MEGA Ships state of the art: are (Italian) ports able to take the challenge?
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1 MEGA Ships state of the art: are (Italian) ports able to take the challenge? Paolo Costa Assoporti,Member of the Board Venice Port Authority, President 43 th FONASBA Annual Meeting Venice 12 October 2012
2 The new geography of the world trade
3 The world economic scenario Since mid 2008 the world economy has slowed down, and its trades have been affected. Costs have been constantly increasing and rates are at the lowest levels; Trade flows have followed different patterns; Source: ITF Briefing news 2012 As to adapt their business to the new economic climate, maritime carries have modified their strategies.
4 The world economic scenario
5 Larger markets call for economies of scale to exploit Mega ships (and new alliances) are the strategic answer of the shipping industry to this challenge A process reinforced by the need to react to the increasing cost of fuel (Nowadays, bunker costs account for as much as 78% of the total daily costs of a vessels, compared to 28% in the 1990s)and then combined with the slow steaming choice
6 Fleet Size Evolution The size of container vessels has increased tremendously over the last years; Source: Ocean Shipping Consultants; Drewry Shipping Consultants In 2013 EEE TEUs Maersk vessel will enter operations; TEUs vessel will become reality?
7 Fleet Size Evolution The increasing of vessels size is affecting mainly the FE-EU Trade
8 Mega Vessels: Impact on the Maritime Leg of the Logistic Chain These strategies have produced positive effects on the maritime leg of the logistic chains, reducing its costs; % 10% Yet, the costs of the maritime leg have a little impact on the costs of the whole logistic chain. Other Price Components 2003 Ocean Freight 3% 2005 Source: Hapag Lloyd
9 Mega Vessels: Impact on the Logistic Chain The deployment of mega vessels makes the maritime leg less flexible, reduces the number of ports of call and impose stricter schedules.the bigger the vessel, the more restrictive the infrastructural and operational requirements ; This heavily affects the inland leg of the logistic chain, which has to be modified, replacing efficient maritime routes with more expensive and time costly inland connections.
10 Mega Vessels: Impact on the Logistic Chain Are the advantages for the maritime carriers likely to offset the disadvantages for both ports and inland logistic systems?
11 Even Bigger Vessels? What Are the Consequences... Nowadays only few ports worldwide have nautical accessibility and logistic facilities to accommodate the new EEE TEUs vessels; The deployment of the TEUs vessels would worsen the scenario
12 Origin 20k TEUs 2k TEUs P1 8k TEUs 20k TEUs 8k TEUs 4k TEUs P3 D1 2k TEUs 4k TEUs 8k TEUs 2k TEUs P2 4k TEUs 2k TEUs 2k TEUs 2k TEUs 2k TEUs 2k TEUs D7 D2 2k TEUs 4k TEUs D3 4k TEUs D6 D4 D5
13 ...An ineffective Logistic Chain!! The deployment of a U.L.C.V. carrying TEUs (instead of two TEU vessel plus one TEU ship)would modify the structure of the logistic chain, both introducing some degree of rigidity by gathering all the cargo in a single vessel from the origin to port 2, or diverting the cargo from its original maritime routes to more costly and ineffective inland legs; In both cases the deployment of a U.L.C.V. would put smaller ports and their logistic systems out of business or in a different hub and spoke framework
14 The Italian answer Presently only two Italian ports have already the minimum draught and the quay length required to accommodate the U.L.C.Vs.; All of them have to adapt equipment and facilities to handle the number of TEUs unloaded and loaded by these big vessels in each single call. Quays lenght (mt) Max Draught ( mt) Trieste ,0 Venezia ,6 Ravenna ,5 Ancona ,0 Taranto ,0 Gioia Tauro ,0 Augusta ,8 Salerno ,8 Napoli ,0 Civitavecchia ,0 Livorno ,8 La Spezia ,0 Genova ,0 Savona ,0 Cagliari ,0
15 Vessels Calling Italian Ports and Fleet size evolution Venezia Ravenna Ancona Salerno Trieste Livorno Napoli Genova La Spezia Cagliari Gioia Tauro Source: Ocean Shipping Consultants; Drewry Shipping Consultants
16 Optimizing the logistic chain efficiency What makes the logistic chain that maritime leg oriented? Ships vote with feet...ports can t!!! What can be done in order to optimize the whole logistic chain efficiency? 1.More coordination among players; definition of external costs to be inserted in the maritime carriers cost functions; 2.Reorganization of ports or system of ports as to adapt their scale of activity and efficiency to a reasonable increase in ship size.
17 Optimizing the logistic chain efficiency Is a stabilization of freights in FE EU Trade needed? Is an EU regulation authority for maritime and logistic market needed (like that exists in the U.S.)? On 2008 the EU directive 204/86 Liner Conference Exemption has been repealed. Is it now the time for a new regulation?
18 A greener way to the market -97 KG CO2/TEU
19 Adapting to mega ships: the multiport gateway solution In order to avoid the obsolescence of many existing ports: Combine few ports into a single gateway (old ports as quays of a single gateway) connected with a large scale inland transport and logistic system in order to reach the scale and the efficiency of operation required by the mega ship Distributing the high cargo flow pressure in several coastal points (ports)
20 The Ten-T (Trans European Network) TEN T
21 Italian Ports in the Forthcoming Scenario The solution for the Italian ports is to organize themselves into multiport gateways and take advantage of their connections with the European TEN T Corridors; 5 multiport gateways can be identified: Tyrrenic, north Adriatic, Campano, Pugliese and Siciliano. Source: MIT, Allegato Infrastrutture 2013
22 ADRIATIC MULTIPORT GATEWAY
23 The contribution of Venice to the Adriatic Gateway: An Off Shore/On Shore new terminal It makes the port of Venice a port to accommodate the last generation U.L.C.Vs., handling efficiently their cargo. From Venice NOW TEU? to Venice Offshore Terminal
24 Offshore Terminal 8 NM off Venice s coast 20 m deep natural seabed Oil and container terminal Up to 3 mln TEUs
25 Why a terminal Off Shore The new terminal complies with 5 national strategic goals: It chase away oil traffics from the Venice lagoon; It increases the efficiency and handling capacity of the port of Venice; It serves as maritime gateway for cargo to be shipped along the Po inland navigation system; It increases, together with the ports of Ravenna and Trieste linked to the TEN T corridors, the efficiency of the North Adriatic Ports, contributing to reduce the so called logistic tax paid by the Italian manufacturing.
26 A FLEXIBLE NAUTICAL TRANSFER SYSTEM The System is very flexible since many onshore yards can be served by the same Venice offshore terminal: 4 on shore destinations are already in the project (Marghera, Chioggia, Porto Levante e Mantova), few more are already under consideration.
27 Fully integrated system: ship- barge - terminal High Automation System, dedicated structures; No delays in transfer, speed decided by ship to shore cranes; Transfer from ocean ship to land terminal in hours; Handling of daily peaks through flexible buffer area
28 Thank you for your kind attention
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