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Aid Agencies Aim To Slash Transport Costs By A Quarter

"We could save 200 million dollars in transport and use that 200 million in other parts of our programmes."

Geneva (AFP) Sep 23, 2005
A group of more than 40 aid agencies has come together to try to slash their transport costs, which reach a combined 800 million dollars a year, an official said Thursday.

Much of the money wasted through shoddy vehicle maintenance, negligence and road accidents, bureaucratic headaches, and the ad hoc policies of a kaleidoscope of aid groups could be redirected to people who need help on the ground, said Rob McConnell, coordinator of the Fleet Forum.

"I think realistically we could save 25 percent," said McConnell, who is on loan to the network from the International Red Cross.

"We're looking at increased effectiveness and efficiency," he told reporters.

"We could save 200 million dollars in transport and use that 200 million in other parts of our programmes."

Besides the Red Cross, the Fleet Forum's membership includes UN organisations such as the World Food Programme, charities and Western government aid agencies.

Their combined aid operations use around 60,000 vehicles, representing their second largest budget slice after staff costs, McConnell noted.

Record fuel prices have focused their minds.

"You budget for the year, and if your biggest transport operating cost increases dramatically then it really puts the squeeze on other areas of the budget," said McConnell.

The Fleet Forum also aims to give individual aid agencies more muscle when dealing with governments.

McConnell cited the case of British aid organisation Oxfam, which faced massive customs duties when it shipped 25 Indian-made four-wheel drive vehicles to Sri Lanka after the Asian tsunami.

Oxfam ended up paying one million dollars, after failing to win exemption from the Sri Lanka's 324 percent import duty on such vehicles.

In contrast, by pooling efforts in Sudan, aid groups were able to import 70 four-wheel drive vehicles tax-free after negotiations with the government.

The forum also plans to raise aid workers' awareness of the need for road safety, which often gets missed out in discussions on security in danger zones.

"Much is made of the risks facing humanitarian workers. In actual fact, the greatest risk they face in their daily work is crashes," said McConnell.

In addition, it hopes to boost use of environmentally-friendly vehicles, he said.

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