• Today’s Challenges that faces Transporters on the New Silk Road

• Necessary Governments Actions Required in Transportation

Agenda The Historical & the Current Importance of Silk Road.

Challenges that faces Transporters on the New Silk Road

connecting Asia, Europe, and Africa .

The Expected out comes of overcoming these Challenges.

The Reality of Logistics in the Arab World, and how to

develop it.

What are the Responsibilities of Governments in the Silk Road.

How to Practically Implement Governments Decisions on

Road Transportations…

The Historical & the Current Importance of Silk Road .

•Silk Road had a significant impact on prosperity of ancient Chinese,

Indian, Egyptian and Roman civilizations

• Silk Road extended from commercial centers in northern China

where it is divided into two main roads, North and South

•The North Road passes from Bulgar - Kipichak across Eastern Europe

thru the Black Sea ,the Balkans, ending in Venice .

• The South Road passes from Turkistan across Mesopotamia thru

Anatolia ,Syria, the Mediterranean Egypt and North Africa.

China- Magnolia- Iran- Iraq-Kurdistan-Turkey- Syria- Mediterranean Sea- Egypt- North Africa

الصين -  منغوليا – أفغانستان -  إيران – العراق –كردستان- تركيا – بالد الشام ”سوريا-    إلى البحر

األبيض المتوسط أو عبردمشق و بالد الشام إلى مصر وشمال إفريقيا .

1. Variations of Road Taxes between different countries.

2. The absence of Agreements and Regulations that

determine the customs and tax

3. Closure of border for usually unconvincing reasons.

4. The absence of a common policy on goods and services

crossing.

5. The high risks and danger of road bandits.

Challenges that faces Transporters on the New Silk Road

Challenges that faces Transporters on the New Silk Road

6. The Undeveloped laws and institutional structures.

7. Lack of trust between the leadership in the region, makes each of

them concerned more about private matters in his country without

paying attention to the common interest.

8. Political disputes between the regional countries has a negative

impact on commercial transportation.

9. Variation of development levels between the countries through

which the Silk Road hinders Progress and prosperity

10. Poor road network in the region.

11. Poor Management and low operational efficiency.

12. Extremely Old Fleet operating in the region.

13. The lengthy procedures.

14. Corruption and illegal practices

Challenges that faces Transporters on the New Silk Road

Number of Procedures

and Signatures required.

Lebanon Beirut

Jordan Aqaba

Syria Lattakia

Egypt Alexandria

UAE Dubai

7 5 8 7 2Client with

customs

7 6 6 8 3Client with other

dept.

10 10 13 13 4 Customs

5 6 7 6 3 Port

5 5 5 5 2 Shipping agent

2 1 2 3 1 Regulators

3 3 2 3 3 Transporters

36 33 41 42 15Total No of Procedures

18 16 24 24 4 No of Signatures6 5 6 6 5 No of Days

مبادرات : ESCWA” Economic and Social Commission for Western Asia 2001”االسكوالمصدر

2012 2005

7 7Client with customs

7 8Client with other

dept.

8 13 Customs

6 6 Port

6 6 Shipping agent

3 3 Regulators

3 3 Transporters

40 42Total No of Procedures

11 24 No of Signatures

Number of Procedures

and Signatures required.Comparison the number of

procedures and signatures in Egypt 2005 , 2012

From one of the ESCWAstudies

ما هي التحديات التي تواجه مشغلي النقل

التجاري على طول طريق الحرير الحديث؟

Principles of

Transport & electricityTransportation Always Takes the Easiest Way Exactly

like Electricity that takes the path that is least resistant.

• Increase in commercial transport, which leads to

movement of trade and money.

• Development and prosperity

• Enhance Multi cultures and promote dialogue among

civilizations

• Promote World Peace.

The Expected out comes

of overcoming these

Challenges.

World Bank has adopted a five-point scale ( Logistics Performance Index) and was able to evaluate of the 150 countries in terms of the international supply chain performance

The five points can be categorized on the following criteria

– Customs procedures– Cost of logistics and freight transport operations– Infrastructure related to transportation operations– Time taken for the goods to reach destination– The efficiency of the local logistics industry

The Reality of Logistics in

the Arab World, and how

to

develop it.

Low-preforming countries , mostly of which are from developing

countries, ( large number of Arab states) suffers form

complexity of the procedures, poor transport services sector,

and lack of investment in the sector.

The Reality of Logistics in

the Arab World, and how

to

develop it.

World Bankhttp://data.albankaldawli.org/indicator/LP.LPI.OVRL.XQ/countries?display=map

Logistics Performance Index ( 1=Low, 5=High)

Indicator 2012 2010 Country

3.52 3.49 China

2.25 2.25 Magnolia

2.3 2.24 Afghanistan

3.78 3.63 UAE

2.49 2.57 Iran

2.16 2.11 Iraq

3.51 3.22 Turkey

- 2.49 Turkistan

3.18 3.22 Saudi Arabia

2.6 2.74 Syria

2.56 2.74 Jordan

2.98 2.61 Egypt

3.93 3.97 Japan

3.93 3.86 USA

World Bankhttp://data.albankaldawli.org/indicator/LP.LPI.OVRL.XQ/countries?display=map

Logistics Performance Index

How to Develop

Logistics in Arab Region

Expand the traditional means to help facilitate trade:

•Infrastructure for transportation

•Development of information systems at the customs service. Including restructuring and development of logistics.

•Reshape international Supply Chain and transportation Logistics.

How to Develop

Logistics in Arab Region Expected results:

•Reduce the differences between the countries performance indexes

•Entering the Arab countries in a real international economic competition

•Transforming the national economy from an economy burdened with problems and obstacles to effective and practical economy that will attracts investments.

•Flexibility in the procedures.

•Speed and accuracy in logistics.

•Simplicity in the laws and legislations .

What are the Responsibilities of Governments in the Silk

Road.

Government should give high political priority to promote

and facilitate trade and transport in the Middle East and

along the Silk Road, which will make it easier for transport

companies to do business, through the implementation of

the principal instruments of the United Nations to facilitate

customs, standardize procedures, and dramatically reduce

costly waiting times at the border.

Reducing Obstacles ……Increasing Trade

How to Practically Implement

Governments Decisions on

Road Transportations…

.

After taking government actions needed to facilitate Logistics , One

must apply these decisions on the ground and through the

training of transport companies on establishing international

standards, made by the IRU Academy “International Road Union )

In partnership with the United Nations , the European Commission

and, Arab Union for Land Transport (AULT) and The World Bank.

Thank YouBahiej Al Biqawi

bahiej@almajdouie.comceo@jadarahgroup.com

+970 592 92 88 88