Recommendations on the promotion of accessibility and connection of remote areas in the southern and eastern Baltic Sea Region
What is ACL about? The south-eastern Baltic Sea Region, the so-called Amber Coast, and its natural hinterland connections to the Baltic States, the north-west of Russia, Belarus, and Ukraine, has shown a dynamic increase of traffic flows and linkages, in particular between the European Union and Russia, Belarus as well as the northern part of Ukraine in the past ten years. Logistical and service potential inherent in this region is of high value for the transport and logistics sector, but due to a partially insufficiently developed and used infrastructure currently still largely untapped or hidden, just like amber. With the EUproject ACL it shall be brought into the light of day. As part of the Interreg IVB project within ACL, the goal is pursued to promote the accessibility and connection to and within these peripheral regions through the development of innovative and sustainable structures in the hinterland connections, logistics hubs, and especially multimodal logistics centres. Therefore, a team of 19 projects partners, consisting of ports, logistics players, public authorities, research institutions, and international associations from six countries, has been involved in the analytical project work, evaluating accessibility of the ACLregion by describing five different transport corridors, major obstacles and barriers in border crossing transports as well as prospects of multimodal transport solutions. What is the aim of this package of measures? Fundamental findings of the mentioned work have been merged in form of a summary paper, containing the findings of several studies on the contemplated region, and furthermore translated within this brochure into specific recommendations on the comprehensive improvement of the accessibility and attractiveness of the Amber Coast and its hinterland. The present paper shall be used as an instrument for stakeholders from politics and logistics, helping to name major problems in every region and to supply proposals und recommendations for solutions at the higher level.
Involved project partners Scientific and Technological Park BNTU Polytechnic Belarusian Association of International Forwarders School of Business and Management of Technology BSU Fact 1: The creation of the Customs Union and the EurAsian Economic Community had a positive impact on the development of foreign trade turnover in Belarus. In consequence, freight volumes increased between Belarus and the countries of the EurAsian Economic Community and the EU. In order to meet this rising demand, numerous sustainable rail transit traffic directions have been formed to attain a well-developed railway network. Through the road network freight can be transported to almost all areas year-round. To make sure being able to handle the rising freight volume in future, it is advised to» develop a container transport of specialised container trains with a regular schedule,» continue reconstruction of trunk roads and bringing them to the level of European standards, and» build further transport and logistics centres along the main roads and at boundary points enabling multimodal transportation. belarus Fact 2: Customs procedure in Belarus is carried out with the help of modern information technologies. Thus, the document flow is accelerated and the amount of cargo delays is reduced. Belarus established a preliminary information system for the estimated importation of goods by road in 2012, which will be complemented by a similar information system for importation of goods by rail in October 2014. In order to gain further advantages of modern information systems, it is recommended to» deploy and expand the use of further electronic systems at the customs declaration,» simplify the documents for export and import operations, and» implement electronic application systems for reducing waiting times of vehicles at checkpoints. Fact 3: Currently, 13 logistics centres are operating in Belarus. The Belarusian transport market is represented by public and private companies, whereas the market is dominated by private enterprises. In terms of the customs clearance of goods, the existing warehouses provide a round the clock service in close collaboration with the customs authorities. To further improve the already effective transportation network in future, it is advised to» develop the logistics infrastructure in order to optimise the information, communication, and trading processes between different warehouses, checkpoints, the customs authorities, etc. and» unify the legislation in the field of identification of goods, labelling, and technical regulations. 1
2 Involved project partners FDT - Association of Danish Transport and Logistics Centres Skandinavisk Transport Centre / Port of Køge Fact 1: Cargo transports of explosives with a mass explosion hazard and an insensitive substance with a mass explosion hazard (ADR classes 1.1 and 1.5) have special operating times as well as limits in tunnels within Denmark. Although there is only a small number of tunnels on the main routes and this fact is not only limited to Denmark, problems may occur for carriers in terms of necessary rerouting activities, owed to unforeseeable incidents. Therefore, it is important to provide hauliers an English alternative to inform themselves about transport restrictions on platforms with real time information to be able to adapt their transportation schedule flexibly, especially at the occurrence of incidents on planned routes. Denmark Fact 2: In terms of the bureaucratic effort, Denmark ranks indeed low due to the Schengen Agreement and the Nordic Passport Union. To further guarantee a low bureaucratic effort in spite of the expected increasing transport volume, it can be helpful to» reduce the amount of required information and approvals for imports,» unify forms for transit within the ACL region for a more efficient processing of administrative activities, and» use electronic systems to optimise the turn-around-times for the import of goods and to hinder waiting times.
Involved project partners none Fact 1: While the bureaucratic effort for imports from further EU countries is rated low to very low in almost 75 % of the border crossings, the import of goods from Russia, Belarus, and Ukraine requires a high to very high bureaucratic effort in three out of four border crossings. The difference may refer to the Schengen Border Code, which helps to reduce administrative issues between the members as well as hindrances with language. Therefore, it is recommended to» soften the strict necessary paperwork for imports from the Customs Union RBK and Ukraine,» establish international harmonised acceptance of English transport and freight documents (e.g. in addition to the local language), and» offer additional training for border staff (e.g. language courses). Estonia Fact 2: Waiting times for border and customer processing in the ACL region arise regardless of the country of origin or the destination. Anyhow, in one out of four border crossings via road coming from Ukraine, the vehicles have to wait 24 hours to 48 hours for customs clearance at the border to enter Estonia. Thus, it is useful to» establish a prior notification system to minimise waiting times,» enlarge the capacity of customs clearance facilities to increase the number of border crossings,» improve the efficiency of the clearance process (e.g. training and additional qualifications for border staff), and» reduce the required paperwork. Fact 3: About 40 % of the transport companies have never made payments to low level officials to influence the clearance process. Those payments are no rare method in the ACL region to expedite the administrative process, avoid waiting times or delays or to obtain licenses. To prevent those methods it may help to» avoid policies that enforce rent-seeking and corruption, e.g. improve anti-corruption initiatives or action plans,» establish measures to facilitate the sincerity in the Estonian clearance process,» arrange (international) agreements including strict advices for handling corrupt behaviour as well as related sanctions, and» create possibilities to control the implementation and effects of those guidances. 3
4 Involved project partners Port of Hamburg Marketing Ferryport Sassnitz Fraunhofer Center for Maritime Logistics and Services Ministry of Energy, Infrastructure and State Development Mecklenburg-Vorpommern Investor Center Ostbrandenburg Baltic Sea Forum Fact 1: Germany as a major export nation and as the main transit country for goods transport in Europe has always placed large emphasis on maintaining and extending its capacity of transport infrastructure, which still is the largest and most dense network within Europe.» For the future, the recent infrastructure planning programme envisages the maintenance and modernisation (e.g. the over 100 years old locks in the Kiel Canal, many just as old railway bridges as well as many motorway bridges built in the 60s and 70s) rather than constructing new transportation facilities.» Still, investments have to be made in new constructions and developments regarding to traffic bottlenecks as well as optimised access to hinterland regions of ports and airport hubs to assure the efficiency and the competitiveness of the German traffic infrastructure.» Furthermore, investments in infrastructure, whether aiming maintenance or extension, have to be in line with the subjects of climate protection and a minimal strain of flora and fauna in order to be stated as sustainable. GERMANY Fact 2: Oversize and heavy weight cargo requires special permissions to be transported by road in Germany. Since such cargo transports are an issue to safety on roads, the police authorities of the federal states are responsible to issue permissions. This may lead to costly and time consuming procedures for such transports, since a number of authorities have to be involved when driving through Germany. It is proposed to further improve already existing procedures (VEMAGS) and to make the route choice more transparent. Fact 3: Information on traffic is important to guarantee a smooth traffic flow and supply chains in time. Congestions, environmental pollution e.g. due to CO 2 emission as well as accidents can be reduced with a well developed information system. Therefore, it is recommended to link the available traffic information on one platform to increase the existing room for manoeuvre.
Involved project partners Freeport of Riga Authority Latvian Logistics Association Freeport of Ventspils Authority Fact 1: Since transport by rail is more environmental friendly than and an affordable alternative to road transport, it needs to be highlighted that Latvia has the highest share of rail cargo traffic in the modal split within the ACL countries showing a proportion of almost 70 %. To ensure this quota in future it is endorsed to» invest in modernisation as well as in expansion of the existing railway network to be able to manage the demand arising of an increase of transport flows in Europe,» build new logistics centres to avoid bottlenecks in capacity in agglomeration areas as well as to accelerate the clearance process and waiting times at the border, and» make the infrastructural network passable during winter, regular maintenances and a more efficient operation of winter maintenance vehicles are crucial. Latvia Fact 2: A lack of handling the capacity especially during traffic peaks and incomplete forms are two of the issues which are responsible for longer waiting times at the border checkpoints. Thus, crossing the Latvian border as transits from Belarus or Russia means waiting times of one or two days in three out of four cases. 25 % of the vehicles have to wait more than two days in a queue. To counteract the waiting times it is recommended to» selectively enlarge the number of border checkpoints in affected areas,» enhance the border crossing efficiency through additional training and qualification for border staff,» exert common border processing within ACL countries to improve communication and coordination processes, and» reduce required forms for border crossing and deploy electronic and / or bilingual forms to abolish language barriers. Fact 3: An issue of the Baltic Sea states and their ports, especially in the northern part of the ACL region, arises from pack ice during the winter months. Although close pack ice, if any, appears just sporadically in the port of Riga, a dense ice cover can be associated with significant efforts of capital commitment by building up stocks, of opportunity costs by the re-routing of goods via ice free ports, up to the lease of ice breaking vessels.» Therefore, it is necessary to develop systems, automatically detecting the formation of pack ice, potentially triggering service of ice breaking vessels, and in succession providing information on accessibility of ports to hauliers, in order to ensure an optimum planning of the transport chain.» Furthermore, it can be desirable to promote joint solutions for all affected ports, enabling a distribution of the high fix costs among a variety of shoulders. 5
6 Involved project partners Klaipeda State Seaport Authority NNPE Klaipeda Shipping Research Centre Fact 1: With a share of 60 %, road is cargo transport mode number one in Lithuania. Under this aspect and a prospectively growth of cargo volumes over the next years it is highly recommended to promote railway transport in Lithuania stating environmental and economical advantages compared to road transports. Thus, it can be necessary to do further investments for modernising the railway network towards a more efficient and faster mode of transport than transport by road. Fact 2: Although road infrastructure is the most commonly used mode of transport in Lithuania and harsh winters occur regularly, problems with winter maintenance can still appear. In consequence, transportation times by road as well as by rail may increase, and hence, may also raise transport costs and furthermore capital commitment costs. To avoid those problems the following advices can be adopted:» improvement of the management of tasks in connection with road clearance services and» use of devices to warn against snow drifts, which may increase risk of accidents and road closures. Lithuania Fact 3: In terms of the bureaucratic effort for imports of cargo, Lithuania occupies a place at the lower end in comparison of the ACL countries. This is evident especially in delays in the customs clearance as well as problems with necessary paperwork to enter to Lithuania. To avoid those kind of problems it can be helpful to» reduce the amount of required information and approvals for imports,» unify forms for transit within the ACL region for a more efficient processing of administrative activities, and» use electronic systems to optimise the turn-around-times for the import of goods and to hinder waiting times.
Involved project partners Elblag Sea Port Authority Institute of Logistics and Warehousing CASE Belarus Fact 1: More than 80 % of the Polish cargo traffic is transported by road. This is the second highest share in the ACL region. Since transport by rail is more environmental friendly and offering advantages in transport costs compared to transportation of goods by road, it is advised to» invest in a modernisation and subsequently in an expansion of the railway network and» shift cargo flows from road to rail in medium term in order to avoid congestion of the road network, currently in expansion, throughout increasing traffic volumes. Fact 2: Poland is placed 3rd in the Logistics Performance Index 2012 in the ACL region and even though processes in customs clearance are easy and uncomplicated, the temporal effort and costs for export and import activities are high. In order to improve this situation it is recommended to implement time and cost saving processes, e.g. basing on electronic applications. poland Fact 3: An increasing freight traffic within Poland, accelerated by a forecasted growth in cargo volumes handled in ports and an economic growth of Poland and bordering countries necessitates an adjustment of the transport facilities to prevent bottlenecks in the transport chain. To obtain the good results of Poland in the studies on LPI 2012 in the course of the outlined development it can be considered to» enlarge the existing and build new facilities of road and railway networks,» increase the number of border crossing checkpoints to third countries as well as of border and customs staff,» use electronic data exchange to enhance the administrative process, and» form agreements and eliminate border controls where existing to support trouble free transport activities. 7
8 Involved project partners none Fact 1: Irregular payments without receiving a receipt made by transport companies to low level public customs officials are a common method to influence the border crossing process. Those payments aims are, for instance, to avoid questioning for necessary documents, to speed up the administrative process or to avoid longer waiting times and delays. In three out of four border crossings at the Russian border payments are made at least sometimes. To avoid those problems in future it is recommended to» devise measures to facilitate the sincerity within the border crossing process,» control the implementation of the before given guidance, and» impose strict (international) regulatory sanctions and interventions. Russia Fact 2: Mainly due to the time required for preparation and revision of imports and exports and due to high costs in the transportation process, Russia ranks last in the Logistics Performance Index 2012 within the examined countries. The quality of infrastructure related to trade and ports as well as competence and quality of logistics services in a region are important criteria to improve scoring in the LPI. Therefore, it is advised to» build new logistics centres in Russia offering value added services,» employ more border staff to decrease waiting times within the border crossing process, and» develop further intermodal transportation to relieve the border crossing points and land roads and reduce the transit times for delivery of cargos to the Russian hinterland. Fact 3: With a share of less than 50 % internet penetration, Russia remains far behind the most ACL countries, which mostly have a share of about 70 % and more. Russia already started to improve this situation, especially in the western cities. Anyhow, it is recommended to» do further investments on the internet access,» reduce technological barriers and enlarge the broadband network, and» distend the internet capacity and speed for business clients.
Involved project partners none Fact 1: ACL studies show that almost half of the transport companies, having contact to customs staff at border checkpoints due to border crossing procedures in Ukraine, make at least frequently payments with an unclear legal basis without receiving a receipt to low level border staff. Those payments in terms of bribes aim at performance acceleration of a routine, commonly necessary but sometimes harassing action to avoid waiting times and delays or to obtain licences. Thus, it is recommended to» promote wage systems for public customs entities and their low level staff which do not offer an incentive to accept payments with an unclear legal basis,» implement measures to facilitate the sincerity in the border crossing process, and» impose strict (international) regulatory sanctions and interventions. Fact 2: In terms of the Logistics Performance Index 2012 Ukraine ranked 6th in the ACL region. Inter alia, this position results from a comparatively bad quality of trade and transport related infrastructure, a relatively poor competence and quality of logistics service as well as a rather rare compliance of delivery within the scheduled time. To avoid bottlenecks in the transport chain in future it is suggested to» modernise the rail and road network,» accomplish electronic data exchange to enhance the administrative process and to decrease the bureaucratic effort,» increase the number of border crossing checkpoints especially in terms of cargo traffic, and» establish ERMTS. Ukraine Fact 3: A strong domestic demand, a well-equipped transport and logistics network as well as low risks are just some indicators for foreign investors to start their business in a country. The attractiveness for foreign investments of a country can be measured by the FDI Regulatory Restrictiveness Index of the OECD in which the Ukraine obtains a result worse than average of the EU countries. To open the Ukrainian market for new investments particularly in the course of logistics services it is advised to» expand the infrastructural network (rail and road network, logistics centres, etc.),» improve the economical and commercial accessibility of the Ukrainian market in order to entice foreign investors, and» find opportunities to gain access to international markets. 9
www.ambercoastlogistics.eu Lead Partner: Port of Hamburg Marketing Marina Rimpo rimpo@hafen-hamburg.de Adina Cailliaux cailliaux@hafen-hamburg.de Pickhuben 6, 20457 Hamburg, Germany Phone: +49 40 377 09-0 www.portofhamburg.com Content Responsibility: CPL Competence in Ports and Logistics Wenzel, Heine & Kollegen Dierkower Damm 29 18146 Rostock, Germany Phone: +49 381-252952-0 Fax: +49 381-252952-29 Email: rostock@c-pl.de www.c-pl.de Images: lassedesignen-fotolia.com, fotofuerst-fotolia.com, Hafen Hamburg Marketing, School of Business and Management of Technology BSU (SBMT BSU), ACL Layout & Design: Dorena Timm Graphic Design www.dorenatimm.com