Danube Ports centres of intermodal logistics and economic growth
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1 Danube Ports centres of intermodal logistics and economic growth ESPO 2013 Conference Manfred Seitz, General Secretary Varna,, 30 May 2013
2 What is Pro Danube International? Platform of private companies with strategic economic interest in better framework conditions and higher public investment in the Danube transport & logistics system Industry & Wholesale Transport User Logistics Service Providers Ports & Terminal Operators (Associations) Barge Operators (Associations) Shipyards & Suppliers & Others Established autumn 2011 by companies & associations Non profit association based in Vienna Network of currently more than 120 companies More than a lobbying organization as we initiate and execute projects 2
3 Danube waterway Key European transport axis 43 Mio. tons of cargo in 2010 High potentials Many problems Source: via donau Danube serves an economic area of c.90 Mio. inhabitants Connects CE &SEE with growing markets in Black Sea (TR, RUS, UA) Port of Constanta as a hub for hinterland traffic River ports could serve as focal points for re-industrialization & regional economic growth Provides cost-effective logistics for land-locked industries ensuring competitiveness & jobs Environmentally friendly green transport corridor 3
4 Severest problem: insufficient waterway maintenance Several waterway administrations fail to ensure minimum standards in waterway maintenance (2,5 m fairway depth at LWRL according to recommendations of Danube Commission) As a consequence: Reduced efficiency of transport operations, loss of customers, shutdown of barging companies Risk of total blockage of transport chains (like 25 days in autumn 2011 caused by shallow water hot spots in Bulgaria and Hungary) Millions of Euros in financial losses for barging & port industry plus high extra costs & supply risks for manufacturing sector together with loss of trust in transport reliability PDI action on better fairway maintenance: resulted into EC initiative (VP KALLAS & CM HAHN) which produced on 7 June 2012 in Luxembourg a Declaration of Transport Ministers for targeting better waterway maintenance (all Danube states except Hungary endorsed this Declaration) Despite this declaration and clear international obligations for fairway maintenance, significant lack of short term measures in dredging & riverbed surveying can be registered 4
5 Two realities in Danube waterway policy Political support Political failure in some states 5
6 Impact of poor maintenance: financial losses high opportunity costs Draft 2,00 2,30 2,50 2,70 Total revenue ( Euro ) Total Costs Profit Profit % -12,06% 7,15% 19,96% 29,11% Profit per to -2,53 1,50 4,18 6,10 Calculation basis: Pushed convoy of 6 six barges, Constanta Hungary & return, Diesel 850/ton 250, , , ,000 50,000 Total revenue ( Euro ) Total Costs Profit ,
7 Danube Ports: Focal points of transport & regional policies Danube ports are key elements for a sustainable and efficient transport system and important centres of economic activities High potential for regional growth & cross-border initiatives Danube Ports must be considered as catalysts for re-industrialization and regional growth with Port of Constanta as main logistics hub 7
8 How to unlock the economic potentials of Danube ports? Increased public investment in port & terminal infrastructure including upgrade in road & rail access as part of the future operational program for transport & regional development Improved/new instruments for public-private co-operation (coordinated project planning and project execution/strong & professional project management structures) Ports shall become preferred centers for (re-)industrialization (national and foreign direct investments) Improvement of current port legislation & active & service-oriented public port management & industry site development (Cross-border) regional development plans and actions Definition & implementation of state aid schemes for port & terminal investment similar to programs in Western Europe Back-financing of state aid schemes via Structural Funds in period in EU member states with Operational Programs; special attention to ports in EU support programs for Serbia, Moldova and Ukraine Increased leverage of public spending and aligned private investment will stimulate economic growth and create jobs in the Danube region 8
9 How to modernize the Danube fleet? Challenge is to optimize existing fleet with regard to energy-efficiency, emissions, propulsion, safety of navigation and operational costs, but: Not everything which is technically feasible is economically viable Therefore we need a transition roadmap for new techniques & technologies Important preparatory step: EC/DG Regio commissioned study Innovative Danube vessel Comprehensive Innovation Strategy including an Innovation Implementation Roadmap as part of a long-term strategic IWT development policy of the European Union LNG as fuel for Danube vessels has an extremely high potential to meet efficiency and environmental objectives (see: LNG Masterplan for Rhine-Main- Danube) Danube barge operators need financial support for the modernization of the fleet from national State Aid Schemes & EU programs 9
10 LNG Masterplan for Rhine-Main-Danube - Concept Platform for cooperation of authorities and industry stakeholders with the purpose to: Facilitate the creation of a harmonised European regulatory framework considering LNG as fuel and as cargo for inland navigation Deliver technical concepts for new and retrofitted vessels Execute pilot deployments of vessels and terminals Technical concepts Regulatory framework Pilot deployment Develop a comprehensive strategy with a detailed roadmap for the implementation of LNG in line with the EU policies in transport, energy and environment Proposal currently under evaluation by EC, funding decision expected before summer 10
11 LNG Masterplan for Rhine-Main-Danube Basic data Project proposal filed for TEN-T Multiannual Call 2012; PP 18; Study with integrated pilot deployment Timeframe: 1 January December 2015 Planned eligible costs: 121 mil. EUR Beneficiaries: 33 public / private bodies / incl. 1 member state Active involvement of Ministries of Transport of NL, AT, CZ, SK, BG and CCNR Non-funded partners: 35 public / private bodies & professional associations (as of ) Overall and Danube region co-ordinator: Pro Danube Management GmbH; Rhine region co-ordinator: Port of Rotterdam 11
12 Pilot deployments - Overview LNG terminals / bunker stations Bunker station Port of Antwerp LNG Terminal Port of Constanta (Transport Trade Services S.A.) LNG Terminal in Ruse (Bulmarket DM Ltd.) LNG tankers Combined LNG MGO tanker (Argos Bunkering B.V.) LNG Tanker (Veka Mariska B.V.) 2 LNG Inland Tankers (Chemgas Shipping B.V.) LNG coastal carrier (Bernhard Schulte Cyprus Ltd.) LNG vehicles & Machinery Combined LNG/CNG fuelling stations (Bulmarket DM Ltd.) LNG fuelled tank trucks (Bulmarket DM Ltd.) LNG propelled vessels Container vessel (DCL Barge B.V.) LNG pusher (Kooiman Marine B.V.) LNG propelled chemical tanker (Chemgas Barging S.a.r.l.) 3 LNG Propelled pushers (Navrom S.A. Galati) LNG Pusher (Bulmarket DM Ltd.) LNG Propelled chemical tanker (Bodewes Binnenvaart B.V.) 12
13 Vision: Danube Ports for LNG distribution to the hinterland Linz Bratislava / Komarno Vienna Budapest / Györ Vukovar Pancevo Galati Giurgiulesti Lom/Vidin Giurgiu/Ruse CONSTANTA Danube = GREEN BLUE GAS CORRIDOR 13
14 Conclusions Improvement of current situation requires higher political awareness and strong coordination by the European Commission EUSDR/PA1A provides a valuable framework for coordination but needs high-level policy backup (many problems cannot be solved on current (administrative) level New EU Programs (like CEF, CBC, Danube, Structural Operational Programs, etc.) must tackle infrastructure shortcomings EU programs need to address the private sector better than currently in order to unlock the human and financial potentials of the region Administrative barriers for Danube transportation must be reduced with the help of a joint initiative of transport, customs and immigration authorities Low water periods cannot be avoided but safe and efficient transportation can be ensured if ALL Danube States respect the international obligations Cost-effective Danube logistics strengthens the competitive position of the manufacturing industry and guarantees economic growth and jobs LNG will play an important role as fuel and as a cargo It s time to act now! 14
15 Further information Manfred Seitz General Secretary Pro Danube International Mobil: Alexandru Capatu Chairman Pro Danube International Mobil:
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