The role of multilateral development banks in improving road safety and road transport efficiency

Road Transport Professional TrainingMay 8th , 2012

Amman, Jordan

Dr. Walid AbdelwahabDirector, Infrastructure

Islamic Development Bank

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Outline

• Introduction: MDBs and road transport• Importance of road safety and road transport efficiency• MDB Shared approach to Road Safety: the Decade of Action• Selected initiatives for efficient and safe road transport • Conclusions

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Outline

• Introduction: MDBs and road transport• Importance of road safety and road transport efficiency• MDB Shared approach to Road Safety: the Decade of Action• Selected initiatives for efficient and safe road transport • Conclusions

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• Transport is a priority for most MDBs

• Road transport still attracts the lion share of MDB financing

• But change of paradigm, road transport is not just about road construction and rehabilitation:

– Road maintenance– Road safety New priorities for better aid– Transport facilitation effectiveness– Systems and Technology

Introduction

Energy, 36%

Transport & Coms; 31%

Industry, 12%

Agricul-ture, 11% Social, 6%

Other, 4%Airports, 501, 8%

Ports, 1020, 16%

Multimod, 171, 3%

Railway, 1215, 19%

Roads & Highway, 3500, 54%

Cumulative project financing 1975-2010 Islamic Development Bank

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Outline

• Introduction: MDBs and road transport• Importance of road safety and road transport efficiency• MDB Shared approach to Road Safety: the Decade of Action• Selected initiatives for efficient and safe road transport • Conclusions

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Road safety• Road traffic fatalities forecast to rise from

nearly 1.3 million deaths each year to more than 1.9 million by 2020

• Developing countries most affected : account for > 90% of casualties from road deaths!

Importance of road safety and road efficiency

Source: WHO

…from bad to worse !!

Source: ChartsbinRoad traffic Death rates per 100,000 population

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Environmental efficiency

• With the fast-pace development of LDCs and MICs, CO2 emissions will soar to unsustainable levels

• Developing countries will become primary contributor by 2030

• Road transport is the most inefficient land transport mode (vs. rail and inland water transport)

Importance of road safety and road efficiency

Source: International Energy Agency

…from bad to worse !!

Source: Texas transportation institute

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Operational efficiency

• Trucking is very inefficient in LDCs as compared to OECD because of physical and non-physical barriers to trade

• High vehicle operating costs because of poor road condition

• High transport prices because of market inefficiencies in some regions

Importance of road safety and road efficiency

OECD countries > 100,000 miles

…far behind!

4 5 5 57 8

11

Source: World Bank

USD cents / Tkm

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Logistics efficiency• Total logistics costs as a percentage of GDP reaches 20% in

developing countries which impacts the their competitiveness.

Importance of road safety and road efficiency…far behind!

Source: CSIR, South Africa, 2010

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Outline

• Introduction: MDBs and road transport• Importance of road safety and road transport efficiency• MDB Shared approach to Road Safety: the Decade of Action• Selected initiatives for efficient and safe road transport • Conclusions

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MDB Shared approach to Road Safety: the Decade of Action

• Joint Statement by the MDBs as international development partners in managing road safety• Scaling up and mainstreaming road safety in MDB activities• Collaborative effort in managing road safety •Establishment of a global Road Safety Incentive Fund to leverage MDB support

Global initiative launched on 11 May 2011,19 April 2012, UN resolution to improve global road safety.National and local launches of the Decade of Action for Road Safety 2011-2020 encouraged in all member countries

Joint effort of Multilateral development Banks

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Decade of Action 2011-2020Reasons to Act:

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Shared approach to Road Safety: the Decade of Action

Road safety management Safer roads and mobility Safer vehicles

Safer road users Post-crash response

Establishment of a global Road Safety Incentive Fund to be managed jointly by the MDBs

Outline - May 2012Proposal - Sept 2012Launch - 2013

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MDB Shared Approach to Road Safety

Indicators/criteria

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Road Safety Action Plan – approved in January 2012, it serves as a guide in mainstreaming road safety in ADB’s transport operations

Revised EIB Transport Lending Policy - “….all road projects are to be subject to Road Safety Audits in line with the principles of the EU Directive …”.

…

Capacity building and technical assistanceExpert Group Meeting on Financing Transport Infrastructure Projects and Road Safety in the ESCWA Region

3rd IRU-LAS-AULT Seminar on International Carriage of Dangerous Goods by Road- IRU Academy Seminar on Road Transport Professional Training

Technical Assistance Grant to the Arab Union of Land Transport

Other examples of MDB interventions in Road safety

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Outline

• Introduction: MDBs and road transport• Importance of road safety and road transport efficiency• MDB Shared approach to Road Safety: the Decade of Action• Selected initiatives for efficient and safe road transport • Conclusions

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Environmental efficiency

Sustainable transport or sustainable mobility strategies

ex. GIZ A-S-I approach

Moving freight with better trucksOECD / ITF initiative

Selected initiatives for efficient road transport

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Reduce the amount of travel activityConsolidation centers and logistics platformsBetter use of multimodal transport

Selected initiatives for efficient road transport

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Operational efficiency

MDBs recognize the need to: Finance maintenance activities and programs for sustainable

reduction of vehicle operating costs

Work on transport services in addition to infrastructure

“Transport services have been neglected for years on the assumption that reduction in VOCs would automatically lower transport prices… need to lower the price of transport so that they benefit the economy at large rather than a group of transport providers, “

World Bank, Transport prices and costs in Africa, 2008

Selected initiatives for efficient road transport

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Logistics efficiency

MDBs are working to:

Promote National Logistics StrategiesEx) National Logistics Strategy of South Africa

Morocco Strategy for the Logistics CompetitivenessReduce non-physical barriers to tradeTrade and transport facilitation initiativesDevelop cross-border trade infrastructure and multimodal

transport

Selected initiatives for efficient road transport

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• Lawder Mukairas Road, Yemen ( مكيراس لودرطريق )

• Partially financed by IDB through $7M Loan, 1990 -1997

Selected Projects for efficient and safe road transport

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• AQABA COASTAL HIGHWAY – JORDAN

• construction of a highway consisting of two parallel roads four lane, 17 km long, to separate the traffic of heavy goods vehicles heading to and from seaport from the local and international traffic, to reduce the congestion of traffic and to improve safety.

• IDB's Contributions USD 31.63 M , 2001 -2005

Selected Projects for efficient and safe transport

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• Taza – Oujda Highway, Morocco

Interchange for safer traffic flow and grade separation with rail line.• The Taza - Oujda highway segment (197-km) will ensure the connection with the capital Rabat and the economic hub Casablanca.

The project will improve safety and efficiency.

• IDB financing US$ 135 M

Selected Projects for efficient and safe transport

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• Hadath El Hubba Road, Lebanon

• Improve national/local roads with significant truck traffic• IDB financing: US$ 16 M

Selected Projects for efficient and safe transport

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• Bir El Heith – Qartaba road, Lerbanon

• Narrow, mountainous to be widened and re-aligned for safer operation especially by trucks (under construction).

• IDB financing: US$ 12 M

Selected Projects for efficient and safe transport

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• MDBs role in road trasport is changing: from infrastructure to wider consideration of safety and efficiency

• Transport is playing a larger role in economic development, but its negative impacts (economic, social and enviornment) are worrying

• More focus on transport services, logistics and addressing non-physical barriers to enhance economic competitiveness

Conclusions

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