The Green STRING Corridor and transport development. Povl A. Hansen

Transcription

1 The Green STRING Corridor and transport development Povl A. Hansen

2 The green STRING Corridor and transport development Author: Maps: Print: Povl A. Hansen Clara Hörmann Region Zealand ISBN: st edition 2012 Roskilde University, Department of Communication, Business and Information Technologies (CBIT) 2

3 Contents PREFACE... 6 SUMMERY... 8 CHAPTER DEVELOPMENT OF TRANSPORT STRUCTURE BASIC FACTORS INFLUENCING THE DEVELOPMENT OF TRANSPORT STRUCTURE TRADE AND INTERNATIONAL DIVISION OF LABOUR SHIFTS BETWEEN INDUSTRIES AND THEIR IMPACT ON TRANSPORT URBANIZATION AND HUMAN SETTLEMENT POLITICAL AND ADMINISTRATIVE BARRIERS THE DEVELOPMENT OF PHYSICAL INFRASTRUCTURE AND TRANSPORT SUMMARY CHAPTER INTERNATIONAL TRADE AND TRANSPORT RELATIONS BETWEEN INTERNATIONAL TRADE AND TRANSPORT DEVELOPMENT VARIOUS DEVELOPMENT SCENARIOS THE GLOBAL FREIGHT MARKET THE GLOBAL SERVICE TRADE THE GLOBAL MARITIME TRANSPORT SECTOR TRENDS IN AIRCRAFT CARGO MARKET CONCLUSION CHAPTER THE EUROPEAN LOGISTICS SECTOR AND GLOBAL HUBS FOR THE STRING CORRIDOR THE DEVELOPMENT OF THE LOGISTICS SECTOR IN EUROPE TRENDS IN THE DEVELOPMENT OF FREIGHT IN THE EU EUROPEAN MARITIME TRANSPORT SYSTEM AIR CARGO MARKET IN EUROPE ROAD FREIGHT IN THE EU RAILWAY FREIGHT IN EUROPE SUMMARY CHAPTER THE TRANSPORT SECTOR IN THE STRING REGION CHAPTER THE LOGISTICS SECTOR IN SCHLESWIG-HOLSTEIN AND HAMBURG HAMBURG: A GLOBAL HUB

4 Road freight to and from Hamburg Railway freight to and from Hamburg Air Cargo from Hamburg SCHLESWIG-HOLSTEIN TRANSPORT SYSTEM The Kiel Canal Road freight in Schleswig-Holstein Railway freight to and from Schleswig-Holstein Air Cargo to and from Schleswig-Holstein THE BALTIC PORTS IN GERMANY Port of Sassnitz Lübeck HUB: the main port to Scandinavia Port of Kiel Port of Puttgarden Port of Rostock STRING REGION AND THE LOGISTICS SYSTEM IN NORTH GERMANY CHAPTER DEVELOPMENT OF LOGISTIC AND FREIGHT TRANSPORT IN ZEALAND THE DEVELOPMENT OF FREIGHT TRANSPORT IN ZEALAND The freight development of the the island of Zealand The maritime freight on Zealand Railway Transport Zealand The Road freight on Zealand The Danish truck market s share and competitiveness Road freight market on Zealand Airports in Zealand THE CAPITAL REGION OF DENMARK Port of Copenhagen The Port of Elsinore Road transport in The Capital Region of Denmark Railway freight in The Capital Region of Denmark The Øresund Bridge REGION ZEALAND FREIGHT TRANSPORT Port of Køge Port of Kalundborg Port of Gedser Rodby Ferry Port Road freight Region Zealand Transport centers Railway and air cargo in Region Zealand

5 6.4.8 Transit traffic from Denmark to and from Europe SUMMARY CHAPTER FREIGHT TRANSPORT IN REGION SCANIA IN SWEDEN GENERAL FREIGHT DEVELOPMENT IN SWEDEN MARITIME TRANSPORT FROM SCANIA Port of Trelleborg Port of Ystad Port of Helsingborg Port of Malmö MALMÖ AIRPORT ROAD FREIGHT SCANIA SWEDISH TRUCK TRANSPORT AND INTERNATIONAL COMPETITION THE STRUCTURE OF THE INTERNATIONAL TRANSPORT IN SCANIA RAILWAY FREIGHT SCANIA CONCLUSION CONCLUSION REFERENCES

6 PREFACE This report is part of the project, Green STRING Transport Corridor. This is the first of two reports from Roskilde University, CBIT department. The purpose of this report is to analyze the conditions for European logistics and transport in the STRING region. The next report will deal with employment, turnover and clustering in the STRING corridors five regional parts. The aim of the report is to identify the transport related issues in connection with the establishment of a green transport corridor, as a consequence of the construction of the fixed link below the Fehmarn Belt. The Green STRING Transport Corridor presents a key link for transport between Scandinavia, Germany and Europe. In the southern part of the corridor it also connects the Baltic countries with Germany/Europe. The purpose of this report is not only to examine the transport strengths of each region, but also to identify the different conditions expected with the establishment of a fixed link below the Fehmarn Belt In this report there are a variety of data from different sources. The report attempts to test the quality of these data, but in some cases only data from one source is possible to obtain. In cases with a small data base, discussion of the topic is brief, and therefore, we use the most trusted examples, which can be confirmed by accredited sources. The data in this report, therefore, should be seen more as an expression aspect of ratios and trends than of exact figures. The report is produced by Roskilde University. Results and conclusions are entirely on the author's own account, but hopefully they contribute to an understanding of the transport-development conditions for transport in the STRING region. Povl A. Hansen, Fil Dr. Roskilde University Department of Communication, Business and Information Technologies (CBIT) 6

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8 SUMMERY This report deals with transport and logistics structure in the STRING region. It is a statistics-based report. The starting point for understanding the transport structure is the developing conditions for the international division of labour, which has different terms globally, regionally and locally. This might mean dematerialization and decreasing of goods transports for some parts and increasing quantity of goods for others. In the STRING region there are international transport HUBs, which mainly target the global market. On the other hand the transport structure in Europe and between the STRING region's members has other terms. Here, truck traffic is the dominant mode of transport, but the ports in the region also have an important function as part of a connected transport structure. Key HUBs are located in Northern Germany, which provide access both to the European market, and to global transport. In Denmark and especially on Zealand, there has been a decline in the volume of goods which has caused a decrease in the freight intensity. Zealand is also an important transport corridor between Scandinavia and the rest of Europe. For Scania, there has been a slight decrease in the volume of goods, but an increase in mileage for trucks up until the crisis in The ports in Scania play a very important role for access to the European market. Overall, the five regional parts that make up the STRING region have very different transport conditions and functionality. But at the same time they are functionally contained as crucial parts of a transport system which is closely linked to the business development. This includes individual professions, and their capacity for competitiveness, in which the transport and logistics system s functionality is closely linked to their successful development. 8

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10 CHAPTER 1 DEVELOPMENT OF TRANSPORT STRUCTURE 1.1 BASIC FACTORS INFLUENCING THE DEVELOPMENT OF TRANSPORT STRUCTURE In order to assess the future developments in transport, it is crucial to have a discussion about what kind of factors affect the transport sector's development and structure. Therefore, the main issue addressed in this chapter is an assessment of global trends that affect the transport and logistics sector development. An assessment of these factors is essential to conduct actions directed towards a greener transport development in the green STRING corridor. In particular, we should look at green transport promotion based on ratings, opportunities and factual knowledge about the transport and logistics sector development and environment. This is especially true in the case of a cross-border corridor, which can function as a corridor for international transport. There are clearly differences between what generates transport in the corridor and what generates traffic through the corridor, and in relation to this, the relationship between regional/national and global transportation and international trends. In addition, there are key factors like technological developments in transportation technology, change in the urban and industrial conditions, including policies which promote or inhibit various forms of transport and trading. Following The World Bank discussions on transport and trade conditions, four consecutive factors were developed, that are deemed to influence transport demand and transport development. These include: 1 1. Population growth (growth and urbanization) 2. Development of trade (import and export) 3. Laws, agreements and regulations from governments or international agreements 4. Reduction in costs of production and distribution There are many comprehensive and underlying factors that provide essential conditions for the transport sector's development. This applies especially in relation to 1 The World Bank: Freight Transport for Development, A policy l Toolkit, Some of these factors are also treated in I: Niras: Megatrends: Drivkræfterne bag udviklingen af transport og mobilitet i Øresundsregionen, IBU maj (The driving forces behind the development of transport and mobility in the Oresund region, IBU May 2010.) 10

11 infrastructure investments, where the time horizon is long for their functional and economic depreciation. In the following we will consider some of these factors, but also point to many other factors that affect the conditions for the transport structure development and scope. Compared to this more general discussion, the World Economic Forum summarized the factors which affect trade and thus transport in nine more structured points 2. These are: 1. Domestic and foreign market access 2. Efficiency of customs administration 3. Efficiency of import-export procedures 4. Transparency of border administration 5. Availability of quality of transport 6. Availability of quality of transport service 7. Availability and use of ICT 8. Regulatory environment 9. Physical security Although these are more structured in relation to an assessment of factors that generally affect transport development, they are also universal. These points are to a different extent all relevant and important for the assessment of STRING corridor development. We will provide an overview of some of these underlying development trends influencing the aforementioned factors. 1.2 TRADE AND INTERNATIONAL DIVISION OF LABOUR The issue of access to the international market is a matter of the evolution of the international division of labour. At a very general level the aim of transportation is to promote economic, social and territorial cohesion. On a more practical level there is a close connection between economic development and transportation. The opportunities for development in the international division of labor and thereby ensuring cheaper and more competitive products, prosperity and higher standards of living are closely related to comparative advantages. This is ensured through a liberalization of trade and services - from production to business location. It is a development that has been underway for many years and is still in process. These conditions impose new demands on the transport structure under development. 2 World Economic Forum: Transport outlook 2011, OECD

12 As highlighted in a series of studies, the framework conditions for the development of the international division of labor is closely linked to the transport sector's development. Nearly 50% of GDP 3 derives from foreign trade in the Nordic countries. For the three countries involved in the STRING corridor, the proportion of external trade towards the GDP is high. For Denmark the share is 50.5%, Sweden 50.0%, and Germany 46%. Generally, the EU share is 39.4% and 28.9% for the OECD 4. It is therefore crucial to question how trade will develop in the coming years and consequently, the need for transportation. This is closely connected to changes in GDP, and thus in the growth and composition. A forecast of the WTO 5 shows that growth increases sharply in developing countries, and to a lesser extent, in developed economies. Fig.: 1.1 World trade developments by region, percent of total Source: WTO statistics 2011, special extracts The WTO has established a data series from 1948 to This is a long period; therefore the portrait trends have a great validity. The total world trade in products is set to 100 for each year. Afterwards each region's share of the world trade has been calculated. Europe is the largest operator in the world market, but with a clearly visible declining trend. In 2012, Europe had 37.8% of world trade in goods, followed by Asia, which has 31.6% of world trade, and whose share has been growing. USA, the world's leading economy, has had declining shares since 1993, where it peaked at 18% of 3 Gross domestic product (GDP) 4 Figures from World Trade Organization (WTO) 12

13 world trade, and is now down to 13.2%. Russia is not included in the inventory, but has previously been around 5% of world trade 6. Trade and hence transport demand increases in particular in relation to Asia. This fact also applies to other developing countries, but to a lesser extent. WTO estimates that world merchandise exports to increase by 5.8% in volume terms in 2011, supported by real GDP growth of 2.5%. Developed economies exports are expected to rise by 3.7% and their output to go up by 1.5%. Meanwhile, shipments from developing economies are estimated to increase by 8.5% and GDP by 5.9% 7. Thus, according to the WTO, a clear tendency for a commercial integration between the developed OECD countries and developing countries is visible, while there is a stronger growth in some developing countries than in OECD countries. This draws attention to international HUBs for international transport which have access to world markets. Access to these HUBs and their function would be of great importance for a future green STRING transportation corridor. The "strong" developing country participation in world trade has been growing and is expected to rise in countries that do not have a high percentage of trade to GDP ratio. Here, country size plays an important role in export-import shares of GDP. It is a general rule that small countries have large trade shares while large countries come with smaller shares. Therefore, the transport system function is crucial for further prosperity especially for the small Nordic countries. There exists, as a consequence, a very close relationship between transport issues and opportunities to develop the international division of labor. In addition, there are economic trends that can easily lead to confusion between general trends and short-term changes. In recent years we have also seen a sharp decline in transport between the EU and the rest of the world, caused by the decline in trade as a result of a decline in economic activity. At some point these economic activities will increase again, but probably the structure between actors will be subject to change. Major crises are always an important change factor, especially when it comes to the development of commerce and transport structures. 1.3 SHIFTS BETWEEN INDUSTRIES AND THEIR IMPACT ON TRANSPORT A crucial factor influencing a medium-term perspective is the shifting between industries and the introduction of new technology. As a consequence of changes in technology, in addition to the international division of labor at a national and regional level, a strong shift between industries takes place. This is particularly true among the goods-producing industries and the services sector. These developments affect the 6 WTO trade by region, database 7 Forecast based on: WTO Secretariat. 13

14 entire transport pattern. Traditional production is moved from old geographic areas and services increase. In addition to the goods-producing sector, the products change character from heavy and mechanical products for electronics to more light products e.g. plastics, light metals, etc. Also the way companies organize their production and their relation to sub-contractors are vital for the transport sector. Security of supplies and "Just in time" systems require a safe and quick transport structure for some product categories. Companies are also trying to maximize through "economies of scale", in relation to both production and market, which focuses on the transport system's efficiency in relation to time and cost. As a result, companies have steadily expanded the geographic scope of their production and distribution. Outsourcing of production, distribution and warehousing are important factors that change over time and affect logistics systems and transportation structures. These changes are also aimed at overcoming the barrier between centralized production, cost reduction and a geographically dispersed market. The relationship between the Nordic markets and North and Central Europe STRING corridor is a key part of this strategy which can continue and develop further. 1.4 URBANIZATION AND HUMAN SETTLEMENT The largest part of the world's population lives in urban areas. This means that the geographical distance between the settlement and production/consumption is increasing, and the need for other transportation-related services also increases. This is a worldwide phenomenon, also happening in Europe. Sheer population growth will mean that a constant GDP per capita will result in an increase in trade and transport. The increase in the number of large MEGA cities creates enormous transportation needs in order to function. 1.5 POLITICAL AND ADMINISTRATIVE BARRIERS There are also numerous administrative barriers that impede or facilitate the development of an efficient and green transportation: The EU Commission highlights in the recent White Paper of 2011 a number of administrative barriers between countries that impede the efficient and resource-exploitative transport system. Duties and taxes on transportation and policy, and interest in terms of certain pricing in transport are important factors affecting the cost and mode of travel. Establishment of cross border collaborations and inclusion of new countries in international trade agreements and their content is a crucial political prerequisite for a growing world. These factors are largely politically determined. Regulation of transport services, taxation, infrastructure investments are largely nationally determined. This practice poses a challenge for a cross border transport corridor. 14

15 1.6 THE DEVELOPMENT OF PHYSICAL INFRASTRUCTURE AND TRANSPORT A very important factor for transport and its structural development is the actual physical infrastructure context and development. Here are the bottlenecks, barriers and opportunities affecting the development and direction of the transport structure 8. Especially in relation to a lack of connections between not only transport but also between the transport network, transport management and information systems. However, the construction of multimodal logistics chains that promote the link between transport modes is essential to reduce the environmental impact of an expanding transportation system. In this context, there are both public and private actors, who play an important role in transport development. This requires cooperation and coordination, especially in relation to new and costly infrastructure investments. 1.7 SUMMARY A number of the above factors are influenced by political, economic, technological or market conditions. These issues are extremely complicated, and therefore the development of the transport volume and structure are extremely difficult to predict and analyze. Transport and logistics sector also has a decisive influence on the growth and welfare, and it is central to the further social development and competitiveness. As a result, there must also be some qualitative and quantitative assessments of trends, which must be done on an analytical basis, if we are to encourage the development of green modes of transport. Transportation projections have, as a consequence of the complexity of the problem outlined, the greatest validity, in the case of only marginal changes in the underlying factors influencing the transport development. In contrast, long-term forecasts have little or no validity. The last 30 years of development have changed radically due to a number of underlying factors that we have discussed. An analysis of future transport development has to be subject to changes in the various factors in relation to their impact on transport volumes and their structural development. An analysis, which includes a projection of various scenarios and developments, possess the greatest explanatory power, but provides less concrete recommendations that can be acted upon. 8 Ibid.p.3 15

16 Key factors behind the development of transport volumes in the STRING region Urbanization and population growth and standard of living in countries The international division of labor. (Trade from STRING regions international HUBs) Changes in the international trade structure between different global regions The relationship between exports of goods and services. This may include various factors in different parts of the global markets. In the next chaper we will consider trends which generally happened in the international trade and transport. This is done to enable the development of the STRING region into an overall framework for transport and logistics and thereby provide a more concrete assessment of transportation development. 16

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18 CHAPTER 2 INTERNATIONAL TRADE AND TRANSPORT 2.1. RELATIONS BETWEEN INTERNATIONAL TRADE AND TRANSPORT DEVELOPMENT The existing trade and transport conditions are extremely important for a transport corridor that stretches over three countries. These conditions are crucial for an understanding of its structure and functionality. This applies especially to the identification of the corridor's key logistics HUBs for remote trade and transport. These HUBs are STRING region's ports to the global transportation system. Hence, they are an essential element of the STRING corridor function. The problem outline for this chapter is: What are the main trends in international trade, and how can this possibly affect the STRING transport corridor s development and structure? Fig The main structure of international trade 9 Souce: Adhikari 2012 Fig. 2.1 shows that there are some clear divisions in the international trade which are dominant. Overall, there are two groups, trade in goods and services. Within this broad grouping, there are other kinds of services, which play an important role. It is 9 Based on Adhikari (2012): Trends in international trade, Lalitpur

19 the business-related services, for example, consulting, security and cleaning, which are significant, especially in Nordic contexts. Looking at developments in international trade, the first part is aimed at the transport of goods, while the second part is aimed at service trade and hence the commercial passenger traffic. It is clear that in a global perspective the trade of goods is dominant. 2.2 VARIOUS DEVELOPMENT SCENARIOS In the international discussion about how trade is going to develop in the coming years, different kinds of scenarios for its development have been considered. Some of these assumptions are already discussed in Chapter 1. The two most important scenarios can be schematically represented as follows 10 : Fig 2.2 Scenarios for development in trade Looking at Fig. 2.2, the upper scenario shows a trend, where the global trade and transportation evolve, and there is no fundamental change in the underlying factors. The nature of the expansion has already existed over a long time, and remains unchanged. The lower scenario points to the trend of dematerialization of the world trade. Both are theoretical constructs, but realistically the thought of possible developments. These changes will vary according to geographical areas. One point of discussion is that dematerialization is supposed to be "natural". This means that there is a relatively rapid increase in the components of GDP which are not particularly freight intensive. Especially with regard to services and IT applications, lighter products and new green local bound forms of energy. In this context, oil transportation dominates a large share of the transport sector. However, the adopted 10 Based on discussions in OECD: Transport Outlook 2009, Globalization Crises and transport and Outlook

20 measures to change the oil dependence will have to affect transport development in the longer term. Changes in volume occur as a result of changes in the way goods are produced and through shifts between trade in goods and services. It is a generally known problem in economic theory, that rising income (GDP) does not trigger the same kind of quality goods consumed by the individual. Rising incomes lead to a changing relationship between consumption and savings (consumption ratio). Consumption ratio also changes the rising demand of other and more luxury-related products and more service. This is a well-known economic investigated problem. However, there may as well be an increase in trade in goods per tonne/km, while there is a relative dematerialization. The increase will be not as strong as usual. Simultaneously, the trend might show itself in very different ways between the different regional parts. This is an important factor when STRING region's functionality is discussed. On the other hand, a constant or increasing freight intensity in foreign trade (tonne /km /GDP) as a consequence of continued globalization, would be shown by geographical fragmentation of supply chains that have characterized the more developed OECD countries 11. Furthermore, countries at lower levels of economic development begin with a relatively freight-intensive growth. For these countries, the assumption of a relative decline in freight intensity will be smaller, or completely absent, than in regions where GDP/trade share is already very high. This trend is already clear in the global trading patterns (see Fig. 1.1 in chapter 1). These changing conditions will significantly influence transport development through an upcoming green STRING corridor. It is reasonable to expect additional, different scenarios projected for freight intensity and energy requirements to be able to make reliable forecasts 12. The other factor is that the transport efficiency increases. This means that the same amount of goods is transported in a more efficient manner. Partly through a more efficient use of existing transport modes (transshipment, cargo capacity is utilized better, etc.) and partly through movement to other modes and energy-efficient transportion. Both these factors result in the fact that even if trade is increasing in value, this is not necessarily shown in an increase in similar goods in tonnes. However, an increase in 11 EU: Joint research center ITPS: Freight transport intensity is a measure that relates two key indicators: the volume of freight transport (measured in tons kilometers) and the economic output (GDP). 12 Based on OECD Factbook 2010: Economic, Environmental and Social Statistics 20

21 Percent the quantity of goods, should mean an automatic increase in energy intensity 13, which is measured by the ratio of energy per unit. There is, thus, a counteracting factor to a growing amount of goods in world trade. Whether they work and how they do so depends on the specific and differentiated development that can only be determined through specific analyzes THE GLOBAL FREIGHT MARKET If we take the freight market into consideration, we can formulate this as a question of how international trade is affecting the transport sector. We focus on how the international division of labor asserts itself as a concrete commercial freight and passenger business. At the international level there are a number of studies and reviews that have a decisive influence on the perspective of a green STRING corridor. Taking into consideration the overall growth in world trade, it shows a steady increase in terms of value-related terms. Fig. 2.3 World exports goods and services, percentage of GDP World exports of goods and services % GDP Year Percent Source: World Bank: Database 2012 and oven calculation The overall growth in world trade is expected in the coming year to be between 6 and 7 % annually, the majority being increases in trade in goods. EU trade in goods constitutes 37.6% of world trade 15 and is therefore entirely dependent on the global 13 For an discussion see: World Energy Outlook 2006, OECD Calculated as value-based relationship 15 WTO: Statistic international trade, WTO Trade is the sum of exports and imports of goods and services measured as a share of gross domestic product GDP. Gross domestic product (GDP) refers to the market value of all officially recognized final goods and services produced within a country in a given period. 21

22 transportation system development, which is part of a fully coherent transport network. The world economy is highly integrated. The calculation is based on value, and not tonnes. As clearly indicated by the graph in Fig. 2.3, there is a slow increase in the overall share of goods and services of GDP worldwide. During the crisis, there has been a tendency for world exports to decline, but they seem to recover following this period. Fig Development in international trade in mill US dollars. Source: WTO statistics, own calculation As shown in Fig. 2.4, the trade in goods in value terms increased throughout the period, with a decline in the recent years of the crisis. One can also observe that services are now starting to become part of the pattern of trade. Deregulation of trading market has primarily been directed at trade in goods. It is estimated, however, that services will play an increasing role in future international trade. 22

23 Fig. 2.5 Percent change in goods and services trade Source: IMF: WEO database, World trade, estimates for 2011 Fig. 2.5 shows that even before the great global crisis in 2008, the rate of increase in world trade growth had a tendency to decrease. It is clear that developments in world trade will not be evenly distributed between countries and between continents. The EU along with the OECD countries accounted for the vast majority of world trade as a percentage. It is likely that this relationship will change over time, and there are already visible trends to support this view. 2.4 THE GLOBAL SERVICE TRADE The second major development factor is the ratio of export of goods and services. The latter requires a greater degree of commercial passenger transport, although transport of goods is also associated with passengers to a certain extent. It is, therefore, important to discuss the possible location of service exports in future trade development. This is a key issue especially in the Nordic countries where services are an essential part of the business structure. Thus, the service sector represents 2/3 of private sector value creation in Denmark 16. At the same time, 38.7% of the value of total exports represents the service sector's share of exports in Denmark in For Sweden, the corresponding figure is 24.5% of all exports 18. The figure for Denmark is subtantially larger because of Denmark s large merchant sea transport fleet. Thus, there is a difference in the overall development of world trade and the development of freight market. This issue is addressed in the following cargo forecast prepared by the WTO. The commercial world trade of goods increased in 2010 by 14%, 16 Danske Erhverv: Holdningskatalog p Statistics Denmark:Bop6: Current year for entries income / expenses and country 18 Statistics Sweden: SCB: BNP kvartalsoversigt 2011:2 p. 8 23

24 while the corresponding number for services was 9%. Alignment after the crisis strongly affects the growth in numbers. In particular, service growth has been affected because the services are primarily between highly developed countries, and some of these developed countries have been going through a crisis in recent years. Trade in goods is increasing as a percentage more than trade in services globally, but not necessarily for northern European economies. Hence, in recent years at international conferences on new trade agreements, attention has been directed towards removing barriers to service exports, and this issue is still central to the strengthening of international trade. Fig World export service sector Source: WTO statistics: International Trade Statistics 2010, own calculation As shown in Fig. 2.6, the increase in services is at a considerably lower level than goods trade. While the total exports of goods and services accounted for 27.8% of the world s GDP in 2010, the service exports share of GDP was only 5.8%. Based on trends in developed economies, the trend in the services market is expected to expand in the coming years, depending on the development of international trade agreements. It is important to note that there is a close correlation between the development in trade and freight transport. In the following sections we look at the evolution of transport trends in different modes, and we note that maritime transport is the main element of international global trade. 2.5 THE GLOBAL MARITIME TRANSPORT SECTOR From a global perspective, shipping, in terms of tonnes, is the dominant mode of transport. This constitutes the HUB of the international transport structure. Quick and easy access to the international maritime system is thus indispensable for a country's export industries. 24

25 Fig World freight maritime market Source: UNCTAD: Review of Maritime Transport, 2011 Fig. 2.7 shows the sea freight market is divided into 3 categories concerning the international statistics. The largest market is cargo, followed by bulk market, and finally oil product market. In a more precise and analytical approach, the cargo market is divided into 5 market segments. It is an important prerequisite for understanding to establish that the shipping market is not a market, but consists of several segments that are not in terms of transport is in competition with each other - or only to a limited extent. Traditionally, the freight market is divided into 5 different markets: 1 st Container market, 2 nd RoRo market, 3 rd market for general cargo, 4 th market for liquid fluids (liquid bulk market, oil) 5 th dry bulk market 19.The ports have market shares in different market segments and especially in different amounts. In addition, the various freight markets are also divided into different types of couplings to the international transport system. This specialization between various forms of transport and ports is also true for STRING region's transportation system, thus making it a very important prerequisite. There are ports which focus on, for example, the RoRo market, while there are others who specialize in the container market and quite different markets, including specializing in liquid (e.g. oil). These market segments are related to the global and regional transport structure in very different ways. 19 Theo Notteboom: Economic analysis of the European seaport system, Report serving as input for the Discussion on the TEN-T policy, ITMMA University of Antwerp,

26 2.6 TRENDS IN AIRCRAFT CARGO MARKET The other important part of the international transport structure is air cargo, which represents only 10% of airlines' operations, but 30% of the companies tonne / km flows. It is, thus, a more energy-consuming transport than passenger transport, but to a much lesser extent 20. Fig.2.8: World air cargo market Source: IATA statistics 2012, own calculation The aircraft cargo market represents only a very small proportion of the total global cargo measured by load/tonne, but accounts for considerably more value. The global cargo market, i.e. mainly the relationship between sea freight market and air cargo, can be calculated in two ways. First, the total loaded tonnes are transported to the various modes, in other words: volume. This can again be calculated in two ways, ie. loaded tonnes and tonne kilometers. The first statement shows the number of tonnes that are loaded and the second how many tonnes are transported per km. Finally, there is also a method which takes value into account. RTK (Revenue Ton Kilometre) 21 points to the value of the cargo of distance multiplied by the tonnes/km. The calculations, thus, show different results. 20 IATA, Cargo e- chartbook p. 3, RTK: The revenue load in tonnes multiplied by the distance flows 26

27 Fig.2.9. Growth in world air cargo market Source: Boeing Company statistics 2011 The relationship between value and tonnes in terms of international trade is often discussed. If it is calculated as tonnes/km, flight cargo constitutes only ly 0.5% of the world trade. There are a number of records which include the value of the freighted amount relative to t/km. They point to very different results. Fig. 2.9 shows, however, that the t/value relationship has not changed significantly over the past 10 years. It is beyond our task to delve into this discussion. Air cargo is undoubtedly an economically important sector. This is especially true for certain industries and product groups. For example, parts and "critical" supplies play an extremely important role. This applies to temporal and strategic business sensitive products. 2.7 CONCLUSION The transport system is today a globally connected international system. As the international division of labor has evolved, the importance of globalization has increased significantly. A regional or national transportation system cannot be portrayed in isolation and certainly not if there is a cross-border transportation or if a transportation corridor exists. Both inputs and outputs of a transport corridor will be heavily dependent on linkages to other parts of a global transport system. Although, a significant feature of inter-regional, national and local transport will affect the functionality of a green STRING corridor. 27

28 The international analysis shows that the freight market alone cannot be analyzed at an aggregate level, and there are different conditions for each mode and sub-market. First: It is critical to have global transportation in close proximity to international sea transport routes, allowing for the quick and safe transportation of goods to the global market, and thereby ensuring the economic benefits of the international division of labor. The aircraft cargo market is very small in terms of tonnes/km, but has a greater value than the tonnes figures indicate. This is of great importance for some groups of products. For the STRING region, it is important that firms have easy and fast access to international sea freight and air cargo HUBs. Second: Generally, a growth in world trade market will lead to increased freight volumes and energy used by transportation. However, there are two fundamental issues here which can counteract these relations. 1. The increase in international trade/gdp ratio does not effect as a total increase in freight intensity (ton-km/gdp global). This may be due to the composition of trade changes. This will either be in the form of dematerialization by lighter products in relation to value, or by the provision of more services. These components vary globally between different geographical areas. 2. An increase in the amount of goods does not have to result in an increase in energy intensity (energy intensity measured by the ratio of energy per unit). Cargo can be transported in a more energy efficient manner. These components vary globally between different geographical areas and are therefore different from the global situation. In the case of the European intra market and the near Nordics market, the situation is different from the global situation. Here, rail and truck transportation are in a completely different situation, and play a completely different role than in the global transport system, which will be addressed in the next chapter. 28

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30 CHAPTER 3 THE EUROPEAN LOGISTICS SECTOR AND GLOBAL HUBS FOR THE STRING CORRIDOR 3.1 THE DEVELOPMENT OF THE LOGISTICS SECTOR IN EUROPE The development conditions of the logistics sector in Europe are in some cases different from the global transport systems. First and foremost, there are other conditions for the trade of goods in Europe than the ones that apply for the worldwide transport system. The establishment of the single market principally implies free movement of goods and services between European countries. European transportation turns against the market of consumers products and business to business markets inside Europe. This development poses a challenge for a functional, efficient and faster transportation system. Furthermore, the geographical structure and transport distance present the transport system with completely different conditions, especially in regard to truck and rail transport which is dominant in the European transport system. In Northern Europe, there are HUBs for transportation in the direction of the global international transport system. These HUBs have an important function for transport to the markets outside of Europe particularly for the Northern part of Europe and Scandinavia. The STRING corridor has the function of being a corridor for transport inside Europe and to be transport gateways to HUBs for global trade. The corridor is access to both key HUBs for international transport by sea and to air cargo transport. We will now focus on both of these modes, and identify key HUBs for global transport. It is a significant argument in the EU's transport policy that a sharp reduction in the transport sectors use of energy has to be implemented, if the wealth development generated by market integration shall continue. The European integration process has also been based on intensive transport and market integration. In continuation of this point of view, the EU Commission has set up an ambitious goal for changes in emissions from the transport sector, which is the most critical energyintensive sector. In the White Paper from 2011, the Commission has set the following goals for emission reductions: EU needs to reduce emissions by % below 1990 level by 2050, ( ).Commission analysis, shows that while deeper cuts can be achieved in other sectors of the economy, a reduction of last 60% of GHGs (Greenhouse Gas) by 2050 with respect to 1990 is required from the transport sector, which is a significant and still growing source of 30

31 GHGs. By 2030, the goal for transport will be to reduce GHG emission to around 20 % below their 2008 level 22 As a result of this critical challenge, the EU transport system therefore faces major challenges in the future, where traditional solutions do not suffice. They ask for a coordinated collaboration across borders, but also between private operators and public infrastructure owners in order to meet these challenges. In the following, we will look at developments in the EU transport structure in order to identify development trends TRENDS IN THE DEVELOPMENT OF FREIGHT IN THE EU One of the most effective ways to see how the transport application is involved in a rising GDP is through a calculation showing the transport intensity. This calculation shows how much transport is being used in relation to changes in GDP per capita. The relation between the transport application and the development of the GDP appears by studying the relationship between volumes in the total transport and the GDP in the 27 member states of the EU. Following the calculation, an interesting picture appears. Figure 3.1 Volume of transport relative to GDP, chances from year 2000 Source: Eurostat database Fig. 3.1 shows the relationship between changes in GDP and changes in freight volume (tonnes/km) for STRING corridor countries and the EU. The year 2000 is set at 100. As we can see clearly, the freight intensity in the old EU countries is stabilized until 2004, with the exception of 2 years when it rises. Then there is a sharp decline. The decrease 22 Europeans Commission: White Paper: Roadmap to a single European transport area towards a competitive and resource efficient transport system EU

32 is smaller in the enlarged EU countries, where the old Eastern Bloc countries are included, than in the old EU countries (EU15). For some countries, there is an interesting decrease in the ratio of freight volume in relation to GDP. This applies in particular to Denmark, but also Sweden and the EU15 (the old EU countries). On the contrary, the enlarged EU 27 (the new EU Members), and Germany have increased up until the crisis. These figures show that there is a clear pattern in which freight intensity increases when the new EU countries get involved. In relation to the rise in freight intensity in Germany it should be pointed out that former East Germany (DDR) joined the European Union by the inclusion in the German Federal Republic. Decreases in freight intensity do not nessecarily mean that freight volumes decrease, but that the increase does not happen at the same rate as the increase in GDP per capita. The opportunities to change the energy use in the EU transport system are highly dependent on the freight sharing between transport modes. If we look at the breakdown between different modes in the EU the freight by road is dominant, followed by maritime transport. These dominant transport modes in the EU are shown in Fig. 3.2 below. Figure: 3.2 Modal distributions of goods 2008, percent t.km Source: Panorama of transport EU 2009 The distribution shown in Fig. 3.2 is both a snapshot and a distribution, which has characterized developments for many years, with tendencies to strengthen some cargo types. There are differences in the cargo market which is directed towards Europe and the global market. 32

33 In the following we will focus on developments in the transport structure of the EU and take into consideration the various conditions which the different freight transport modes have passed through in recent years EUROPEAN MARITIME TRANSPORT SYSTEM As we have pointed out earlier, the EU's maritime transport system is an important part of the whole transport system in the EU. It is from these ports that EU exports to the global market are conducted through international shipping lines. They are HUBs for international trade and access to global markets outside the EU. Their importance is determined by how the EU member states will be integrated into the international division of labour in the future. Figure.3.3 Sea freight from EU ports Sources: Eurostat database As Fig. 3.3 shows, the freight volumes grow and increase in the entire period until the crisis in Europe. A more analytical approach is to look at shipping freight per capita in the same period (see Fig. 3.4). 33

34 Figure 3.4 Growth rate and tonnes per capita, shipping freight EU Growth rate EU 27 : 3,5 3,4 4,2 3,2 2,6-0,5-12,1 5,7 Tonnes pr. capita 6,9 7,1 7,3 7,6 7,8 7,9 7,9 6,9 7,3 Source: Eurostat datbase Development in maritime cargo has not been as large as developments in the total tonnes indicated, although Fig. 3.4 shows, that there is a tendency for a small increase over years. The figure shows per capita, that the level in 2010 is back at 2004 levels, i.e. before the crisis in However, it is also noteworthy that the level per capita was at its highest between the years The European maritime transport system consists of three different components. First, transport level at the global market. This is transport departing from international HUBs for which international liner traffic is very central for the hinterland. Second, ordinary sea transport between European ports, either feeders to major global ports or transport to users from impark ports. The last part is the inner waterways which play a crucial role in some areas of Europe. We will deal with only the first two parts because they have the greatest impact on the STRING corridor. If we look at the largest and most dominant ports in Northern Europe, one dominant port is clearly shown, namely Rotterdam (see Fig. 3.5). Figure 3.5 Dominated ports for global goods in Northern Europe Sources: Eurostat database 34

35 Fig. 3.5 shows that the largest export ports are Rotterdam, Antwerp and Hamburg. It is crucial for them and their development to have access to these ports and not least their hinterland. The calculation is based on the total tonnes of freight. Goods can be of different nature. Some ports specialize in various kinds of goods. The part of the shipping market, which is especially interesting for the STRING region, is the cargo market. Access to the international market is mainly through this port. If we look at the cargo market in Northern Europe, a picture can be drawn, by dividing the volume of containers distributed per port. Figures 3.6 Containers ports in Northern Europe Source: Eurostat database As we have seen in relation to the total volume of goods, the port of Rotterdam is also the all-important port for container traffic. It is interesting that Hamburg and Antwerp are almost equal within the container market. Moreover, Bremerhaven is a significant operator in this market too. The ports in the Nordic countries, which are nationally close to the STRING region, are Gothenburg and Aarhus; they are both small operators on the container market. Besides the large central port of global trade, there is also the EU intra sea transport system which consists of transports both by river and by sea. There are clearly different development conditions for the two forms of transport, and they concern both feeders traffic to the large globally oriented ports and transport for intra-eu trade. 35

36 Figure 3.7 Modal split of sea freight, EU intra market Source: OECD, ITF database Fig. 3.7 shows the share of the cargo for the EU intra maritime transport, which only includes intra-eu trade and which means that transport to overseas ports is not included in the calculation. The figures clearly point out that intra sea transports in the EU are in decline. Given that there is a decline in freight components does not necessarily mean that the actual cargo volume declines. 3.4 AIR CARGO MARKET IN EUROPE The European air cargo market is small in tonnes compared to other transport modes, but it is important in terms of speed- and time sensitive goods. However, it is also essential in relation to strategic core products for firms such as spare parts. In Northern Europe 23, only two airports (Amsterdam and Frankfurt) are large and internationally important. In the STRING region only Copenhagen airport is of a significant size, although within the European context it is considered small. 23 In this connection we do not include London Heathrow airport because it is not relevant as air freight to STRING. 36

37 Figure 3.8 Air cargos on board in 1000 tonnes GEO/TIME European Union (27 countries) : : : : European Union (25 countries) : : : : : European Union (15 countries) : : : : : : Source: Eurostat database Air cargo 72% of the fly cargo market in Europe is concentrated in Germany, United Kingdom, Netherlands, France, Belgium and Luxemburg. Fig. 3.8 shows that in recent years there has been growth resulting in the figures for 2010 to be back at 2008 levels. However, at the same time there have been some interesting shifts in the type of air cargo. Figure 3.9 Intra European cargo market Source. Boeing Company, statistics cargo forecast Fig. 3.9 illustrates the European air cargo development from 1991 to 2011, clearly pointing to the fact that express cargo represents an increasing part of the European cargo market. The upper part of the graph shows the express air cargo. The statement is based on the value of cargo, which may well give some offsets in relation to tonnes. The statistics explain that air cargo will be increasingly used in situations where cargo is time sensitive for users. A survey by Eurostat from 2008 shows that although air car- 37

38 go accounts for only 0.2% of freight in tonnes, it accounts for 16% in value24. Between the two fields in Fig. 3.9 is a minor field representing mail, which accounts for a very small portion of the European air cargo market. Looking at Scandinavia and the northern part of Europe, there are some key airports which clearly distinguish them from the other airports in the area. Figure.3.10 Total freight and mail on board in tones by airports in North Europe Frankfurt/ Main airport Amsterdam/ Schiphol Airport København /Kastrup airport Stockholm/ Arlanda airport : : : Goteborg/ Landvetter Airport : : : Berlin: Schonef. and Tegel Hamburg Airport Source. Eurostat database Frankfurt and Amsterdam are the dominant airports for air cargo in Northern Europe. Looking at the air cargo market size, it is noteworthy that large cities like Hamburg and 24 Eurostat: EU energy and transport in figures 25 For this year there is a diference between Eurostat and the danish statestics in number of tonnes. 38

39 especially Berlin have a relatively small part of the air freight cargo market. Their parts combined are smaller than the shares of Copenhagen Airport. In Berlin the business development in this sector is very modest, and in Hamburg the market may play an important role, but this can be dealt with by the dominant freight airports of Amsterdam-Schiphol and Frankfurt, which in terms of transport, are located nearby ROAD FREIGHT IN THE EU Truck traffic is the largest mode of transport, and also the most problematic in relation to improved energy efficiency. Reduction of energy use in truck traffic can be based on two general principles. First and foremost, improving the use of existing transport in relation to effectiveness and energy efficiency; secondly, implementing a combination of truck and other modes of transport, in order to reduce the number of miles driven by truck. The international energy agency (IEA) has introduced a road transport energy paradigm. Where E is the total road transport energy consumption: E: road transport = (vehicle fuel efficiency) x (vehicle travel) x (vehicle population) Fuel efficiency is determined by technical energy efficiency; vehicle travel denotes the type of travel; and the number of miles driven and the vehicle population are the numbers of vehicles on the road (IEA: Transport energy efficiently, OECD/IEA 2010). Reduction of some of the parameters, while the others are stable, will reduce energy consumption 26. The IEA energy model shows a number of factors that determine the development of road transport sector's energy consumption. These factors apply to energy efficiency for each truck, capacity utilization and the number of trucks as shown in Fig The position of truck traffic is rising in the freight market, as Fig shows. 26 Eurostat: EU energy and transport in figures p11 39

40 Figure 3.11 Road freight parts of the total freight in EU 27 Source: OECD/ ITF database As shown in Fig. 3.11, the cargo transported by trucks share of total freight is increasing by tonnes over a longer period. The figure also illustrates the truck proportion of the total freight market. This shows that truck transportation still dominates the mode of transport over short or long distances in the EU intra market. This is primarily due to the strength of the trucks as a flexible form of transport. Figure 3.12 Road freight developments in EU in tonnes km. Source: OECD: ITF statistic data Developments in truck traffic are measured in tonne kilometre. Fig illustrates a continuous increase over time with a single minor drop. Data from the crises following 2008 is not included in the inventory, but additional data point to a decrease in trans- 40

41 port volume. From different sources the slightly diverse numbers are shown; therefore, there is no doubt about the trend. The challenge is to find alternative transport modes instead of trucks by using other modes or a combination of modes that enclose the functionality, which truck transportation contributes in today's economic structure. As we saw in the IEA energy formula, the number of trucks is one of the factors in the calculation of the transport sector's energy consumption. As Fig shows below, there is a large variety of truck density across the EU. The graph in Fig shows the distribution of trucks relative to each geographical region. It shows that truck density is highest in parts of Spain, western France and Poland, and partly also in northern Germany and in the Capital Region of Denmark. The highest number of trucks in a geographic area is in Lombardia in Milan. Other areas with a high number is Îll de France (Paris) and Madrid. The statement shows the number of trucks and their geographical importance in Europe. It comments on the truck relevance for regional areas, but not on traffic congestion. Eurostat conducted a study that looked at the number of trucks in relation to other factors, such as the number of registered cars, highways, railways, ports and an area's economic characteristics, and reported that the highest regional number of trucks is in North Jutland (38.6%) and the lowest is in inner London (7.4%). The proportion of trucks is also large in South Jutland, Middle Jutland and in some regions of Finland. As such, we can see the truck density from a relative or an absolute point of view Eurostat: Vehicle fleet statistics at regional level, Eurostat, March

42 Figure 3.13 Number of road freight truck in NUTS 2 region in Europe Source: Eurostat, tran-r vehst, special extracts 42

43 3.6 RAILWAY FREIGHT IN EUROPE The railway transport in Europe is more energy saving than other land-based transport in Europe. In spite of this, railway transport has had a declining share of freight transport for many years in the EU. Railway transport of goods has had difficulties keeping market shares during the recent years. This is due to several factors. On the one hand, much of the heavy industry has moved out of Europe. Weight-heavy transports use shipping and railway which are causing problems due to changes in the economic structure. On the other hand, there is an increasing demand for flexibility and promptness in the freight logistics sector. These relationships are driven by new forms of production and distribution which are not favourable to shipping and rail. If we take a look at the developments in the railway traffic market, it becomes obvious that its market shares have decreased over a long period of time. Figure 3.14 Railways parts of freight market in Europe Source: OECD ITF data As shown in Fig. 3.14, the EU railway has lost market shares to other modes of transport. As other figures in this chapter show it has lost market shares in particular to trucks. This does not mean that there has been a decrease in the volume of goods, but that the freight has mostly been transported by other transport modes and in particular by trucks. 43

44 Figure 3.15 Railway transport - goods transported, million tonne km GEO/Time European Union (27 countries) : : : : : Denmark Germany (including former GDR from 1991) Sweden Source: Eurostat database Fig shows that there has been a weak development in railway transport freight during the period. For 2010, the trend is slightly stronger in Denmark than in Germany. In 2010, Germany was at 2006 levels, and Sweden was at 2007 levels. For all countries there is an increase in tonnes/ km from 2009 to Figure 3.16 International Sea and Air Cargo Transport HUBs in the Northern Europe 44

45 3.7 SUMMARY Developments in the European transport sector have been driven by the evolution of division of labour. In addition to this, establishing the free movement of goods and EU enlargement have been important factors behind the transport development. The requirement for a reduction in energy use is posing major challenges for the transport sector. There is a growing political demand for conversion of transport modes in order to create less energy consuming means of transportation. At the same time there are factors that enhance the overall transport use. It is primarily based on the change in the demand of the transport modes, as well as consumer preferences. In recent years there has been a change between modes of transport in the EU. Truck transport accounts for an increasing share of freight transport, and at the same time there has been a declining market share for railway and intra EU maritime transport. HUBs for the international market are concentrated in a few places. For the EU's maritime transport it is divided into inland waterways and maritime global transport, which in turn serve the transportation from Europe by international HUBs for overseas transport from where the international lines depart. For the ports, Rotterdam, Antwerp and Hamburg are central HUBs for the STRING region, and of these in particular Hamburg. For international air cargo there are two central international HUBs in Northern Europe: Frankfurt and Amsterdam Schiphol Airport and in the STRING region it is Copenhagen Airport. Access to these central HUBs is crucial for business in the STRING region. 45

46 CHAPTER 4 THE TRANSPORT SECTOR IN THE STRING REGION The STRING region consists of 5 parts: Hamburg, Schleswig-Holstein, Region Zealand, The Capital Region of Denmark and Scania. The two regions on Zealand together with Scania also constitute the Øresund region, which has been in close cooperation for a number of years. Data from the three national parts of the STRING region all show a decline in freight transport intensity. There can be both a relative and an absolute decline in freight intensity. Behind this development are the economies of the three national parts, where rising incomes do not establish themselves in similar volumes of goods. This does not mean, however, that transport and logistics are not important elements of business development, but it can be a starting point for a qualitative shift in the use of transport and also logistics. But the transport volume is still important in the light of the environmental and energy problems that demand for a greener transport. Figure 4.1 The STRING region The STRING region 46

47 The establishment of the fixed links (bridges and tunnels) between the individual regions has been an important precondition for the development of cross-border cooperation. For many years the industries have cooperated internationally, both globally and in Europe. This cooperation is based on the division of labour, where regulations and physical infrastructure generate conditions for national and international cooperation. These conditions demand for cross-border cooperation to develop physical transport systems, including infrastructure. This cross-border cooperation and at the same time cooperation in Europe via the EU have been important providers for the whole economic and political integration in Europe, as well as between the STRING region members. Developments in the division of labour, the integration processes and deregulation require for a well-developed transport and logistics system. The building of new infrastructure projects across national borders is both a prerequisite and a consequence of the increasing integration in business. The STRING region's transport and logistics cooperation are a consequence of the more general trends in trade and business development. Despite this development, there are also a number of differences on both commercial and transportrelated conditions in each of the regional parts. Northern Germany is strongly influenced by a transport structure that is both a link between Scandinavia and the rest of Europe, but also via Hamburg there is an important link to the global market. This part of the STRING region is also a bridge between Europe, Scandinavia and the Baltic countries, and in particular, the port in Hamburg has provided a link also from the rest of Germany and Eastern Europe to the world market. Therefore logistics are very complex and important. In Schleswig-Holstein there is a different transport structure where truck traffic dominates the domestic transport fully, and where the ports, especially on the Baltic coast, are extremely important ports for both Scandinavia and the Baltic countries. On Zealand there has been a very substantial shift in the economic structure in recent decades which has caused changes in the business structure. The service industries have played an increasing role in export development, which also has an impact on the transportation and logistics needs. At the same time Zealand is also a region of transit transport to and from the rest of Scandinavia and particularly Sweden. In Scania, there is also a very special circumstance where Scania is both a starting point for traffic to the continent and also a transit region for transport to Denmark and Germany / Europe from the rest of Sweden and from Norway. At the same time the industrial structure in Scania is changing and as a consequence of that it has affected the transport demand. 47

48 Maritime transport Maritime transport is a more complicated part of the whole transport structure in the STRING region. For Zealand the maritime transport represents 47% of the total freight volume, and 51% in Scania, while in Schleswig Holstein it is only 17% percent of the total transport volume. Hamburg is not included in this calculation, which probably explains the low numbers. Maritime freight accounts for 38% of the total transport volume in the county of Hamburg. There is a difference in the maritime transport volume between the port and the county by transport modes. The maritime transport in the STRING region can be divided into a few main areas showing the differences and functionality of the maritime freight. 1. Feeders for shipping to major global ports in the STRING region. 2. Ferries, mainly transporting trucks and freight trains between the parts of the STRING region. 3. Maritime freight from the STRING region parts to and from ports in or outside the STRING region, both in Europe and overseas. 4. Large global shipping companies which have their headquarters in the STRING region, but have their main activities in the global market. All the categories are important for the transport structure in the STRING region. In the following sections, we concentrate on ferry traffic, in addition to maritime cargo, which is important for some of the ports. These are an important part of the whole transport infrastructure between the STRING regions members and between the STRING region and the rest of Europe. Ports are a key part of the STRING region, not only for sea transport, but also for important transfer points for truck and freight rail transport. The fact that water has divided the transportation system into ports has resulted in the transport and logistics system specified in the map below (see Fig. 4.2), and with that their functionality. 48

49 Figure 4.2 Ports in STRING region and there modal split Source: Eurostat database The map in Fig. 4.2 shows clearly that Hamburg has a special position as a container port and also the gateway to the world market. At the same time, it is clear that some of the other ports are completely or almost specialized in truck transport. The transport structure of some of the other ports is more complex, in which they have functions in relation to the local economy or transshipment port for dry bulk goods or liquid bulk goods. The strength of the STRING region clearly lies in the fact that maritime transport is an important part of a transportation network that connects Scandinavia with the rest of Europe by central HUBs, and these connections are important for access to the global market through international transport routes. 49

50 Air Cargo in the STRING region Air cargo in the STRING region is not particularly significant. There are only two airports of importance that have air cargo, namely Copenhagen and Hamburg, and in an international context they are not particularly large. The Road transport Truck transport is the main mode of transport in the European transport system. It is the dominant mode of transport between the three national parts of the STRING region for the carriage of goods on the European market. It is partly road transport between Denmark and Sweden, but also between Sweden and Germany, and between Denmark and Germany. Schleswig-Holstein is the region that is most dependent on road transport. In the STRING region s northern part there are also the two crossing points between Zealand and Scania for road transport. Outside the STRING region there is major road transport between Gedser in Denmark and Trelleborg in Sweden to Rostock and Sassnitz in Germany in the region Mecklenburg-Vorpommern. The two German ports are both outside the STRING region, but they are part of the transport functional structure between Denmark and Sweden to Germany. Figure 4.3 Numbers of trucks to and from the Danish and Swedish part of the STRING region Source: ITD and Statistic Denmark and Statistic Sweden. As Fig 4.3 shows, road transport to the German part of the STRING region is dominated by the crossing of the German/Danish border in southern Jutland. Ferry transports represent only a third of the total number of trucks. However, ferry transport is also the part that directly links the STRING region's three parts. 50

51 Railway freight transport Rail transport of cargo has very different functions concerning the structure of the STRING region. For the Danish part it plays a very limited role in freight development and therefore for the whole logistics structure. By contrast, it is an important part of the transport and logistics structure in Sweden, where the special domestic cargo is significant. Yet, the Swedish exports of freight by railway are declining. However, it is of crucial importance for freight flow to Hamburg from Germany and the rest of central Europe. Also for the German Baltic ports it is very important, where railway freight is carried over to the rest of Europe from Scandinavia and the Baltic countries or transferred from ship to rail. The STRING region has a very complex transport structure, but it is an example of how the division of labour and its differentiation expresses the functionality that characterizes a coherent transport system. This means that trade structure and especially business development are reflected in the different needs of different types of transport. It is common that transport routes are the lifeblood of a functioning modern society. In the sections which follow, we will look at differentiations within each mode of transport and in each part of the STRING region, including the strengths and weaknesses of the transport and logistics structure. 51

52 CHAPTER 5 THE LOGISTICS SECTOR IN SCHLESWIG-HOLSTEIN AND HAMBURG The STRING region is composed of different national sections, which supply different development conditions for logistics and transport. In the following sections we will look at the trends in the German parts of the STRING region's transport development. This is done in order to illustrate the general development conditions for the logistics sectors, and additionally to identify key HUBs for transport in the individual parts of the region, namely Schleswig-Holstein and Hamburg. Another reason is to identify the transport structure between the north-south freight transport system and the Baltic Sea based transport system. These elements are central to an understanding of the changing framework conditions, which the transport system is facing in connection to the development of a green corridor STRING. Northern Germany has an important place in the STRING region's transportation system. It is home to the most central transport HUBs to the global markets connected to Denmark and Sweden, and to the Baltic region. It is additionally a transit region for transport to and from Scandinavia and to the rest of Europe. The German Baltic port has an important place in this context and a special role as a transport route between Scandinavia and the rest of Europe and even between Baltic countries, Finland and Europe. However, Scandinavia is the largest foreign market for hinterland goods to and from Hamburg HAMBURG: A GLOBAL HUB Hamburg holds a special position within the transport sector. Maritime transport plays a crucial role in the area, as well as rail freight services which are an important part of the transport structure, especially in regard to transshipment between ship and rail. For a more comprehensive overview of the relationship between the general economic development and transport, it is useful to consider the freight intensity. The freight intensity tells us a lot about the business structure in a country. Freight intensity means how much tonne/km is used in relation to a rising gross domestic product (GDP per capita). As we saw earlier, there is great variation in how much an increase in GDP affects the volume of transport. This depends on how developed the country is and in what direction the business structure is developing. The most developed EU countries (EU-15) have a tendency to see a decline or relative stagnation in freight intensity compared with more freight-intensity countries (see chapter 3). These 52

53 freight intensity countries have later become more involved in the global division of labor than the other EU countries 28. Figure 5.1 Freight intensity in Hamburg Source: Statistisches amt für Hamburg und Schleswig-Holstein,Eurostat and own calculation As Fig. 5.1 shows, the freight intensity rises until 2006, and then flattens and declines sharply from 2008, and from 2009 it rises again. As the crisis decreases, the transport increases, something which, as we shall see later, is already beginning to happen. In the last number of years the freight in tonnes has already been rising. Hamburg is dominated fully by the port; therefore, freight intensity says more about the development of the port than the use of transport in the region's own businesses. The question is how much it will continue to do so. After every crisis, there has always been an effect on business development and thus on trade and production. It is noteworthy that the increase in freight volume in the latter part of the crisis does not show as an increase in freight intensity. In the following sections we will look at the components of the transport structure, and thus as an element of freight intensity. Hamburg is a rather special region where the sea transport plays an important role in the whole transport system. Therefore, the total transport structure is slightly different from that in other areas in Germany which do not have a strong dominant mode of sea transport. Therefore, Hamburg is both an importing port in Germany, and also a crucial terminal for transshipments of goods to the other parts of the STRING region. 28 Freight intensity is defined as t.km / GDP pr. capita, but on a regional level, it is often inpossible to get data on t.km, over a longer period of time. Therefore we instead used tonnes / GDP pr.capita 53

54 Figure 5.2 Modal split the County of Hamburg in tonnes Modal split, the county of Hamburg Railway freight 17% Maritime freight 38% Road freight 44% Source: Eurostat database There is a big difference between the role of maritime shipping in the port of Hamburg and in Hamburg County. The county is significantly larger than the port. Moreover, the business structure of the city itself also appears in the transport structure composition in the county. It is, however, remarkable that the railway transport again becomes a major part of the county s transport structure SEA TRANSPORT FROM HAMBURG Hamburg Port is a very important port for transit cargoes to Scandinavia, central and east Europe and Northern Germany. This is STRING region's main global port for freight to overseas destinations. It is very centrally located for rail, truck and for intra-eu maritime transport, located where the North Sea-Baltic Canal opens into the North Sea. Hamburg has ly 42% of all sea traffic in the freight area in Germany, and is therefore a major operator in the maritime market Statistisches Amt für Hamburg and Schleswig Holstein: Schifffahrt und Aussenhandel

55 Figure: 5.3 Maritime transport to and from Hamburg Source: Eurostat database Hamburg is first of all an important port for container transport. This is due to the central location of Hamburg Port. Hamburg, like other ports, is especially dependant on the hinterland and how its transport structure gives access to the hinterland. That applies both to and from ports, and by these ports to international sea line and global markets. The curve in Fig. 5.3 shows a continuous increase throughout the process and then stops at the crisis, which began in Figure 5.4 Modal split Port of Hamburg 2010 in tonnes Source: Eurostat database 55

56 Fig. 5.4 shows two key freight areas in the Hamburg port; first and foremost, large containers and the other transport area is dry bulk cargo. These freight areas separate the harbour from other ports in Northern Germany. The special profile is based on the port's specialization as a gateway to overseas and long distance transport. In the following sections, we will concentrate on transport relations between STRING region's parts, Scandinavia and the Baltic region, all of which are functionally related to transport development in the north German part of the STRING region. Figure 5.5 Maritime traffic to and from Hamburg from ports in STRING region, Norway and Baltic 2010 Country 1000 tons Types of cargo Norway Dry bulk goods, 2.Liquid bulk goods, 3.Large containers Russian Federation Large containers, 2. Liquid bulk goods, 3. Other cargo Sweden Large containers, 2. Liquid bulk good, 3. Dry bulk Finland large containers, 2.Dry bulk goods, 3 Liquid bulk good Poland Large containers, 2.Dry bulk goods, 3.Liquid bulk goods Denmark Large containers, 2. Dry cargo, 3. Liquid bulk goods Latvia Dry bulk goods, 2.Large containers, 3.Liquid bulk goods Lithuania Large containers, 2.Dry cargo Estonia Large containers, 2.Liquid bulk goods, 3. Dry bulk. Source: Eurostat database There are two countries that clearly dominate the North German part of the STRING region: Russia and Norway. They have by far the largest ship traffic to the Hamburg Harbour, of the ports that were investigated. Here, it should be noted that this does not include trucks and trains that are not transferred by ship. From Denmark, the majority of the traffic is large containers, which sail to and from Hamburg, but also some dry cargo. Sweden, like Denmark, is totally dominated by traffic with large containers. In addition, part of their traffic includes dry cargo. Lithuania is one of the few countries which does not have Hamburg as the largest port. Lithuania, Estonia, Poland and Finland all have large containers as the dominant freight to and from Hamburg. Russia is a major customer in Hamburg. From Russia, shipments are dominated by large containers, but they also transport a lot of liquid bulk goods. Re- 56

57 markably, Norway s shipment of large containers comes in as the third largest type of goods, with dry cargo clearly dominant. Traffic from Latvia to Hamburg is approximatly half dry cargo, while the large container and the liquid bulk goods constitute the other half. The general picture is, as shown in Fig. 5.6, that the containers clearly dominate the freight market to and from Hamburg. Figure 5.6 Development in containers as part of general cargo to Hamburg Port Source: Statisticher Bericher: Statistiches Amt für Hamburg und Schleswig-Holstein As discussed previously, Hamburg Port is very important for freight to and from Scandinavia and to the global markets. The data from the Statistics Office of Hamburg and Schleswig-Holstein have also demonstrated this through an investigation of transit freight to and from Hamburg Port. These findings are very evident when we look at the the figure for feeder transport. This figure is about 20% of freight to and from Hamburg, arriving via feeders, and thus only a portion of freight to Hamburg arrived from the hinterland. 57

58 Figure 5.7 Container lines from Hamburg Port and to the rest of the world 2010 Source: Hafen Hamburg Marketing: Metropol Hamburg, Logistics Fig. 5.7 shows the freight lines from Hamburg and to the rest of the world. For Hamburg, the traffic to Asia is crucial. It represents over half of the container transportation and the second largest transport destination from Hamburg is Europe with 28%. Also, container transport to America (North and South) is important for Hamburg Port representing 11% of the container traffic in Hamburg 30. There are about 50 feeder lines to and from Hamburg, which transport container traffic to the main global lines in order to be shipped to the rest of the world. It is often feeder lines from neighboring areas situated at a distance for which it is possible to use sea transport. In Fig. 5.8 the Baltic and North Sea areas are strongly represented in feeder systems. This position of the feeder lines is not only shown by line traffic structure, but also by how much of the traffic is to and from Scandinavia (shown in Fig. 5.8 below). Fig. 5.8 also highlights the number of departures per week from individual countries. 30 Based on: Statistisches Amt für Hamburg und Schleswig-Holstein, special draft : Seeverkehr des Hafens Hamburg

59 Figure 5.8 Feeder departures per week to and from hinterland of Hamburg Port 2011 Source: Port of Hamburg, Marketing Fig. 5.8 shows in detail the impact feeder traffic has on the STRING region. It also shows that the ports in Norway and the Baltic region have an impact on the hinterland of the port of Hamburg. The feeder system from these ports is a basis for the maintenance of international freight lines to the rest of the world. This whole system of feeders is essential for export from the STRING region to the rest of the world and together with the traffic on the Baltic ports, it is the vital connection to the STRING region's transportation system: starting at the general level, then Hamburg's hinterland, and moreover to Germany, centered around Scandinavia and the Baltic region, as the chart in Fig. 5.9 below shows. Hamburg's own immediate hinterland, however, accounts for 22% of freight to and from Hamburg s port. This is illustrated in Fig The figure also shows the hinterland of the port of Hamburg which lies beyond the feeder system, including East and Central Europe, and Scandinavia and the Baltic region. 59

60 Figure 5.9 Transit freight to and from Hamburg Port by hinterland areas. Source: Port of Hamburg Scandinavia, as illustrated in Fig. 5.10, is the third largest customer in freight to and from Europe with 19% of the total European cargo to and from Hamburg. Figure 5.10 Scandinavia in percent of transit sea freight by Hamburg Source: Statistischer Bericht GIII/Hii Schifffahrt und Aussenhandel As can be seen from Fig. 5.10, there has been a stagnant level of transit traffic abroad to and from Scandinavia via the Port of Hamburg. This position ensures that the STRING region remains a strong gateway to the global markets, which is largely based on marine traffic. 60

61 Figure: 5.11 Hinterland transport modes of Hamburg Port 2010 in tonnes Source: Hafen Hamburg marketing e v Figures shown in Fig are based on container traffic at the Port of Hamburg, where 50% is transported by truck. Of these, ly 30% of container traffic is going to the Hamburg metropolitan region, which is an area of a radius of 150 km from the port. The remaining container traffic, i.e. 70% is thus being transported into the wider hinterland 31. There is therefore an important challenge in changing the mode of transport, as we will see in the following sections ROAD FREIGHT TO AND FROM HAMBURG Truck traffic is the major mode of transport to and from Hamburg. It is an important supplier of goods to the port and to the rest of Europe. It is noteworthy that the decline in transport by truck has not been particularly great in connection with the crisis of Metropolregion Hamburg, Starke fakten für eine starke logistikk regionen, April

62 Figure 5.12 Road freight from and to Hamburg Source: Eurostat database Fig shows a rise in the freight tonnes to and from Hamburg, despite the two small declines visible at the beginning of 2000 and after the crises of It is not possible to split the general truck freight transportation to Hamburg, on the one hand, and the freight that goes to the port of Hamburg to be further transported by ship, on the other. There is no doubt, however, that the port plays a dominant role RAILWAY FREIGHT TO AND FROM HAMBURG Hamburg is a central HUB for rail freight traffic, specifically freight to be further transported by ship. Although only 8.7% of the total German railway transport of goods goes to Hamburg, it is the most dominant port for railway transport in Germany. 62

63 Figure 5.13 Internodal Railway transport to and from Hamburg Source: Port of Hamburg As the chart clearly shows (Fig. 5.13), there are many direct connections with rail freight from abroad to Hamburg. As Fig. 5.9 clearly shows, one of the two central areas for traffic on Hamburg is Eastern Europe. Here, railway freight is situated in an important position as a transport route for this traffic. Although Hamburg is a large terminal for changing between rail freight and ocean freight, it does not play a large role in the transportation of rail freight which is coming from Scandinavia. There is not much rail freight from Denmark and Sweden to Hamburg (see figure 5.15). It is clear that the small transport distance to Hamburg Port plays a major role in the possibility of using rail. The largest number of trains comes from Germany, followed by the Czech Republic and Austria. Hamburg has a strong position in further transporting railway freight, given that 16.6% of the rail freight comes from abroad to Hamburg, but only 1.6% of that comes from Denmark and Sweden. Interestingly, it is countries like Austria, Slovakia, Hungary and Switzerland that dominate the rail traffic to Hamburg. From inside Germany, it is Brandenburg and Bayern which are the greatest suppliers for railway freight to Hamburg. 63

64 Figure Railway freight to and from Hamburg Source : Statistisches Bundesamt: Verkehr aktuell 03/2010 Again, as we have seen from previous freight transport modes, there has been a decrease in freight traffic due to the crisis in It turns out that the level of railway transportation in 2011, following the trend of other modes of transport, is almost back to the same level as before the crisis started. Scandinavia does not have a significant fraction of traffic from rail to Hamburg. It is clear, particularly in relation to Eastern Europe, but also to some extent to Germany, that there are other possible modes of transport. Although Fig shows no direct train freight lines to Hamburg from Sweden, Fig shows figures of other freight arriving from Sweden to Hamburg. Figure 5.15 Railway goods transport to and from Hamburg 2010 Total Rail goods 1000 t From abroad to Hamburg From Hamburg to abroad Total Hamburg From Denmark Total From Sweden Total Source: Statistisches Bundesamt Fachserie 8 reihe2 Tabelle 2.6 Wiesbaden 2011 and Güterverkehr der Eisenbahnen As shown in Fig. 5.15, there are more goods being transported from Hamburg than there are from abroad into Hamburg. This means that Hamburg, based on the rail freight transport, is a more significant export HUB for the STRING region than import HUB, although the differences are not large. 64

65 5.1.4 AIR CARGO FROM HAMBURG For some parts of industry, air cargo can be significant especially for certain supplies. On the basis of this, Hamburg is not an important air freight airport, as we can see from Fig below, given that the air cargo has even decreased over time. Figure 5.16 Air freight cargo Hamburg Airport Source: Eurostat database The air freight in Hamburg is now less than 27,000 tonnes per year as of It is modest in comparison to Copenhagen airport, which is not a large air cargo airport either. For comparison, in 2009 Hamburg airport carried in total 32,000 tonnes of cargo, while 152,000 tonnes of air cargo were transported via Copenhagen airport. In an international comparison, they are both small by air freight standards SCHLESWIG-HOLSTEIN TRANSPORT SYSTEM Compared to Hamburg, Schleswig-Holstein holds a very different place in the transport system. The region is primarily a transportation corridor for traffic to and from Hamburg and to the rest of Europe. There are, however, some key logistic HUBs that function as ports to the region. These include the Fehmarn Belt connection and key ports like Lübeck, Kiel (Travemünde) and Puttgarden. They are all key access routes to and from Europe and from Scandinavia. In addition to this, Kiel Canal (the Nord-Ostsee Canal) is a central waterway, which intersects the region. Furthermore, there is road transportation at the Danish-German land borders. These borders are important for transporting to Hamburg and to the rest of Germany, and further across Europe. The majority of traffic from Denmark passes this land border. As an overall measure of the relationship between living standards and freight development, we use freight intensity. The graph in Fig below shows the freight intensity of Schleswig-Holstein. 65

66 Figure: 5.17 Freight intensity in Schleswig-Holstein Source: Eurostat, Statistisches Amt für Hamburg und Schleswig-Holstein Similar to Hamburg, the freight intensity in Schlesweig-Holstein shows an increase until shortly before the crisis and then a sharp decline. The decline is the same as that in Hamburg, and it is not easy to predict whether these figures will change when the crisis has passed, or whether a structural change will take place as a result of a more thorough economic restructuring. However, it is beyond any doubt that there will be a change in freight intensity when the effects of the economic crisis slow down, and we begin to see the effects of the economic changes. Figure 5.18 Modal split between transport modes in Schleswig Holstein in tonnes Source: Eurostat database 66

67 The division of transport shows that transport carried out by trucks dominates the county of Schleswig-Holstein fully. This illustrates clearly that the business structure compositions depend on truck transport and to a somewhat lesser extent on rail transport. This division in transport modes is in contrast to the importance held by the maritime transport for the total transport structure in the STRING region. Just as for Hamburg, the Schleswig Holstein is also influenced by freight to and from the Baltic ports, as the graph in Fig below clearly shows. Figure 5.19 Maritime and transport by Schleswig-Holstein Source: Statistisches Amt für Hamburg und Schleswig-Holstein Fig clearly shows that Schleswig-Holstein is highly integrated in the neighboring countries' transport system. Almost the entire maritime transport takes place with neighboring countries. It is therefore an important transit region especially for the STRING region's northern neighbors. Compared to Hamburg, the ports in Schleswig- Holstein are not particularly large. However, there are a few that are slightly larger than others. They are important, especially for the European transport. The major ports in Schleswig-Holstein are: 67

68 Figure 5.20 Large sea freight ports in Schleswig Holstein in Ports Total 1000 tonnes of goods Lübeck Brunsbüttel Puttgarden Kiel Flensburg Rendsburg Husum Source: Statistisches Amt für Hamburg und Schleswig-Holstein The table in Fig shows that Lübeck is the dominant field of shipping in Schleswig- Holstein. Lübeck is a port targeting the Baltic Sea area and Brunsbüttel Port is located where the North Sea-Baltic Canal opens into the North Sea. They are the two largest ports, targeting two different geographical areas and locations. Figure: 5.21 Maritime freight transport between ports in Schleswig- Holstein, Baltic and Scandinavia Source: Statistisches Amt für Hamburg und Schleswig-Holstein: Statistischer Bericht: H II 2 - j/11 S, Die Seeschifffahrt in Schleswig-Holstein 68

69 Fig illustrates that the dominant freight traffic operating on the ports are from Sweden, followed by Finland and Denmark. Also the new countries in the international division of labor, such as Russia and Lithuania, also play a role in the freight volume. All the ports, and here in particular the Baltic ports, play an important role in these countries' access to the European market. Therefore, these ports and their specialization and transport relations with the Baltic region, German ports and Scandinavian countries will be examined later THE KIEL CANAL In Germany the Kiel Canal is called: Nord-Ostsee-Kanal. The Canal is a vital waterway for transport from Scandinavia and the Baltic Sea to Hamburg, and also for the passage to the rest of Europe. It is a clear alternative to rail and truck for certain product categories. Many of the feeders to and from the Baltic Sea pass through the Kiel Canal to Hamburg, Antwerp and Rotterdam, and to other ports in Europe. It has been decided by the Federal Government in Germany to expand the Kiel Canal, but the implementation of this decision has been repeatedly postponed. The 130 million Euro projects were last postponed until after Figure 5.22 Kiel Canal cargo development Source: Kiel Canal.org, statistics Fig clearly shows the transport of goods is increasing in the Kiel Canal. This increase is noteworthy up until the crisis in It is important to note that the declines after the crisis are quickly rising again. 32 Source: SHZ.de 69

70 Figure 5.23 Number of ships by the Kiel Canal Source: Kiel Canal.org, statistics Just like the tonnes of freight, the passage of freight ships is not as dominant as the cargo transportation. The increase started after a period of stagnation around 2000 and peaked before the 2008 crisis ROAD FREIGHT IN SCHLESWIG-HOLSTEIN As in other parts of the STRING region, truck transportation is dominant in Schleswig- Holstein. Of the total goods transported, road transport makes up ly 90% of freight. It is important to remember the traffic on the Kiel Canal and that transit transport has been excluded from Fig below. Figure 5.24 Road freight Schleswig Holstein Source: Statistisches Amt für Hamburg und Schleswig-Holstein 70

71 Like previous figures, Fig shows an increase in truck traffic, until just before the crisis, after which it falls slightly and rises again with a slight increase. As a number of other graphs of freight trends show, the 2010 figures are important because they clearly indicate that the decline in freight volumes ceases after the crisis and all trends have indicated a slight increase. Figure 5.25 National annual road freight in Schleswig-Holstein 2011 GEO Loading Unloading Total Flensburg, Kreisfreie Stadt Kiel, Kreisfreie Stadt Lübeck, Kreisfreie Stadt Neumünster, Kreisfreie Stadt Dithmarschen Herzogtum Lauenburg Nordfriesland Ostholstein Pinneberg Plön Rendsburg-Eckernförde Schleswig-Flensburg Segeberg Steinburg Stormarn Source: Eurostat database In terms of truck transportation, Segeberg county, located just north of Hamburg, dominates strongly. Also Rendsburg-Eckernförde, located on either side of the Kiel canal, has a greater amount of truck freight. The city of Rensdsburg is located between the Kiel Canal and Erckernförde, which is located next to the Baltic Sea. They are dominant cities in the county. Larger parts of truck freight traffic come from two other 71

72 counties in the region, namely Herzogtum Lauenburg, situated between Lübeck and the Elbe, and the town of Lübeck, one of the major port cities on the Baltic coast. Figure 5.26 National road freight transport in Schleswig Holstein Source: Eurostat database and own calculation RAILWAY FREIGHT TO AND FROM SCHLESWIG-HOLSTEIN Railway freight transport to and from the region is at a very low level. This does not include transit traffic to and from Hamburg, or from other parts of Germany and other major HUBs in Northern Europe. There are more trains in the region than these figures would lead to believe. In other words, it is only rail freight traffic directly to and from the region, which Fig refers to. 72

73 5.27 Railway transport to and from Schleswig-Holstein 33 Source: Statistisches Amt für Hamburg und Schleswig-Holstein Railway transportation to and from Schleswig-Holstein is very small in contrast to Hamburg. It represents only between 2 to 3% of the total freight. Once again, transit traffic is not included in the figures for Schleswig-Holstein AIR CARGO TO AND FROM SCHLESWIG-HOLSTEIN Air cargo from airports in Schleswig-Holstein is so small that it is not included in the Eurostat's database. The only airport that has air cargo is Airport Kiel. And it is a very small (about. 2 tonnes) part of the air cargo in the STRING region. All cargo transport is concentrated in Hamburg Airport in this part of the STRING region THE BALTIC PORTS IN GERMANY We will hereafter give an overview of the Baltic ports along the German Baltic coast. These are very important for the whole transport structure to and from Scandinavia. Two of the ports are outside the STRING region. In this context, we consider the region as a functional region (functional transport contexts) and not just as an administrative split region, based on administrative regions and towns. The German Baltic Sea ports play a vital role in marine traffic between Scandinavia and Germany, not only for shipping, but also for the transfer of rail goods and especially truck traffic. The German 33 Tables from 1996 until 2003 contain revised data; as these changes could not be broken down in terms of counties, the results of this table from 1996 until 2003 are only partly comparable with the corresponding figures of the mentioned tables. 73

74 Baltic ports have slightly different sizes and functionality. This will be discussed in more detail in the following sections. Figure 5.28: Difference size of ports in the Greman parts of the Baltic region 2010 in tonnes Source: Eurostat, database Lübeck and Rostock are the absolute dominant ports on North Germany s Baltic coast for freight to Scandinavia. Only Lübeck, Kiel and Puttgarden are part of the STRING region, but Rostock and Sassnitz are also importing ports for freight transport to and from Scandinavia. For these ports the changes in the infrastructure for freight transport via the Fehmarn Belt will also put these ports into action for retaining their parts of the Scandinavian transport. We see it more as a functional region where the two ports are part of this functional structure PORT OF SASSNITZ The Port of Sassnitz is located on the northern coast of the island of Rügen and is one of Germany s largest railway ferry ports. It is one of the very small ports, but also quite specialized, and therefore also important. The ferry port and its partners operate five terminals. 74

75 Figure 5.29 Maritime freight Port of Sassnitz Source: Eurostat database Fig points out a slight decline in freight volumes to and from Sassnitz throughout the period. During the past year there has been a slight upswing again, but this trend is declining. Figure: 5.30 Modal split in the port of Sassnitz 2010 in tonnes Source: Eurostat database 75

76 Relation between total freight and railway freight: Sassnitz Others: 48% Railway: 52% Source: Statistische Berichte Meckleburg-Vorpommern, special calculation The port is marketed as a green transport corridor via the waterways of the Baltic Sea with its (railway) ferry routes. The market is particularly established via the ferry link from the Port of Sassnitz and the German hinterland to the ports of Klaipeda (Lithuania) and Saint Petersburg (Russia). Ferries also operate from Sassnitz to Trelleborg in Sweden. There are three ferry operators in Sassnitz. Figure 5.31 Maritime traffic to and from Sassnitz from STRING region, Norway and Baltic ports Country 1000 tons Types of cargo Sweden Ro-Ro, mobile non-self-propelled units 2. Ro-Ro, mobile self-propelled units 34 Norway Dry bulk goods, 2. Other cargo Lithuania Ro-Ro, mobile non-self-propelled units 2. Ro-Ro, mobile self-propelled units Finland Dry bulk goods, 2. Other cargo Federa- Russian tion Ro-Ro, mobile non-self-propelled units, 2. Other cargo not elsewhere specified Denmark Other cargo, 2. Dry bulk goods Estonia Dry cargo Poland 7 1. Dry bulk goods Latvia 5 Other cargo not elsewhere specified Source: Eurostat database Sassnitz is the smallest of the German Baltic ports, which functions as a transit point between Scandinavia, the Baltic region and the Baltic ports in Germany. The RoRo, mobil non-self-propelled units comprise of mainly railway wagons. 34 Trailers and rail wagons 76

77 The largest operator in Sassnitz is clearly Sweden, followed by Norway. For Denmark, the goods are cargo and especially dry cargo, for Sweden it is totally dominated by RoRo, especially Ro-Ro, mobile non-self-propelled units. Finland has very little traffic at the Port of Sassnitz and it is completely dominated by dry cargo. For Lithuania, the RoRo traffic dominates the entire traffic where Ro-Ro, mobile non-self-propelled units, i.e. trailers and railway carriages are dominant. Russia almost exclusively operates with Ro-Ro, mobile non-self-propelled units and goods to Sassnitz. From Estonia and Poland, only a very limited number of dry cargo is transported. Very little cargo is being transported to and from Latvia and it is only in the category of other cargo. Figure 5.32 Ferry routes by terminals in Sassnitz DFDS: This ferry route provides easy access to Europe via Germany from Klaipeda in Lithuania. The Vilnius Seaway (DFDS) sails 3 times a week in each direction. From Sassnitz departing in the early evening and arriving the following day (early afternoon) in Klaipeda in Lithuania. DFDS also operates on a route Ust Luga - Sassnitz Kiel which operates once a week. Ust-Luga port is situated at the border of the Russian Federation and Estonia. Scandlines : Trelleborg - Sassnitz sails 4 5 times per day, and it takes 4 hours per crossing. It is the only ferry line to Scandinavia. Finnlines : (Trans Russia Express) direct link between Lübeck/Sassnitz in Germany, and Ventspils in Latvia and to St. Petersburg in Russia; it carries Ro-Ro, containers and general cargo. It sails twice a week. Source: Port of Sassnitz and ferry lines In connection to the ferry routes there are a lot of railway lines operating. Sassnitz is the largest rail-ferry terminal in Germany. It is the only port in Central Europe offering the possibility of transloading railway wagons to those used in Finland, Russia and the Baltic countries, with a broad gauge of 1520 mm. The wide-track area offers several options for transferring the goods. Apart from the traffic to Scandinavia, the central target from the port of Sassnitz is clearly Eastern Europe and in particular Russia. It has also a central position within railway transport from the port. The rail share of freight to and from Sassnitz is at a high level compared to other ports Statistische Berichte: Schiffs-und Güterverkehr in Meckleburg- Vorpommern feb and special draft on Statistisches Amt Meckleburg-Vorpommern

78 Figure: 5.33 Sea Real transport system from German Baltic ports to Baltic sea coast Source: The port of Sassnitz LÜBECK HUB: THE MAIN PORT TO SCANDINAVIA Lübeck port is located at the Trave River. It is a central logistic HUB between Europe s major industrial centres and Scandinavia, Finland, Russia, the Baltic States and Poland. It has services with more than 130 departures per week from the port. There are two central dock areas in Lübeck. Firstly, Scandinavia kai away in Travemünde, which lies at the mouth of the Trave River; secondly, in the Lübeck City Port there are 3 dock areas: Nordlandkai, Terminal Schlutup and Seeland Kai. Lübeck and Travemünde are the most important Baltic ports for traffic to and from Scania (Sweden). Additionally, these ports are important for traffic to Finland and the Baltic region. RoRo traffic entirely dominates the transport at the port, for example, 78% in tonnes is made up of RoRo traffic. Therefore, these ports are a significant po- 78

79 tential supplier for changes in transport structure in the coming infrastructure investment in the Fehmarn Belt. Figure 5.34 Maritime transport Lübeck Port Source: Eurostat database We have seen a decline in transport modes through a long series of earlier calculations in this project, and we also see a decline in transport at Lübeck Harbour in It is obvious that after 2009 there has been a slight increase, but far from the levels that characterized the transport level before the crisis began. Figure 5.35 Modal split by Lübeck Port 2010 in tonnes Source: Eurostat database 79

80 For ports like Lübeck, in particular, it depends on the economic development in countries which handle traffic to and from Lübeck. That includes Finland and Sweden which have a major impact on the transport volume. In 2010, the transport level was back to the freight levels for RoRo cargo is dominant at Lübeck Harbour as it accounts for 78 percent of the total cargo, where the non-self-propelled units, i.e. trailers and railway wagons, make up the largest share. Mobile self propelled unit, i.e. trucks and cars, are also a large group. Large containers play a modest role in freight structure. Figure 5.36 Sea transport to and from Lübeck from Scandinavia and Baltic ports 2010 Country 1000 tons Types of cargo Sweden Ro-Ro, mobile self-propelled units 2. Ro-Ro, mobile non-self-propelled units 3. Large containers Finland Ro-Ro, mobile non-self-propelled units 2. Large containers Latvia Ro-Ro, mobile self-propelled units 2. Ro-Ro, mobile non-self-propelled units 3. Other cargo not elsewhere specified Russian Federation Ro-Ro, mobile non-self-propelled units 2. Other cargo not elsewhere specified 3. Ro-Ro, mobile self-propelled units Norway Dry bulk goods Lithuania Dry cargo Estonia Ro-Ro, mobile non-self-propelled units 2. Other cargo not elsewhere specified 3. Large containers Denmark Dry bulk goods. Poland Dry bulk goods 2. Other cargo not elsewhere specified Source: Eurostat database 80

81 Clearly the largest operator in Lübeck is Sweden, followed by Finland and then Russia. RoRo traffic from Sweden dominates fully, and of this Ro-Ro, mobile self-propelled units are the major part. Lübeck is Finland's dominant port on the German Baltic coast. As for Lithuania, almost 100 percent of the goods transported to and from Lübeck are comprised of dry bulk goods. Shipping from Russia and Estonia is dominated by the Ro- Ro, mobile non-self-propelled units, i.e. trailers and railway wagons. From Poland, it is almost entirely dry cargo which is transported to Lübeck. From Latvia, it is almost exclusively RoRo traffic and here almost only mobile self-propelled units (truck and car). As for Norway, only dry cargo is transported to and from Lübeck. There are 4 major central quays in Lübeck, and the largest is Skandinavia Kai located in Travemünde. Figure 5.37: Wharf facility in Lübeck Skandinavia Kai Primarily RoRo facility serving loose cargo trailers or containers from the ferries from Gothenburg, Trelleborg, Malmö, Helsingborg, Helsinki, Turku, Hanko, Rauma and Riga. Routes to Scania in Sweden: TT line: Trelleborg (7 hours and 30 minutes; 3 daily departures) AB Nordö-Link (Finnlienes): Malmø 20 weekly departures (7 hours and 30 minutes) Nordland Kai The Nordland Kai is the centre of Finland Traffic. First and foremost wood and pulp products play a major role in traffic on the dock. In terms of employment, Terminal Nordlandkai is the biggest terminal of Lübeck's city ports, close to the main centre of Lübeck. There is weekly traffic to Helsinki, Rauma, and Kotka and other places in Northern Finland and connections to St. Petersburg but also to Tallinn / Muuga in the northern and eastern part of the Baltic region. Terminal Schlutup The terminal is the main gateway for the transportation of Swedish forest industries products to Europe via Lübeck. It represents a new generation of quay facilities, which has been developed in cooperation with the Swedish forest product industry, which uses this port today. Swedish forest products arrive regularly by vessel in the Schlutup port to be distributed from Lübeck to continental Europe. Terminal Seeland kai The terminal is the newest dock in Lübeck handling containers and RoRo-cargo and has been in operation since summer Main cargo: Trailers, containers and new vehicles. Source: Port of Lübeck and ferry lines 81

82 Train freight by the Port of Lübeck There is transport from ship to rail to many destinations from Lübeck, as Fig below shows. The share of railway from the modal split is about 16 % (overall tonnage 24 Mio. tonnes in 2011) and about 70,000 units were transshipped in Relation between other modes and railway freight: Lübeck Other modes: 84% Railway:16% Source: Lübecker Hafen Gesellschaft Figure 5.38 Block-Train service from Lübeck Kombinierter Verkehr Per week Time Forstprodukte (konventionelle Waggons) Per week Time - Basel (CH) 2 x A-B - Duisburg 8 x A-B - Mannheim 5 x A-B - Hamburg-Billwerder 4 x A-A - Basel (CH) 5 x A-B - Karlsruhe 4 x A-B - Mailand (I) 5 x A-C - Cologne 3 x A-B - Chiasso (I) 4 x A-C - Ludwigshafen 6 x A-B - Turin (I) 5 x A-C - Novara 1 x A-B - Grisignano (I) 3 x A-C - Verona 5 x A-B - Castelguelfo (I) 5 x A-C - Bettembourg 3 x A-B Source: Lübecker Hafen Gesellschaft As the table in Fig shows, Lübeck is an important junction between ship and rail transport particularly between the Baltic region, the German industrial area and northern Italy. Train: Combined transport between Lübeck-Travemünde and Verona lock trains 5 times per week in both directions: P400 trailers, containers, swap bodies and from Road to Rail service. 36 Source: Information from the Port of Lubeck office. 82

83 By Finnlines: A 40 hour transport of freight from Helsinki by ship and from Lübeck to Duisburg by train. ECL offers regular trailer connections between Lübeck -Travemuende and Verona in Italy. Also truck trains from and to Verona are possible. It takes 1 day and 1 night from Lübeck Skandinavienkai for goods to reach Verona in Italy by train. Source: Port of Lübeck and ferry lines Figure 5.39 The ECL transport by rail from Lübeck Source: ECL Overall, Lübeck Harbour is a very important port within the STRING region, due to its importance for the traffic to Sweden from Germany's Baltic port. Lübeck Harbour is an important port for longitudinal transport in the Baltic Sea from Russia and the Baltic Region to the STRING region. It opens up opportunities for the STRING region as a HUB between the southbound freight from Scandinavia and the longitudinal transport from Russia, Finland and the Baltic region. It is, thus, an intersection of freight traffic from Scandinavia and the Baltic area by ship and modal split by rail or truck to the main population and industrial areas in Germany and northern Italy PORT OF KIEL The Port of Kiel is a relatively small transport port of freight cargo, in comparison to the larger Rostock and Lübeck ports. It is essentially a passenger and cruise port, located at the entrance to the man-made waterway, the Kiel Canal. However, it is a remarkable development that the port of Kiel has not suffered a decline in the quantity of goods transported through the port, unlike many of the other ports, which have suffered due to the 2008 crisis. In Kiel there has been an increasing freight volume over the past year. 83

84 Figure 5.40 Maritime transport Port of Kiel Source: Eurostat database In comparison to other German Baltic Sea Ports, there has been a relatively stable development over the last years and even a small rise in the transport volume. Figure 5.41 Modal split Port of Kiel 2010 in tonnes Source: Eurostat database As Fig shows, RoRo, mobile non-self-propelled units, together with propelled trucks dominate more than half of the cargo in the Port of Kiel (trucks and cars). RoRo make up slightly more than half of the freight to and from Kiel. 84

85 Figure 5.42 Maritime transport to and from Kiel from Scandinavia and Baltic Country 1000 tons Types of cargo Lithuania Ro-Ro, mobile non-self-propelled units, 2.Ro-Ro, mobile self-propelled units, 3. Other cargo not elsewhere specified Sweden Ro-Ro, mobile self-propelled units, 2.Ro-Ro, mobile non-self-propelled unit. Latvia Dry bulk goods, 2-Large containers Norway Ro-Ro, mobile non-self-propelled units, Russian Federation 2.Dry bulk goods Other cargo, 2. Liquid bulk goods Denmark 81 1.Liquid bulk goods, 2. Dry bulk goods, 3. Other Poland 20 1.Dry bulk goods Estonia 0 Finland 0 Source: Eurostat database The Swedish freight transport in Kiel is modest, but dominated by RoRo traffic. There is no shipping from Finland to Kiel. Kiel is Lithuania's main port on the German Baltic coast. The Ro-Ro, mobile non-self-propelled units like trailers and wagons dominate the traffic. Russia has very little traffic to Kiel and it is stated as other cargo. No freight is registered between Kiel and Estonia. From Poland and Latvia, only dry cargo arrives by ship. From Norway, mostly Ro-Ro, mobile non-self-propelled units are being transported to Kiel. Figure 5.43 Ferry terminals in Kiel Norwegenkai : The Norwegenkai is a quay for ferries to Norway. The Color line operates daily departures to Oslo. It is essentially a passenger ferry, but it transfers trucks. Schwedenkai: Daily departure to Gothenburg by a passengers and vehicle and truck ferry. The Stena Linesails to Gothenburg with daily crossings, taking 14 hours. Ostseekai: The cruise terminal located close to the city centre. The Nordhafen: A maritime commercial centre for all modes of transport Scheerhafen: It is situated by the entrance to the Kiel Canal particularly for bulk and construction materials. Source: Port of Kiel and ferry lines 85

86 As the review clearly shows the harbour is dominated by traffic to the ports in the northern part of Kattegat and Skagerrak, i.e. traffic has a longer travel time than the ferries from Scania and Zealand to Germany. Additionally, the port is dominated by passenger and cruise ships. Train transport and modal split from Kiel: The intermodal railway shuttle offers regular rail connections for semi-trailers, swapbodies and containers from Kiel to destinations in Germany and Europe The shuttle transports intermodal cargo from Schwedenkai (Sweden Quay) and carries out all shunting services for the refinery in Hemmingstedt. There are connections to rail networks in Kiel to: Basel, Cologne, Hamburg, Karlsruhe, Duisburg, Frankfurt, Munich, I-Busto,Verona and CZ-Lovosice. Figure 5.44 Ferry lines to and from Kiel Stenaline: From Kiel there are 7 weekly ship departures to Gothenburg with Stena Line. Color Line: To Oslo there are 7 weekly departures with Color Line Finnlienes : The Trans Russia Express directly links Lübeck/Sassnitz in Germany, and Ventspils in Latvia and St.Petersburg in Russia. DFDS: Operate a route Ust Luga - Sassnitz Kiel. The route operates once a week. LISCO (DFDS) A route operating from Klaipeda in northwestern Lithuania to Kiel. TransMarine Line: weekly container and break-bulk service Kaliningrad/Kiel/Kolding and v.v. Source: Port of Kiel and ferry lines PORT OF PUTTGARDEN Puttgarden is on the German side and acts as the central port between Denmark and Germany. From 2021 the route is going to be replaced by a tunnel, with both a rail link and road, becoming the main road route between Eastern Denmark and Germany. It will most likely be an important transit route between the southern part of Sweden and Germany. Only one ferry line is currently operating between Puttgarden and Rødby in Denmark. The route is operated by Scanline and it is a truck, car and passenger ferry. It provides a central link between Zealand, the Capital region and Southern Sweden to Germany and to central and Southern Europe. Today there is no railway and no RoRo, mobile non- self propelled units at this port. After the establishment of the tunnel between 86

87 Fehmarn and Lolland, there will be a rail connection, and possibly a new bridge over Storstrommen. Figure 5.45 Maritime freight of Puttgarden Source: Eurostat database PORT OF ROSTOCK The port of Rostock is located at the Warnow River estuary in the Baltic Sea. It was the former GDR central Baltic sea port.the heart of the seaport is the ferry port with its terminals for combined cargo, for forest products and roll-on/roll-off cargo. Tourist and ferry passengers use Rostock-Warnemünde as a base for exploring Germany s capital city, Berlin. It is a port for traffic to both Scandinavia and Finland. Figure 5.46 Maritime transport Port of Rostock Source: Eurostat database 87

88 As Fig shows, there has been a constant increase in freight traffic throughout the period from , with the exception of a slight decline in the period and during the 2008 crisis. The general trend has clearly been one of growing traffic at the port. Figure Modal split Port of Rostock 2010 in tonnes Source: Eurostat database Unlike other ports, dry bulk and liquid bulk cargo goods make up a significant portion of freight in Rostock. Lorries and non-self-propelled unit constitute only a third of the quantity of goods. This is different from other ports on the German Baltic coast. 88

89 Figure 5.48 Maritime transport to and from Rostock from Scandinavia and Baltic 2010 Country 1000 tons Types of cargo Sweden Ro-Ro, mobile self-propelled units 2. Ro-Ro, mobile non-self-propelled units 3. Dry bulk goods Federa- Russian tion Liquid bulk goods, 2. Dry bulk goods 3. Other cargo not elsewhere specified Finland Ro-Ro, mobile non-self-propelled units 2. Ro-Ro, mobile self-propelled units 3. Other cargo not elsewhere specified Denmark Ro-Ro, mobile self-propelled units, 2 Dry bulk goods 3. Liquid bulk goods Poland Dry bulk goods Latvia Dry bulk goods, 2. Other cargo not elsewhere specified Norway Dry bulk goods, 2. Other cargo Estonia Dry bulk goods, Lithuania Dry bulk goods, Source: Eurostat database 2. Other cargo not elsewhere specified 2. Other cargo The largest proportion of goods clearly come from Sweden followed by Russia, but also Finland and Denmark contribute to the cargo at Rostock. For Sweden's part, it is completely dominated by RoRo traffic, and here especially the mobile self-propelled units, i.e. trucks and cars. Rostock is Finland's second largest port on the Baltic coast. Trailers and rail freight from Finland is dominant, followed by trucks and cars. Lithuania has a little traffic to Rostock, with dry cargo dominating. There is no RoRo traffic at Rostock from Lithuania. Freight between Rostock and Russia is completely dominated by liquid bulk goods. Rostock is the second largest port for 89

90 goods from Estonia after Hamburg and dominated by dry cargo. Rostock is the second largest port for cargo between Germany and Poland. Also from Poland, Latvia and Norway dry bulk goods are dominant. Figure 5.49 Ferry line to and from Rostock TT line: Trelleborg - Rostock 20 weekly departures: crossing 5 hours, 30 minutes Scanlines:Trelleborg - Rostock 19 weekly departures: crossing 6 hours Scanlines: Gedser- Rostock Up to 10 daily departures: crossing 1 hour 45 minutes Finnlines: Gdynia Helsinki - Rostock: three weekly departures: crossing 14 hours to Gdynia and 37 hours to Helsinki. RoRo traffic to and from Rostock UMP: Rostock Hull/ England Kotka Finland Departure: departures once a week UMP: Rostock Lübeck Turku ( Finland) Rauma ( Finland) departures once a week Finnine: Rostock Hanko( Finland) departures once a week Scanline: Rostock Oslo Bergen departures four times a week NORlines: Rostock Bergen and other places in Norway Source: Port of Rostock and ferry lines Train freight Main operator: DB Schenker It was transported 19.8% of freight (railway freight) goods sums up to about 3.9 million tonnes of goods in 2010., by train and intermodal to Rostock port, and of this 1.5 million tonnes was handled by intermodal traffic in Relation between other modes and railway freight: Rostock Other modes: 80.2% Railway: 19.8% Sources: Special calculation: Statistisches Amt: Meckleburg-Vorpommern, special calculation 90

91 Figure 5.50 Rail freight from Rostock Intermodal transport from and to Rostock by train Times/Week Verona ( Italy) 12 Duisburg/Hamburg (Germany) 6 Basel (Switzerland) 5 Novara (Italy) 3 Wels (Austria) 2 Brno (Czech Republic) 2 Source: Port of Rostock As shown in Fig the development turns out to be the same as we saw in Lübeck, where there is a close connection between Rostock Harbour and Italy via rail. With the exception of the Czech Republic, the destination of the railway system is the old West European industrial countries, which is where the customers and business cooperations are established. Figure 5.51: Railway freight Munich Hallsberg by NSFF: Source: NSFF An example of an established rail goods line, with fixed departures and arrivals, is the railway freight route between Munich and Hallsberg in Sweden, established in collaboration with the Swedish industry. 91

92 Rostock Harbour has a large share of goods as bulk cargo, unlike the other German Baltic ports. It is also a port designed for traffic to Denmark, to Gedser and to Trelleborg, and especially in the Finnish market. Liquid and dry cargo are a very big part of the cargo in Rostock. Trailers mainly come through Gedser and Trelleborg. Next to the freight rates Rostock Harbour aims at attracting cruise ships, with easy access to Berlin and the Baltic coast. 5.4 STRING REGION AND THE LOGISTICS SYSTEM IN NORTH GERMANY The STRING region's southern part is the part of the region that is mostly differentiated by transport. Hamburg, which is a separate sub-region in the STRING corridor, is clearly the most dominant port for international shipping traffic for the STRING region to the international market. It has a strong position with many lines of goods to the rest of the world. Many lines are departing from the harbour to northern Europe and Scandinavia. For Hamburg Port, Scandinavia is an important supplier of goods by sea transport. It is also an important railway junction for modal switching between rail freight and sea transport. Schleswig-Holstein has, by freight terms, a weaker position than Hamburg, although there are significant transport issues. The Kiel Canal is running through the region and it is a very important waterway to and from the Baltic region. It is a significant canal for access to Hamburg, and not at least to the rest of Europe. Besides the truck traffic that passes through ferries, a large part passes through the Danish-German border via Europe road E45. Figure 5.52 Transport between German ports and Denmark, Sweden and Norway 2010 in tonnes Source: Eurostat database 92

93 Transport to and from Sweden dominates, as shown in Fig There are ly 20 million tonnes of goods per year transported from the Swedish ports to the port of Hamburg and the German Baltic ports. The RoRo traffic is concentrated to ports on the German Baltic coast. Of this, approx. 14 million tonnes of RoRo cargoes are transported from Swedish ports yearly, which would make them potential users of the fixed link across the Fehmarn Belt, once it has been established. Along the German Baltic coast, there are a number of ports that are essential for the transport of goods through the STRING corridor to the Scandinavian countries. It is, in a functional structure, first and foremost, Lübeck, Sassnitz and Rostock which have direct connections to the northern parts of the STRING and mainly to Scania (Sweden). Figure 5.53 Transport between German ports Russia and Baltic countries and Finland 2010 in tonnes Source: Eurostat database The German Baltic ports also play an important role in transport from the STRING region to Finland and the Baltic states and St. Petersburg and Ust Luga in Russia. Of this transportation, the longitudinal transport corridor through Germany s sea ports plays an important role to access the European market and from this market to the Baltic and the Russian markets. Finland and Russia dominate the total transport. This is supported by new ferry lines to the newly created port on the Russian Baltic coast. There is a freight division between some of the ports. Kiel Harbour primarily has the Swedish west coast and Norway as the main markets. Rostock is the dominant port on the German Baltic coast. Rostock is clearly dominated by bulk goods especially with regard to the Finnish market, but it also operates ferry lines to Trelleborg in Sweden 93

94 and to Gedser in Denmark. RoRo transportation is a significant part of the road transport. Railway transport makes up 15 to 16% of modal split. There is rail freight traffic to Italy and southern Germany and to Switzerland. In addition, the Lübeck port also has a close co-cooperation between the port and the Swedish forest industry. Figure 5.54 Freight divided on the direction in the Baltic Sea 2010 in tonnes Source: Eurostat database The ports in northern Germany have a very central position in the current transportation structure. Hamburg is a very important centre for remote transport to overseas markets. The German Baltic ports are centrally located at an intersection between the Scandinavian and northbound freight traffic, and the longitudinal transport via the Baltic Sea for traffic to Finland, Russia and the Baltic states. It is important to look at the freight structure in the Baltic Sea, because it is clear that mainly the transverticale traffic is going to be affected by the establishment of the fixed link between Denmark and Germany. It will affect the whole traffic development. Today, German Baltic ports have a central position for modal split for railway transport between Europe, the Baltic region and the Scandinavian countries. The connection of these broad lines is important for further transportation to Europe. Shifts in this position could influence the whole transport structure, especially in rail transport, but also truck transport. This position of the German Baltics ports is based on the product structure of freight goods today, and depends on the existence of the infrastructure. Changes in the structure will have an influence on the insurance of this position of the ports and their competition in the future. The changing conditions will be addressed in the following chapters. 94

95 95

96 CHAPTER 6 DEVELOPMENT OF LOGISTIC AND FREIGHT TRANSPORT IN ZEALAND 6.1 THE DEVELOPMENT OF FREIGHT TRANSPORT IN ZEALAND The Danish part of the STRING region has 2.5 million inhabitants. The region consists of the island of Zealand, which contains two regions, Region Zealand and the Capital Region of Denmark. This part of the STRING region has three main functions: first, it is the starting point for the future Fehmarn link to Germany; second, it generates goods through the STRING corridor from Zealand to overseas markets and to Europe from the regions themselves; and third, it acts as a transit corridor for goods mainly from Sweden, but also from Norway, to Europe and from Germany to Scandinavia. Zealand has two other transport characteristics. On the one hand, there is the Great Belt Bridge, connecting Zealand with Funen and therefore, with Europe. On the other hand, the Øresund Bridge from Zealand to Sweden, which connects Zealand with the Scania region, Sweden and Norway. The Øresund bridge is part of an important transport corridor from Sweden to Europe, and also a vital part in the cross-border integration process across Øresund. This integration process is based on the collaboration between the regions in Zealand, Scania and Copenhagen Metropol and the towns of Malmö and Lund. The final fixed link across the Fehmarn Belt will be a tunnel with construction commencing in 2015 and it is expected to be completed by These large infrastructure investments are crucial to the whole STRING region's infrastructure project and essential to the establishment of a green transportation corridor from Sweden and Denmark to Northern Germany and Europe. Several factors can be used as the basis for the corridor. One is a close relationship between transportation needs and developments in trade. In addition, the industrial structure is an important factor for the development of transport demand, especially in relation to international transport and trade. The two large parts in trade are between trade of goods and services. Goods transport requires freight, but services only requires passenger transport. If we consider the relationship between export of goods and trade in general in Denmark, it is possible to get a general overview of the division between trade in goods and services. The calculation shows that there has been a growing percentage of services trade in relation to trade in goods (See Fig. 6.1). 96

97 Figure 6.1 Export of goods and services from Denmark Source: Statistic Denmark Figures shown in Fig. 6.1are based on value-based relationships, since services cannot be measured in tonnes. This division provides some trouble, as the value-based relationships will not necessarily follow the tonnes relationships. But it is the only way to get an overview on a general level of the relation between goods and services. During the entire period there is a smaller relative increase in services exports and relative decline in the export of goods. Another way to see trends in transport development is by an analysis of freight intensity. That is a measure of relations between the general growth in society in GNP per capita and growth in transport THE FREIGHT DEVELOPMENT OF THE THE ISLAND OF ZEALAND In the following sections we will look more generally at the freight transport development on the islands of Zealand, Lolland, Falster and Bornholm. The area of Zealand consists of two regions: The Capital Region of Denmark and Region Zealand. In this section these two regions will be treated together for an overview of the transport development in Zealand. The freight intensity is a well known important indicator for the transport sector's development. Freight intensity tells us how the relationship between changes in GDP and freight volume evolves, and thus about the trends. The calculation is based on the truck and marine data. It does not contain air and rail freight. The calculation contains no international transport, as these data are not available regionally. 97

98 Figure 6.2 Freight intensity on Zealand Source: Eurostat database and own calculation However, for international data for Denmark, it shows the same trend as the national freight data. The calculation shows a decreasing intensity of freight for all of Zealand. Although the freight intensity is calculated in tonnes of freight, there is no doubt about the development trend. The calculation points towards the same clear trend as Eurostat s own calculations for Denmark as we saw in chapter The total freight of road and maritime transport from Zealand Source: Eurostat database 98

99 Fig. 6.3 shows a clear decline in freight volume of road and maritime cargo areas. The figure does not include export and import transport, as this does not exist at regional level. Well over one quarter of the cargo has disappeared during the period of 11 years. The trend in transport development is therefore clear.there are three sources that deliver freight to Zealand. First, cargo from the business area within two regions in Denmark, and second, cargo from abroad to Denmark. Both of these sources load and unload cargo on Zealand. Third, transit cargo transported by road and rail through Denmark. In the following sections we will take a closer look at these issues. Figure 6.4 Modal split of transport to and from Zealand 2010 in tonnes Sources: Statistic Denmark Fig. 6.4 shows two modes of transport, with road freight transport clearly dominating, followed by sea transport. It is important to be aware of the fact that international road transport is not included in the calculation since this is not calculated as regional data. Similarly, transiting is not included in the results either. However, the data provide an excellent picture of the importance of the different modes of freight in tonnes. The data show that rail freight and air cargo are of very little importance THE MARITIME FREIGHT ON ZEALAND Both the Capital Region and Region Zealand have important ports, which are vital transport HUBs in connection with the establishment of a tunnel under the Fehmarn Belt and the associated large land-based infrastructure investment. 99

100 Figure 6.5 Major Sea ports in Zealand by tonnes of goods 2010 in tonnes Sources: Eurostat database There are, however, significant differences between the ports importance and function. As Fig. 6.5 shows, the oil port of Kalundborg is located near to the Statoil refinery and it is a port specializing in the transportation of oil. It is the largest port in terms of turnover in tonnes. The second largest is Rodby ferry port, followed by Copenhagen's harbour, which is Zealand s part of the joint Copenhagen -Malmö Port RAILWAY TRANSPORT ZEALAND For many years railway traffic has not played an essential role in the Danish transport system. The reason is the nature of the Danish industry and its link to the Danish economy. The industry has not been or is not dominated by the production and types of goods that traditionally use the railways. 100

101 Figure 6. 6 Railway freight on Zealand t.km Source: Statistics Denmark Fig. 6.6 clearly shows that there has been a decline in rail freight transport on Zealand. This is particularly true of loaded goods, which has decreased in Region Zealand from 2007, but from 2011 there has been a marked increase in unloaded goods in Region Zealand. The general trend is clear with a declining trend and in the last few years a stagnation. Figure 6.7 New high speed railway Copenhagen -Ringsted Source: Net Denmark 101

102 Due to the establishment of the Fehmarn link, the railway network is being enlarged. The railway can be used for passenger transport and rail freight goods. Rail Net Denmark is in the process of building a new double track railway between Copenhagen and Ringsted, near Køge (Zealand). The new railway is scheduled to open in It is the first railway in Denmark which can operate high-speed passenger trains up to 250 km/h. The new railway is a vital part of the new link between Copenhagen, Scandinavia, Germany and Europe. It will be finished in The railway will make it possible to increase passenger and freight traffic to Germany and further into Europe, but also to solve local railway traffic jam problems around Copenhagen. Figure 6.8 Railway, international, transit and Danish freight Source: Statistics Denmark As shown in Fig. 6.8, there has been a clear decline in national rail transport in Denmark. It is noteworthy that during the last two years, the national freight transport, which is at a low level, has seen a slight increase. The inland freight rail transport has, in 2010, reached the same levels as in 2007, but it is transporting the goods slightly further, which adds to the t.km figure. As pointed out in Fig. 6.8, transit traffic is increasing greatly. Here, the traffic travelling to and from Sweden over the Øresund bridge and continuing over the Great Belt bridge to Germany and Europe is a significant part of the transit traffic. Looking more specifically at the Danish railway transport in Denmark, it shows a decreasing trend. In addition, the number of freight trains on the Danish railway network has also decreased. 102

103 Figure 6.9 Train on Danish rail network Source: Statistic Denmark Fig. 6.9 shows a change from 2007 onwards, when the number of trains on the network started to rise again. This relationship is clearly determined by the increasing transit traffic on the Danish rail network. It is not possible to provide a regional breakdown of the foreign freight on the rail network of Denmark, because the Danish statistics do not offer this option THE ROAD FREIGHT ON ZEALAND As we saw previously in Fig. 6.4, the freight transported by road is a crucial part of the whole transportation system in Zealand. For international cargo loaded on Zealand, it is not possible to obtain regional data. However, there are international data for the whole of Denmark, and there is no indication that the trend would be different on Zealand. 103

104 6.10 National and international road freight Denmark Source: Eurostat database Fig shows that for many years, even before the crisis, there has been a decline in cargo volume in tonnes in general in Denmark. This means that the decline is not solely a crisis phenomenon. Although the crisis has influenced these data, the decline took place due to industrial structural changes. There are some ups and downs shown in the graph, but it is not necessary to pay too much attention to these fluctuations for each individual year. Instead, it is important to look at the general development trend.the question is whether there are different trends in the total cargo volume and the kilometres driven with the load. The graph shows t.km, which also includes international transport driven by t.km of goods from Denmark. Figure 6.11 Total road freight in Denmark in t.km Source: Statistic Denmark 104

105 There has to be a ruling development trend over the last period of 10 years. The decline starts in 2005, and therefore, it is not only the crisis that has affected the decline. However, during the period up to 2005 there was an increase in the t.km, which changes after 2005 to a slower pace, and then decreases. The calculation is based on the development of the loaded and unloaded cargo, and these data contain no transit freight through Denmark. So even though there has been a decline in t.km, there may be an increase in traffic in transit through Denmark THE DANISH TRUCK MARKET S SHARE AND COMPETITIVENESS Transport by truck has in recent years been in a competitive market where price competition has led to foreign lorries being more competitive than Danish registered lorries. This has been an issue that has had special importance for transport between Denmark and abroad. Also for transportation within Denmark it seems to have increased competition. In connection with cabotage transport, foreign registered lorries have the right to transport goods to Denmark and also to make inland transport. Their decision is based on an EU Regulation. This means that trucks from other EU countries have the right to run three journeys within 7 days, after unloading incoming goods by foreign company transport. In addition, it is possible to run a cabotage trip in Denmark, if you deliver a load in another EU country, for example in Sweden 37. Figure 6.12 Cobotage transport in Denmark Source: Statistic Denmark database 37 Based on paper from DI transport of 2. march

106 Figure 6.13 Capotage transport Denmark mill t.km Source: Statistics Denmark As shown in Figs and 6.13, cabotage transport has been increasing during the last years. It should be pointed out that some of the trucks may well be Danish owned, but registered abroad and with foreign drivers. The data can give a slightly misleading picture, but show that Danish transporters are in competition where flagging out of trucks is part of the competitive situation. International transport between countries is, however, not subject to regulation, instead making it completely free. Developments in transport by foreign owned lorries from Denmark also show an increase as the graph in Fig below shows. Figure 6.14 Foreign owned trucks/loaded goods in Denmark Source: Statistics Denmark, database 106

107 Figure 6.15 Foreign owned trucks transport work in Denmark mill. T.km Source: Statistic Denmark, database Figs and 6.15 clearly show that foreign company registered trucks transport an increasing amount of goods from Denmark to other countries. Looking at the overall international transport from Denmark, it is clear that foreign owned trucks have taken market shares from the Danish trucks. It is a very important fact that an increasing number of freight to and from abroad is carried on Danish lorries, but they are registered abroad and owned by Danish companies. This means that although they are foreign registered, they are under Danish ownership, and the main company is located in Denmark. Figure 6.16 Transports from Denmark by Danish and internationally owned trucks Sources. Statistic Denmark 107

108 As highlighted previously, a notable change has taken place between Danish and foreign trucks, as the lorries share of the freight market for international transport has increased. This ratio is, to a certain extent, based on the flagging out of Danish vehicles abroad, but also foreign trucks have a larger share of the Danish market. Figure 6.17 Danish owned trucks on (foreign registered trucks), registered per country 2010 Source: ITD calculation In 2012, a total of 3432 Danish vehicles were re-flagged to a third country. They are registered abroad, but are owned by Danish companies and often operated across Danish borders for international transport. The ITD border crossing counting showed that a total of 34 percent of all foreign-registered trucks crossing the Danish border are in fact, owned by Danish companies. This figure has increased from a reported 4 percent in 2005 to the current 34 percent in ROAD FREIGHT MARKET ON ZEALAND In the following sections we will look at the truck transportation market on Zealand. Here, it is not possible to separate regional international transport or transport by foreign-owned trucks. 108

109 Figure 6.18 Volume of freight on Zealand (loaded and unloaded) Source Eurostat, database and Statistics Denmark As Fig shows, there has been a decline in the number of tonnes of cargo loaded on Zealand and transported and unloaded elsewhere in Denmark. It is not possible to obtain figures for loading regional international total freight from Zealand. Figure 6.19 National road freight development by t.km on Zealand Source: Statistic Denmark Freight volumes from Zealand are not particularly dominant in the overall freight picture of Denmark. Of the total road freight volume in Denmark in 2011, only 26.4% comes from Zealand 38. If we look at the t.km for Zealand in Fig above, we are able to see that the national road transport is in decline. 38 Statistic Denmark, database and owen calculation 109

110 6.1.7 AIRPORTS IN ZEALAND The Copenhagen (Kastrup) Airport in Zealand is the main airport, not only for Denmark, but also for the southern part of Sweden, with the exception of the smaller Malmö Airport in Sturup. Copenhagen Airport (Kastrup) is the Øresund Region's only large international airport. In addition to Copenhagen, there is also a small airport in Roskilde, The Roskilde Airport, which is part of the Copenhagen Airport. The Copenhagen Airport is essential for businesses and tourism in the area, especially in relation to passenger transport, with its many international departures. In contrast to passenger numbers, Copenhagen airport is less significant in relation to cargo as shown in Fig below. Figure 6.20 Air freight to and from Copenhagen Airport Source: Eurostat database Calculations of air freight from Copenhagen Airport are only available from Until that time Copenhagen Airport did not separate airport cargo transported in and out of the airport by aircraft and road truck transport. Although not shown in the graph (Fig. 6.20), cargo was transported by aircraft before 2007 in Copenhagen, but they did not record this separately in the statistics. Fly freight at Copenhagen is extensive, and as the graph clearly shows, it has decreased in recent years. In the international context, Copenhagen Airport is a small airport in freight terms. In the following sections we will look at transportation trends in the individual regions on Zealand, and also by the transit traffic, which plays an important role in the traffic situation in Zealand in general. 6.2 THE CAPITAL REGION OF DENMARK The capital region is clearly the largest of Zealand's two regions. Region Zealand has 800,000 inhabitants and covers the area outside of the Capital Region of Denmark. The 110

111 Capital Region of Denmark includes Copenhagen city, Greater Copenhagen and North Zealand. The Capital Region has 1.7 million inhabitants as of The largest port in The Capital Region of Denmark is Copenhagen Harbour which is now merging with the port of Malmö and is named Copenhagen-Malmö Port. The port is in negotiations to be associated with the Port of Helsingborg, which is also a port on the Swedish side of Øresund. Elsinoer harbour is situated in the northern part of the region. It is an important ferry port for connections to Sweden. In addition to that, the Øresund Bridge, which connects Zealand with Scania, is important to the development of Copenhagen Airport. The airport is the central HUB for international traffic for both Zealand, Scania and southern Sweden. International flight connections are particularly important for business and tourism development in the Øresund Region. For a more general picture of the relationship between economic development and the development of freight we, once again, use freight intensity. Figure 6.21 Freight intensity in the Capital region Source: Statistic Denmark and oven calculation Freight intensity is calculated in tonnes of loaded goods and not in t.km. This is due to the lack of data for some years. The significance of that is not important as we show later. In addition, there are no railway goods and international freight transport by road in this calculation either. These data are not available at regional level. Therefore, the calculation should be seen more as a trend, rather than as exact figures. However, the trend is very clear, and there is a downward trend throughout the period. 111

112 Figure 6.22 Modal split, The Capital Region of Denmark 2010 in tonnes Source: Statistic Denmark The development of the transport structure of the Capital Region of Denmark shows that transport by road is the dominant mode of transport, with 59 percent of the total amount of goods. Rail and air cargo play an extremely limited role in relation to the quantity of goods. For air cargo, there may be other causes that are more significant for some industries than the figures directly specify. In the following sections we will take a look at the different modes in detail in order to point out trends, specializations and strengths PORT OF COPENHAGEN The Port of Copenhagen is a part of Copenhagen Malmö Port, located close to the city of Copenhagen. After the opening of the bridge to Sweden, the two ports in Malmö and Copenhagen in 2001 formed a joint company to strengthen port competition under new conditions. Copenhagen-Malmö Port was established. The port of Helsingborg on the Swedish side of Øresund is in substantive negotiations to enter the joint company, in order to establish a large common port company in the entire Øresund area. The Copenhagen part of the harbour is undergoing, like other ports in Europe, large territorial and functional changes. Parts of the port are being relocated to new areas, while new facilities and urban development are being moved to the older port areas. Fig below shows a decrease in freight transport by sea. There has been a sharp decline in freight volume from 1997 to Half of the quantity of goods in tonnes has disappeared, with the reduction taking place in the beginning of the period. As in other places, the economic crisis has meant a decrease in sea transportation. 112

113 6.23 Maritime transport of goods to and from the Port of Copenhagen Source: Eurostat database But clearly this is not the entire explanation for the decrease, and the crisis has only had a marginal effect on the change, which has taken place. Some significant developments, however, have taken place in maritime transport in Copenhagen, and these will be analysed in the following sections. Figure 6.24 Maritime freight goods to and from Copenhagen Port 2010 in tonnes Source: Eurostat database In Copenhagen harbour, terminal Prøvestenen (Fuel Island) is specially designed to house the largest group of cargo, liquid bulk goods. In addition, dry bulk goods make 113

114 up a large part of the cargo in Copenhagen Port and since 2004, these goods have also been allocated to the Prøvestenen terminal. The RoRo cargo is only a small part of the overall cargo volume. It is remarkable that large containers account for nearly a quarter of the quantity of goods in Copenhagen Port. Calculating the origin and destination of goods going in and out of Copenhagen generates an interesting picture, where regional Danish and German transport play an important role, and distance traffic is extremely specialized. Figure 6.25 Maritime transport to and from the Port of Copenhagen, and to and from Scandinavia and the Baltic region (2010) Country 1000 tonnes Types of Cargo Denmark Dry bulk goods 2. Liquid bulk goods 3. Large containers Sweden Large containers 2. Liquid bulk goods 3. Other cargo Germany Large containers 2. Liquid bulk goods Norway Dry bulk goods 2. Ro-Ro, mobile self-propelled units 3. Liquid bulk goods Latvia Dry bulk goods Poland Dry bulk goods Russian Federation: Baltic Sea (Gulf of Finland only) 4. Ro-Ro, mobile non-self-propelled units 2. Other cargo not elsewhere specified Liquid bulk goods 2. Dry bulk Finland Liquid bulk goods Lithuania Ro-Ro, mobile non-self-propelled units 2. Large container Estonia Other cargo not elsewhere specified Source: Eurostat database 114

115 As illustrated in Fig. 6.25, Denmark, Sweden, Norway and Germany are the largest operators on the Copenhagen Port. Of the Baltic countries, Latvia, together with Poland, are the largest customers on the port. It is worth remarking that Finland has little cargo freight in Copenhagen. For Finland and Russia, liquid bulk goods dominate. For Sweden, the containers and liquid bulk dominate. In Norway, it is clear that dry cargo dominates completely, followed by RoRo freight. For Latvia and Poland, dry bulk completely dominates the traffic. From Lithuania, Ro-Ro, mobile non-self-propelled units are clearly the major cargo. Estonia is completely dominated by the "other types of cargo". Beyond the Baltic Sea and the Kattegat, which surround the STRING regions transport area, there are some other notable countries that have significant cargo at the Port of Copenhagen. First and foremost, the United Kingdom, with 138,000 tonnes of annual cargo from Copenhagen. Second, Latin America is worth mentioning, in particular Cuba and Venezuela, with 125,000 tonnes and tonnes respectively. These figures are considerably more than Finland and the Baltic countries. Finally, Iran is noteworthy in terms of transport from Copenhagen, with approx. 80,000 tonnes a year. Ferry lines from Copenhagen port From the Port of Copenhagen there are daily departures by ferry to Oslo (Norway) for passengers, trucks and cars. Source: Port of Copenhagen Cruise ships The Copenhagen part of the port caters for cruise ships at Langelinie quay, situated close to the city of Copenhagen. 700,000 cruise passengers visit every year arriving in around 300 cruise ships. This part of the common port has specialized in cruise passengers. In this context, the Copenhagen (Kastrup) Airport is an important prerequisite to enable the reception of passengers from around the world to board the cruise ships THE PORT OF ELSINORE Elsinore is located in Northern Zealand, and from this town two ferry lines operate to Sweden. They both head for the neighbouring town of Helsingborg on the Swedish side. The harbour is entirely dominated by the ferry service to Sweden. Only trucks and semi-trucks transferred across the Øresund between Helsingborg and Elsinore. 115

116 Figure 6.26 Maritime freight, Port of Elsinore Source: Eurostat database As Fig shows, there has been a slight decline in transport volumes at Elsinore Harbour. The port is in keen competition with the Øresund Bridge for truck transport to and from Sweden. Figure 6.27 Maritime transport to and from Elsinore from Scandinavia and Baltic regions (2010) Country 1000 tons Types of cargo Sweden Ro-Ro, mobile self-propelled units Source: Eurostat database The only cargo transferred between Helsingborg and Elsinore is cars and trucks through the two shipping companies operating on the route of the two ports. Elsinore is a clear example of a ferry harbour ROAD TRANSPORT IN THE CAPITAL REGION OF DENMARK The figure on modal split (see Fig. 6.22) has already pointed out that truck traffic plays an important role in the total transportation picture in the Capital Region. It is obvious that the transport of goods by delivery vans is a significant part of the transport pattern in a city like Copenhagen, but this mode of transport is not a part of the following transport analysis. 116

117 Figure 6.28 National road freight loaded and unloaded at the Capital Region Source: Eurostat and Satistic Denmark, database The graph in Fig shows a decrease in the quantity of goods, which are loaded and unloaded on the Capital Region of Denmark. The graph draws attention to the fact that the decline in cargo volume occurred before the crisis of 2008, and is therefore not only a conjecture-induced decline, but a structural change, caused by structural transformation in the industry. The driving forces in these processes are the closing of industries, relocation of production to other countries and dematerialization of products. These developments have had an impact on the amount of cargo being transported. Figure 6.29 Road freight t.km The capital region Source: Statistic Denmark 117

118 1000 journeys Fig shows a clear decreasing trend, with large fluctuations, and for the last part a small increase in t.km has taken place. The increase in the past year was due to the island of Bornholm and Copenhagen city, where in the city of Copenhagen, the construction work has clearly affected the transport development. Figure 6.30 Numbers of journeys (trucks; The Capital Region) The Capital Region, journeys in Source: Statistic Denmark, As the graph points out (Fig. 6.30), there is a concomitant decrease in the number of trips by trucks running with declining freight volumes. Although the figure shows a period of a few years, it indicates that there is a correlation between cargo volume and number of vehicle trips International road freight in The Capital region to Sweden and Germany Source: Eurostat, database 118

119 As the chart shows in Fig. 6.31, traditionally mostly cargo loaded in The Capital Region has been transported to Germany. However, during the recent years there has been a decrease in this quantity. The freight from The Capital Region to Sweden has, in a short period, shown increases, but in the past year the numbers declined again. The graph shows goods loaded in The Capital Region, but does not include transit traffic, and therefore not necessarily the total transport volume between the region and the two countries. Transport Centre The Taastrup Transport Centre is located in the Capital Region 15 km from Copenhagen city, between Roskilde and Copenhagen, neighbouring the rail freight terminal in Taastrup. Like other centres it entails road transport companies, distribution and warehousing companies, which are established in the centre RAILWAY FREIGHT IN THE CAPITAL REGION OF DENMARK Rail freight departures in Zealand are only loaded from the Capital Regions Transport Centre, which is located in Taastrup between Copenhagen and Roskilde. It is the only terminal for transportation of rail freight from eastern Denmark. Figure Rail Freight loaded and unloaded at The Capital Region Sources. Statistics Denmark Høje Taastrup railway goods terminal Data on the rail freight are only available for this short time period (Fig. 6.32). However, it shows that t.km has increased slightly, starting from a low level. The terminal in Høje Taastrup is operated by DB Schenker Rail Scandinavia, which is the main operator in Taastrup, and it has been operating since DB Schenker Rail 119

120 Scandinavia is a transport firm, with 51 perecent belonging to DB Schenker Rail Deutschland GmbH and 49 percent to the Swedish rail freight company, Green Cargo. Both of these companies are the main operators on the Danish rail net. In 2011 the centre underwent a significant expansion with an eightfold increase from a modest level in the area and freight capacity. The terminal currently has a capacity of 3400 TEU ( 20-foot containers). The terminal also has a new railway track. In addition to the terminal in Høje Taastrup, there is also a railway freight terminal in Jutland in Taulov. 6.3 THE ØRESUND BRIDGE The Øresund Bridge, established in 2000, is the key link between Denmark and southern Sweden. It is 15.9 kilometers long in total. It consists of both a bridge between the artificial island Peberholm and Lernacken at Limhamn close to Malmö and a tunnel between Peberholm and Zealand. The bridge has two main functions, since it contains a double track railway and a highway. Besides the freight transport, it is an important prerequisite for cross border cooperation between the cities of Malmö in Scania and Copenhagen on the Zealand side. Figure 6.33 Annual truck traffic on the Øresund Bridge Source: The Øresund Bridge As Fig shows, there has been an increase in traffic between Sweden and Denmark since the bridge opened. This increase has been constant until the crisis in 2008, when there was a slight decrease, followed by a rise shortly after. There is no doubt that after the opening of the Fehmarn link, the bridge will once again gain importance for transit traffic, as a part of the traffic forecast has shown. However, it is unclear how large the numbers of trucks crossing the bridge will be after Today, only some of 120

121 1000 passengers the trucks in transit between Scania / Germany cross by the bridge/ ferry to Denmark. In 2011 there have totally been 739,000 transferred trucks per year from the ports of Scania (from Trelleborg, Helsingborg and Malmo to Germany) Fig, It is almost the same amount of trucks, which are transferred by ferry and bridge between Zealand and Scania (755,000). It is rather difficult to estimate how many of these trucks will cross the bridge and use the tunnel after It is depending on the driving/resting requirements, running km, the nature of the transport, costs and timesensitivity of the transports. Figure 6.34 Railway passenger transport on the Øresund bridge The Oresund Bridge Thousands of passengers Source: Statistic Denmark Railway operation of the bridge has two main objectives: freight transport to and from Denmark and transit traffic transferring to and from Germany via Denmark. In addition, personal transportation is of importance, and there are two main examples of this. First of all, the railway facilitates traffic from Copenhagen Airport to Scania and southern Sweden. Second, the railway line has a function for passenger transport between Malmö and Copenhagen, not least for commuters. The rising passenger transport has created capacity problems for the transport of rail freight. The transit traffic crossing the bridge to and from Sweden and on to Germany via the Øresund and Great Belt Bridge has continued to rise since the opening of the bridge.the strong traffic growth in the passenger area poses a capacity problem for the freight railway traffic. The maximum capacity is estimated to be 90 freight trains a day on the Øresund Bridge. In 2012, there were rail freight operators which had the right for up to 60 freight trains a day, but all transport rights were not exploited. The actual number of freight trains is considerably smaller than the operators right. It is about 25 rains a day, as shown in 121

122 Chapter A forecast for 2012 predicts a slight decrease to 23 trains a day. Looking at the current numbers of wagons in Trelleborg transferred from and to Germany, the amount is also decreasing. In 2010 it was approximately 42,800 wagons. The majority were to Sassnitz. If all those wagons, after the opening of the tunnel, should cross the Øresund Bridge, it would only result in 6 trains more a day. (Here I only count 14 wagons per train, which is very, very low estimated, but those are the current figures from Sweden, whereas the opposite way to Sweden there are 24 wagons. That amounts to an average of 19 wagons pr train). Rising numbers of passengers and long distance trains might be a problem, but from freight point of view only 38 percent of the train rights are used. Rail Net Denmark has declared the track as "congested infrastructure", which means that we now must prepare a plan for how the capacity of the track can be improved. At the same time, we need to investigate the measures that can be taken at the station at Copenhagen Airport to address the railway traffic jams. Transport capacity is an important issue, since the requirement for additional transport capacity is likely to rise after the opening of the Fehmarn link. 6.4 REGION ZEALAND FREIGHT TRANSPORT The region consists of Zealand outside the capital and the north of Zealand. However, there is an area closely adjacent to the capital, incorporating the areas of Køge and Greve, with strong logistics functions. Otherwise, there are large areas that are more agriculturally oriented. Figure 6.35 Freight intensity Region Zealand Source: Eurostat. database and own calculation 39 Data from Oresund.com statistics 122

123 There is also a major port in the region, located in the western part in Kalundborg. In the South part of the region there are two ferry ports. Gedser Port has connections to Rostock in Germany, and the other port, Rodby Ferry Port will be replaced by a tunnel to Germany in Fig above shows the freight intensity in the Zealand region. Freight intensity tells a lot about the nature of the growth in a geographic area in relation to production and consumption of goods. It is a clear correlation between changes in the quantity of goods and production and consumption in a society. The graph in Fig is based on road transport and maritime transport since there is no rail freight transport or cargo aircraft terminal based in the region. The figure shows that there is a constant decrease throughout the period, with the exception of a few years. Figure 6.36 Modal split Region Zealand 2010 in tonnes Source: Statistics Denmark As Fig points out, maritime cargo has the largest proportion of the transport volume in Region Zealand. This is, in particular, determined by the large Statoil harbour terminal in Kalundborg. Otherwise, the truck traffic is also extremely important for Region Zealand. There are no rail or air cargo terminals in the region. These kinds of goods are carried out from terminals in Copenhagen airport and Taastrup rail freight terminal. In the following sections, we will look at freight traffic patterns that characterize the development in Region Zealand PORT OF KØGE Køge city is located very centrally in terms of transport. Two important highways meet at this city, namely the E55 and E20 to the North of Copenhagen and further on to Sweden, and the E47 to southern Zealand and further on to Germany and Europe. In 123

124 addition, the highway E20 to Funen and to the western part of Denmark also joins the highway system at this point. An upcoming new railway line linking from the capital to the rest of the country and especially to Germany, will also be established near Køge. Køge Harbour is not particularly large, but its traffic is increasing. Furthermore, it operates the ferry connection to the Danish island of Bornholm in the Baltic Sea. Figure 6.37 Maritime freight, Port of Køge Source: Eurostat database As the chart in Fig shows, freight is increasing at Køge Harbour. There is a remarkable decrease within the same year as Bornholmer traffic moved a part of their traffic from Copenhagen port to Køge Port in autumn However, the general trend is an increase in the amount of goods. Figure 6.38 Modal split Port of Køge 2010 in tonnes Source: Eurostat database 124

125 Traffic on Køge Harbour is heavily dominated by dry bulk cargo. In total, it compries one third of all cargoes at the port coming from other Danish ports. Figure 6.39 Maritime transport to and from Køge from Scandinavia and the Baltic region (2010) Country 1000 tonnes Types of Cargo Denmark Dry bulk goods Germany Dry bulk goods 2. Ro-Ro, mobile self-propelled units 3. Ro-Ro, mobile non-self-propelled units 2. Other cargo Sweden Dry bulk goods 2. Liquid bulk goods 3. Other cargo not elsewhere specified Norway Other cargo not elsewhere specified Poland Dry bulk goods Finland 46 1.Dry bulk goods Latvia Dry bulk goods Estonia Dry bulk goods Russian Federation Dry bulk goods Lithuania 7 1. Dry bulk goods Source: Eurostat database PORT OF KALUNDBORG 2. Other cargo not elsewhere specified Kalundborg is a major port on the western part of Zealand, and it is a major port for special oil and coal products. Oil products are located in the special harbour for oil products. There is a ferry connection to Aarhus (second largest city in Denmark) and to the island of Samsø. 125

126 Figure 6.40 Maritime transport, Port of Kalundborg Source: Eurostat database As Fig shows, there is a decline in freight volumes from 2006, i.e. before the crisis began in Aside from the Kalundborg port, there is the self-harbour Statoil Oil Port. Figure Freight, Statoil Port, Kalundborg Source: Eurostat database and Statistics Denmark There has been a decline in cargo volume for the whole period (see Fig. 6.41) at the Statoil oil port. There have been some fluctuations throughout the period, but the trend is going towards a declining freight volume. 126

127 Figure 6.42 Modal split Port of Kalundborg 2010 in tonnes Source: Eurostat database As the chart shows in Fig. 6.42, the RoRo traffic dominates in Kalundborg (here the Statsoil Port is not included in the inventory). It is obvious that the traffic between Aarhus and Kalundborg is crucial for the port's traffic. In addition to ferry traffic, the port specializes in grain exports, and it is Zealand's largest port for grain products. Routs from Kalundborg Port: FRS Group: Departure for Aarhus 3 times a day with a crossing of 2h 40 mins Nordic Ferry Services: Departure to the island of Samsø with 2 or 3 crossings daily. Source: Kalundborg Port Fig below highlights that Kalundborg port transports very few goods within the STRING region's transportation area. Most goods are coming to and from Denmark and some from Germany. There is traffic to other ports outside the STRING region and Scandinavia. In particular dry bulk goods are transported to Spain, but also goods to Saudi Arabia and some to Egypt and Korea as well. In general, the port is focused on the Danish market via the ferry lines. 127

128 Figure 6.43 Maritime transport to and from Kalundborg from Scandinavia and the Baltic region. Country 1000 tonnes Types of cargo Denmark Ro-Ro, mobile self-propelled units 2..Ro-Ro, mobile non-self-propelled units 3. Dry bulk goods Germany Dry bulk goods Sweden 8 1. Dry bulk goods Estonia Other cargo not elsewhere specified Lithuania 7 1. Dry bulk goods Poland Dry bulk goods Finland 13 1 Dry bulk goods Norway Dry bulk goods, 2. Liquid bulk goods Russian Federation Dry bulk goods Latvia 2 1. Other cargo not elsewhere specified Source: Eurostat database PORT OF GEDSER The Gedser ferry port is located on the southern tip of the island of Falster and provides a parallel route to the future fixed link between Rodby on Lolland and Puttgarden. From Gedser Port there is one ferry route to Rostock, on Germany s Baltic coast. The route is served by Scanlines, which also serves the route between Rodby and Puttgarden. In recent years a buildup of the route has taken place. This applies to both the new wharf at the port and the introduction of new modern and larger ferries to Germany. There has been a corresponding modernization in Rostock with two new ferries, which doubles the capacity on the route. The crossing time is now 1 hour and 45 minutes between Gedser and Rostock. 128

129 Figure 6.44 Maritime freight Port of Gedser. Source: Eurostat database As we can see from Fig. 6.44, there has been a decrease in the freight volume from 2007, but this has changed and a new increase has taken place since From the summer of 2012 the new, larger ferries were added on the route between Gedser and Rostock. They can hold 98 trucks per trip. Due to these investments the capacity on the route has been increased by 100 percent. Figure 6.45 Trucks transfer on Gedser Rostock route Sources: Statistics Denmark, database Fig shows that the annual shipment of trucks was units in On this route only trucks are being transferred, and this does not include semi trailers. From Rostock 1151 tonnes of rail freight by modal transshipment are transported to Gedser. The transfer of semi trailers ended in 2002 after a sharp drop in the number of them 129

130 being transferred. In 2002, the year before the transshipment ended, the numbers were down to only RODBY FERRY PORT The ferry port of Rodby is the dominant route between Lolland/Zealand and Germany. The current ferry service will be replaced from 2021 with a permanent connection through a tunnel. The connection is a passenger car and truck route. There are no rail wagons transferred on the route today, and no passenger trains. This will change with the construction of the tunnel to Puttgarden in Germany. In connection with the establishment of the fixed link over Fehmarn, there will also be an upgrade of the railway connection between Rodby and Copenhagen. Figure 6.46 Maritime freight at Port of Rodby Source: Eurostat and Statistics Denmark The goods transport between Puttgarden and Rodby shows a constant upward trend (Fig. 6.46). This is the usual case, although elsewhere there has been a decrease in the quantity of goods in the aftermath of the crisis in On the route, trucks, buses and private cars are transferred. In addition, the route is used for transit traffic between Scandinavia and Europe, especially Germany. 130

131 Figure 6.47 Trucks by Rodby Port Source: Statistic Denmark The freight development is similar to the developments in the transport of freight by trucks. The ferry lines are not transporting semi trucks and railway wagons on the route. Truck traffic is directed towards the European market and both trucks with Danish and foreign number plates are based in Denmark. Foreign owned trucks are particularly important for transit traffic to and from Scandinavia. Transit is crucial for Sweden, where Swedish registered lorries accounted for 6 percent of all traffic goods on the route 40. For Rødby ferryline the total transitshare of trucks is 42 percent. In other words, it is a ferry line that is highly dependent on transit cargo 41. Shipping from Zealand ports The largest harbour is clearly the oil port in Kalundborg. Apart from this particular port, there are two major ports in Zealand. The largest one is the Rodby ferry port, followed by the Copenhagen harbour. A noteworthy fact is that there is no railway freight from Zealand ports. RoRo traffic is concentrated on the three ferry ports where trucks dominate. The ports are highly specialized in Zealand as a result of developments in business. This affects the quantity of goods at the port of Copenhagen, which has fallen significantly. The port has therefore opted for a completely different strategy, resulting in the cooperation with Malmö Port and Cruise Ships ROAD FREIGHT REGION ZEALAND Maritime freight is the dominant mode of transport in Region Zealand. But trucking is also significant, and can especially be important for local business logistics. Just as we have seen in other areas of Zealand, there has been a decrease in the transport vol- 40 Data from Trafikanalys Sweden 41 Based on Institut for transportstudier: Transittrafik med lastbil

132 ume for trucks in Region Zealand. It also reflects, as elsewhere, the change that has taken place in the business structure over the last number of years. Figure 6.48 National road freight region Zealand Source: Eurostat and Statistics Denmark From Fig it is evident that there has been a tendency for a decline in the national freight volume in Region Zealand. Although the crisis has had an effect, there is a clear trend throughout the years. A number of other geographical areas show there is an increase of freight again after the crisis in But the trend is quite clear that beyond the effects of the crisis, the decline in freight is also attributable to changes in business structure. Figure 6.49 Region Zealand road in t.km Source: Statistics Denmark It has often been discussed whether there has been a growth in t.km relative to the number of tonnes. The graph in Fig shows a general decreasing trend for trans- 132

133 port work, specifically from From 2010, however, there has been a small increase. It should be noted that the calculations relate to national transport, where this information is possible to obtain at regional level. Figure Number of truck journeys in Region Zealand Source: Statistic Denmark The question has also been, that even though the transport has decreased in tonnes of goods, there has been the same number or an increasing number of trucks on the roads. From the data, we can see that this is not the case. The number of trips by trucks follow freight volumes very accurately. Figure 6.51 Road Transport from Region Zealand to Germany Source: Eurostat database 133

134 The graph in Fig shows road freight traffic from Region Zealand to Germany, dividing the region transport into two parts. There is considerably more freight from the region's western and southern parts than from the region's eastern parts to Germany. It is also in those areas where most industrial production takes place. The figure illustrates the transport of goods from the region to places located in Germany. Corresponding figures from Zealand to Sweden are not available TRANSPORT CENTERS The Scandinavian Transport Centre is located at Køge, where the highway from the Copenhagen area and northern Zealand meets the highways from Funen and Jutland and the highway towards Germany. The highways E20, E47 and E55 all intersect. A little further north, the highway is divided towards Copenhagen and Sweden. It is located where the new railway from Ringsted and further on towards Germany was established. The distance to the Port of Køge is only 3 km. The Transport Center entails distribution, storage and transport. Looking at the overall development of truck freight in Zealand, as you can see on the map below (Fig below), the areas in the Western and Southern parts of Zealand have the largest cargo volume in the sub-regional breakdown, followed by the Copenhagen area outside the city. South and West Zealand are also the related largest areas and encompass a business structure that justifies the high freight data. Fig shows clearly that, on the one hand, the road transport sector is concentrated in an area round the Copenhagen city, and also in the peripheral areas in Region Zealand. On the other hand, the road freight is not so important in the northern part of Zealand, which has a rather different business structure. 134

135 Figure 6.52 Road freight on municipality level on Zealand RAILWAY AND AIR CARGO IN REGION ZEALAND There is neither railway freight nor fly cargo from Region Zealand via terminals in the region. Instead, the flight goods terminal at the nearby Copenhagen Airport and rail freight at a freight terminal in Taastrup are being used TRANSIT TRAFFIC FROM DENMARK TO AND FROM EUROPE Transit traffic through Denmark has in recent years increased significantly, due to the infrastructure development projects, where the number of railway freight trains have increased via the two bridges directly between Sweden and Germany. These bridges provide a faster and more stable traffic between Sweden and especially Germany. 135

136 Figure 6.53 Total and transit railway freight transport Source: Statistic Denmark Fig shows a marked increase in transit freight through Denmark, which affects the total freight transport in Denmark to a large extent. Without the increase in transit goods there would be a decline in rail freight. One of the major challenges when the fixed link between Denmark and Germany is established is to ensure that it gives opportunities for growth in this traffic. For road traffic, the establishment of the fixed link between Zealand (Denmark) and Scania (Sweden) provides better opportunities for faster transport between Scandinavia and Germany/Europe. The link has strengthened the transit route through Denmark, in addition to the business conditions, which fundamentally structure the freight flows. Figure 6.54 Annual road transport transit Source: Eurostat database 136

137 It is quite obvious that the transit traffic in recent years has been increasing (see Fig. 6.54). After the decline from 2007 to 2009, there has again been a period of increase in transit. Road transit traffic is quite decisively determined by both business conditions and business developments in neighbouring countries where the traffic mainly goes to. First and foremost, the transport routes and infrastructure enables transit traffic and price and time factors, which all are important variables for different types of transport. There is no doubt that changing infrastructure in the region will affect the transit traffic. If we look at the route for truck traffic, generally in Denmark it is the Danish - German border, which is the most used border crossing today. An investigation from 2007 shows that about 14 percent of international truck traffic crossing the Danish borders is transit to and from other countries. 42 Figure 6.55 Annual road freight transport by transit and international transport divided by dominant borders by trucks. Source: ITD calculation The road traffic between Denmark and abroad is dominated by traffic across the Danish-German countryside border. More than half of the border cross traffic is transported over this border. The Øresund and ferry connections to Germany play an important role in the overall traffic pattern. The data in Fig give an overall picture of transit traffic, and traffic generated in Denmark to other countries. It may be assumed that the number of trucks crossing the borders match the quantity of goods by truck across national borders. 42 Institut for Transportstudier, Transittrafik med lastbil

138 6.5 SUMMARY For Zealand, in general, there have been strong changes in transport volume. The trend in freight has been declining in terms of total freight. This also applies to freight intensity, which the survey indicates, although if there is an increase in living standards, then there is no corresponding increase in freight intensity. It also shows that the dominant ports, disregarding the special Statoil port, are Rodby Ferry Port, followed by the port of Copenhagen, Elsinore and Kalundborg ports. Rail freight traffic is completely dominated by the transit traffic to and from Sweden, while goods from Zealand play a very small role. The same applies to freight to and from Copenhagen Airport. Especially in the Capital Region of Denmark, truck transport plays an important role in the transport sector. For the Port of Copenhagen, there has been a decreasing amount of goods for a number of years. The containers here hold about a quarter of the quantity of goods. Truck traffic has also been declining. It is quite obvious that the Danish registered lorries have found it difficult to cope with international competition. This has resulted in the fact that a larger number of trucks have been reflagged to other countries. The result has also been an increase in cabotage transport in Denmark by foreign trucks. However, there has in recent years been a slight increase in rail traffic, and from a general view of the volume of transport, railway freight plays a very small role. There are four important border crossing points of transport: 2 border crossing points to Sweden, and 2 ports to Germany. They are a crucial element in the transport structure in Zealand. For the ports of traffic between Germany and Denmark, there has been a growing freight traffic, such as in both Gedser and Rodby ferry routes. Across the Øresund to Sweden, we have seen an increase in freight traffic via the Øresund Bridge, while there has been a slight decline in freight volume on Elsinore ferry routes. To sum up, transit traffic has been increasing, while the cargo loaded on Zealand has been decreasing. Danish transport companies have lost market shares, both in traffic out of Denmark and by cabotage transport in Denmark. 138

139 139

140 CHAPTER 7 FREIGHT TRANSPORT IN REGION SCANIA IN SWEDEN 7.1 GENERAL FREIGHT DEVELOPMENT IN SWEDEN Scania is the Swedish part of the STRING region, and it is a region of Sweden. The region has 1.2 million inhabitants within 3 major cities. The largest city is Malmö with approx. 302,835 inhabitants; Lund has 111,666, and Helsingborg has 130,626. The distance between the centre of Malmö and the centre of Lund is only 18.5 km. Scania has, in transport terms, a special position in Sweden. The main route for important traffic to Germany and Denmark passes through Scania. There are major ports that connect Sweden with key ports on the German Baltic coast. In addition to the transit traffic, this route also generates traffic from the businesses in Scania itself. The bridge to Denmark starts from Scania, and connects to Copenhagen, and in particular to Copenhagen (Kastrup) Airport. As a result, a close cross-border cooperation has developed between the 3 regions, Scania and two on Zealand. Both ports on the Øresund coast line, and the two ports on the south coast play an important role in the entire transport system in Scania. They are ports to Europe and Germany, as well as to the Baltic countries. Looking in general at Sweden's external trade it is an important source of transportation and logistics. The trade can be divided into goods and services.where goods create freight transport, services mainly provide passengers. But goods also depend on personal transport. However, it is not relevant in this context. Fig. 7.1 shows that while services in 1997 were at 22% in value of the total imports and exports in Sweden, this figure increased in 2011 to 27%. Although there is a strong increase, the progress is not as distinct as in Denmark, where service exports in 2011 were up to 37.4%. It is therefore crucial to highlight that the Swedish economy is somewhat different in composition to the Danish. The state characterizes the whole transport patterns. 140

141 Figure 7.1 Trade in goods and services in Sweden as percentage of total 43 Source: SCB. Sweden As we have seen in connection with other national inventories, Sweden also shows a decrease in freight intensity (see Fig. 7.2). There is a steady decline throughout the period. It shows that Sweden is experiencing a transition where dematerialisation is reflected as a decrease in the amount of goods relative to GDP increases. Figure 7.2 Freight intensity in Sweden from Source: Eurostat and oven calculation 43 Mill. SEK current prices 141

142 The central logistic issues show the relationship between different modes of transport involved. The modal split says a lot about the whole transport structure composition. Figure 7.3 Modal split Sweden 2010 in tonnes Source: Eurostat database In this study international transport has been calculated, which shows that trucking is a significant part of the transport system in Sweden, but it is in contrast to Denmark. In Sweden, rail freight traffic is also an important part of the transport system, and thereby also more like the transport system in Germany. In Sweden, it is the ratio on the national level, between road and rail transport, which is interesting. The sea and air transport is not included in the following calculation which shows the development over time (see Fig. 7.4). Figure 7.4 Modalsplit between national road and railway freight in Sweden Source: Eurostat database 142

143 Looking at Fig. 7.4, it is interesting to note that the national rail transport during the last few years has taken some market share from road transport. It shows that rail transport is an important factor in Sweden's national freight transport system, based on the Swedish business structure and the size of the country. In general, there has been a decline in freight intensity in Sweden.The question is, if there is a similar trend in Scania, which has a different business structure. Figure 7.5 Freight intensity in Scania Source: SCB Sweden and trafikanalys, own calculation It is only possible to get regional GDP on regional level up to 2009 in Sweden. The calculation provided in Fig. 7.5 is based on road and sea transport from ports in Scania, as rail data is not available for NUTS 3 level in Sweden 44. The calculation is based on tonnes, as maritime transport is not given in t.km. The graph in Fig. 7.5 shows, with slight changes, a constant decline in freight intensity in Scania. The entire division between different cargo types is mainly between maritime freight and road. For Scania, it is not possible to provide regional calculations of rail freight. 44 Nomenclature of Territorial Units for Statistics 143

144 Figure 7.6 The division between road and maritime freight in Scania 2010 in tonnes Source: Eurostat database 7.2 MARITIME TRANSPORT FROM SCANIA The ports in Scania are crucial for transport development, and have traditionally played a significant role. They also play a role in southern Sweden s access to the European market. Maritime transport involves the transfer of trucks, and to a large extent the transfer of trucks for redirection of transport, especially through the German Baltic ports. Figure 7.7 Maritime transport to and from Scania Source: Eurostat. Database 144

145 The calculation in Fig. 7.7 is based on major ports in Scania 45. While there has generally been an increase in freight development in Sweden, excluding the crisis years, there has been a more constant development in ports in Scania. The freight volume at major ports is in general only slightly larger than it was in There is no doubt that behind this development is the opening of the bridge to Denmark, which affects the shipping volume, but not necessarily the total freight volume. Figure 7.8 Major ports in Scania 2010 freight in tonnes Source: Eurostat database PORT OF TRELLEBORG The Port of Trelleborg is the largest port in Scania, based on the quantity of transport in tonnes. The ferry connections to Germany (Sassnitz, Rostock and Travemünde) completely dominate the harbour. There is also a ferry connection to Poland. The port of Trelleborg is a specialized ferry port. Fig. 7.9 shows, until the crisis in 2008, a constant increase in the amount of goods being transported from Trelleborg port. Again in 2010, an increase began after the decline in Trelleborg, Malmo, Helsingborg and Ystad 145

146 Figure 7.9 Maritime freight to and from theport of Trelleborg Source: Eurostat database and SCB Looking at the total freight volume by modal split, we can see a clear modal picture for the transport through the port of Trelleborg (see Fig. 7.10). Figure 7.10 Port of Trelleborg, types of transport 2010 in tonnes Source: Eurostat database As Fig shows, the Port of Trelleborg is dominated fully by RoRo traffic, in particular road freight traffic. Of the total freight volume, 85.1 percent was transferred by 146

147 truck or semi trailers, while 14.8% was transferred by railway wagons from Trelleborg in The number of units of rail vehicles declined by 15 percent between 2010 and Figure 7.11Types of cargo to and from Trelleborg Country 1000 tonnes Types of cargo Germany Ro-Ro, mobile self-propelled units 2. Ro-Ro, mobile non-self-propelled units Poland Ro-Ro, mobile self-propelled unit 2. Ro-Ro, mobile non-self-propelled units 3. Dry bulk goods Denmark 9 1. Liquid bulk goods Dry bulk goods Finland 2 1. Liquid bulk goods Source: Eurostat database Relation between trucks and railway freight Trucks 85.1% Railway freight 14.8% Source: Trafikanalys Sweden, special calculation Trucks dominate transport to Germany and Poland. Moreover, it is worth noting that there is no traffic to and from Trelleborg to the Baltic countries. For Germany, truck transport clearly dominates. The port of Trelleborg is a specialized ferry port for traffic to Germany, and to a lesser extent to Poland. Denmark and Finland have no significant traffic to Trelleborg. As a result of this specialization, the port of Scania will be most exposed if the transportation structures change as a result of new infrastructure investment. Also in Trelleborg they have planned new investments in the environment and to strengthen the port s competitive position through new constructions in the port and access roads. 46 Trafikanalys, Godstransport Svenske havne Tabell 4 B 47 Liquid bulk cargoes include wine, vegetable and non-vegetable oils, fruit juices, cleaning solutions, nonhazardous chemicals and latex among others. 48 Calculations are based on traffic to Germany. For Poland traffic, it is not possible to specify between trucks and trains. Including Poland traffic the rail freight will increase slightly. As earlier calculations show this represented about a third of the goods to Poland. 147

148 Ferry lines to and from Trelleborg There are a total of 13 RoPax-ferries in the harbor of Trelleborg, and are divided into the following ferry companies and lines: 1. Trelleborg - Rostock Scanlines 19 weekly departures, 6 hours crossing 2. Trelleborg - Rostock TT-Line 20 weekly departures, 5 hours 30 mins 3. Trelleborg-Travemünde (Luebeck) TT - line, 3 daily departures, 7 hours crossing 4. Trelleborg-Sassnitz Scanlines, 5 daily departures, 4 hours crossing 5. Trelleborg - Swinoujscie, UNITY line once a day Source: Port of Trelleborg There are a total of 13 ferries operating from Trelleborg. Rostock line is served by two ferry companies with 39 weekly departures. In other words, there is a very intensive ferry traffic from Trelleborg through the Baltic Sea. Figure 7.12 Truck freight by ports of Trelleborg 2011 in tonnes Source: Trafikanalys Sweden Goods are mainly distributed from Trelleborg to two other ports, Rostock and Travemünde (Lübeck). Trelleborg is clearly Sweden s biggest ferry port, and an important connection from Sweden, especially to Europe and to the German market. During the period from 2000 to 2011, Rostock had significant transport increases, but with a stagnation after While Travemünde has stagnated from 2002 and the quantity of goods transported from Sassnitz has decreased, particularly after

149 Figure 7.13 Number of trucks to Trelleborg Port by Baltics ports 2011 (per 1000 trucks) Source: Trafikanalys Sweden In addition to traffic to Germany, there is also a ferry to Swinoujscie in Poland. Swinoujscie, Annual trucks, ,900 Source: Trafikanalys, Sweden From the figures in Fig. 7.13, it is clear that traffic from Trelleborg to Germany is dominant. The total number of trucks from Trelleborg to and from Germany was in units. The graph also shows that since 2005, the Port of Rostock has been the largest port for truck traffic from Trelleborg. At the same time Travemünde lost a lot of traffic, with a slight increase in the last years. The development, however, does not follow trends in freight volume. From 2000 to 2011 there has been an increase of 22% for trucks on routes to Germany with a peak in 2007, while during the same period, there has only been an increase in freight volumes from Trelleborg to Germany of approximately 3 percent. This means that the cargo has shifted mode of transport to trucks PORT OF YSTAD The Port of Ystad is like Trelleborg located on the Swedish Baltic coast, however, it is considerably smaller than Trelleborg. Much of the traffic is to Poland and to the Danish island of Bornholm, where the port is the most central port of traffic. As we have seen with the German ferry ports, and the ports of Trelleborg and Gedser in Denmark, new harbour facilities are being built at Ystad. They plan to construct a new quay in Ystad, and modernise the existing plants. 149

150 Figure 7.14 Maritime transport to and from Port of Ystad Source: Eurostat, database The data in Fig clearly show a rising trend, although there has been a decrease following the crisis in Looking at the cargo composition from Ystad port, it shows a strong specialization (see Fig below). Figure 7.15 Port of Ystad, types of transport 2011 in tonnes Source: Eurostat database As Fig shows, the Port of Ystad is dominated fully by RoRo traffic and, in particular, by self-proplelled units. The term RoRo here includes trucks and train wagons. Moreover, Ystad dominates as a ferry port. 150

151 Figure 7.16 Types of goods to and from Ystad port (Scandinvia and Baltic region countries) Country 1000 tonnes Types of goods Poland Ro-Ro, mobile self-propelled units 2. Ro-Ro, mobile non-self-propelled units 3. Dry bulk goods Denmark Ro-Ro, mobile self-propelled units 2. Ro-Ro, mobile non-self-propelled units 3. Other cargo not elsewhere specified Germany 76 1 Other cargo not elsewhere specified 2. Dry bulk goods Norway 18 1.Dry bulk goods 2. Other cargo not elsewhere specified Latvia Other cargo not elsewhere specified 2. Dry bulk goods Estonia 3 Other cargo not elsewhere specified Russian Federation 2 Other cargo not elsewhere specified Source: Eurostat database Truck traffic to Poland dominates the freight volumes with annual trucks. However, in terms of the number of trucks, traffic to Poland is slightly smaller than traffic from Trelleborg. It is noteworthy that the containers do not play a role in traffic to and from Ystad. The truck transport is, in freight terms, the most important for the port of Ystad. Relation between trucks and railway on Port of Ystad Trucks 86.8% Railway 13.2% Source: Trafikanalys, Sweden 151

152 Traffic routes from Port of Ystad Ystad- Swinoujscie: Unityline 14 weekly departures, crossing 6 hours and 30 minutes Ystad- Swinoujscie: Polferries: Departures weekly, crossing 6 hours Ystad Rønne: Bornholmer Ferry 8 daily departures, crossing 1 hour 20 minutes Source: Port of Ystad and ferry lines PORT OF HELSINGBORG The port is located on the Swedish coast along Øresund, very central to the highway system. European route E47 is a highway going from Lübeck in Germany via Copenhagen in Denmark to Helsingborg, Sweden. And the combination of the higway E4/E6, and the railway system give Helsingborg a special location for transport to and from Sweden. The Port of Helsingborg is a key port for the ferry to Denmark. The establishment of the bridge between Sweden and Denmark in 2000 has clearly impacted traffic growth in Helsingborg port. Helsingborg, however, unlike its Danish sister city Elsinore on the other side of Øresund, has a lot of traffic to other ports, especially in Germany. There are only 4 kilometers between the two cities on both sides of the Øresund. Figure 7.17 Maritime freight to and from port of Helsingborg Source: Eurostat database Fig shows a decrease in the volume of goods to and from Helsingborg. The volume of freight in 2010 was the same as in Here, the ferry to Elsinore plays a crucial role in the reason for the decrease. 152

153 Figure 7.18 Types of goods at Port of Helsingborg 2011 in tonnes Source: Eurostat database Fig shows that RoRo goods dominate, but also large containers account for a large proportion of the goods, as opposed to the ports on the Øresund coast of Scania. The data show that Helsingborg has a slightly different transport-related function than the ports on the south coast. Denmark is the primary destination of goods from the Port of Helsingborg, with 60 percent of the total amount of goods being transported here. The second largest destination is the freight to Germany, with 11 percent of the total amount of goods. The largest type of cargo to Germany is large containers. Besides the STRING and Baltic countries, a large amount of goods is transported to Belgium and Holland, and in particular to the ports of Antwerp (Belgium) and Rotterdam (Holland). 153

154 Figure 7.19 Maritime transport to and from Helsingborg port to STRING and the Baltic region, 2011 Country 1000 tons Types of cargo Denmark Ro-Ro, mobile self-propelled units 2. Large containers 3. Ro-Ro, mobile non-self-propelled units Germany Large containers 2. Ro-Ro, mobile non-self-propelled units 3. Dry bulk goods 4. Ro-Ro, mobile self-propelled units Finland Liquid bulk goods 2. Dry bulk goods Norway Dry bulk goods 2. Liquid bulk goods Estonia Other cargo not elsewhere specified Russian Dry bulk goods Latvia Other cargo not elsewhere specified Lithuania Dry bulk goods Poland Dry bulk goods Source: Eurostat database Railway freight routes from Helsingborg To and from the inter modal terminal in Helsingborg, there are seven daily rail shuttles to other places in Sweden. There are routes to: Green Cargo: Stockholm, Älmhult, Göteborg, Hallsberg, Åhus, Skellefteå Intercontainer : Västerås, Göteborg TM Rail: Örebro Source: Port of Helsingborg 154

155 From Helsingborg, there are ferry departures to: Travemünde/Helsingborg: SOL, 6 weekly Travemünde/Helsingborg: TT line, once a week Elsinore / Helsingborg : Scanlines and HH lines: Constantly crossing every 15 minutes. Source: Port of Helsingborg and ferry lines PORT OF MALMÖ The Port of Malmö is part of the combined Copenhagen / Malmö harbour. It has in recent years undergone a rapid development, with increasing freight volume and development of the port's specialization, including the establishment of a new terminal facility at the Port. Figure 7.20 Maritime freight, Port of Malmö Source: Eurostat, database Like other ports discussed previously, Malmö Port has had a positive trend in cargo volume, with the exception of the years following the crisis in As a result of the crisis Malmö port showed a decline in freight volume, which has now been reversed. It is clear that the oil terminal in Malmö accounts for a large part of the goods in tonnes at the port. 155

156 Figure 7.21 Types of goods to and from Port of Malmö 2010 in tonnes Source: Eurostat database It is quite remarkable that liquid bulk has such a large share of freight in Malmö port. This is one of the main differences between this port and the other Scania ports. However, RoRo goods also make up a large part of the port's cargo volume. In contrast, large containers are of very little importance for the harbour freight. The traffic connection between other ports is shown in Fig below. The figure shows that cargo volume and traffic to and from Malmö is characteristic of the major oil port. For Denmark, Russia, Norway, Finland and Latvia, liquid bulk goods dominate. For Poland it is dry bulk goods and for Germany it is Ro-Ro, mobile selfpropelled units. 156

157 Figure 7.22 Types of goods to and from Malmö Port, Scandinavia and Baltic region countries Country 1000 tonnes Type of cargo Germany Ro-Ro, mobile self-propelled units 2. Ro-Ro, mobile non-self-propelled units 3. Large containers Denmark Liquid bulk goods Federa- Russian tion Liquid bulk goods 2. Ro-Ro, mobile self-propelled units Latvia Liquid bulk goods Finland Liquid bulk goods 2. Ro-Ro, mobile self-propelled units Estonia Ro-Ro, mobile self-propelled units Poland Dry bulk goods Norway Liquid bulk goods Lithuania Dry bulk goods Source: Eurostat database Ferry Routes from port of Malmö Malmö/ travemünde: Finnline/NordöLink: Three ro-pax ferries with a capacity of up to 160 trucks / trailers. Up to 3 departures in each direction a day. Crossing 8 hours 30 minutes. Source: Port of Malmö and ferry lines Malmö Port has a special position in Scania, as it is both a part of the common Copenhagen Malmö Port (CMP), and a major oil port. Moreover, it shows a positive trend in freight volume. CMP invested heavily in the development of the port of Malmö and the expansion of the North Harbour in Malmö was completed in The investment has resulted in the company being able to handle five times as much cargo as before. There is a development planned for the North Harbour area in Malmö. The goal is to 157

158 establish the Malmö Northern Harbour Business Park to attract other businesses in areas such as manufacturing, processing and logistics services. Malmö Port specializes in the import of cars and a report shows approx. 419,000 new cars were imported in This is an increase of 30%, compared to The value of the imported cars increased by 24% from 85 million Swedish kronor in 2010 to 105 million Swedish kronor in During the last year Honda and Subaru began to use Malmö for their car distribution, and CMP expects now that the volume will continue to increase in Two more Asian brands have shown great interest in establishing themselves in the port MALMÖ AIRPORT Malmö airport is situated 28 kilometers east of Malmö and is the only major airport in Scania. It lies very close to Copenhagen Airport and is therefore in competition with the routes from Copenhagen. There are very few international routes from Malmö Airport. Over the years the development of the cargo areas have been even less positive. Although, the airport has been under the influence of the crisis, similar to other transport areas. Figure 7.23 Mail and freight to and from Malmö Airport Source: Trafikanalys and SIKA As Fig shows, there is an increase in the total freight volume from Sturup, Malmö airport in the period up to 2007, and then there is a marked decrease. However, during recent years the level has revived itself somewhat. But, the level is not yet up to the level of 2007, when cargo volume topped. For mail volumes the whole period shows a declining volume of mail. 49 Source: Copenhagen Malmo Port 158

159 7.4. ROAD FREIGHT SCANIA Truck development is a key issue for Scania. From Scania a number of ferry lines depart to Germany, which carry a significant amount of trucks. In addition to the international traffic, Scania also generates a lot of truck traffic. For Sweden in general, the total amount of road freight increased up until the crisis in 2008, as Fig below shows in t.km. Figure 7.24 Road freight in Sweden by t.km Source: Trafikanalys As can be clearly seen from the graph (Fig. 7.24), there has been an increase in freight in t.km in Sweden in general. This clearly shows the industrial structure implemented in Sweden, where industrial production has a considerably stronger position than in the neighbouring country of Denmark. Fig belows shows that the quantity of truck goods in Sweden increases significantly up to the crisis, then decreases after 2008, and once again it increases.this is the general trend in Sweden as in others countries. 159

160 Figure 7.25 Road freight Sweden tonnes of goods Source: Eurostat database The development of freight on the road in Scania shows a slightly different picture than the general development in Sweden. It is clear that Scania has a different business structure than the rest of Sweden in general. Figure 7.26 National road freight Scania Source: Trafikanalys Sweden Fig shows that the freight development in Scania has stagnated, with a tendency towards a slight decline in quantity. In this calculation there are no transit goods, but only goods loaded and unloaded in Scania. Thus, the quantity of goods in 2011 was slightly less than an equivalent amount of goods in 2000, ly 1 million tonnes less. This 160

161 figure refers to national freight loaded and unloaded in Scania. Looking at developments in t.km for Scania, a slightly different image appears as Fig shows. Figure 7.27 Road freight Scania t.km Source: Eurostat database Fig shows clearly that in Scania there has been a rise in transport work in terms of t.km up until 2008, but there is a decrease from This decrease is in t.km, which means that the goods until 2008 were transported further per tonnes. Figure 7.28 International road freight from Scania, Swedish trucks Source: Trafikanalys Sweden 161

162 The graph shows the national road transport, but international transport is not included in the calculation, which instead is given in Fig above Fig shows a decrease in international goods traffic departing from Sweden and operated on Swedish trucks. Here, it should be noted that traffic operated on Swedish trucks from Sweden is a small part of the international truck traffic. The graph shows how much freight is transported internationally on Swedish trucks. In addition, the figure shows that the Swedish truck transport in tonnes has decreased. Another issue is the development of the types of transport, where the trucks are in competition with other modes of transport. The data show that there is an increase in the large and heavy truck transports from Sweden generally. Figure 7.29 Numbers of kilometres run by trucks in Sweden Sources : Trafikanalys, Sweden Fig shows a decrease in the mileage for the group of trucks between 16 and 26 tonnes in total weight in particular. However, heavy trucks show an increase, and this means that lorries over 26 tonnes clearly have the largest mileage in terms of number of kilometres. Looking in general at the data on truck mileage in Sweden, they show an overall increase. 162

163 Figure 7.30 Mill km for Swedish trucks on Swedish roads Source: Trafikanalys The graph in Fig shows how many kilometres the trucks run each year in Sweden. The graph also includes smaller trucks under 3.5 tonnes. It shows that in general for Sweden there is a growing number of trucks on the roads, and together with the previous graph, the traffic increase is mainly due to the number of large trucks in operation. 7.5 SWEDISH TRUCK TRANSPORT AND INTERNATIONAL COMPETITION There is no doubt that parts of the transport sector are in free competition, particularly due to globalization, which has been subject to increasing competition. There is competition between different modes of transport, and also within each mode increasing competition is evident, especially with respect to cost parameters. In relation to road transport, the increase in competition is seen particularly in connection with the conditions of international transport, where there are no regulations that protect the national transport operators. Just as we saw in Denmark, Swedish trucks are in strong international competition to transport goods internationally. This is clearly indicated in the graph in Fig below. 163

164 Figure 7.31 International road transport from Sweden (divided into Swedish and foreign trucks) Source: Trafikanalys Sweden. Fig shows the development of Swedish owned trucks as part of the international transport. In percentage terms Swedish trucks have 24 percent share of the international transport from Sweden to abroad. This is in contrast to Denmark, where Danish owned trucks have a 34 percent share of the international transport. The Swedish trucks have a weaker position on the international market than the Danish. Figure 7.32 Cabotage transport in Sweden Source: Trafikanalys, Sweden 164

165 There are differences in the competitive situation in international transport to and from Sweden, and for cabotage driving in Sweden. As we have seen before, cabotage transport is when foreign transport trucks take Swedish freight from one point in Sweden to another point in Sweden. These foreign trucks undertake cross-border transport tasks in Sweden. Cabotage transport still only transport a small part of the volume of goods in Sweden. In 2010, it was approximately 3.2 percent of domestic traffic in t.km, which was run in cabotage driving. That said, the proportion has risen from 1.1 percent in In contrast to Denmark, Swedish statistics do not provide a breakdown of the number of foreign trucks owned by Swedish transport companies (vehicles which are re-flagged to a third country), located abroad but operating in Sweden with international transport. 7.6 THE STRUCTURE OF THE INTERNATIONAL TRANSPORT IN SCANIA Scania is strongly dominated by transit and transport across the 5 major border crossing points, where transport routes continue on to Germany and Denmark. Fig shows a breakdown of transport routes between two transitions to Denmark and two to Germany. Figure 7.33 Truck traffic between Scania and Germany/Denmark by border points. Source: Trafikanalys Sweden Of the total number of trucks passing the border from Scania in 2001, shortly after the opening of the bridge, 42.4 percent of them travelled from Scania to Denmark. By 2011 this percentage had risen to 46.7 percent. This means that the traffic to and from Denmark has increased more relative to German traffic from Scania. However, it is not 165

166 possible to determine from Fig whether the traffic is transit goods across Zealand travelleing further into Germany or whether the transport is destinated for Denmark. Figure 7.34 Percentage of trucks between Denmark/Germany by cross border points in Scania Source: Trafikanalys Sweden Fig shows that in 2012 there were more trucks taking the ferry crossing from Malmö/Trelleborg than over the Danish/Swedish border. The amount of traffic to Denmark continuing onwards to Germany is not reflected in this graph. The interesting thing here is that there are more trucks travelling via the ferry to Germany from Scania, than over the short distance by crossing the bridge or the very short ferry route between Helsingborg and Elsinore. 7.7 RAILWAY FREIGHT SCANIA Rail traffic has traditionally played an important role in logistics and transport in Sweden. The reason for this is clear: the Swedish economic structure, which has produced significantly more heavy goods than other economies. For example, the transport of ore in the northern part of Sweden has been of particular importance. Disregarding this part of the rail traffic, there is still a business structure in Sweden that demands for more rail freight transport than in Denmark. In addition, the geographical layout of Sweden plays an important role in the transport structure, given that Sweden is so widespread geographically. 166

167 Figure 7.35 National and international railway transport in Sweden Source: Eurostat database Figure 7.36 National and International railway Sweden t.km Source: Eurostat database Figs and 7.36 show that, on the one hand, the national railway transport is important for Sweden, and the transport figures are increasing. On the other hand, the international transport has stagnated throughout the period (in t.km). Since the quantity of goods in Sweden during the same period has been increasing, it means that in relative terms rail freight has lost market shares in international traffic, measured in t.km. This is also confirmed by the map provided in Fig. 7.37, which shows the number of transferred wagons from Trelleborg. 167

168 There is no calculation on a regional level of rail traffic in Sweden. But there are, in contrast, calculations of freight rail traffic across borders from Sweden. For Scania, the important rail crossing points for trailers are the bridge and Trelleborg and Ystad ports. Figure 7.37 The main transportation system for rail through Scania to STRING Source: Trafikverket Sweden Fig shows an overview of the railway system in Scania. There are three railway crossings from Scania: the bridge to Zealand, from Trelleborg to Germany, and outside the STRING region from both Ystad and Trelleborg ports to Poland. The Øresund Bridge opened in 2000 and since then, traffic has increased, especially in the railway sector, where the growing person traffic limits the opportunity for freight transport over the bridge. 168