Maritime and Inland Waterway Transport Container Transferium show case

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1 The market uptake of transport research and the role of actors and regions Maritime and Inland Waterway Transport Container Transferium show case Market-up is funded by the European Commission DG Research under the 7th FP

2 INTRODUCTION TO SHOW CASE The continuous growth of container flows in the Western-European ports has led to an increased pressure on the land side, including the hinterland road network of the ports. In recent years this has led to the search for capacity optimization on port hinterland connections. Different mode-, time- and route-shift options and implementation mechanisms are being investigated for the available hinterland transport modes: road, rail and inland waterway transport. To improve the port hinterland accessibility different initiatives can be taken. One of these initiatives is the development of a container transferium. It is an inland container terminal located near a port and its functional pattern is aimed at improving efficiency in and around the seaport by means of combining container flows on the port-transferium link. The port value added operations are performed onsite and further hinterland transport is performed from there. 2 This document is a summarized non-technical paper on the work developed in relation to the Beverdonk container terminal in Grobbendonk (Flanders, Belgium). Market-up project aims to identify barriers (both social and technical) and drivers for the market uptake of transport research results. Via this identification process the project aims to contribute to the increased role of the transport sector in delivering a low carbon economy, in the search of tools to achieve two main goals: that research results are uptaken by the market and that European research supporting covers all actors, including the weakest ones. This show case is one of the seven cases assessed in Market-up. Other show cases include: Aviation Bio fuels Intermodal VEL Wagon Cargo Sprinter: rail door to door solutions Deployment of Green Technologies within the Maritime Sector: SO2 Abatement Technology Electromobility Bio fuels for Land Transport

3 Location Goals Functions CASE DESCRIPTION The purpose of a container transferium, being close to the port and having very fast and frequent barge connections with the port (which is possible with inland terminals) is to serve trucks away from port. Containers are bundled in the container transferium. With this project, DP World (the innovator) tries to respond to the demand of the market to improve the efficiency of the supply chain. This improved efficiency would allow reducing the costs per unit of shipped goods. Compared to a traditional inland hub, a container transferium is located in the proximity of a seaport and provides a broader range of services. The differences based on different sources are summarized in the table below. A container transferium is different from the inland terminal because of its scope. The purpose of an inland terminal is uniquely to spread the container volumes serving the local customers within the area of km (depending on the distance between the inland terminal and the seaport). The scope of the inland terminal is to change the modality of the cargo flow from the port and to serve an area around it. The scope of a transferium is based on three main pillars: handling of the local cargo volumes; being a truck bundling hub (for trucks coming from the hinterland) to avoid the last leg to the hinterland; being a barge bundling hub. 3 In the first phase of operations 2 ha of the terminal are in use, which allow for the maximum capacity of TEU/year. In total the development of 10 ha container yard area is planned to reach the maximum capacity of TEU/year. The terminal started operations on 2 January Inland Hub Extension of the seaport Consolidation and deconsolidation centres Depot for empties Temporary storage Cargo bundling point Broader logistics zone; container repair, VAL activities, forwarders etc. Truck-Barge Prevent overcrowding of the seaport area / manage traffic Limit negative externalities of growing volumes Increase throughput in the port and inland In the vicinity of its service area of loading/unloading, remote from the seaport Container Transferium Extension of the seaport Consolidation of container flows Depot for empties Enable a reliable transport system between the transferium and terminals in the seaport Customs bonded Truck-Barge / Barge-Barge Reduce congestion around the port Reduce environmental problems Improve efficiency of deep sea terminals Buffer for peak moments Optimise barge handling of small parties Modal shift Close to the major facility (seaport)

4 ABOUT THE ASSESSMENT This assessment was undertaken by applying the Transport Innovation System (TIS) analysis. This method was developed by a group of Swedish researchers led by Ms. Anna Bergek (for more information consult the paper referenced as Bergek et al., 2008) and aims to provide a practically useful analytical framework that allows for the assessment of an innovation system performance as well as the identification of factors influencing performance of those innovations. The assessment is based on a scheme of analysis that consists of six steps: Step 1 The starting point of analysis: defining the TIS in focus Step 2 Identifying the structural components of the TIS Step 3 Mapping the functional pattern of the TIS Step 4 Assessing the functionality of the TIS and setting process goals Step 5 Identify inducement and blocking mechanisms Step 6 Specify key policy issues Step 1 Starting point of the analysis: defining the TIS in focus 4 The location of the Beverdonk container terminal in Grobbendonk was chosen because of its strategic position at the junction of the motorway E34 and E313, where most of the trucks serving the port of Antwerp from the East direction have to pass. The location is close to the port with the purpose of organizing an efficient and fast barge service between the transferium and terminals in the port. Beverdonk Container Transferium NV qualifies under EU definition of small and medium enterprise (SME). It employs less than 10 employees and its initial capital is EUR. It does not fit the autonomy requirement, because it is owned by two non-smes: DP World (80%) and Antwerp Port Authority (20%). The Business Case Two alternative routes: Port area destination (including bottleneck E313) Port area Beverdonk destination When choosing to use Beverdonk container transferium: Extra transhipment involved But, congestion avoided Instead of 4 boxes/truck/day 12 boxes/truck/day can be delivered Means BIG efficiency increases for trucking companies

5 Step 2 Identifying the structural components of the TIS This step envisages to characterize the structure of the innovation system. The container transferium case study covers two modes: inland navigation and maritime transport. The technical innovation systems of both these modes are relevant for this innovation case. The initiator in this case is DP World, a global terminal operator which operates more than 60 terminals in the world. Antwerp Port Authority is involved in the project as the strategic partner with the share of 20% project ownership. With this the Port Authority seeks to offer a neutral platform for port users. From the political and government side there was support from Flemish minister president. On the practical side, there was support provided from sources, which include European Regional Development Fund (ERDF) and Enterprise Agency (Agentschap Ondernemen) of the Flemish government. The European Commission had to authorise the state aid received. At the container transferium in Beverdonk, two types of customers can be distinguished: Warehouses physically around the transferium; Final customers (final origin or destination) in the Ruhr area (still a lot of trucks going up and down: the container transferium avoids that these trucks enter the port). Step 3 Mapping the functional pattern of the TIS According to research there are seven core functions that explain how an innovation system works in comparison to how it is composed or structured. A review of the current situation for each of these functions leads to the following conclusions: 5 Knowledge development and diffusion: Several developments in the economy have led to the realization of the need to optimize the port operations, specifically targeting one of the main bottlenecks of the ports the hinterland connections Influence on the direction of search: The political and economic landscape has been favourable for the development of the container transferium in Beverdonk. This includes the EU policies on intermodality, political support on regional and local level and positive public opinion on the possible impacts of the container transferium project Entrepreneurial experimentation: The case of container transferium in Antwerp is the first implementation case of this concept. Another similar project is under development in Rhine-Scheldt delta in Alblasserdam, near the port of Rotterdam to serve Maasvlakte 2 terminal, but no operations have been started yet. Also, in other ports of Europe a similar concept is considered, but there are no implementation cases Market Formation: With this project DP World, the innovator, tries to respond to the demand of the market to improve the efficiency of the supply chain. This improved efficiency would allow reducing the costs per unit of shipped goods. The government has played a significant role in increasing the competitiveness of the terminal. The subsidies received cover part of the terminal building expenses and allow the terminal to offer its clients more advantageous prices (in the starting phase). Additionally, the planned implementation in Belgium of kilometre charging for heavy goods vehicles according to Eurovignette directive, will allow the container transferium to exploit its advantageous geographical location Legitimation: Increased efficiency of road transport operations, Improved" modal split of the port, Logistics operations extended to the hinterland, Existing client base to be served in the area, Rerouting and modal shift for some cargo

6 Resource mobilization: A range of resources have been mobilized to develop the container transferium project for a total cost of the project: 3.2 million Bank loans European Regional Development Fund (ERDF) subsidy 1.3 million Flemish government subsidy 703 thousand Land owned by Flemish Region, concession of 25 years Development of positive externalities: The operations of container transferium are currently in the initiation phase, with the operations started on 2 January Therefore, no positive externalities could be observed during research. However, some positive externalities predicted include positive effects on the modal split of the port Step 4 Assessing the functionality of the TIS and setting process goals The development of the TIS in focus, until this point in time, can be considered successful. Several developments in the economy have been favourable to the development of the container transferium case: High pre-crisis cargo volumes Congested port hinterland links Situation in road haulage market 6 Future forecast developments reinforce the economic viability of transferium in the long run Price pressures Haulage market trends Scarcity of workforce Energy prices Step 5 Identify inducement and blocking mechanisms Several inducement and blocking mechanisms with greater or lesser influence on the case study were identified during research Inducement / positive mechanisms and issues Flemish government is in the process of looking for such initiatives to support; the social need: insufficient capacity of highways; no opposition on the local level; helps to win votes for regional politicians. Blocking / hindering mechanisms and issues fierce negative comments from competing terminals in the port; competition from other terminals (e.g., Euroports Containers Meerhout); the customer base, mainly road hauliers, were initially not aware of the advantages. Truckers had to be convinced.

7 Step 6 Specify key policy issues One of the success factors in practical operation of the transferium is that a truck should have the possibility to make a turnaround at the transferium. It means that when it brings a loaded or empty container to the terminal, another empty or loaded container should be there for the next road haulage operation. For the container transferium it is important that the repositioning of empty containers is supported by the government. Another factor that is important is the availability of good infrastructure. For the case of transferium, where the economics of the project are based on time savings that the transferium provides, the quality of the road infrastructure is important. It should ensure easy access to the transferium for road hauliers. Key Sources Used Antwerp Port Authority. (2010) Press release: Port Authority takes stake in Beverdonk Container Terminal. Aronietis, R., Van de Voorde, E., and Vanelslander, T. (2010) Port competitiveness determinants of selected European ports in the containerized cargo market. IAME 2010 Conference, International Association of Maritime Economists. Bergek, Anna; Jacobsson, Staffan; Carlsson, Bo; Lindmark, Sven; Rickne, Annika; February Analyzing the functional dynamics of technological innovation systems: A scheme of analysis. 7 DP World. (2012) About DP World. European Commission. (2011b) SA Belgium - Containertransferium Beverdonk (C(2011) 7286 final). Havenbedrijf Rotterdam N.V. (2010) Container Transferium wordt stil en duurzaam. Kerstens, G. (2012) Interview with Gert Kerstens, DP World Intermodal, Intermodal Manager. Aronietis, Raimonds and Pauwels, Tom. Antwerp A complete version of this case can be found in Deliverable D31 available from project web site

8 The market uptake of transport research and the role of actors and regions Consortium Consultores em Transportes, Inovação e Sistemas (PT) Fraunhofer Institute for Systems and Innovation Research (DE) University of Antwerp (BE) University of Zilina / Centre for Transport Research (SK) Budapest University of Technology and Economics (HU) INNOVA S.p.A (IT) European Marine Equipment Council (BE) European Association of Automotive Suppliers (BE) Inovamais SA (PT) Stay informed Find out more by registering at For more information, please contact market-up@tis.pt