IRU hopes to further facilitate road transport links

The International Road Transport Union, the organization that manages Transports Internationaux Routiers operations, or the TIR, with United Nations' authorization, is seeking to diversify its cooperation with China's customs to further facilitate goods trade via more convenient road transportation methods, said a senior official on Wednesday.

Since China implemented the TIR transport initiative, a globally applicable international customs transit and guarantee system, last May, it has opened 10 ports including Ereenhot and Manzhouli in the Inner Mongolia autonomous region, and Horgos and Irkeshtam in the Xinjiang Uygur autonomous region, that are applicable to TIR, which has already cut the financial and time costs of shipments between China and its trade partners in the European Union, Russia and Central Asia.

Umberto de Pretto, secretary-general of the Geneva-headquartered organization, said the IRU is looking for more ports in China to be applicable for TIR in the future.

TIR currently is the only global customs transit system for moving goods across international borders. Supporting trade and development for more than seven decades, the network has 76 contracting parties and is governed by the United Nations TIR Convention and managed by the IRU. China ratified the UN TIR Convention in 2016, becoming the 70th contracting party.

"Now we can move trucks from China to Europe in 12 days, and from southern China all the way to Spain, the longest way you can go, is in 16 days, which is phenomenally quicker," said Pretto, adding that the TIR service enables goods to be shipped across continents in sealed loaded compartments controlled by customs via a multilateral, mutually recognized system.

He said it has been a success working with the General Administration of Customs and other government branches to further help China to boost its trade volume through road transportation.

This is Pretto's second time attending the Belt and Road Forum for International Cooperation, and he said he was pleased to see the vision the BRI put forward has become a reality, especially in terms of infrastructure to enhance connectivity.

"In the IRU, we appreciate every millimeter of the road that is built because it will make it easier for us do our job," he said.

"It will boost trade between China and economies related to the Belt and Road Initiative to reap the economic and development rewards of international road transport," said Luo Renjian, a researcher at the Institute of Transportation Research at the National Development and Reform Commission. He said that fast TIR development has also boosted logistics firms in many member economies of the European Union, as well as in Russia and Central Asia.

"As many countries involved in the development of the BRI still rely on trucks and coaches to transport goods and people, the demand for road transportation and modern road infrastructure will remain attractive for both logistics companies and facility project contractors in the long run," he said.