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Rationale for the development of high speed Ro-Ro services in Western Europe

Rationale for the development of high speed Ro-Ro services in Western Europe. Competitiveness of high speed Ro-Ro services compared to road haulage Profitability of High Speed Crafts (HSC-BGV). HSC-BGV competitiveness : Speed Road Standard Ferry HSC-BGV.

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Rationale for the development of high speed Ro-Ro services in Western Europe

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  1. Rationale for the development of high speed Ro-Ro services in Western Europe Competitiveness of high speed Ro-Ro services compared to road haulage Profitability of High Speed Crafts (HSC-BGV)

  2. HSC-BGV competitiveness : SpeedRoad Standard Ferry HSC-BGV Kilometers per hour / kph HSC-BGV cargo ships have a service speed comparable to road haulage

  3. Speed and distances

  4. Speed and consequences (1) • European transport quality standards are based on the respect of schedules and short transit time allowed by road transport • Road haulage is organised to minimize transit time : • It is what the clients are asking for (« zero stock » and « just in time » concepts) • It is the key to the profitability of road haulage

  5. Speed and consequences (2) • Most of the time standard Ro-Ro services ( as opposed to HSC-BGV) are not competitive with road transport in terms of quality standards : • Whether when competing head-on (Belgium/Spain) • Or in indirect competition (Tunisia / Romania) CONSEQUENCES for standard Ro-Ros : • Difficulties in the start-up and sustainability of Motorways of the Sea COMMENTS for HSC-BGV : • HSC-BGV cargo ships are very close to the desired service level

  6. Can HSC-BGV effectively compete with road haulage ? Even though HSC-BGV cargo ships deliver a good quality standard : • Can HSC-BGV ships offer haulage costs (loading+unloading+fare) lower than the direct cost (sub-contracting) of road haulage ? • Is this competitive edge stable or will it vanish in the future ?

  7. Competitivenes in terms of prices and costs Average European figures (on a distance basis) : • Road transport price (to shippers): 1 € / km • Road transport sub-contracting price (direct haulage cost) : 0.65-0.85 € / km • BGV haulage (fare+loading+unloading) : 0.55 to 0.67 € / km (i.e. 1 to 1.2 € per nautical mile for mid distances depending upon traffic level and type of BGV cargo ship)

  8. Review of unit costs • (1) fuel : • Gas oil consumption of a refrigerated truck+trailer : • Consumption : 36.7 l/100 km • Price of gas oil (net European average) : 0.89 €/lit • Cost for 100 km : 32.66 € • Fuel consumption per trailer on HSC-BGV ship • Consumption per hour / per trailer : 67-78 kilos • Price of HFO 380 : 230 € / ton • Speed : 59 kph • Cost per trailer for 100 km : 26.10 – 30.51 €

  9. Review of unit costs • (2) cost of labour : • Truck driver (basis : French Convention) • Salary + social charges : 3,139.91 € • Number of hours worked per year : 2,115 • Number of drivers per truck : 1.081 • Cost of one work hour : 19.26 € • Cost for 100 km : 27.55 € • BGV Crew (basis : French Convention) • Crew cost for one work hour : 182.54 € • Crew cost for one hour per trailer : 1.94 € - 1.04 € • Cost for 100 km : 3.28 € - 1.76 €

  10. Review of basic unit costs • (3) cost of vehicle for the haulage of one trailer : • Truck : • Cost : 68,500.00 € • Years of use : 6.1 • Interest rate : 6% • Depreciation + financial charges : 13,739.60 € /year • Days in use : 231.9 / year • Cost per day : 59.25 € • HSC-BGV cargo ship : • Cost : 65 – 92,000,000 € • Years of use : 25 • Interest rate : 6% • Depreciation + financial charges /trailer : 42,026.00 – 32,184.00 € • Days in use : 300 • Cost per day : 107.28 € - 140.09 €

  11. Trends in favor of HSC-BGV

  12. Benefits for transport safety (1) • inherent to all Ro-Ro services (as opposed to 100% road transport) • Less time on roads means less accidents for drivers and for the general public • Possibility to use smaller ports and by-pass congested areas • Economic consequences : • Lower infrastructure costs • Losses and insurance

  13. Benefits for transport safety (2) • Specific to HSC-BGV cargo ships: • Separation of cargo and passengers will improve passenger safety and security • Reasonable speed (less than current passenger vessels – catamarans) • Credible alternative on week-ends and holidays for refrigerated transport • European crews • Highest standards for crew training and management • HSC safety standards for ships • Modern navigational equipment

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