1 EURO-MEDITERRANEAN TRANSPORT FORUM MARITIME TRANSPORT WORKING GROUP Maritime Policy, Ports and Short-Sea Shipping MEDA Motorways of the Sea Sub-Group

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EURO-MEDITERRANEAN TRANSPORT FORUM

MARITIME TRANSPORT WORKING GROUP Maritime Policy, Ports and Short-Sea Shipping

MEDA Motorways of the Sea Sub-Group 4th Meeting

Brussels, 19 December 2006

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1. General presentation

2. Markets / Demand

3. Infrastructures & Equipments

4. Operations and services

5. Regulation & Procedures

6. I.T. Solutions

STATE OF PLAY

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1. GENERAL PRESENTATION (1/2)

I – PROJECT FRAMEWORK+II ONWARDS: PILOT PROJECTS

REVIEW OF EXISTING SITUATION:

- EUROMED TRANSPORT PROGRAMS - NATIONAL CONTACTS

- NATIONAL SOURCES / UPDATE

WORKING PLAN (Dec 06)

DATA BASES

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1. GENERAL PRESENTATION (2/2)

COUNTRY ROUND TABLES / WORKING GROUPS: - OVERVIEW PRESENTATIONS - QUESTIONS § ANSWERS - SYNTHETIC “SWOT”

FROM CONDITIONS TO CRITERIA

NATIONAL GROUPS

COUNTRY / MoS REVIEW

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2. MARKETS / DEMAND (1/7)

Reference data

Forecasts

Interim Conclusions

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EU –MEDA “MoS” traffic 2004: Overall Traffic (1000 tons, transshipment included/ inward & outward)

0

5000

10000

15000

20000

25000

Gen.C 1341 56 1387 716 35 324 1399 22 1483 685 716 5083

RoRo 179 26 94 233 26 95 16 6 1369 109 957 3545

Cont 3419 507 13506 5683 371 1270 585 1029 3773 1248 2595 15773

Algeria Cyprus Egypt Israel Jordan Lebanon Lybia Malta Morocco Syria Tunisia Turkey

Source : Eurostat

%G.Cargo

19%

Container71%

RoRo10%


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Geographical distribution of Ro-Ro Traffic flows MEDA – EU countriesVolume 2004, in 000 tons, both directions

Alge

ria

Mor

occo

Tunisia

Turkey

France

Spain

Italy

0

500

1 000

1 500

2 000

2 500

3 000

3 500


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Geographical distribution of CONTAINER Traffic flows MEDA – EU countries

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000 Volume 2004, in 000 tons, both direction


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Transhipment 2,75

Non- Transhipment

8,13

CURRENT SITUATION (2004): Containers in 000 TEU by Ports

Countries / Main Ports (000 TEUs) 2004

Morocco (Casablanca, Agadir, Tanger) 561

Algeria (Algiers, Oran) 556

Tunisia (Rades, Others) 310

Malta (Marsaxlokk, Valletta) 1 485

Turkey (Istanbul, Izmir, Mersin, Others) 3 033

Cyprus (Limassol, Larnaca) 305

Israel (Haifa, Ashdod) 1 588

Lebanon (Beirut) 390

Syria (Lattakia, Tartous) 417

Egypt (Damietta, Alexandria, Port Said) 2 252

Total ports throughput 10 895

Total : 10,9 millions TEU


Source: OSC

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PAST TRENDS : MEDA Total port demand throughput in 000 TEU'000 TEUs 2000 2001 2002 2003 2004 2000

/2004

MOROCCO (Casa, Agadir, Tanger)

367 400 456 518 561 153%

ALGERIA (Algiers, Oran) 274 317 433 453 556 203%

TUNISIA (Rades) 220 273 281 284 310 141%

TOTAL WEST MEDA

860 990 1 170 1 255

1 426 166%

MALTA (Marsaxlokk; Valletta)

1 055

1 179

1 260 1 320

1 485

141%

TURKEY (Istanbul, Izmir; Mersin, Others)

1 547

1 509

1 912 2 449

3 033

196%

CYPRUS (Limassol, Larnaca) 259 237 234 256 305 118%

ISRAEL (Haifa, Ashdod) 1 350

1 351

1 442 1 537

1 588

118%

LEBANON (Beirut) 266 299 299 306 390 147%

SIRYA (Lattakia & Tartous) 222 262 309 328 417 188%

EGYPT (Damietta, Alexandria and Port Said)

1 713

1 763

1 833 2 082

2 252

131%

TOTAL EAST - MEDA

6 412

6 599

7 288

8 277 9 469

West + East-MEDA 7272 7589 8457

9532 10895

150%

0

500

1000

1500

2000

2500

3000

3500

2000 2001 2002 2003 2004

Morocco Algeria Tunisia Malta Turkey Cyprus Israel Lebanon Syria


Source: OSC

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0

5

10

15

20

25

West Mediterranean

East Mediterranean

Base Case Total

Forecast Non-Transshipment Containers

Base Case: Non-Transshipment (mTEU )

0

5

10

15

20

25

Total West Mediterranean

Total East Mediterranean

Low Case Total

Low Case: Non-Transshipment (mTEU )

2. MARKETS / DEMAND / FORECASTS (7/7)

Source: OSC + MEDA-MoS

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2. MARKETS / DEMAND: INTERIM CONCLUSIONS (1/3)

MODAL SHIFT POTENTIALS

FROM ROAD TO SEA

Limited / in both terms of:

- Market trades - connections

• West : Morocco• East : Turkey and land transit• Coastal / Short sea ?

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CONCENTRATION OF TRADE FLOWS

Ro-Ro

Lo-Lo / containers

Low concentration potentials:

- Intra-Med only, with low feasibility: markets are not really fragmented (parallel lanes)

- The Turkish case

- Possibilities of combined/alternate services (flexibility), including passengers (Ro-Pax / ferries / Short sea distribution)

Real potentialities:

- Economies of scale: vessels capacities, port operations…

- Economies of scope: network

- Freight costs opportunities: large vessels, handling, empty movements of boxes…


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T/S supporting sea-leg of MoS ?A frequent question, particularly in East Med

- increased volume bases / flow concentration

- routes, frequencies, capacities…

• Direct trades are priorities= MoS not dedicated to T/S

CONTAINERS: DIRECT TRADES AND TRANSHIMENT

• T/S necessary for:- smaller market trades- particularly intra MEDA

T /S as best practices: - operations - procedures, I.T…. - economic conditions…

KEY QUESTION:OPPORTUNITIES FOR DIRECT TRADES ?

• Conditions:- reliability / transit time…- Commercial benefits- not only maritime transport

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3. INFRASTRUCTURES & EQUIPMENTS (1/11)

« MoS » Ports

Land / Intermodal

Logistics

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Jordan Aqaba

Israel Haifa

EgyptDamietta and East Port Said Alexandria / El Dekhela

TunisiaRadesEnfidha

Algeria Djen -Djen

MoroccoCasablanca Tanger MED

Syria Tartus

HLG AND MEDA COUNTRIES SELECTED / POSSIBLE MoS PORTS

Turkey Mersin (and Samsun)

Lebanon Beirut

Also in the scope of project: - Malta - Cyprus - Palestinian Authority

3. INFRASTRUCTURES & EQUIPMENTS – MoS Ports (2/11)

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Possible port operations

Port / Terminal requirements:• Containers Terminal• Ro – Ro Terminal

PILOT PROJECT PORTS


Container Terminal infrastructures

To be adapted to traffics / services:

•TranshipmentsHub & SpokesInterlining or relaying / feedering

• Gateway ports (direct trade)Import and Export traffic flowsNational and hinterland / transit flows

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CONTAINERS: State – of - art port in All Meda Countries in short / medium term

Container TerminalsContainer Terminals

Gateway ports: feeder vessels 200 - 500 units (TEU) draft 9 -11 m. Cranes outreach 12 to 16 rows, handling capacity 15 Moves / hour +Reachstackers and forklifts Terminal surface: 10.000 – 14.000 TEUs/Ha

Transhipment ports: Super Post Panamax vessels, up to 400 metres length, draft 15 m+Cranes outreach 22 rows, handling capacity 30 moves / hour + Terminal surface : 14.000 – 40.000 TEUs/Ha


MoS infrastructure • Dedicated terminal / One stop shop

• Operations of large vessels

VS intra – Med vessels

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Ro-Ro TerminalsRo-Ro Terminals

RO-RO: Ro-Ro / ferries ports in All Meda Countries in short / medium term

Port terminal able to accommodate Ro-Ro vessels up to 200 units, draft 7 meters +

Ro-Ro ramps and tractors with handling capacity of 30 moves/hour

Terminal surface: 100 – 120 units / Ha

+ Circulation lanes


MoS infrastructure Dedicated terminals

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Access to portAccess to port• Rail: Availability of ways and areas

Handling equipments railway / container yard

• Road: connections to Motorways / Highways •Problem: Urban congestion

Availability of lanes / parking areas

• Inland waterways

Inland terminals / and logistic platforms:Inland terminals / and logistic platforms:

• Free zones, dry ports, container yards…

• Consolidating facilities ( Freight stations)

Telcom systemsTelcom systems (see also IC technologies)• RF terminals ( progressing )

• Advance information / Custom clearance...

• Security and other inspections

3. INFRASTRUCTURES & EQUIPMENTS – Land / Intermodal links (6/11)

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ROADROAD

• Short Road links with Motorways / Highways

• International Standards roads

• Safe and secure Road parking areas

RAILRAIL

• Rail network connected to port container terminals / yards

• UIC gauge and capacities in line with flows and logistics

• Other international standards

• Adequate equipments for an efficient intermodal transfer

WATERWAYWATERWAY

• Develop of waterways opportunities (Egypt)

MoS AXES : “door to door” connections between ports and main industrial & distribution regions


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• Most Countries’ investment plans designed to upgrade road connections between ports and main industrial nodes with highways / motorways.

• Improvements and rehabilitation of road networks prioritized (short term) vs railway network (medium term).

• Some Countries initiating policies for the renewal of trucks fleets and road transport sector

• West Med: medium / long term investments for regional roads

• East Med: developments and projects for both road and rail networks between neighboring countries.

ROAD EFFICIENCY AND MoS


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• Rail network to be adapted to international standards

• Expansion and rehabilitation plans for freight railway networks in medium term

• Some Countries have already split rail management / infrastructure and services operator

• Almost all new ports / Terminals, especially MoS selected, are foreseeing to rely upon efficient rail connections

• Inland Waterways / Egypt • Arteries Already maintained at 3m.depth

RAILWAY POLICIES AND INTERNATIONAL OPPORTUNITIES


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• High logistic costs as an obstacle for market growth, - particularly exports

High hidden and security costs – particularly imports

• Limited logistic infrastructures and common users’ facilities (particularly for SMEs )

• Road transport sector lacking organisation, qualification and financial capacity

• Implementation of transport regulations not fulfilled

• Transport services companies needing Know how and training in logistics

3. INFRASTRUCTURES & EQUIPMENTS – Logistics (10/11)

Logistics supply

• Weakness on several markets countries

• Key element for an efficient and value added freight transport system

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Competitive logistics conditions, to be integrated into MoS projects:

• Logistic Costs: are or may be obstacles / critical factor for gaining customers (exports mainly)

• Transit and delivery time: part of added value added for several categories of products

• Frequency: not necessarily high, but adapted and reliable: continuity in fulfillment of schedules, reduction of the uncertainty, adaptation to incidents

• Capacities: demand coverage and potential peaks with reasonable margin.

3. INFRASTRUCTURES & EQUIPMENTS – Logistics (11/11)

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4. OPERATIONS AND SERVICES (1/2)

Vessels / Services capacities

Frequency / Reliability

- Adequate, including in medium / long terms

- Question mark for future Ro-Ro ships

- Problem with fixed day calls (containers)

- Port delays

- Operation schedules

- Costs and prices

- competitionEconomic / Marketing conditions:

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- Lo-Lo vs Ro-Ro- Shortest vs longer distances- Intra-Med vs Med / North Europe- Also with land port modes in Europe

4. OPERATIONS AND SERVICES (2/2)

Technical / logistic service type competition

Intermodal conditions - All port interface intervention

- Intermodal operations

Maritime Container lines are the decision makers:

- Vessels / fleet investment

- Port / schedule options

- Direct trade / transhipments mix

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5. REGULATIONS AND PROCEDURES (1/6)

Overview of regulations and procedures in the main transport modesCompliance analysis with the MoS conditions and criteria

Institutional framework

- Identification of the different bodies and authorities in charge of transport modes,

- Roles, relationships and competences of

Ministries, Directorates, Port authorities

MoS perspective- More trade and transport cross-relations

- Develop coordinated intermodal approach

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INSTITUTIONAL FRAMEWORK• Differences between countries concerning the competences in transport sector:

– One Ministry for all the transport issues – Two different Ministries responsible separately for infrastructures and transport regulations/procedures

• Standard organisation:

Ministry competent

Directorate competent

Port Authority or competent body


Transport modes: A,B, …

Agencies…

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CARGO / VESSELS


Port / Maritime Regulations

MoS Perspective

• Adaptation required for port operational procedures and port work regulations

• Procedures and regulations of other transport modes

• Regulatory framework of:

- Port regulations- Port workers regulations- International maritime agreements /

regulations

• Port administration and procedures

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RULES AND PRACTICES

• International level: most ports / maritime regulations and procedures are derived from multilateral conventions (IMO), with the adhesion of MEDA - countries

• Regulations are setting port rules e.g.:

- Procedures of loading and unloading ships:- Security and safety- Port Authorities’ activities

• By contrast operational procedures are designed and implemented locally, and may take into account business practices.


• These organisations should not hinder MoS projects in the analysed countries.

• Improvements of coordination between Ministries / Directorate / Ports must be lead in a MoS perspective

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MAIN FINDINGS


• The Customs administration approach is basically the same for all the analysed countries:

– Customs Administration or Directorate depending on the Ministry of Finance– Customs Transport related comparable regulations / Customs Codes

• Study of Customs Codes:

- Procedures are improving and considered as more market – minded - Impact of next progresses to be assessed

• Organisation and role of customs administration: Prepared to specific MoS operations status?

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MAIN FINDINGS : CUSTOMS

• Customs Code:

– Definition Customs territory– Importation procedures, declaration of the goods– Customs regimes and destinations– Free trade areas– Customs warehouses– Exportation procedures – Prevention of smuggling– Duties and tariffs

• Main differences between MEDA Countries: duties and tariffs scopes and levels

• Customs Administration should not hinder MoS project, thanks to several similarities between MEDA and EU countries.

• International cooperation to be explored further, both sides of the seas


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ICT INFRASTRUCTURES

SERVICE INFORMATION SYSTEMS

SECURITY SYSTEMS

COMBINED INFORMATION AND SECURITY SYSTEMS

MANAGEMENT SYSTEMS

6. I.T. SOLUTIONS (1/12)

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NAVIGATION SYSTEMS

• Vessel Traffic Services (VTS) / Vessel Traffic Management and Information Systems (VTMIS) are well developed.

• Countries with responsibilities of vessel traffic in Canal and Straits have a consistent network of VTS: Ships are automatically acquired and tracked by the system. For safety purposes, systems could also provide information services, Navigational Assistance and Traffic Organisation.

ICT INFRASTRUCTURES


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ICT INFRASTRUCTURES

AUTOMATIC IDENTIFICATION SYSTEMS (AIS) BASE STATIONS

• Precise information on ships and their movements in large areas, based on ship born automatic identification system (required by IMO for all ships > 300 gross tonnage)

• Base stations are available in some countries, with wide coverage

• Development projects to extend coverage to sub-regional coasts (Turkey ect… / and to the whole Mediterranean?)

GLOBAL POSITIONING SYSTEMS (GPS)

• Satellite coverage more than satisfactory in the area, including for civil applications.

• Most Countries already use satellite technologies and are prepared to use those systems for MoS implementations.

• Galileo Positioning system an opportunity as from 2010.


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• Service information systems widely used for specific purposes , example: Port/Port Community information systems

• MoS requirements:

- Enlarge scope and users of systems

- Concentrate enlarge and / or adapt information to trade and transport requirements

- Harmonize and standardize tools and procedures

- Develop common Interfaces for both local (national) and external (international) uses



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ONE STOP SHOP / PAPERLESS SYSTEMS

• Door to door freight transport, with maritime leg requiring too many documents and interventions, with repeated information

• Feasible improvements:

- Electronic paperless cargo and vessel documents process of administrative procedures

- Harmonise and concentrate tasks and responsibility

- Update procedures (lighter and slimmer)

• Progresses are being made, with best practices in MEDA Countries.



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• Security regulations and standards are still raising.

- Technologies for information systems and tools are key factors for efficiency, cost limitation and facilitation of those rules.

- Certain “security procedure” for the transport chain have been identified, example for imports:

- Borders: outward by working jointly between both Country counterparts

- partner with carriers, importers, shippers and terminal operators for container

shipment / deliveries during the supply process

- anticipate security inspections as early as possible in the supply chain

SECURITY SYSTEMS


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ELECTRONIC IDENTIFICATION AND CONTROL OF CARGO

• Securing ports requires efficient systems combining detection, control, assessment, localisation, and identification.

• Available technologies: X-Ray / gamma-ray (imaging technologies) Neutron Inspections (explosives and Chemicals) Personal Radiation Detectors (PRDs) by radiation isotope identifiers or CO2 probe sensors for people detection inside cargo units.

Several technologies are already used in MEDA Countries.

SECURITY SYSTEMS


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DRIVER / PERSONNEL ID TECHNOLOGIES AND PROCEDURES

Best practices:

- computerised process inside ports and authentication nearby passages (e.g. biometric). These new technologies are not usual practices yet.

- A Pilot application could be developed, where computerised / electronic gate processes are already working for the identification of trucks and drivers.

ELECTRONIC SEALS (ES)

• Container seals have long been used as a loss prevention tool but high-tech alternatives are being developed, with the increasing focus on security.

• Electronic Seals could be used for improving security of supply chain, either by land and by sea; following the upstream approach of security procedures.


SECURITY SYSTEMS

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• Main Challenge: involving all stakeholders (ports / terminals, shipping companies, truckers, railways etc.), and Customs / Public Authorities

• New specific procedures reinforcing fast line security Customs operations and border crossing through ports. This may be worked.

ELECTRONIC SEAL, CARGO ID AND TRACKING SYSTEMS

• Combination of systems may provide tracking and tracing and also instant notification of container incidents and security failures.

• Progresses of satellite technology for monitoring hazardous or temperature sensitive cargoes.


COMBINED INFORMATION AND SECURITY SYSTEMS

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TRANSPORT CHAIN MANAGEMENT SYSTEMS

MoS could provide for a unique management system or proper interfaces linking the different managements systems.

• Several tools are available to manage intermodal door to door freight transport chain which main function comprises: organise and initiate transport, monitor and control operations, visualise the transport status, exchange product and transport documentation. In the MoS perspective


MANAGEMENT SYSTEMS

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TERMINAL MANAGEMENT SYSTEMS

• Modern and efficient Port Terminal management systems in use in most MEDA Countries are those of the global container transport players (NAVIS, COSMOS, etc.), those are more or less equivalent in terms of performance and functionalities, and provide for:

- efficient cargo processing, improving the Terminal throughput.

- comprehensive and flexible reporting, including an extensive range of standard reports.

- integration with third party systems and advanced gate technologies

- Import Processing, Export Processing, Transhipment Processing, Gate Operations, Yard Management, Vessel Operations, Rail Operations and Statistical Reporting.


MANAGEMENT SYSTEMS

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INFORMATION AND COMMUNICATION TECHNOLOGIES

MOST MEDA COUNTRIES ARE POTENTIALLY READY FOR AN EXTENSIVE USE OF ICT TECHNOLOGIES TO PROVIDE FREQUENT, RELIABLE AND COMPETITIVE DOOR TO DOOR FREIGHT TRANSPORT OPERATIONS INCLUDING MARITIME SERVICES:

• COVERING ALL MAIN REQUIREMENTS DEVELOPMENT PLAN FOR IMPLEMENTING ICT SYSTEMS;

• EVEN THOUGH THERE ARE DIFFERENCES IN THE LEVEL OF PROGRESS AND IN THE FIELDS OF APPLICATION.

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THANK YOU FOR YOUR ATTENTION

Documents

1 EURO-MEDITERRANEAN TRANSPORT FORUM MARITIME TRANSPORT WORKING GROUP Maritime Policy, Ports and Short-Sea Shipping MEDA Motorways of the Sea Sub-Group