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Logistics, Transport and International Freights Distribution in the Mediterranean

Logistics, Transport and International Freights Distribution in the Mediterranean. Motorways of the Sea extensions: The role of the ports Dimitrios Tsamboulas Assoc. Professor NTUA School of Civil Engineering Department of Transportation Planning and Engineering. Introduction.

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Logistics, Transport and International Freights Distribution in the Mediterranean

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  1. Logistics, Transport and International Freights Distribution in the Mediterranean Motorways of the Sea extensions: The role of the ports Dimitrios Tsamboulas Assoc. Professor NTUA School of Civil Engineering Department of Transportation Planning and Engineering

  2. Introduction • Good transport connections between the European Union and its neighbours are essential for trade and economic development. • Smooth, safe and secure transport systems reinforce sustainable economic growth and competitiveness and ensure smooth movement of passengers, goods and services. • The European Union has already introduced a new framework as part of the Trans-European Transport Networks, in regard to • short sea shipping • the progressive change in the operational procedure of ports • the prospect of realization of the sea motorways

  3. Sea Motorways - Policy Context(1) • MOS are an initiative for better intermodal freight options, relying on integration of short sea shipping into the supply chain. • Its policy objectives are modal shift and increasing economic and social cohesion. • Instead of building expensive new terrestrial infrastructures, MOS set out to use what is available in the most efficient sense and with targeted investments into missing links. • MOS are a quality initiative and focus on the improvement of service quality and infrastructure availability within the transport networks today.

  4. Sea Motorways - Policy Context(2) • In order to compete with through road transport, the MOS services need a high frequency and a good quality, and must be competitive on price. • A high frequency of shipping services can only be reached through freight flow concentration, which implies a choice of ports and services. • Not all ports will become MOS ports, and not all short sea services can become MOS services. • The MOS initiative thus implies clear choices from the policy side.

  5. Article 12a of the TEN-T Guidelines • Three main objectives for the sea motorways: • freight flow concentration on sea-based logistical routes; • increasing cohesion; • reducing road congestion through modal shift.

  6. Article 12a of the TEN-T Guidelines: proposed Motorways of the Sea • Motorway of the Baltic Sea(linking the Baltic Sea Member States with Member States in Central and Western Europe, including route through North Sea/Baltic Sea canal) (by 2010); • Motorway of the Sea of western Europe(leading from Portugal and Spain via Atlantic Arc to North Sea and Irish Sea- by 2010); • Motorway of the Sea of south-east Europe (connecting Adriatic Sea to Ionian Sea and Eastern Mediterranean, including Cyprus) (by 2010); • Motorway of the Sea of south-west Europe(western Mediterranean, connecting Spain, France, Italy and including Malta and linking with the Motorway of the Sea of south-east Europe and including links to the Black Sea) (by 2010).

  7. Recent Developments • The Commission Decision C(2004) 3618 of 29th September 2004 established the High Level Group on the “extension of the major trans-European transport axes to the neighbouring countries and regions”. • The members of the Group include • the Member States of the European Union • Representatives fromAlbania, Algeria, Armenia, Azerbaijan, Belarus, Bosnia & Herzegovina, Croatia, Egypt, former Yugoslav Republic of Macedonia, Georgia, Israel, Jordan, Lebanon, Libya (as observer), Morocco, Moldova, Palestinian Authority, Russia, Serbia & Montenegro, Kosovo, Switzerland, Syria, Tunisia, Turkey and Ukraine

  8. Purpose of the High Level Group for the extension of TEN • The mandate is to make proposals on the better connection of the Union with the neighbouring countries or broader regions by identifying a limited set, some 5-7, of major transnational transport axes and priority projects on them. • Given that financing transport investments remains a major problem worldwide, the Group would have to be very selective in the establishment of priorities and to look at innovative financing tools involving the private sector and user charging.

  9. Horizontal Priorities of the HLG for TEN - Extension • TheHigh Level Group will identify and make proposals to the Commission on • strengthening of regional co-operation • ensuring technical and administrative interoperability • implementation of new technologies like traffic management systems • measures to improve safety and security

  10. Principles of the HLG on TEN–Extension • The Group follows two principles: • defining a rigorous and clear methodology for choosing the priority projects • having in mind the concept of major trans-European axes providing an overall framework and hierarchy that are coherent with the trans-European network concept

  11. Guidelines for identification of priority axes and projects of TEN-Extension • In identifying suitable projects, the following should be kept in mind: • International added value • Network character of the exercise • Quality character • Viability and Credibility • Avoidance of unacceptable distortions of competitions • Financing

  12. Extensions from France / Spain / Italy / Greece / Cyprus towards East Mediterranean

  13. Extensions from Italy / Greece towards East Mediterranean

  14. Extensions towards from Eastern Mediterranean towards the Black Sea

  15. Greece as a hub for MOS at Eastern Mediterranean

  16. Role of the Ports • Ports • increase the efficiency of the European transport system • encourage growth of intra-EU trade and trade with third countries • overcome congestion of the main land-corridors • enhance maritime links with island and peripheral regions • strengthen the multimodal aspect of the TEN-T

  17. Role of the Ports • Ports act as nodal points for • logistical transport chains • intermodal transport • Ports integrate • Land transport infrastructure • Transport related services and ships • Maritime transport and any other land transport mode

  18. Role of the Ports • Ports have a strategic role as industrial and logistic platforms and as part of the motorways of the sea concept. • Ports are the connecting infrastructure for Community initiatives. However … It is essential that Motorways of the Sea projects do not take away traffic from existing ports and services

  19. Financing Motorways of the Sea • Funding transport investments is a difficult issue worldwide. Public funds being limited, innovative funding solutions, such as user charges and public private partnerships, have to be examined. • Motorways of the Sea currently constitute the most important new development in the sphere of intermodal and maritime transport since they are expected to attract financing from several sources.

  20. Existing financial instruments • Community assistance and cooperation is delivered through • a range of regional instruments - Regional Funds • the arrangements set out for the European Development Fund (EDF) • thematic instruments (for example the European Initiative for Democracy and Human Rights) • Other Community funds - Cohesion Funds • TEN-T: funding for the infrastructure side • State Aid • Marco Polo …

  21. Marco Polo • The current Marco Polo programme does not define preciselya motorway of the sea action • However, the service-related costs ofsuch a project can be supported under the Marco Polo programme, as far as itrelates to modal shift. The programme may only beable to fund one or two good motorways of the sea initiatives within the timehorizon 2006.

  22. Marco Polo • In Marco Polo II, the Commission has introduced a specificaction type “Motorways of the Sea”. As a general rule, where an infrastructure or a facility is funded under the TEN-Tprogramme, funding under the Marco Polo programme will be excluded for suchitems.

  23. Introduction of new financial instruments • The Commission proposed in October 2004 to replace these by six instruments, three of which are designed to implement particular policies, and three to provide the necessary response to particular geographical interests and needs.

  24. Introduction of new financial instruments • Instrument for transition and pre-accession • The instrument will cover candidate countries (Turkey and Croatia) and potential candidate countries (the Western Balkans) and is driven by the accession and pre-accession framework. • European Neighbourhood and Partnership Instrument, covering Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Palestinian Authority of the West Bank and Gaza Strip, Moldova, Morocco, Russian Federation, Syria, Tunisia, Ukraine. • Development Cooperation and Economic Cooperation Instrument • Instrument for Stability • Humanitarian aid regulation • Macro economic assistance mechanism

  25. International financing institutions for the neighbouring countries • In the neighbouring countries of the EU the funding transport infrastructure investments are based on • the European Investment Bank (EIB) • the International Financing Institutions, such as the European Bank for Reconstruction and Development (EBRD) • the World Bank • Following the Barcelona European Council in 2002, a reinforced investment mechanismin favour of the Mediterranean region was also set up within the EIB. • The extension of the EIB’s lending mandate to cover Russia as well as Belarus, Ukraine and Moldova is currently being discussed. • The two-step identification and prioritisation process of the High Level Group would be useful to the countries as a necessary phase in increasing the capacity of attracting funds from the EIB and International Financing Institutions for the selected priority projects.

  26. Conclusions • The opening of new regular routes of imtermodal and maritime transport linking the EU with its neighbours will bring mutual benefits. • Motorways of the sea, will link quickly and effectively a limited number of ports. • The “motorways of the sea” concept aims at introducing new intermodal maritime-based logistics chains in Europe, which will bring about a structural change in our transportorganisation within the next years to come.

  27. Conclusions • Motorways of the seawill thus improve access to markets throughout Europe, and bring relief to our overstretchedEuropean road system. • For this purpose, fuller use will have to be made notonly of our maritime transport resources, but also of our potential in rail and inlandwaterway, as part of an integrated transport chain.

  28. Proposal – An innovative Pilot Action Italy / Sicily – Greece / Peloponesse / Crete – Cyprus – Syria – Lebanon – Israel - Egypt • Combines all criteria set out for the development of MOS • Regions of Europe • Regions eligible for the MEDA funding • All modes of transport • International added value • Growth of intra-EU trade and trade with third countries • Overcoming of congestion of the main land-corridors • Strengthening of regional co-operation

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