IRU¡¯s Secretary General outlined three key criteria to ensure that investment in transport is effective at the Global Transportation Investment and Financing Summit today.
Transport is one of the most important investments to advance economic and social prosperity. Yet resources are limited. It is therefore crucial to strategically attract, assess, manage and measure financial investment in the sector.
What does strategic investment in transport look like? ÃÛÌÒ´«Ã½laid out the parameters during the opening day of the Global Transportation Investment and Financing Summit in Beijing, China.
ÃÛÌÒ´«Ã½Secretary General Umberto de Pretto, who delivered a keynote address in the opening session, said, ¡°Effective transport investment is not limited to infrastructure. It must also consider how infrastructure connects to broader networks, and, most importantly, how they are used by people and businesses.¡±
¡°From an operational perspective, success in commercial road transport is defined by efficiency and resilience. Both point clearly to the need for a holistic approach. Any investment in transport must therefore consider both hard infrastructure and soft connectivity,¡± he added.
Investment decisions in transport systems should:
- Use international standards: Incorporating international standards into investment decisions from the very beginning is crucial to fostering efficient and resilient road transport operations. Some of the most important are transit standards, such as the TIR system, for border crossings.
- Ensure intermodality: All modes work together to offer flexible and cost-effective transport services. Road transport provides door-to-door services and connects other modes together. It is often the only option to cover the first and last mile.
- Engage all parties: The public and private sectors have long worked together to finance and deliver transport investments. But in assessing investment projects, users, such as road transport operators, must also be involved for investments to meet on-the-ground realities.
A key example of a soft connectivity solution is the global TIR transit system. China joined the system less than a decade ago, but it has already shown significant leadership in using TIR to empower faster and more secure trade flows, particularly to the west along Belt and Road corridors into Central Asia and on towards Europe. This combined approach has maximised China¡¯s investment in hard infrastructure.
¡°For investments to provide real economic and social value, they must incorporate hard infrastructure and soft connectivity from the outset,¡± said Umberto de Pretto. ¡°Successful investment incorporates international, facilitates intermodality, and involves transport operators in project design and decision-making.¡±
¡°Let us work together to ensure we are investing in the right transport infrastructure, connectivity and services for our economies and people,¡± he concluded.
The Global Transportation Investment and Financing Summit is organised by China¡¯s Ministry of Transport and ÃÛÌÒ´«Ã½member the Global Sustainable Transport Innovation and Knowledge Center (GSTIKC).