Overview of SmartRivers 2006 Report
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1 Overview of SmartRivers 2006 Report --- Folding Inland Waterways into the Global Supply Chain --- Arno Hart Group
2 Integrated Logistics Chain Management Slide courtesy of ViaDonau
3 What is SmartRivers?
4 The European Network Slide courtesy of European Federation of Inland Ports
5 Modal Split of Total Cargo Transport 5 EU examples The Netherlands Germany 7% 3% 13% 45% 15% Road Rail Barge Pipelines 44% 4% 69% 5% 14% Austria Eurowide - 6.5% water 51% 14% 3% Belgium 14% 2% 6% France 30% 13% Slide courtesy of Port of Rotterdam 70% 78% EU Statistics 2004
6 Institutional Framework Euro Wide Inland Navigation Europe Research & Development Subsidies (Marco Polo) Equal competition/competitiveness National Development agencies Maintenance of locks Dredging Corridors/Axis International treaties along main waterway Manheim Accord The Rhine Belgrade Convention Danube Regions/Cities Operate ports/nodes Vienna Brussels Manheim
7 Container-on on-barge Services are Viable and Sustainable Container-on on-barge services have existed almost as long as the container trade itself has been in existence, predominantly in Europe E and in China/Hong Kong. Container-on on-barge services are also in existence in the United States, particularly in the northwest, the t Gulf Coast and along the eastern seaboard.
8 International Gateway Port The most successful container-on on-barge examples have at least one major international container gateway seaport at the mouth of the waterway. The international gateway is the critical node between n the domestic inland container barge services and the international container ship services to major offshore container trade markets.
9 The Rhine\Scheldt Scheldt\Seine Seine Network Slide courtesy of European Federation of Inland Ports
10 2 of the Top 5 World Ports Rotterdam Singapore Shanghai Hong Kong Antwerp (International maritime traffic in millions of tonnes 2005)
11 Main European Ports: Evolution of Market Shares (Total Container Trade) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Hamburg Bremen Rotterdam Antwerp Slide courtesy of Port of Antwerp
12 Inland Mode Shares at the Port of Rotterdam million tons barge rail pipe road total liquid bulk % 1.6 1% % % % dry bulk % 4.1 5% % % containers % % % % conv. cargo 2.2 6% 1.3 3% % % % 48% 5% 21% 26% 100% Slide courtesy of Port of Rotterdam
13 Mode Shift Tactics Tactical approach for Rotterdam. Modal Shift % of tonnage on waterways Leases for Port Tenants Revenue Potential # of Ships calling at port Economic Development # of jobs created
14 Significant Concentrations of Upstream Economic Activity Container-on on-barge services are sustainable only if there are significant existing or potential volumes of international maritime ime containers moving between the requisite international gateway port and inland markets. The first tier-inland inland markets are typically adjacent to or within close proximity to a navigable waterway.
15 The European Banana United Kingdom Denmark Ireland Dublin The economic power base of Europe Liverpool Leeds Cardiff Regions with greatest market access 10% surface 50% output London The Netherlands Amsterdam Den Hague Rotterdam Belgium Antwerp Cologne Brussels Bonn Luxembourg Frankfurt Paris Strasbourg Bern Germany Stuttgart Switzerland Peripheral areas 60% surface 20% output France Milan Italy Slide courtesy of Port of Antwerp Spain Barcelona Rome
16 R dam s s Inland Container Markets Germany Belgium France Switzerland Number: x Container
17 The Importance of Scale In order for the waterways to compete and provide the requisite levels of service and reliability to the container markets, it is i important to focus on those market segments where there is significant scale. Scale is also critical in terms of attaining measurable and real benefits to congestion and the environment.
18 Overview of COB on Rhine Highest COB densities are on. 35% mode share Along the Rhine Corridor 3 Million TEU s Wide range of commodities Rhine River System US military 1 st customer Most secure mode Civilian shipments for military Barge op s s b-hauled b empties S. Germ FF s s b-hauled b exports Full commercial service
19 Inland Waterway Densities (1997) Slide courtesy of Port of Mannheim
20 Port of Mannheim Rhine-Neckar: European Metropolitan Region Hinterland Port 11,310,000 m² m Slide courtesy of Port of Mannheim
21 Throughput Containers (TEU) Port of Mannheim Slide courtesy of Port of Mannheim
22 Manheim Overview 26 Hours between Manheim and Rotterdam 800kms, no locks First containers moved in 1968 US military s s civilian cargo Commercial container cargo followed 24 million people in larger Neckar/Rhine region Industry BASF plant largest in world, 37k employees Typical vessel carries boxes Can carry any kind of cargo Larger ones are dedicated container barges
23 Container Terminal Mühlau M Docks 30% of COB arrive/leave by rail (Spain, Switzerland) On-dock 500m trains, 20 cars, single stack Slide courtesy of Port of Mannheim
24 Container Terminal Neckar River Ship-to to-ship transfer Slide courtesy of Port of Mannheim Neckar allows 2-high 2 stacks Rhine allows 3-high 3 stacks
25 Climate Change Global warming is is undermining. Declining rainfall/snow Lowering water level Inland Water Transport Sustainability Optimum draft 2 meters (6.5 ft) Reduce barge efficiencies 60% of normal load factor
26 Victim of Own Success Growth has Flattened. Gtwy Ports Push Mode Shift No dedicated warf/dock space Terminal Operators/Carriers Container Traffic Volumes Want density per barge Barge Operators Prefer smaller frequent loads Fuel and charter rates up
27 Reliable, Rapid & Scheduled Services are a Prerequisite The conditions and characteristics of the waterway system have to support a rapid and scheduled service that is reliable. These include i depth, minimal locks, and manageable distances. Policies should support the development of faster and lower-cost vessels that are specifically designed and built to serve the marine container market.
28 Slide courtesy of Ingram Barge Company
29 6-barge Push Unit in Long Formation Slide courtesy of Port of Rotterdam
30 Motorship / Push Barge Combination Slide courtesy of Port of Rotterdam
31 A Lifestyle
32 Innovations in IWT Container Transport Slide courtesy of Port of Rotterdam
33 Innovations in IWT Scale increase Slide courtesy of Port of Rotterdam
34 Largest container barge JOWI (510 TEU) Slide courtesy of Port of Rotterdam
35 Slide courtesy of Port of Rotterdam
36 Eroding Modal Market Shares While inland waterways are an absolutely vital part of the multi- modal system, specifically in the case of bulk/liquid commodities, they are losing market share in the high-service international container and domestic intermodal markets.
37 Need to Grasp and Market the Opportunities Passive supply side approaches, relying on trends such as converging transport costs, and internalizing external costs such as congestion and the environment are not achieving needed results. Proactive policies, funding, incentives, promotion, marketing and project development efforts should be targeted at segments of the waterway ay system that provide the most ideal conditions for operating container ainer- on-barge services.
38 Danube is not the Rhine Emerging corridor. Lack of Economic Densities Weaker industrial base No international gateway Port of Constantia Danube Corridor k TEUs mil TEUs mil TEUs COB is underdevelopment Constantia - Vienna
39 Austrian Navigation Policy Slide courtesy of ViaDonau
40 Slide courtesy of Federal Ministry of Transport, Austria
41 Responsible for developing traffic on Danube Based in Vienna Para-state agency
42 Services of Waterway Development Agencies Slide courtesy of ViaDonau
43 Development Strategy for the Danube Competitiveness Modal shift 2007 Public Relations Informationsservices Know how Transfer SEEC Infrastructure Services Lobbying Upgrade of bottlenecks Modernisation of fleets Port infrastructure Donau River Information Services Innovation & Technology Improved services Intermodal Services Transport- and Logistics Concepts One stop shop public funding Slide courtesy of ViaDonau
44 RIS Definition Telematics Systems and Information Services in order to increase the safety and efficiency of inland waterway transport Slide courtesy of ViaDonau
45 Cost of RIS 50% Paid by by EU DoRIS Cost for Danube E8.5 Mill RIS Project Development Cost EU Wide E255mill estimated
46 RIS Concept Slide courtesy of ViaDonau
47 RIS Implementation in EU RIS in Austria RIS in Hungary RIS in Serbia RIS in Romania Slide courtesy of ViaDonau
48 Subsidies and Incentives Policies, incentives and subsidies are an important tool toward supporting and developing a start-up container-on on-barge to a break- even and financially viable level of operation. Incentives and subsidies are most successful where the market dynamics are at a significant level of scale.
49 MARCO POLO Programme ( ): 2006): To support intermodal services and alternatives to road-only only transport until commercial viability Objective: shift international increase in road freight off the road (12 bill. tkm/year in EU-15) , budget of 102 M Risk funding, business-driven All segments of international freight (except air) Services only; no research, studies or (core) infrastructure Slide courtesy of Marco Polo
50 Marco Polo Award Criteria Slide courtesy of Marco Polo
51 Marco Polo Call for Proposals Slide courtesy of Marco Polo
52 Marco Polo Projects by Action Slide courtesy of Marco Polo
53 Marco Polo: Summary of Progress Slide courtesy of Marco Polo
54 Integrated Logistics Chain Management Slide courtesy of ViaDonau
55 EUROPEAN SHIPPERS COUNCIL Focus on reliable, high quality supply chains for industry and trade Slide courtesy of European Shippers Council
56 Slide courtesy of European Shippers Council
57 Conclusions Industrial densities International gateway Successful Container on Barge Short hauls (hours not weeks) Gov t t support/innovations Vessel development Cost, applicability, speed Supply side has relied on: Convergence of transportation costs Internalizing externalities Results in Mode Share Decline
58 Inter-Related System Slide courtesy of ViaDonau
59 Thank You
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