People's Republic of China | Beijing

The supply chains of tomorrow

27 Sep 2024 · Prosperity

What’s the path forward? IRU’s Secretary General and government and industry leaders discussed measures to ensure that global supply chains are efficient, resilient and benefit everyone at China’s Global Sustainable Transport Forum this week.

At the invitation of China’s Ministry of Transport, IRU Secretary General Umberto de Pretto attended the opening ceremony of the Global Sustainable Transport Forum 2024 this week, where he joined over 400 high-level participants, including foreign dignitaries, transport ministers and international organisation chiefs.

Umberto de Pretto then moderated the Forum’s first panel session, “Connectivity – Strengthening Cooperation in Governance and Emergency Response, and Building Resilient International Logistics and Supply Chains”. The panel’s livestream garnered over five million views.

The panellists – Alvin Liu (Vice President of Boeing Global, President of Boeing China), Han Boling (Director of Freight Transport Department of China State Railway Group), Hu Wei (Senior Vice President of JD Group and CEO of JD Logistics), MA Xiaoqun (General Manager of China Postal Express and Logistics), Wang Wei (Chairman and General Manager of S.F. Holding), Wang Xiufeng (Senior Vice President of China Merchants Group Limited) and Yan Fei (Vice President of China National Aviation Holding Corporation Limited, Chairman of Air China Cargo) – had a spirited debate on solutions to international and regional hotspot issues and how greater cooperation can build more resilient and secure supply chains.

In opening the panel, IRU Secretary General Umberto de Pretto said, “As we are all well aware, global logistics systems are under pressure: from geopolitical conflicts and unpredictable emergencies to trade protectionism and the rapid evolution of new technologies.

“So how can we build a global industrial system that is secure, stable, efficient, open and mutually beneficial?

“And how can we ensure that it supports economic growth and improves the well-being of people across all nations?

“We have a tried-and-tested solution available to us: the TIR system. For 75 years, TIR has been ensuring that goods cross borders efficiently and securely. It’s up to us, governments and the industry, to use the tools at our disposal and boost the resilience and sustainability of supply chains and trade.”

The panelists shared their strategic plans on how to enhance the resilience of supply chains while emphasising the critical importance of cooperation.

Following the panel debate, Umberto de Pretto and the Deputy Director General of the Universal Postal Union Marjan Osvald further discussed some of the key points that had emerged during the panel on how to facilitate international trade and cross-border e-commerce. They also exchanged on decarbonisation measures, including IRU’s Green Compact, the road transport sector’s roadmap to hit net-zero emissions by 2050.

The green transition

Umberto de Pretto then spoke at the Forum’s fourth thematic session, the “Eco-sound development: promoting new energy development and accelerating green and low-carbon transition of global transport”.

“Greening transport is a marathon, not a sprint. We can’t wait until 2050, or even 2030, and then press a ‘magic button’. We need to act now on all fronts,” said Umberto de Pretto.

“Our challenge is to decarbonise road transport without harming the crucial services and value we provide. Based on our research and backed by decades of practical experience, the IRU Green Compact shows that the best way forward, to deliver on both objectives, is a dual approach that drives energy efficiency while steadily rolling out alternative fuels,” he added.

Trans-Caspian

On the sidelines of the Forum, Umberto de Pretto also participated in the “International Symposium on the China-Europe Trans-Caspian Direct Express”.

Umberto de Pretto said, “Freight volumes along the Middle Corridor are forecast to double by 2030. But the growth in trade is putting pressure on congested borders, slowing down cross-border operations. To unlock the Middle Corridor’s full potential, we must prioritise border facilitation measures. This is where harmonisation and digitalisation of customs procedures become crucial.

“The Caspian Sea, with its strategic geographical location, has also become a vital bridge connecting East and West. By fully mobilising international harmonised instruments such as TIR and CMR, we can create a solid foundation for the smooth and seamless operation of road transport.”

“To further enhance the efficiency of logistics, we need to promote more bilateral and multilateral road transport agreements between countries along the corridor and streamline visa facilitation for international road transport drivers,” he added.

Li Yang, the Vice Minister of Transport of China, highlighted that the Trans-Caspian Corridor plays an important role in connecting China and Europe, which can be further extended to the Americas to achieve greater connectivity.

“TIR is an effective tool to facilitate transport along the corridor, and China will further simplify the admission procedures for TIR holders and TIR vehicle inspections to fully unlock the potential of the corridor,” said Li Yang.

Adding that, “I look forward to strengthening international cooperation and exchanges with IRU and governments, associations and enterprises from countries along the corridor to jointly promote the sustainable development of the Trans-Caspian Corridor.”

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