Improving infrastructure & framework conditions for Danube - Requirements from an Industry viewpoint

Transcription

1 Improving infrastructure & framework conditions for Danube - Requirements from an Industry viewpoint Alexandru Capatu Annual Forum EUSDR Bucharest,

2 What is Pro Danube International? Platform of private companies with strategic economic interest in better framework conditions and higher public investment in the Danube transport & logistics system Industry & Wholesale Transport User Logistics Service Providers Ports & Terminal Operators (Associations) Barge Operators (Associations) Shipyards & Suppliers & Others Established autumn 2011 by companies & associations Non-profit association based in Vienna Network of currently more than 120 companies More than a lobbying organisation as it initiates and executes projects which improve framework conditions resulting into a higher use of the Danube 2

3 Danube waterway Key European transport axis 43 Mio. tons of cargo in 2010 High potentials Many problems Source: via donau Danube serves an economic area of more than 100 Mio. inhabitants Connects CE &SEE with growing markets in Black Sea (TR, RUS, UA) Port of Constanta as a hub for hinterland traffic River ports could serve as focal points for re-industrialization & regional economic growth Provides cost-effective logistics for land-locked industries ensuring competitiveness & jobs Environmentally friendly green transport corridor 3

4 Profit in Euro (%) depending on draft Draft 2,00 2,30 2,50 2,70 Total revenue ( Euro ) Total Costs Profit Profit % -12,06% 7,15% 19,96% 29,11% Profit per to -2,53 1,50 4,18 6,10 250, , , ,000 50,000 Calculation basis: Pushed convoy of 6 barges during the entire year 2012, Constanta - Hungary & return, Diesel 850/ton Total revenue ( Euro ) Total Costs Profit ,

5 Cost and energy efficiency vs. draught 5 DST - Development Centre for Ship Technology and Transport Systems

6 Severest problem: insufficient waterway maintenance Several waterway administrations fail to ensure minimum standards in waterway maintenance (2,5 m fairway depth at LWRL according to recommendations of Danube Commission) As a consequence: Reduced efficiency of transport operations, loss of customers, shutdown of barging companies Risk of total blockage of transport chains (like 25 days in autumn 2011 caused by shallow water hot spots in Bulgaria and Hungary) Millions of Euros in financial losses for barging & port industry plus high extra costs & supply risks for manufacturing sector together with loss of trust in transport reliability PDI action on better fairway maintenance: resulted into EC initiative (VP KALLAS & CM HAHN) which produced on 7 June 2012 in Luxembourg a Declaration of Transport Ministers for targeting better waterway maintenance (all Danube states except Hungary endorsed this Declaration) Despite this declaration and clear international obligations for fairway maintenance, significant lack of short term measures in dredging & riverbed surveying can be registered 6

7 Two realities in Danube waterway policy Political support Political failure in some states 7

8 Fairway depths during period GERMANY: Sector Km Standard station Calculation Requried gauge for having min. depth of 250 cm Number of days at depths below 250 cm Pfelling Pfelling Depth = Gauge 140 cm Vilshofen- Hofkirchen Hofkirchen Depth = Gauge 40 cm AUSTRIA: Kienstock Kienstock Depth» Gauge Wildungsmauer Wildungsmauer Depth = Gauge+20 cm

9 Fairway depths during period Sector Km Standard station Calculation Requried gauge for min. depth 250 cm Number of days at depths below 250 cm HUNGARY Szob upstream 1711,3-1710,7 Depth=Gauge+70cm Dötös 1701,0-1700,0 Budapest Depth=Gauge+75cm Nagymaros upstream 1698,9-1697,8 Depth=Gauge+60cm Horany 1667,5-1666,8 Depth=Gauge+70cm Ujpesti 1653,0-1651,8 Depth=Gauge+90cm Depth=Gauge+110cm Budapesta 1638,4-1637,4 Depth=Gauge+120cm Depth=Gauge+110cm Ercsi 1615,9-1615,1 Dunaujvaros Depth=Gauge+210cm Kulcs 1590,7-1590,1 Depth=Gauge+230cm Dunaujvaros 1581,5-1580,5 Depth=Gauge+230cm Dunaegyhaza 1567,3-1566,4 Dunaföldvar Depth=Gauge+320cm Dunaföldvar upstream 1561,0-1560,0 Depth=Gauge+350cm Dunaföldvar 1559,8-1559,7 Depth=Gauge+355cm Solt 1558,5-1557,5 Depth=Gauge+385cm Depth=Gauge+315cm Solt downstream 1555,8-1554,6 Depth=Gauge+365cm Depth=Gauge+355cm

10 Fairway depths during period Sector Km Standard station Calculation Requried gauge for min. depth 250 cm Number of days at depths below 250 cm BULGARIA / ROMANIA Băloiu 629 Corabia Depth = Gauge cm Liuta-Milka 568 Depth = Gauge cm Belene 563 Depth = Gauge cm Zimnicea Vardin 543 Depth = Gauge cm Gâsca upstream 538 Depth = Gauge cm Batin 528 Depth = Gauge cm Batin downstream 523 Giurgiu Depth = Gauge cm Riahovo (Mishka) 455 Depth = Gauge cm Olteniţa aval (Popina) Olteniţa Depth = Gauge +240 cm 10 8 Cernavodă upstream Cernavodă Depth = Gauge cm CROATIA/SERBIA: During the investigated period, fairway depths were above 250 cm, but in several other periods, the sectors Apatin (km ), Mohovo (km ) and Novi Sad (km , km and km 1248) caused restrictions 10

11 Water Depth Situation August Km Km Depth(dm)22 Width(m)> > > > > > > > vessels were stopped 4 vessels were grounded 11

12 Draft of Navrom convoys which left Constanta Date Cargo Destination Draft Coal Hungary 1,75 m Phosphate Austria 1,80 m Coal Hungary 1,90 m Phosphate Austria 1,95 m Phosphate Austria 1,95 m Coal Hungary 2,00 m Coal Bulgaria (Russe) 2,35 m Soybean meal Bulgaria (Svistov) 2,00 m Coal Hungary 2,15 m Coal Hungary 2,15 m Coal Bulgaria (Russe) 2,45 m Coal Hungary 2,05 m Coal Hungary 2,15 m Navrom lost more than in revenues when operating these convoys 12

13 Synthesis Maintenance There was a high number of days with a fairway depth below 250cm despite favourable water conditions in the investigated period This clearly shows significant shortcomings in waterway maintenance on several sections of the Danube The failure in waterway maintenance results into direct financial losses for the barge operators or reduce significantly their earnings The transport users become deprived of the cost advantages of barge operations, are effected by delays in the supply and consequently have to pay higher transport costs which reduces their own competitiveness Without proper maintenance barge operators cannot earn depreciation of modern equipment consequently there is only maintenance investment (hardly any room for innovation except cost advantages of LNG can be exploited) PDI informed already in April/May the EC Commissioners, EC IWT Coordinator, Danube Commission, EUSDR PA 1A coordinators about the criticalness and intervened directly to the Bulgarian Transport Minister All the high-level interventions which followed did not lead to a sufficient response by the Bulgarian authorities and to concrete measures yet 13

14 Low water periods cannot be avoided but safe and cost-efficient transport can be ensured if all Danube States respect the existing international regulations PROPER FAIRWAY MAINTENANCE AND GUARANTED MINIMUM FAIRWAY DEPTHS OF AT LEAST 2.5 m MUST BE RESTORED IMMEDIATELY Waterway infrastructure development must be important element of EU programs in financial period Danube as new corridor Strasbourg Danube in TEN T successor CEF Connecting Europe facility Integration of infrastructure projects into new Operational Programs (Structural Funds) New program instruments which facilitate coordinated public private deployment projects 14

15 In addition: Need to identify and to fight administrative barriers Some examples of unnecessary barriers: Romania: excessive formalities and fees for customs and other authorities causing additional costs and extra waiting times, e.g. Obligation to use T2L document for national cargo transport Restrictive opening hours of custom offices in several important ports Tariff scheme of Black-Sea Canal is contra-productive for operators when using additional barges for compensation low water conditions (charging system per ton capacity instead of cargo tons) Fees and procedures imposed for authority services like: traffic supervision & control of safety of navigation, allowance for ship repairs, for authorization/approval/supervision of vessels bunkering, for annual endorsement of operation permit Hungary: restrictions concerning the size of the ship convoy, fees for bigger convoys, excessive waiting times at border control Serbia: unplanned waiting times at border control, waste of time due to bureaucracies by transiting the only non-eu country between Constanta and Rotterdam Bulgaria: problems with custom clearance caused by restrictive opening hours Further harmonization and reduction of administrative procedures is needed in order to create a real European transport corridor and a free flow of goods and passengers PDI therefore promotes: Same River Same Rules 15

16 How to solve the situation? Recommendations Strong co-ordination of EC /co-operation of DG Region and DG Move is required EUSDR PA1 SCOM failed t o deliver improvements as it doesn t involve Danube States at a decision making level Current mandate of EU/IWT coordinator proved to be insufficient, therefore activities turned out to be in-effective: despite many efforts no tangible results but continuous decrease of fairway situation experienced by barging sector PDI therefore proposes EC led task force involving political level Short & mid-term action plans for improvement of fairway maintenance have to be elaborated and agreed on a binding level (transnational waterway maintenance strategy including binding implementation roadmap) until March 2014 This task force can be handled within the framework of the new TEN-T coordinator for the Danube corridor, if: An ample EU mandate facilitates binding decision-making Member States working group involves stakeholders from private industry New coordinator is supported by an expert team with sufficient human resources in order to elaborate and supervise implementation actions 16

17 Danube Ports: Focal points of transport & regional policies Danube ports are key elements for a sustainable and efficient transport system and important centres of economic activities High potential for regional growth & cross-border initiatives Danube Ports must be considered as catalysts for re-industrialization and regional growth with Port of Constanta as main logistics hub 17

18 How to unlock the economic potentials of Danube ports? Increased public investment in port & terminal infrastructure including upgrade in road & rail access as part of the future operational program for transport & regional development Improved/new instruments for public-private co-operation (coordinated project planning and project execution/strong & professional project management structures) Ports shall become preferred centers for (re-)industrialization (national and foreign direct investments) Improvement of current port legislation & active & service-oriented public port management & industry site development (Cross-border) regional development plans and actions Definition & implementation of state aid schemes for port & terminal investment similar to programs in Western Europe Back-financing of state aid schemes via Structural Funds in period in EU member states with Operational Programs; special attention to ports in EU support programs for Serbia, Moldova and Ukraine Increased leverage of public spending and aligned private investment will stimulate economic growth and create jobs in the Danube region 18

19 How to modernize the Danube fleet? Challenge is to optimize existing fleet with regard to energy-efficiency, emissions, propulsion, safety of navigation and operational costs, but: Not everything which is technically feasible is economically viable Therefore we need a transition roadmap for new techniques & technologies Important preparatory step: EC/DG Regio commissioned study Innovative Danube vessel Comprehensive Innovation Strategy including an Innovation Implementation Roadmap as part of a long-term strategic IWT development policy of the European Union Danube barge operators need financial support for the modernization of the fleet from national State Aid Schemes & EU programs LNG as fuel for Danube vessels has an extremely high potential to meet efficiency and environmental objectives (see: LNG Masterplan for Rhine-Main- Danube) 19

20 20 LNG MASTERPLAN KEY FIGURES Programme: TEN-T Multi-annual Call 2012 Timeframe: 1 January December 2015 Est. investment: approx. 120 mil. EUR Budget (eligible costs): 80,5 mil. EUR (out of 69,2 mil. EUR pilot activities) EU funding: 40,25 mil. EUR Beneficiaries: 33 organisations, majority from private sector Special endorsement by several Ministries of Transport and CCNR Non-funded partners: 40 public/private organisations TEN-T Days 2013 Connecting Europe / Tallinn /

21 21 LNG MASTERPLAN - OBJECTIVES Identify and quantify pioneer markets and customers in the hinterland of inland ports Analyse costs and savings/benefits of LNG use Transfer know how from maritime into inland navigation sector and raise awareness Facilitate the creation of a harmonised European regulatory framework considering LNG as fuel and as cargo for inland navigation Deliver technical concepts for new and retrofitted vessels Elaborate supply chains to reach end-consumer Execute pilot deployments of vessels and terminals Develop a comprehensive strategy with a detailed roadmap for the implementation of LNG in line with the EU policies in transport, energy and environment Prepare wide-scale deployment with the help of CEF & other EU programs Technical concepts Regulatory framework Pilot deployment TEN-T Days 2013 Connecting Europe / Tallinn /

22 MAJOR ACTIVITIES IN DANUBE REGION 22 LNG Supply & Demand Study (FHOÖ & Linz AG) Time: Q3/2014 LNG Supply & Demand Study (EVN) Time: Q3/2014 LNG Supply & Demand Study (NGVA CZ) Time: Q3/2014 Study for LNG Terminal in Komarno & vessels (Danube LNG) Studies and preliminary designs for terminal & vessels (fuel & cargo) Retrofitting of 3 vessels for LNG propulsion (NAVROM Galati) Depl.: Q2-Q3/2015 LNG gas tanker (Chemgas) Innovative LNG gas carrier; connecting terminals on Danube Depl.: Q3/2015 Study for development of LNG terminals on the Romanian maritime Danube (Port Authority APDM) Combined LNG/CNG fuelling stations & LNG fueled trucks with LNG trailers (Bulmarket) as part of the logistic chain to the end-customers Depl.: Q3/2015 Small scale LNG terminal in Ruse (Bulmarket) incl. fuelling devices for vessels & trucks; Depl.: Q3/2015 Study & Design of intermediate LNG terminal in the Port of Constanta (TTS Group) LNG Masterplan Kick off meeting / Rotterdam / LNG Coastal Carrier (Bernhard Schulte) Multipurpose LNG carrier fuelled by LNG and used for trans-shipment / bunkering Depl.: Q3/2015

23 LNG IS FUEL AND ENERGY RESOURCE LNG SUPPLY CHAINS TO INDUSTRIAL HEARTLANDS OF EUROPE Rhine/Meuse-Main-Danube- LNG Artery of Europe Inland navigation functions as pioneer consumer and facilitator

24 Conclusions Improvement of current situation requires higher political awareness & strong EC coordination New TEN T coordination could provide a valuable framework for coordination but needs highlevel policy backup, strong mandate and sufficient human resources on EC level EU programs need to address the private sector better than currently in order to unlock the human and financial potentials of the region Administrative barriers for Danube transportation must be reduced with the help of a joint initiative of transport, customs and immigration authorities under EC leadership Low water periods cannot be avoided but safe and efficient transportation can be ensured if ALL Danube States respect the international obligations The Danube is NOT a shallow water river, it provides sufficient water depth for cost-effective barging if the fairway is properly maintained and the bottlenecks are eliminated Dedicated shallow water vessels are less energy efficient and result into higher transport costs Cost-effective Danube logistics strengthens the competitive position of the manufacturing industry and guarantees economic growth and jobs LNG will play an important role as fuel and as a cargo It s time to act now! 24

25 Further information Alexandru Capatu Chairman Pro Danube International Mobil: Manfred Seitz General Secretary Pro Danube International Mobil: