Prof. Assoc., Dr. Vikenti SPASSOV

1. POTENTIAL AND PERSPECTIVS OF LOGISTICS CENTERS NEAR THE EUROPEAN CORRIDORS N 4 & N 8 IN BULGARIA AND THEIR IMPACT ON FREIGHT TRAFIC AND ENERGY CONSUMPTION Prof. Assoc., Dr. Vikenti SPASSOV Chief of Department “Logistics of engineering“University of Transports “ T . Kableshkov”, 1574 Sofia, BULGARIAe-mail : vspassov@vtu.bgtel : +359 2 9709 243 ; +359 2 9709 312 ; fax : +359 2 9709 242 18-20 May 2005 COST 355

2. Introduction European business and industry is currently going through a phase of reconstruction linked to its’ desire to become a more competitive power global markets. The access of Central and Eastern European (CEE) countries to EU markets is vitally significant for their economic development, especially in a period of reform. The commercial stability and prosperity of Bulgarian companies in a common market require reduction of supply costs, operational management of production and distribution, parallel with diversity of forms and an increase in the quality of customer service. Therefore modeling the dislocation of enterprises, distribution junctions, warehouses, terminals, free zones, big commercial chains and infrastructure objects and facilitating access to these, becomes more and more important for: - Maximizing the results from each investment made, - Decreasing the production costs, and - Minimizing the added value through the movement of products to the end consumption points. 18-20 May 2005 COST 355

3. The incorporation of Bulgaria into the EU presents a considerable challenge since it means joining a regulated system in which the industry, trade, transport and other sectors comply fully with the market demand. Bulgaria is a small country that is well positioned geographically in the Balkan region. Its economic attractiveness is largely related to the possibilities offered by its location for the commercial exchange of goods and services between the East and West. Geographical advantages however, are one thing. The status of the transportation and distribution system, the current organizational, legal and economic regulators, the extent of co-ordination of tariffs for transit passage and freight processing and the decision to stand the desired market positions, are quite another thing. 18-20 May 2005 COST 355

4. Sofia Inter-modal Center - Project for the construction of an inter- modal terminal Some of the main reasons that have imposed the necessity of the accelerated IMT construction are as follows: 1. The transit freight traffic through Sofia is three times bigger the freight traffic to and from the town. 2. Combined transportation (CT) has to develop mainly along the international transport corridors passing through Bulgaria. 3. It is necessary to develop accelerated CT along the railway transport corridors, including Ro-La transportation due to. 18-20 May 2005 COST 355

5. The new terminal would serve Bulgarian trade activity and would act as an integral element of the Pan European Corridors which pass through Bulgaria, such as the North-South Corridor 4, East-West Corridor 8, Corridor 10 and Corridor 7 Location The one-square kilometre location is situated at the intersection of the Sofia Ring Road and the Sofia Plovdiv railway line, approximately 12 kilometres from Sofia. Road Accessibility The site is located between the two highways (“Hemus” and “Trakia”). Railway infrastructureThe site for the development of the terminal is located along the main electrified railway line between Sofia and Plovdiv and equipped with complex system for automatic train control. Power Supply Land Ownership The site is located in two village areas ( Gorni Lozen and Ravno Pole). The ownership of this territory is private and municipal. 18-20 May 2005 COST 355

6. Recommendations concerning the technological development of the inter-modal terminal Stage 1 involved the construction of the first who sidings and paving. Stage 2 of the inter-modal terminal development would involve paving an additional 150 m. by 500 m. area adjacent to the Stage 1 paved area. Stage 3 involves the cargo village construction. This will cover 33 hectares, with appropriate expansion of rail sidings, and space for modern warehouses to be built, with suitable rail and truck access. 18-20 May 2005 COST 355

7. Requirements A. General Requirements Financial statement A.1. Financial provisions and financial capacity of the investor - operator A.2. Credit line and other funds sufficient to cover the costs for the construction of the terminal amounting to EUR 30,000,000 (thirty million EUR). B. Specific Requirements B.1. The investor - operator must be a leading party in the activity and must play an important role in the construction of the terminal and the development of the inter-modal services. B.2. The investor - operator must have production experience in combined transportation by road, rail and waterways. 18-20 May 2005 COST 355

8. C. Additional Conditions C.1. The establishment of the Joint Venture shall be a subject of written consent by the Employer. C.2. The consent may be revoked under the following circumstances: - The new partners do not meet the requirements either individually or as a joint venture; - Each offer shall be signed so as to bind all partners, jointly and individually, on legal grounds 18-20 May 2005 COST 355 b

9. Logistic sector case studiesWarehouse Development along Pan-European transport corridors 4 and 8 Case study examples of current warehouse centers near Pan-European transport corridor No.4 (Dresden - Praha - Bratislava - Gyor- Budapest - Arad - Kraiova - Vidin - Lom - Sofia -Thessaloniki/ Plovdiv - Istanbul. • A warehouse center of the company "Vidasnab" EOOD has operated for 20 years in the western industrial district of the town of Vidin. - Two powerful companies with unoccupied logistical capacities are situated in the eastern district of the town of Lom. • A considerable amount of warehouse centers are located in the northwestern district of Sofia, most of them private property. 18-20 May 2005 COST 355

10. Case study examples of current warehouse centers near Pan-European transport corridor No.8 (Durres - Tirane – Kaftan/Kafasan - Skopie - Ghueshevo - Sofia - Plovdiv - Bourgas/Varna) There is a warehouse center of the municipality company "Hranitelni Stoki" EAD located in the northwestern zone of Sofia. It comprises four blocks, specialized for different kinds of goods. The total area of the center is 18 960 sq.m. 18-20 May 2005 COST 355

11. Schenker Bulgaria Full & partial truck-loads  Their advantages: - clearance at the EU entry border option - daily GPS tracking - optimal environmental-friendly transport routes - transportation of dangerous cargo - transportation of temperature controlled cargo - liquid and bulk cargo Oversized and heavy-lift cargo   The most significant point is to find the optimal route. Multi-modal transport is quite often required, i.e. land–sea–land or land-river-land. The transportation of oversized and heavy lift cargo requires exceptional preparation and coordination. 18-20 May 2005 COST 355

12. Logistics   Taking logistics out of the company cuts total costs by reducing fixed costs at the expense of variable costs. Schenker analyzes, designs and manages transport and logistics processes. Insurance Schenker EOOD is a licensed insurance broker offering the products of the leading insurance companies in Bulgaria under the most beneficial conditions 18-20 May 2005 COST 355

13. CONSUMERS IN LOGISTIC CENTERS Artificial Lighting Artificial lighting is the main consumer in industrial sites including the logistic centers. The electric energy consumption for technology needs depends on a set of factors connected with the activity organization and testing certificate data of machines and equipment used. The most significant factors are as follows: • Volume of material handling work; • Shifting; • Mode of material handling equipment operation; • Efficiency of machines and equipment per a unit of installed electric energy; • Level of automation of technological processes (systems of automated regulation of electric energy consumption according to machine and equipment loading, microprocessor control of operations, etc.). 18-20 May 2005 COST 355

14. Energy production and consumptionThe impact of the development of the container terminal on energy production and consumption is not addressed in any detail in the existing EIA. Development and expansion of the container terminal will facilitate movement of freight to and from Sofia and other inland destinations by rail rather than by truck. As this occurs, energy will be saved. 18-20 May 2005 COST 355

15. Thank you very much for your attentionProf. Assoc., Dr. Vikenti SPASSOV vspassov@vtu.bg18-20 May 2005 COST 255