Legal structure of the Port of Barcelona The Spanish port system

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2 Legal structure of the Port of Barcelona The Spanish port system The Spanish port system is Governed by law: Law 27/92, reformed 62/1997; Law 48/2003 and Law 33/2010 * autonomic ports (basically fishing and leisure ports) that are under the control of regional governments * general interest ports: ports under the central government control (Ministry of Public works). There are 44 ports of general interest and 28 port authorities (some of them manage several ports). Landlord management model: The Port Authority provides the infrastructure and land and regulates the use of this public land, while the services are provided by private operators benefiting from concessions and rents Other characteristics of the Spanish Port system: Self financing and inter ports Other characteristics of the Spanish Port system: Self financing and inter-ports solidarity

3 Economic regime of the port Financial Self-sufficiency Port charges and fees must cover the ordinary expenses of the Port Authority and ensure sufficient profitability to finance future investments and debt repayment. The investments of Port Authorities are financed using their own financial resources and bank loans. There are no State subsidies.

4 The Port of Barcelona: a singular port Economic relevance of the Port The Port s contribution to GDP is M jobs*, 0,85% employment of Catalonia Catalonia 1,4% GDP 71% Foreign maritime trade** Spain 0,3% GDP 21% Foreign maritime trade** * Direct + induced ** In value terms Every 100 of income produced in the Port generates 58 of additional income in the rest of the economy Every 2 port jobs generate 3 additional jobs in other economic sectors. After the Port expansion, the Port will be able to generate 5% GDP of Catalonia ITU: Intermodal Transport Unit

5 Barcelona: a diversified port Container traffic (Tm &M TEU) A highly specialised port Traffic 2010 Total traffic M tm Container 2 M TEU Vehicles 700,000 Ro-Ro traffic Cruise passengers 300, UTIs 2,4 M pax

6 The Port of Barcelona Three ports in one Airport Zona Franca City Logistics Port Commercial Port City Port

7 Port of Barcelona: strategy The future of the Port Main logistics hub of the South of Europe and the Mediterranean Strategic city Port Mediterranean Hinterland Interocean routes Cargo flows Expansion of the Port and Logistics areas Improved connectivity with hinterland and foreland Client oriented: competitiveness/quality /productivity/efficiency,

8 1. Expansion of the Port and Logistics areas Expansion of the Port Expansion of Port infraestructure: More surface, more capacity New terminal Prat wharf: Hutchison Investment 500 M Concession 30 years Capacity Surface Wharf line Draught 3 M TEU 100 ha 1,500 ml 16.5 m Capacities/year Project Completion Tons 50 milion 85 milion 130 milion Containers (TEU) 2,6 milion 4,5 milion 10 milion

9 2. Improved connectivity Increase of rail traffic nsported il Container tra by ra Evolution of rail use in the Port of Barcelona Container (Import/ Export) % 8% 6% 4% 2% 0 0% % use The container rail traffic of the Port of Barcelona increased significantly in recent years, reaching 8% in December The objective is to reach 23% Rail traffic 2010 (% var. 2009) Container TEU +75% Vehicles Ud +22% Bulk tn +195% Objectives of the rail strategy: t Improvement of the rail connections of the Port with the hinterland Development of the Port hinterland to Southern and Central Europe Increase of rail services

10 Rail services Strategy by transport corridors Bordeaux 2 * Paris 2* 2 Toulouse Lyon Ludwigshafen Strasbourg 2 3 2* Milano Nº of weekly services In each direction. From the TCB and TERCAT 5 port rail terminals * Future service Vitòria Burgos 3 3 5/10 Madrid 5 Zaragoza 2 1 2* Lleida Tarragona 2 * Perpignan Transport corridors Ebro Transversal iberian South of France European Motorways of the sea with Italy Motorways of the sea with Maghreb

11 3. Client orientation: improvement of productivity and efficiency

12 Global scale companies (Multinationals) Main features of world logistics today New logistics mega-operators Cooperation and competition between ports Relation between ports and logistics centres Change in the typology and amount of Logistics costs (less inventory costs vs. more transport costs) Lead time (Goods delivery in 24 hours) Geographically integration of logistics activities Changes in distribution schemas (one vs. several continental distribution centres) Environmental limitations Main maritime routes Main straits and canals Countries without sea connections Main navigable rivers

13 Why efficiency in maritime logistics is so important? 1. Logistics costs are equivalent, depending on the economic sector, to 8-15% of a product s retail price and this percentage tends to grow. 2. From 2003 to 2005 the world GDP grew around 2,9%. The maritime transport grew 5,1%. 3. In 2006, world ports handled 440 million TEU, 13,4% more than in That year, road transport increased 4,5%. 4. From 1950, world GDP has been multiplied by 7, and worldwide exports by In Spain, port activity represents 20% of the transport GDP and 1,1% of the total GDP. It creates direct jobs and more than indirect jobs. 6. In 2007 in Spain, 55% of exports and 83% of imports were done by sea. Road transport only accounted for 41% and 16% respectively. 7. Spanish port traffic has increased 60% in the last 10 years ( ) 2005). 8. Nowadays, general cargo s logistics costs represent 4,7% of their total value.

14 The impact of logistics costs on the price of products NSTR logistics cost / total cost 0 Agricultural products and live animals 21,1% 1 Foodstuffs and animal fodder 16,5% 2 Solid mineral fuels 5,9% 3 Petroleum products 0,7% 4 Ores and metal waste 41,5% 5 Metal products 18,1% 6 Crude and manufactured minerals, building materials 32,0% 7 Fertilizers 0,5% 8 Chemicals 6,6% 9 Machinery, transport equipment, manufactured articles and miscellaneous articles 4,7% Logistics costs include all costs of maritime transport (port passage, sea freight), land transport and inventory costs

15 Only a minor percentage of the costs of logistics chains or even of the maritime leg of these chains, are due to ports Main port costs Port fees Terminal Handling Charges (THC=150 aprox. Far East / Europe) Container stockage in terminal - Wharfage Inspections Other costs linked to ports Customs clearance Loading / Unloading train or truck Other (commissions, land connections, etc.) P t i t th ffi i d titi f l i ti h i i Port s impact on the efficiency and competitiveness of logistics chains is not linked to costs and/or tariffs, is linked to speed, transparency, productivity and intermodality

16 What is an efficient port? Key features of an efficient port Reliability: clients and logistics operators need to know their planning (lead time, etc) is going to be respected and fulfilled. And this despite inspections, etc. Speed: Reduce as much as possible time of stay of merchandises in the port due to port procedures. Transparency: clients need to know always what is happening to their cargo and why Intermodality: Number, frequency, capacity, price of train, barge, Ro- Ro connections AND PRICE!!

17 Increase in inefficiencies in a port Increase of logistics costs (time, price, etc.) for exporters and importers Reduction of competitiveness of local and regional companies Part of the traffic is deviated to other ports Captive trade from immediate hinterland becomes less competitive Increase of CO2 emissions Increase of land transportation Increase of Congestion in roads Reduction of local logistics sector Reduction of direct and indirect employment in the logistics sector Exports and imports are reduced Companies reduce production Reduction of employment

18 Some of the tools developed in order to improve efficiency 1. Portic: The Port Community one stop shop 2. SAC: The customer service 3. The Quality Plan

19 2. SAC: The Port s C S Transparency and Mediation Main responsibilities: Attention of claims, requests and consultations Efficiency Network (Quality Plan) Implementation Management of non-compliance / breaches of standards / indicators included in the Efficiency Network. Mediation between customers, port community agents and administration Costs reports / analysis for customers Updated Information of the Port activity and customs

20 3 T Q P The Quality Plan is launched in 1995, having as its main objective to assure the security of cargo. The main tool to achieve this objective is the establishment of the Quality team (EQ) that assures reliability and security of cargo during inspections of containers in the terminals and extended the use of seals to 100% of the Port s containers. Currently we are in the second phase of the Plan, which focuses on the development of a guarantee brand, based on efficiency commitments, controlled through indicators.

21 Efficiency Network is the Port s Brand of Quality The Efficiency Network is a commitment to quality and efficiency of service between the companies and institutions involved in maritime transportation at Port de Barcelona. It is a support tool for promoting Port of Barcelona and its operators. It is a system that promotes the improvement of processes efficiency at the Port de Barcelona. Certify for Efficiency Network means offering your customers SECURITY OF GOODS, INFORMATION AND TRANSPARENCY AND RELIABILITY OF OPERATIONS

22 Continuous Improvement System EFFICIENCY NETWORK means: Periodic measurement of efficiency indicators PREVIOUSLY DEFINED. Random checking for compliance degree of CERTIFIED companies for guaranteed processes. Analysis of types of complaints and incidents. Reports to define the continuous improvement to apply to fix incidents.

23 Service efficiency commitments RELIABILITY OF OPERATIONS - Collection and delivery of goods at deadlines agreed with the customer, within a margin of two hours. - Clearance within 17 hours. - Clearance of goods with the participation of SIF within 25 hours. - Shipment of goods on the envisaged scale according to agreement. - MMPP entry permit on planned entry day to the Port. - Notification of the Knowledge of Embarkment availability 10 hours after departure.

24 Service efficiency commitments INFORMATION AND TRANSPARENCY - Provide reliable information on the main operations related to the passage of goods through the Port. SECURITY OF GOODS - No incidents will occur to the goods during their stay at Port. - In case of imports, shipment container will be delivered with the same seal with which it left the terminal.

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