IRU calls for support for road transport industry, to drive global COVID-19 recovery efforts

IRU calls for support for road transport industry, to drive global COVID-19 recovery efforts


The IRU is calling on governments to ramp up efforts to support road transport operators “so they can drive broader financial and social recovery”, it said in an online statement. 

It said road transport services underpin all economic activity, as the foundation for all intermodal supply chains and mobility networks. New findings however reveal the scale of the impact the pandemic has had on the over 3.5 million companies that provide road transport services around the world. 

Umberto de Pretto, IRU Secretary General, said: “All over the world, commercial road transport companies, including millions of small and medium-sized firms, are struggling. Their most pressing problem is liquidity and many are now on the brink of bankruptcy, with financial difficulties expected to continue at least until 2022.”

He added: “Drivers have risked their own health to bring food, medicine and essential workers to supermarkets and hospitals everywhere. Now, the industry itself needs help, so it can drive global economic recovery from COVID-19.”

IRU’s findings from transport operators in Europe, Asia and the Americas also point to key operational barriers. In goods transport, these are legal restrictions that prevent drivers working, congestion at borders and delays at loading and unloading points. Passenger firms cite the shut-down of mobility services, mistrust of public transport for social distancing, and the cost of additional health and security measures. 

IRU is therefore laying out key short-term measures for governments, international organisations and banks to keep road transport operators in business, supply and mobility chains running efficiently, to drive recovery efforts. 

Financial:

  • Provide direct cash grants to road transport companies, as temporary aid, which can be phased out as the situation improves.
  • Facilitate access to loans for covering variable costs (such as ongoing operational needs), refinancing of pre-existing credits for asset purchase (e.g. vehicle leases), and facilitate credits for the renewal of fleets at low or 0% interest rates.
  • Facilitate delays to due dates for loan repayments and lease instalments.
  • Extend payment deadlines and/or temporarily reduce or waive taxes, charges and duties including corporate taxes, social contributions and fuel tax.
  • Facilitate reduction of insurance premiums and waive premiums for non-operational vehicles due to halted goods and passenger services.
  • Set-up financial support programmes for temporarily unemployed road transport workers and facilitate reintegration back into the transport workforce of skilled people made unemployed due to the crisis.

Non-financial:

  • Establish green lanes for trucks to be implemented at all borders, backed by policies and procedures that prevent additional and systematic stopping of trucks at all borders.
  • Prioritise collective passenger transport, particularly for workers, with appropriate health protective measures put in place.
  • Designate road transport workers as key workers, giving them priority access to proper protection and disinfection equipment and material, which have not yet been made sufficiently available by governments.
  • Allow for maximum flexibility on the interpretation of driving rules, driving restrictions and tolerance measures to prolong the validity of expired control documents including visas, certificates, and licences.
  • These measures should be coordinated between countries and trade blocs to avoid confusing operators and to maintain a competitive and efficient transport landscape. A global recovery from a global crisis needs global solutions.

Umberto de Pretto added: “Drivers have risked their own health to bring food, medicine and essential workers to supermarkets and hospitals everywhere. Now, the industry itself needs help, so it can drive global economic recovery from COVID-19.”

For more information visit www.iru.org

5th May 2020