THE EUROPEAN TRANSPORT POLICY. A FEW chosen CHALLENGES FOR THE FINNISH SHIPPING INDUSTRY

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1 THE EUROPEAN TRANSPORT POLICY A FEW chosen CHALLENGES FOR THE FINNISH SHIPPING INDUSTRY

2 ROLE OF SHORT SEA SHIPPING Short Sea Shipping (SSS) key element in promoting economic cohesion, welfare and growth in Europe share of SSS represents 62 % of total EU 27 maritime transport of goods (Finland 93 %) to/from EU 27 ports; liquid bulk 944 Mton (49,5%), dry bulk 376 Mton (19,7 ), containers 200 Mton (10,5 %), roro/mobile units 245 Mton (12,8%), other - break bulk 143 Mton (7,5%)

3 SHORT SEA SHIPPING AND CO-MODALITY - INTERMODALISM European Commission s two communications of January 21, 2009 (I) strategic goals and (II) action plan for creation of maritime transport area without barriers in Europe ensuring the path the Commission has taken consolidating position of short sea shipping within the context of co-modality proposed measures will lead more balanced use of transport modes, based on their own merits

4 A FEW CHOSEN CHALLENGES 1. INTERNALISATION OF EXTERNAL COSTS Sea transport covers all of its external costs fully compared to other modes of transport Heavy subsidies to other modes of transport (road and rails are tax financed while fairways and ports are usually financed by users) Report Delft, February 2008 aim to right direction Few steps have been taken core directives 2006/38/EC (the Eurovignette Directive ) rail directive 2001/14/EC, but not on the point

5 1. Internalisation, cont... In case external costs are internalised making all modes of transport self financing: Will have profound effect on the conditions of transport between different modes of transport Will put all the modes of transport at an equal and uniform level as regards the conditions of competition Will benefit the sea transport mode, particularly short sea shipping (competing in the same relevant market as road, rail inland waterways)

6 2. IMO MARPOL 73 /78 ANNEX VI Industry welcomes the agreement reached at IMO MEPC 57 There are still huge concerns on the impact of the reduction of the sulphur content to 0,1 % as from 2015 in the ECAs since a substantial part of short sea services takes place in the ECAs Distortion of competition in favour of road and to lesser degree rail transport Against long established EU -policy of modal shift from land to sea in the context of co-modality and short sea shipping Need for an impact study underway Should be dealt with on a European basis in the context of European transport policy

7 3. Gross tonnage (GT) as basis for charges 1969 International Tonnage Convention; not intended that GT should be used as basis for charge structure; no compulsion to use GT No common regulation for the compilation and publication of tariffs for fairway or port users in the EU GT commonly used as basis for cost calculation on towage, pilotage, mooring fairway and port dues as well as e.g. light, waste disposal, agency and quay fees GT is unsuitable basis for charging, particularly due to its impact on short sea shipping as is favours some type of vessels over others thus creating an unfair level of playing field MTCP TONNAGE MEASUREMENT STUDY NOVEMBER 2006 Actual Displacement Ton French system Use of tonange reduction factors

8 4. Use of English language Pilot Exemption Certificate (PEC) The number of foreign vessels visiting Finnish ports has grown significantly in comparison with the decrease in the proportion of ports visited by Finnish vessels The volume of traffic is expected to continue to increase in the future as marine imports and exports increase Significant increase of the transports to Russia (building more ports) and a high increase in Russian oil exports. need to develop general risk management methods to control language and communication problems to ensure safe navigation and operations.

9 Use of English language cont.. The Finnish WG Report 2008 Risks and measures of the risk managements in relation witht operational language related to the communication of the language used in connection with the maritime operation is totally in line with the Commission s Maritime transport Strategy Report 2008 in favour of the use of English English as the only official shipping language was found to be one of the most important future risk management methods.

10 5. CARRIAGE OF GOODS and ATTEMPTS TO HARMONIZE LEGAL REGIME Nordic Maritime Code and industry co-operation Fragmented legal regimes between different modes of transport, barrier to short sea shipping within chain of efficient intermodalism Not cost effective Customer tailored solutions

11 Thank you for your attention! Tapani Voionmaa LL M, Sea Captain, Finnlines Plc Chairman elect of EUROCAG