,
Oxford University Professor of Economics
and Rapporteur of the session, Africa has
still to see the kind of transformationthat the pre-crisis wave of globalisation
has induced in countries such as China
and India. Commenting on the general
problem of social imbalance between

industrialised and developing countries, Mr
Dragnich observed that large multinational
companies are increasingly willing torespect the tenets of Corporate Social
Responsibility. This implies, according
to a commonly cited definition by theWorld Business Council for Sustainable
Development, a continuing commitment bybusiness to behave ethically and contributeto economic development while improving
the quality of life of the workforce and theirfamilies, as well as of the local communityand society at large. Mr Dragnich pointed
out that international labour standards
as set by the ILO are helping to prevent
certain countries from gaining unfair tradeadvantages by undercutting standards. At
the same time, universally acknowledged
labour standards cannot be used as tradebarriers.
Addressing Mr Felber’s critical view ofpassenger air travel, Mr Dragnich argued
that, even though it may be that only 3%of the world’s population fly, the remaining
97% could nevertheless benefit from air
travel. He cited tourism – a labour-intensive
industry, which is often the largest single
employer in developing countries. Stelios
haji-ioannou, Chairman of easyGroup,
echoed the benefits of travel, citing the links
it creates between peoples and nations andthe enhanced understanding it promotes.
Peter Bakker of TNT called for aneffective policy framework to address
climate change. “The real stress test for
Copenhagen will be if we can come up
with a price for carbon and an accounting
system behind this which will incentivise

the leaders in the business community toreally clean up their act.”

problem by showing genuine leadershipand setting their own standards.

Swiss Minister of Transport Moritz
leuenberger emphasised the importanceof the “polluter-pays principle”, including
the use of revenues generated to mitigate
and compensate for resulting damages, aswell as providing an incentive to reduce CO2
emissions. Professor Venables remarked
that, whilst a global programme to mitigate
climate change would be best, a start has
to be made somewhere. Citing Voltaire, hewarned that the best should not become
the enemy of the good. He remindedtransport policy-makers and other sector
stakeholders in attendance of their
responsibility to get the ball rolling andcalled on them to tackle the climate change

the Power of the consumer
graham Smith, Senior Vice President,
Toyota Europe, reported that whilst Toyota
is very pleased to see that policy-makers
are encouraging an increase in use ofgreener technologies in the automotive
sector, additional regulatory incentives
could help to move environmental concerns
up the list of consumer priorities. As forthe social imperatives in this context, heemphasised that use of new technologies
and the downsizing of cars should not
result in reduced levels of employment.
“Sustainability for us includes sustainabilityof labour”, he noted.

“Mitigating climatechange is not justthe responsibilityof politicians or of
global commercialorganisations. We
have to bring the civilsociety with us on
this journey.”graham Smith,toyota Europe

35

cumhur Atılgan
General Manager, RODER, Turkey

Ján Kubiš
Executive Secretary,
UN Economic Commission for Europe

Janusz lacny
President of JMJ–TRANS and President of
the International Road Transport Union

igor levitin
Minister of Transport, Russian Federation

36
Kunio Mikuriya
Secretary General,
World Customs Organisation (WCO)Karl Mohnsen
CEO, TX Logistik

Scott Price
CEO, DHL Express Europe

Etienne Schouppe
Secretary of State for Mobility, Belgium

Rapporteur:

Mary Brooks
William A. Black Chair of Commerce,
Dalhousie University, Canada

37

Policy Panel 2:

Supply chains andgateways in Volatile Markets

Policy Panel 2:

Supply chains andgateways in Volatile Markets“Growth will come backas one economiccrisis is not the end of
the global economy.”
Scott Price,
Dhl Express Europe

38“The crisis provides theopportunity to be lessparochial and moreglobal in thinking.”
Mary Brooks,
Dalhousie University

The situation with the global supply chain
has changed dramatically over the last year.
Then, growth outstripping capacity was
the main challenge. Today, the challenge
is adapting to new market conditions,
alleviating the effects of the downturnfor logistics companies and preparing
tomorrow’s supply chains, noted moderator
Robert Wright in his opening comments.
is the downturn changing the structureof supply chains?
Logistics actors everywhere have seen
a steep decline in volumes traded in thefirst quarter of 2009. Scott Price, CEO of
DHL Express Europe, confirmed, citing a
reduction in business of between 10 – 12%in the first quarter of the year, althoughbusiness has begun to stabilise.
Panellists came to the agreement that
globalisation would continue but there was
not necessarily agreement that supply
chains would remain the same. Smaller
players are being pushed out of the market
and the global supply chain sector is likely
to emerge consolidated. Freight forwarders
are re-evaluating possible trade-offs
between lower manufacturing costs andhigher transport costs which could translate
into less demand for intercontinental trade.
Energy prices, which peaked at over 140
US-dollars a barrel, and environmental
factors are also emerging as key drivers
in the supply chain reconfiguration withincreased demand for land-based, short
sea shipping and intermodal transport. In
this sense, the current downturn is also
an opportunity for any well-organised andmanaged company to exploit.

Where are the weak links in the global
supply chain ?
Within each mode, bottlenecks of a technicalor administrative nature were frequently
cited as an important hindrance to thesmooth flow of international freight. Kunio
Mikuriya, Secretary General of the World
Customs Organisation, confirmed that, toimprove the supply chain within the remit oftransportation and customs, early access to
information facilitates risk management andhelps enforce security in its broadest sense.
Risk management therefore needs to beconsistent, with information shared to createa network for the seamless transfer of goods.
There was general consensus thatremoving existing regulatory barriers,
introducing electronic document workflows
and adopting common risk management
approaches offered least-cost pathways
to a truly integrated global supply chain.
Replacing existing cabotage laws – reported
to account for 30% of Europe’s empty runs
– was perceived by several panellists as the
single measure with the highest impact on
freight efficiency.
Seamless transport services are essential
to supply chain actors. Yet, rail operations
in Europe remain constrained by historicalfactors, ranging from technical issues,
such as signalling and electrification, tosafety systems, which delay cross-border
operations, according to Karl Mohnsen, CEO
of TX Logistik.
A discussion arose on ways to step up theconvergence of logistics services into a truly

Moderator:
Robert Wright,
Journalist,
Financial Times

global transport market. Customer-driven
intermodal solutions can offer an energyefficient transport service with potentiallylarge economies of scale but, in many cases,
they require start-up investments allowing
the fleet and infrastructure to adapt to
new technical requirements. Public support
needs to favour intermodal developments
where there is the greatest carbon
emissions and largest potential for modal
shift. cumhur Atılgan, General Manager ofRoder, pointed to the high emissions savings
achieved by Turkey’s increased reliance onintermodal transport.
Highlighting the vital role of transport ineconomic development worldwide, Janusz
lacny, President of JMJ-TRANS, also advocatedthe need for partnership across transportmodes but insisted these require harmonisationof technical and procedural factors.
how does infrastructure need to beadapted ?
Infrastructure increasingly needs to bedevised with the global market in mind.
The improvement of transport links andcorridors cannot be achieved by individual
countries, but needs broader co-operationfrom intergovernmental bodies, according
to Ján Kubiš, Executive Secretary of UNECE.
A good example of bilateral co-operation wasprovided by Russian Minister igor levitin,
who pointed to the excellent historic andongoing working relationship with Finland
as a gateway from Russia for the supply of
goods from Russia to the rest of Europe.
Freight corridors and gateways serving
several markets at once do suggest wherecoordinated investment strategies areneeded. Seaports in particular need to be
designed keeping in mind the hinterlandconnections and the requirements ofdifferent users of the service. Industries
will only use gateways that effectively
reduce their overall costs to market.
Ultimately, many of the supply chain choices
are driven by the customers themselves as
they seek lower shelf prices. However, it isgovernment that effectively sets the rulesof engagement. The regulatory climate
needed is one that is less parochial, moreglobal in its thinking and adjustable tofuture cyclical crises.
What can governments do ?

“It is time to redefine
transport corridors”
Ján Kubiš, UnEcE

39

The panel discussions produced generalagreement on the following ways government
can ensure efficient global supply chains in
the current economic context:• Avoid protectionism: When multiple
economies slide into recession simultaneously, the prospects for an exportled recovery are dimmed. This makes
short-term protectionist measures very
attractive.
• Harmonise standards and reduce
administrative burden.
• Provide start-up support for intermodal
programmes.
• Coordinate infrastructure investment programmes where international markets are
impacted.
• Work with all the stakeholders especiallywhen devising large freight gateways andcorridor.

“Every mode could
give examples of
discrepancies versus
another mode. The crisis
is an opportunity tointervene and correct.”Etienne Schouppe,
Belgian Secretary ofState for transportDominique Bussereau
Secretary of State for Transport, France

Roberto castelliVice Minister for Infrastructure andTransport, Italy

Enrique Díaz-Rato
CEO, Cintra

Maciej Jankowski
Undersecretary of State, Ministry of
Infrastructure, Poland

40

Bert Klerk
Chairman, ProRail, Netherlands

Mustafa Sani Sener
CEO, TAV Airports Holding

Yves-thibault de Silguy
CEO, Vinci S.A.

Rapporteur:lord Macdonald of tradeston
Chairman, Macquarie Capital Europe

41

Policy Panel 3:

infrastructure: Public andPrivate Roles after the credit crunchPolicy Panel 3:

infrastructure: Public andPrivate Roles after the credit crunch
Governments everywhere are facing aneed to upgrade transport systems. Much
essential infrastructure needs to be built,
replaced or adapted to serve increased
traffic and changing travel and tradepatterns.
“Risk is back,austerity is back, andthe state is back.”lord Macdonald oftradeston, Macquarie
capital Europe

42“The ultimate
justification for theparticipation of theprivate sector isefficiency: we performbetter, cheaper andsooner than the public
sector; not because
we are smarter, but
because we have theright incentives.”
Enrique Díaz-Rato,
cintraBut the gap between the global need formore infrastructure investment and the
public funds available to build it is growing
and could become even wider in the current
economic climate. Experience shows thatwhen public finances are under pressure,infrastructure investment is often cut
back.
There has been an increasing trend
toward engaging the private sector in
infrastructure development.
Private engagement in transport infrastructure can take a number of forms,
including concessions and public-private
partnerships (PPPs). The appropriate
model will depend on the nature of the asset.
Many mature assets could be concessioned
or privatised, which would likely involve lessrisk and more limited, but steadier returns
than some PPPs. Privatisation could also
generate additional funds to support
infrastructure investment.
Private financing should not be considereda “necessary evil” – the primary reason forengaging private capital in infrastructure
funding is not to fill gaps where government
funding is not available, but rather to makeuse of the expertise and the competenceof the private sector, as well as of its power
to innovate.

Talking of his experience in the rail sector
in the Netherlands, Bert Klerk, Chairman,
ProRail and President, European RailInfrastructure Managers, reported thatthe involvement of private partners isoften greeted with suspicion in the public
eye: “People think rail is – and should stay –state business.” This shows the importanceof drawing public attention to the benefitsof private involvement in infrastructure
projects, in order to achieve greater public
buy-in where PPPs are concerned.
What is the impact of the current crisison existing PPPs, and on the PPP market
in general?
The current global economic and financial
crisis has had a profound impact on
private investment in infrastructure.
Many banks have ceased to lend, whileothers are lending less and focusing theiractivities on lower-risk projects. The crisis
has also tested the assumptions on which
many existing projects are based, andthe long-term implications are yet to be
seen. At a general level, the result is that,
wherever available, financing for private
investment in infrastructure has become
more costly.
Private involvement in infrastructure
funding is highly reliant on the availabilityof credit, as these arrangements typicallyinvolve enormous up-front expenditures.
Thus, the current crisis is having a major
impact, reducing credit availability
for investment in infrastructure while
increasing the cost of borrowing (and thusof private investment) due to increased
risk. It is also reducing the revenues fromModerator:
Nik Gowing,
International
Broadcaster and
Journalist

existing infrastructure, due to lower use.
Furthermore, the availability of monoline
insurance has dropped considerably.
Recently, major projects have needed to be
postponed or restructured due to the lack ofcredit. Maciej Jankowski, Undersecretaryof State of the Polish Ministry of
Infrastructure, provided an example ofthe increasing difficulties experienced
by many countries in implementing PPP
projects. Poland has planned to build about
480 kms of motorways under PPP schemesby 2012. Negotiations on the 100 km-longsection of the A2 Motorway, part of thepan-European
Berlin-Warsaw-Moscow
corridor, recently had to be abandoned
because potential investors demandedthat the major burden of risk be shifted tothe state.

Many rail infrastructure projects, which
typically demand a particularly high levelof investment, have had to be interrupted
due to lack of funds. Roberto castelli,
Under-Secretaryfor
Infrastructure
and Transport, voiced his concern about
the fact that rail projects are often lessattractive for private investors than roadprojects: “We must find a financing system
for rail transport that makes it profitable
and competitive. For the time being, this is
not the case.”
Still, all is not doom and gloom in the fieldof private infrastructure investment. As
Mustafa Sani Sener CEO, TAV Airports
Holding, pointed out: “The money in theworld has not evaporated, it is still there.
The conditions are hard, but if the structureof a PPP is sound and clearly defined,“Right now, we need
PPPs more than everbefore.”Dominique Bussereau,
Secretary of State fortransport, France

43“Is the Public-Private
Partnership system indanger at this moment?
The answer is yes!”
Bert Klerk, European
Rail infrastructureManagers

there is no difficulty in raising finance inour business.” The crisis could even have apositive impact as well, in the form of a fallin the cost of construction.
What do governments need to do in the
short term to mitigate the impact of
the crisis on PPPs?
It is important to note that PPPs are
suffering as a result of a crisis in otherareas of the economy – especially thefinancial sector – and this does not bring
into question the validity or sustainability ofprivate investment in infrastructure per se.

44“We have to coordinate
the financial actorsof all kinds andcategories, to getthem interested in
major projects.
Europe could do morein this field.”
Yves-thibault deSilguy, cEo, Vinci S.A.

In many instances, the lack of credit available
to private firms investing in infrastructure
will require some kind of public intervention
in the short term. Countries are taking
different approaches to this issue.
Some governments – such as the United
Kingdom, which is undertaking a lendingrole, and France, where the governmentis providing loan guarantees – are taking
active steps to support PPPs. International
financing institutions, such as the European
Investment Bank, are doing the same, forexample by taking equity positions where
financing is not otherwise available.
Governments
and/orinternational
financial institutions could also seek out
short-term mechanisms to ensure that therole played by monoline insurers continues
to be played, at least until monoline markets
recover. lord Macdonald elaborated: “Itwould be good if governments would think
about setting up an institution to replicate
the monoline function in the short tomedium term, perhaps to privatise it later.”

What can be done to secure a stable,
long-term role for private capital andexpertise in transport infrastructure?
One thing is to stabilise private funding
arrangements in the short term. However,this is temporary, and the real objective
should be to establish stable funding
arrangements in the longer term, especially
if we accept that private funding will
be required to meet future transport
infrastructure needs.
Governments should be ready to meeta rapidly rising demand for transportmoney is ultimately essential to longer-termsocial and economic stability, its investment
in infrastructure can result in greaterpublic interest in ensuring the stability of
those investments. Sovereign-wealth funds
also offer new potential.
There are a number of steps that governments can take to further attract private
capital to transport infrastructure:

infrastructure, which can be expected as
economies begin to recover. Although it
will not resolve all funding needs, private
financing can be an important source of
this funding.
Insurance and pension funds, in particular,
represent an important potential sourceof infrastructure funding that is largely
untapped in many countries. According toa recent OECD project “Infrastructure to2030”, there are about USD 18 trillion in
pension funds available for investment inOECD countries alone. Because pension fund

• Focus on “high quality” PPPs – meaning
projects that will be stable and provide
important benefits to society. Rigorous
economic appraisal remains the best
tool for ensuring that onlywellconceived and designed projects,
which add value, go forward.
Governments should avoid projects
that are developed principally on thebasis of political expediency.
• Make sure that projects are clearly
defined, and that the legislative andregulatory frameworks that govern
PPPs and procurement processes arewell defined and strictly enforced sothat private partners have a strong
sense of stability. This applies
particularly to developing and emerging
economies.
• Provide appropriate pricing schemes forinfrastructure use.
• Review accounting standards to ensurethat they do not unfairly penalise PPPs incomparison to public procurement.
• Improve risk allocation, and not seek
to transfer risks that clearly cannot be
managed by private partners (e.g.
political risk, macroeconomic risk, muchdemand risk, etc.).

45

carlos grau tanner
Director, Government and Industry Affairs,
International Air Transport Association

Johannes ludewig
Executive Director, Community of European
Railway and Infrastructure Companies

Martin Marmy
Secretary General, International Road
Transport Union

Spyros Polemis
Chairman, International Chamber of
Shipping

46
Scott Price
CEO, DHL Express Europe

hans Rat
Secretary General, International
Association of Public Transport

Matthias Ruete
Director General of Energy and Transport,
Transport and Energy, European
Commission

Jamal Saghir
Director of Energy, Transport and Water,
World Bank

Ronald Widdows
CEO, Neptune Orient Lines

47
Binali Yıldırım
Minister of Transport of Turkey, Presidentof the 2009 International Transport Forum

Policy Panel 4:international leaders’ Roundtable
Moving the Agenda Forward

Policy Panel 4:international leaders’ Roundtable
Moving the Agenda Forward“We need to lookbeyond the crisis andprepare the sector for
the future.”
Binali Yıldırım
Minister oftransport, turkey

48

The International Leaders’ Roundtable wasa welcome opportunity to carry forward
the agenda by discussing how ministers,
the private sector and internationalorganisations can work together on a
forward-looking, longer-term vision for thetransport sector. Patrick Dixon, an expert
on global trends who has been described as“Europe’s leading futurist” and ranked as oneof the 20 most influential business thinkers
today, was invited to moderate the session.

“Many of the innovations we are dreaming ofwill depend on alternative energy productionin the future.”

In his opening words, Patrick Dixon appealed
to the audience to look beyond the current
crisis and focus attention in particular
on innovation, the topic of next year’s
International Transport Forum.

The resulting surge of urbanisation anddemand for mobility bears dangers andopportunities for the sector. “If we manage todeal with it, we should be heading for a very
exciting future”.

An informal polling of the audience revealed anear-unanimous belief that the world shouldbe heading for an economic recovery within
the next 36 - 48 months.

innovation and cooperation help toovercome the crisis

But Patrick Dixon warned that the majorityof economic stimulus measures would only
start taking effect with a certain time-lag,and begin showing their true impact well into
the recovery phase on account of the project
timeframes of infrastructure investments inareas such as high-speed rail, harbours andairports.

In his address, Binali Yıldırım, Ministerof Transport of Turkey and President of
the 2009 International Transport Forum,
acknowledged that the transport sector
had been badly hit. The swift downturn
has translated into a drop in the demand
for transport services and resulted in job
losses, he noted. However, transport policy
can play a role in overcoming the crisis andpreparing for the challenges of the future.
“The importance of transport has not been
diminished by this crisis; if anything it has
increased.” Minister Yıldırım stated.

Dixon also criticised what he called the “lastcentury mentality”, i.e., thinking of the energy
and the transport industries as two separate
constructs. The realisation that the futureof transport is directly linked to the futureof energy is only the first step, he argued.

International eration and co-ordinationneed to be strengthened at this time, noted
Minister Yıldırım, emphasizing the role ofthe International Transport Forum as theplatform where global transport policy is
being formulated.

Stimulus packages will take time togenerate results“12 months ago, thetalks around thisForum were all about
the massive oil prices
and how the industry
could survive. The
assumption wasthat environmental
innovations would pay
for themselves out ofenergy reduction andclimate change policy.”
Patrick Dixon

Patrick Dixon went on to describe thefundamental challenge of the world’schanging demography: “There are one
billion children alive today, all of whom will
be adults and want to be mobile within 15 to
20 years. That alone is a significant driver ofurbanisation.”

Moderator:
Patrick Dixon,
Chairman of Global
Change Ltd., UK

In the knowledge that trade and transport
have to work together and rely on each otherinternationally, he concluded by calling on hiscolleagues to concentrate on infrastructure
improvement as a lever for job creation andimproved competitiveness.
The Canadian Minister of State for Transport,
Rob Merrifield, who is presiding over the2010 International Transport Forum,
took the opportunity to call to mind theimportance of international co-operation: “Ifthere’s one thing that last year should havetaught us, it is that we are so connected asa world we absolutely must work together
to move forward.” Taking up a recurrent
concern stated throuhghout the Forum,
Minister Merrifield warned of the dangers
of protectionism: “If there is one thing
we need to do, it’s protect ourselves fromprotectionism,” he declared.
Minister Merrifield expressed his convictionthat innovation will help drive the industry
through the recession and allow it to succeed.
connected thinking in transport
Despite the current economic challenges,
business is moving forward. DHL Express,for example, opened its new European hub in
May 2008 in Halle/Leipzig airport, where theentire European operations are now handled.
CEO Scott Price reported on the company’s
rationale for moving to Leipzig: “We see ahuge growth in volume coming out of Eastern
Europe and a lot of capital investment, andof capacity for Western Europe consumption
coming back into Central Europe on accountof the long-term risk on energy prices.”

When projecting the future of transport,
experts are looking at a time frame of 20 to 40
years. According to Matthias Ruete, Director
General of Transport and the Environment at
the European Commission, a zero-emission
urban environment may become reality inthis period through zero-emission housing,urban transport, and energy production anddistribution grids. Mr Ruete also recalled
the importance of a rigorous and effective
regulatory framework to aid infrastructuredevelopment.
Scott Price drew attention to the fact thatthe transport sector, as an inherently
international industry, needs a predictable
regulatory environment in order to havesome planning dependability. To be effective,
he claimed, the efforts of the industry must go
hand-in-hand with government regulations. To
illustrate the importance of this statement, hegave an example of how industry initiatives toimprove the climate footprint are underminedby flawed regulation: DHL began an initiative
during the downturn to upgrade its fleet
to more fuel-efficient models and improveutilisation rates; at the same time, however,
30% of all trucks run empty in Europe due tocabotage regulations.
Matthias Ruete agreed that optimised
tools and integrated operations could
have a significant impact, pointing to theimplementation of the European Rail Traffic
Management System, which will make more
efficient use of the existing rail infrastructurein Europe.
Promising examples of truly integrated
logistics systems also exist, noted49“I am a great believerin free markets
that are properly
regulated – and it’s
the responsibilityof governments toproperly regulate.”
Scott Price,
Dhl Express Europe

“We have seen the needfor connected thinking
in terms of transport.”
Matthias Ruete,
European commission

50“If the transport
sector doesn’t drive
the climate change
agenda, it’s going tobe the energy agendathat drives thetransport and climatechange agenda.”
Jamal Saghir,World Bank

Ron Widdows, CEO of Neptune Orient Lines.
The Alameda Corridor, a 20-mile-long highcapacity freight expressway linking theport cluster of Long Beach and Los Angeles
to the transcontinental rail terminals
near downtown Los Angeles, has improved
efficiency, congestion and transit times
and has had a huge positive impact on theenvironment.
Innovation is one of the main drivers ofdevelopment. Jamal Saghir, Directorof Energy, Transport and Water at theWorld Bank, appealed to the transport
sector to increase investment in researchand development. Thriving cities, mobile
people and vigorous trade have been the
catalysts of progress and welfare in thelast two centuries. These components willremain constant for the future, he noted.
Urban areas are becoming more and more
important to economic growth – the greater
Cairo area, for example, contributes 40% of
Egypt’s GDP – the question of how to separate
the movement of goods from the movement ofpeople in a way that makes continued accessto those urban areas efficient, is becoming
extremely important.
Addressing the question of how to financesuch expensive projects, Mr Saghir
pointed out that the private capital flow
in infrastructure finance would decline byaround USD 700 billion. This is extremely
serious, as it changes the rules of thegame completely. Institutional banks
are also very concerned about the issueof maintenance in transport. Neither
developing countries nor emerging
markets are allotting adequate funds forthe maintenance of their road and rail
infrastructure.
the challenges of fleet renewal andenvironmental protection
In addition, the transport sector will not
only be challenged by maintenance but alsoby necessary modernisation cycles. In the
shipping industry, for example, the next waveof renewal is coming soon. The industry will
have 50–60% of tonnage of the world fleet
delivered within the next three years. These
modern ships will be far more fuel-efficient.
Still, even this new fleet of ships will not meet
future environmental standards. In otherwords, the entire fleet will have to be changed
again within the next couple of decades. Inview of this situation, Ron Widdows outlined
his position: “Before our industry invests thenext trillion dollars – and that’s what we aretalking about – you do need to have someclarity of where regulatory and standard
setting is heading”.
Spyros Polemis, Chairman of theInternational Shipping Council, pointed outthat the shipping industry relies heavily on
innovation in shipping construction. Whereas
in the last ten years ship engines have
improved their fuel efficiency by 20-25%,
the optimisation of cargo-carrying capacity
has reversed this development in certain
areas. Regarding the next ten years, similar
efficiency gains will be reached through a
combination of design and engines.
Johannes ludewig, Executive Director of
the Community of European Railways andInfrastructure Companies (CER), notedthat future design decisions are largely

control have already greatly improved theclimate footprint. Nevertheless, a single
European air space and other short-term
actions and political decisions will benecessary in the future. Regulations thatquite often are based on governmental
agreements and treaties from the 1940’s
will have to be changed.

conditioned by pricing dynamics. If the priceincentive is right, then more energy-efficientdesign will follow.
In the trucking industry, Martin Marmy,
Secretary General, International Road
Transport Union (IRU), reported that silicone
would be a key pillar of innovation, both
inside computer chips to improve vehicle
management, and in ceramic engines andgearboxes, making them resistant to higher
temperatures.
As in the shipping industry, the sourcesof pollution in aviation are highly mobile.
Consequently, the sector is encouraging
a global set of policies, because regional
regulatory frameworks have begun toemerge. This is extremely complex and
expensive to handle for the industry.
carlos grau tanner, Head of Government
Affairs at the International Air Transport
Association (IATA), pointed out: “There is nostronger incentive than last year’s oil prices
for the airline industry to become extremely
fuel efficient.” The installation of new
upward wing tips and optimisation of traffic

Driven by new mobile electronic devices andservices, patterns of urban transportation
behaviour are changing, hans Rat, Secretary
General of the International Association of
Public Transport (UITP), observed. All over
the world, public transport companies areobserving an increasing number of users.
This process started before the crisis andit continues to grow, creating huge new job
opportunities in the sector.

“Innovation ischanging mobility
patterns.”
hans Rat, UitP

51

Johannes Ludewig reported of efforts therail industry is undertaking to maintainthe sector’s sustainability advantage in the
future. For 2020, railways are targeting a
reduction of specific energy consumption byaround 30%, which is more than the objectives
set by the European Union. However, aproblem for rail is how quality and structural
infrastructure needs can be financed reliably
into the future, especially given that parts ofthe system are underfinanced today.
Panellists agreed, there are tremendous
opportunities in optimising transport byinnovation without having to invest trillions ofdollars . But those gigantic improvements in theefficiency of supply chains will require someregulatory and legislative statements and an
open dialogue between the governments andthe industry.

“The transport system
is a service system,
and we have to ask
ourselves how we canservice the objectives
which are there.”
Johannes ludewig,
cER

52

Workshops

53

Mary Brooks
William A. Black Chair of Commerce,
Dalhousie University, Canada

Weijun Fei
Deputy Director, Waterborne
Transportation Institutehans Jeekel
Ministry of Transport, Netherlands

Boris lapidus
Vice President, Russian Railways, Russia

54
lauri ojala
Professor and Chair of Logistics, Turku
School of Economics, Finland

Jean-claude Raoul
Chair of the Mobility and Transport
Commission, Académie des Technologies,
Francelars-göran Rosengren
Vice President of Innovation Strategy &Policy, AB Volvo

Wolfgang Stölzle
Managing Director, Chair of Logistics
Management, University of St Gallen,
Switzerlandhans-georg Werner
Board Member, DB Schenker Rail
Deutschland AG, Germany

55

Workshop 1:

intermodal transport and Supply chains –Moving the global Economy

Workshop 1:

intermodal transport and Supply chains –Moving the global Economy“The crisis and downturnis every-where. The crisis
will interrupt but does
not stop globalisation…
There will be increased
demand in transportand logistics. This is a
growing industry.”hans-georg Werner,
DB Schenker Rail
Deutschland Ag

56

The Workshop on Intermodal Transportand Supply Chains - Moving the Global
Economy examined the forces driving thedevelopment of the sector and discussed
the potential ramifications of the current
severe downturn. The impact of volatileenergy prices and the longer-term profile ofsupply chains were debated. The workshop
also discussed the integration of transportand logistics firms, the growing significanceof reliability and consumer values in logistics
services, and the potential and desirability
for growth in intermodal, rail, barge, andshort sea shipping services.
the transport sector faces urgent
problems in the short-term, but mustalso focus on actions to support
long-term strategies
Workshop participants noted that the global
economic downturn has been severe, affecting
many industries simultaneously and creating
uncertainty. However, the general view ofparticipants was that growth will return, andthe crisis will not have a significant impact oncontinuing globalisation.

“We need moreinnovative road/sea/rail transfer
solutions both forgoods and documents
i.e. ‘paperlesstransport’….
Infrastructure
bottlenecks exist andlead to unreliability
and reduced speed.”lars-göran
Rosengren, AB Volvo

With this in mind, the quality of infrastructureand existing bottlenecks will remain achallenge. ITS systems are likely to have abigger impact, and effective functioning ofthese systems is of importance.
the future development of supply chains
will depend less on the price of energy
and more on the capacity of logistics
companies to provide reliable
end-to-end services
The impact of volatile energy prices
and a potential return to high oil prices

in the long-term was considered notof immediate concern and probably
not overly significant in overall terms.
Logistics costs represent around 1015% of total turnover in manufacturingindustries and transport-related costs
account for one third of this. Often,
inventory and management costs are
greater than direct transport costs.
The reliability of logistics chains wasconsidered an important service factor.
Unreliability tends to arise at interfaces– between countries, between ports
and hinterland connections, at modal
interchanges and between warehouse andcarrier.
Despite its importance, network andservice reliability is not yet systematicallyincorporated in the transport planning
process and is rarely included as part ofthe cost-benefit analysis. In addition toreliability, the consumer has an importantrole in determining logistics patterns
should not be underestimated.
the current crisis will reinforce thetrend towards new global ‘mega players’
The current economic downturn has
severely impacted trade volumes andprofit margins. Some transport andlogistics companies will not be able tosurvive the downturn and are likely toexit from the sector. In order to manageinterface many agents along the supply
chain have become engaged in horizontal
and vertical integration of activities. This
has increased efficiency and promoted theemergence of some very large companies,

Moderator:
Zoltan Kazatsay,
Deputy DirectorGeneral for Transport
Activities, European
Commission

including logistics businesses andmaritime shipping companies controlling
large assets and operating globally.
clients require a smooth transportation
system that calls for cooperation
between modes to enhance intermodalism
in the supply chain
Cooperation between businesses toimprove intermodal transport will be
important to surviving the current crisis.
Legislative and regulatory differences areserious obstacles for smooth operations,and there is a need for international
cooperation in harmonising legislation andprocedures.

There is also a need for more international
cooperation in reconciling national with
regional interests in questions such as
cabotage. Maritime cabotage is a serious longterm issue for the sector. Whilst international
shipping is a relatively open market, regional
shipping continues to be limited by cabotage
constraints. Yet, despite predictions ofincreased congestion, the regulatoryenvironment still favours highways.
Growth in intermodality will not only
help to improve the passage of goods
across continents, but will help to address
challenges of volatile energy prices andenvironmental concerns.

“We are faced with a
new business model.
Transport must be
incorporated in
manufacturing anddistribution andcontrolled by sameplayers.”
Jean-claude Raoul,
Académie destechnologies

57

North America
East Asia

EuropeSouthern
Asia

OceaniaSouth/Central America& CaribbeanWest Africa

43690

Thousand TEUs byRegion of Origin

W
E. . Afr& S ic.A a
fr
Oc icaean
S ia
L. . Asi
No Am arth er
Am ica
er
i
Eu ca
ro
Fa pe
rE
as
t

531 1117 1971

18553
11148
6586
5043

South/East Africa

Containers moved bye Sea (TEUs), 2008
Source: Containerisation International, OECD/ITF“In Europe, capacities
in the hinterland are
the most importantbottleneck….The roleof Transport policy
needs to create
conducive conditions
for all market
participants.”
Wolfgang Stölzle,
University of St
gallen, Switzerland

Dan ikenson
Associate Director, Centre for Trade Policy
Studies, CATO Institute, Washington

Andrea Kocsis
Ver.di Trade Union, Germany

Marios Meletiou
Ports and Transport Sector Specialist,
International Labour Organization, Geneva

58Arpita Mukherjee
Professor, Indian Council for Research on
International Economic Affairs (ICRIER),
New Delhi

Maryvonne Plessis-Fraissard
Consultant, World Bank

K. l. thapar
Founder and Chairman, Asian Institute ofTransport Development

59

Workshop 2:

Social impacts ofinternational transportation

Workshop 2:

Social impacts ofinternational transportation
Chaired by Maurice Bernadet thisworkshop, exploring the social aspectsof global transport, commenced with apresentation of the study “The Social
Impact of Globalisation” by Arpita Mukherjeeof the Indian Council on International
Economic Relations.
“But the positives havefar outweighed thenegatives in the caseof India.”
Arpita Mukherjee,
indian council
on international
Economic Relations

60

Globalisation has facilitated growth indeveloping countries in recent years. Despite
the economic downturn the rate of growth of
the Indian economy is estimated to be around
7-8%, or 5% based on conservative estimates.
Nonetheless, the Indian Government will
release a stimulus package in order tomaintain the current growth levels.
Still enormous potential for growth in
the transport sector
Transport is at the heart of economic growth
and trade in developing countries, facilitating
connections to international trade hubs,
increasing liberalisation and competition,
and attracting foreign direct investment(FDI); in India 30% of FDI is facilitated by thetransport sector.
The development of transportation systems
is a directly linked enabler of national
industry and therefore intrinsically linked to
employment. Various studies have indicatedthat the Indian transport sector still needs togrow more rapidly to meet the requirementsof the Indian economy.

“If you are small,sparsely populated
and isolated you startat a disadvantage.”
Maryvonne
Plessis-Fraissard,
World Bank

Opening and developing the market, and the
supply chain optimises connectivity as wellas enhancing distribution, productivity, andefficiency. In addition, it improves social
access to fundamental requirements suchas education, and medical services. At thesame time, changes may result in increased
inequalities among and within countries, aswell as generating negative side effects suchas accelerating the spread of diseases andepidemics.
A role model for other developing or
emerging countries?
Dan ikenson perceived ample opportunities
for other countries to adopt reforms akinto those implemented by India, but at theirown pace.
Maryvonne Plessis-Fraissard spoke ofthe role of transport infrastructure indiminishing inequality in a country at a
local level. Referring to several studies she
also remarked that at a national level, there
tends to be a transition period during whichtime inequalities worsen before improving.
On an international level there needs tobe recognition that not all countries arefavoured to enter the world market. Countries
with geographical access and which are in theprocess of economic change – such as Chileand China – are better placed than isolated
and landlocked countries.
transport: A driver of social development
K.l.thapar highlighted the important role ofaccessibility in improving conditions.
A study of a population living within the vicinityof a highway creating links to urban centres
revealed that poverty decreased by 12%. In
addition, well being improved by 32% and there
was significantly more student enrolment ineducation – particularly amongst females.

Moderator:
Maurice Bernadet,
Professeur, Laboratoired’Economie desTransports, Universityof Lyon, France“Any downturn, whether global, regional, or
local, has an exaggerated negative social
effect on the transport sector because
incomes in this case tend to fall more
drastically. They also fall more quickly, as
well as more suddenly, and when most of thelabour employed in the sector is unskilled orsemi-skilled, as is generally the case within thedeveloping countries, the social consequences
tend to be worse.”, K. L. Thapar said.
In order to achieve a balance between public
and private participation in the developmentof transport infrastucture, there needs tobe differentiation between fixed and mobile
assets. The latter are more readily supportedby the private sector. Conversely, the state
has a major role to play in supporting
infrastructure investment.
Maryvonne Plessis-Fraissard advocatedthat in preparation for an end to thecurrent economic crisis three issues need
to be addressed: first, policies for social
support such as education, health, andwater supplies; second, smart infrastructure
investment in order to achieve multisectoraland multimodal goals; and thirdly, corrective
intervention where it is needed.
As there is potential for inequalities,
governmental regulations are required inorder to overcome the negative consequencesof growth addressing labour and humanrights issues.

“Wherever there isbetter access there isless poverty.”
K. l. thapar, Asian
institute of transport
Development

towards a better world
Andrea Kocsis reminded the panel that theunions should not be considered as part ofthe problem but of the solution. She called forthe establishment of a globally harmonised
human rights framework to prevent therisk of countries entering into a race to thebottom in order to attract and maintainactivities.
In order to counter inequality in the labour
market, Marlos Meletlou requested thatthe global community should agree on
minimum labour standards as well as taking
a different perspective regarding worldwide
manufacturing costs. Mr Meletlou highlighted
that fair globalisation creates opportunities
for everyone. One of the risks of the downturnis that it tends to impact disadvantaged
groups first, such as young employees,
migrants, unqualified workers, and women. As
has been the case in Singapore, governments
need to maintain training during times of
unemployment, thereby securing skilledworkers for the times of recovery.

61“Young people should
be in employment, or
receiving training or
education. If they are
not in one of these
positions we facea very bad future.”
Marios Meletiou,
international labour
organisation (ilo)Matthew Arndt
Head of Rail and Road Division, European
Investment Bank

Alain Bonnafous
Professor of Economics, Laboratoired’Economie des Transports, University ofLyon, France

Robert cochrane
Independent Transport Consultant, London

Stefan garber
Board Member, Deutsche Bahn AG,
Germany

62
Peter Mackie
Professor of Transport Studies, Institute forTransport Studies, University of Leeds

nicolas Rubio
Director, Business Development andTechnical Department, Cintra

K.l. thapar
Founder and Chairman, Asian Institute ofTransport Development

caroline Visser
Specialist on Road Finance andPublic-Private Partnerships, International
Road Federation (IRF)

Waleed Youssef
Chief Strategy Officer, TAV Airports Holding
Inc, Turkey

63

Workshop 3:

Strategic transport infrastructure
Planning & Financing

Workshop 3:

Strategic transport infrastructure
Planning & Financing“The general view isthat we are now looking
at a bathtub curve”.
Robert cochrane,
imperialcollege london

64“Affordability is going
to be become a much
more critical element inappraisal, and therefore
the balance between
public funding, user
charges, social benefits
and value for money islikely to become more
important.”
Prof. Peter Mackie,
University of leeds

Investment in transport infrastructure
has contributed to reducing the cost of
trade and has stimulated globalisation.
Further investment across the globe will
be needed if trade is to continue to growand benefit a broader range of countries.
Transport policy must also adjust to theeconomic and structural changes that
globalisation brings to domestic economies
as this has a powerful impact on thepattern of demand for transport services.

take years to rebalance, and the current
correction is likely to be followed by aperiod of sluggish recovery before growth
takes off again. As Robert cochrane put
it: “The general view is that we are now
looking at a bathtub curve.”

The financial and economic crisis
modifies the outlook for internationaltransport and has sharply reduced theavailability of finance for transport
infrastructure investment. This has
important implications for projectappraisal and project financing. At thesame time, policies to mitigate the current
economic downturn include an emphasison transport infrastructure spending, but
how should this best be directed to assist
and prepare for economic recovery?
The workshop, chaired by lord gus
Macdonald, examined these issues and theinfrastructure planning and investment
policies needed to ensure adequate
performance and reliability of thetransport network to support growth in a
global economy.
The economic crisis has reduced economic
growth this year substantially below what
would have been expected on recent trends(7 percentage points below in the UK for
example). The economy will eventually
bounce back but the debt overhang
underlying the collapse of activity will

Transport demand and congestion
levels are now more difficult to predict,particularly for freight, which is moresensitive to changes in economic growth
rates than passenger transport. Freight
volumes have fallen more sharply thaneconomic activity as a whole for a numberof reasons. Conversely, when recovery
comes, new growth in freight volumes isModerator:
Lord Macdonald ofTradeston, Chairman,
Maquarie Capital
Europelikely to outstrip forecasts, as has been
the case in previous growth cycles.
Governments need to be prepared for thisrecovery as well as responding to the crisisin the short term. “In a squeezed investment

assessed to be positive for increasing
economic welfare. There is a particular
backlog of maintenance projects thatare particularly suited to contributing
to government spending to stimulate
the economy as they can be delivered
relatively quickly.
Bottlenecks are another focus forinvestment, and their modest scale also
makes them a better fit in stimulus
packages than mega projects. Moreover,any risk of overinvestment in capacity
because of the economic crisis is minimised
by a focus on bottlenecks. Recession
may have eased congestion on somebottlenecks, but recovery when it comes islikely to put the same links under strain.
Mega projects are much more likely to run
demand risks.

“We strongly feel thatgovernments in thistime should see themoment to rethinktheir financing of
infrastructure and try
to come up with longterm funding solutions.”
caroline Visser, iRF

65

Top quality economic appraisal is more
important than ever. The shortage offinance implies that the hurdle rateof return for selecting projects underappraisal needs to rise.
the long-term outlook: capitalintensive and politically influenced

the funding gap and bottlenecks

Going forward, the crisis will exacerbate
the existing funding gap. The coming fiscalsqueeze will make it harder for government
to fund infrastructure investment. The
financial crisis reduces the private
funding available in the short term but
governments can act to make better useof private investment.

We entered the crisis with a large funding
gap for transport infrastructure projects

The lack of capital and investment is alsoa major issue for developing countries, asbudget, have we fully factored in the costsof maintaining what we have got at suitable
quality levels and in what may be a stormy
environment?” Peter Mackie asked.

“It doesn’t matter what
the problem is today
because infrastructure
decisions, financing
decisions orconstruction decisions
we make for any major
new project will go into
production earliest in
ten years.”
Stefan garber,
Deutsche Bahn Ag

K.l. thapar pointed out, since this accessdepends, especially in times of crisis,on the developing countries’ domestic
savings.

“The governmentalside has to close thegap between capacityand demand byencouraging additional
investments inthe sector.”
Walleed Youssef, tAV
Airports holding

66“But if we havelearned one thing in
the last two years, it’s
probably that there
is a need for a lotof tools and a lot offlexibility to be able
to face unexpected
situations.”
Matthew Arndt, EiB

The question of how investment decisions
today could stimulate the economy is seen
as essential, according to caroline Visserof the International Road Federation.
Visser stressed that governments should
not forget about mid- and long-termplanning, which require a huge strategic
input in order to attract infrastructural
support and long-term sustainablegrowth.
The crisis makes private capital more
expensive and this increases the importanceof getting the design of public private
partnerships right. Above all governments
must ensure that there are powerfulincentives for efficiency in PPPs throughthe way that risks are assigned. The worst
failures of PPPs have occurred where
finance consortia were undercapitalised,were not required to produce parent
company guarantees, and were allowed to
subcontract construction work in-houserather than through competition. No
purely private investment would accept
these flaws. When equity is risked it brings
rationality and efficiency to PPPs.
At the same time, governments may be ina better position to take demand side risk,
if forecasts of GDP underpinning projects
prove inaccurate, than private partners.
The crisis has resulted in a scarcity ofequity as well as debt. Capital markets

are currently not available for funding
infrastructure and the only source of funds
are banks. A much smaller number of banks
than usual answer calls to syndicate financefor PPPs this year (typically 10 rather thana more usual 30). The British government
has stepped in to facilitate syndicationin key projects through the Treasury’s
Infrastructure Finance Unit, acting in
effect as a bank. One of the key featuresof this intervention is its exit strategy, sothat the state will not be competing withthe banks when the crisis eases. Someother governments have responded tothe crisis by imposing a regulatory limit

on the exposure of banks to lending toindividual project developers regardlessof the quality of investments. A moretargeted approach might manage risk andavoid exacerbating the credit crunch. The
European Investment Bank is responding to
the crisis by increasing the volume of seniorloans and participations for infrastructure
investment, and has created with theEuropean Commission a loan guarantee
system covering traffic related risk for
selected strategic international projects.
Privatisation is another route to bringing
private equity to transport infrastructure

investment. Around a trillion dollarsof transport sector assets have been
privatised over recent decades. There is apotential for many more privatisations, of
airports for example.
Liberalisation more generally has
generated economic growth. Protectionism
in response to the economic crisis
would suppress recovery with a severe
effect on transport activity. Conversely,
further liberalisation (more open skies
agreements, freeing of road and maritime
cabotage, etc.) would provide a durable
stimulus to the economy.

67

Earl Agron
Vice President, Security & Environment,
APL Limited

Mark Miller
Director of Supply Chain Security Europe,
Middle East and Africa, COTECNA
Inspection SA

Vlad olteanu
Policy Manager, ACI Europe

68Robert Poole
Director of Transportation Policy, Reason
Foundation, Los AngelesDavid Widdowson
CEO, Centre for Customs & Excise Studies,
University of Canberra, Australia

Sabine Wiedemann
Vice President of Corporate Security,
Deutsche Post DHL

69

Workshop 4:

Ensuring a Secure global
transport System

Workshop 4:

Ensuring a Secure global
transport System“It is a challenge
for regulators to be
more inventive thanterrorists.”
Axel goehr, Federal
Ministry oftransport, Buildingand Urban Affairs,
germany

70“We want to make sureto get the most outof every dollar we spend
on security.”
Earl Agron, APl limited

The global economy relies heavily on tradeand international passenger transport.
Attaining the highest standards of security
in transport systems is essential for theiroperation. Governments and stakeholders,such as the industry and travellers, havea shared interest in the establishment ofeffective policies to ensure transport takes
place under secure conditions. Measures
should be viable, widely accepted, and theyshould make good use of scarce resources.
towards risk-based security policy
Not all existing security policies are effective.
While the sources of insecurity are flexible
and dynamic, measures are often inflexible
and static. Policies today largely revolvearound the concept of target hardening. As
Robert Poole pointed out, elected officials
tend to show a preference for dramaticand visible, yet static measures. Current
responses grew out of a need to be seen toact and convince the public that security isensured. Particularly in the wake of 9/11,
this has led to drastic measures such as
the no-liquids policy for carry-on luggage inpassenger air travel. Focusing on regulating
the process rather than the outcomes,
the target-hardening approach limits theflexibility of security providers to respond tochanging threats or new intelligence. Since
we live in open, target-rich societies, this is
not ideal. It is time to thoroughly rethink the
key principles of security policy.
The idea is to move from target-hardening
towards risk-based security policies. Thisimplies a shift of focus from trying to protect
vulnerable objects towards identifying

dangerous persons or cargo, and thoroughly
assessing risks to focus efforts where they
are needed most.
the importance of public acceptance
Security measures should contribute to a
positive perception of security. Passengers
are more willing to cooperate if security
measures are not perceived as irrational,

Moderator:
Axel Goehr, Director
Air Transport Policy,
German Ministry ofTransport, Buildingand Urban Affairspassenger facilitation requiring them todesign measures with public acceptance inmind. In this context it is hard to explain
why airport security confiscates all kindsof pointy objects while allowing passengers
to take large glass bottles from duty-freestores into the cabin, the shards of which
would make dangerous weapons.
The full-body scanner, on the other hand, isan example of a good innovation. It is much
more effective than pat-down inspectionsof which, the effectiveness depends
strongly on personnel, and to conventional
metal detectors that fail to detect nonmetallic weapons such as plastic andliquid explosives. Unfortunately, the public
acceptance for these scanners is quite low,
perhaps partly because of media emphasison their downsides instead of their potential
to provide smoother security services.

71

It is important to inform the public that
100% security will never be reached by anymeans. This requires open communication,
showing that risk-based approaches are
effective yet admitting they fall short ofeliminating security risks entirely. The gap
between security and perceived security
needs to narrow.
wasteful or pointless, but deemednecessary and effective. “Whilst the publicrecognise that these things have to be done,
and are willing to comply, they also need tounderstand that there is some logic behind
the initiatives that have been introduced”,
David Widdowson noted.
Airport authorities, for example, needto reconcile security measures andOne of the most prominent risk-based
measures in passenger aviation, the socalled ‘registered traveller’, has not been
implemented anywhere so far. The concept
is that volunteers provide information toallow security authorities to run backgroundchecks. Registered travellers benefit bybeing subjected to minimised security
procedures. This frees resources for tighter“It all comes down
to: is there a positive
perception of security?
Is there a positive
deterrence, as well,
for a terrorist toeffect an act?”
Mark Miller, cotEcnA

“Security is like aninsurance: when you
need the insurance,
it’s too late to sign
the contract.”
Vlad Olteanu, ACI
Europe72“If we want to choose
the approach oftarget-hardening, thenwe basically have toharden everything.”
Robert Poole, Reason
Foundation

security where risks are higher. The policy
would also facilitate the introduction of fullbody scanners, as not all passengers will be
subject to them.

because it diverts resources from areas
where risks are higher.

Risk-based approaches such as random
and intelligence-based screening, as well
as so-called ‘known shipper’ policies are
emerging in the field of cargo transport
and in maritime and surface transport.
The Authorised Economic Operator(AEO) program within the World Customs
Organisation (WCO) for example, allows
businesses to signal their low risk profile.
Although the AEO-status will not generally
lead to exemption from all other security
programs, as different layers in the security
system address different dimensions ofrisk, layered and risk-based systems suchas these deserve encouragement. In any
case they are very good substitutes for
extreme policies such as 100% scanning ofcontainers, which, even if it proves feasible,
might actually reduce overall security

Security is a global issue that calls for global
measures. In fact, businesses and countries
have no choice but to comply with a large
number of poorly coordinated parallel
security initiatives usually at a high cost tothem and their customers, and citizens.

Towards a multilateral approach

Mutual recognition or a more comprehensive
multilateral approach could reducecompliance costs and the cost of providing
security overall. Initiatives such as thosein the WCO or the Transport Security
Coordination Group of the EU and the US are
steps towards multilateralism. However, theideal of a global ‘one-stop security’ system
is not within mid-term reach. Countries havedifferent interpretations of WCO guidelines
concerning issues that are difficult toresolve in an area as sensitive as security.

Who pays and who should pay?

incentives for supplying security

Financing mechanisms for aviation security
are diverse with more emphasis placedon general revenue funding in the US andon user charges in the EU. The financing
of supply chain security is not verytransparent, but compliance costs tend to
be borne by supply chain operators andtheir customers as well as by government.

Supply chains are complex and evolve
quickly. Security needs to be embeddedin the operation of the chain, and should
be seen as an added value. Proceduresshould be resilient and flexible, implyingthat regulation cannot be strongly
prescriptive.

Given that the benefits of security accrue
to the general public as well as to travellers
or end-users of supply chain operations, a
mixed approach is defensible. However, auser-pays oriented approach holds morepotential for incentives to save costs, andspend revenues effectively.
Compliance with security requirements caninvolve large fixed costs, which are harder tobear for smaller firms or countries, and may
worsen their competitive position.

Supply chain operators are interested
in clear regulations as they help themdecide on how to invest and work towards
effective security provision. A clear andcommon regulatory requirement also
avoids competition on security issues
and facilitates the operation of alliances.
As Mark Miller noted: “The challenge isto try to reduce the complexity, while atthe same time addressing the security
issues. That is the important task of
the governmental side talking to theprivate sector.”73

harald Díaz-Bone
Senior International Civil Servant, United
Nations Framework Convention on Climate
ChangeJos Dings
Director, European Federation for Transportand Environment

christian Dumas
Vice President of Sustainable Development
and Eco-Efficiency, Airbus

Jasper Faber
CE Delft, Netherlands

74
Yoshitsu hayashi
Director, International Research Centre for
Sustainable Transport and CIties, Nagoya
University, Japan

Raphael von heereman
Head of Aeropolitical Affairs, Hapag-Lloyd
Flug GmbH, Hannover

Per Kågeson
Director, Nature Associates, Sweden

Andy Kershaw
Manager of Environmental Policy, British
Airways, UK

Per Magne Einang
Marintek –SINTEF

75
callum thomas
Professor of Sustainable Aviation,
Manchester Metropolitan University

Workshop 5:

Environmental impacts
of international transport

Workshop 5:

Environmental impacts
of international transport
Globalisation has accelerated economic
growth and changed patterns oftransport, resulting in increased
movement of both passengers and freightover long distances. The downside ofthis growth is the significant increase inemissions of air pollutants, greenhousegases, and other environmental impacts.
Conversely, the wealth generated makes
it possible to reduce these impacts
considerably with tools for cleaner
technologies and better managementof resources. The instruments chosen
to implement environmental protection
should be designed to maximise welfare
and reduce pollution as cost-effectively
as possible.

76

This highly solution-oriented workshop
examined opportunities for reducing
emissions in aviation and maritime
transport, and explored how best thesepotentials might be met.
Both maritime and aviation sectors haveachieved considerable improvements inenergy efficiency, leading to reduced
real transport costs, in turnincreasing demand“For this deal tosucceed, it is essential
to have the financeministries on board.”
Jasper Faber, cE Delft

Aviation and shipping have a naturalimperative to reduce fuel burn for both costand logistical reasons. This is even more crucial
for the aviation sector due to the inherent andessential energy requirements associatedwith carrying fuel aloft i.e. the lack of en route
fuelling stations. This has created a strong
focus on technologies that contribute to thisaim. Both sectors have achieved considerable
energy efficiency gains, with competitionenergizing the drive for improvements.

co2 emission trends in both sectors areout of phase with co2 reduction policies
agreed internationally
Limiting global warming to 2 degrees
Celsius (approximately 450 ppm CO2) by theend of the century implies steeply declining
emission trajectories for developed
economies. It is unlikely that the targets
associated with these trajectories (e.g.~80%
reduction by 2050) can be met without
the strong implication of the aviation andmaritime sectors.
there is a clear technical potential tofurther reduce co2 emissions from
air and maritime transport
Fuel consumption improvements of 15-20%
per aircraft generation can be expected
and are a commercial necessity in thecurrent market – though aircraft productcycles can span two decades.
Similarly new maritime vessel fuel efficiency
improvements are potentially around 1050% but average vessel life is close to three
decades, and so it will take time for these
improvements to cycle through the fleet.
Alternative fuels such as Liquid Nitrogen
Gas (LNG) for shipping, and biofuels
for aviation could represent important
potential lower-carbon fuel sources forvessels and aircraft.
Emissions trading can in principal deliver
cost-effective emission reductions
There was a consensus in the workshopthat some form of global market
mechanism will be necessary in order foraviation and shipping to reduce or offset
their CO2 emissions. Both fuel levies andModerator:
Anthony Venables,
Professor of
Economics, Oxford
University, UKemissions trading are being considered ininternational forums.
Experience within the European Trading
System has shown that trading systems
are only as strong as their weakest link –protection of the latter in order to avoid
carbon leakage erodes the effectiveness ofthe system. Partially ring-fenced trading
may be one approach to address this,though in principal this should only be atransitory measure.
With regard to global versus regional
trading, the workshop broadly concurredthat international aviation and maritime
transport should be treated on a consistentglobal basis; schemes might result in reduced
regional commerce but should soon be rolled
out internationally.

The Aviation Global Deal proposes aninternational system with differentiatedparticipation rules according to trip origin
and destination. Regional approaches havealready been agreed (e.g. aviation includedin the European Trading System from 2012).
Incentives for non-participating countries
to join trading systems could be provided by,for example, making new poor and emerging
economy entrants eligible for adaptationand mitigation funds generated by trading.
A trading system would generateconsiderable revenues, which may or may
not be spent on transport. Allocation of theserevenues to an international adaptation andmitigation fund (if agreed by the UNFCCC)
would be one way to get finance ministries
to agree to a partial hypothecation of thefunds that industry would like to see.

“Aviation must play its
fair share in dealing
with emissions and incontributing to global
emissions reductions.”
Andy Kershaw, British
Airways and Aviation
global Deal, UK

77“Although it would
be ideal to startwith a global scheme
covering emissions inall parts of the world it
might be necessary tostart with a regional
scheme that is
gradually expanded
into international
coverage.”
Per Kågeson, nature
Associates

78

Modal Workshops

79

These summaries are published on the responsibility of each partner organisation.
The opinions expressed and arguments employed do not necessarily reflect the views of
the International Transport Forum or of its member countries.

normand Boivin

candan Karlıtekin

Vice President of Airport
Operations, Montréal
Pierre-Elliott Trudeau
International Airport

CEO, Turkish Airlines

tim clarkcatherine lang

President, Emirates Airline

Acting Associate
Administrator for
Airports, Federal
Aviation Authority, USA

nick Fincham

hans-Martinniemeier

Director of Economic
Regulation and Competition
Policy, Civil Aviation Authority,
United Kingdom

Professor of Economics,
Bremen University ofApplied Sciences

David hamm
Director of Corporate
Real Estate, Delta Air Lines,
Atlanta80

Jos nijhuis
Amsterdam Airport
SchipholKarl-Rudolf Rupprecht

Ulrich Stockmann

Head of Hub Management,
Lufthansa, Frankfurt

MEP

Stefan Schulte

Rapporteur:David thompson

Vice-Chairman of the
Executive Board,
Fraport AG

Independent Expert

Dominic Schuster
Formerly Manager of Aviation Pricing and Economics,
Sydney Airports
Corportion Limited

hartmut Spickermann
Deputy Director-General
for Civil Aviation andAerospace, Federal Ministryof Transport, Germany

81organised with:

Modal Workshop 1:

gateway Airport investment andDevelopment of Airline Services
for a global Economy

Modal Workshop 1:

gateway Airport investment andDevelopment of Airline Services
The workshop, chaired by Jeff Shane,
examined the development of gateway
infrastructure for aviation. It focussed on
financing airport infrastructure throughairport charges in light of the competitive
interaction between airports and airlines.
Participants discussed the circumstancesin which pricing and investment should
be regulated, and how this might besuccessfully done.

82

The workshop brought together airlines,
airports, and regulators to explore ways
to improve the functioning of the aviationindustry to ensure adequate airport
infrastructure. The exchange focussed on
ensuring that in the future airport charges
foster airport and airline developmentthat best serves the interests of both air
passengers and the wider community.
Until recently, most airports were owned
and managed by public authorities. Since
the mid-1980s, however, a growing numberof airports have been fully or partiallyprivatised. This development has driven
airports – even publicly owned ones – tobecome more commercialised and hence
more profit oriented.

“A sound and reliable
regulatory environmentis one of the key
elements for a safe,
secure and economically
successful aviation
market.”hartmut Spickermann,
Federal Ministry oftransport, germany

Transport infrastructure is essential
for economic growth. Adequate airport
capacity, where it is needed most, iscrucial to allowing the global economy togrow. Present regulatory arrangements
are not efficient because the airline andairport markets have changed enormously
over recent years. There is room for
improvement. The challenge is to create
conditions for efficient infrastructuredevelopment in a sector where in certain
circumstances airports have market power
and might abuse this position.
Market power and regulation
Though market power may exist in somecircumstances it is not inherent to any
particular category of airport and probably
not present in most airports. Diagnosing
where there is the potential for market

Moderator:
Jeff Shane,
Partner, Hogan
and Hartson LLP

a regulator that is independent andaccountable,
operatingunderatransparent set of rules and objectives.
The regulator should have the flexibility
to apply regulation where necessary, andonly where necessary, reflecting variations
in market power across markets and overtime. The purpose of economic regulation
is to protect consumers from abuse of
market power, where dominance cannot
be dealt with through general competition
law. This should be its only objective.
“We have a very sophisticated and effectivemeans of regulating anticompetitive
behaviour across all sectors of theEuropean economy. It makes no sense to
add additional regulation over and above
that, unless there is a market power
problem that is much more than the
problem that legislation is designed to deal
with.” nick Fincham, Director of Economic
Regulation and Competition Policy, Civil
Aviation Authority, United Kingdom

power abuse requires an evidence-based,case-by-case examination of the scope of,and scope for, competition in the current
circumstances, airport by airport. It is
important that regulatory intervention
only occurs where it is actually needed
as it is costly in terms of administrative
effort and altering the market.
Aviation requires economic regulation,and to be fully effective this requires“We at Schipol
Airport really love
our regulators, butsometimes a little voicein my head says: ‘Whyso many?’”
Jos nijhuis, Schiphol
group

83

Competition is the preferred means to control
market power. Yet, it is currently not strong
enough to make regulation redundant.
Increasing competition through more open
skies agreements and a gradual extensionof the use of market-based approaches toallocating landing rights could reduce thenumber of airports that require regulation.
Purely administrative allocation of slots
carries the risk of creating disincentives
for investment in airport capacity androbs the market of information on thevalue of capacity at busy airports whereslots are scarce.

“Cost-based regulation
is a major cause for thepoor performance of
airports.”
hans-Martin niemeier,
University of Applied
Sciences, Bremen

84“I think there will bea move to examine
exactly what alliances
do and how they
operate to ensure thatthe consumer is notcompromised in any
other way.”
tim clark, Emirates“It’s fine to say we don’t need any regulation,
but then we need the right of ownership of
the slots, we have to have the right to charge
the end customer directly or to charge peak
prices. If there is no acceptance on this, thenwe need some kind of cost plus, WACC-based
regulation, otherwise we have no incentive
to set up additional infrastructure.”
Dr. Stefan Schulte, Chairman of theexecutive board, Fraport AG
All regulatory controls on the pricing ofaviation services carry the risk of getting
investment incentives wrong. This isparticularly true of cost plus regulation, where
airports are allowed to charge rates thatcover their costs, plus a ‘fair rate-of-return’.
This type of regulation, which goes back to
the Chicago Convention of 1944, provides
them with little incentive not to be wasteful.
Even if they spend more than necessary, they
still earn the same profit. This creates an
incentive for gold plating or making unwise,
but capital-intensive investments.

Price caps have the advantage of leaving
pricing structures to the airport but areless transparent. In either case, regulation
should be based on forward costs, nothistorical costs, in order to provide forinvestment incentives. A number ofregulators are beginning to experimentwith this key reform. It follows that theprices for aviation services should be able
to rise above current costs in periods ofscarcity of capacity when capital needs tobe raised for investment. They can also be
expected to fall below costs when there isexcess capacity, although for long-term
agreements with airlines average costs
remain relevant.
cooperation between airlines andairports
Close cooperation between airlines andairports is essential to meeting demandand providing good quality services.
Agreements between airlines and airports
on pricing, investment, and levels of service

are frequently employed to manage
business risks. Such agreements can
carry risks of discrimination in the accessto airport facilities given to other airlines,
although instances of this are unusual.
The agreements need to be transparent
and subject to monitoring by regulators.
Alliances between airlines, with some of themembers holding such agreements with
airports, account for an increasing shareof the world passenger market and merit
increased monitoring by regulators. National
competition authorities hold sufficient
powers to address international alliances
but regulators need to pay attention to theimpact of alliances in international as well as
national markets, on a case-by-case basis.
Liberalisation of aviation markets has
contributed to accelerating globalisation.
This combined with privatisation of mostairlines and now many airports has changed
aviation markets rapidly and profoundly.
Regulatory models have tended to evolve
more slowly and need reform if they are not
to become a drag on global growth.
Much remains to be learned for improved
regulation and there is much to be gained fromexchanging experience between regulators,
airports, and airlines around the world.

85

Janusz lacny
President of JMJ–TRANS and President of
the International Road Transport Union

Pierre latrilleCounsellor, Trade in Services Division, World
Trade Organisation (WTO)

Kunio Mikuriya
Secretary General, World Customs
Organisation (WCO)86Eva Molnar
Director of Transport Division, United
Nations Economic Commission for Europe(UNECE)graham Smith
President, Passenger Transport Sector, IRU

87

organised by:Modal Workshop 2:

Road transport: Promoting global
trade, travel and Development

Modal Workshop 2:

Road transport: Promoting global
trade, travel and Development“No country is landlocked for roadtransport.”
Janusz lacny,iRU President

The joint ITF-IRU Workshop brought
together ministerial, business, and academic
representatives, as well as high-levelspeakers from the WTO, WCO, and UNECE.
The discussion revolved around two central
questions:• How can promoting and facilitating roadtransport drive trade, tourism, progress,
and prosperity?
• How can international regulatory tools
be used to benefit trade, travel, and roadtransport?
Road transport and the downturn88“We still have a long
way to go before we– public and private
partners – can claimthat we have placedbuses, coaches andtaxis at the heart ofthe policy attention
and care.”graham Smith, iRU

Government and industry data draw a
bleak picture, pointing to a decrease in roadfreight transport activity of up to 50%,
a doubling of bankruptcies, a dramaticincrease in unemployment (permanent or
temporary layoffs), which already amounts
to 140 000 jobs in the EU, 120 000 jobs in
the CIS and 200 000 jobs in North America.
IRU President, Janusz lacny, stated:“Road transport, in this time of economiccrisis, can help drive economic recovery.
But it needs to be promoted and further
facilitated by appropriate governmental
measures to be taken urgently – as for thebanks – at the national and international
level in order not to repeat the historicalerrors of the Great Depression of the
1930s, where the economic crisis was
exacerbated by the halt in transport andtrade.”
Measures to support the road transport≈industry
Mr Lacny identified a series of regulatory
and fiscal measures to be implemented bygovernments at national and international
levels to support the road transportindustry. These measures include:• Introducing real business incentives forsafer and cleaner vehicles;• Modifying insolvency legislation to allow
road transport companies in economic
distress to reduce transport capacityand pursue profitable business
operations only;• Inducing financial institutions toprovide adequate credit lines totransport operators;• Reassessing and reducing current taxes;• Ensuring open markets and striving forthe completion of the WTO Doha round;Moderator:
Umberto de Pretto,
Deputy Secretary
General, IRU• Intensifying efforts to eliminate neoprotectionist barriers to internationalroad transport.

level cannot be deteriorated and making
this level available as a minimum to all WTO
Members.

The passenger road transport sector also
suffers from shrinking tourist demand.
graham Smith, IRU Vice President,
appealed to policy decision makers at
local, national or international level to fully
support the industry by doing away withartificial barriers, such as unjustified banson entering touristic cities or unfoundeddriving and rest time restrictions.

The World Customs Organisation (WCO)
shares with IRU the common objective of
reducing the time needed for completing theborder procedures. “I would like to cooperate
further with the IRU to create synergies
that will assist to identify bottlenecks andpotential solutions by utilizing tools ofboth organisations” Kunio Mikuriya, WCO
Secretary General, elaborated.

Eva Molnar pointed out that countries
could help their enterprises become morecompetitive by offering low transaction costs
and time, and high levels of predictability
and reliability. This particularly applies tothe two main areas of shippers’ concerns,
border crossing, and transit conditions.
Multilateral approaches
On the multilateral field, Pierre latrilledrew attention to two World Trade
Organisation (WTO) tools, which may
facilitate road transport: GATT and
GATS. Within the framework of GATT,a newly planned WTO Agreement on
trade facilitation will increase trading
opportunities
significantly,
reducetransaction costs, speed up border crossing
procedures, and create a more transparent,
predictable and efficient environmentthat reduces discrimination. GATS
commitments guarantee the conditions ofoperation of foreign services suppliers at
a certain negotiated level of market accessand national treatment, ensuring that this“EU road freighttransport liberalisation
has been a successstory. This is one of thebest practices in the
global kaleidoscope.”
Eva Molnar, UnEcE

the new Eurasian land transport
initiative (nElti)
Announced as a ‘reality check’ on where
we stand in the field of road transportfacilitation, igor Rounov, General Delegate
to the CIS Region (IRU) presented ashort video clip on the New Eurasian Land
Transport Initiative (NELTI). He reported
that Euro-Asian road infrastructure
does not present a major impediment tocommercial haulage, and encouraged
governments to remove existing bottlenecks
and create a ‘green light’ for the movementof trucks between Europe and Asia.
The panellists agreed that road transport
has to be facilitated, notably through theratification and global implementation of
the UN Conventions (TIR, ADR, AETR CMR
and Harmonization of Frontier Controls), as
well as the use of the Web-based applications
recently developed by the IRU to allow
governments to meet their UN and EU
obligations (TIR Electronic Pre-Declaration,
IRU real-time SafeTIR and the IRU Borderwaiting Time Observatory).

89“Road transport has no‘group of friends’ in the
GATTS. This may reflecta kind of cautiousnessof your trade andtransport ministry
negotiators towards
liberalisation in roadtransport because
there is a tradition ofbilateralism and – up
to a certain extent– ofprotectionism.”
Pierre latrille, Wtohartmut Albers

Juliusz Engelhardt

CEO, Trans Eurasia
Logistics

Undersecretary ofState, Polish Ministry of
Infrastructure

Ed Burkhardt

camiel Eurlings

President of Rail World
Inc. of Chicago, Illinois

Minister of Transport,
Public Works andWater Management,
Netherlands

Michael clausecker

Francisco José
cardoso dos Reis

Director–General, UNIFE

CEO, Portuguese
Railways90

Bert Klerk

Moritz leuenberger

Chairman, ProRail,
Netherlands

Federal Councillor, Headof the Federal Departmentof Environment,
Transport, Energy
and Communications,
Switzerland

Eberhard von Koerber

Mauro MorettiManager and Vice
President, Club of Rome

CEO, Ferrovie dello Stato

Klaus Kremper
CEO, DB Schenker

91

organised by:Modal Workshop 3:

Railways in a globalised World

Modal Workshop 3:

Railways in a globalised World

92“Transport of 100
tonnes of goods fromBasel, Switzerland toRotterdam, Netherlands
by train produces 87%
less CO2 emissions than
the transport of thesame amount by road.”
Eberhard von Körber,club of RomeThis workshop addressed the subject of how
railways can contribute to solving the dual
challenges of the financial crisis and climatechange. The competitiveness of rail also cameunder scrutiny, with indications on how theposition might be improved, in particular oninternational freight corridors.
Panellists agreed on the major advantage ofrail in reducing carbon emissions, as well as its
long-term role in economic growth. However, it
was felt that rail is hampered by disparities ininfrastructural investment when compared to
the road sector, as well as nationally derived
technical and administrative differences.
The latter frustrates cross-border services
and consequently impedes international
competitiveness. Investment should comefrom both the private and public sector andwill help facilitate a ‘level playing field’ relative
to the automotive sector.
Rail has an important role to play intackling the European Union’s objectives

for emissions reductions. Furthermore,investment provides opportunities toalleviate unemployment, both supporting
infrastructural development and in relation
to maintenance of new rolling stock.
Currently rail is constrained in its ability tocompete with road, but development of bothnew high-speed lines and conventional freightroutes would increase the attractiveness ofrail. Investments can be directly linked totargets for emission reduction. Francisco
José cardosco dos Reis of Portuguese
Railways (CP) cited targets of 35% reduction
in passenger rolling stock emissions and
80% in freight from CP’s current investment
in new rolling stock.
Three inextricably linked challenges arepresented by the financial crisis, energy
supply, and climate change. Focusing
specifically on climate change and the‘green recovery’, Mr von Koerber of theClub of Rome was hopeful that the emotion
generated by the current crisis could beModerator:
Eva Molnar, Directorof Transport Division,
United Nations
Economic Commission
for Europe (UNECE)

used constructively. Over 4 trillion dollarsof stimulus packages provide a unique
opportunity. Yet the proportion of funding
allocated to rail is not representative of its
environmental contribution. At a European
level only 1.8% of all ‘green investment’ isallocated to rail. In Germany this amounts
to 1.3 billion euros (1.6%) of an €80 billion
package, demonstrating public investment
clearly favours roads. Since 1970, rail
infrastructure has declined, whereas
the road network has tripled in size. The
implications are that either the railway
industry is falling short in its lobbying
approach, or that the environmental
leverage of rail is underestimated. Yet,facts demonstrate the clear environmental
argument in favour of rail.

Moderator:
Dr. Friedrich Thelen,
Thelen-Consult

Policy makers can contribute not only bycommitting to investment, but also ‘levelling
the playing field’, for example, removing VAT
from rail fares.

Switzerland provides an excellent exampleof how political will can shift the paradigm
in favour of rail, with a rail freight market
share of 40%, as compared to 16.8% in restof Europe. Furthermore, private investment
needs to be coupled with public sector
funding for the sector.

Being a national entity is both a strengthand a weakness for railways explained
Moritz leuenberger, Minister of Transport,
Switzerland. In Switzerland, there is a great
deal of national pride in railway punctuality
and engineering. This is seen as a positive
advantage in the sense that the public has
shown its support for rail, voting in favourof infrastructural developments such as
the Trans-Alpine rail projects. Railways
are also seen as positively contributing
to employment. On the downside, bordercrossings remain hampered by bothadministrative and technical discrepancies,
and ETCS is not yet working at a PanEuropean level. The question that remains
is whether governments can legislate overthe subject of mobility, an entrenchedindividual desire, which is currently shapedand dominated by the automotive industry
in many states.

Representing the rail industry association
UNIFE, Michael clausecker pointed toevidence of investments in infrastructure
having a direct correlation with economic
growth and increased demand. Investmentin the high-speed network in Spain has beenaccompanied by 2.5% economic growth.
Both Paris to London and Brussels to London
rail routes have a market share in excess of
70%. The Madrid to Barcelona high-speedline, opened a year ago and already has amarket share of 53%; these investments
also benefit the environment.

Representing independent railway infrastructure managers, Bert Klerk of ProRail
fully endorsed investment in rail as a means
to support economic recovery, and to help
reduce the transport sector’s CO2 footprint.
In the EU alone, transport is responsible for
27% of CO2 emissions, of which over 70%
are generated by road transport. Unlike
other sectors, transport emissions continue
to grow, as individual mobility cannot be
controlled. Although rail is ‘green’ and has
a substantial upper hand, performance canstill be improved.

“Every single passenger
that shifts mode fromthe plane to the train
reduces their carbon
footprint by 90%.”
Michael clausecker,
UniFE

93

“If we want to use
the current crisis tohave a sustainable,
environmentallyfriendly politicalframework for
railways, we needcertain rules.”Moritz leuenberger,
Minister of transport,
Switzerland

“If this focus takes
place, rail will emerge
more competitive
after the crisis.”
Klaus Kremper, DB
Schenker

Investment is taking place in many member
states. Both France and Spain are investingin the expansion of high-speed rail while
Germany is implementing ERTMS on freight
corridors. In the UK, there are plans for
new high-speed projects and electrificationof the busiest lines, and the Netherlands haslaunched a 140 million euro acceleration
package targeting the rail sector. However,whilst Europe is progressing with investmentin this respect, China leads the way.
ProRail and the Club of Rome agree thattechnical compatibility continues to limit
international interoperability and resolving
issues can take a considerable period of time.

94“Rail should win on its
own merits and become
truly competitive in theinternational market.”camiel Eurlings,
Minister of transport,
netherlands

Discussions
surrounding
competition
endorsed the involvement of the private
sector to increase liberalisation, although
Portuguese national operators (CP)pointed to their social duty to protect theirworkforce which automatically limits truecompetitiveness. Mr Leuenberger pointed
out that shifting traffic to rail also alleviatesroad congestion. Mr Clausecker fromUNIFE stated that prices influence market
behaviour, highlighting the Swiss exampleof taxes on trucks that has resulted in a
30% reduction in empty trucks, and thecongestion charge in London reducing carson the roads by 25%.
If rail freight services are to compete onroutes between Western Europe, Russia
and Asia, there have to be regular, reliable
services, hartmut Albers, Managing Director
Trans Eurasia Logistics confirmed, also
pointing out the considerable potential toreduce journey times and therefore increase

competitive advantage, through both political
will and simplified cross-border processes.
Whilst political discussions are working
towards the removal of both technicaland administrative bottlenecks, national
borders are still a constraint to theefficient passage of railfreight, with only
60% of goods arriving on time. The sector
needs to be stronger to compete, not only
by investing but also by ensuring betteruse of existing infrastructure, according tocamiel Eurlings, Minister of Transport for
the Netherlands.
Mr Eurlings advocated the developmentof rail corridors across Europe, from
North to South and East to West, pointing
to the example of Rotterdam, Duisburg,
Basel and Geneva, as a model for potential
throughout Europe. Klaus Kremper, CEO
DB Schenker, agreed that rail is a desirable
form of transport for long distance, but
requires interoperability. Mauro Moretti,
CEO of Italian State Railways (FS) and CER
Chairman, also spoke of the challenge ofinteroperability between national system,suggesting that to overcome these issues,
investment at a European level would be
required, transcending national investment.
If rail is to increase its share of the rail freightmarket, it needs to focus on the 3 main issues
that impede rail’s competitiveness, namely
technical, administrative and commercial
constraints.
The rail sector in Europe is guilty of
not applying best practice in its use oftechnology, Ed Burkardt, president of RailWorld Inc., stated. Mr Burkardt pointed
to examples of technologies used in North
America such as increased axle loads andvehicle lengths, cast wheels, automatic
couplers, and automated cross border
documentation processes.
The development of inter-European
rail travel is a long standing issue, yet
problems persist with signalling andlanguage systems for drivers as wellas harmonisation of driver licences,
Mr Enkelhardt, Undersecretary ofState, Polish Ministry of Infrastructure,stated. Varying track width is anotherconsideration that impacts the TransSiberian railway network, yet there is alack of impetus to develop an automaticgauge changing system. Poland is a goodbase to facilitate transport between theeast and west.
In the example of Germany, DB has worked
hard to improve its competitiveness inanticipation of potential privatisation. With
300 competitors in Germany, DB has still
managed to be successful. Nevertheless,
DB has only 25% of the intermodal market
in Europe, therefore most of the traffic is
still road-based.
Rail should be more competitive, butcurrently it does not operate on a levelplaying field. Its marketing should be
improved and technical improvements
created, but fundamentally there is aneed for improved European legislation in
relation to internalising costs.

“Given the low
environmental footprint,
the best contribution
the rail sector can maketo the environment is toincrease its share of thetransport market. The
climate is right for rail.”
Bert Klerk, ProRail95

Simon Bennett
Secretary, International Chamber of
Shipping (ICS)

till Braun
Senior Manager, Germanischer Lloyd AG

Mark Brownrigg
Director-General, UK Chamber of Shipping96

colin cridland
Head of Market Analysis, Clarksons

Jörg habicht
Director of Regulatory Affairs andCompliance, Hapag Lloyd AG

Miguel Palomares
Director of the Marine Environment Division,
International Maritime Organization

97

organised by:Modal Workshop 4:

international Shipping:global Regulations for a global industry

Modal Workshop 4:

International Shipping:
Global Regulations for a Global Industry“The shipping industry
must prepare for avery rough ride in 2009and possibly in 2010.”
Jörg Habicht,
Hapag Lloyd98

In recent years, the global shipping industry
has enjoyed an exceedingly buoyant trading
period, for many markets the best in
living memory. This period, however, cameto a sudden and dramatic end when thecurrent economic crisis severely impacted
the shipping industry. Despite the current
crisis, the shipping industry needs to
avoid resorting to protectionist measures.
Equally, there is an ongoing imperative to
reduce carbon emissions – an urgency all
sectors have to address independent ofvolatile markets.
These areas of concern were addressed in theworkshop’s two sessions – the first focussing
on the global role of shipping, and the secondon energy efficiency. The workshop waschaired by Tom Leander, editor of Lloyd’s List,and organised by the International Chamberof Shipping (ICS) and the International
Maritime Organisation (IMO).
The global role of shipping
As shipping is inherently dependent on theeconomy, the drop in trade, following the
beginning of the credit crunch in late 2008,
has translated into a dramatic reduction indemand for shipping.
The first to be impacted was container
shipping. By spring 2009, some 10% of
the fleet was already redundant. This wasfollowed by a downfall in dry bulk tradevolumes and, by April 2009, aa sharp
decrease in requirements for crude,
product, and chemical tankers.
States may be inclined to respond to thecrisis with protectionist measures, a major
concern for the ICS national shipowners’
associations, who urge governments toavoid such steps, as they would only serve tofurther damage world trade.
The shipping industry faces the additional
challenge of being one of the very few
industries not covered by a global multilateral
trade agreement. And the prospect of a
new agreement under the auspices of theWorld Trade Organisation (WTO) looks
increasingly uncertain. The industry must
therefore be vigilant in responding to any
moves towards protectionism in maritime
trading, including those using safety andsecurity as a pretext.
The shipping industry is calling for aregulatory ‘level playing field’ to enable itModerator:
Tom Leander, Editor,
Lloyds List

to operate competitively and efficiently.
Furthermore, it calls for the reliability
now provided by the tonnage tax regime
applying to shipowners in many countries
to be maintained throughout the crisis.

The industry hopes that the UNFCCC willagree that the development of detailed
measures relating to carbon emissions forshipping should be developed and enacted
by the IMO.

Facing both environmental and economic
pressures, there is likely to be a considerable
increase in the number of older vessels being
dismantled and recycled. To this end, there
is increasing pressure on governments
to identify facilities acceptable for thispurpose. However, financial pressures mustnot be allowed to reduce standards, whichhave seen considerable progress in thelast 20 years with regard to safety andenvironmental performance.

Industry points to already significant
achievements in this regard: The amountof CO2 emitted per tonne-mile of cargo
carried by sea has been steadily reduced,
and ships have increased their efficiency
more than any other transport mode. To
put the current level of carbon emissions
from shipping into perspective, the Second
IMO GHG Study 2009 estimated it to beapproximately 870 million tonnes annually,
which accounts for just 2.7% of the global
total figure.

Notwithstanding the current economic
challenges, it was widely acknowledgedthat the long-term outlook for the shipping
industry remains highly positive.
Energy Efficiency: A priority in a time of
economic downturn
Irrespective of the economic downturn, thereduction of carbon emissions is one of themost pressing issues facing the world today.
The shipping industry notes that it is themost fuel-efficient and carbon-friendly
form of commercial transport, and thisshould promote its increased market
share. In terms of environmental aspects,
the maritime industry is anticipating thenext stage of climate change policies, tobe considered at the UN Conference in
Copenhagen (COP 15) in December 2009,
under the banner of the UN Framework
Convention on Climate Change (UNFCCC).

In preparation for the coming talks within
the IMO and the UNFCCC, the industry
anticipates additional encouragement
for the sector in the form of a financial
or market-based instrument to bridge thegap between practical reduction measuresand political demands. This instrument
could also be used for offsetting systems
such as reforestation or be invested
in eco-research for ship design andconstruction. Opinion as to whether this
could be best achieved through a carbon
trading market or some form of levy was
evenly balanced.
The workshop concluded that reducing
CO2 in the global shipping industry could
only be achieved through the introductionof a new non-discriminatory global
maritime regime, developed under the
auspices of IMO.

“Shipping’s global
importance can not be
underestimated as it
literally underpins world
trade and the global
economy.”Miguel Palomares, iMo

99

100

A Focal Point of Exchange

101

Prize-Winners 2009
The International Transport Forum awarded
two prizes at this year’s Forum in Leipzig:
a Young Researcher Award and a Prize forInnovation in Transport and Logistics along
the Global Supply Chain.
The Young Researcher Award 2009 was
attributed to Jérôme Verny, of the Rouen
Business School in France for his paper on“Container Shipping on the Northern Sea
Route”.

102

In his paper, Jérôme underlines the new
economic geography engendered by the
rapidly increasing mobility of people andgoods across borders that has emerged sinceWorld War II. Jérôme notes that four decadesof uninterrupted growth in container traffic
have raised questions regarding the capacityof the traditional international trade network.
He looks at issues surrounding the viability of
the Northern Sea Route as a possible traderoute for containerised goods between Europe
and Asia given global warming considerations.
The Jury highlighted in particular theoriginality of the approach adopted by Jérôme
Verny in his paper and the scientificallyrooted analysis he developed in his research.
The Prize for innovation in transport andlogistics along the global Supply chain
was attributed to Baxter international
European Distribution centre, Belgium forthe ‘Transportation of healthcare products
by inland navigation’ initiative. The Belgianbased European distribution centre for
Baxter International, a global healthcarecompany, launched this initiative to improve
speed and reliability, lower transport costs

and emissions, and improve overall efficiencyof the supply chain in the Benelux region.
Through this initiative, Baxter shifted all of
its incoming containers from the deep-sea
ports of Antwerp-Rotterdam and Zeebrugge
off trucks and onto inland navigation barges.
With this container traffic now entirely on
inland waterways, Baxter has decreased its
transport costs by 23%, while maintaining
efficiency through increased reliability – aclear preference for consistently on-time
deliveries over speed – virtually no congestion
costs, and huge reductions in CO2 emissions.
The jury also attributed a special Jury
Mention to APl logistics, Oakland, California,
USA., in recognition of the special attention
to timely and reliable services offered by the
OceanGuaranteed initiative.
The OceanGuaranteed Service was designed
to create an ocean-based alternative to
air freight for shippers from Asia to North
American of less-than-container-load (LCL)
cargo. It offers a faster LCL service with daydefinite delivery guarantee not offered before
to shippers in this geographic zone.

Forum Exhibition
list of Exhibitors:• AustriaTech - Gesellschaft des Bundes fürtechnologiepolitische Maßnahmen GmbH• APL Logistics• Bundesministerium für Verkehr, Bau undStadtentwicklung• Deutsche Bahn AG• Deutsche Lufthansa AG• Deutsche Post DHL• Elsevier• EC – European Commission• Fraport AG• Customs and Tourism Enterprises (GTI)• GVZ Entwicklungsgesellschaft mbH• International Road Federation (IRF)• International Road Transport Union (IRU)• International Transport Forum• Japan International Transport Institute(JITI)• Jérome Verny (Young Researcher Award)• Metropolregion Sachsendreieck• OECD• ROBOT Visual Systems GmbH
• 16th ITS World Congress• ThyssenKrupp GfT Bautechnik GmbH
• Transport Canada• UNECE Transport Division• Union Internationale des Chemins de Fer(UIC)• UNIFE

103

Field Visits and Social ProgrammeInterested participants of the ITF 2009 were offered several interesting fieldtrips to
nearby places of interest.

104

Deutsche Post DHL welcomed visitors in its
state-of-the art air hub in Leipzig/Halle. The
new hub sets industry standards with thelargest sorting system in Germany and a
hangar with a floor space of 27 500 square
metres. It already provides more than 2 000
new jobs. Leipzig/Halle is one of the mostimportant hubs in DHL´s global network. In
any working day about 50 freight airplanes
use the new airport and handle more than
1 000 tonnes of freight.

BMW’s manufacturing plant is one of themost modern automobile manufacturing
plants worldwide. Since 2005 the plant
manufactures vehicles for customers
throughout the world. The production
includes the BMW 1 and 3 class – vehicles.

leipzig Mail order centre
The Leipzig mail order centre is one of
the most up to date and largest service
providers in the world. Built on the groundsof the former Leipzig-Mockau airport, theplant is considered an important reference
point for modern logistics solutions.

A cliMAtE nEUtRAl EVEnt
The emissions resulting from the organisationof the annual International Transport Forumare being offset through a renewable energy
programme in eastern China. A wind farmthat has been constructed and put into
operation in the Fujian Province produces
approximately 95,600 MWh of clean
electricity per year.

children’s University
A popular concept throughout Germany, theChildren’s University aims to engage children
and adults in a meaningful discussion onsocietal issues.
This year again, Leipzig schoolchildren were
bursting with creative ideas, proposing
among others:• introducing a range of carbon-neutral cars
powered by the effervescence of soda water• flooding city streets to make way foramphibian hydroelectric vehicles

the receptions organised by the LeipzigHalle Airport and the Turkish presidency,
as well as a gala dinner on the last evening,allowed the participants to conclude theconference days in a relaxed atmosphere.

A two-way dialogue with Ministers Tiefenseeand Leuenberger also saw the children polledon the introduction mandatory helmets for
cyclists in Switzerland.

105

20 International
10 Transport Forum

Transport and Innovation

the international transport Forum 2010transport and innovation
Unleashing the Potential

26-28 May 2010 in leipzig, germany

transport needs innovation.
Transport is coming out of a deep recession.
The sector has been hit hard, with company
closures, job losses and damages to the
supply chains.
How can it respond? Is innovation in policy
and productivity the key for the sector
emerging stronger from the downturn?
The 2010 Forum promises to be exciting, as
we focus on the role of innovation in building
the transport sector of tomorrow:• What makes innovation a driver ofsustainable economic growth?
• Why does the transport sector need to beinnovative now?
• Which factors influence innovation intransport?
• How can transport innovate to respond toclimate change?
• Which technological innovations can we
expect in the future?
• What policy innovations are being
considered and implemented?
• What are the barriers to innovation andhow do we overcome them?

The 2010 Forum will provide a unique
opportunity both to explore these topics
and to build upon the outcomes of the 2008
and 2009 Forums, making linkages between
climate change, the global downturn andinnovation.
Join us to be part of the debate of ourtransport future!
For further information on the 2010 Forum:
www.internationaltransportforum.org

107Alphabetic list of Speakers• Agron, Earl – Vice President, Security & Environment,
APL Limited (p. 68-70)• Albanese, Anthony – Minister for Infrastructure, Transport,
Regional Development and Local Government, Australia (p. 27-28)• Albers, hartmut – CEO, Trans Eurasia Logistics (p. 90-94)• Arndt, Matthew – Head of Rail and Road Division, European
Investment Bank (p. 62-66)• Attali, Jacques – Economist, Writer (President and Founder,
PlaNet Finance) (p. 14)• Atılgan, cumhur – General Manager, RODER, Turkey (p. 36-39)• Bakker, Peter – CEO, TNT (p. 30-34)• Bennett, Simon – Secretary, International Chamber of
Shipping (ICS) (p. 96)• Bernadet, Maurice – Professeur, Laboratoire d’Economie desTransports, University of Lyon, France (p. 60-61)• Boivin, normand – Vice President of Airport Operations,Montréal Pierre-Elliott Trudeau International Airport (p. 80)• Bonnafous, Alain – Professor of Economics, Laboratoired’Economie des Transports, University of Lyon, France (p. 62)• Braun, till – Senior Manager, Germanischer Lloyd AG (p. 96)• Brooks, Mary – William A. Black Chair of Commerce, Dalhousie
University, Canada (p. 37-38, 54)• Brownrigg, Mark – Director-General, UK Chamber of Shipping(p. 96)• Burkhardt, Ed – President of Rail World Inc. of Chicago, Illinois(p. 90)• Bussereau, Dominique – Secretary of State for Transport,
France (p. 40-43)• cardoso dos Reis, Francisco José – CEO, Portuguese Railways(p. 90)• castelli, Roberto – Vice Minister for Infrastructure andTransport, Italy (p. 40-43)• clark, tim – President, Emirates Airline (p. 80-84)• clausecker, Michael – Director–General, UNIFE (p. 90-93)• cochrane, Robert – Independent Transport Consultant,London (p. 60-64)• crane, Melinda – International Broadcaster and Journalist(p. 27, 33)• cridland, colin – Head of Market Analysis, Clarksons (p. 97)• Díaz-Bone, harald – Senior International Civil Servant, United
Nations Framework Convention on Climate Change (p. 74)• Díaz-Rato, Enrique – CEO, Cintra (p. 40-42)• Dings, Jos – Director, European Federation for Transport andEnvironment (p. 74)• Dixon, Patrick – Chairman of Global Change Ltd., UK (p. 48-49)• Dragnich, george – Executive Director for Social Dialogue,
International Labour Organization (p. 30-34)• Dumas, christian – Vice President of Sustainable Development
and Eco-Efficiency, Airbus (p. 74)• Einang, Per Magne – Research Director, Marintek, SINTEF (p. 75)• Engelhardt, Juliusz – Undersecretary of State,Polish Ministryof Infrastructure (p. 90)• Eurlings, camiel – Minister of Transport, Public Works andWater Management, Netherlands (p. 24-29, 90-94)• Faber, Jasper – CE Delft, Netherlands (p. 74-76)• Fei, Weijun – Deputy Director, Waterborne Transportation
Institute (p. 54)• Felber, christian – Speaker, Attac Austria (p. 30-34)• Fincham, nick – Director of Economic Regulation andCompetition Policy, Civil Aviation Authority, United Kingdom(p. 80-83)• garber, Stefan – Board Member, Deutsche Bahn AG, Germany(p. 62-65)• goehr, Axel – Director Air Transport Policy, Federal Ministry ofTransport, Building and Urban Affairs, Germany (p. 70-71)• gowing, nik – International Broadcaster and Journalist (p. 43)• grau tanner, carlos – Director, Government and Industry
Affairs, International Air Transport Association (p. 46-51)• grube, Rüdiger – CEO, Deutsche Bahn AG (p. 24-26)• habicht, Jörg – Director of Regulatory Affairs and Compliance,
Hapag Lloyd AG (p. 97-98)• haji-ioannou, Stelios – President, easyGroup PLC (p. 30-34)• hamm, David – Director of Corporate Real Estate, Delta Air
Lines, Atlanta (p. 80)• hayashi, Yoshitsugu – Director, International Research Centre
for Sustainable Transport and CIties, Nagoya University, Japan(p. 74)• von heereman, Raphael – Head of Aeropolitical Affairs,
Hapag-Lloyd Flug GmbH, Hannover (p. 75)• hoon, geoff – Secretary of State for Transport, UK (p. 31-34)• hunold, Joachim – CEO, Air Berlin (p. 24-28)• ikenson, Dan – Associate Director, Centre for Trade Policy
Studies, CATO Institute, Washington (p. 58-60)• Jankowski, Maciej – Undersecretary of State, Ministry of
Infrastructure, Poland (p. 40-43)• Jeekel, hans – Ministry of Transport, Netherlands (p. 54)• Kågeson, Per – Director, Nature Associates, Sweden (p. 75-77)• Karlıtekin, candan – CEO, Turkish Airlines (p. 24-27, 80)• Kazatsay, Zoltán – Deputy Director-General for Transport
Activities, European Commission (p. 57)• Kershaw, Andy – Manager of Environmental Policy, British
Airways, UK (p. 75-77)• Klerk, Bert – Chairman, ProRail, Netherlands (p. 41-43, 91-95)• Kocsis, Andrea – Ver.di Trade Union, Germany (p. 58-61)• von Körber, Eberhard – Manager and Vice President, Club ofRome (p. 91-92)• Kremper, Klaus – CEO, DB Schenker (p. 91-94)• Kubiš, Ján – Executive Secretary, UN Economic Commission for
Europe (p. 36-39)• lacny, Janusz – President of JMJ–TRANS and President of theInternational Road Transport Union (p. 36-39, 86-88)• lahood, Ray – U.S. Secretary of Transportation (p. 16)• lang, catherine – Acting Associate Administrator for Airports,
Federal Aviation Authority, USA (p. 80-82)• lapidus, Boris – Vice President, Russian Railways, Russia(p. 54)• latrille, Pierre – Counsellor, Trade in Services Division, World
Trade Organisation (WTO) (p. 86-89)

• leander, tom – Editor, Lloyds List (p. 98-99)• leuenberger, Moritz – Federal Councillor, Head of theFederal Department of Environment, Transport, Energy andCommunications, Switzerland (p. 31-35, 91-94, 105)
• levitin, igor – Minister of Transport, Russian Federation(p. 36-39)• ludewig, Johannes – Executive Director, Community ofEuropean Railway and Infrastructure Companies (p. 46-51)• Macdonald of tradeston, lord gus – Chairman, Macquarie
Capital Europe (p. 41-44, 64-65)• Mackie, Peter – Professor of Transport Studies, Institute forTransport Studies, University of Leeds (p. 62-65)• Marmy, Martin – Secretary General, International Road
Transport Union (p. 46-51)• Meletiou, Marios – Ports and Transport Sector Specialist,
International Labour Organization, Geneva (p. 58-61)• Mikuriya, Kunio – Secretary General, World Customs
Organisation (WCO) (p. 36-38, 86-89)• Miller, Mark – Director of Supply Chain Security Europe,
Middle East and Africa, COTECNA Inspection SA (p. 68-73)• Mohnsen, Karl – CEO, TX Logistik (p. 37-38)• Molnar, Eva – Director of Transport Division, United Nations
Economic Commission for Europe (UNECE) (p. 87-89, 93)• Moretti, Mauro – CEO, Ferrovie dello Stato (p. 91-94)• Mukherjee, Arpita – Professor, Indian Council for Research on
International Economic Affairs (ICRIER), New Delhi (p. 59-60)• niemeier, hans–Martin – Professor of Economics, Bremen
University of Applied Sciences (p. 80-83)• nijhuis, Jos – President and CEO, Schiphol Group, Amsterdam(p. 80-83)• ojala, lauri – Professor and Chair of Logistics, Turku School of
Economics, Finland (p. 54)• olteanu, Vlad – Policy Manager, ACI Europe (p. 68-72)• Östling, leif – CEO, Scania (p. 25-28)• Palomares, Miguel – Director of the Marine Environment
Division, International Maritime Organization (p. 97-99)• Plessis–Fraissard, Maryvonne – Consultant, World Bank
(p. 59-61)• Polemis, Spyros – Chairman, International Chamber of
Shipping (p. 46-50)• Poole, Robert – Director of Transportation Policy, Reason
Foundation, Los Angeles (p. 69-72)• de Pretto, Umberto –Deputy Secretary General, IRU (p. 89)• Price, Scott – CEO, DHL Express Europe (p. 37-39, 46-49)• Raoul, Jean–claude – Chair of the Mobility and Transport
Commission, Académie des Technologies, France (p. 55-57)• Rat, hans – Secretary General, International Association of
Public Transport (p. 47-51)• Rice, John – Vice Chairman, General Electric (p. 25-28)• Rosengren, lars–göran – Vice President of Innovation
Strategy & Policy, AB Volvo (p. 55-56)• Rubio, nicolas – Director, Business Development and Technical
Department, Cintra (p. 63)• Ruete, Matthias – Director General for Energy and Transport,

Transport and Energy, European Commission (p. 47-50)• Rupprecht, Karl–Rudolf – Head of Hub Management,
Lufthansa, Frankfurt (p. 81)• Saghir, Jamal – Director of Energy, Transport and Water,
World Bank (p. 47-50)• Schouppe, Etienne – Secretary of State for Mobility, Belgium(p. 37-39)• Schulte, Stefan – Vice-Chairman of the Executive Board,
Fraport AG (p. 81-84)• Schuster, Dominic – Formerly Manager of Aviation Pricing andEconomics, Sydney Airports Corporation Limited (p. 81)• Shane, Jeff – Partner, Hogan and Hartson LLP (p. 82-83)• Sener, Mustafa Sani – CEO, TAV Airports Holding (p. 41-43)• de Silguy, Yves–thibault – CEO Vinci S.A. (p. 41-44)• Smith, graham – President, Passenger Transport Sector, IRU(p. 87-89)• Smith, graham – Senior Vice President, Toyota Motor Europe(p. 31-35)• Spickermann, hartmut – Deputy Director-General for
Civil Aviation and Aerospace, Federal Ministry of Transport,
Germany (p. 81-82)• Stockmann, Ulrich – MEP (p. 81)• Stölzle, Wolfgang – Managing Director, Chair of Logistics
Management, University of St Gallen, Switzerland (p. 55-57)• tajani, Antonio – Vice President for Transport Policy, European
Commission (p. 18)• thapar, K. l. – Founder and Chairman, Asian Institute ofTransport Development (p. 59-66)• thelen, Friedrich – Moderator (p. 93)• thomas, callum – Professor of Sustainable Aviation,
Manchester Metropolitan University (p. 75)• thompson, David – Independent Expert (p. 81)• tiefensee, Wolfgang – Federal Minister of Transport, Buildingand Urban Affairs, Germany (p. 7, 10, 25-27, 105)
• Venables, Anthony – Professor of Economics, Centre forAnalysis of Resource Rich Economies, Oxford University, UK(p. 25, 31-35, 77)• Visser, caroline – Specialist on Road Finance and PublicPrivate Partnerships, International Road Federation (IRF)(p. 63-66)• Werner, hans–georg – Board Member, DB Schenker Rail
Deutschland AG, Germany (p. 55-56)• Widdows, Ronald – CEO, Neptune Orient Lines (p. 25-27, 47-50)• Widdowson, David – CEO, Centre for Customs & Excise Studies,
University of Canberra, Australia (p. 69-71)• Wiedemann, Sabine – Vice President of Corporate Security,
Deutsche Post DHL (p. 69)• Wright, Robert – Journalist, Financial Times (p. 38-39)• Yıldırım, Binali – Minister of Transport of Turkey, President of
the 2009 International Transport Forum (p. 7, 8, 47-48)• Youssef, Waleed – Chief Strategy Officer, TAV Airports Holding
Inc, Turkey (p. 63-66)

Relevant itF Publications
to order paper copies contact:www.oecdbookshop.org or www.internationaltransportforum.org
143

Port ComPetition and
Hinterland ConneCtionSr E s E a r C H
T r a n s p o r T

143
R O U N D TA B L E

www.internationaltransportforum.org

14 3(74 2009 04 1 P1) ISBN 978-92-821-0159-9

R O U N D TA B L E

C E n T r E
r E s E a r C H
T r a n s p o r T

Terrorism and inTernaTional TransporT:
Towards risk-based securiTy policy

www.internationaltransportforum.org

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www.oecd.org/publishing144

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1970
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trends in the transport Sector 2007
9:HSTCSC=VUVZ^^:
ISBN: 9789282101186

2009

rism and inTernaTional
TransporT: Towards
sk-based securiTy policy

analysis covers the impact of uncertainty
assessing security policies and on the cost
ctiveness of security measures in aviation
maritime shipping. Much can be criticised
current policies, which are often seen as
uly expensive and inadequately assessed.
This round Table identifies methods forntifying the benefits of security measuressessing their effectiveness, and examines
hniques to allocate resources to targeting
highest risks. applying these techniques
would achieve better levels of security
with current resources.

TrendsTransport
sectorin thePublished earlier than comparable studies,
this brochure provides the reader with
first-hand figures on key transport trends.
Data are also provided on air and maritime
transport as well as on investment andmaintenance expenditures undertakenin the transport sector.

ROUND
TABLE

14 4

rity is critical to transport systems as they
ten appealing targets for terrorist attacks.
gnificant costs of potential damage makefective security policies a key concern for
nsport decision makers. This round Table
mines the contribution economic analysis
can make to improving security.

How have the passenger and freighttransport sectors evolved in recent
years? And what about road safety?
This publication presents the most
up-to-date statistics on transport markets
in International Transport Forum countries
for the period 1970-2007, including charts
to highlight the major trends.

Terrorism andinTernaTional TransporT:
Towards risk-based
securiTy policy

25 – 27 October 2006 Berlin

ITF Round Table 144
terrorism and international transport
ISBN: 9789282102244

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ROUND
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14 4

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Transport
sector contribution
contribution
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policy challenges
challenges
andBenefiting from globalisation
ISBN: 9789282101681

2009

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Discussion Paper No. 7
competitive interaction between Airports,
Airlines and high-Speed RailWORLD BANK
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Port ComPetition
and Hinterland
ConneCtionS

ITF Round Table 143
Port competition and hinterland connections
ISBN: 9789282102244

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ncentration among shipping lines andminal operators may generate market
national competition authorities have
wer to address this but might not fully
ppreciate the international dimension.
port throughput meets with increasing
nce from local communities because oftion and congestion. In addition, local
ion is warranted but made difficult by
stribution of bargaining power among
holders. Higher-level authorities could
develop more effective policies.

Port ComPetition and
Hinterland ConneCtionSr has changed tremendously in recent
with technological and organisational
novation and a powerful expansion of
although ports serve hinterlands thatrun deep into continents, competition
ports is increasingly intense and their
gaining power in the supply chain has
ently weakened. Integration of supplyperations on a global scale has greatly
d productivity but raises issues of bothcompetition and sustainability.

C E n T r E

This round Table publication discusses
cy and regulatory challenges posed byhe rapidly changing port environment.

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Round Table, 2-3 October 2008, Paris

Discussion Paper No. 2009-7 (Preliminary version)
May 2009

ophisticated andand at present isnsport. This bookinuing economic

diversification ofespecially on theIntermodaltransport

TRANSPORTINFRASTRUCTURE
INVESTMENT
Options for Efficiency
Surface transport plays a fundamental rolein nearly all social and economic activity.
Providing and maintaining the infrastructure
consumes enormous resources. Thus, it isessential that this be carried out in the mostefficient and effective way possible.
Many options are available to provide surface
transport infrastructure – public ministries
and agencies, public-private partnerships(PPPs), state-owned companies, private andnon-profit entities, and outright privatisation.
There are also various means of paying
for it, including user charging, subsidies,public borrowing or private financing.

ltimodal services.

for Europe, Asia,

as a facilitator of
support a range

ent situation andtransport system.

National Peer Review: TuRkey

enhanced with aransport services.

tions and policies

development of aansportforum.org

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This report examines key principles thatshould be considered by governments
in deciding how to provide and pay forsurface transport infrastructure, witha view to best serving societies’ needs
and employing public resources. It also
considers the key issues that must be
resolved in making more use of private
financing and expertise.

National
Peer Review:

TuRkeytransport infrastructure investment-:HSTCSC=VUVZZV:ISBN: 9789282101551

TRANSPORT INFRASTRUCTURE INVESTMENT: Options for Efficiency

ics and transportet Turkey is at an

Summary and conclusions

www.internationaltransportforum.org

www.oecd.org/publishing2009(77 2008 01 1 P)
ISBN 978-92-821-0155-1

container transport Security Across Modes
ISBN: 9789282103319

Discussion Paper No. 8
integration and competition between
transport and logistics Businesses

2008

C E N T R E

order to facilitate

intermodal transport
ISBN: 9789282102220

Séminaire Sur la levéedeS obStacleS au paSSage deS frontièreS

R E S E A R C H

owing mainly toIntermodal transportr Review: TuRkey

Seminar on overcoming
border croSSing obStacleS

T R A N S P O R T

SUMMARY AND CONCLUSIONS

odal
sport

document

Summary and Conclusions
Seminar on overcoming
border crossing obstacles

Competitive Interaction
between Airports, Airlines
and High-Speed Rail

TRANSPORTINFRASTRUCTURE
INVESTMENT
Options for Efficiency

The International Transport Forum 2009
on the “Challenges and Opportunities in the
Downturn” took place at a very difficult time,with finances drying up, companies failing,
supply chains weakened, and protectionism
on the increase.
There are real fears that the transport
sector will be seriously damaged by thissudden and profound downturn, with
important implications for economies andsocieties. One certainty is that transport ismore important than it has ever been – inbusiness, in the lives of citizens and in theworld economy.

The transport sector is at the heart ofglobalisation. At the same time it is clearthat the crisis does not alter fundamental
challenges, particularly for transport
to be more sustainable and show more
concrete results in the lead up to and after
the December 2009 UN Climate Change
Conference in Copenhagen.
This publication condenses the main findingsof workshops and round tables bringing
together leading figure from politics, industry,
research and civil society on key questions
linking transport, economic recovery, global
trade flows and sustainable development.

international transport Forum
Offices: 2-4 rue Louis David, 75016 Paris, France
Postal address: OECD/ITF, 2 rue André Pascal, F-75775 Paris, Cedex 16
www.internationaltransportforum.org