EY: Evaluating Greece as a Logistics Hub. Thanos Mavros EY Partner / CSE Head Supply Chain & Operations

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1 EY: Evaluating Greece as a Logistics Hub Thanos Mavros EY Partner / CSE Head Supply Chain & Operations

2 A. Demographics In less than 3 weeks, 122 responses from all important sectors participated. 1. How many years does your company operate? 10% 0-9 years years > April 2018 Total respondents: % 22% 2

3 A. Demographics In less than 3 weeks, 122 responses from all important sectors participated. 2. Which sector do you operate in? 2 24% 18% 1 4% 3% 2% 2% 2% 2% Consumer Products Shipping, Port Operations Power & Utilities, Oil & Gas Mining & Metals Chemicals Transport & 3rd Party Logistics Retail Life Sciences/ Healthcare/ Pharma Telecommunications, Technology Diversified Industrial Products Agricultural Products Other services 3

4 B. Ports Infrastructures & Operations Page 4

5 B. Ports Infrastructures & Operations The Piraeus port has set the foundation for the Greek Logistics Hub to achieve excellence. 1. How do you evaluate the Piraeus port s freight infrastructure & operations in terms of: 3 32% 37% 42% 43% 40% 24% 2 22% 1 18% 2 14% 1 23% 18% 16% 24% 8% 8% 7% 4% 3% Availability / Capacity Intermodal connectivity with other transport modes Quality of infrastructures Quality & reliability of services Efficient / effective collaboration Very Low Low Meet standards Exceed standards Achieve Excellence N/A 5

6 B. Ports Infrastructures & Operations The Thessaloniki port faces many challenges in meeting standards. 2. How do you evaluate the Thessaloniki port's freight infrastructure & operations in terms of: 47% 46% 47% 49% % 20% 16% 24% 2 19% 24% 0% 8% 0% 0% 0% 0% 4% 0% 7% 0% 0% Availability / Capacity Intermodal connectivity with other transport modes Quality of infrastructures Quality & reliability of services Efficient / effective collaboration Very Low Low Meet standards Exceed standards Achieve Excellence N/A 6

7 B. Ports Infrastructures & Operations The regional ports have a long way to go. 3. How do you evaluate the regional ports'* freight infrastructure & operations in terms of: 44% 43% 43% 46% 4 34% 36% 37% 3 29% 7% 14% 0% 1 9% 0% 8% 12% 0% 0% 1 13% 0% 8% 10% 2% 0% Availability / Capacity Intermodal connectivity with other transport modes Quality of infrastructures Quality & reliability of services Efficient / effective collaboration Very Low Low Meet standards Exceed standards Achieve Excellence N/A * Patras, Igoumenitsa, Volos, Astakos, Heraklion, Alexandroupoli, Kavala 7

8 B. Ports Infrastructures & Operations Privatization, hinterland logistics development, connectivity and operational synchronization are required. 4. Following the previous questions, would you like to make any suggestions, regarding further development of the ports infrastructures & services? 1 2 Better cooperation between the ports, in order to share best practices. Single window implementation. Privatization of regional ports, like the case of the Piraeus port. 3 Sync Need for port depots. 4all operations in a 24/7 mode (including customs), so as to avoid port WH fees and minimize lead time. 8

9 C. Rail Infrastructures & Operations Page 9

10 C. Rail Infrastructures & Operations The rail infrastructure is facing many challenges. 1. How do you evaluate the current rail infrastructures in terms of: Accessibility 24% 5 10% 1 Intermodal connectivity with other transport modes 24% 54% 8% 14% Quality of infrastructures 29% 47% 8% 16% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 10

11 C. Rail Infrastructures & Operations Rail freight operations appears to be the weak link of the logistics hub. 2. How do you evaluate the current rail freight operations in terms of: Very Low Availability / Capacity Quality & reliability of service Low Meet standards 20% 2 18% 29% Exceed standards Achieve Excellence N/A 1 18% 39% Intermodal connectivity with other transport modes 3 Efficient / effective collaboration 20% 30% 19% 29% 9% 1 40% 36% 11

12 C. Rail Infrastructures & Operations Private investments should proceed at a faster pace. 3. Following the previous questions, would you like to make any suggestions, regarding further development of the rail infrastructures & services? Better connection of the Greek railroad with the central European network. Private investments in rail operations need to proceed with faster pace. Rail freight services should cover major cities. 12

13 D. Air Freight Infrastructures & Operations Page 13

14 D. Air Freight Infrastructures & Operations Air freight infrastructures and operations appear to be a strong link of the logistics hub. 1. How do you evaluate the air freight infrastructure & operations of Athens in terms of: Availability / Capacity 6% 46% 23% 2% 23% Intermodal connectivity with other transport modes 2% 2 36% 1 2 Quality & reliability of service 2% 43% 30% 2% 23% Efficient / effective collaboration 4 2 2% 23% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 14

15 D. Air Freight Infrastructures & Operations Better connectivity and a higher intermodal concept are required. 2. Following the previous question, would you like to make any suggestions, regarding further development of the air freight infrastructures & services of Athens? Planning a metro freight transferring goods from the port to the airport and vice versa. Lack of a freight intermodal concept. 15

16 D. Air Freight Infrastructures & Operations New investors should look into improving freight infrastructure and operations. 3. How do you evaluate the air freight infrastructure & operations of Thessaloniki and other regional airports in terms of: Availability / Capacity Quality & reliability of service Very Low Low Meet standards 43% 26% 43% 24% Exceed standards Achieve Excellence N/A 26% Intermodal connectivity with other transport modes 26% Efficient / effective collaboration 4% 0% 8% 2% 43% 29% 44% 30% 2 17% 2% 16

17 D. Air Freight Infrastructures & Operations Connectivity to the railway infrastructure is required. 4. Following the previous question, would you like to make any suggestions, regarding further development of the air freight infrastructures & services of Thessaloniki and other regional airports? 17

18 E. Road Infrastructures Page 18

19 E. Road Infrastructures Road infrastructures have been developed substantially. 1. How do you evaluate the current rail infrastructures in terms of: Availability / Capacity 22% 58% 14% 4% 2% Intermodal connectivity with other transport modes 4 37% 12% 7% Quality & reliability of service 2% 30% 47% 16% 4% Efficient / effective collaboration 4% 30% 43% 17% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 19

20 E. Road Infrastructures Better pricing and incentives for road freight are required. 2. Following the previous question, would you like to make any suggestions, regarding further development of the road infrastructures & the road freight services? Slow pace concerning the process of the roads' construction. All other pending road developments should proceed at a faster pace. Expensive toll pricing. Need for financial incentives, in order to use the highways. 20

21 F. Road Transport Page 21

22 F. Road Transport Road freight transport has room for improvement in becoming a strong link of the logistics hub. 1. How do you evaluate the road transport infrastructures & operations in terms of: Availability / Capacity Quality & reliability of service 24% 13% 17% 1 3% 1 30% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 53% Intermodal connectivity with other transport modes 48% Efficient / effective collaboration 10% 7% 2% 1 2% 28% 40% 4 49% 22

23 G. Sea Transport Page 23

24 G. Sea Transport Sea freight transport appears to be a strong link of the logistics hub. 1. How do you evaluate the sea transport infrastructures & operations in terms of: Availability / Capacity 17% 42% 24% 4% 13% Intermodal connectivity with other transport modes 33% 34% 1 17% Quality & reliability of service 16% 48% 17% 4% 16% Efficient / effective collaboration 18% 52% 1 4% 16% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 24

25 H. Warehousing: Infrastructures, Services, 3PL/4PL Page 25

26 H. Warehousing: Infrastructures, Services, 3PL/4PL 3PL/4PL continue a just ok concept. 1. How do you evaluate the 3PL/4PL infrastructures & operations in terms of: Availability / Capacity 17% 7% 4% 17% 17% Range & quality of services 6% 2% 27% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 5 Intermodal connectivity with other transport modes 43% Efficient / effective collaboration 2% 18% 6% 23% 23% 9% 2% 2 46% 40% 26

27 H. Warehousing: Infrastructures, Services, 3PL/4PL Development of logistics parks, immediate applicability of all pending regulations are required. 2. Following the previous question, would you like to make any suggestions, regarding further development of the 3PL/4PL infrastructures & services? Incentives for creation of new and high standard warehouses, with low environmental impact. Give incentives for changing the old truck fleet with tax breaks, in order to compete with trucks with BG plates. Creation of 3-5 Logistics Parks. Flexibility in regulations. 27

28 28 I. Customs Infrastructures & Services

29 I. Customs Infrastructures & Services Customs have many challenges to overcome. 1. How do you evaluate the customs infrastructures & operations in terms of: Availability / Capacity 1 33% 43% 7% 6% Quality & reliability of service 14% 34% 42% 4% Efficient / effective collaboration 18% 3 39% 6% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 29

30 I. Customs Infrastructures & Services Digitalization is required to decrease bureaucracy. 2. Following the previous question, would you like to make any suggestions, regarding further development of the customs infrastructures & services?! 30

31 J. In your opinion, have the following knots been improved / deteriorated in terms of infrastructures & services over the past 3 years? The knots of the logistics hub have been improved with the Piraeus port being the high outlier and rail and customs being the low outliers. Ports' Infrastructures & Operations 6% 13% 49% 27% Rail Infrastructures & Operations 6% 1 50% 18% 9% Air Freight Infrastructures & Operations 23% 56% 9% 10% Road Infrastructures 3% 1 50% 29% 3% Road Transport 4% 3 46% 1 3% Sea Transport 37% 37% 13% 8% Warehousing: Infrastructures, Services, 3PL/4PL 3% 4% 32% 44% 13% Customs Infrastructures & Services 3% 8% 56% 2 9% 4% Highly deteriorated Slightly deteriorated Remain at the same level Slightly improved Highly improved N/A 31

32 K. In your opinion, how does Greece s Logistics competiveness rank overall as regional European Freight / Transshipment Hub? The Greek Logistics Hub, besides the improvements in Piraeus port and road infrastructures, have a long way to go. 47% 4 0% Very Low Low Meet standards Exceed standards Achieve Excellence N/A 32

33 33 Thank you

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