WEST MED MOTORWAYS OF THE SEA MASTER PLAN

Transcription

1 Ministero delle Infrastrutture e dei Trasporti RINA Services S.p.A TLS Europe S.r.l. Gruppo CLAS S.r.l. 30 November 2010 WEST MED MOTORWAYS OF THE SEA MASTER PLAN Co-financed by the European Commission Directorate-General for Mobility and Transport (DG MOVE)

2 SUMMARY 1 INTRODUCTION Objective and approach followed to develop the study METHODOLOGY Analysis on transport demand (Italy) Flows between Italy and Spain Flows between Italy and France Import/Export trade analysis between Italy and Malta Flows with countries on the Mediterranean s South Coastlines Flows in Transit Analysis on transport demand (France) Potential traffic identified in the study area It is also necessary to understand the structure of goods flows Analysis on transport demand (Spain) Spain Italy Transport Demand Spain - France Transport Demand Spain Malta Transport Demand Analysis on transport demand (Malta) MOTORWAYS OF THE SEA REQUISITES Historical evolution of the concept of MoS and future trends Evolution of the concept and minimum requirements that characterise the MoS Other requisites coming from the development of the MoS concept Future Trends EU Commission projects for the developments of MoS Intervention actions and levels for the development of the MoS The context of the MoS MOTORWAYS OF THE SEA LINES IN THE WESTERN MEDITERRANEAN MoS lines from and to Italian ports analysis Analysis of lines from/to Spanish ports Analysis of lines from/to Maltese ports IDENTIFYING PORT CLUSTERS Identifying Italian port clusters Possible Spanish port clusters Possible French port clusters Possible Maltese port cluster PROPOSALS RECEIVED IN RESPONSE TO THE CALL FOR PROPOSALS IDENTIFIED CORRIDORS Corridor IA Corridor IB Corridor II Corridor III Overview of the four identified corridors MoS Hubs Potential (Malta study) WEST MED MOS MASTER PLAN Page 2 of 132

3 7.6.1 Traffic Flows on Cluster basis Demand forecast results Comparative cost analysis DEVELOPMENT SCENARIOS TO Characterisation of scenarios Forecasts for rolling RORO-ROPAX traffic at Analysis of scenarios at Corridor IA Corridor IB Corridor II Corridor III Summary Observations on 2020 Scenarios CONNECTION WITH PAN-EUROPEAN INITIATIVES INVESTMENT REQUISITES FOR THE MOTORWAYS OF THE SEA EU funds for the Trans-European networks The European Investment Bank s role in allocating funds Project financing Public Private Partnerships Public and private investment in port infrastructures The role of private investors The drivers of the forms of public private partnerships The situation in Italy The situation in Spain The situation in France The situation in Malta ACTIONS SUPPORTING THE MOTORWAYS OF THE SEA Support for the demand to provide incentives for modal shift: The Ecobonus; the Italian experience Support for the demand to provide incentives for modal shift: Ecobonus; the Spanish proposal Support for the demand to provide incentives for modal shift: Ecobonus; the Maltese proposal Contributions to shipping companies for developing new routes: Marco Polo II programme, Italian analysis The Italian analysis The French Analysis Flanking measures and supporting actions (Malta) RECOMMENDATIONS General Recommendations Proposals by project partners France Malta Spain Italy Short-term action plan ANNEX I WEST MED MOS MASTER PLAN Page 3 of 132

4 List of Figures Figure 1 Representation of approach used for development of study... 9 Figure 2 Italy-Spain volume trends Figure 3 Italy-Spain commercial trade that could use the MoS (data in value referring to 2009) Figure 4 Italy-France commercial trade that could use the MoS (data in value referring to 2009) Figure 6 Italy-Malta commercial trade that could use the MoS (data in value referring to 2009) Figure 7 - Analysis of potential MoS traffic in the Western Mediterranean Figure 8 - Evaluation of traffic - Strait of Gibraltar Figure 9 - Calculation method of potential maximum, e.g. Sète Genoa Figure 10 - Italy to Spain flows by Region (% in weight) Figure 11 - Spain to Italy flows by transport mode Figure 12 - Spain - France flows by Region (% in weight) Figure 13 - Spain - France flows by Transport Mode Figure 14 - Spain - Malta flows by type of goods (% in weight) Figure 15 - Malta - Spain flows by type of goods (% in weight) Figure 16 - Maltese export, share by Country Figure 17 - Maltese import, share by Country Figure 18 - Factors that characterise the MoS requisites Figure 19 - The European Commission Agenda Figure 20 - EU Maritime Initiative: e-maritime components Figure 21 - Volumes of rolling RORO-ROPAX traffic by region (in %) Figure 22 - RORO and Container traffic volumes by Region (in millions of tonnes, filtered scenario) Figure 23 - Number of vehicles arriving/departing by Region Figure 24 - Lines, departures and volumes of rolling loads (number of HGVs) division by Region Figure 25 - Analysis of line and departures by area of destination and lines by type of ship Figure 26 - Line operators, type of services Figure 27 - SSS Spain-Italy connections at the Mediterranean Sea Figure 28 - SSS Spain-France connections at the Mediterranean Sea Figure 29 - Mediterranean Ports analyzed Figure 30 - Representation of potential port clusters Figure 31 - Malta, Spain, France Sea fronts definition Figure 32 - Routes individuated with in the West Med Corridors Call for proposals Figure 33 - West MED MOS Corridor IA Figure 34 - Loads transported in the West MED MOS Corridor IA Figure 35 - West MED MOS Corridor IB Figure 36 - Main existing lines and load flows transported along the West MED MOS Corridor IB Figure 37 - West MED MOS Corridor II Figure 38 - Main existing lines and load flows transported along the West MED MOS Corridor III Figure 39 - West MED MOS Corridor III Figure 40 - Main existing lines and load flows transported along the West MED MOS Corridor III Figure 41 - Lines and departures per corridor Figure 42 - Hypothesis of feeder services operated from / to the Malta MoS Hub WEST MED MOS MASTER PLAN Page 4 of 132

5 Figure 43 - Overview of Potential MoS routes Figure 44 - Yearly level of services (frequency) by MoS routes Figure 45 - Malta links correlated to the West Med MoS Corridors IA and III areas Figure 46 - Route Spain Turkey (via Trieste) Figure 47 - Route Spain Turkey (via Malta) Figure 48 - Historical trend of rolling traffic in Italian West Med ports ( ) Figure 49 - Increase in departures by corridor Figure 50 - Increase in vehicles in Corridor I A to 2020, basic scenario and high scenario Figure 51 - Increase in vehicles in Corridor I B to 2020, basic scenario and high scenario Figure 52 - Increase in vehicles in Corridor II to 2020, basic scenario and high scenario Figure 53 - Increase in vehicles in Corridor III to 2020, basic scenario and high scenario Figure 54 - Scenario at 2020 MoS Network and West Med Mos Corridors Figure 55 - Corridors identified in the East Med MoS that can be integrated with the corridors identified in West Med Corridors Figure 56 - Ecobonus, shares of national and communitarian routes Figure 57 - Ecobonus, shares of national and communitarian routes Figure 58 - Tendency scenario Spain-Italy RoRo traffic evolution Figure 58 B - Ecobonus scenario vs. Tendency..113 Figure 59 - Spain Ecobonus scenario vs.tendency scenario (tons) Figure 60 - Spain Ecobonus scenario 2013 (tons) Figure 61 - Spain Ecobonus scenario 2020 (tons) Figure 62 - Spain Ecobonus scenario 2030 (tons) Figure 63 - Marco Polo II Programme, martime lines Figure 64 - Marco Polo II Programme, maritime lines WEST MED MOS MASTER PLAN Page 5 of 132

6 List of Tables Table 1 Reference Model, Key Performance Indicators (KPI) Table 2 European Commission communications and initiatives Table 3 Mos links between Italian ports Table 4 Mos links between Italy and Spain Table 5 Mos links between Italy and France Table 6 Mos links between Italy and Malta Table 7 MoS links between Italy and southern Mediterranean Countries (central - west side) Table 8 Mos links between Italy and other countries long circular services Table 9 Rolling RORO-ROPAX traffic volumes by Region in tonnes and number of vehicles Table 10 Analysis of lines by ship-owning group Table 11 Analysis of lines from Spain to France Table 12 Analysis of RORO lines that depart from Maltese ports Table 13 Scenario 2009 for rolling load flows in the corridors Table 14 Scenario 2009 for rolling load flows in the corridors Table 15 Scenario 2009 for rolling load flows in the corridors Table 16 Scenario 2009 for rolling load flows in corridor III Table 17 Scenario 2009 for rolling load flows in the corridors Table 18 Possible AdM services to / from Malta Table 19 Real GDP trends, annual percentage variations, Table 20 Rolling stock flows in 2009 and increase in 2020 (basic and high scenarios) Table 21 Port terminal investment and types of risk Table 22 Description of the projects with indications of connections and investments Table 23 Description of the projects in Spain Table 24 Description of the projects in France Table 25 Malta port projects Table 26 Ecobonus, applications elaborated during the triennium Table 27 Ecobonus, main national routes (2007) Table 28 Ecobonus, main EU routes (2007) Table 29 Ecobonus, main national routes (2008) Table 30 Ecobonus, main EU routes (2008) Table 31 Ecobonus, transit in main national ports Table 32 Ecobonus, transit in main EU ports WEST MED MOS MASTER PLAN Page 6 of 132

7 ABBREVIATIONS/ ACRONYSM / DEFINITIONS MoS Consultant RTI TEN-T WEST MED Stakeholders RORO LOLO ICT SWOT POT Motorways of the Sea RTI - Raggruppamento temporaneo of the Companies RINA Services, TLS EUROPE, Gruppo CLAS Raggruppamento Temporaneo delle Imprese (Società RINA Services, TLS EUROPE, Gruppo CLAS). Joint Venture built up for the purpose to develop the Study Trans European Network Transport Western Mediterranean Sea Public and Private interested parties (among the others Public Administrations, Port Authorities, Ship-owners, Transport Operators Maritime, railways, road, inland water ways Operators, logistic Operators, port service operators and Authorities and body for controls, etc.) Roll on Roll off (horizontal loading unloading of the ship) Lift on Lift off (ship loaded by quay crane) Information and Communication Technology Strengthness, Weakness, Opportunities, Threats Three years Operation Plan WEST MED MOS MASTER PLAN Page 7 of 132

8 1 INTRODUCTION This document is the Master Plan for the Motorways of the Sea in the Western Mediterranean. It summarises the final results of the activities carried out by the RTI set up by the companies Rina Services, TLS Europe and CLAS Group and by other studies drawn up by partner countries. In particular, the results of the studies carried out by the four project partners are brought together and summarised: Italy, Spain, France, Malta. The report also contains recommendations which emerged during the study in order to increase development of the MoS and the Communication Plan for the disclosure of the results of the Master Plan for MoS development in the Western Mediterranean. 1.1 Objective and approach followed to develop the study The Master Plan" is the result of integrating the most important contents of the studies drawn up in Italy, Spain, Malta and France, which then defined the MoS Master Plan for the Western Mediterranean. The study was developed by interacting with the stakeholders, outlining a European reference scenario, with the needs and priorities of the transport system, ports system and logistics, in the precise intention of contributing to the development of the MoS and improving accessibility to the latter. Based on the results of the meetings held, solutions were found aimed at helping MoS development and integration of sea transport services in the Western Mediterranean, with structures and logistics systems that can better connect Europe with the area involved in the study. In particular, possible scenarios were highlighted which could contribute to raising the level of efficiency of the intermodal logistics chains that connect the regions involved in the study, with the most important national and European logistics centres. The network nodes, at the intermediate stops (also ship-ship transhipment) could contribute to a diversification of the offer, aimed at providing services in the ports that can make intermodal transport competitive, with transfers of loads from one means of transport to another, compared to the direct connection via road or sea, origin final destination. Interaction with public and private sector subjects involved has provided an instant image of the potential of the transport system and logistics created by developing the Motorways of the Seas (MoS) in the Western Mediterranean. It has therefore been possible to highlight the needs and priorities in the development of the MoS in the Western Mediterranean. The results contained in this document are mainly based on the following elements: Results of interaction with the stakeholders Analysis of information documents and data provided directly by the stakeholders Previous studies on the matter provided by the contractor or by the stakeholders during meetings or following said meetings Experience and documentation on MoS, that make up the consultant s background. Studies produced by the Project Partners listed above. WEST MED MOS MASTER PLAN Page 8 of 132

9 Source: Ram S.p.a. elaboration Figure 1 Representation of approach used for development of study An outline of the work development process is shown in the block diagram in figure 1. It must also be pointed out that the MoS do not concern all sea transport as a whole, but only the segment characterised by frequent, regular reliable services integrated in the intermodal chain and/or services that may contribute directly or indirectly to transferring the load from the sea routes. WEST MED MOS MASTER PLAN Page 9 of 132

10 2 METHODOLOGY This chapter highlights the important data of exchanges between the countries involved in the study drawn up by the West Med Corridors project partners. 2.1 Analysis on transport demand (Italy) Flows between Italy and Spain The first step of the study brought to the fore the important data on exchanges between Italy and Spain, which, in the period increased by 70%, reaching a value of about 43 billion Euro annually 1. In the period , the reduction in import-export figures was considerable, but signs of recovery were found in 2010, as shown in the figure below. Trade is extremely heterogeneous and values are not balanced, thanks to the greater inclination towards export in the Italian system, which is 30% higher than Italian import figures regarding Spanish goods. In particular, in addition to these imbalanced values in monetary flows, it is important to underline the seasonality of trade values, which heavily reduce such values during the months of August and December, and which peak in the months of April and May. Source: Italian-Spanish Chamber of Commerce Figure 2 Italy-Spain volume trends In the year 2009, 42% of Italian imports coming from Spain were destined to the North West, 23% to the North East, 35% to the Centre-South and the islands. Percentage shares of Italian exports to Spain are divided as follows: Centre-South and the islands represent 31% of exports, while the North West and North East represent 41% and 28% respectively. To sum up, the import-export trade between Spain and Italy is concentrated on routes to North Italy, with a value adding up to 67% of the total. 1 The source of these international trade statistics is the Istat Coeweb databank. WEST MED MOS MASTER PLAN Page 10 of 132

11 In order to narrow the analysis filed to the project's specific objective, i.e. the development of intermodal traffic using the MoS, it was decided to exclude some categories of goods from the evaluation of potential demand, which are transported in bulk by their very nature, and which are not potentially suitable for travelling by scheduled sea services of this type. Some of the product categories not considered here are mineral extract products from mines and quarries, base metals and metal products (excluding machinery, plants, coke and refined petroleum products). Although it is not possible to state certainly that none of these products travel by MoS scheduled services, in any type of conditions, it is estimated that it is however, a negligible part, compensated by other loads considered suitable for MoS services, that may travel in bulk or on specific ships for this type of load (e.g. CE category chemical substances and products). This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS in different ways among the various Italian macro-regions to be reduced (data in value referring to 2009): 84% of the total for the North West, 94% for the North East, 91% for the Centre, 86% for the South, 10% for Sardinia and 43% for Sicily. There are various useful points for the later phases of the study coming from market evaluations on transport demand for MoS on this route. In particular, it is noted how 41.3% of the demand from specific import and export (expressed in value) for MoS is concentrated in the North West. The North East, which also has a possible outlet in the Tuscan ports in the North Tyrrhenian Sea, in addition to Liguria ports, makes up 28.5% of the demand. Central Italy, the South and the islands account for 30.2% of the demand. Source: CLAS Group elaboration on COEWEB data Figure 3 Italy-Spain commercial trade that could use the MoS (data in value referring to 2009) More specifically, regarding food-agricultural industry imports-exports, it can be stated that Italy imports goods worth more than 2 billion Euro (2.043 billion Euro in 2009) and exports only 738 million Euro. In this case too, most of the traffic is concentrated in North Italy where 63.3% of import-export trade takes place and in the Centre-South and the islands where 36.7% in value of the import-export trade involving food-agricultural products takes place. WEST MED MOS MASTER PLAN Page 11 of 132

12 Potential MoS services for the Ligurian port system cannot offer particular advantages in terms of time compared to all-road transport, but may be economically worthwhile for the loaders, based on the actual transport cost. Other types of logic are also used, such as the certainty of time that sea transport can guarantee and the possibility of unaccompanied transport, thus saving in terms of staff and transport costs (that are calculated on linear metres, therefore the board of trailers alone is about 25% more worthwhile economically). To the contrary, sea distances between Italian ports in the central and southern Tyrrhenian Sea and Spanish ports (although there are obviously big differences depending on the geographical areas that the ports are connected with) and the basin shape of the Western Mediterranean allow transport to mostly have positive detour factors 2 for O/D pairs compared to road transport. Currently, (considering 2008 data in terms of weight), the main ports used for Ro/Ro import/export trade on the Italy-Spain route are Barcelona, that sees 68% of the traffic and Valencia that accepts 28% of the goods. The traffic for Barcelona comes from or is mainly heading towards Civitavecchia (41%), Genoa (39%) and Livorno (20%), while the main origins/destinations that involves the port of Valencia are Salerno (73%) and Livorno (24%). The attempts begun in the first three months of the year 2010 to use other Spanish ports, in particular Alicante and Almeria in southern Spain for regular RORO cargo-only connections from and to Civitavecchia have been suspended due to commercial difficulties.the factors linked to the unbalanced traffic, seasonality and variability, which can be seen in the import/export trade data over the last three years, justify the ship-owners choice to diversify risk by using fleets suitable for both passenger and cargo traffic. Indeed, passenger traffic can both compensate moments of reduction in cargo traffic in August and December and increase possible revenue in the summer months with greater tourist traffic. Choosing this type of fleet, however, means some operational restrictions as the sea traffic for passengers is only competitive compared to other types of transport if the journey by sea takes less than 24 hours. The trading of goods between Spain and other countries that may use the North Tyrrhenian ports as transit points, such as Austria, south-east Germany, Slovenia, Croatia, the Czech Republic, Slovakia, Hungary etc, may be an interesting addition to current loads in the future, which may be absorbed by the MoS lines. The competition with road traffic can be highlighted for these origins/destinations, which is currently strong due to the actual distances and for the transport times, especially considering the fact that the main Spanish destinations are concentrated in the central part of the country (Madrid area) and the North (Catalonia). Actual equality in load control procedures (to be hoped for throughout the EU as stated in the communication sea transport without barriers ), greater standardisation of regulations among member states on driving times, and tighter controls may contribute towards fairer competition between sea traffic and land traffic Flows between Italy and France France is a privileged partner for Italy regarding import/export trade: This country is, in fact, the leading destination for Italian exports, while it is in second place, behind Germany alone, for imported goods to our country. ISTAT data for 2009 show an export value that is higher than the import value by about 29%, recording a positive trade balance of about 7 billion, 673 million Euro, part of a total of about 60 billion Euro of import/export trade. However, in the period , import figures were reduced by about 12%, while export figures remained more or less the same during the same period (+1.8%). Export trend analysis for the period January-April 2010, the 2 The detour factor is the ratio that represents the part of additional transport created in changing the road method for the sea method, within the same door to door shipment. In other words, when the goods transport mode is changed, the goods must travel a lower number of kilometres (if the detour factor is positive) to reach the final destination. The detour factor can also be negative. WEST MED MOS MASTER PLAN Page 12 of 132

13 latest data available, show a recovery compared to the same period in 2009, with +8.0%, while this figure increased by 11.9% with regards to import trends. Traffic (expressed in value) was concentrated from and to the northern areas of Italy, with 57% of imports and 45% of exports in the North West and 21% of imports and 29% of exports in the North East. About 24% of trade was concentrated in the Central-Southern areas of the country. As in the case of Spain, the analysis field for the specific objective of the project was narrowed, only analysing the categories of goods that are potentially suitable for travelling by sea on a MoS type line. This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS between Italy and France to be reduced (data in value referring to 2009): 87% of the total for the North West, 89% for the North East, 84% for the Centre, 92% for the South, 70% for Sardinia and 67% for Sicily. Source: CLAS Group elaboration on COEWEB data Figure 4 Italy-France commercial trade that could use the MoS (data in value referring to 2009) More specifically, regarding food-agricultural industry imports-exports, it can be stated that traffic between Italy and France is substantially balanced and have an overall value of 5.35 billion Euro, 2.82 of which in imports and 2.52 in exports (values in billions of Euro, referring to 2009). In this case too, most of the traffic is concentrated in North Italy where 79.2% of import-export trade takes place and in the Centre where 8.5% in value of the import-export trade involving foodagricultural products takes place. The distribution of potential traffic may provide (for many of the main origins/destinations) more favourable conditions not only for road traffic but also for rail traffic (freight rail connection between France (Aiton) and Italy (Orbassano)) rather than sea traffic, due to actual distances and transport time Import/Export trade analysis between Italy and Malta. Although import/export trade between Italy and Malta (amounting to 1.2 billion Euro in 2009) is not comparable with figures from the countries analysed previously, it is however significant, as it places our country as being one of Malta s main trading partners. ISTAT data for 2009 show an export value that is more than 5 times the import value, recording a trade balance that is clearly WEST MED MOS MASTER PLAN Page 13 of 132

14 favourable (positive), by more than 785 million Euro. However, in the period , import figures increased by about 67%, while export figures increased by about 24% during the same period. As in the case of the other countries taken into consideration here, the analysis field for the specific objective of the project was narrowed, only analysing the categories of goods that are potentially suitable for travelling by sea on a MoS type line. This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS between Italy and Malta to be reduced (data in value referring to 2009): In particular, it is noted how 30% of the demand from specific import and export (expressed in value) for MoS is concentrated in the North West, an area that is the reference catchment basin for Ligurian ports. The North East, which also has a possible outlet in the Adriatic ports and in the Tyrrhenian Sea, accounts for 35% of demand. The Centre-South of Italy expresses 20% of demand. With regards to Sicily and Sardinia, the import/export trade exchange of goods that could potentially use the MoS with Malta is 14.5% of the Italian total. Source: CLAS Group elaboration on COEWEB data Figure 6 Italy-Malta commercial trade that could use the MoS (data in value referring to 2009) More specifically regarding food-agricultural industry imports-exports, it can be stated that traffic between Italy and Malta is highly unbalanced and have an overall value of 113 million Eur, only 3 of which in imports and 110 in exports (values in millions of Euro, referring to 2009). In this case too, most of the traffic is concentrated in North Italy where 62.3% of import/export trade takes place. The second area in import/export trade importance is Sicily, where 23% in value of importexport operations with products from the food and agricultural sector are originated or destined Flows with countries on the Mediterranean s South Coastlines The import/export trade values between Italy and North-West Africa, in particular with Morocco, Tunisia and Algeria are extremely significant. ISTAT data for 2009 show an export value of about 60% of all import/export trade, recording a positive trade balance of about 1 billion, 995 million Euro, part of a total of about 15 billion Euro of import/export trade. WEST MED MOS MASTER PLAN Page 14 of 132

15 As in the case of the other countries taken into consideration here, the analysis field for the specific objective of the project was narrowed, only analysing the categories of goods that are potentially suitable for travelling by sea on a MoS type line. This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS between Italy and the stated African countries to be reduced (data in value referring to 2009): The purified import/export trade figure, therefore of goods potentially suitable for being transported by MoS services is less than 7 billion Euro, 4.5 billion of which from actual exports and the rest due to imports. If the import/export trade is divided by macro-regions, it can be seen that northern Italy has a share of about 56% while Central Italy, the South and the islands have 33% Flows in Transit As part of the overall analysis of the import/export trade, the trade between third-party countries, in transit from Italian ports, were also evaluated, which can potentially involve a sea connection in the Western Mediterranean. With regards to France, it can be hypothesised that there are third-party country goods flows in the macro-area that characterises the development in Corridor VII and Greece, which is potentially interesting for a sea connection in the Western Mediterranean. The theory of a dual mode change, first in the Adriatic basin and then in the Tyrrhenian one, would be competitive with the singlemode in terms of time and costs 3. However, the efficiency targets set for the MoS ports, and the improvement of the infrastructures and intermodal services contained in the development plans could make this option more competitive in the near future. For Eastern European countries, in particular the ones located further north, the road transport alternative from and to France is often the most convenient. The same applies to import/export trade between Great Britain and Ireland and the macro-areas of the South of Italy and the larger islands and the countries in the South Mediterranean, which already need to use sea/road intermodal transport to cross the Channel, in French and Belgian ports most of all; the goods then continue by road (or by rail, in some cases) as far as Italian boarding ports and a further mode change can be organised in the Mediterranean to reach the final destination ports. Flows from Central-Northern Europe (Denmark, Sweden, Norway, and above all the extent of volume from Germany, Austria, Holland and Belgium), which reach various destinations in Italy and the Western Mediterranean via Italian ports, are even greater. In particular, import/exports with third-party countries that could potentially involve sea connections in the Western Mediterranean can be found on the Italy-Spain route. Trade between Italy Portugal and Spain countries in the centre and south of Eastern Europe are concentrated on these routes. The value of import/export trade between Italy and Portugal in 2008 totalled 4.8 billion Euro, according to Eurostat data. The 2009 figure is slightly lower. This value, according to Eurostat, amounts to 1.48 million tonnes of goods imported/exported in 2008, and 1.27 million tonnes of goods in If import/export flows in 2008 are also considered, the overall weight of imports was 593 thousand tonnes, while the overall weight of exports was 892 thousand tonnes. In addition, by identifying the specific product categories suitable for travelling on MoS, the values 3 Each mode change implies handling costs which are on average quantifiable at 160 Euro per trailer for loading/unloading (80+80) plus taxes and port duties, in addition to uncertainty as to time involved. WEST MED MOS MASTER PLAN Page 15 of 132

16 traded as imports are limited to 82%, with a total weight of 484 thousand tonnes, and by 63%, the values traded as exports with a weight of 562 thousand tonnes. Although such flows are not comparable with flows between Italy and Spain (which were six times greater in 2009), they are still important as they make a part contribution to increasing the potential demand basin for sea services in the Western Mediterranean. Goods trade between Spain and the other countries analysed belonging to Central and Eastern Europe, more specifically Austria, Slovenia, the Czech Republic, Slovakia, Hungary and Croatia, which does not currently produce high values, could become very important in the future if more competitive intermodal connections were developed which included the horizontal crossing of the Italian peninsula from the Tyrrhenian to the Adriatic, then continuing by intermodal sea service and road/rail transport towards the final destination. The fact that road transport competition is especially strong today for traffic heading towards northern Spain must be taken into consideration. WEST MED MOS MASTER PLAN Page 16 of 132

17 2.2 Analysis on transport demand (France) This section contains the results from the French study, which complete the picture of traffic between France and European countries in the area and between France and the other countries standing on the southern coast of the Mediterranean Potential traffic identified in the study area Two recent studies take a good macro-economic approach: 2007, MEDA MOS in its Euro-Mediterranean Transport Project report - Call for projects - October 2007 (EuropeAid/121468/C/SV/Multi, estimated the overall traffic in the EU - MEDA zone to be 70 million tonnes per year (in 2004) out of a total of 232 million tonnes (including bulk trade). Containers are the most common method used (71% of the 70 million tonnes per year), followed by Ro-Ro (10%, or 7 million tonnes) focusing on a few partnerships (Turkey/Italy, Tunisia/France, Tunisia/Italy, Morocco/Spain). In the same report, it is stipulated that although the possibility of large movements of Ro-Ro is small because it is limited to a small number of partnerships, port containers can be sent to many ports, particularly in the eastern Mediterranean. The study carried out by Eurogroup on behalf of the Circle for Optimodality in Europe (COE) Figure 7 - Analysis of potential MoS traffic in the Western Mediterranean WEST MED MOS MASTER PLAN Page 17 of 132

18 From this graph, we see that traffic volume is on routes parallel to the coast, making it more problematic (sea time is less attractive than road). Source: Report West MoS Master Plan France Figure 8 - Evaluation of traffic - Strait of Gibraltar. Source: Report West MoS Master Plan France Figure 9 - Calculation method of potential maximum, e.g. Sète Genoa WEST MED MOS MASTER PLAN Page 18 of 132

19 2.2.2 It is also necessary to understand the structure of goods flows.. Analysis of the flow of goods between France and Spain: From South to North, fresh produce, fodder, ceramics and construction material account for more than 2/3 of cargo tonnage. Apart from ceramics, these are products with low added value. Apart from fruits and vegetables, they are products that do not require high transport speeds nor a just-in-time logistics policy. From north to south three categories of products (wood, chemicals, metal products) represent 50% of tonnage. There is greater diversification. The analysis of the number of vehicles confirms the hierarchy of types of goods, this hierarchical view, however, is somewhat modified mainly because of the density differential between the products (the case of ceramics related to forage) or packaging constraints (for cars compared with other palletised and/or stackable products for the most part). Light vehicle transport (to the south and north), ceramics (to the north), fodder (to the north), chemicals (to the south) are of almost equal numbers (between 3800 and 4500 HGVs per year). In terms of fruits and vegetables, more than 8500 HGVs travel to the North. Mediterranean Sea trade has one of the fastest potentials for development in the world: It is supported by the overall economic growth in the region and the high level of GDP growth forecasts for most countries in the area. in the current context of globalisation, it benefits from the central location of traffic flows between east and west, north and south. These volumes should reach about 25 million TEUs by The challenges of containerisation stem above all from a desire to standardise industrial shippers and to integrate transport in their production/distribution processes. By thus standardising their flows (supply, but also distribution), they give themselves the opportunity to amalgamate, to transfer from one mode to another by pooling means based on volume, deadlines and the remoteness of their markets or supply sources. Optimising the entire supply chain is expected, not just one of its links. WEST MED MOS MASTER PLAN Page 19 of 132

20 2.3 Analysis on transport demand (Spain) This section contains the analyses taken from the Spanish study, which complete the picture of traffic in the area taken into consideration with the Spanish view. In particular, the results described show the central nature of trade between Spain and Italy with regards to the development of the MoS in the Western Mediterranean Spain Italy Transport Demand In 2008 the total volume of goods traded between Spain and Italy up to 29.9 MTon. In Spain- Italy traffic typology of goods varies widely depending on the flow sense. Thus, in Spain to Italy flows (exports) the six main categories of goods account for 80% of traffic. In first term, Metal and steel products traffic, especially steel, accounts for 21% of the total exports in Tons. Those goods are followed by the group of fruits, vegetables and other plant products (mainly fruits and cereals), which represents 19% of the total. At a second level are placed chemicals (13% of total), plastics (10% of total) and bulk solids (salt, sulphur and concrete, 8%). On the other sense, flows from Italy to Spain (imports) are highly concentrated in the traffic of the two main types of goods. Mineral fuels account for 51% of total import flows from Italy, while metals and steel account for 20%. Then fall in imports of chemicals, plastics and paper (with rates between 3% and 8%), while other types of goods have a much lower weight. Concerning the distribution by region, 81% of Spanish trade with Italy is concentrated in six Autonomous Communities. The main one is Catalonia (that assumes 35% of the total traffic), which is followed by Madrid (17%) and Comunidad Valenciana (10%): At provincial level, the flows are concentrated in the two coastal provinces with the greater economic weight and hosting the most crowded shipping lines (Barcelona and Valencia), and in two of the interior with a financial and logistical relevance (Madrid and Zaragoza). Barcelona represents 29% of the Spain-Italy flows. Behind it, as well as Madrid, Valencia represents 6% of the total and Zaragoza 5%. In Italy for 78% of flows are geographically concentrated in six regions, which are mostly located in the northern third of Italy. In that sense, Lombardy is the major partner in the flow of goods with Spain, assuming 29% of total traffic. At a second level are located the regions of Veneto (12%), Emilia-Romagna (12%) and Piedmont (11%), while with a lower weight are Tuscany and Lazio. In the 29.9 MTon exchanged in 2008 between Spain and Italy, the predominant transport mode in these exchanges is the sea transport: it involves 74% of total flows, while the road is practically the remaining 26% (because rail participation in these flows is very low). If maritime transport is broken down, it can be found that the conventional shipping weight is 54% of the total, while RoRo weight is 19% of total flows. Besides considering the weight on RoRo transport vs RoRo + Road flows, it can be observed that the 5,5 MTon exchanged in 2008 by RoRo represents 42% of total truck traffic. This high rate is related to the development of SSS lines between the main Spanish ports at the Mediterranean and the Italian ones. In 2004 RoRo traffic between the two countries was 2,2 MTon, which involved a modal share of 20% compared to the road. Focusing in RoRo transport, in 2008 there were moved 5.5 million tons between Spain and Italy by RoRo. Italy is Spain's main partner in this type of transport and accounts for 60% of all Ro-Ro at the Spanish port system. The exchanges are nearly balanced by sense: 53% are departures, 46% input and 1% correspond to transitions. The main port in these flows is Barcelona, which accounts for 68% of total traffic. Flows from Barcelona are spread almost entirely between the Italian ports of Civitavecchia (41% of Barcelona WEST MED MOS MASTER PLAN Page 20 of 132

21 RoRo), Genoa and Livorno (39% and 20%, respectively). The second-biggest port is Valencia (28%), which flows down to Salerno and Livorno (73% and 24% of Ro-Ro from Valencia to Italy). In the Mediterranean remains Tarragona (4%, with Livorno), while in the Atlantic port of Vigo is a 1% of total. The main types of products traded by Ro-Ro are included within the chapters on "Rest of goods (general merchandise of various types), Vehicles and their parts (which represent 7% of total), oils and fats (4%), appliances, tools and spare parts (3%) and chemicals (3%). Figure 10 - Italy to Spain flows by Region (% in weight) Figure 11 - Spain to Italy flows by transport mode Spain - France Transport Demand In 2008 the total volume of goods traded between Spain and France up to 58 MTon. The majority transport mode in these exchanges is the road: it assumes 82% of the total transported. Meanwhile, the maritime mode (considering the conventional transport and by RoRo) accounts for 15% of the total, while the share of rail is very low (means around 3%). The first data of trafic are positive. This line joins the port of Nantes-Saint Nazaire (France) to the port of Gijon (Spain) twice each week. It is operated by GLD Atlantique (Louis Dreyfus Armateur). If shipping flows are broken down, it can be found that the conventional shipping weight is 14% of the total, while RoRo share is 1%. Besides considering the weight of RoRo transport over RoRo + Road it can be observed that the 0.7 MTon exchanged by RoRo in 2008 represent 2% of total truck traffic. This share reflects the lack of development and penetration of SSS scheduled services between Spain and France against Italy's existing. Figure 12 - Spain - France flows by Region (% in weight) Figure 13 - Spain - France flows by Transport Mode WEST MED MOS MASTER PLAN Page 21 of 132

22 France is the third partner in terms of flows RoRo of Spain, since the 0.7 MTon account for 8% of total. RoRo output flows account for 59% of the total and are concentrated in the ports of the Atlantic arc. These RoRo traffic is many times carried out through services that can not be considered Motorways of the Sea. Regarding their geographical distribution, flows between Spain and France are almost balanced (52% imports to Spain and 48% exports). In Spain, 84% of trade with France is concentrated in six autonomous regions. As happens with Italy, the main ones are Catalonia (accounts for 26% of total) and Madrid (21%). Besides, Madrid and Barcelona are the provinces with a more significant weight in total flows with France. At the second level are located Galicia (12%) and Castilla y Leon (11%) from flows associated with the automotive industry (Pontevedra and Valladolid are the third and fourth provinces in the flow of goods to France). In France the freight flows are concentrated in Ile de France, representing 36%. After that, the concentration stresses in the border regions and in the Mediterranean area: The three regions of the Mediterranean arc are responsible for 18% of the total. The weight of Provence-Alpes-Cote d'azur (3%) is much smaller than those of Languedoc Roussillon (8%) and Rhone-Alpes (7%). Then, among the top ten regions are the border regions of Aquitaine (6% of total) and Midi-Pyrenees (3%). Consistent with the total traffic, the type of products at Spain-France flows is also similar in both directions. There is a large concentration in flows, since the first two types account for 58% of total traffic. In addition, the seven main categories of goods account for more than 90% of traffic on weight. Fruits, vegetables and other vegetable products account for 30% of the total (and they are mainly cereals), and the metals and steel products weight 28%. Then there can be found the paper and pulp, mineral fuels and chemicals, which in aggregate represent 24% of Spain-France total flows. WEST MED MOS MASTER PLAN Page 22 of 132

23 2.3.3 Spain Malta Transport Demand Because of its insular nature, Spain-Malta flows of goods are almost entirely done by the maritime mode. In ,752 tons were exchanged between Spain and Malta by sea. Within this total, 2,741 tons were transported by RoRo, representing 1% of total flows. Import flows were higher than export (60-40%). Additionally, 81% of Spanish traffic with Malta is concentrated in six autonomous regions, predominantly those located on the Mediterranean coast. Thus, the Comunidad Valenciana is the largest trading partner and accounts for 27% of total traffic (Valencia means 14% of total and Castellon 7%). After them, Catalonia accounts for 26% of flows from the weight of Barcelona (which represents 21% of trade with Malta). Besides volume, on Spain-Malta trades the types of products also varies depending on the sense. In Spain- Malta flows (exports) the five main categories of goods account for 88% of total traffic. The main types are the Animals and animal products (mainly food preparations) which account for 38% of flows, followed by Mineral fuels (24%) and Fruits, vegetables and other vegetables (19%). Regarding flows from Malta to Spain (imports), 65% is concentrated in the three main types of products (86% in the top six). The principal item is the Animals and animal products (mainly fish) which represent a 25%. That type is followed by the category of various products (toys) that account for 20% and optical instruments and appliances (which account for 20% of total imports). Figure 14 - Spain - Malta flows by type of goods (% in weight) Figure 15 - Malta - Spain flows by type of goods (% in weight) WEST MED MOS MASTER PLAN Page 23 of 132

24 2.4 Analysis on transport demand (Malta) This section contains the analysis of the traffic picture in the area from Malta s point of view, referring to the contents of the Malta report as above. Considering the strong roles played by the EU and the position of Malta, this study focuses on the share of import-export flows between Malta and South European countries (Italy, France and Spain), as well as on the flows with countries on the coast of North Africa and the Middle East. The importance of each country can be identified by looking at the following charts. In considering Malta s export flows, one notes that Italy is the most significant partner. The countries of North Africa and the Middle East are also strong partners for export flows (especially Libya and Tunisia). France and Spain together account for more than 10%. The main exported commodities include foods, manufactured goods, machinery and transport equipments, mineral fuels and chemical products. In considering Malta s imports, it is evident that Italy has a dominant position as one of Malta s main export partners. Furthermore, Italy, France and Spain together account for more than 90% of traffic flows towards Malta. Figure 16 - Maltese export, share by Country Figure 17 - Maltese import, share by Country One notes that Malta has very limited imports from North African and Middle East countries. The main imported commodities are manufactured goods, mineral fuels, and foods. In 2008, Malta imported nearly tonnes of manufactured goods (i.e. 34% of the total imported flows and 77% of the flows from the countries within the West Mos study) from Italy. From an analysis of the previous figures, it can be stated that the Maltese economy is centered on exchanges and trade with foreign countries (although imports are more important than exports). Nevertheless, it is worth noting how these figures are - in absolute terms not significant enough to generate sustained freight traffic flows. Therefore, a development of a Motorways of the Sea service might currently not be feasible considering only direct traffic to and from Malta, but, through the creation of a transport network that would allow Malta to become a hub port with direct links between Western and Eastern Mediterranean countries. WEST MED MOS MASTER PLAN Page 24 of 132

25 3 MOTORWAYS OF THE SEA REQUISITES The MoS are a mature concept that is continuously evolving. In its White Paper issued in September 2001, the EU Commission proposed the development of the Motorways of the Seas as an option in intermodal transport based on Short Sea Shipping. The development of Short Sea Shipping, in turn was the subject of a support policy that gave rise to actions and measures and to the Commission s Communication, COM (204) 453 final on "Short Sea Shipping" in July Promotion Centres of Short Sea Shipping were also set up in all the EU countries involved. The guidelines for the definition of a Master Plan for MoS in the Mediterranean sea were discussed during the meetings in Malta and Ljubljana in the summer of 2004, and the first question was whether the Master Plan should concern the entire Mediterranean or not. The definition of the requisites that the MoS services must correspond to, in particular the requisites for the service network structure, and deciding which ports could be considered as corridor or network junctions and departure/arrival points for MoS sea connections, were the main subjects to be addressed at the start of work to define a Master Plan. The study in question aims to make some technical contributions, in a final phase of this work, in the context of the West Med Corridors project. The European Commission is now strongly committed to initiatives aimed at developing sea transport that is especially linked to the MoS. - The Final COM Communication (2009) 11 dated Communication and action plan for the creation of a European space for sea transport without boundaries ; - The launch of EU and - Maritime Initiatives (a widespread initiative in the sea transport sector aimed at helping and supporting the development and adoption of the most recent enabling ICT technologies for improving maritime security within the integrated EU transport system). - The COM (2009) 8 Final Strategic Goals and Recommendations for the EU s Maritime Policy until 2018" dated ; The initiatives above show the recent commitment to continuity with what was produced in previous years, also expressed via the following two communications: - COM (2007) 616 on the European Ports Policy - COM (2007) 575 on the European Union s Integrated Maritime Policy dated October A wider documentation on the EU Commission s commitment on these matters is summarised in table 2 and in figures 3 and 4. WEST MED MOS MASTER PLAN Page 25 of 132

26 3.1 Historical evolution of the concept of MoS and future trends Evolution of the concept and minimum requirements that characterise the MoS The continuous evolution of the concept of MoS has matured over the years, also through experiments and pilot projects. The most significant steps of the evolution process of the MoS concept are summarised in the following points: Port-Port sea transport service between two ports with the following characteristics: - frequent, - reliable, - efficient, - sustainable from an economic, environmental, safety and security, and social point of view. Origin final destination transport service that includes crossing two ports, that requires compliance with specific requisites for: - Intermodal transport service - Connection of ports to port s or internal remote logistics platforms. Motorways of the Seas network integration of services in a network that cannot be created by merely grouping together the existing point-to-point services, but which requires: - Strategic vision of regional development - Corridors, with a strong concentration of load flows. - Structures and services created to be part of a network Other requisites coming from the development of the MoS concept The definition of requirements is one of the key aspects for characterising the MoS and for drawing up the Master Plan. The approach for evaluating the development scenarios and the MoS projects has evolved over the years and is increasingly marked by the need to refer to measurable factors in addition to objective criteria. The matter was addressed in the study, supporting the concept that the evaluation of contributions to an MoS development scenario, within the context of a defined reference outline, could be useful in the projects (including strategic projects), on the basis of quality and performance targets that the infrastructures and MoS services can supply. Figure 18 shows a summary picture of the factors characterising MoS requisites considered in the study.. WEST MED MOS MASTER PLAN Page 26 of 132

27 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 18 - Factors that characterise the MoS requisites Key Performance Indicators were also defined in the study, which could be suitably calibrated in the realm of the objectives defined for the reference outline, and be used for evaluation. The evaluations for selecting projects could be focused on the one hand, for example, on the projects functionality and economic sustainability, and on the other hand they could also be aimed at achieving the targets of common interest, such as by measuring the parameters of service sustainability from an environmental, safety and security and social point of view. The Key Performance Indicators (KPI) identified in the study are contained in table 1 below. The table shows, as an example, a possible set of KPI relating to a case of MoS excellence, referring to a main junction in the MoS network (TEN-T) that could also be a MoS transhipment junction. To evaluate a different MoS project, for example relating to the secondary connections network that could involve smaller ports, the specific quantitative requisites that correspond to the set targets could be set in a different manner, maintaining the same service sustainability requisites for the environment, safety and security and social matters. The European Sea Ports Organisation (ESPO) has recently addressed the matter of Port Performance Indicators and the aspects relating to criteria for the definition and selection of indicators, measurement modes, monitoring systems and structures and the opportunity of expanding the study and evaluation phase with pilot projects within their own Port Governance Committee on 17 September Future Trends The evolution of the concept brings about the evaluation of new opportunities that can come from an expansion of the aim of the MoS, at European level, such as, for example: Overcoming the concept of Predominant Load ; National MoS (in many European countries and in particular in Italy, they already represent most MoS services); Inclusion of the countries standing on the Southern coasts of the Mediterranean; MoS for services relating to bulk loads. WEST MED MOS MASTER PLAN Page 27 of 132

28 Table 1 Reference Model, Key Performance Indicators (KPI) REFERENCE MODEL / KEY PERFORMANCE INDICATORS 1 PORT SYSTEM INFRASTRUCTURES AND SERVICES 1.1 RORO Terminal Areas sqm Marshalling areas for loading / unloading operations of the ship (truck, trailers and Containers, Swapbodies) Berthing at least for two ships at the same time Land ramp to allow loading / unloading two decks of the ship at the same times Special dedicated equipments for loading/unloading CNT and swapbodies on the ships on two stacks using Mafy or cassettes Efficient and competitive operations for port access and port operations o Minimum operation times in ports (from arrival to departures of the ship): o Immediate access to the quay o Exclusion from compulsory not requested not required services (ex pilotage, towage, etc.) o Possibility to use own personnel and equipments to load/unload the ship o Dedicated personnel for clearances for immediate transit 1.2 Security Systems in Port driver / personnel identification using advanced technologies and procedures security of the terminal guaranteed by an efficient monitoring system working 24 hours a day security data base terminal equipped to allow the inspection of cargo using new advanced systems (gamma ray / x-ray systems) E-links and joint customs / security ICT, procedures from the port of origin (outside EU) to the port of destination (in EU) 1.3 Port environmental management systems 2 ADMINISTRATIVE AND AUTHORIZATION SYSTEM 2.1 Procedure simplification and ICT tools ICT tools for terminal management and information systems Community Systems Paperless procedures Simplified transit procedures to allow: o clearances at the packing houses / warehouses o pre arrival pre departure information o direct transit to warehouses logistic centers (to final destination) Single windows 3 LOGISTIC SYSTEMS (INFRASTRUCTURES AND SERVICES) 3.1 Logistic infrastructures and services Logistic infrastructures inside the port (capacity; efficiency; costs) Logistic infrastructures outside the ports short distance(less than10km) (shuttle links, capacity; efficiency; costs) Logistic infrastructures outside the ports medium distance (50 Km) (links, capacity; efficiency; costs) Logistic infrastructures outside the ports large distance (more 50 Km) (links, capacity; efficiency; costs) Logistic operators in the area (number; capacity) 3.2 Multimodal logistic infrastructure To railways (stoking areas; number of bloc trains; transhipment capacity - load unit per hour) To road (stoking areas; transhipment capacity - load unit per hour) 4 LINKS TO MAJOR LAND TRANSPORT INFRASTRUCTURES Highways (less than 10 Km; 10 to 50 Km; more than 50 Km) Railways (direct; less than 10 Km; 10 to 50 Km; more than 50 Km) Inland waterways (direct; less than 10 Km; 10 to 50 Km; more than 50 Km) 5 FLOWS AND VOLUMES Present Future (targets) 6 BARRIERS TO DEVELOPMENT ( from 0 to 100 ) Infrastructures Other Physical Non Material Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 28 of 132

29 3.2 EU Commission projects for the developments of MoS In recent years, the Commission has launched several projects with the aim of maturing the concept of MoS, promoting the awareness of the importance of developing such services and promoting the development of the MoS, also via actions aimed at aiding the carrying out of MoS pilot projects. Some of the projects that have involved the Mediterranean sea as its reference scenario or that are especially significant for the study are the following: Motorways of the Seas Eastern Mediterranean: EAST MED MOS East Mediterranean Motorways of the Sea (A Master Plan developed in 2009); Motorways of the Seas Western Mediterranean: West- Med Corridors (Master Plan to be developed in 2010); (to which the herein study refers to); Motorways of the Seas in the Mediterranean MEDA countries: MEDAMOS EuroMed Motorways of the Sea Contract (MoS Projects Pilot developed by end of 2010); MEDAMOS II ENPI SOUTH / MEDA COUNTRIES and other bordering areas; evolution of the concept : - Motorways of the Seas Network - Connection of MoS network to the land transport TMT network - Network - Trans-Mediterranean transport network, Action Plan to be developed by end of year 2011 Studies on specific themes such as the following were also launched: WEST MOS: Market Study for Short Sea Shipping services in the Western Mediterranean; PortMOS: Criteria for MoS characterisation, architecture for info-structures (with development of pilot projects); Other studies relating to geographical areas outside the Mediterranean. Some of these projects have prepared the conditions for a sharing of MoS projects with the countries on the South coasts of the Mediterranean. 3.3 Intervention actions and levels for the development of the MoS The work carried out over the years to support MoS development has proved that efficient action requires coordinated interventions at various levels that can be carried out in the short and in the long term. The short-term actions can also be used to develop pilot projects and refine development goals and models set over the long term. The various levels of intervention should concern the following aspects: Political and strategic planning; Incentive tools; Regulatory and legislative aspects; Operational aspects and service quality; Infrastructures and systems. WEST MED MOS MASTER PLAN Page 29 of 132

30 3.4 The context of the MoS The area involved in the study, analysed in relation to the development potential of the Motorways of the Sea, has revealed some elements that could expand the aim of the objectives, projects and actions supporting the development of the MoS, which are summarised in the points below: Supporting development of infrastructure offer potential via: - The development of port structures, new RORO-ROPAX terminals (there are several areas available on the sea, in many ports in the regions examined, where new terminals or new wharfs could be developed, located in strategic positions that have not yet been used); - An extended, already existing, network, of small-medium ports/terminals that could be integrated into the MoS services network, allowing widespread distribution of goods via the sea, capable of drastically reducing the land routes for goods transportation from the ports to their final destination. Supporting the development of potential for creating new MoS services, considering the fact that the following was found in the analysed regions: - An important presence of specialised shipping companies - The possibility of growth in the competitiveness of services in ports - The possibility of growth in logistic services - The condition for welcoming new opportunities for MoS service development according to the new network concept. Supporting the development of RORO-ROPAX services, even if related to national connections, to the extent in which they can directly or indirectly contribute to aiding the improvement and growth of integrated and multimodal goods transport services with Origin/Destination in other EU countries. Expanding MoS characterisation to north-south connections, in the Western Mediterranean, even if national, as they are solid structures of the intermodal corridor. These services are significant for the sector as they are characterised by: - Continuous growth (of RORO-ROPAX services) - Prevalence of ROPAX services that can provide a significant contribution to transferring loads from road to sea. - Prevalence of national connections (north-south axis) and connections with main islands that develop transport services along the TEN-T Mainland Corridors and that can also involve other EU countries. In particular, concentrating on the port system potential in the regions in the South of Italy and the main islands, and developing synergies with Malta's ports to create MoS extended to countries on the southern coasts of the Mediterranean; Extending the current support measures for MoS services, active in Italy, by introducing the EU eco-bonus. WEST MED MOS MASTER PLAN Page 30 of 132

31 Source: DG TREN 12th Maritime Symposium: E-maritime Pro & Contra, Presentation 21/05/2009 Figure 19 - The European Commission Agenda EU Commission source: SKEMA - PROPS Stakeholder workshop. Accelerated Implementation of EU Maritime Transport policy Riga, 11th June 2009 Figure 20 - EU Maritime Initiative: e-maritime components WEST MED MOS MASTER PLAN Page 31 of 132

32 Table 2 European Commission communications and initiatives DOCUMENT Final COM(2009) 11; dated Final COM(2009) /005(COD) COM(2009) 8 dated Annual Report September 2008 Progress Report May 2008 Communication [OJ 2008 C317 p.10 COM(2007) 606 final; SEC(2007) 1351 COM (2007) 616 COM(2007) 575 dated 2007 Public Consultation [October 2007] SEC(2007)1367 TITLE / MATTER Communication and action plan for the creation of a European Maritime Transport space without barriers and the launch of the EU e-maritime Initiative European Parliament and Council directive on declaration formalities for ships arriving at or departing from EU member state ports, which abrogates the directive 2002/6/CE Final Strategic goals and Recommendations for the EU s maritime Policy until 2018 Motorways of the Sea - Priority Project 21 Fostering seamless transport in the European Union - Motorways of the Sea in the European logistics chain TEN-T Implementation of the Priority Projects Progress Report Communication from the Commission providing guidance on State aid complementary to Community funding for the launching of the Motorways of the Sea Communication from the Commission, The EU's freight transport agenda: Boosting the efficiency, integration and sustainability of freight transport in Europe - Report on the Motorways of the Sea, State of play and consultation Communication on European Ports Policy Communication on the European Union s integrated Maritime Policy dated October Consultation on a European maritime transport space without barriers reinforcing the internal market for intra-european maritime transport. Results of the Internet consultation on the Motorways of the Sea. Results of the Internet consultation on a European maritime transport space without barriers reinforcing the internal market for intra-european maritime transport [October 2007]. Report on the Motorways of the Sea - State of play and consultation Corrigendum Regulation No 1692/2006 to (EC) Corrigendum to Regulation (EC) No 1692/2006 of the European Parliament and of the Council of 24 October 2006 establishing the second Marco Polo programme for the granting of Community financial assistance to improve the environmental performance of the freight transport system (Marco Polo II) and repealing Regulation (EC) No 1382/2003 ( OJ L 328, ) Regulation (EC) No 1692/2006 Final COM (2004) 0453 Regulation of the European Parliament and of the Council of 24 October 2006 establishing the second Marco Polo programme for the granting of Community financial assistance to improve the environmental performance of the freight transport system (Marco Polo II) and repealing Regulation (EC) No 1382/2003 (Text with EEA relevance) Communication from the Commission to the Council, the European Parliament, the European Economic and Social committee and the Committee of the Regions on Short Sea Shipping {SEC(2004) 875} Source: Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 32 of 132

33 4 MOTORWAYS OF THE SEA LINES IN THE WESTERN MEDITERRANEAN The Motorways of the Sea lines from/to Italian ports include a large part of the MoS lines present in the Western Mediterranean. The lines identified by the Italian study include all the connections that can be configured as MoS (weekly frequency, ROPAX-RORO ships and also CONRO for regular, reliable services) between Italy and Spain, Italy and France, and for Malta (that is heavily connected to Italy and partly to North-western African countries, while the MoS lines with other European countries standing on the Western Mediterranean are limited). A summary of the analysis of the existing lines carried out by our Maltese partner is contained in chapter 4.3. With regards to the lines between Spain and France, as found in the Spanish study analysis, except for some RORO services (e.g. Barcelona-Fos by the Flota Suadiaz), there are no important MoS connections, as the road alternative continues to be preferred by the loaders due to the advantages in terms of travelling time and flexibility. Most of the lines and load flows leaving Spanish ports are concentrated on the central-southern part of the Italian Peninsula. A summary of the analysis of the existing lines carried out by our Spanish partner is contained in chapter 4.2. Although the French study does not analytically identify the lines leaving ports in the South of France, the analysis of the main corridors shows how the major connections concern Italy (present in the Italian reference database for the lines found), the North-South axis with the countries on the southern coastlines of the Mediterranean (in particular Tunisia and Algeria) with which the country has always had strong economic ties. 4.1 MoS lines from and to Italian ports analysis RORO (all cargo) and ROPAX (mixed cargo-passengers) traffic are the most important parts of the total traffic (excluding bulk liquids and solids) in the analysed ports involved in the study. In the last decade, this traffic has increased greatly. Rolling traffic exceeds 50% of the total in 100 million tonnes of rolling traffic (RORO-ROPAX) and containers. In analysing the traffic regarding unitised loads, RORO-ROPAX and containers, some assumptions were made to better characterise the data for study purposes: Transhipment traffic involving the ports of Gioia Tauro and Cagliari was excluded from container traffic, which took 98% of the total traffic; The traffic arriving at/departing from Messina was excluded from the RORO-ROPAX rolling traffic, as a precaution, that all the rolling traffic that travels through the port of Messina crosses the Strait (territorial continuity); the resulting loads are defined as filtered loads. Table 3 and figures 22 and 23 show the distribution of RORO-ROPAX traffic and containers in the regions involved in the study in In figure 9, the traffic refers to tonnes of goods entering/leaving the ports, while figure 10 shows the number, grouped by region, of the heavy goods vehicles that enter/leave the ports. In the analysis, which focused on RORO-ROPAX rolling traffic, the volumes of containers entering/leaving the ports in the regions involved in the study were also considered, for two reasons: The flow of goods in containers can increase the RORO load under special conditions (the container can be transported on RORO-ROPAX ships on mafy or cassettes, or the goods can be sent directly by the shipping agent, choosing the RORO option); WEST MED MOS MASTER PLAN Page 33 of 132

34 An important container terminal contributes to the development of logistics, which in turn contributes to the development of RORO MoS traffic. This additional information on containers can contribute to improving characterisation of the transport and logistics system scenario in the regions involved in the study, also in relation to evaluation of MoS development potential. The MoS connections taken into consideration in the analysis refer to services leaving the Italian ports involved in the study. The services considered relate to the connection between two Italian ports, the connection between one Italian port and a port in another EU country, and the connection between an Italian port and a port in a non-eu country (that are the countries on the south coast of the Western Mediterranean). The services complying with frequency (at least once a week), regularity and reliability requisites characterising the MoS were taken into consideration in the analysis. Moreover, the MoS services analysed in the study concern, in particular: a) ROPAX services (mixed cargo-passengers and accompanying cars), the largest number; b) RORO services (cargo only, or with a limited number of passengers on board, including the HGV drivers); c) CON-RO (RORO and Container) services, of which there are fewer, that usually connect countries on the south coast of the Mediterranean and can follow long routes, with several intermediate stops. Sometimes, the final destination is outside the area that the project is concerned with. Currently, the RORO services segment in the MoS, which uses container ships and vertical loading systems (wharf cranes) is not very significant in the area involved in the study. Container transport takes place to a limited extent using RORO-ROPAX ships, while the CON-RO services mentioned above are more significant, e.g. the services that connect Genoa with some African countries, taken into consideration when compliant with MoS conditions, that are however limited as found in the working lines database developed by the study. The type of loads considered are the following: Lorries (accompanied by driver); Semi-trailers and trailers; Mobile crates for road transport; Mobile crates for rail transport; ISO containers; Containers optimised for palletised loading; Other types of loads for RORO ships, which include special loads; or a load that can be transported on mafy or special large pallets (cassettes) that may be steel (coils) or containers (two 40 feet or four 20 feet). The existing Short Sea Shipping lines, in particular the ones that can be configured as MoS (within the MoS concept of the regional contexts taken into consideration), are shown in the tables below, divided by final destination. WEST MED MOS MASTER PLAN Page 34 of 132

35 Port of origin Port of destination Table 3 Mos links between Italian ports Intermediate calls Group Trip per year Civitavecchia Cagliari TIRRENIA 364 Genova Cagliari GRENDI 208 Napoli Cagliari DI MAIO LINES 13 Napoli Cagliari TIRRENIA 65 Salerno Cagliari GRIMALDI LINES 156 Civitavecchia Catania GRIMALDI LINES 104 Corigliano C. Catania USTICA LINES 156 Genova Catania GRIMALDI LINES 156 Napoli Catania TTT LINES 364 Civitavecchia G. Aranci LOTA MARITIME 78 Napoli G. Aranci DI MAIO LINES 13 Catania Livorno GRIMALDI LINES 104 Cagliari Livorno MOBY 52 Cagliari Livorno TIRRENIA 260 G. Aranci Livorno LOTA MARITIME 455 Olbia Livorno Via Cagliari 1 time a week LOTA MARITIME 312 Olbia Livorno MOBY 546 Olbia Livorno MOBY 364 Olbia M. Carrara Via Cagliari 1 time a week NIEDDU 312 Olbia M. Carrara SAT 156 Salerno Messina CARONTE L. 650 Civitavecchia Olbia MOBY 182 Civitavecchia Olbia SNAV 299 Civitavecchia Olbia TIRRENIA 546 Genova Olbia GNV 91 Genova Olbia MOBY 208 Genova Olbia TIRRENIA 182 Genova P. Torres GNV 247 Genova P. Torres MOBY 91 Genova P. Torres TIRRENIA 364 Cagliari Palermo TIRRENIA 52 Civitavecchia Palermo GNV 169 Civitavecchia Palermo SNAV 39 Genova Palermo GNV 312 Livorno Palermo GNV 156 Napoli Palermo SNAV 364 Napoli Palermo TIRRENIA 364 Olbia Piombino MOBY 364 Olbia Piombino MOBY 364 Genova Termini Im. T-LINK 312 Savona Termini Im. LOTA MARITIME 208 Cagliari Trapani TIRRENIA 52 Civitavecchia Trapani GRIMALDI LINES 52 Livorno Trapani USTICA LINES 104 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 35 of 132

36 Table 3 contains the MoS lines that connect Italian ports to each other, with an indication of any intermediate stop-offs and the number of trips per year. Tables 4, 5 and 6 contain the same information for the lines that connect the ports of Italy and Spain, Italy and France and Italy and Malta respectively. Table 4 Mos links between Italy and Spain Port of origin Port of destination Intermediate calls Group Trip per year Genova Barcellona GNV 260 Livorno Barcellona GRIMALDI LINES 156 Genova Castelon ENCO 52 Salerno Tarragona GRIMALDI LINES 52 Salerno Tarragona TARRACO L. 52 Cagliari Valencia GRIMALDI LINES 156 Livorno Valencia GRIMALDI LINES 104 Livorno Valencia MARITIME 104 Palermo Valencia GRIMALDI LINES 52 Salerno Valencia GRIMALDI LINES 156 Catania Barcellona Via Civitavecchia GRIMALDI LINES 156 Civitavecchia Barcellona Via P. Torres 3 times a week GRIMALDI LINES 312 Civitavecchia Tarragona Via Livorno GRIMALDI LINES 104 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Table 5 Mos links between Italy and France Port of origin Port of destination Intermediate calls Group Trip per year Genova Bastia MOBY 91 Savona Bastia LOTA MARITIME 182 P. Torres Marsiglia Via Propriano CNM - SNCM 117 Livorno Tolone Via Bastia LOTA MARITIME 494 Livorno Tolone MARITIME 156 Livorno Tolone Via Bastia MOBY 299 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Table 6 Mos links between Italy and Malta Port of origin Port of destination Intermediate calls Group Trip per year Augusta Malta USTICA LINES 52 Salerno Malta GRIMALDI LINES 52 Civitavecchia Malta Via Catania GRIMALDI LINES 52 Civitavecchia Malta Via Catania GRIMALDI LINES 104 Genova Malta Via Catania GRIMALDI LINES 104 Livorno Malta Via Palermo GNV 52 Pozzallo Malta Via Catania 4 times a week VIRTUS FERRIES 442 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 36 of 132

37 Table 7 contains the MoS lines that connect the Italian ports with the ports in Tunisia, Algeria, Morocco and Libya. Some of these lines have intermediate ports of call. The CON-RO ship services have more intermediate ports of call. Table 7 MoS links between Italy and southern Mediterranean Countries (central - west side) Port of origin Port of destination Intermediate calls Group Estimated Trip per year Genova Tunisi COTUNAV 117 Genova Tunisi Via Malta GNV 104 Livorno Tunisi COTUNAV 104 Genova Tunisi La Spezia, Napoli MESSINA 52 Civitavecchia Tunisi GRIMALDI LINES 52 Salerno Tunisi GRIMALDI LINES 52 Salerno Tunisi Via Palermo GRIMALDI LINES 104 Palermo Tunisi GNV 52 Trapani Tunisi GRIMALDI LINES 52 Salerno Tripoli Via Malta GRIMALDI LINES 52 Genova Algeri La Spezia MESSINA 52 Genova Tangeri Via Barcellona GNV 104 Genova Tripoli GRIMALDI LINES 52 Civitavecchia Tripoli GRIMALDI LINES 52 Salerno Tripoli GRIMALDI LINES 52 Palermo Tripoli GRIMALDI LINES 52 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Table 8 shows the information on lines that have long routes with several intermediate stops, that may concern both EU countries and non-eu countries, and that may also reach final destinations outside the Western Mediterranean. Table 8 Mos links between Italy and other countries long circular services Port of origin Port of destination Intermediate calls Group Estimated Trip per year Genova Malta Marsiglia, Castellon, Napoli MESSINA 52 Salerno Savona Setubal, Bristol, Cork, Antwerp, Southamptom - Euro Med service GRIMALDI LINES 52 Salerno Valencia Palermo,Pireus, Beirut, Lattakia, Gemlik - Euro Agean Service GRIMALDI LINES 104 Savona Valencia Fos, Barcelona West-East Med Service GRIMALDI LINES 208 Genova Beirut Livorno, Barcellona, Tarragona, Valencia, Misurata NORDANA LINE 52 Genova Bengasi Malta, Marsiglia, Misurata, Tripoli, Khoms, Napoli MESSINA 52 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 37 of 132

38 The lines considered, which concern all connection both RO-PAX and RO-RO, were identified by specific sector searches and by interaction with the stakeholders. Regional coastal ship connections between two ports in the same region, including the ones in the larger islands and connections with the first port of destination outside the Western Mediterranean were not taken into consideration. The analysis provides an instant photograph of the services running during the study period, which are continually evolving, with the introduction of new lines and the cancellation of others. The identified lines, which do not include all the running services, certainly bring together the most important part of the lines of interest. The information on these services is a reliable instrument used in the analyses carried out in the study. Most of the existing lines are point to point services; some make one intermediate stop-off (e.g. the lines connecting Italy and Spain, with an intermediate stop-off in Sardinia) or connections with France, with an intermediate stop-off in Corsica. Some lines stop in several intermediate ports before reaching their final destination, which may be in Italy, in a European country or in a non- European country in the area. Ligurian ports are the main ports of access to Europe, for container traffic. As seen in figure 21, all the regions have a port system that can handle rolling traffic and container traffic. This may contribute to the growth in logistics activity and the availability of additional loads, which the MoS RORO-ROPAX services could benefit from. The total volume of rolling RORO-ROPAX loads, handled while entering/leaving the ports considered in the year 2009, was about 3 million HGVs (excluding the ones that cross the Strait of Messina, which continue to travel on the continent by road, according to the project's assumptions). Rolling RORO-ROPAX traffic volumes are well-balanced in almost all the regions, with the exception of Calabria, as can be seen in figure 20. In Calabria, the HUB container terminal in Gioia Tauro is significant (the largest Italian transhipment terminal and one of the most important in the Mediterranean), which however develops transhipment services (excluded from the analysis), in addition to the terminal at Corigliano Calabro where a first ROPAX line between Corigliano Calabro and Catania was set up only in TOSCANA 19,4% RORO - ROPAX CALABRIA 0,0% CAMPANIA 21,3% SICILIA 17,5% LAZIO 7,8% SARDEGNA 18,2% LIGURIA 15,8% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 21 - Volumes of rolling RORO-ROPAX traffic by region (in %) WEST MED MOS MASTER PLAN Page 38 of 132

39 Source: TLS EUROPE elaboration, Report of Italy West Med Mos Master Plan Figure 22 - RORO and Container traffic volumes by Region (in millions of tonnes, filtered scenario) Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 23 - Number of vehicles arriving/departing by Region WEST MED MOS MASTER PLAN Page 39 of 132

40 TOSCANA 12,1% SICILIA 20,2% SARDEGNA 17,3% Table 9 Rolling RORO-ROPAX traffic volumes by Region in tonnes and number of vehicles Nr. Of REGION % RO-RO TONN. % TOTAL TONN. % VEHICLES CALABRIA** 0 0, , ,6 CAMPANIA , , ,4 LAZIO , , ,8 LIGURIA , , ,6 SARDINIA , , ,5 SICILY , , ,5 TUSCANY , , ,6 TOTAL * Filtered data of RORO traffic in Messina that assumes the majority of territorial continuity and crossing of the Strait. ** Data filtered by transhipment traffic that is calculated as 98% of the total. LINES CALABRIA 1,7% LIGURIA 20,8% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan CAMPANIA 16,2% LAZIO 11,6% SICILIA 19% TOSCANA 15% DEPARTURES CALABRIA 1% CAMPANIA 11% LAZIO 11% SARDEGNA 25% LIGURIA 18% NR. OF HEAVY GOODS VEHICLES TOSCANA 19% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 24 - Lines, departures and volumes of rolling loads (number of HGVs) division by Region SICILIA 18% SARDEGNA 19% CALABRIA 0% CAMPANIA 20% LAZIO 8% LIGURIA 16% LINES BY AREA DEPARTURES BY AREA LINES BY TYPE OF SHIP EXTRA-EU 19,6% ITA 46,4% EU 20,5% EX-EU 6,9% RORO 46,8% EU 33,9% ITA 72,6% ROPAX 53,2% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 25 - Analysis of line and departures by area of destination and lines by type of ship WEST MED MOS MASTER PLAN Page 40 of 132

41 The distribution of lines departing from the ports included in the study, studied in relation to the division of handling rolling traffic in the ports, and considering the frequency of the lines and the seasonality of services, maintains the same division characteristics in the various regions. The division of the lines by final destination area shows the predominance of connections between Italian ports, while the division by type of ship shows a prevalence of the use of ROPAX ships. The type of operators and the distribution of the lines regarding the services included in the study are summarised in figure 25 and in table 10. LINES BY TYPE OF OPERATOR LINES BY SHIPPING GROUP MONOLINE 57,1% 2 LINES 14,3% LOTA MARITIME 6,2% MOBY 8,3% TIRRENIA 9,4% GNV 10,4% 3-6 LINES 14,3% MESSINA 4,1% USTICA LINES 3,1% SNAV 3,1% 8-10 LINES 10,7% MARITIME 2,1% HARTEL 2,1% COTUNAV 2,1% > 20 LINES 3,6% DI MAIO L. 2,1% MONOLINE 15,6% GRIMALDI LINES 31,3% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 26 - Line operators, type of services The type of operators running the lines considered is well-balance between large groups, medium and small companies that mostly run one line only. With a view to developing services by greater integration into a MoS network, these leaves large margins for development, for both the largescale operators such as the Grimaldi Group that already partly integrates its services, and for the small-scale operators who run one line only from point to point. Table 10 Analysis of lines by ship-owning group NUMBER OF LINES PER OPERATOR OPERATOR TOTAL NUMBER OF LINES % OF TOTAL SINGLE-LINE CARONTE, SNCM, COMANAV, GRENDI, ARMAMENTO SARDO, MEDEX, NORDANA LINE, ENCO, POL-LEVANT SHIP, FAST LINE, SAT, TARRACO L., T-LINK, TTT LINES, VIRTUS FERRIES ,6 % 2-3 LINES DI MAIO LINES HARTEL POL-LEVANT S. TTT LINES SNAV USTICA LINES 14 14,6% 5-10 LINES MESSINA LOTA MARITIME - MOBY 18 18,7% LINES GNV - TIRRENIA 19 19,8% 15 LINES GRIMALDI LINES 30 31,3% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan The small operators may respond positively to any incentive-providing measures and experiment new grouping and business models with other operators, which allow them to optimise synergies, quality improvement and competitiveness of market services. WEST MED MOS MASTER PLAN Page 41 of 132

42 4.2 Analysis of lines from/to Spanish ports To analyze the offering of short sea shipping services between Spain and Italy, the Short Sea Promotion Center Spain Data Base has been considered, as it includes all regular maritime services with from a global perspective. According to this source, there are currently 136 regular routes between Spain and Italy (some are focused on passenger, being Ro-Ro complementary). These lines connect 13 ports of the Spanish Mediterranean with 16 in Italy. Concerning their origins and destinations, five ports (Barcelona, Valencia, Tarragona, Alicante, Algeciras and Huelva) account for 83% of the lines in Spain: Barcelona means 32% and Valencia 26%. The main connections are made with Italian ports of Genoa, Salerno, Livorno and Taranto, which represent 51% of total lines. Regarding the distribution of weekly service, the ports of Barcelona, Valencia and Tarragona represent 82% of frequencies. It relates to the number of connections and is reflected in the weight of freight traffic with Italy: is 68% of the total exchanged between the Spanish and Italian Mediterranean ports. The highest number of weekly frequencies is established with the ports of Genoa, Livorno, Civitavecchia and Salerno, which represent 62% of the total frequencies Spain- Italy. Source: Shortsea Promotion Centre Spain Source: Report of Spain, West Med Mos Master Plan Figure 27 - SSS Spain-Italy connections at the Mediterranean Sea Concerning the Spanish- French connections and using the same data source, there are currently 35 scheduled maritime SSS lines between Spain and France at the Mediterranean Sea. These services can not be considered Motorways of the Sea (as the current MOS lays on the Atlantic arc): they have stops at ports in other countries, low frequencies, the Ro-Ro mode is combined with other forms (like containers), etc. These 35 lines connect nine ports at the Spanish Mediterranean arc with four French ports. Regarding their origins and destinations, 80% of the lines are concentrated in the ports of Barcelona, Valencia, Algeciras and Alicante (Barcelona accounts 31% of total while Valencia means 20%).In France the main connections are established with the ports of Marseille and Fos sur Mer which account for 91% of total lines. WEST MED MOS MASTER PLAN Page 42 of 132

43 Source: Shortsea Promotion Centre Spain Source: Report of Spain West Med Mos Master Plan Figure 28 - SSS Spain-France connections at the Mediterranean Sea Concerning, the distribution of weekly services, ports of Barcelona, Valencia and Algeciras account for 73% of total frequencies. These ports represent 70% of the total trade through the Spanish Mediterranean ports and France. On the French side, Fos sur Mer and Marseille account for some 87% of the total frequencies Spain-France. Eventually, regarding Spain- Malta connections, currently there are nine scheduled services between the two countries (although some of these services stop at ports in other countries and they are focused on container traffic). Seven services sail from Barcelona and two in Valencia, while the destinations are located in the Maltese ports of Valletta and Marsaxlokk. Besides, the main ports of Mediterranean study area have been analyzed. The results are presented as a tab giving special attention to the RoRo traffic. This description covers the following aspects: Overview (general characteristics and summary of traffic); Access and services by different transport modes; Ro-Ro Terminals; Services SSS (current and forecasted). Source: Report of Spain : West MoS Master Plan Figure 29 - Mediterranean Ports analyzed WEST MED MOS MASTER PLAN Page 43 of 132

44 Table 11 Analysis of lines from Spain to France Source: Report of Spain : West MoS Master Plan WEST MED MOS MASTER PLAN Page 44 of 132

45 4.3 Analysis of lines from/to Maltese ports Malta's ports, in particular the port of Marsaxlokk, can count on a close network of connections for container transport, represented by the feedering lines and the large container ships that operate several stops in the Western Mediterranean and that call in at Malta. Malta is therefore well-connected with regards to container transport. With regards to rolling RORO load traffic, in particular for MoS lines, the reference port is Valletta, where there are several terminals destined for this type of service. The Port of Valletta is mostly geared towards the movement of dry bulk goods as well as Ro-Ro mobile non-self propelled units. The most important maritime links to/from Valletta are Genova, Civita Vecchia, Catania, Salerno, Pozzallo, and Reggio. These ports are serviced regularly by the main RoRo and ferry shipping lines including the Grimaldi Group Naples and Grandi Navi Veloci, The table below summarises the RoRo links offered by the Port of Valletta that are of relevance to MoS: Table 12 Analysis of RORO lines that depart from Maltese ports Source: Report of Malta, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 45 of 132

46 5 IDENTIFYING PORT CLUSTERS In this section, the possible grouping of ports into clusters is analysed. For Italian ports, the analysis has been carried out in the study, also with a contribution by the subjects who have the task of defining development strategies and planning port, sea transport, logistics and intermodal matters, in the various regions of interest. With regards to the ports in other partner countries involved in the project, the hypothesis of grouping ports into clusters follows a criteria of regional aggregation. In particular, for Spanish port clusters, as shown in greater detail in paragraph 5.2, macro-areas were identified which refer to geographical and infrastructural similarities and complementary characteristics (road and port) named Sea Fronts which are the equivalent to the Port Clusters developed in the Italian study. Again, on the basis of the method contained in the Spanish Master Plan, the port cluster that includes ports in the South of France was identified, which is briefly analysed in paragraph 5.3. With regards to the group of Maltese ports, they refer to a single port cluster in a strategic position in the Central Mediterranean area, as looked at in more detail in paragraph Identifying Italian port clusters The analysis of the port and logistics system in the regions involved in the study, and in particular the interaction with the stakeholders, analyses on transport and logistics development plans on a regional level and the analysis of Port Authorities strategic development plan have, brought about the identification of 6 potential port clusters, listed in sequence from North to South: Liguria port cluster, Tuscany port cluster, Lazio and Campania port cluster, Sardinia port cluster, West Sicily port cluster East Sicily and Calabria port cluster An overall view of the clusters identified in the study can be seen in figure 30. Integrating the ports into a cluster is a possible development mode for port systems, aimed at optimising synergies and complementary characteristics, specialising functions, integrating logistics services and activities and sharing development and communication strategies. Although Genoa is the most important port, La Spezia and Savona could contribute greatly to the cluster structure. There is already a permanent form of collaboration between the ports that has been well developed, in particular for communication and marketing activities. The cluster of Tuscany ports identifies Livorno as the most important port as Marina di Carrara and Piombino are markedly smaller in size. There are however, specialisation and complementary characteristics in the offer of infrastructures and services, which are compatible with a harmonious development of the cluster. The cluster would act as a gateway in the north Tyrrhenian Sea, destined for traffic heading towards North Italy and the North/Northeast of Europe. A possible option of integrating Livorno (and perhaps Marina di Carrara) with Liguria s ports also emerged in the analysis, thus forming a large cluster in the north Tyrrhenian Sea. A connection with the port of Ravenna could also be activated via Livorno, thus providing the cluster with access to the Adriatic Sea. The Campania (Naples and Salerno) and Lazio (Civitavecchia) ports cluster could be an important gateway for access to Europe, in the Centre-South of Italy, but could also be a single important WEST MED MOS MASTER PLAN Page 46 of 132

47 transit area for goods that move across the Mediterranean from Spain-Portugal to the Balkan States and the surrounding non-eu areas. By integrating the connection between Civitavecchia and the ports of Pescara and Ancona in the centre and the connection between the port of Salerno with the port of Bari, it would be possible to continue across the Adriatic Sea to East European destinations. Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 30 - Representation of potential port clusters The Sardinia ports cluster, comprising the ports in the north of the island and the port of Cagliari, could become the access to a logistics platform in the Sardinia region, at the centre of North-South and West-East flows in the Western Mediterranean, and play an important RORO-ROPAX HUB role for transhipment services serving the MoS. The port system in Sardinia is already rather well integrated in shared strategic development projects. The central position of this cluster can be seen in the network of existing connections with all the other clusters identified and on the basis of its 6800 (approximately) annual departures, which correspond to about 130 departures per week on average throughout the year, it can legitimately become a candidate for the role of important RORO-ROPAX transhipment junction in the centre of the Western Mediterranean. The creation of such a strategic junction could help cross-connections between Italian ports, other European countries and the southern coastline of the Mediterranean sea. These connections may not only involve the larger ports but also aid the growth of connection in the smaller port areas, thus increasing accessibility and bringing the areas involved closer to the market. The Western Sicily (Palermo, Termini Imerese and Trapani) ports cluster could play a priority role in serving the western part of the island, and in developing connections with the other ports in the western Mediterranean; in particular, the function already carried out by the ports of Trapani and WEST MED MOS MASTER PLAN Page 47 of 132

48 Palermo, a triangulation junction for lines connecting Tunisia with the ports of Salerno and Civitavecchia could also be developed. The East Sicily ports cluster, which could include Augusta, Catania, Messina and Pozzallo, could also be extended inter-regionally and include Calabrian ports, in particular Gioia Tauro, thus becoming an important connection cluster between the Eastern and Western parts of the Mediterranean. The potential for development of these clusters would be enormous. All we need to consider is the availability of areas that could be available for MoS development in the ports of Augusta and Gioia Tauro. The option of a single large European port cluster that includes both Italian and Maltese ports is an option that would need to be evaluated from both a technical and political point of view as it would be strategically important. 5.2 Possible Spanish port clusters In the case of Spain, the document "Study on Motorways of the Sea", General Base for the Project WEST-MOS, Puertos del Estado (November 2006) was taken as reference be consistent with previous studies of Puertos del Estado. This source material has been supplemented by the analysis of time and transport costs. This process leads to consider initially within the study area the Autonomous Communities of Spain, regions in France, Italy and Malta showed on the following figure. Based on the study area defined, the subareas of the study area have been structured in Sea Fronts, equivalents to the Port Cluster definition, attending to geographic and infrastructure affinity criteria (in terms of road and ports infrastructures). Additionally, this port sea structure allows the incorporation of the service availability criteria of the freighter, allowing a transparent election between services offered by ports located at the same sea front. In Spain the study area has been structured on a seven sea fronts or facades, there have been defined four sea fronts: Corredor del Ebro (with three areas: Catalonia, North Aragon and North); Levante Central (with three areas: Valencia North, Centre- East and Madrid); Levante Sudoeste (one subarea); Levante Suroeste (with three subareas between Andalucia and Extremadura). WEST MED MOS MASTER PLAN Page 48 of 132

49 5.3 Possible French port clusters Source: Report of Spain : West MoS Master Plan Figure 31 - Malta, Spain, France Sea fronts definition The French port cluster identified includes the ports on the south coast of France and in particular, the ports of: Marseilles - Fos Toulon Sète 5.4 Possible Maltese port cluster As found in the study, the Maltese port cluster is formed by the group of Maltese ports that, thanks to their advantageous position compared to the traffic flows that move horizontally East- West and vertically along the North-South axis, aim to act together as an important hub and central junction for the Central Mediterranean connection network. As hypothesised in the Italian study, the Maltese cluster could also be extended and include the ports of the nearby, complementary East Sicily and Calabria cluster, with which it already has strong connections. WEST MED MOS MASTER PLAN Page 49 of 132

50 6 PROPOSALS RECEIVED IN RESPONSE TO THE CALL FOR PROPOSALS 8 projects were submitted in response to the call for proposals launched by the Ministry of Infrastructures and Transports of the Italian Republic, Ministère de l Ecologie, de l Energie du Développement Durable et de l Aménagement du Territorie of The French Republic,the Malta Maritime Authority and Ministerio de Fomento of the Kingdom of Spain on 25 June 2009 and which ended on 31 December 2009, as part of the West Med Corridors project, which is summarised below. During the first six months of 2010, the proposals were analysed by the project partners, to better understand their status (mature proposal or project idea). The proposals which were mature enough for formulating a project, show the MoS development needs in greater detail. The degree of detail contained in the projects was not uniform but still important as to the dynamics that characterises the regions involved in the study in the development of new MoS initiatives. 1) Rail-Ferry Intermodal Shift Project foresees sea and rail connections between the North- South of Italy and Malta, the expansion of sea services for trailers in transit between Catania and Malta and the introduction of an intermodal sea/rail service for containers between Treviso Naples Catania and Malta. The service will supply a train per week between Treviso and the Ferport rail terminal in Naples and a weekly MoS service between the port of Naples, Sicily and Malta. The project includes both research and operational activities for the development of sustainable, intermodal transport and logistics activities. 2) New MoS connection between Sète (France) and Genoa (Italy): The aim of the project is to provide a credible alternative solution to the traditional road route in the southeast of France, in particular to reduce traffic on the A8 motorway and in the Ventimiglia area in the border area between Italy and France. The project propose to establish a new, regular, frequent (three trips per week using six ships) high quality cargo maritime service between Sète (South France) and Genoa (Italy), removing large amounts of trailers (the goal is to reach 10% modal shift in five years) from the already congested motorway system that connects Southern France with Italy, eliminating the bottlenecks that form on the border roads and reducing the external transport costs, in particular CO2 emissions, polluting agents, accidents and travel times. 3) New MoS connection between Marseilles-FOS (France) and Savona (Italy): The aim of the project is to provide a new daily MoS connection between the ports of Marseilles-FOS and Savona, for transporting ISO containers and unaccompanied vehicles by sea, for the transport of general cargo and/or chemical and petroleum products. Departures would be daily from both ports, with an intermediate port of call in Nice. The service will be carried out by four RORO ships, using an innovative concept as barger plus pusher system with LNG propulsion, equipped with bow and internal ramps for horizontally handling the loads. 4) Euro Med Blue Bridge Civitavecchia (Italy) Toulon (France): The project aims at developing mixed passenger/goods services (ROPAX) in the mid-term, first of all in the Western Mediterranean between France and Italy and then later towards Spain. In the long-term, also towards the Eastern Mediterranean (Greece, Turkey, Cyprus) and the Southern Mediterranean (Algeria, Tunisia, Libya). As soon as the acquired traffic capacity is solid and stable, a specific RORO service (and car-carrier) will be implemented on certain routes. 5) New MoS connection between Toulon-Bastia-Civitavecchia/ASAP Alternative Solution to Alps Passale: The project promotes and develops complementary and WEST MED MOS MASTER PLAN Page 50 of 132

51 alternative services to road transport and aims to reactivate the MoS connection between Central Italy and the South of France, which after running for three years, was interrupted at the beginning of 2009 due to the negative economic period (especially due to the high cost of fuel). The new scheduled service foresees a port of call at Bastia (Corsica), thus providing a new passenger and cargo service, and creating additional value without excessive additional costs. The service is open to all heavy vehicle categories (without size limits), new cars, light commercial vehicles and passengers. 6) Improvement/consolidation of the MoS connection between Livorno (Italy) and Barcelona (Spain): The project aims to consolidate and develop the logistics chain between the ports of Barcelona and Livorno, by improving the maritime service and infrastructures, accessibility and the quality of services in both ports. The MoS service between the two ports currently runs three times a week. The intention is to attract higher traffic volumes from the northwest and eastern regions of Italy, the Spanish peninsula and also from Member States in the East of Europe. The increase in the ROPAX service will help companies to consolidate their logistics chains, reduce harmful emissions and congestion on the motorway system that connects Spain to the South of France. 7) Improvement/consolidation of the MoS connection between Civitavecchia (Italy) and Barcelona (Spain): The proposed action contributes to the increase and improvement in reliability and quality of the service that currently connects the two ports. The service is currently daily, carried out by two ROPAX ships (with a capacity of 187 trailers, 150 cars and 2300 passengers) with a stop in the port of Porto Torres. The proposed action has three main missions: Contributing to improving the quality of the sea service by improving the connections and accessibility in the ports of Civitavecchia and Barcelona, in order to reduce the entire transit-time, improve Sardinia s accessibility, promote better integration of the door-to-door intermodal transport chain between Spain and Italy. 8) Improvement/consolidation of the MoS connection between Genoa (Italy) and Barcelona (Spain): The aim of the project is to consolidate and develop the logistics chain between the port of Genoa and Barcelona by improving the sea service that connects the two ports, the relative infrastructures, their degree of accessibility and the quality of port services. The project will increase frequency of the service from four to six departures per week and will make improvements to infrastructures and services (flooring, signal systems, illumination, fingers for passengers) in both ports. In particular, by creating the short-stay car park and the fingers in the Ponte Caracciolo area in Genoa, and by improving the degree of accessibility, the infrastructures and the port facilities in Barcelona. In particular, it must be emphasised that the 2 proposals below have best satisfied the requisites foreseen by the Ten-T Call. MoS Toulon-Bastia-Civitavecchia/ASAP Alternative Solution to Alps Passale Improvement and consolidation the motorway of the sea between the Port of Livorno (Italy) and the port of Barcelona (Spain). The figure below shows the improvements to MoS connections that will be found after developing the projects stated above. WEST MED MOS MASTER PLAN Page 51 of 132

52 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 32 - Routes individuated with in the West Med Corridors Call for proposals WEST MED MOS MASTER PLAN Page 52 of 132

53 7 IDENTIFIED CORRIDORS On the basis of the supply and demand analysis, and in particular in light of the current state of the RORO-ROPAX services in the Western Mediterranean, the four strategic corridors of great importance for the development of the Motorways of the Sea, in the Western Mediterranean were identified. The analysis was focused in particular on existing lines, current rolling traffic volumes and on a distribution scenario using new connections. The corridors identified make up the proposal for the redefinition of the TEN-T network, and in particular for the reconfiguration of the MoS (Priority Project 21), with the definition of the sea corridors, similarly to what was done for the trans-european land transport network. Two of the four corridors are developed along the vertical axis (Corridor IA and Corridor IB), which are strategically important as they contribute to connecting the South of the Mediterranean to the centre of Europe, in particular, and are an important part of the MoS network, aimed at integrating the TEN-T network, which is developed in Europe, with the Trans Mediterranean Transport Network (TMT Network) that involves the countries standing on the southern coasts of the Mediterranean and more generally in Africa. The other two corridors (Corridors II and III) are developed along the horizontal axis and make up the connection between the southwest part of Europe, the Balkans and the large corridors to Eastern Europe (TRACECA corridor). The expansion and improvement of existing transport structures and systems, and support for the development of traffic in these corridors is not only a great contribution to support for the EU system development, but is also a tangible action aimed at strengthening the EU neighbourhood policy for greater integration of the European economy with that of the areas adjacent to EU member states. Sea corridors, like the TEN-T land network and its corridors, originate from the need to concentrate traffic flows along strategic axes and make services more efficient and competitive, with the aim of aiding trade within Europe, but also of creating a system that can favour transit of goods across Europe that originate from or are destined for countries and continents adjacent to the EU. The corridors have also been selected to be compliant with the need for new MoS lines and the needs for expanding existing lines, which emerged through interaction with the stakeholders, and through the West Med Corridors call, which aimed to identify new MoS projects. An analysis of the existing lines has shown that there is a fairly well-balanced distribution of departures in most of the area involved in the study. These lines are mainly developed on the vertical north-south axis with the exception of some connections with Sardinia and Corsica that are developed horizontally. The lines with destinations in the EU ports are mostly horizontal, and involve connections to Spain; the vertical ones, which are a minority, concern connections of the Italian ports in question, including Sardinian ports, with ports in France and Malta. WEST MED MOS MASTER PLAN Page 53 of 132

54 7.1 Corridor IA Corridor IA concerns traffic flows that are developed along the vertical axis and that involve departures from the ports in the area, mainly Italian ports involved in the study, including the ones on the main islands (Sicily, Sardinia and Corsica), in a north-south direction and vice versa. The sea corridor is integrated with the TEN-T network, in particular with the Corridor of the Two Seas (Genoa Rotterdam) and Corridor I (Palermo Berlin), indicated in figure 33, whose sea corridor in question (Corridor IA) can be a valid complementary option for some stretches, which is already operational. Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 33 - West MED MOS Corridor IA Figure 33 also contains the main port clusters involved. Figure 34 contains the overall traffic flows of rolling RORO traffic in the corridor, relating to the current scenario, expressed in the number of heavy vehicles. About 1.4 million heavy vehicles travel along the corridor. The lines considered have been identified according to the presumptions contained in chapter 4, and mainly include services carried out with RORO and ROPAX ships. The lines in Corridor IA include the lines that originate from and arrive at Italian ports, lines that connect the ports in the regions involved in the French study and a part of the lines (or part of the load) attributed to the corridor that connects the Maltese ports. WEST MED MOS MASTER PLAN Page 54 of 132

55 The extraordinary importance of MoS services along this corridor, that make up the complementary sea option to land transport services along the TEN-T Palermo-Berlin (Corridor I)is clear. It can be stated that the sea option already available accelerates the usability of a connection scenario that will be fully implementable by land, in the mid-long term, when the foreseen infrastructures in the land corridors will be completed. The MoS services along the IA corridor that currently permit a significant transfer of traffic from road to sea offer a wide variety of connections and large hold volumes, that can be used by the load originating from/arriving at other EU countries for sea connections between two Italian ports. The rolling load (RORO-ROPAX) traffic flows in the current scenario are shown in table 13 for Corridor IA, referring to the year Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 34 - Loads transported in the West MED MOS Corridor IA Table 13 Scenario 2009 for rolling load flows in the corridors CORRIDORS ROLLING LOAD VEHICLES ROLLING LOAD TONS LINES DEPARTURES CORRIDOR I A Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 55 of 132

56 7.2 Corridor IB Corridor IB is developed along the vertical axis and is the integration of the ports along the south coasts of the Western Mediterranean towards Italian, French and Maltese ports in the regions of interest and in Europe; the corridor connects with the TEN-T network in the Corridor of the two Seas and in Corridor I (Palermo-Berlin), creating a complementary option to the latter, in its part in Italian territory. Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 35 - West MED MOS Corridor IB Figure 36 shows the existing MoS lines with origin/destination in EU ports (Italian and Maltese coasts) in correspondence with Corridor IB. The main lines considered that connect the countries on the southern coasts of the Western Mediterranean. There is a large amount of traffic found in this corridor, more than 166 thousands heavy vehicles, more than one third of the traffic involved in all the connections between Italian ports in the regions involved in the study and ports in other EU countries. The sea transport services in this corridor could have a great stimulus from greater integration with the services for connections between European ports part of Corridor IA. In particular for the connection of these countries to Europe, the integration of origin/final destination transport services between the two continents, via intermediate ports of call, could be extremely significant. Suitably structuring a network of connections with intermediate ports of call may permit greater volumes and therefore lower transport prices, greater capillarity of connections, allowing transport by sea as far as the nearest port to the final destination. The ports in the large islands in the area, WEST MED MOS MASTER PLAN Page 56 of 132

57 Malta, Sicily and Sardinia can play a very important role as an MoS Hub in this way, as other ports located along the Italian peninsula coasts can allow a variety of options for optimising the intermodal chain. The rolling load (RORO-ROPAX) traffic flows in the current scenario are shown in figure 36 and in table 14 for Corridor IB, referring to the year Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 36 - Main existing lines and load flows transported along the West MED MOS Corridor IB The lines considered for calculating traffic volumes connect the countries on the South Coast, located in the Western Mediterranean. The contribution to the total traffic volume in the EU ports involved in the study, for lines that are also developed outside the Western Mediterranean, and that connect important countries on the South Coast such as Egypt, for example, was not taken into consideration. Important connections were also not identified for the purpose of MoS development between countries on the South Coast and Spain. These evaluations strengthen the value of assumption at the basis of realistic traffic evaluations, which are always cautiously conservative. Table 14 Scenario 2009 for rolling load flows in the corridors CORRIDORS ROLLING LOAD VEHICLES ROLLING LOAD TONS LINES DEPARTURES CORRIDOR I B Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 57 of 132

58 7.3 Corridor II Corridor II includes the existing MoS lines that are developed along the horizontal axis of the Western Mediterranean. The main lines connect Spain to Italy and through Italy, Spain and Portugal to the TEN-T network (Corridors I and Corridor V), as shown in figure 38. Corridor II also links with Corridor V identified in the EAST MED MOS project (see figure 55). Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 37 - West MED MOS Corridor II The lines between France and Italy, the cluster of French ports with the cluster of Liguria ports are also included in the corridor. A load flow of about 195 thousand heavy vehicles was identified along the corridor. Volumes were calculated by taking into account all the lines that connect Spain to the ports in the regions involved in the study, and which interest the cluster of Liguria ports, the cluster of Tuscany ports and a selection of the lines that involve the ports of Civitavecchia and Sardinia. The rolling load (RORO-ROPAX) traffic flows in the current scenario are shown in figure 37 and in table 15 for Corridor II, referring to the year WEST MED MOS MASTER PLAN Page 58 of 132

59 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 38 - Main existing lines and load flows transported along the West MED MOS Corridor III Table 15 Scenario 2009 for rolling load flows in the corridors CORRIDORS ROLLING LOAD HEAVY VEHICLES ROLLING LOAD TONS LINES DEPARTURES CORRIDOR II Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 59 of 132

60 7.4 Corridor III Corridor III runs parallel to Corridor II. It includes the existing MoS lines that are developed along a horizontal axis, and which cross the Western Mediterranean south of Corridor II. The lines involve the connection of France, Spain and Portugal on one side and connection to Italy on the other, and, crossing Italy to the Adriatic Sea, are connected to the TEN-T, in particular to Corridor VIII; and across the East Sicily-Calabria and Maltese ports cluster, to the routes developed in the Eastern Mediterranean (see figure 39). Corridor III integrates with Corridors I, VIII and IX from the EAST MED MOS project (see figure 55). Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 39 - West MED MOS Corridor III Figure 40 also contains the existing MoS lines with Origin/Destination in EU ports, that are developed in Corridor III. The rolling load (RORO-ROPAX) traffic flows in Corridor III, in the current scenario are shown in figure 40 and in table 16, referring to the year A flow of about 133 thousand heavy vehicles was identified in the corridor, which concerns the lines that connect Spain and France to the Lazio and Campania cluster ports, considering all the lines that involve the Campania ports and a selection of the lines that connect the port of Civitavecchia and the lines that connect the East Sicily-Calabria and Sardinia clusters and Malta ports. WEST MED MOS MASTER PLAN Page 60 of 132

61 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 40 - Main existing lines and load flows transported along the West MED MOS Corridor III Table 16 Scenario 2009 for rolling load flows in corridor III CORRIDOR ROLLING LOAD VEHICLES ROLLING LOAD TONS LINES DEPARTURES CORRIDOR III Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan WEST MED MOS MASTER PLAN Page 61 of 132

62 7.5 Overview of the four identified corridors From a comparative analysis of the traffic in the current scenario (year 2009) in the four identified Corridors, the strategic importance of Corridor I (IA and IB) and the significance of the volumes carried by MoS services in sea transport clearly emerges. Corridor I as a whole is a true Motorway that connects the north and south of the Mediterranean, the most important in the entire Mediterranean with regards to MoS services. It is a real bridge between the two shores of the Mediterranean, and a motorway that has frequent connection along the Italian peninsula, that can help an efficient distribution of transit load flows along the Corridor by sea. This allow the stretches of land transport from the ports to the load s final destination to be reduced, with a positive economic, environmental and social impact. Table 17 Scenario 2009 for rolling load flows in the corridors CORRIDORS ROLLING LOAD VEHICLES ROLLING LOAD TONS LINES DEPARTURES CORRIDOR I A CORRIDOR I B CORRIDOR II CORRIDOR III TOTAL Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan This motorway is an important instrument for bringing the countries on the South Coast of the Mediterranean closer to Europe and aid development of Euro-Mediterranean integration policies, help economic development in these countries and provide a more balanced growth in the economies on the two shores of the Mediterranean. LINES PER CORRIDOR DEPARTURES PER CORRIDOR CORRIDOIO 3 11% CORRIDOIO 1 B 18% CORRIDOIO 1 57% CORRIDOIO 3 9% CORRIDOIO 1 A 65% CORRIDOIO 1 B 13% CORRIDOIO 2 14% CORRIDOIO 2 13% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 41 - Lines and departures per corridor WEST MED MOS MASTER PLAN Page 62 of 132

63 7.6 MoS Hubs Potential (Malta study) The importance of Hubs for the Motorways of the sea is supported in this section by a specific analysis developed by our Maltese partners. The study highlights the conditions and requisites that are necessary for achieving feasibility of a Hub junction in an MoS network. The study concerns Malta but contains many reference conditions for the development of MoS Hub projects that are planned in nearby Sicily and Sardinia Traffic Flows on Cluster basis Transport models are used to forecast traffic flows by mode of transport and distance. More specifically, a transport model can: estimate traffic growth on the basis of demographic, socio-economic data (e.g. population, population growth, GDP, GDP growth, etc) simulate modal choice for national and international freight transport and compute the proportion of trips between each origin and destination that use a particular transportation mode; However, there are some limitations in applying this approach to estimate the future MoS traffic that would transit through Malta. More specifically, the following considerations can be made: freight can be imported and/or exported mainly by sea since Malta is an island.therefore, transport operators do not have any modal choice. Malta does not have a significant internal market that could justify relevant growth of the RoRo network. Even if there were to be growth of imports and exports in the coming years, the current RoRo links have spare capacity to allow ship owners to meet the additional demand for additional trucks and trailers without needing to operate new services. Despite these structural limitations in the Maltese market, Malta has key strengths that can foster the development of MoS traffic. More specifically, the following elements can be taken into account: Strategic Location: Malta is located at the centre of the Mediterranean trade routes. Thus, shipping lines calling at Malta are able to serve both east and west Mediterranean markets. Network Connections: Various renowned shipping carriers have chosen the Malta Freeport as their transhipment hub and a feedering network connects Malta Freeport to over 69 ports in the Mediterranean and Black Sea. Furthermore, VGT offers even more connections to smaller European ports, many of which are provided by direct services. Such a concentration of connection increases the magnitude of potential trade that the island may facilitate, and helps in ensuring potential feedering services to be able to drop and load a full ship on every visit to Maltese harbours. Facilities: Whilst deep-water draughts are present at both harbours, the island offers efficient handling for ships of any size. The Grand Harbour is able to efficiently handle panamax container ships whilst also catering for bulk carriers and Ro-Ro vessels, while the Malta Freeport is capable of handling any size of container vessel. Both ports offer competitive turnaround times for their respective vessel classes. Modern Customs Procedures: Malta is recognised to be a leader in e-government innovation. As a result, the customs procedure is renowned to be less painstaking than in neighbouring countries. Furthermore, a recently developed Customs Electronic System allows shipping operators WEST MED MOS MASTER PLAN Page 63 of 132

64 to send required documentation electronically, thereby significantly speeding up the clearance of vessels and allowing operators to monitor the progress of their vessel in real-time. On the basis of the above consideration, Malta could take several steps towards the promotion of the concept of a MoS hub specialised in mixed freight services of trucks and trailers and containers. More specifically, some new services could be operated to link ports in the Western Mediterranean with ports in the Easter Mediterranean via Malta. Moreover, Malta could serve as one of the nodal points between North Africa and Europe. The figure overleaf shows Western and Eastern Mediterranean countries that could be connected via Malta. MoS most promising flows and related links. Given the geographically isolated nature of Malta, as well as its small size, it has been established that there are certain limitations to developing a well-founded case for new MoS traffic originating from Malta. These mainly relate to the fact that since imports and exports are mainly carried on maritime services, transport operators do not have much modal choice, and therefore a substantial modal shift that would warrant the creation of a new MoS route would be difficult to justify. Furthermore, Malta does not have a significant internal market that could justify relevant growth of the RoRo network. Even if there were to be growth in imports and exports in the coming years, shows that the current RoRo links that are available have spare capacity, which allows ship-owners to meet the extra demand for additional trucks and trailers without needing to operate new services. Having said this, the development of MoS services would be more viable through the creation of a transport network that would allow Malta to become a hub port with direct links between Western and Eastern Mediterranean countries. Malta has key strengths that can foster the development of such MoS traffic, namely its strategic location, well developed network connections, efficient handling facilities, and modern, efficient customs procedures. Therefore, as determined in the market analysis, a possible scenario to increase the registered traffic on the MoS services includes the creation of a MoS hub in order to concentrate the RoRo traffic bulk in transit to and from other countries. This would be further enhanced through the introduction of ConRo services, which would increase vessel load factors. Operating in this way the overall cost of transport would be reduced because the total costs would be divided on a bigger paying load. This would reduce the unit cost of transport, thereby promoting more efficient and affordable services that may stimulate the market for MoS services. Within this context, some new services could be operated to link ports in the West Mediterranean with ports in the East Mediterranean via Maltese ports. Moreover, Malta could also serve as one of the nodal points between North Africa and Europe. A number of Western and East Mediterranean countries could thus be connected via Malta, and six possible promising feeder services have been identified as a result of the market analysis, which in four instances link Malta to ports in the West Mediterranean, while two links have been identified to connect the port of Malta with East Mediterranean countries. Should these six new links be implemented, 29 countries could be connected. The feeder links that were identified through the market analysis are presented in the diagram below. WEST MED MOS MASTER PLAN Page 64 of 132

65 Source: PwC elaboration, 2010; Malta Master Plan Report Figure 42 - Hypothesis of feeder services operated from / to the Malta MoS Hub Six possible feeder services have been identified. Specifically, four of these services would link the ports of Malta with ports in the Western Mediterranean while two links have been identified to connect the port of Malta with Eastern Mediterranean countries. The following table lists the countries and the ports that could be connected with Malta using hybrid ConRo services. Table 18 Possible AdM services to / from Malta WEST MED MOS MASTER PLAN Page 65 of 132

66 7.6.2 Demand forecast results Source: PWC elaboration, 2010; Malta Master Plan Report In order to verify if the services listed in the table above are viable in terms of traffic flows, a quantitative analysis of the goods exchanged has been carried out. The most relevant flows and the countries that could be interested in having a MoS hub in Malta have been identified. The demand analysis is based on Eurostat maritime transport statistics (inwards and outwards in main ports by gross weight of goods handled) which include detailed data on RoRo cargo (mobile self-propelled and non-self-propelled units). The following two points should be taken into account before exploring the main evidence coming from the analysis: the Maltese territory, apart from the other Western Mediterranean countries (France, Spain and Italy), constitutes a single region and the definition of interested regions is therefore not applicable; the definition of port clusters was not considered necessary because the geographical proximity of the two Maltese ports and their positioning in the overall study area justify the creation of a single functional port cluster for Malta. Moreover, since Malta is an island, traffic flows move on maritime transport routes while road and rail transport links are not relevant. These considerations make the estimation of potential modal shift, in terms of quota transferred from road to sea transport, irrelevant for the analysis being carried out in this report. In particular, modal shift could be possible only on specific routes, for instance the Spain - Greece/Turkey itinerary where two different transport routes can be hypothesized: Spain Turkey (via Trieste) and Spain Turkey (via Malta). The following figures show the main results of the quantitative analysis providing an overview of the ports among Western and Eastern Mediterranean countries that could be connected with Malta using hybrid ConRo services. Specifically, figures 43 and 44 show the relevant maritime links in detail, providing evidence of traffic volumes (ktons) exchanged on each route, while figure 42 shows an overview of all potential MoS routes hypothesizing Malta as MoS hub: With respect to the links identified in table 18, only four connections appear viable: Italy Malta Spain / France Malta Malta Greece / Turkey Malta Middle East The other links highlighted in table 18 do not appear to be of great interest for the start-up of new MoS connections. According to the data collected, in the short term, the potential market that could be attracted to the Maltese MoS hub, can be summarized as follows: 230 ktons from Malta (Spain/France/Portugal) and Malta (Italy) to Egypt/Syria/Lebanon/Israel; 460 ktons from Italy to Malta and from Italy (Malta) to Egypt/Syria/Lebanon/Israel; 353 ktons from Malta (Spain/France/Portugal) to Turkey/Greece; 420 ktons from Spain/France/Portugal to Malta and from Malta (Spain/France/Portugal) to Turkey/Greece ant to Egypt/Syria/Lebanon/Israel. WEST MED MOS MASTER PLAN Page 66 of 132

67 Specifically, the following weekly departures could be set up: two weekly services from Malta (Spain/France/Portugal) and Malta (Italy) to Egypt/Syria/Lebanon/Israel; three weekly services from Italy to Malta and from Italy (Malta) to Egypt/Syria/Lebanon/Israel; three weekly services from Malta (Spain/France/Portugal) to Turkey/Greece; three weekly services from Spain/France/Portugal to Malta and from Malta (Spain/France/Portugal) to Turkey/Greece and to Egypt/Syria/Lebanon/Israel. Source: PWC elaboration, 2010; Malta Master Plan Report Figure 43 - Overview of Potential MoS routes WEST MED MOS MASTER PLAN Page 67 of 132

68 Source: PWC elaboration, 2010; Malta Master Plan Report Figure 44 - Yearly level of services (frequency) by MoS routes Source: TLS EUROPE elaboration, Report of Italy and Malta, West Med Mos Master Plan Figure 45 - Malta links correlated to the West Med MoS Corridors IA and III areas WEST MED MOS MASTER PLAN Page 68 of 132

69 The identified links are operating along the Corridors I A and Corridor III as shown in figure 45. The outcome of this analysis is a rough estimation of the new MoS services that can be operated. One should note that: the four identified potential corridors, are included in the West Med MoS corridors, in particular in the Corridor I A and III; the theoretical results obtained require verification through a specific consultation on the subject with the main stakeholders (e.g. maritime operators specialized in RoRo and container transport, ship manufacturers, forwarders associations, etc) in order to understand their interest to operate these maritime services with ConRo vessels and create a MoS Hub in Malta. For instance, the stakeholders consultation highlights the following suggestions: EU Countries the strongest connections could be realized from Malta to Italy (i.e.: ports of Palermo and Catania in Sicily and port of Livorno in Toscana) and to France/Spain (i.e.: ports of Marseille and Barcelona); North African Countries it may be interesting to develop a relationship with Algeria, Tunisia and Morocco; issues related to the level of services (frequency) of new MoS links have not been carefully assessed; no specific mention has been made of the coordination needed among Western Mediterranean Malta and Malta East Mediterranean MoS links, in order to avoid time wastage in port, specifically in terms of unaccompanied RoRo traffic (non-selfpropelled units) Comparative cost analysis The development of the ports of Malta as a MoS Hub could foster the exchange of goods among the West and East Mediterranean countries, with new services using hybrid ConRo vessels operating to link ports in the West Mediterranean with ports in the East Mediterranean via Malta. Moreover, Malta could serve as one of the nodal points between North Africa and Europe. According to the traffic flows analysis showed in the previous section, the following Western and Eastern Mediterranean countries could potentially be connected via Malta: Italy with Egypt/Syria/Lebanon/Israel; Spain/France/Portugal with: - Turkey/Greece, - Egypt/Syria/Lebanon/Israel. In order to provide the theoretical saving of costs that can be achieved with a MoS hub placed in Malta, a comparison has been made between the following routes: Spain Turkey (via Trieste) vs Spain Turkey (via Malta) The Spain Turkey road route (via Trieste) shows a total cost of about 6,409 and takes 96.6 hours travelling time. Driving time has been estimated according to mandatory provisions on compensation time when driving in Europe. In terms of road distance, 1,303 kilometres are covered from Barcelona to Trieste, while 1,159 nautical miles are covered from Trieste to Istanbul. The Spain Turkey sea route (via Malta) shows a total cost of about 3,209 and takes 86.7 hours to be covered according to hours spent travelling by sea and hours spent for dwell in port. Nautical miles covered in travelling from Barcelona to Malta and from Malta to Istanbul are, respectively, 673 and 837 resulting in a total value of 1,510 nm. The figures below summarize the main results obtained from the comparative cost analysis. WEST MED MOS MASTER PLAN Page 69 of 132

70 Source: PwC s elaboration, 2010; Malta Master Plan Report Figure 46 - Route Spain Turkey (via Trieste) Source: PwC s elaboration, 2010; Malta Master Plan Report Figure 47 - Route Spain Turkey (via Malta) WEST MED MOS MASTER PLAN Page 70 of 132

71 8 DEVELOPMENT SCENARIOS TO Characterisation of scenarios The development potential of the MoS in the four identified corridors was analysed in the sections above, with reference to the current scenario (2009), considering the existing MoS lines, traffic flows and their projection on the corridors. This part of the document analyses the development potential in the future of the MoS in the Western Mediterranean, on the basis of traffic growth forecasts to The future scenario was defined at 10 years, a deadline not too far off in which progress in MoS growth may still be extremely strong. At the same time, it was desired to limit the uncertainties that longer-term forecasts on this subject could have caused. Several parameters that can influence the growth of traffic volumes in the MoS in the future, can be combined in a different manner and produce effects that are difficult to schematise with forecast models. The recent economic crisis has brought a disturbance to the continuous, important growth trend for MoS traffic in the last ten years, the effects of which will probably be limited to the period of a few years. The outcome of the crisis, however, is still a reason for uncertainty about future development dynamics. There are also several factors that have influence and that can positively or negatively influence MoS development, whose weight and combination, as we have said, cannot be realistically schematised in a forecast model. Among the most significant factors that can influence the increase in rolling traffic in the ports in the regions involved in the study, we can mention: A variation in the volume of import/export trade and traffic that involves the macro-areas referring to the ports, or which involve the port as a transit gateway towards final destinations - even remote ones; A variation to the competitive scenario that involves the port and the lines that arrive at and leave from the port; The transfer of loads from road to sea, which is one of the main objectives of the support actions for MoS development; The choice of haulage contractors to use ROR-ROPAX transport more than transport with container ships; in other words, more containers on RORO-ROPAX or more load in trailers and mobile crates, rather than in containers; The growth of unitised load (particularly important in less developed areas, which may involve the countries on the south coast of the Mediterranean and the macro-areas in Eastern Europe more frequently in the future). Other factors that may be decisive for the growth of rolling traffic in the next 10 years are the following: Maintaining the Eco-bonus nationally and/or the introduction of the European ECO-BONUS; The impact of ICT procedure and system simplification (increased computerisation of procedures); Maintenance and growth of cooperation measures and projects, in the realm of the EU neighbourhood policy (south coast of the Mediterranean and the Balkans, macro-areas in Eastern Europe); EU integration process (new member states); Continuity in future years of EU attention to support MoS development. WEST MED MOS MASTER PLAN Page 71 of 132

72 It was therefore decided to develop a scenario analysis with models that can take into consideration the above-listed factors, all together, to the widest extent. The analyses of the current situation are based on rolling traffic data in the ports involved in the study, recorded by the Port Authorities, on RORO-ROPAX lines running today in the Western Mediterranean, departing from/arriving at the ports taken into consideration. The data on load volumes transported with the MoS lines taken into consideration was calculated using this information. The analyses of the scenario forecast at 2020 were mainly based on a historical series of rolling traffic data (RORO-ROPAX) acquired by the Port Authorities and on the evolution of the scenario concerning the existing MoS lines. The data concerning traffic in the ports throughout the area involved in the study, is projected by analysing the lines on the identified corridors. 8.2 Forecasts for rolling RORO-ROPAX traffic at 2020 The analysis of development scenarios at 2020 is mainly based on historical growth trends of rolling RORO-ROPAX traffic in the ports in the area involved in the study. The projections were made by identifying three types of scenario: Basic Scenario, that refers to the historical series of traffic data, entering/leaving the ports, measured in the ports from 2001 to 2009; High Scenario, that refers to the historical series of traffic data from 2001 to 2007, excluding the economic crisis period; Intermediate Scenario based on the historical series of traffic data from 2001 to 2007, processed using a correlation function defined on the basis of the domestic GDP variation. Table 19 Real GDP trends, annual percentage variations, ITALY 0,8 1,2 1,5 1,4 1,3 1,3 SPAIN -0,4 0,9 1,5 1,6 1,8 1,7 FRANCE 1,5 1,8 2,0 2,1 2,2 2,2 MALTA 0,5 1,5 2,6 2,6 2,7 2,7 ALGERIA 4,6 4,1 4,3 4,1 4,1 4,2 MOROCCO 3,2 4,5 5,0 5,0 5,0 5,0 EGYPT 5,0 5,5 5,7 5,9 6,2 6,5 LIBYA 5,2 6,1 7,6 7,3 7,1 6,8 TUNISIA 4,0 5,0 5,6 5,7 5,7 5,4 Source: International Monetary Fund The GDP variation forecast in the years , estimated on the basis of International Monetary Fund data relating to Italy, Spain, France and Malta and the countries standing on the south coast of the Mediterranean directly involved in the study, is shown in table 19. The analysis of the 2020 scenario refers to traffic development in the corridors and in the port clusters identified in the study, and as shown above, is based on the overall traffic data and on the hypothesis that development mainly takes place with a homogeneous growth of the system globally and its components. WEST MED MOS MASTER PLAN Page 72 of 132

73 It is therefore presumed that the impact of the most important factors, which have characterised the growth of rolling cargo in the years , will be maintained globally in future years too, from 2011 to 2020, in relation to which the forecast is made. The variation to RORO rolling traffic handled in the Italian ports involved in the study as a whole, relating to the period (historical data) is shown in figure 48. The figure also shows rolling traffic growth forecasts for the period , in the three scenario hypotheses (basic, intermediate and high). The forecast curve for the intermediate scenario was calculated using a simulation model, based on a correlation function between GDP variation data and the annual variation of rolling cargo, in the period of time considered. In the basic scenario, the forecast of rolling RORO-ROPAX traffic volumes was calculated by presuming an average annual increase of 4.22% (value calculated including data affected by the ongoing economic crisis). In the high scenario, the forecast of rolling RORO-ROPAX traffic volumes was calculated by presuming an average annual increase of 7.5% (value calculated excluding the effects of the economic crisis) Million Tonns HISTORICAL TREND FORECAST RELATED TO GROWTH OF GDP HIGH SCENARIO BASIC SCENARIO Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 48 - Historical trend of rolling traffic in Italian West Med ports ( ) and growth projections from 2010 to 2020 In the intermediate scenario, the forecast of rolling RORO-ROPAX traffic volumes was made by presuming an average annual growth of 6.76% calculated on the basis of the forecast model stated above. The intermediate scenario curve trend is extremely close to the one for the high scenario, although characterised by slightly lower values. For the purpose of the study, the analyses of 2020 scenario focused on the forecasts for the basic scenario and the high scenario are therefore considered to be significant. Although the analysis is taken from the Italian study, and therefore in relation to the traffic data for Italian ports, it can be considered significant for an evaluation of traffic growth trends in the WEST MED MOS MASTER PLAN Page 73 of 132

74 Western Mediterranean area. The amount of ports taken into consideration and their different characteristics can express overall rolling cargo growth data that are significant for the characterisation of an MoS development scenario in the Western Mediterranean. The volumes transported by the lines identified in the study were calculated from the overall volumes of rolling traffic at 2020, similarly to what was done for the current scenario (2009), and the projection for RORO-ROPAX rolling traffic was calculated on the four identified corridors. The lines identified in the study already cover a fair part of possible sea connections along the vertical axis, in relation to the National-European facilities (Corridor IA), facilities that should be expanded in the stakeholders expectations, as far as transport capacity and departure frequency is concerned, also to a significant measure. The growth in demand could be conveniently satisfied by an increase in hold capacity on existing lines, in addition to the increase in connection frequency. For this reason, the growth hypothesis of new lines were not realistically looked into in depth, and greater emphasis was given to the forecast of increase in departures. The analysis of any new connections, should also be included in the hypothesis of the development of an MoS services network in the Western Mediterranean. This hypothesis emerged in the study as a strong point for MoS development scenarios in the Western Mediterranean. This hypothesis is also in harmony with the new European Commission s goals and directions concerning MoS, that the study has fully acknowledged: The development of an MoS network in the Mediterranean capable of integrating TEN-T and TMT (Trans Mediterranean Transport Network), the latter being defined at the moment in the countries on the South Coast of the Mediterranean and in Africa. The development of more integrated sea transport services in order to be a part of a network, may bring about an improvement in the quality of services, that can be achieved via the rationalisation and optimisation of port and logistics structures; this could contribute to aiding a balanced growth of all the port clusters identified, as hypothesised in the forecast models. The sea connection lines for the countries on the south coast of the Mediterranean could be improved, via the quality of services and via the expansion of the connection network, with the involvement of new ports on the south coast of the Mediterranean (Corridor IB) and a greater involvement of ports in the south of Italy, the larger Italian islands (Sicily and Sardinia) and Malta. In the context of integrating MoS services into Corridors I A and I B and creating an MoS network, the new lines that develop services along the two corridors represent a large-capacity motorway, to connect the countries on the south coast to the heart of Europe. In addition to contributing to the creation of a supporting structure for the main network that integrates the largest corridors, the creation of transhipment HUBs for MoS in the Sardinia port cluster, in the East Sicily-Calabria port cluster and Malta ports could also allow greater capillarity in connections between Europe and the ports/terminals of these countries, which may also be smaller. The huge development potential of the MoS in the countries on the south coast of the Mediterranean is also shown in the GDP growth forecasts, in the next few years (see table 19). It is therefore logical to suppose that the growth forecast estimated according to GDP data (from EU countries) is conservative for the purpose of evaluating traffic increase with the countries on the south coast of the Mediterranean, characterised by much higher annual GDP variations. WEST MED MOS MASTER PLAN Page 74 of 132

75 From the analysis of rolling traffic data on Corridor I B in relation to the current scenario, it is obvious that such traffic is not marginal even today. 8.3 Analysis of scenarios at 2020 The analyses of the 2020 scenario take into consideration the influence of the effects generated by the parameters defined above, able to affect the increase in traffic and the overall effects of their combination. From the analysis of the basic scenario 2020, it can be seen that the rolling traffic will reach about 3 million heavy vehicles; the distribution of the traffic increase over the four corridors is shown in figure 28. The estimated growth from 2010 to 2020 is more than 1.1 million transported heavy vehicles. The growth of the MoS system has been presumed to be uniform, and an approach was used that privileges the processing of certain data obtained by measuring incoming/outgoing RORO-ROPAX rolling traffic in the considered ports from 2010 to 2020.The result of the analysis of the high scenario at 2020 is an even more extraordinary importance of load flows that move along Corridors IA and IB, which is the axis to be most developed for the MoS in the Western Mediterranean, both due to the size of the volumes and for the strategic nature of the connections to it (in particular the countries on the south coast of the Mediterranean); this may offer an extraordinary opportunity for fully exploiting the port and logistic system potential in the south of Italy and the main islands. CORRIDORS Table 20 Rolling stock flows in 2009 and increase in 2020 (basic and high scenarios) 2009 ROLLING LOAD VEHICLES DEPARTURES 2020 BASIC SCENARIO INCREASE IN ROLLING LOAD VEHICLES INCREASE IN DEPARTURES 2020 HIGH SCENARIO INCREASE IN ROLLING LOAD VEHICLES INCREASE IN DEPARTURES CORRIDOR I A CORRIDOR I B CORRIDOR II CORRIDOR III TOTAL Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Table 20 summarises the result of this scenario at 2020 in the four corridors identified in the project, comparing the increase in RORO-ROPAX rolling cargo traffic in 2009 and the expected increases at 2020, for the two scenarios considered, basic scenario and high scenario, that represent the extent of possible growth for MoS in the next 10 years. The increase in the number of departures is also included, while the increase in the number of lines has not been included, as this depends on the modes by which the increase in traffic volumes will be absorbed. In fact, some lines may be strengthened by increasing the hold volume, i.e. using larger ships or increasing the frequency of connections or by activating new lines. WEST MED MOS MASTER PLAN Page 75 of 132

76 INCREASE IN DEPARTURES PER CORRIDOR CORRIDOIO 1 B 13% CORRIDOR 3 9% CORRIDOR 1 A 65% CORRIDOR 2 13% Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 49 - Increase in departures by corridor The traffic situation at 2020 in the basic scenario and high scenario hypotheses is shown for each corridor in the following sections Corridor IA Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 50 - Increase in vehicles in Corridor I A to 2020, basic scenario and high scenario WEST MED MOS MASTER PLAN Page 76 of 132

77 8.3.2 Corridor IB Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 51 - Increase in vehicles in Corridor I B to 2020, basic scenario and high scenario WEST MED MOS MASTER PLAN Page 77 of 132

78 8.3.3 Corridor II Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 52 - Increase in vehicles in Corridor II to 2020, basic scenario and high scenario WEST MED MOS MASTER PLAN Page 78 of 132

79 8.3.4 Corridor III Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 53 - Increase in vehicles in Corridor III to 2020, basic scenario and high scenario WEST MED MOS MASTER PLAN Page 79 of 132

80 8.3.5 Summary Observations on 2020 Scenarios The large growth volumes forecast show the need for the hypothesised development projects for improvement in both the current infrastructures that will allow developments in the short term and the more strategic and complex ones that are necessary for supporting the hypothesised mid-long term growth to be continued. The changeover to the concept of MoS network services, and the activation of newly created and structured services both operationally and in business models, in order to be part of a network, may bring about a significant change in the type of connections in the area. The hypothesised growth requires many parameters that influence the growth in RORO-ROPAX traffic and MoS to intervene positively. It is also realistic to hypothesise that there will be continuous commitment in future years to supporting MoS development by the most important public sector players and that there will be sufficient participation in private sector projects. Corridors I A and I B still remain the strong development axis of the MoS in the area. Integration of services along this vertical axis will allow for large-scale developments in both connections between the countries on the south coast with Europe and also for connection between the south part of Europe and the centre-north. The hypothesised growth of the MoS in the next few years could aid the development of new models of excellence contained in the study, including development of new MoS Hub logistics centres. The horizontal axis shows interesting development potential that will give the maximum result, especially if the most strategic projects in the study and the most significant in the definition of a MoS development plan are implemented rapidly. Some of the most important are the ones aimed at creating logistics-port junctions, for the integration of sea connections in the Western Mediterranean with the large land TENT-T corridors, which develop from Portugal and Spain to East-North East of Europe, and with the sea corridors that develop towards the Eastern Mediterranean from these two countries and from the west of France. For defining the scenario, reference was made to global growth models, presuming that there is a uniform evolution of the current situation. The development scenario outlined in the study, on which the Motorways of the Sea Master Plan in the Western Mediterranean is based foresees greater integration of services and the development of efficient MoS Hubs, in compliance with the development needs of a MoS network, which must joint the TENT-T on the European side with the TMT on the southern coasts of the Mediterranean. This could bring about a different division of traffic in the ports compared to the current one, more balance between north and south. A possible 2020 reference scenario could be characterised, respecting global volumes calculated by the forecast model, by a different distribution of services more compliant with the MoS network model that is the priority objective in the development plan. A representation of the scenario in relation to the four identified corridors is shown in the following figure. WEST MED MOS MASTER PLAN Page 80 of 132

81 Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan Figure 54 - Scenario at 2020 MoS Network and West Med Mos Corridors WEST MED MOS MASTER PLAN Page 81 of 132

82 9 CONNECTION WITH PAN-EUROPEAN INITIATIVES The two corridors that run along the horizontal axis can include or add to the MoS development hypotheses that emerged in the EAST MED MoS project, in the four corridors shown in figure 55. Source: East MoS Study Figure 55 - Corridors identified in the East Med MoS that can be integrated with the corridors identified in West Med Corridors The analysis of the identified corridors shows the important role of Sardinia as a logistics platform in the Western Mediterranean, also for the integration of Corridors II and III West Med Corridor and Corridors I and V East Med MoS and the important role of the East Sicily-Calabria-Malta port cluster, which, as pointed out by the development hypotheses for Corridor III West MED Corridor and Corridors I and V East Med MoS, could play the role of connecting junctions for the lines between the Western and the Eastern Mediterranean, and develop synergies that could, in the view of an extended cluster, have the potential to be a large HUB (not just MoS) and a logistics platform of great importance at the centre of the Mediterranean. WEST MED MOS MASTER PLAN Page 82 of 132

83 10 INVESTMENT REQUISITES FOR THE MOTORWAYS OF THE SEA The development project for the Motorways of the Sea can make use of the possibility of employing public and private funds with several types of instruments in addition to national funds, including the following main instruments, which are, however, only an example: EU funds for the TEN-T networks European Investment Bank Project Financing Public Private Partnership Subsidiaries for the demand to encourage modal-shift from all road to combined road-sea or rail-sea, on the Ecobonus model; Contributions to the shipping companies for the development of new routes, via the European Marco Polo programme EU funds for the Trans-European networks Interventions for creating the infrastructures identified here may benefit from specific EU funding as they are part of the European Union programme for the Trans-European Network Transport (TEN-T). The Voltri VP5bis project, for example, may come under the category of interventions that can benefit from EU funds. With regards to the funding of Trans-European networks, the EC Treaty (article 155) foresees that the Community will support the member states financial efforts, based on the principle of additionality, via feasibility studies, loan guarantees, interest relief and subsidies via the Cohesion Fund. The main principles of direct funding from the EU budget are set by the Council Regulation nr. 2236/95 (amended by Regulation nr. 1655/99), that sets out the general rules for the granting of a financial contribution from the European Community. In particular, the following forms of EU funding in the Trans-European Transport Networks sector can be found (regulation nr. 680 from 2007): a) Co-funding of studies related to projects, including preparatory studies, feasibility studies and evaluation studies, and other technical support measures for such studies. The EU s participation cannot generally exceed 50% of the total cost of a study. In exceptional cases duly motivated, further to the Commission s initiative and by agreement with the member states involved, EU participation may exceed the 50% limit; b) Direct subsidies for works up to a maximum of 20% of the admissible cost, which rises to 30% of admissible cost for trans-border sections and drops to 10% of admissible cost if the project is not a priority one; c) Interest relief on loans granted by the European Investment Bank (EIB) or by other public or private financial bodies d) Financial contribution to the allocation and earmarking of capital for guarantees that the EIB has to issue on its own resources as a loan guaranteeing instrument. The executive agency for the Trans-European Network of Transport (TNT-T EA) organises the technical and financial implementation and management of the Trans-European Network of Transport (TNT-T) programme. The agency was created in 2006 with a mandate until 31 December Management of vitally important projects for the transport infrastructure, part of the financial prospects and , is carried out in close collaboration with the mobility and transport headquarters (MOVE) at the European Commission. The MOVE HQ WEST MED MOS MASTER PLAN Page 83 of 132

84 maintains responsibility for general policy, planning and evaluation of the TENT-T programme. The agency, based in Brussels, has an international team of finance, project management, engineering and legal affairs experts. Requests for funding must be submitted to the Agency, following the detailed procedure published on the web site, that is updated each year according to availability of the multi-year programme. The single Port Authorities can also submit applications for EU funding that is specifically dedicated to the development of Motorways of the Sea for the Mediterranean (priority project nr. 21 of the TEN-T), for which up to 85 million Euro have been allocated by the EU in the year 2010, up to 150 million in 2011 and another 25 in In addition, some EastMed-MoS and WestMed-MoS programmes may benefit from the funds, which can finance up to 20% of the project costs of Motorways of the Sea terminals (Voltri VP5 bis project) or information system development projects (Port Community System) The European Investment Bank s role in allocating funds The EIB is an EU financial institution, that has the task of contributing to the integration, the balanced development and the economic and social cohesion of EU member states through its long-term funding. The added value of EIB funding is based on three essential pillars: Coherence between Bank activity and the EU priority objectives Quality and validity of each investment project Particular financial benefits coming from the use of EIB resources The projects must be valid under 4 essential aspects: Economic, technical, environmental and financial. In this context, it is important to underline the possible EIB role carried out by using the following funding instruments: 1) Granting of long-term credit; 2) Guarantees to private funders; 3) Structured finance instruments; 4) Forms of securitization 5) Makes its own technical experience available. As an example, the framework agreement stipulated between the Ministry of Infrastructures and Transport (MIT) and the EIB on 8 October 2008 has the aim of defining a collaboration framework in the programming and management of long-term financial resources to complete infrastructural work identified in the strategic infrastructures plan, attached to the DPEF. In particular, the MIT programme tendency of wanting to mobilize EIB funding for a total approximate value of 15 billion Euro in the five-year period has been approved. A form of consultancy by the EIB for operations that can be funded by the EIB itself has also been established. Pursuant to article 4 of the Agreement, any funding of projects by the EIB may have the following forms: Direct funding from the Italian Republic for infrastructural investments promoted and accepted directly by the Ministry of Infrastructures; Funding for Promoting bodies, Regions and public territorial bodies and/or concessionary subjects, directed or intermediated by primary banks, perhaps aided by guarantees or assignments on public and private assets judged to be satisfactory by the EIB; Structured and project finance, and other forms of financial engineering, if appropriate together with other financial operators. WEST MED MOS MASTER PLAN Page 84 of 132

85 Indications that emerge from the protocol stipulated between MIT and the EIB for the opening of a line of credit for infrastructure funding show the possibility of use by Port Authorities for port work. Subsidised EIB funding can be earmarked for shipping companies operating in the Motorways of the Sea sector too, to support initiatives that come under the broader EU objectives. The Italian company Grimaldi, for example, was able to obtain a loan by opening a line of credit for the period , mediated by Unicredit, for more than 250 million Euro for the purchase of four ships to be used on the MoS, including the Cruise Roma and the Cruise Barcellona, which operate on the route between Civitavecchia and Barcelona Project financing The project financing is a non-identifiable financing technique in a typical contractual category, representing the sum of single contracts (supply, tender, funding, guarantee, company, concession, construction and management). From a financial point of view, in fact, the project financing refers to a huge range of financial structures that are hard to standardise as they are specifically created to respond to the characteristics and needs of funding for a specific project. There is, however, in all cases the common, vital characteristic described above: Funding is granted to a specifically created economic entity for the carrying out of the project, mainly on the basis of cash flows that the investment will be able to generate, and with the project company s activities as the sole collateral securities. The main advantages for the Public Administration are as follows: Saving in terms of public expense; Greater efficiency in implementing and managing the infrastructure; A higher quality service offered to the operators; In Italy, for example, in the investments sector dedicated to the motorways of the sea, there is a single experience of the granting of a public works concession, which took place by following the project financing procedures. This was the final, executive project for the construction and later management of the work comprising the environmental reclamation of the area named ex- Alumix" located in Fusina in the City of Venice, adjacent to the Malamocco-Marghera ship canal, a wet dock surrounded by two parallel wharfs and a horizontal one required to host two RORO and/or ROPAX ferries. The tender was started up in August 2009 and ended in March 2010, with the issue of the concession to the promoting party, led by the company Thetis. The cost of the intervention is 193 million and foresees the building of 2 docks with 4 wharfs by the end of 2015, which can host 4 ships at the same time and a logistics platform with new buildings (including a 20-storey skyscraper office building) and warehouses, port yards and car parks, making a total area of 36 hectares. Based on the economic financial plan, the concession foresees: a) The carrying of the intervention with resources that are the total responsibility of the concessionary; b) The payment of an annual fee of about 2.5 million Euro to the granting administration, starting from the fourth year after the contract has been signed; c) Payment of a variable fee to the Port Authorities, applied to maritime traffic according to the currently legislation in force; WEST MED MOS MASTER PLAN Page 85 of 132

86 d) Application of a fee to the users applied to management of RORO traffic, at the maximum amounts of : 10 Euro for lorries 4 Euro for cars 6 Euro for drivers 60 Euro for services to the ship 50 Euro for handling containers from/to trains e) Application of fees freely set by the concessionary for the property and car park users f) A duration of the concession of 40 years. The project presented here is characterised by some important strong points. Indeed, the area in question is particularly attractive from both a logistic point of view and for offices as it is located in an area that is well connected by road, motorway and rail. In addition, the RORO traffic will be guaranteed by the transfer of existing traffic from the current areas used for this activity, that are not suitable as they are located in the historical city centre of Venice. The joint presence of these specific factors (certainty of traffic and attractiveness of the areas from a real estate point of view) make it difficult to hypothesise similar initiatives in other contexts. The Genoa Port Authority foresees the use of the project financing for the funding of the intervention planned in the area of Voltri, defined as Variation VP5bis, given a value of 96.9 million Euro, based on indications given by the Three-year Programme for Public Works approved by the same Port Authority. It is obvious that in order to attract private funding for this work, precise strategic choices must be made by the Port Authority that cannot be changed with regards to the types of traffic transferred from other terminals (e.g. all the non-schengen traffic, both RORO cargo and ROPAX). Indeed, the RORO traffic is currently divided between four different terminals (Ferry Terminal at Stazioni Marittime, Terminal Rebora, Terminal Messina and Terminal Grendi), therefore it is difficult to create accurate traffic scenarios for one terminal in competition with another four in the same port. Identification of multi-year flows and the preparation of traffic scenarios with reduced probabilities for change are the basis for drawing up an economic-financial analysis that can produce interesting results for private investors that expect annual returns of 10-12% on the mix of invested capital. The use of EU funds alongside regional funds to support a private initiative contributes to reducing the overall investment risk, therefore they take on a rather important role in ambitious projects such as the VP5bis. In addition, additional forms of revenue, such as the possibility of building offices or logistics areas, contribute to diversifying and alleviating risk, which would otherwise depend on sea traffic only. The use of forms of funding involving private parties by the Port Authority is foreseen for the European Platform project foreseen in the new Livorno Port Planning Regulations. In this case too, the recommendations for an efficient approach towards private investors concern the matters of traffic scenarios, risk mitigation via business diversification, the certainty of times and the clarity of overall regulations context, in addition to the obligation of searching for funds that can reduce direct financial exposure by the private investors. The results of the analyses described in the previous sections depict a scenario in full evolution, within which the Western Mediterranean MoS can be developed. Four important corridors have WEST MED MOS MASTER PLAN Page 86 of 132

87 been identified that involved the regions included in the study and synergies have been hypothesised that would allow the ports to respond in the best way to the growth of services by being grouped into clusters. This chapter summarises the ongoing projects and actions to upgrade the transport and logistics system in the regions involved in MoS development Public Private Partnerships The objective of this chapter is to provide ideas and planning concepts for the definition of private financing sources for the development of MOS. Preliminarily, it is worth underlining that historically in Italy, France, Spain and Malta all investments in port contexts that concerned maritime, rail or road works, have been realised by means of central public resources. In general terms, the main issues in funding MoS can be summed up as follows. The need to define a reliable plan of investments, in order to plan the appropriate financial coverage. The need to define the whole funding requirements at the moment of the project approval, unless specific functional or construction lots are defined. The research of alternative funds, connected to an entrepreneurial and/or political interest in the realisation of the work. The role of European funds for the realisation of the MOS network included in the Trans-European Transport project is relevant and has a catalytic role for private investments. Art. 55 of the EC Treaty states that the Community can fund, on the basis of the additionality principle, the financial requirements of Member States by means of feasibility studies, loan guarantees, interest allowances, and subsidies via the Cohesion Fund. The general principles of the direct funding by the Community are stated in the Council Regulation n. 2236/95 (modified by Council Regulation n. 1655/99) Public and private investment in port infrastructures Like most transport infrastructures, belonging to the public or private sector of the economy for ports has evolved historically with the evolution of markets and the degree of competition within the sector. As the main railways were mainly built in the 19 th century thanks to private initiative, and then were mostly nationalised at the beginning of the last century under the stimulation of public interest, the ports too have always been the theatre of private initiatives, although they were also brought under the public wing during the last century due to strategic national interest. Unlike the railways, however, competitiveness in the port sector increased significantly during the last century, especially for some types of traffic that have benefitted from the standardisation of intermodal transport systems and handling of goods. The high level of technological innovation has brought about the reduction of costs connected with the breakage of loads, and drastically increasing efficiency on the sea and in the hinterland. As a consequence, while railways increasingly became a low-profit and heavily subsidised sector, linking itself to the public economy, ports underwent the increasing territorial competitive stimulus (yardstick competition) over the years, while inherently maintaining their nature of being natural monopolies, the location factor became a less important element of success in favour of the horizontal and vertical networking capacity. It is therefore clear that, on the one hand, the persisting public nature of ports in most countries protects the sector s strategic nature, mostly due to the significant spillover into the regional WEST MED MOS MASTER PLAN Page 87 of 132

88 economy, but on the other hand it notably limits the capacity to compete due to the inherent characteristics of doing business in a public context and in a private context. In the same way, some experts 4 note how the most efficient ports in the old continent, i.e. with the best exploitation of infrastructures, are the English ones: Although no correlation has been scientifically proved, the English model unmistakably counters the French one, due to its totally private character. In fact, innovation, flexibility and ability to react rapidly to the changing market conditions so typical of the private sector become the elements that can guarantee high competitive capacity to the port, at the same time satisfying the public strategic purposes that can be protected by the State, although with different roles compared to current ones. Generally, however, transferring public infrastructures from a public context to a private one appears to be a complex objective that is difficult to achieve due to the characteristics inherent to the infrastructure itself. In particular, by following the analysis of Wiegmans et al. 5, the following common aspects for all port infrastructures are referred to (with particular reference to container terminals). 1. Infrastructures are characterised by a very long economic life that, in the case of maritime infrastructures, range from 20 to 100 years, thus requiring long periods of use to make the investment profitable; moreover, the infrastructures involve high investment costs that require return periods that are just as long, normally from 15 to 30 years, while private enterprise requires more rapid profit making. 2. Infrastructures are characterised by a very high incidence of fixed costs on total costs, with relatively low operational costs (also variable), that can mainly be traced to the cost of staff, maintenance and overheads. 3. Investment requires a considerable contribution of initial capital that, considering the high pay-back period, cannot always be found through the banking channel; furthermore, the cost of capital is often high and in any case higher than the terms granted to a public subject. 4. The planning and approval phase, which is also rather long-lasting, postpones the construction and management phases even further, often leading to project modifications to satisfy the various parties bearing an interest, but which increases the costs for carrying out the work. 5. Investments in infrastructures are irreversible, adding a further figurative cost represented by the sunk cost that is actually a barrier to leaving the project. 6. The construction phase takes a rather long time, which delays management and return of invested capital, while at the same time determining current management costs (for example, accrued interest on the loan). 7. Each infrastructural project is unique and does not permit learning curves to be hypothesised or possibilities for benchmarking. It requires special technical, economic and financial attention when carrying out the feasibility study. 4 Cullinane K., D-W. Song, Estimating the relative efficiency of European container ports: a stochastic frontier analysis, Port Economics, Research in Transportation Economics, Volume 16, pp , Elsevier, Wiegmans B.W., Nijkamp P., Rietveld P.; Ubbels B., Investments in Container Terminals: Public Private Partnerships in Europe, International Journal of Maritime Economics, Volume 4/1, pp.1-19, WEST MED MOS MASTER PLAN Page 88 of 132

89 Musso et al. (2005) 6 add the presence of a type of indirect profitability from the fiscal cycle and territorial spillover (Keynes and Leontief multiplier) and the generation of negative environmental external factors to these characteristics. These particular factors of investments in port infrastructures help to identify a set of risk whose division on a contractual basis is the basis of the most advanced forms of public private partnership. In particular, these are: political risk, linked to the changes in the context that can block projects that have already been started or postpone planned projects to future times; Financial risk, linked to the fluctuation of interest rates, exchange rates and inflation rates; Construction risk, linked to delays or complications during the building phase that can determine underestimates of investment costs; Operational risk, linked to port operations and the possible damages connected to the latter; Commercial and industrial risk, linked to the underestimate of operational costs and/or the overestimate of revenue from rates The role of private investors Generally speaking, it is possible to combine the investment characteristics in a port infrastructure and the relative risks, depending on the public or private subject that they are conveyed to. By observing the table below, it can clearly be seen how for each port infrastructure characteristic, it is normally the public sector that takes on the political risk, while the private sector takes on the commercial and operational risk. The risks involved in the construction and funding are divided differently by a negotiation procedure that is normally carried out by contractual leases or concessions. If, however, this reasoning applies in general to transport infrastructures and, in particular, to ports, it is traditionally possible to distinguish three investment categories for this latter sector: General infrastructures that ensure access to the port from the land side (road and rail connections) and the sea side (basins, canals, locks, dams, breakwaters, lighthouses); Infrastructures relating to a specific terminal (wharfs, seabeds, dedicated road and rail connections, lighting, flooring); Superstructures relating to a specific terminal (warehouses, cranes, civil works). 6 Musso E., Ferrari C., Benacchio M., Port Investment: Profitability, Economic Impact, Financing, Port Economics, Research in Transportation Economics, Volume 16, pp , Elsevier, WEST MED MOS MASTER PLAN Page 89 of 132

90 Risk Table 21 Port terminal investment and types of risk Characteristics of an investment in a port terminal and types of risk Economic life Operative costs Capital Planning Irreversibili -ty Construct -on Uniqueness Political Public Public Public Public Public Public Public Financial Construction Operational Public / Private Public / Private Private Public / Private Public / Private Public / Private Public / Private Public / Private Public Public Public / Private Public / Private Private Public Private Commercial Private Private Private Public Private Source: Adaptation by Wiegmans B.W. et al. (2002) Public Public / Private Public / Private Public / Private Public / Private Public Private Private Traditionally, the first investment category calls for an important State role, as they are infrastructures that can be traced to the economic concept of public asset, or assets that cannot be excluded and are not rivals in consumer activity, which refer to all the seven characteristics mentioned above, exposing the investor to all types of risk. The third type of assets, the so-called superstructures, relates to investments in specific assets for a certain terminal that are clearly different from the traditional characteristics of an infrastructure, significantly reducing the types of risk, that are mainly found in operational and commercial risk. As can be found in European reality, they attract a strong role for private subjects, although in some cases they are still public property and granted for use to terminal companies via different contract plans (in particular, in those ports where the transition from a service port model to a landlord port model has not yet been completed). Therefore, the distinction between the public and private roles are certain for these two types of investment, the increasing role of private subjects in the second type of infrastructure is arousing great interest, i.e. those public works dedicated to a specific terminal, but which have all the seven characteristics of general transport infrastructures and relative risks. This phenomenon is basically connected to the constant increase in the size of traffic and the concentration created among shipping companies for greater exploitation of the economies of scale. This is translated into a dimensional growth of the ships and into the specialisation of individual terminals, dedicated to a single client that often become its owner, creating forms of vertical integration along the transport chain as well as forms of horizontal integration. As a prospect, although there have already been several experiences in Europe and beyond, the large-scale shipping companies will increasingly built new terminals more directly, investing in both the infrastructure and in the terminal superstructures, in accordance with the Port Authority The drivers of the forms of public private partnerships Generally speaking, it is possible to distinguish six type of contracts that can be used to increase the role of the private subject in the port sector: WEST MED MOS MASTER PLAN Page 90 of 132

91 1. The sale of a part or all of the public port to the private sector, although this possibility is rarely pursued on the international scenario, with the important exception of Great Britain and some terminals linked to mining activities; 2. A concession agreement with the terminal management for the exclusive use of a part of the port s infrastructures, normally long-term, in return for specific undertakings to invest in new port infrastructures; 3. An operational leasing contract, wherein the terminal operator has an operational agreement, similar to the concessionary contract, but which does not involve the private subject in investments; 4. A management contract that transfers responsibility for mixing the existing production factors capital and work efficiently, providing services to clients in the name of and on behalf of the port; 5. A service contracts that allocates the task of providing specific services as outsourcing to the private sector; 6. A leasing contract with the superstructure suppliers for availability of the dock s equipment. Among these, the most widespread instruments are the second and third above, i.e. the operational leasing and, especially in Western Mediterranean countries, the concession of use that also implies an express commitment, as we have seen, by the private subject to invest in the infrastructures. Italian legislation, for example, have also introduced the possibility for a private promoter as in the case of the areas dedicated to Motorway of the Sea traffic in the ex Fusina area in Venice and also public promoters as in the case of container terminals planned in the port of Savona - to carry out public work according to project financing plans that emerge in the B.O.T. (Build Operate and Transfer) and B.O.O.T (Build Own Operate and Transfer) contract forms. Finally, in order to obtain the best result possible from public sector and private sector collaboration during the investment phase in new port structures, some elements seem to take on vital importance: The Port Authorities financial autonomy; The profitability of terminal operators port operations; The State's capacity to regulate and plan. The European PPP Expertise Centre (EPEC) is a joint initiative of the EIB, the European Commission and European Union Member States and Candidate Countries. EPEC helps strengthen the capacity of its public sector members to enter into Public Private Partnership (PPP) transactions. With the support of a full time Executive made up of experienced PPP professionals, EPEC's Members share experience and expertise, analysis and best practice relating to all aspects of PPPs. PPP experiences show that there are 5 successive conditions of success: Choice of project; Choice of funding & risk sharing; Choice of procurement procedure; Choice of financial structure; WEST MED MOS MASTER PLAN Page 91 of 132

92 Management over-life of the whole contract. PPP does not cover a homogeneous legal reality in EU law, but the well structured projects require competitive funding and are all about proper risk assessment & risk allocation. Moreover, private financial investors can play a role in enforcing the finance side of a project, adding value in the following areas: providing equity funding and adding to industrial sponsors who wish to protect their balance sheet; represent alignment of Project company and funders interests (bankability); provide in-depth knowledge of finance markets/parties to the Sponsors table (team background); Alignment with the Project company and Port and Public Authorities interest. Project financing it is a financing technique that cannot be identified in a typical contract category, but that represents the outcome of a number of contracts (supplying, contracting, financing, granting, concession, management). Project financing involves a wide array of financial structure, that cannot be standardized because they are created in order to meet the financing requirements of a specific project. In all cases, however, a common and fundamental feature exists: project financing is conceded to an economic entity specifically created for the realisation of a project mainly on the basis of future cash flows that the project will generate, therefore having as guarantees only the activities of the project. The main advantages for the State are the following: Savings, in terms of public expenditure Higher efficiency in the realisation and management of the infrastructure Higher quality of the service for operators The definition of multi-year traffic scenarios with a low degree of variability is the basis to set up a financial analysis that supports relevant results capable to attract the interest of private investors (whose expectations in terms of yearly returns on invested capital is about 10-12%). The activation of Community and/or Regional funds, as well, reduces the risks of the investment and can play a relevant role in ambitious projects. Moreover, additional types of revenues (real estate activities offices and/or logistics) contribute to the attractiveness of the project by avoiding its dependence from maritime traffics only. WEST MED MOS MASTER PLAN Page 92 of 132

93 10.7 The situation in Italy All the projects for developing the MoS identified in the study are summarised by region in table 22. Table 22 Description of the projects with indications of connections and investments PROJECT MoS LINKS DESCRIPTION OF THE PROJECT BUDGET CALABRIA REGION Gioia Tauro Intermodal Terminal Fresh Produce terminal and logistic platform; Calabria North Italian Ports EU ports Corigliano Calabro to Sicilia, Malta, ENPI South Countries Intermodal Terminal Planning level (PON ) RORO Terminal and logistic Platform. Industrial development support, parallel Action Corigliano Calabro a logistic platform for the fresh produce (terminal and logistic center) to be linked to north Italian ports, developing potential synergy of the platform, in the fresh horticultural products, with the other potential nodes of a Mediterranean network, in particular located in Sicilia and in the ENPI south countries. New rail and road connections, new intermodal logistic platform Tot: 38 Mil. Euro CAMPANIA REGION Napoli and Salerno Reinforce existing links with EU and Extra EU countries Improvement of existing infrastructures, See regional transport Plans See investments table LAZIO REGION Improvement of existing infrastructures, See regional transport Plans New MoS services Reinforce existing links with EU and Extra EU countries Civitavecchia Barcelona Civitavecchia - Bastia - Toulon Improve the MoS link between the two ports Civitavecchia and Barcelona and the related infrastructure premises and, with the intermediate call in Porto Torres, improve the Sardegna accessibility and the integration of the door-to-door intermodal transport chain both in Italy and Spain. Reactivation of the MoS link between central Italy and southern France (Civitavecchia - Toulon) via Corsica, using Bastia as intermediate port of loading / unloading. See investments table Civ.-Bastia - Toulon Project: Civitavecchia terminal adjustment 10 Mil. Development of a new RORO-ROPAX terminal, separation of RORO and ROPAX traffic, dedicated areas for Passengers, separation of EU and EXTRA EU lines. 70 Mil. Euro LIGURIA REGION Genova Genova new RORO-ROPAX terminal in Voltri New MoS services Reinforce existing links with EU and Extra EU countries Genova - Barcelona Develop and consolidate the logistic chain between hinterland of the port of Genova and the port of Barcelona through the improvement of the maritime service connecting both ports, and the related road and rail connections and infrastructures and terminal services. Provide an effective and alternative solution to overcome the road bottleneck at the Ventimiglia border between France and Italy by providing an efficient, regular and frequent (3 trips per week with 6 ships) maritime link between Sète and Genova. See table investments WEST MED MOS MASTER PLAN Page 93 of 132

94 SARDEGNA REGION WEST MoS RORO HUB SARDEGNA CAGLIARI PORTO TORRES SPAIN FRANCE ITALIAN PORTS (CONTINENTAL) SICILIA ENPI SOUTH COUNTRIES Develop a central hub in the Mediterranean for the RORO transhipment. This initiative is included in the frame of a Regional Project aiming at implementing a Regional logistic systems, involving Cagliari and the Port of Porto Torres, and a railway link between the two ports. In Cagliari the project includes the development of a new RORO terminal equipped with the most advanced systems for cargo handling to reach high standards of efficiency and small costs also for RORO transhipment operations. The new railways link should connect the two ports to the industrial areas (to be developed) in the North of Sardegna nearby Porto Torres. RORO HUB terminal: 95 Mill. Euro Railway link: to be defined SICILIA REGION MoS RORO HUB connecting West and East Mediterranean Areas Sicilia Augusta East Mediterranean Ports (EU, Italian, Extra EU), Black Sea Ports, in one side, and Cagliari and other Ports to extend west MoS lines to East Development of a major RORO HUB terminal in the port of Augusta. The terminal will provide a node to link West and East Mediterranean MoS, and to connect the ENPI south Mediterranean Countries. The terminal will be also part of the Sicilian gate in the Mediterranean to link Sicilia to all the Mediterranean countries. The intermodal terminal will be integrated to a logistic platform for import export activities and for complementary transhipment services. The system should be integrated with Gioia Tauro and Taranto container Hubs for overseas connections. RORO HUB intermodal terminal: 90 Mill. Euro TOSCANA REGION New areas and logistic services for the MoS development New MoS services Livorno - Barcelona New areas and logistic services for the MoS development, strongly linked to the improvement of Amerigo Vespucci intermodal logistic center. Implementation of new railways and inland water ways infrastructures. Livorno Terminal And A. Vespucci logistic center improvement ( rail /road infrastructure new pavement, lightening),maritime service increase, Total cost:37 Mil. Single Window Setting up a pilot project in 2011 to facilitate the development of "single windows" in the EU countries, with initiatives aimed at developing integrated or compatible projects in individual countries, both as regards the aspect of the procedures authoritative, operated by public agencies and authorities, that with regard to operational aspects - commercial, paid by the private sector. More detailed information in the Report B2 (Italian studies) Source: TLS EUROPE elaboration, Report of Italy, West Med Mos Master Plan These are projects aimed at improving the infrastructures and services in ports in the short-term, and projects with a higher strategic value that are sometimes part of integrated strategies for the development of the territory, the territorial development, port facilities and the transport and logistics system. The table also summarises the development strategies for the port connections, in relation to the need for new lines and the projects identified through the 2009 West Med Corridors call for tender. The table also contains the reference to funding that is foreseen or in some cases, already allocated for the carrying out of the projects. WEST MED MOS MASTER PLAN Page 94 of 132

95 The importance of a specific short-term action aimed at tangibly making a contribution to simplifying procedures and the development of information and communication systems also emerges in the study. A single windows objective, a project for which the state-of-the-art in the regions involved in the study has been defined, and hypotheses for short-term development have been defined, identifying modes, times and costs The situation in Spain Table 23 Description of the projects in Spain PORT PROJECT DESCRIPTION OF THE PROJECT STATUS BUDGET Port of Tarragona Port of Taragona Ro-Ro ramp in Cantabria Dock Finished 1,74 Mil.Euro Port of Tarragona PLACA 4S Development of a particular proposal of SSS from a theoretical and actual perspective. Finished 1,6 Mil. Euro Port of Tarragona WEST MOS Development and improvement of intermodal transport services of the Port of Tarragona based on an integrated transport system, mainly formed by Catalonia port system and logistics areas network. Finished 20 Mil. Euro Port of Alicante AMPLIACIÓN DEL PUERTO DE ALICANTE. MUELLES 21 Y 19 Y RO-RO ANEXO TWO RO-RO AND QUAYS CONSTRUCTION. INCLUDING CRANES FINISHED 50 Mil. Euro Port of Alicante PROLONGACIÓN DEL MUELLE 13 DEL PUERTO DE ALICANTE ENLARGEMENT OF 75 METERS FOR QUEY 13, UNTIL REACHING QUAY11 PLANNING (DESIGN) 2.8 Mil. Euro Port of Alicante PAVIMENTACIÓN Y ATRAQUE RO RO EN EL MUELLE 11 PAVEMENT OF QUAY UNTIL REACHING M AND RO-RO CONSTRUCTION PRELIMINARY PLANNING 3.6 Mil. Euro WEST MED MOS MASTER PLAN Page 95 of 132

96 Port of Alicante RELLENO Y PAVIMENTACIÓN DE SUPERFICIE ANEXA AL MUELLE 11 LANDFILL, PRELOADING AND PAVEMENT OF M2 NEXT TO QUAY 11 PRELIMINARY PLANNING 2.8 Mil. Euro Port of Alicante PROLONGACIÓN DEL MUELLE 19 ENLARGEMENT OF QUAY 19 (400 M) FEASIBILITY STUDIES 30 Mil. Euro Port of Cartegena Construction of the Multi-purpose Solid Bulk Terminal Quay in the multi-purpose Solid Bulk Terminal in the new Escombreras Basin Under construction 29,333 Mil. Euro Port of Cartegena WEST MOS Project Western Europe Sea Transports & Motorways of the Sea Viability study of MoS between Cartagena and French ports Finished 0, Mil. Euro Port of Cartegena REMOMED Project Viability study of MoS between Cartagena and Italian ports Finished 0, Mil. Euro Port of Castellon Quay East Extension. 450 mtrs. Of a new quay with Two Ro-Ro Ramps. Draught 16 mtrs. UNDER CONSTRUCTION 22.5 Mil. Port of Valencia New Facilities in East Breakwater New enclosure, pavements, services network and berthing quay ( m2, 2 quays of 1000 m.and 335 m., 16 m. depth and 3 Ro-Ro ramps). Rail and road access and rail terminal (3 tracks of m.) Partially in service Mil. See investments table Annex I Port of Segunto Infrastructure of Multipurpose of Terminal nº 1 Terminal enclosure, services network and berthing quay ( m2, 690 m. with 16 m. depth and 1 Ro-Ro ramp) and road más access Under construction 44.6 Mil See investments table Annex I WEST MED MOS MASTER PLAN Page 96 of 132

97 Port of Valencia Modernisation and improvement of safety in the rail network between Port Entrance and New Facilities in East Breakwater Fencing of the rail network and providing level crossing controllers and signalling systems to improve capacity and safety Under construction 5.0 Mil MoS between the Port of Livorno (Italy) and Port of Barcelona (Spain): maritime service and infrastructure improvements New pavement and road surface: Paving of Moll Costa: New urbanization in moll Costa: paving in pedestrian areas, new roads to traffic, drainage, trees, street furniture, vertical and horizontal signalling and lighting. Moll Costa: 6.023,876 total cost Port of Barcelona Improvement and consolidation of the MoS between the port of Civitavecchia and port of Barcelona Paving of moll Ponent North and South: The moll of Ponent is an area addressed to passengers and cargo trucks which travel from Barcelona to Livorno and other Italian cities as well as to the Balearic Islands. Moll Ponent North and South: 0,250 Mil. Improvement and consolidation of the MoS between the port of Genoa and port of Barcelona Paving of moll Moll Sant Bertran: That will allow controlling the access to the terminal the internal mobility and the traffic flow. Moll Sant Bertran: 0,775 Mil. See investments table Annex I WEST MED MOS MASTER PLAN Page 97 of 132

98 MoS between the Port of Livorno (Italy) and Port of Barcelona (Spain): maritime service and infrastructure improvements Signalling: Port of Barcelona Improvement and consolidation of the MoS between the port of Civitavecchia and port of Barcelona Signalling in Moll Sant Bertran and Moll Costa: The new signalling system will improve traffic and the organisation within the terminals Moll Sant Bertran and Moll de Costa, for both trucks and passengers. Signalling is important in order to avoid damages to the trucks and UTIs, to give safety to passengers and to improve traffic management in the terminal and reduce CO2 emissions. 0,021 Mil. Improvement and consolidation of the MoS between the port of Genoa and port of Barcelona WEST MED MOS MASTER PLAN Page 98 of 132

99 Port of Barcelona MoS between the Port of Livorno (Italy) and Port of Barcelona (Spain): maritime service and infrastructure improvements Improvement and consolidation of the MoS between the port of Civitavecchia and port of Barcelona Lightening: Lightening in Moll Costa: In order to increase levels of road safety, it has been considered a lighting measure to the railway from moll Costa and the port bypass road that runs parallel to it. Lightening in Moll Sant Bertran: Therefore lightening to be improved in moll Sant Bertran are focused, particularly at night, in order to increase safety and security for truck drivers, trucks, passengers, etc. Moll Sant Bertran: 0, Mil. Improvement and consolidation of the MoS between the port of Genoa and port of Barcelona WEST MED MOS MASTER PLAN Page 99 of 132

100 6.279 Mil. Port of Barcelona Improvement and consolidation of the MoS between the port of Livorno and port of Barcelona Improvement and consolidation of the MoS between the port of Civitavecchia and port of Barcelona Improvement and consolidation of the MoS between the port of Genoa and port of Barcelona Road and rail accesses and hinterland connections Improvement of rail and road infrastructure connecting the Port of Barcelona with France and the Iberian Peninsula Improvement of road access to terminal within the port area of Barcelona (Port Authority of Barcelona). Improvement of internal rail network with new infrastructure: Port of Barcelona Rail Master Plan. Improvement of accessibility s action concerning road infrastructures in the Port surroundings area. Total cost Mil. 1. Mil. 235.Mil Mil. See investments table Annex I Port of Barcelona MoS between the Port of Livorno (Italy) and Port of Barcelona (Spain): maritime service and infrastructure improvements Rail connection to the SSS terminals: Construction of a new railway branch in moll Costa and a lifting bridge for vehicles that connect to moll Costa s esplanade, improving the service to both Short Sea Shipping terminals, moll Costa and moll Sant Bertran ,795 Mil. Total cost See investments table Annex I Port of Barcelona MoS between the Port of Livorno, Civitavecchia and Genova (Italy) and Port of Barcelona (Spain): maritime service and infrastructure improvements Reinforcement works: Moll Barcelona: The works involve the implementation of the protection modules I and II of the moll, the reinforcement of the backfill area for these modules and the reinforcement of bollards across the dock line ,835 Mil. Total cost WEST MED MOS MASTER PLAN Page 100 of 132

101 Port of Barcelona MoS between Several ports in Italy and Port of Barcelona (Spain): maritime service and infrastructure improvements Security measures in terminal: Security and safety measures are necessary to offer a reliable service both to truck drivers and passengers. The installation of a closed circuit video system in the Terminal should allow a qualitative service Mil Porf of Valencia MOS 4 MOS ICT solutions applied to improvements in administrative and operational services MoS (project promoted by Port of Valencia, Barcelona, Livorno, Salerno, Pireaus) Submitted to the EC on 31/06/2010, pending approval (February 2011) 5,80 Mil * 7 7 Concerning the project MOS4MOS, the budget for SPAIN is : 2,255 Mil, ITALY : 1,580 Mil, GREECE : 1,280 Mil, SLOVENIA.0,450 Mil WEST MED MOS MASTER PLAN Page 101 of 132

102 10.9 The situation in France Table 24 Description of the projects in France PORT PROJECT MoS LINKS DESCRIPTION OF THE PROJECT BUDGET Toulon La Seyne- Brégaillon Terminal MoS Toulon / Bastia / Civitavecchia MoS Toulon / Bastia / Civitavecchia Port and wharves improvements, railroads mending 15,955 Mil. Euro Source of funding: - 60 % Public - 40 % Private Bastia MoS Toulon- Bastia- Civitavecchia MoS Toulon- Bastia- Civitavecchia - To create of additional capacity of reception for the ships allowing to more easily manage the stations with quay according to the frequencies arrivals/departures. - To increase the surfaces dedicated to the treatment of the goods with ground to improve the quality of service by a faster assumption of responsibility before loadings and after unloading. - To make safe the station with quay n 8 exposed to the bad weather which limits its use. - To make safe the stopover by all times by the acquisition of a tug boat which will make safe accosting even at the time of strong gales. - To improve the quality of service for the trailers by installing a system of videoalignment allowing an individualized management. 26 Mil. Euro See investments table Annex I Port of Sète Passenger Terminal Motorway of the Sea Sète Genova Motorway of the Sea Sète Genova Extension and enlargement of the Ro-Ro ramp at the quay G3 (Dock Orsetti) 1,9 Mil. Euro See investments table Annex I Port of Sète Passenger Terminal Motorway of the Sea Sète Genova Motorway of the Sea Sète Genova CCTV Implementation and access control within the Port (network of 28 cameras) 0,50 Mil. Euro See investments table Annex I Port of Sète Passenger Terminal Motorway of the Sea Sète Genova Motorway of the Sea Sète Genova Parking planning in two separate areas of the port for lorries : Eastern area : 100 parking lots Western area : 100 parking lots 3.4 Mil. Euro See investments table Annex I WEST MED MOS MASTER PLAN Page 102 of 132

103 12 Mil. Euro Port of Sète Passenger Terminal Motorway of the Sea Sète Genova Motorway of the Sea Sète Genova Extension of the Passenger Terminal at the Môle Masselin area with the creation of two additional berths capable to accommodate ships up to 200m length (one being dedicated to the Motorway of the Sea) (5 Mil. Euro for the berth dedicated to the Motorway ) See investments table Annex I Port of Sète Passenger Terminal Motorway of the Sea Sète Genova Motorway of the Sea Sète Genova Additional parking for trucks on m² 6 Mil. Euro See investments table Annex I Port of Sète Passenger Terminal Motorway of the Sea Sète Genova Motorway of the Sea Sète Genova Creation of a new ferry terminal for the passengers and conductors 26 Mil. Euro (6 Mil. Euro dedicated to the Motorway) See investments table Annex I WEST MED MOS MASTER PLAN Page 103 of 132

104 10.10 The situation in Malta Time profile of the infrastructure investments This section aims at identifying the time planning of the investments necessary to foster the development of the MoS services in the Western Mediterranean Sea, focusing on Malta. Information related to the relevant projects planned in order to overcome the bottlenecks up to 2015 has been collected from Transport Malta. This time horizon was chosen in order to allow the identification of the main port investments planned in the short-medium term, which are being implemented in order to provide enhanced infrastructures, services and hinterland connections for MoS according to the port operators and users needs. The table below shows the main port projects under construction aimed at fostering the development of Maltese MoS connections. In particular, the information collected concerns the following issues: Investments (planned and needed to overcome the current bottlenecks) Stage (under construction or planned) Start date (estimated) End date Total cost (M ) Table 25 Malta port projects PORT PROJECT DESCRIPTION OF THE PROJECT STATUS BUDGET Valletta/ Marsaxlokk Refurbishment of the Marsaxlokk and Valletta Breakwater Refurbishment of the Ports breakwaters under construction 14 Mil. Euro Valletta St. Elmo bridge Construction of Bridge under construction 2,6 Mil. Euro Valletta Deep water quay Refurbishment and upgrading of DWQ under construction 20 Mil. Euro Valletta Lascaris wharf Reconstruction of Cruise- Liner berth at Boiler Wharf under construction 4,1 Mil. Euro WEST MED MOS MASTER PLAN Page 104 of 132

105 Valletta Boiler Wharf Construction of Cruise- Liner berth at Boiler Wharf under construction 4,6 Mil. Euro Valletta Cirkewwa Ferry Terminal Construction of a ferry terminal at Cirkewwa for inter-island TEN-T traffic under construction 12 Mil. Euro Valletta Passenger terminal facilities To cater to request by customers for passenger handling facilities as most vsls are RORO / Pax vessels Planned 3,2 Mil. Euro Valletta New gate complex Upgrading Planned 0,040 Mil. Euro Valletta Upgrading of LW south 1 / 2 quay Upgrading and H&S planned 0,05 Mil. Euro WEST MED MOS MASTER PLAN Page 105 of 132

106 11 ACTIONS SUPPORTING THE MOTORWAYS OF THE SEA 11.1 Support for the demand to provide incentives for modal shift: The Ecobonus; the Italian experience The Ecobonus is the national incentive aimed at all haulage contractors that aims to encourage haulage contract companies to make better use of sea routes, in order to transfer greater shares of goods that travel on heavy road vehicles to the more convenient sea routes. For this purpose, the law nr. 265 dated 2002 made 240 million Euro available to haulage contractors via a fifteenyear allocation of funds. The 2008 Budget discounted back this amount, allocating 77 million Euro for each of the years and The main measure is aimed at supporting opting for ships rather than roads by the haulage contractors. RAM (Rete Autostrade Mediterranee S.p.a.), a public capital company, has operationally managed the Ecobonus funding since it was set up. It has also developed information and communication aimed at making beneficiaries aware of the opportunity and convenience in accessing Ecobonus funding, in addition to increasing awareness of the positive aspects that can come from the development of the MoS in the Mediterranean from an economic, environmental, security, safety and social point of view. RAM is the operating company that has the task of carrying out Motorway of the Sea-related activities on behalf of the Italian Ministry of Infrastructures and Transport. The accompanying measures have encouraged types of association between small business with the specific aim of using the sea alternatives to road transport in an efficient manner, and to aid training measures aimed at promoting access to sea routes and using them and the purchase of electronic hardware and software aimed at optimising the transport chain in maximum safety conditions. The regulations adopted via the Presidential Decree nr.205 dated 11 April 2006, on promoting intermodal modes, which adds to and completes the law 265 dated 2002, aims to help modal balance in cargo transport in Italy, by introducing incentive-providing systems aimed at supporting a rapid increase in the use of the sea transport mode. For this reason, the law grants incentives for transporters who choose to place their accompanied or unaccompanied heavy vehicles (lorries and articulated trucks) on ships, instead of using road and motorway routes, thus supporting the transfer of goods to regular existing or new maritime services that can be traced to the so-called Motorways of the Sea. The beneficiaries are all haulage contract companies, including existing temporary or permanent consortiums, and simple transport operator associations that board articulated truck and lorries in compliance with EU laws (accompanied or not by the drivers) onto cargo ships (RORO and ROPAX), in order to exploit the sea routes identified by the criteria set out in paragraph 6 of article 3 of the stated law. To gain access to contributions, the interested parties must submit an application to the Ministry of Infrastructures and Transport by January 31 of the solar year after the one in which the trips were completed. The application must contain the undertaking by the parties involved to maintain the same number of trips as the ones made or the same amount of goods transported in the prior three-year period for the three years following application. WEST MED MOS MASTER PLAN Page 106 of 132

107 The benefit is applied to certain sea routes that ensure regular connections between two ports, which create an efficient intermodal cargo transport system and which avoid geographical obstacles and areas with a high rate of traffic congestion. In particular, the sea routes for which incentives can be gained were identified by a Ministerial Decree on 31 January 2007 (and later Ministerial Decree as an integration of the stated sea routes for cargo transport on 26 March 2007 and 14 September 2009) as implementation of article 3, paragraph 2-quarter, of the law nr. 265 dated 22 November 2002, on the basis of the following criteria: Suitability of the sea route to aid the transfer of sizable shares of traffic from the road mode to maritime mode; Suitability of the sea route for reducing road congestion on the national road network; Foreseeable improvement in environmental standards, that can be obtained after using sea routes in place of the corresponding road routes. The benefits are paid out on the condition that the rates remain constant, in proportion to the inflation rate. Contributions, as set out in article 2, paragraph 2, letter a) of the Presidential Decree 205/2006, are paid based on the value attributed to the difference between the external costs generated by road transport and by sea transport of goods on each identified route. The amount to be paid can be a maximum of 20% of the rates applied on existing routes and 30% of transport prices on new routes. The Ecobonus structure presumes an accumulation with other incentives aimed at renewing the road haulage system and the use of the motorways of the sea, but the total of aid cannot exceed the 30% ceiling, in accordance with dispositions and EU regulations (Sicilian regional law 11/2004). To be able to access the incentives, applicant haulage contract companies must make at least 80 trips/year on each route. A further contribution has also been foreseen, that will be paid to subjects that exceed 1600 trips per years, with the aim of stimulating the maximum use possible of sea transport. To access benefits as set out in article 2, paragraph 1, letter b), the subjects involved must submit rigorous business plans aimed at: Setting up new forms of company aggregation, carrying out staff training courses, and purchasing equipment and devices for improving cargo transport safety. For the various purposes stated above, the Ministry will define the relative cost ceilings in ministerial decrees. For the funding set out in article 4, in this case too, an evaluation and check on applications will be carried out by the Commission, using the modes set out in the Ministry of Transport decree, taking into account in particular the priority criteria listed below: Company reorganisation, also via the formation of groups as foreseen by current corporate legislation; Staff training; Purchase of equipment and devices for improving safety. The Ministry approves the list of applications submitted by the interested subjects in order to obtain funding as set out in article 4 of the Presidential Decree by 30 September each year, based on the results of the Commission's work. The effects of the Ecobonus introduction concern: The birth of new organisational models that answer the challenges set by a strongly competitive global economy more efficiently, by preparing mid-long term strategies; WEST MED MOS MASTER PLAN Page 107 of 132

108 The introduction of new professional figures who can contribute to improving the services offered. The Ministry of Transport Decree dated 31 January 2007, attachment I, identified the following sea routes covered by regular scheduled services as the ones for which contributions would be issued: National: Catania-Civitavecchia; Catania-Livorno; Catania-Genoa; Catania-Naples; Catania- Ravenna; Messina-Salerno; Palermo-Civitavecchia; Palermo-Genoa; Palermo-Naples; Palermo- Salerno. International: Barcelona-Genoa; Barcelona-Palermo; Barcelona-Civitavecchia; Valencia-Genoa; Toulon-Civitavecchia; Tunisi-Genoa; Tunisi-Livorno; Tunisi-Civitavecchia; Tunisi-Naples. The decree dated 14 September 2009 also included the routes Civitavecchia-Messina, Savona Vado-Termini Imerese and Marina di Carrara Castellon de la Plan as being applicable to incentive laws. The important results obtained by this support measure and the quality of Ecobonus management, carried out by RAM, can be seen in the figure provided as an example. It shows the number of EU routes in the Western Mediterranean involved in the modal shift support project, with an indication of the number of trips (equivalent to load units subtracted from all road ) that can be considered eligible by legislative criteria (at least eighty trips per route carried out by the applicant haulage contract company); in addition to the consideration that the total number of trips in 2008 that received the Ecobonus on these routes was 134, 693. Below are some tables providing examples that contain aggregate and more complete data divided by applications processed for the years 2007/2008/2009. WEST MED MOS MASTER PLAN Page 108 of 132

109 Table 26 Ecobonus, applications elaborated during the triennium REFERENCE YEAR DOSSIERS PROCESSED TOTAL CONTRIBUTIONS PAID OUT (IN ) * Fonte: Ram S.p.a. elaboration Table 27 Ecobonus, main national routes (2007) NATIONAL ROUTES (2007) NUMBER OF TRIPS Messina-Salerno Catania-Napoli Napoli-Palermo Genova-Palermo Fonte: Ram S.p.a. elaboration Table 28 Ecobonus, main EU routes (2007) EU ROUTES (2007) NUMBER OF TRIPS Genova-Barcellona Civitavecchia-Barcellona Salerno-Valencia Civitavecchia-Tolone Fonte: Ram s.p.a. elaboration 8 Preliminary data WEST MED MOS MASTER PLAN Page 109 of 132

110 Table 29 Ecobonus, main national routes (2008) NATIONAL ROUTES (2008) NUMBER OF TRIPS Messina-Salerno Napoli-Palermo Catania-Napoli Genova-Palermo Fonte: Ram S.p.a. elaboration Table 30 Ecobonus, main EU routes (2008) EU ROUTES (2008) NUMBER OF TRIPS Civitavecchia-Barcellona Genova-Barcellona Salerno-Valencia Livorno-Barcellona Fonte: Ram S.p.a. elaboration WEST MED MOS MASTER PLAN Page 110 of 132

111 Ecobonus 2007 Rot te nazionali 68% Rot te comunitarie 32% Source: Ram elaboration Figure 56 - Ecobonus, shares of national and communitarian routes 2007 Ecobonus 2008 Rotte nazionali 71% Rotte comunitarie Source: Ram elaboration Figure 57 - Ecobonus, shares of national and communitarian routes 2008 WEST MED MOS MASTER PLAN Page 111 of 132

112 Table 31 Ecobonus, transit in main national ports NATIONAL PORTS TRANSITS (2007) TRANSITS (2008) Genova Salerno Palermo Catania Source: Ram elaboration Table 32 Ecobonus, transit in main EU ports EU PORTS TRANSITS (2007) TRANSITS (2008) Barcellona Valencia Tolone Tarragona Source: Ram elaboration WEST MED MOS MASTER PLAN Page 112 of 132

113 11.2 Support for the demand to provide incentives for modal shift: Ecobonus; the Spanish proposal Based on tendency scenario the application of an Ecobonus of 15% from 2013 has been considered. In this scenario the RoRo traffic between Italy and Spain increases from 5,4 MTon in 2008 up to 10,5 MTon in 2030, with a CAGR of 3,0%. This way, forecasted traffic in 2030 is 12% higher than in tendency scenario. The higher growths are given in South East and South West facades, although the resultant volume of traffic is low. In terms of modal share, RoRo traffic weight increases from 42% in 2008 to 51% in 2030, 5,5 p.p. more than in tendency scenario. Hence, the application of Ecobonus is the measure with higher impact on Spain-Italy RoRo traffic, due to the sensitivity to costs as well as to relative improvement of RoRo costs against road. Source: Report of Spain, West Med Mos Master Plan Figure 58 - Tendency scenario Spain-Italy RoRo traffic evolution Source: Report of Spain, West Med Mos Master Plan Figure 58 B - Ecobonus scenario vs. Tendency WEST MED MOS MASTER PLAN Page 113 of 132

114 Spain France Ecobonus application scenario Based on tendency scenario the application of an Ecobonus of 15% from 2013 has been considered. In this scenario the RoRo traffic increases from MTon in 2008 up to MTon in 2030, with a CAGR of 3,7%. This way, forecasted traffic in 2030 is 15% higher than in tendency scenario. The higher growths are given in those facades with lower RoRo traffic and higher distances to France (South East and South West). In terms of modal share, RoRo traffic penetration increases from 0,9% in 2008 to 2% in 2030, 0,2 p.p. more than in tendency scenario. Hence, the application of Ecobonus is the measure with higher impact on Spain-France RoRo traffic, due to the sensitivity to costs as well as to relative costs improvement of RoRo against road. Nevertheless, the resultant traffic for each connection is low, being Ebro Corridor-France the highest connection with 85 KTon. Source: Report of Spain, West Med Mos Master Plan Figure 59 - Spain Ecobonus scenario vs.tendency scenario (tons) WEST MED MOS MASTER PLAN Page 114 of 132

115 Source: Report of Spain, West Med Mos Master Plan Figure 60 - Spain Ecobonus scenario 2013 (tons) Source: Report of Spain, West Med Mos Master Plan Figure 61 - Spain Ecobonus scenario 2020 (tons) WEST MED MOS MASTER PLAN Page 115 of 132

116 Source: Report of Spain, West Med Mos Master Plan Figure 62 - Spain Ecobonus scenario 2030 (tons) WEST MED MOS MASTER PLAN Page 116 of 132

117 11.3 Support for the demand to provide incentives for modal shift: Ecobonus; the Maltese proposal The stakeholders consultation, which was performed as part of the requirements for the development of the West Med MoS Master Plan gave evidence of the main MoS actors interest in the Italian Ecobonus system of incentives for truckers to move off the roads and onto the Motorways of the Sea. The Ecobonus concept has demonstrated that it is working well enough to be a model for Europe, in order to help relieve traffic congestion, increase safety on the roads, and improve environmental protection as well as road hauliers working conditions. The initiative constitutes a good example of disincentives and limiting actions to road traffic. The eco-bonus concept, established by Italian D.p.r. 205/2006 (Decree of the President of the Republic), has been analysed and investigated to evaluate its applicability and effectiveness in overcoming current barriers for the development of the Motorways of the Sea. The concept was introduced by the Italian Government to promote a modal shift from road to maritime transport. The initiative aims at supporting a better distribution of goods flow and reducing road congestion. The contribution comprises a discount on the maritime link for all road hauliers that choose maritime transport instead of road transport. Any European road haulage company can, by itself or in cooperation with other companies, benefit from this bonus by shipping its own cargo (with or without driver) by sea instead of road. The Italian Ministry of Transport identified (ref.: Ministerial Decrees of and of ) 32 sea routes that could enjoy the Ecobonus, of which 12 are international. Road hauliers have the opportunity to engage in any new sea routes, other than those included in the list defined by the Italian Government, and as long as new routes don't replicate the existing ones. Ecobonus beneficiaries are contractors and trucking companies, also associated with each other or with marine operators, which work in Italy, and which make at least 80 annual trips along the same route. The reimbursement cannot exceed a maximum cap of 30% of every connection fee. The total amount of this fund is 240 million, to be distributed over three years. The application for a grant is set up by a Decree of the Ministry of Transport. The road hauliers are the beneficiaries of these grants, and according to the payment system they are required to ask for the contribution by 31 January of the following year in which they applied for an ecobonus contribution and have matched the mandatory criteria. A company must commit itself to maintain the same number of trips (and the same quantity of goods) using combined roadsea transport for the three-year period following the year in which it has requested the incentive. The Ministry of Transport has set the maximum Ecobonus refund percentage (ref.: Ministerial Decree of ), to be calculated on the after-tax ferry tickets cost, depending on the specific route and on the number of crossings. The European Union (EU) accepted and allowed6 the implementation of the eco-bonus initiative adopted by the Italian Government, but currently it is not foreseen that such an initiative would be adopted at EU level. However, the initiative could be expanded to EU level following a discussion between West Med MoS partners based on the Italian experience. The eco-bonus contribution will have a positive impact on MoS development if it will be extended to those sea routes characterised by a large positive impact on modal shift. This prerequisite is strictly linked with the objective set up in the TEN-T guidelines for the sea motorways projects of reducing road congestion through modal shift. The "eco-bonus" initiative aims at supporting a better distribution of good flows by mode of transport. A modal shift from road to sea transport can help in reducing road congestion. WEST MED MOS MASTER PLAN Page 117 of 132

118 In assessing the Maltese scenario, it should be taken into consideration that Malta is an island and the potential modal shift is not relevant when based on national road good flows. However, the theoretical saving of costs could be achieved with a MoS hub placed in Malta, as can be seen by comparing the route Spain Turkey (via Trieste) with Spain Turkey (via Malta). In light of the specific Malta context, the opportunity to replicate the eco-bonus initiative could be evaluated for new MoS services linking ports in Western Mediterranean with ports in the Easter Mediterranean and/or ports in different African countries via Malta Contributions to shipping companies for developing new routes: Marco Polo II programme, Italian analysis The Italian analysis The Marco Polo II programme, similarly to the previous Marco Polo I programme, aims to reduce road congestion, improve environmental performance in transport systems and increase intermodal transport, thus contributing to a more efficient and sustainable transport system. The programme will last for 7 years and aims to transfer a substantial part of the forecast aggregate annual increase in international road cargo traffic, measured in tonnes/kilometre, to short-distance sea transport, Rail transport and internal waterways or to a combination of transport modes in which the road routes are the shortest possible. The programme, referring to the Environment and Transport sector of the European Commission, can be applied to actions concerning the territory of at least two member states, or concerning the territory of at least one member state and the territory of a non-eu country nearby. The programme is open to participation from countries who are EU candidate states and such participation is governed by the conditions set out in the association agreements with these countries, and on the basis of the regulations set by the Council decision for association of each country involved. The programme is also open to EFTA and SEE countries, and nearby third-party countries, based on additional allocations and following procedures that must be agreed with the stated countries. The following actions can be funded by the Marco Polo II programme: a) Catalysing actions, with specific reference to the ones aimed at improving synergies in the rail, internal waterways and short-distance sea transport sectors, including the motorways of the sea, via a better use of existing infrastructures; b) Actions for the motorways of the sea; within the European Union, these actions use the trans- European networks as set out in the European Parliament and Council decision nr. 1692/96&CE, dated 23 July 1996, on EU tendencies for the development of the trans-european transport network; c) Actions for transfer between modes; d) Actions to reduce traffic; e) Common learning actions. To obtain funding, the actions must be submitted by a consortium comprising two or more companies set up in at least two different member states or at least in one member state and a WEST MED MOS MASTER PLAN Page 118 of 132

119 nearby third non-eu country, or, in the case of a transport connection with a nearby third-party country, and exceptionally, by a company set up in one member state 9. The funds earmarked for carrying out of the Marco Polo II programme, for the period between 1 January 2007 and 31 December 2013, amount to 450 million Euro and the Commission expects that every million spent with the Marco Polo Programme will generate at least six million in terms of social and environmental effects. In the first 3 years of the Marco Polo II programme ( ), 70 projects were selected to receive funding. The maximum subsidy issued for each project ranges from 0.37 million Euro to 7.5 million Euro. The aim of these projects is to transfer about 54 billion tonnes/km of goods per year from the roads, with total benefits for the general public (lower external environmental and social costs) estimated to stand at 1.4 billion Euro. The results of the 2010 call for proposal are currently awaited for further funding for new projects. In the 2009 call for proposal, 22 projects for modal shift actions were funded with a total of million Euro. 9 projects were linked to railways (corresponding to 40.7% of the total of goods who have completed modal shift), while 5 were linked to sea transport (with a total of 22.7% of goods). Two catalyst actions, two common learning actions and two traffic avoidance actions were also funded. Only two funded projects come under the category of motorway of the sea action: Both concern connections between France, Belgium and Spain. In particular, the RORO Past France project concerns a cargo service between Bilbao and Zeebrugge, while the FRES MOS project concerns a service between St Nazaire and Gijòn. The actions linked to the motorways of the sea aim at an innovation that is linked to both the service and the infrastructures and logistics (port access, connections with hinterland etc) and must allow modal shift involving at least 200 million tonnes/km per contract. The subsidy ceiling is 25% of the cost of each action, but can never exceed 2 Euro for each 500 tonnes/km shifted from road to sea, or 2000 cubic metres per km. It must be pointed out that one of the main differences between the projects specifically considered as being for the motorways of the sea and the other Short Sea Shipping projects lies in the complementary characteristic with the TEN-T networks. In fact, while the TEN-T programme mainly finances infrastructures for the Motorways of the Sea and the beneficiaries are the Member States, the Marco Polo programme instead favours the funding of services, where the beneficiaries are private parties. It must also be pointed out that over the years, all the lines activated in the Western Mediterranean have been able to benefit from Marco Polo programme support. Indeed, the projects that received EU funding in the period for development were the following: MARIS for the Livorno - Valencia route in 2004; ATTAC between Civitavecchia and Toulon in 2005; Marocco Seaways between Genoa and Barcelona and Tangiers in 2005; WestMed Bridge between Civitavecchia and Barcelona in 2007; Ceramica 2 between Sassuolo and Castellon via Marina di Carrara in 2007; Albatross between Livorno and Barcelona in The French Analysis At European level, many projects have been registered with the Marco Polo II project (Marco Polo II is an EU funding scheme that supports innovative actions for sustainable modal shift. The program aims to reduce overall road freight transport by ecouraging the use of alternative modes 9 The companies set up outside one of the participating countries can also be associated with the projects, but cannot in any case benefit from EU funding as foreseen in the programme. WEST MED MOS MASTER PLAN Page 119 of 132

120 of transport more compatible with the environment (rail, inland waterways, short-sea shipping routes). Marco Polo is designed for commercial companies (private or public) who decide to make a sustainable modal shift in their transportation/logistics. Policy decisions regarding Marco Polo are taken by the European Commission. The operational management of the program has been entrusted to the Executive Agency for Competitiveness and Innovation (EACI) since types of actions: Motorways of the Sea Actions (MOS) The Marco Polo program takes over the Motorways of the Sea concept as clarified in the new TEN-T guidelines adopted on April 29, Now, only category A ports are eligible (internationally important seaports with a total annual volume of traffic of > 1.5 million tonnes of freight) relating to actions that aim to transfer road freight to regular shipping lines to bypass natural obstacles or to avoid congested routes. Actions must be innovative, driven by the private sector and have a short term vision. Modal shift actions (MOD) These are actions which directly and immediately transfer road freight to other more environmentally friendly modes of transport (maritime, rail, river). They are not necessarily innovative actions but clear actions to transfer traffic off the roads. This could be, for example to start a new service or to significantly improve an existing service. Catalyst Actions (CAT) This concerns modifying the way non-road freight transport is used. Actions must overcome structural barriers to the market to develop intermodal solutions. Actions must be very innovative and take a general approach to problems faced by operators in a region. The actions must be carried out in 3 steps: definition of barriers, presentation of a highly innovative solution and proposal of a modal transfer service with strong growth potential. Traffic Avoidance Actions (TAV) These are innovative actions integrating a strategy of road freight avoidance into production logistics. Actions are not intended to transfer road freight to another mode, but to find production and distribution processes to avoid or limit the use of road transport. Innovative actions are expected. Examples of actions: a combination of goods of different weights, reduced empty backhauls, reduction in the volume of shipments. Common learning actions (CLA) These are the actions to improve cooperation and training of the different people involved in the merchandise transportation chain to promote the dissemination of good practices and promote sustainable transport across Europe. WEST MED MOS MASTER PLAN Page 120 of 132

121 Figure 63 - Marco Polo II Programme, martime lines These maritime lines which have gradually opened since 2000 have seen more or less rapid success (data from 2007, before the effects of the economic crisis of 2008). An increase in performance on all lines can be seen, the settling of the Genoa-Barcelona line is due to the opening of the Genoa - Tangier via Barcelona line which is advancing significantly. Analysis of traffic data in the period (table below) Please note that passenger traffic is capped on nearly all of the lines. WEST MED MOS MASTER PLAN Page 121 of 132

122 Figure 64 - Marco Polo II Programme, maritime lines lines were discontinued: Leghorn-Tarragona in 2005 (7000 HGVs per year, owner SUARDIAZ) Toulon - Civitavecchia in 2009 (13,100 HGVs per year in 2007, owners Grimaldi / LDA) WEST MED MOS MASTER PLAN Page 122 of 132